Combat-Related Special
Compensation (CRSC) and
Concurrent Retirement Disability
Payment (CRDP)
NACVSO Conference
June 12, 2014
Topics
• What is CRSC and CRDP?
• Who is eligible to receive CRSC and CRDP?
• How Does CRSC and CRDP effect a veteran’s
VA Compensation Benefits?
• Where can you find more information about
CRSC and CRDP?
What is CRSC?
“Combat Related Special Compensation (CRSC) was
authorized by the National Defense Authorization
Act of 2003, Public Law (PL) 107-314, and became
effective June 1, 2003. Eligibility was expanded
effective January 1, 2004. CRSC is intended to
reimburse combat-disabled veterans for a portion of
their retirement pay that must be waived to receive
VA benefits. “
VA Manual Rewrite Part III, Subpart V. 5.A.7.a
Application or Election of CRSC
• A veteran must contact his or her branch of
service to apply for CRSC. The application
should be submitted on a DD Form 2860,
Application for Combat-Related Special
Compensation (CRSC).
• The application is available at
http://www.uscg.mil/adm1/docs/....
CRSC Eligibility
A retired veteran must have:
• 20-years of service based upon longevity
• Guard or Reserve retirees must receive a 20year letter and be age 60
• Retirees under Temporary Early Retirement
Authority (TERA) and disability retirees with
less than 20-years of service are not eligible to
receive CRSC
CRSC Eligibility
• CRSC is not retired pay
• CRSC is not taxable
• CRSC is subject to collection actions for
alimony, child support, community property,
garnishment, and government debt
• Retirees must apply to the CRSC Board from
the branch of service from which retired
• CRSC is not subject to Uniform Services
Former Spouse Protection Act (USFSPA)
What is CRDP?
“Special Compensation for Severely Disabled
Retirees (SCSD) was a benefit, established by the
Defense Authorization Act of 2000, effective
October 1, 1999. Eligibility criteria were liberalized
effective October 1, 2001, and February 1, 2002.
This benefit was repealed effective January 1, 2004,
and replaced with Concurrent Retirement and
Disability Payments (CRDP).”
VA Manual Rewrite Part III, Subpart V. 5.A.6.a
Application or Election of CRDP
• An application for CRDP is not necessary.
– The Defense Finance and Accounting Service
(DFAS) will automatically determine the amount of
CRDP and initiate payment.
– Veterans should contact their military
department or DFAS if they did not receive
notification, but believe they are eligible.
CRDP Eligibility
A retired veteran must have:
• Disability retirees must have 20-years of
service based upon longevity
• Retirees under Temporary Early Retirement
Authority (TERA) with less than 20-years are
eligible to receive CRDP
• Retirees must have VA established service
connected disabilities of 50% or higher
Who is a Retiree?
• Retirees under Temporary Early Retirement
Authority (TERA) with less than 20-years are
eligible to receive CRDP
• Retirees under Temporary Early Retirement
Authority (TERA) and disability retirees with
less than 20-years of service are not eligible to
receive CRSC
• Retirees who retired due to disability must
have 20-years of service
Who is a Retiree?
• Fleet Reserve and Fleet Marine Reserve: Members
who transfer to the retainer list (prior to October 1,
1977) could have done so with 19-years, 6 months of
active service. For purposes of CRSC and CRDP those
retirees are eligible. Those who transfer after that date
must have at least 20-years of active service
• Military/Civil Service Retiree: Retirees who waived
their retired pay to enable them to combine their
service (military and civilian) to retire from the Civil
Service are not eligible for neither CRSC nor CRDP
Who is a Retiree?
• Reservist and National Guard members need
to have 20 years of qualifying service (active
and inactive) to retire at age 60. Qualifying
reserve component retirees must waive
retired pay until they reach age 60. Once they
meet the age requirement and longevity
requirement CRSC and CRDP rules apply. The
requirements outlined also apply to reservist
who retired based upon disability, Chapter 61.
Chapter 61 Disability Retirees
• The retired pay of a member retired under
Chapter 61 with 20-years or more of
creditable service, at the time of retirement, is
subject to reduction. The amount of
reduction will only encompass the amount
that exceeds the member’s retired pay in
which he or she would have been entitled to
under any other provision of the law based
upon longevity.
Dual Entitlement
• When a veteran is entitled to both CRSC and
CRDP the “greater benefit” is warranted
• Coast Guard retirees are allowed to switch
programs from month to month based upon
the most advantageous.
Virtual VA
• A “CRSC/CRDP Folder” has been added
• 2 types of documents in the folder
– “CRSC/CRDP One-Time Payment Notification from
DFAS” provides the date VA was notified and the
date of the payment
– “CRSC/CRDP Election Archive” shows the program
the program the vet is being paid under and the
effective date
References
• http://www.dfas.mil/retiredmilitary/disability/
payment.html
• VA Manual Rewrite Part III, subpart V. 5.A.6.a
• VA Manual Rewrite Part III, subpart V. 5.A.7.a
• CRSC and CRDP Fact Sheet
• QUESTIONS?