Combat-Related Special Compensation (CRSC) provides military Retirees a tax-free monthly compensation that is intended to replace some or all of the retired pay that is withheld due to receipt of VA compensation. CRSC is payable for disabilities that are found to be related to combat, including disabilities that were incurred in actual combat, while engaged in hazardous service, in the performance of duty simulating war, training for combat or as a result of an instrumentality of war. The amount of CRSC payable is directly related to the evaluation(s) assigned to combat-related disabilities, but cannot exceed the amount of withheld retired pay. Retirees cannot receive benefits simultaneously under both, CRSC and Concurrent Retirement and Disability Payments (CRDP), programs.
DFAS began deducting
Survivor Benefit Plan (SBP) premiums from Combat-Related Special Compensation (CRSC) when retired pay is not sufficient to cover the full amount of the premiums in April 2018. This deduction is due to a change in the law which requires DFAS to deduct SBP premiums from CRSC. Click
here for more information.
Eligibility
Army Retirees (including chapter 61 Retirees) are qualified to receive CRSC if they have a Combat-Related VA service-connected disability rating of 10% or higher and are drawing retirement pay which is reduced by a VA waiver.
In addition, the 2008 National Defense Authorization Act (NDAA) expands CRSC eligibility to cover those who were medically retired under Chapter 61, Temporary Early Retirement Act (TERA), and Temporary Disable Retirement List (TDRL) Retirees with less than 20 years of service. Medical and TERA Retirees must still provide documentation that shows a causal link between a current VA disability and a combat related event.
Note: Currently—There is a Six Year Statute of Limitations: CRSC is subject to the 6-year statute of limitations, 31 U.S.C., Section 3702(b). In order to receive the full retroactive CRSC entitlement, you must file your CRSC claim within 6 years of the date of any VA rating decision that could potentially make you eligible for CRSC or the date you become entitled to retired pay, whichever is more recent. If you file your claim more than 6 years after initial eligibility, you will be restricted to 6 years of any retroactive entitlement. Any questions relating to the payment of this claim must be addressed to Defense Finance and Accounting Service (DFAS) who is the pay authority for CRSC.
*The six-year statute of limitations extends backwards from the original date of application where the retiree meets all eligibility requirements.
Benefit Highlights
CRSC Programs: The Combat-Related Special Compensation (CRSC) program was enacted by Congress on 2 December 2002. In accordance with specific guidance, the CRSC program provides compensation for certain Uniformed Service Retirees with combat-related disabilities. The original CRSC program (CRSC I) began 1 June 2003 for active duty Retirees with 20 years of service. The CRSC II program was created 1 January 2004 to offer compensation for a larger group of combat-disabled Retirees, including reserve Retirees at the age of 60.
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