What Is Changing With Combat Related Special Compensation?

The Department of Defense (DoD) is launching a new computerized matching program for Combat Related Special Compensation (CRSC) payments. This initiative, announced under the Privacy Act of 1974 and guided by the Payment Integrity Information Act of 2019 (PIIA), compares military retirement and CRSC records with the Treasury’s Do Not Pay (DNP) Working System. The goal is to identify and prevent improper payments to retirees.

CRSC is a tax-free benefit for military retirees with combat-related disabilities. If you receive CRSC, your payment records will now be cross-checked with federal databases to ensure eligibility and accuracy. This could impact the timing or continuity of your payments if discrepancies are found.

How the DoD-Treasury Matching Program Works

The matching program is managed by the Defense Finance and Accounting Service (DFAS) and the Treasury’s Bureau of the Fiscal Service. Each month, DFAS will automatically compare CRSC and military retirement records with the DNP system, which flags individuals who should not receive federal payments due to death, debt, or other disqualifying factors.

  • If your records match a DNP entry, your payment may be delayed or stopped until the issue is resolved.
  • This process is required by 31 CFR Part 210 and OMB guidance on payment integrity.
  • The aim is to comply with federal law and reduce improper payments, not to change eligibility rules.

For more on military retirement and related benefits, see our military retirement hub.

What Retirees and Veterans Should Do Now

To avoid payment interruptions, make sure your personal and banking information is current with DFAS. Update your address, direct deposit details, and report any changes in your status right away. You can log in to myPay or contact DFAS Customer Service for updates.

  • Check your CRSC and retirement pay statements each month for accuracy.
  • If you receive a notice about a payment hold or discrepancy, respond promptly and provide any requested documentation.
  • Keep copies of your VA award letters, retirement orders, and any correspondence with DFAS.

For more on how your disability rating affects retirement pay, visit our disability ratings hub and use our VA disability rating calculator.

What to Expect If Your Payment Is Flagged

If the matching program finds an issue, DFAS may temporarily suspend your CRSC or retirement payment. You’ll receive a notice explaining the reason, such as a possible match to a deceased individual or a debt owed to the government. You will have the opportunity to correct errors or appeal the decision.

  • Respond to DFAS notices as soon as possible to avoid long-term payment loss.
  • Gather supporting documents, such as proof of life, debt resolution, or updated personal information.
  • If you believe your payment was stopped in error, you can file an appeal or request a review. See our explainers index for step-by-step guides.

Staying Informed and Protecting Your Benefits

This matching program is part of a broader federal effort to ensure payments go only to eligible recipients. While it may increase scrutiny, it also helps protect the integrity of veterans’ benefits. Stay proactive by monitoring your records and communicating with DFAS or the VA if you notice any issues.

For updates on military pay, retirement, and benefit policy changes, check our military retirement hub regularly.