Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC)

As a veteran who has served our country, you deserve to receive the full benefits you’ve earned. Two important programs that many veterans may be eligible for are Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC). These programs, created by Congress, ensure that military retirees with service-connected disabilities receive the compensation they deserve. In this guide, we’ll break down the key aspects of CRDP and CRSC, helping you understand which program might be right for you.

What is CRDP?

Concurrent Retirement and Disability Pay (CRDP) is a program designed to restore retired pay for military retirees with service-connected disabilities. Before CRDP was implemented, many veterans saw a dollar-for-dollar reduction in their retired pay for every dollar received in VA disability compensation. CRDP eliminates this offset, allowing eligible veterans to receive both their full military retired pay and their VA disability compensation.

Key Features of CRDP:

1. Automatic Enrollment: If you’re eligible for CRDP, you’ll be automatically enrolled. There’s no need to submit an application.
2. Eligibility Requirements:
   • You must be entitled to receive military retired pay
   • Your VA disability rating must be 50% or higher
   • You must have at least 20 years of qualifying service
3. Taxable Income: CRDP is considered a restoration of retired pay, so it is taxable income.
4. Full Implementation: CRDP has been fully phased in as of 2014, meaning eligible veterans now receive their full retired pay restoration.

Who Benefits from CRDP?

CRDP can be particularly beneficial for:

• Regular retirees with 20+ years of service and a VA rating of 50% or higher
• Reserve retirees who have reached retirement age (typically 60) with 20+ qualifying years of service and a 50%+ VA rating
• Temporary Early Retirement Authority (TERA) retirees with a 50%+ VA rating
• Disability retirees with 20+ years of service who would have been eligible for retirement regardless of disability

How Does CRDP Work?

CRDP works by gradually restoring the full amount of retired pay that was previously reduced due to receipt of VA disability compensation. This restoration occurs automatically for eligible veterans, with no need for application. The amount of CRDP you receive is based on your years of service and your VA disability rating.

Is CRDP Going Away?

As of now, there are no plans to eliminate CRDP. However, as with all government programs, it’s subject to potential changes in legislation. It’s always a good idea to stay informed about any updates or modifications to the program.

Is CRDP Divisible in Divorce?

Yes, CRDP is generally considered divisible property in a divorce because it’s a restoration of retired pay. However, the specific division would depend on state laws and the terms of the divorce settlement. It’s advisable to consult with a lawyer specializing in military divorces for personalized advice.

What is Combat-Related Special Compensation (CRSC)?

Combat-Related Special Compensation (CRSC) is a program that provides tax-free monthly compensation to eligible retired veterans with combat-related disabilities. Unlike CRDP, CRSC requires an application and is specifically for disabilities that can be attributed to combat situations.

Key Features of CRSC:

1. Application Required: Veterans must apply through their branch of service to receive CRSC.
2. Eligibility Requirements:
   • You must be entitled to receive military retired pay
   • Your VA disability rating must be at least 10% for a combat-related condition
   • You must have 20 years of creditable service or be medically retired under Chapter 61
3. Tax-Free Benefit: CRSC payments are non-taxable, as they’re considered disability compensation.
4. Combat-Related Disabilities: Qualifying disabilities must be a direct result of:
   • Armed conflict
   • Hazardous duty
   • An instrumentality of war
   • Simulated war (e.g., military training exercises)

What Disabilities Qualify for CRSC?

Disabilities that qualify for CRSC must be combat-related. This includes injuries or illnesses that resulted directly from:

• Armed conflict (e.g., wounds received in combat)
• Hazardous duty (e.g., parachute jumping, scuba diving)
• An instrumentality of war (e.g., injuries from military vehicles or weapons)
• Simulated war (e.g., injuries during training exercises)

It’s important to note that not all service-connected disabilities qualify for CRSC. The disability must have a direct causal relationship to combat or combat-related activities.

What Medals Qualify for Combat Veteran Status?

