Comparing CRSC and CRDP
Retirees cannot receive both Combat Related Special Compensation (CRSC) and Concurrent Retirement and Disability Pay (CRDP). If you quality for both, DFAS will automatically apply the entitlement that is most advantageous to you. Every year, during Open Season, you'll have the opportunity to change your election. Open season usually takes place in January.The chart below highlights the differences between the two programs to help you decide which one is better for you.
| 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:
| Eligible claimants:
|
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. | May go back to January 1, 2004, for any month in which all eligibility requirements are satisfied, but may be limited to retirement date. |
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 |
If you need help, contact DFAS at 800-321-1080. Customer service representatives are available Monday through Friday from 8 a.m. to 4:30 p.m. (ET).