CRSC vs. CRDP — Which Should You Choose?

Why retired pay is offset in the first place

Under 10 U.S.C. § 1414, a military retiree's DoD retired pay is normally reduced by the amount of VA disability compensation they receive — this is the 'VA offset.' CRSC and CRDP are two separate statutory programs that restore some or all of that offset for qualifying retirees.

CRDP — Concurrent Retirement and Disability Pay

• Available to retirees with at least 20 years of qualifying service (regular retirees and qualifying Reserve retirees).
• Combined VA disability rating of 50% or higher.
• Restores the full VA offset, allowing the retiree to receive both full retired pay and full VA compensation.
• Automatic — DFAS enrolls eligible retirees; no application is required.

CRSC — Combat-Related Special Compensation

• Available to military retirees whose disabilities are determined to be combat-related (combat operations, instrumentalities of war, hazardous duty, or simulated combat training).
• No 20-year service minimum for Chapter 61 (medical) retirees.
• Pays a tax-free amount equal to the offset attributable to the combat-related disabilities.
• Application required — submit DD Form 2860 to your branch's CRSC board (Army Human Resources Command, Navy Personnel Command, Air Force Personnel Center, or Coast Guard PSC).

Choosing between them

Retirees who qualify for both must elect one each year during the open-season letter sent by DFAS. CRSC is generally chosen when the combat-related portion of the rating drives a larger payment than CRDP would; CRDP is generally chosen when the combat-related portion is small but the overall rating is high.

DFAS provides comparative pay calculations to help retirees decide. The election can be changed annually.

Frequently Asked Questions