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What Is Concurrent Receipt?
Historically, military retirees who also received VA disability compensation had their retirement pay reduced dollar-for-dollar by the amount of VA compensation. This was known as the "VA offset." Concurrent receipt programs were created to eliminate or reduce this offset, letting eligible veterans receive both benefits simultaneously.
There are two concurrent receipt programs, and a veteran can only use one at a time:
- CRDP (Concurrent Retirement and Disability Pay): Gradually restored the VA offset for retirees with 20+ years of service and a VA rating of 50% or higher. At 50%+, retirement pay is fully restored — no offset. Available for all qualifying disabilities, not just combat-related.
- CRSC (Combat-Related Special Compensation): A separate tax-free payment for retirees whose disability was caused by combat, combat training, or instrumentalities of war. CRSC can pay more than CRDP in certain situations, especially at lower VA ratings, because it is not affected by the phase-in rules and is tax-free.
Key Differences: CRDP vs CRSC
| Feature | CRDP | CRSC |
|---|---|---|
| Taxable? | Yes (same as retirement pay) | No — tax-free |
| Minimum VA rating | 50% (full); 40% (phased) | 10%+ (combat-related) |
| Combat requirement? | No | Yes |
| Affects SBP base? | No | No |
| Applied automatically? | Yes (if eligible) | Must apply (DD Form 2860) |
Frequently Asked Questions
What qualifies as "combat-related" for CRSC?
CRSC covers disabilities caused by: (1) armed conflict, (2) hazardous duty such as parachute jumps, demolitions, or flight duty, (3) conditions caused by an instrumentality of war (e.g., exposure to Agent Orange, Gulf War illness from military equipment), or (4) combat training. Simply having a service-connected disability is not enough — the disability must have a direct link to one of these categories.
Can I switch between CRSC and CRDP each year?
Yes. You can elect to switch between CRSC and CRDP annually during the open season, or at any time if your circumstances change (e.g., a new VA rating decision). DFAS will apply whichever program you are enrolled in. Use this calculator each year to verify which pays more as your VA rating or retirement pay changes.
How do I apply for CRSC?
You apply to your branch of service (Army, Navy, Air Force, Marines, or Coast Guard) using DD Form 2860. Include evidence linking your disability to a qualifying combat or hazardous activity. Your branch reviews the claim — not the VA. If approved, DFAS processes the payments. The process can take several months, and you may receive back pay from your effective date.
Do Chapter 61 (disability retirement) veterans qualify for CRDP?
No. CRDP is only for retirees who served 20+ years (longevity retirement). Chapter 61 (medical/disability retirement) veterans are generally not eligible for CRDP. However, Chapter 61 retirees may qualify for CRSC if their disability is combat-related and they meet the other requirements.