Combat Related Special Compensation

Congress established the Combat-Related Special Compensation (CRSC) program in 2003 to provide special compensation to military retirees with service-connected disabilities. The program is only for those who have retired from duty due to combat-related injuries or illnesses.

Combat Related Special Compensation (CRSC) is a form of “concurrent receipt.” This means the veteran is eligible to receive both CRSC and VA disability. As a result, this can be very valuable. However, the Department of Defense makes it difficult to receive concurrent pay. This blog post will examine how to receive concurrent pay.

Combat Related Special Compensation: Basic Eligibility

As a general rule, retirees need 20 years to receive both retirement pay and VA disability. A 20 year retiree would receive concurrent pay through “Concurrent Retirement Disability Pay.” The Department of Defense acknowledges that the retiree is eligible for both a full retirement and any applicable disability pay. However, Congress and the DoD realized that many retirees were being financially penalized because the military medically retired them before the 20 year mark.

As a result, Combat Related Special Compensationwas created by law. CRSC is allowed when the medical retirement is caused by one or more of the following:

• As a direct result of armed conflict;
• While engaged in hazardous service (e.g., flight, diving, parachute duty);
• In the performance of duty under conditions simulating war (exercises, field training);
• Through an instrumentality of war (combat vehicles, weapons, Agent Orange, etc.)

Notably, there is an opportunity for a retiree to receive CRSC when they have never deployed.

CRSC: Financial Impact

A retiree with less than 20 years typically receives two payments each month. They receive their retirement pay, and they receive their VA disability. However, the DoD reduces retirement pay by $1 for each $1 of VA disability.

However, Combat Related Special Compensation compensates for the reduction of the retirement pay. As a result, the retiree can receive their retirement pay, their VA disability pay, and a CRSC payment to compensate for most or all of the reduction. This change has a significant impact on the retiree’s overall income.