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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, in the initial year of your joint eligibility, DFAS will automatically apply the entitlement that is most beneficial to you based on your gross amount of each entitlement. This will remain in effect until the next CRDP/CRSC Open Season. You will receive an initial CRDP/CRSC Election form shortly following your joint eligibility. Complete and return the form within 45 days if you wish to change to the entitlement that we did not select for you. In subsequent years, you will need to make this determination yourself during Open Season. 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.




Qualified Injury

combat-linked disabilities

service-connected disabilities


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



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


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, your CRSC payment will be deposited into the account most recently designated as your current checking address.

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



Subject to Collection / Garnishment



SBP (Survivor Benefit Plan) Premiums Deducted



**Beginning with the Survivor Benefit Plan (SBP) recurring monthly premiums due in April of 2018, DFAS is deducting SBP monthly premiums from Combat-Related Special Compensation (CRSC) when retired pay is not sufficient to cover the full amount of the recurring monthly premiums.

Find out more about the VA Waiver, CRDP and CRSC on the webpage: Understanding the VA Waiver and Retired Pay/CRDP/CRSC Adjustments

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).

Note: The information on this website is provided to explain typical situations regarding retiree and annuitant benefits. For details and exceptions, please see applicable laws, financial management regulations, and instructions.

Page updated Aug. 6, 2019