Before 2004, military retirees could not receive both their military retirement pay and VA disability compensation simultaneously — the VA disability amount was deducted dollar-for-dollar from retirement pay (called the "VA waiver"). Two laws changed this: the Concurrent Retirement and Disability Pay (CRDP) program and the Combat-Related Special Compensation (CRSC) program.

Thousands of eligible military retirees are still not receiving one or both of these payments — often because no one told them they qualified.

What Is CRDP?

CRDP allows eligible military retirees to receive both their full retirement pay AND their full VA disability compensation simultaneously. DFAS (Defense Finance and Accounting Service) administers CRDP payments automatically — no separate application is required.

To qualify for CRDP, you must:

  • Be a military retiree with 20 or more years of qualifying service, AND
  • Have a VA disability rating of 50% or higher

If you meet both criteria, DFAS automatically phases in the full concurrent receipt. If your VA rating is below 50%, you do not qualify for CRDP.

What Is CRSC?

CRSC is a separate program for retirees whose disabilities are directly related to combat or combat training. Unlike CRDP, CRSC is not automatic — you must apply through your branch of service.

CRSC allows eligible retirees to receive compensation for their combat-related disabilities without the dollar-for-dollar reduction that applied under the old VA waiver system. CRSC is available to retirees with any length of qualifying service (not just 20-year retirees) who meet specific combat-related criteria.

Combat-related disabilities include: direct combat, a hazardous duty, an instrumentality of war (vehicle, ship, aircraft), or simulated war exercises. VA ratings alone do not determine CRSC eligibility — the disability must have a documented combat-related cause.

Choosing Between CRDP and CRSC

If you qualify for both CRDP and CRSC, you must choose one. You cannot receive both simultaneously.

In most cases:

  • CRDP is better for retirees with higher VA ratings (60%–100%) because it allows full concurrent receipt of full retirement pay + full VA compensation.
  • CRSC is sometimes better for retirees with retirement pay that is partially or wholly taxed, because CRSC payments are not taxable income (they replace the taxable portion of retirement pay with a tax-free benefit).

The DFAS comparison calculators at dfas.mil can help model which program produces higher after-tax income for your specific situation.

How to Apply

CRDP: No application required. DFAS automatically processes CRDP for eligible retirees. If you believe you are eligible but are not receiving CRDP, contact DFAS directly.

CRSC: Applications are submitted through your branch of service (Army, Navy, Air Force, Marine Corps, Coast Guard). Required documentation includes VA rating decisions and military records establishing the combat-related nature of each disability.

KEY TAKEAWAYS:

  • CRDP requires: 20+ years of service AND VA rating of 50% or higher; it is automatic and administered by DFAS
  • CRSC requires: combat-related disability (any service length); application must be submitted to your branch
  • You cannot receive both CRDP and CRSC simultaneously — you must choose
  • CRSC is not taxable income; CRDP is; this can make CRSC the better choice depending on your retirement pay mix
  • If you believe you qualify for CRDP but are not receiving it, contact DFAS directly