Combat-Related Special Compensation (CRSC)

Table of Contents

1. What is Combat-Related Special Compensation? 
2. CRSC Eligibility 
1. Is PTSD covered under CRSC? 
3. How much is 100% CRSC pay?
4. VA Waiver for CRSC
5. CRSC Back Pay 
6. Which is better, CRSC or CRDP? 
7. How to Apply for CRSC Benefits
1. Documents You Need
2. Where to Submit Your Application 
3. Application Wait Times
8. CRSC Reconsiderations
9. Recieve Additional Help with CRSC

Combat-Related Special Compensation (CRSC) is a difficult program to understand. It’s the kind of topic that might make you search “CRSC for dummies” in the hope of finding a straightforward explanation that covers all bases. 

Hopefully, this article puts an end to your search. No matter your branch of service, this article will help you understand CRSC eligibility, how to apply, how CRSC pay works, and what steps to take if you need to appeal.

What is Combat-Related Special Compensation? 

In simple terms, a federal law exists that restricts some military retirees from receiving VA disability compensation and military retirement pay simultaneously. Combat-Related Special Compensation (CRSC) helps to resolve the issues of this law for veterans. 

To fully understand the history of the law that created these restrictions, you can read our full guide explaining how VA disability affects military retirement pay. However, the key takeaway from that piece is that CRSC and Concurrent Retirement and Disability Pay (CRDP) are two programs that allow exceptions to this law. 

CRSC Eligibility 

The most important distinction between CRSC and CRDP is that the eligibility differs depending on how you got your injury as well as its severity. 

CRSC is specifically for servicemembers who received their injury in combat-related situations and have a VA disability rating of 10% or higher while CRDP is for servicemembers who received their injury in any service-connected scenario. 

In order to be considered a combat-related injury, your disability must be categorized as one of the following:

• Armed Conflict/Combat: Direct or indirect wounds that occurred during armed conflict
• Hazardous Duty: Activities such as demolition duty, diving, parachuting, aerial flight, and more
• Instrumentality of War: Wounds resulting from instrumentalities of war (devices such as a weapon or weapon system specifically designed for military duty or warfare), such as certain military combat vehicles, vessels, aircraft, or an injury or sickness caused by exposure to fumes, gasses, or chemicals (Agent Orange for example)
• Simulated War Activities: Activities such as military training, exercises, airborne ops, live fire exercises, hand-to-hand combat training, and more;  does not include standard physical training such as running, jogging, or group sports activities
  

In addition to sustaining a qualifying combat-related injury, to qualify for CRSC, you must be entitled to or receiving military retired pay as an: 

• Active Component or Reserve Component member with 20 Good Years (creditable service)
• Chapter 61 Medical Retiree
• Early Military Retiree under the Temporary Early Retirement Act (TERA)
• Retiree on the Temporary Disabled Retired List (TDRL)
• Retiree on the Permanent Disability Retired List (PDRL)
  

Is PTSD covered under CRSC? 

Post Traumatic Stress Disorder (PTSD) that is directly related to contact with the enemy is considered an injury sustained in armed combat and is covered under CRSC. If you are unsure if your injury qualifies, contact the VA at (800) 827-1000. 

How much is 100% CRSC pay?

100% CRSC pay is equal to the full amount of your VA disability compensation paycheck and the full amount of your military retirement pay. Military retirees who qualify for CRSC or CRDP receive the full amount of both benefits. 

CRSC pay works like this: Those who apply and are found eligible receive a monthly paycheck from DFAS that replaces the amount of their military retirement pay that is being reduced by the VA waiver. 

VA Waiver for CRSC

Military retirees who don’t qualify for CRSC or CRDP have their military retirement pay reduced by what is referred to as the “VA disability offset.” This replaces a portion of a retiree’s monthly payment with VA disability compensation. Retirees sign the VA Waiver, which is an agreement to offset some of their retirement pay for disability compensation. 

The benefit of signing the VA waiver is that VA disability compensation is not taxable, whereas military retirement pay is taxable by some states and by federal law. The VA disability offset helps boost the buying power of military retirees who don’t qualify for CRDP or CRSC because it gives them a portion of income that is not subject to taxes instead of forcing them to receive one or the other. 

Unlike CRDP, CRSC is not automatically applied, so military retirees who are eligible for CRSC but haven’t enrolled yet are typically offsetting their pay through the VA waiver described above or automatically enrolled in CRDP. 

CRSC Back Pay 

When your CRSC application is approved, the VA will compensate you retroactively to the date they became eligible, which can go back several years. 

Back pay covers the difference between what the veteran was receiving in VA disability compensation and what they are now entitled to under CRSC. 

The amount of back pay you receive differs depending on how long you have been eligible and your disability rating. 

If you retired with full longevity (20 or more years of service), you can only receive back pay as early as June 1, 2003, the effective date Congress authorized the benefit. 

