CRDP and CRSC Explained

If you are a military retiree receiving VA disability compensation, your retired pay is normally reduced by the amount of that compensation — the VA waiver. CRDP and CRSC both exist to give some or all of that back.

CRDP — Concurrent Retirement and Disability Pay. Restores the retired pay lost to the VA waiver. You need a VA rating of 50% or more, and the disabilities do not have to be combat-related. You do not apply — enrollment is automatic. It is taxable, like retired pay.

CRSC — Combat-Related Special Compensation. A tax-free payment for retirees whose disabilities are combat-related. The rating floor is 10%, much lower than CRDP's. You must apply, on DD Form 2860, through your uniformed service.

You cannot receive both at once. Where you qualify for each, DFAS pays whichever is more favorable and you can elect between them during an annual open season.

The rough rule: CRSC is usually better if your disabilities are combat-related, because it is tax-free. CRDP is the automatic fallback at 50% and above.

Who is eligible?

CRDP: a VA rating of 50% or more, and eligibility for retired pay. Note the exclusion — disability retirees with fewer than 20 years of service are not eligible for concurrent payment under CRDP.

CRSC: retired with military retired pay, a VA rating of at least 10%, and a current reduction in retired pay equal to your VA compensation. Your retirement must qualify through 20+ years of service, medical retirement at 30% or more, TERA, TDRL or PDRL.

For CRSC the injury must be combat-related: incurred in armed conflict, in hazardous duty, in war-simulation training, through exposure to an instrument of war, or in an activity that earned a Purple Heart.

There is a 6-year statute of limitations on CRSC back payments, so a late application costs you arrears even when entitlement is not in doubt.

How do I apply?

  • Do nothing for CRDP: Enrollment is automatic if you qualify. If you are at 50% or more with 20+ years and see no restoration, query it with DFAS.
  • Apply for CRSC on DD Form 2860: Through your uniformed service, not the VA and not DFAS.
  • Evidence the combat connection: Medical records, service documents and decorations. This is what CRSC turns on, and it is where applications fail.
  • Apply within 6 years for full back pay: The statute of limitations caps arrears, not entitlement.
  • Compare the two if you qualify for both: CRSC is tax-free, which often makes it worth more even at a similar gross figure. DFAS pays the more favorable one, and there is an annual election window.
  • Check the under-20-years exclusion: A disability retiree with fewer than 20 years is outside CRDP, which makes CRSC the route worth pursuing.

Common questions

What is the difference between CRDP and CRSC?

CRDP restores retired pay lost to the VA waiver, needs a 50% rating, does not require combat-related disabilities, is automatic and is taxable. CRSC is tax-free, needs only a 10% rating but the disabilities must be combat-related, and you have to apply.

Can you get both CRDP and CRSC?

No. Where you qualify for both, DFAS pays the more favorable one and you can elect between them in an annual open season.

Which is better?

Usually CRSC where your disabilities are combat-related, because it is tax-free. CRDP is the automatic fallback at 50% and above.

Do you have to apply for CRDP?

No, enrollment is automatic. CRSC requires DD Form 2860 through your uniformed service.

Is there a deadline for CRSC?

There is a 6-year statute of limitations on back payments, so applying late costs arrears rather than entitlement.

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