While medals alone don’t determine eligibility for CRSC, certain awards can help support a claim for combat-related disabilities. These include:

• Purple Heart
• Combat Action Ribbon
• Combat Infantryman Badge
• Combat Medical Badge
• Combat Action Badge

Having one of these medals doesn’t automatically qualify you for CRSC. You must still demonstrate that your disability is directly related to combat or combat-related activities.

What are the Differences Between CRDP and CRSC?

While both CRDP and CRSC aim to provide additional compensation to disabled military retirees, there are several important distinctions between the two programs:

1. Application Process:
   • CRDP: Automatic enrollment for eligible retirees
   • CRSC: Requires application through the veteran’s branch of service
2. Minimum VA Disability Rating:
   • CRDP: 50% overall VA disability rating required
   • CRSC: 10% VA disability rating for a qualifying combat-related condition
3. Taxability:
   • CRDP: Taxable income
   • CRSC: Tax-free benefit
4. Type of Disabilities Covered:
   • CRDP: All service-connected disabilities
   • CRSC: Only combat-related disabilities
5. Retroactive Payments:
   • CRDP: May go back to January 1, 2004
   • CRSC: May go back to June 1, 2003

How Do I Determine if I’m Receiving CRSC or CRDP?

To determine which program you’re receiving, check your retiree account statement or DFAS myPay account. CRSC will be listed as a separate payment, while CRDP will appear as an increase in your retired pay. If you’re still unsure, contact DFAS or your branch of service for clarification.

How Do I Apply for CRSC if I Think I’m Eligible?

To apply for CRSC:

1. Download and complete DD Form 2860 (Claim for Combat-Related Special Compensation).
2. Gather supporting documentation, including medical records, VA rating decisions, and any evidence of combat-related injuries.
3. Submit your application and supporting documents to your branch of service’s CRSC review board.

Each service branch has its own CRSC review board and specific mailing address for applications.

Can I Switch from CRDP to CRSC or Vice Versa?

Yes, if you’re eligible for both programs, you can switch between CRDP and CRSC. This is known as the annual “Open Season,” which typically occurs in January. During this time, you can choose which program is more beneficial for you. DFAS will automatically select the program that provides the higher payment, but you can elect to change this if you prefer.

Should I Apply for CRDP or CRSC?

For veterans eligible for both CRDP and CRSC, choosing between the two programs can be complex. Here are some factors to consider:

1. Tax Implications: If you’re in a higher tax bracket, the tax-free nature of CRSC might be more beneficial.
2. Disability Ratings: Those with higher overall ratings but fewer combat-related disabilities might benefit more from CRDP.
3. Retroactive Payments: If you have significant back pay due, the program offering the most retroactive compensation might be preferable.
4. Annual Election: Remember that you can switch between programs each year, allowing you to choose the most advantageous option as your situation changes.

It’s important to note that you cannot receive both CRDP and CRSC simultaneously.

What is Combat Pay?

It’s worth noting that Combat Pay, also known as Hostile Fire Pay or Imminent Danger Pay, is different from CRSC. Combat Pay is additional compensation provided to active duty service members serving in designated combat zones. CRSC, on the other hand, is for retired veterans with combat-related disabilities.

What Veterans Need to Know About CRDP and CRSC

Having a good grasp on the nuances of CRDP and CRSC can significantly impact your financial well-being as a disabled military retiree. By familiarizing yourself with these programs, you can ensure you’re receiving the full compensation you’ve earned through your service and sacrifice. These benefits are not just financial support – they’re a recognition of your dedication to our country.

You Fought For Your Country, Let Us Fight for You.

If you have had a VA disability claim denied and need help appealing it, reach out to our team here at Veterans Disability Aid. Alan Watt is a VA-accredited claims agent and has extensive experience navigating the difficult and often confusing VA claims and appeals process. Give us a call or fill out the contact to get started. You deserve the compensation you are entitled to, and we are dedicated to ensuring you get your correct rating.