A military retiree with a VA rating normally gives up a dollar of retired pay for every dollar of VA compensation. Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC) give some or all of it back. You can only receive one. DFAS pays the larger one by default, but CRDP is taxable and CRSC is not, so the smaller payment can leave you with more money.
Your retirement
Your VA rating
| Monthly | No program | CRDP | CRSC |
|---|
Who qualifies for what
| Rule | CRDP | CRSC |
|---|---|---|
| Rating needed | 50% combined or higher | 10% or higher for conditions found combat-related |
| Service needed | 20+ years, or TERA. Chapter 61 only with 20+ years | 20+ years, TERA, or Chapter 61 at any length of service |
| How you get it | Automatic | Apply to your branch (DD Form 2860) |
| Taxes | Taxable, like retired pay | Tax-free |
| Both? | You receive one. DFAS pays the larger gross amount; you can switch each January during open season. | |
Frequently asked questions
Can I get both CRDP and CRSC?
No. If you qualify for both, DFAS pays one, by default whichever is larger before taxes. Each January (open season) you can elect the other. Because CRSC is tax-free, the smaller CRSC payment can still leave you with more money.
Do Chapter 61 medical retirees get CRDP?
Only with 20 or more years of service. 10 U.S.C. 1414 excludes Chapter 61 retirees with fewer than 20 years, but they can still receive CRSC for combat-related conditions.
Is CRSC taxable?
No. CRSC is tax-free. CRDP is taxable, because it is restored retired pay.
What counts as combat-related for CRSC?
Conditions from armed conflict, hazardous service, conditions simulating war (such as training exercises), or an instrumentality of war (such as a vehicle or weapon). Your branch's CRSC board decides, and only those conditions go into the CRSC rating.
Check it against the official source
- DFAS: CRDP
- DFAS: CRSC
- VA compensation rates (VA.gov Official 2026 Rates (effective December 1, 2025))
- 10 U.S.C. 1414 (CRDP)
This is an estimate for planning. For a binding answer, talk to your finance office or a free Personal Financial Counselor at your installation (find yours).