1. DFAS Home
  2. Retired Military & Annuitants
  3. Disability Entitlements
  4. Comparing CRSC and CRDP

    Comparing CRSC and CRDP

    Retirees cannot receive both Combat Related Special Compensation (CRSC) and Concurrent Retirement and Disability Pay (CRDP). If you qualify for both, DFAS will automatically apply the entitlement that is most advantageous to you. Every year, during Open Season, you'll have the opportunity to change your election. Open season usually takes place in January.

    The chart below highlights the differences between the two programs to help you decide which one is better for you.

     

    CRSC

    CRDP

    Qualified Injury

    combat-linked disabilities

    service-connected disabilities

    Classification

    Special Compensation (not subject to rules and regulations governing military retired pay)

    Military retired pay (subject to rules and regulations governing military retired pay)

    Full Concurrent Receipt?

    Yes - Retirees can receive either part or all of both their military retirement pay and VA disability compensation

    No - Restoration of pay is phased in over 10 years (from 2004 to 2014)

    Claim Process

    Must apply through Branch of Service

    Automatic

    Eligibility

    Eligible claimants:

    • Are entitled to and/or receiving military retired pay
    • Are rated at least 10%  by the Department of Veteran’s Affairs (VA)
    • Are least 60 years old or retired under Temporary Early Retirement Authority (TERA) if they are a reservist
    • Have waived their VA pay from their retired pay

    Eligible claimants:

    • Are retired with 20 years Active or Reserve Duty
    • Are receiving retired pay (that is offset by VA payments)
    • Have a 50% + VA disability rating
    • Reservists and national guardsmen must be eligible to retire based on service, normally 60 years old

    Retroactive Entitlement

    May go back to June 1, 2003, for any month in which all eligibility requirements are satisfied but may be limited to retirement date. 

    Disability retirees with less than 20 years will be automatically limited to a retroactive date of January 1, 2008 as required by legislation passed by Congress effective 2008. 

    May go back to January 1, 2004, for any month in which all eligibility requirements are satisfied, but may be limited to retirement date.

    CRDP is not payable before January 1, 2004.

    Federal Taxation

    Non-taxable

    Taxable, according to your current retired pay Federal Income Tax Withholding (FITW) tax rate

    Issue of Payment

    CRSC payments are deposited to the same account where you receive your retired pay. If your VA disability compensation offset exceeds your retired pay, it will be deposited to the account where you receive VA payment

    CRDP is not a new payment, but rather an increase in your retired pay. CRDP decreases your VA waiver so that you receive more of your gross retired pay. Your new pay amount will continue to be deposited into the same account and will not affect your compensation from the VA.

    Subject to Division with a Former Spouse

    No

    Yes

    Subject to Collection / Garnishment

    Yes

    Yes

    SBP (Survivor Benefit Plan) Premiums Deducted

    No

    Yes

    If you need help, contact DFAS at 800-321-1080. Customer service representatives are available Monday through Friday from 8 a.m. to 4:30 p.m. (ET).

    Updated October 9, 2013