CRSC

CRDP

Qualified Injury

combat-linked disabilities

service-connected disabilities

Classification

Special Compensation (not subject to rules and regulations governing military retired pay)

Military retired pay (subject to rules and regulations governing military retired pay)

Full Concurrent Receipt?

Yes - Retirees can receive either part or all of both their military retirement pay and VA disability compensation

No - Restoration of pay is phased in over 10 years (from 2004 to 2014)

Claim Process

Must apply through Branch of Service

Automatic

Eligibility

Eligible claimants:

• Are entitled to and/or receiving military retired pay
• Are rated at least 10%  by the Department of Veteran’s Affairs (VA)
• Are least 60 years old or retired under Temporary Early Retirement Authority (TERA) if they are a reservist
• Have waived their VA pay from their retired pay

Eligible claimants:

• Are retired with 20 years Active or Reserve Duty
• Are receiving retired pay (that is offset by VA payments)
• Have a 50% + VA disability rating
• Reservists and national guardsmen must be at least 60 years old

Retroactive Entitlement

May go back to June 1, 2003, for any month in which all eligibility requirements are satisfied but may be limited to retirement date. 

Disability retirees with less than 20 years will be automatically limited to a retroactive date of January 1, 2008 as required by legislation passed by Congress effective 2008. 

May go back to January 1, 2004, for any month in which all eligibility requirements are satisfied, but may be limited to retirement date.

CRDP is not payable before January 1, 2004.

Federal Taxation

Non-taxable

Taxable, according to your current retired pay Federal Income Tax Withholding (FITW) tax rate

Issue of Payment

CRSC payments are deposited to the same account where you receive your retired pay. If your VA disability compensation offset exceeds your retired pay, it will be deposited to the account where you receive VA payment

CRDP is not a new payment, but rather an increase in your retired pay. CRDP decreases your VA waiver so that you receive more of your gross retired pay. Your new pay amount will continue to be deposited into the same account and will not affect your compensation from the VA.

Subject to Division with a Former Spouse

No

Yes

Subject to Collection / Garnishment

Yes

Yes

SBP (Survivor Benefit Plan) Premiums Deducted

No

Yes