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Combat-Related Special Compensation (CRSC) and Concurrent Retirement Disability Pay (CRDP)

Combat-Related Special Compensation (CRSC) and Concurrent Retirement Disability Pay (CRDP) are programs created by Congress to allow eligible military retirees to receive monthly entitlements in addition to retired pay.

CRSC is a special compensation for combat-related disabilities. It is non-taxable, and retirees must apply to their Branch of Service to receive it.

CRDP is a restoration of retired pay for retirees with service-connected disabilities. It is taxed in the same manner as your retired pay, and it is normally considered taxable income. No application is required. Eligible retirees receive CRDP automatically.

The purpose of these entitlements is to recover some or all of the retired pay that military retirees waive for VA disability compensation.

Monthly Payments

Like your retired pay, DFAS pays CRDP and CRSC monthly on the first business day of each month.  You will receive your CRDP or CRSC payment in the same manner as your retired pay:

  • If your retired pay is being direct deposited into your bank account, we will do the same for your CRDP or CRSC payment.
  • If your retired pay is sent to you as a paper check, we will do the same for your CRDP or CRSC payment.

To verify your bank account information or check your mailing address prior to receiving your first payment, log in to your myPay account or call 800-321-1080.

Retroactive Payments

DFAS and the Department of Veterans Affairs (VA) manage the CRDP/CRSC Processing program (formerly known as VA Retro) to pay eligible military retirees any retroactive CRSC, CRDP and/or VA disability compensation they are owed.

A retroactive payment will include any money you may have been entitled to before you received your first monthly payment.

A retiree may be due funds from DFAS, the VA or from both agencies. DFAS and the VA remain in communication with each other to successfully establish and process CRDP and CRSC accounts.

DFAS will audit your account to determine whether or not you are due retroactive payment. An audit of your account requires researching pay information from both DFAS and VA. 

If DFAS finds that you are also due a retroactive payment from the VA, we will forward an audit to the VA. They are responsible for paying any money they may owe you.

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

For more information from DFAS, call toll free at 800-321-1080. Customer service representatives are available Monday through Friday from 8 a.m. to 5:00 p.m. (ET).

Questions concerning disability ratings or payments due from the VA should be directed to the VA at 800-827-1000.

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 Update Jun 26 2024