What is the difference between CRDP and CRSC?

CRDP (Concurrent Retirement and Disability Pay) automatically restores military retirement pay that was previously offset by VA disability compensation, and requires a VA rating of 50% or higher. CRSC (Combat-Related Special Compensation) pays a tax-free amount for combat-related disabilities and requires a separate application to your branch, but has no minimum VA rating requirement.

Do I need to apply for CRDP?

No. CRDP is applied automatically by DFAS if you meet the eligibility requirements (20+ years of service and VA rating of 50% or higher). No application is needed.

How do I apply for CRSC?

CRSC requires an application to your military branch: Army veterans apply through HRC, Navy and Marine Corps through PERS-95, Air Force and Space Force through AFPC, and Coast Guard through PSC. Applications can be submitted at any time — there is no deadline.

Can I receive both CRDP and CRSC?

No. You cannot receive both CRDP and CRSC simultaneously. Each January, DFAS automatically pays whichever is higher, but you can submit a written election to choose the other program if it benefits you.

No. CRSC payments are tax-free, unlike CRDP which is taxable as retirement pay. This tax advantage often makes CRSC the better option even when the gross CRSC amount is slightly lower than CRDP.

●InvestigationsHow EUCOM shelved a tax break for 9,000 troops in Poland — for five years.→

Retirement Tools

CRDP vs CRSC Calculator

Military retirees with VA disability can receive both retirement pay and VA compensation — but CRDP and CRSC restore that money in different ways. One is taxable, one isn't. The right choice can mean thousands of dollars a year.

Educational estimates only. DFAS applies CRDP automatically. CRSC requires application to your branch. Consult a VSO or military tax advisor to confirm your specific situation.

Your Situation

Years of Service

Monthly Gross Retirement Pay

VA Disability Rating

Monthly VA Compensation

Enter your actual monthly VA pay. Use 2026 VA disability compensation tables.

Is Your Disability Combat-Related?

Combat-related: direct combat, hazardous duty, armed conflict, simulated war training, or instrumentality of war (e.g. weapons noise, vehicle accident on duty).

Tax Bracket (for after-tax comparison)

CRSC is tax-free. CRDP (retirement pay) is taxable. Your bracket determines which actually pays more.

The VA Offset Problem

For decades, a federal law created a cruel double-billing for disabled military retirees. Both retirement pay and VA disability compensation come from the federal government — and Congress decided you couldn't collect both in full. For every dollar in VA compensation you received, your retirement pay was reduced by one dollar. You got the same total amount as if you only had one benefit.

This made no logical sense: VA compensation replaces income lost due to disability. Retirement pay is compensation for years of service. They are different things. Congress eventually agreed — and created two separate programs to fix the problem.

CRDP and CRSC both eliminate this offset — but they do it differently, they have different eligibility requirements, and one is taxable while the other is not. You can only use one at a time.

Program 1

CRDP — Concurrent Retirement and Disability Pay

CRDP simply restores the VA offset. If you qualify, DFAS pays you back the retirement pay that was previously withheld to offset your VA compensation — so you receive your full retirement pay AND your full VA compensation simultaneously.

Eligibility

20+ years of qualifying service AND a VA rating of 50% or higher. (Chapter 61 medical retirees have different rules — see below.)

Taxability

CRDP restoration is treated as retirement pay — fully taxable income.

Application

None required. DFAS applies CRDP automatically when you qualify. It appears as a separate line on your retired pay statement.

Below 50%

Ratings below 50% do not qualify for CRDP (unless you're Chapter 61). This is where CRSC becomes critical.

Program 2

CRSC — Combat-Related Special Compensation

CRSC pays a tax-free monthly amount equal to the VA compensation you receive for combat-related disabilities, up to your gross retirement pay. Because it's tax-free, it is often the higher net-income option — even when the gross CRDP amount looks larger.

Eligibility

20+ years of qualifying service (or Chapter 61) AND at least one disability that is combat-related.

Combat-related

Direct combat, hazardous duty, armed conflict, simulated war training, or instrumentality of war. PTSD from combat, TBI from blast, hearing loss from weapons fire all typically qualify.

Any VA rating

Unlike CRDP, CRSC is available at any VA disability rating — even 10% or 20% — as long as the disability is combat-related.

Taxability

Tax-free. CRSC is excluded from gross income entirely. This is its key advantage over CRDP.

Application

You MUST apply. CRSC does not happen automatically. Submit to your branch — Army: HRC; Navy/Marines: PERS-95; Air Force/Space Force: AFPC; Coast Guard: PSC.

Applying for CRSC — By Branch

Army

Human Resources Command (HRC)

HRC CRSC Branch — [email protected]

Navy

PERS-95 (Combat-Related Special Compensation)

NAVPERSCOM — [email protected]

Marine Corps

Manpower & Reserve Affairs (M&RA)

Retired Services Branch

Air Force / Space Force

Air Force Personnel Center (AFPC)

[email protected]

Coast Guard

Personnel Service Center (PSC)

[email protected]

The January Election Window

If you qualify for both CRDP and CRSC, you elect one each January. DFAS sends you a comparison letter. You are not locked in forever — you can switch programs each year during the open election period.

This means your optimal choice can change over time. If your VA rating increases, the CRSC/CRDP math shifts. If tax law changes, it shifts again. Check your numbers every year when DFAS sends your annual notice.

Chapter 61 Medical Retirees — Different Rules

Chapter 61 retirees — those separated for disability before completing 20 years — have more complex CRDP eligibility. CRDP requires that your disability rating equals your percentage of disability for retirement purposes, and the VA rating must be 50% or higher.

CRSC is available to Chapter 61 retirees with combat-related disabilities at any rating, making it especially important for those medically retired before reaching 20 years. If you are a Chapter 61 retiree, the calculator below is directional — consult your VSO for the exact rules that apply to your case.