If you are medically retired under Chapter 61 with less than 20 years of service, you can receive back pay up to January 2008, the effective date Congress authorized military medical retirees to receive CRSC.

Which is better, CRSC or CRDP? 

If you have a combat-related injury and a VA disability rating of 50% or higher, you are likely eligible for both CRSC and CRDP. While you can qualify for both, you can only enroll in one program at a time, which is why it’s important to understand how they work to evaluate which program is better for your situation. 

The biggest benefit of CRDP is you are enrolled automatically upon becoming eligible, meaning you don’t need to apply. You also don’t have to worry about proving your eligibility, which is required for CRSC. 

However, a significant benefit of CRSC is that it is not subject to federal income tax or divorce pay, while CRDP is subject to both. 

Upon qualifying for both CRDP and CRSC, the Defense Finance and Accounting Service (DFAS) will automatically enroll you in the program that provides the biggest benefit. However, you can choose to opt for the program you want right after you become eligible or during annual enrollment.

How to Apply for CRSC Benefits

You can apply for CRSC with your respective branch of service. They will assess your claim and determine your eligibility. To apply, you must fill out DD form 2860 with the required documents mentioned below and send it to your respective military branch.

Documents You Need

To be approved for CRSC, you must be able to show a causal link between your VA disability rating and a combat-related event. 

In order to do this, there are some documents that are considered essential, recommended, and suggested for your CRSC application:  

Documents Needed for CRSC Application
Required Documents	– DD214 or DD215 – VA Physician Reports – VA Medical RecordsVA Letter (notifying you of your benefit) – VA Rating Decisions – VA Code Sheets
Recommended Documents	– Relevant Medical Records – Award Certificates or Recommendations – Military Orders – Military Medical Treatment Facility Records
Additional Supporting Documents	– Military Physical Records – Physical Evaluation Board Proceedings – Military Record Briefs – Military Personnel Files – Line of Duty Determinations – Safety Mishap (accident) Reports

The more information you have for your application, the more likely it is for you to get approved. If you need to replace any of these documents to prepare your application, see our article here. 

You should not include documents in your application that do not state a cause of injury or do not relate to a combat-related disability. 

Where to Submit Your Application 

After you’ve completed your DD Form 2860 and collected copies of your documents of proof, you want to submit your information to your respective military branch. 

Air Force and Space Force CRSC Application Address
United States Air Force
Disability Division (CRSC)
HQ AFPC/DPPDC
550 C Street West
Randolph AFB, TX 78150-4708

For help or CRSC-related questions, Air Force members can contact 1(800) 525-0102. 

Army members can also submit their application by email to [email protected] or by eFAX to (502) 613-9550.

For help or CRSC-related questions, Army members can contact 1(888) 276-9472 or the email below.

For help or CRSC-related questions, Coast Guard members can contact [email protected].

To speak to the Navy CRSC representative via email, send your name and the last four digits of your SSN along with whatever questions you have to their official email: [email protected]

Application Wait Times

Your CRSC application should be processed within 120 business days. You can verify that your application has been received by contacting your branch’s human resource center listed above. 

CRSC Reconsiderations

A CRSC reconsideration (aka CRSC appeal) is a chance to re-apply for CRSC if you are denied. You should also fill out a reconsideration form if your disability rating has changed. 

If you have new evidence that could support your claim, you can apply for a CRSC reconsideration through your military branch. Keep in mind that the VA handles disability ratings and evaluations, so if you feel you were inadequately evaluated, you will need to file an appeal with the VA. 

To apply for a CRSC benefits reconsideration, you should follow these steps: 

1. Fill out your branch’s Reconsideration Request Form and detail the new supporting information that you have.
   
   – Air Force and Space Force: Reconsideration Request Form provided in your decision letter
   – Army: CRSC Form 12e (Reconsideration Request Form)
   – Coast Guard: Simply send a request for reconsideration, specific form not required
   – Navy and Marine Corps: Reconsideration Request Form from the Secretary of the Navy’s website
   
2. Write a detailed letter explaining why you believe you qualify for CRSC.
3. Include your original CRSC rejection letter.
4. Provide documentation of your new VA rating (if applicable).
5. Provide any new documents of proof.

Mail your documents to your branch’s resource center to the same addresses listed in the Where to Submit Your application section above. Alternatively, Air Force members can upload their documents using their myPERS accounts.

Recieve Additional Help with CRSC

CRSC can be a complicated benefit because each case is unique. For additional help, consider using a Veterans Service Officer. VSOs are often well-versed in applying for military and veterans benefits and usually offer free assistance to veterans.

While CRSC can be frustrating to understand, it’s also an incredibly valuable benefit. Not only are you able to access both your pension and VA disability, you have access to income that is exempt from Federal taxes, which in this country is pretty rare. So, while CRSC may be a headache to navigate, getting access to the benefit is far worth the effort.

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