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CRDP and CRSC: for military retirees
Normally your military retired pay is reduced dollar-for-dollar by your VA compensation (the "VA waiver"). Two programs give some or all of that back. You can get one, not both.
At a glance
| CRDP | Concurrent Retirement and Disability Pay. Restores retired pay for 20-year retirees (including Guard and Reserve with 20 qualifying years, and TERA) with a VA rating of 50% or more. Automatic. Taxable. |
| CRSC | Combat-Related Special Compensation. For retirees, including Chapter 61 medical retirees with under 20 years, whose disability is combat-related (Purple Heart, armed conflict, hazardous duty, instrumentality of war, or simulated war). DFAS lists a 10% minimum VA rating. You apply to your service branch with DD Form 2860. Tax-free. |
| Choosing | DFAS runs an Open Season every January (Jan 1 to 31 in 2026). You get a letter if you are eligible for both |
| Official pages | DFAS CRDP · DFAS CRSC · Apply for CRSC |
Which one is better?
If every one of your rated conditions is combat-related, CRSC is usually better because it is tax-free. If only some are, CRDP often pays more because it restores the full waiver amount at 50%+. DFAS's letter shows both numbers. A retiree services office or a VSO can help you compare.
Traps
- Chapter 61 (medical) retirees with under 20 years do not get CRDP. CRSC is the only route, and only for combat-related conditions.
- CRDP for Chapter 61 retirees with 20+ years is offset by the difference between disability retired pay and longevity retired pay.
- CRSC is not a VA program. VA rates you; your branch decides what is combat-related.
- The Major Richard Star Act, which would extend concurrent receipt to combat-injured medical retirees with under 20 years, had not become law as of Oct 2026 based on the sources we could reach. Needs verification Check congress.gov.
DFAS blocks automated reading of its pages, so the DFAS wording above was confirmed from search excerpts, 10 U.S.C. 1413a and 1414, and VA's 2026 Federal Benefits guide. Re-check the DFAS page before you act.
Sources
- 10 U.S.C. 1414 (CRDP)
- 10 U.S.C. 1413a (CRSC)
- VA Federal Benefits for Veterans, Dependents, Survivors, and Caregivers, 2026 Edition (PDF) (CRDP section, p. 32)
- DFAS CRDP (not fetched directly)
- DFAS CRSC (not fetched directly)
- DFAS CRDP/CRSC FAQ (not fetched directly)
All links checked and content verified on Oct 16, 2026. Rules change; confirm on the official page before you act.