Combat-Related Special Compensation (CRSC)

Overview - Combat-Related Special Compensation (CRSC) & Divorce

Combat-Related Special Compensation compensates veterans for combat-related disabilities.

• CRSC payments are not subject to a VA waiver
• A member cannot receive both CRSC and Concurrent Retirement & Disability Pay (CRDP), but can receive whichever is higher
• CRSC is not taxable
• CRSC cannot be divided as property in a divorce, but may be garnished to pay child support or alimony

LEARN MORE with the following in-depth discussion of CRSC and its treatment upon dissolution of marriage.

In Depth - Combat-Related Special Compensation (CRSC) & Divorce

In 2002, Congress created Combat-Related Special Compensation (CRSC), now codified at 10 U.S. Code § 1413a, to ensure that members with a combat-related disability would not have to forfeit retirement in order to receive disability pay. CRSC is a variation what is popularly-known at “concurrent receipt", by which retirees with a 50% or higher VA disability rating may receive both retirement and disability pay.

Put simply, CRSC can result in eligible retirees receiving both (1) their full disability pay, plus (2) the equivalent of up to their full military retirement.

CRSC vs. CRDP

CRSC serves a similar purpose to Concurrent Retirement & Disability Pay (CRDP), in that both programs compensate for military retirement which is lost due to the VA waiver. But they have a few key differences:

• CRSC requires that the disability be combat-related, whereas with CRDP any service-connected disability is sufficient.
• CRSC requires only a 10% or greater combat-related disability rating, whereas a retiree is not eligible for CRDP unless the rating is at least 50%.
• CRSC payments are tax-free, whereas CRDP is taxable, as it effectively just restores the member’s full military retirement.

CRSC and CRDP are mutually-exclusive - the retiree can elect either one, but not both of them. 10 U.S. Code § 1414(d). It often makes more sense for the retiree to opt for CRDP instead of CRSC - for example a retiree who has a 70% service-connected disability rating, of which 10% is combat-related, would no longer have a VA waiver using CRDP, so is probably better off foregoing CRSC.

Conversely, a retiree with a 40% disability rating, all of which is combat-related, is not eligible for CRDP, so but-for CRSC would lose the retirement waived to receive VA disability.

CRSC Eligibility Requirements

First, the retiree must have a combat-related disability, which pursuant to 10 U.S. Code § 1413a(e) means:

• An injury for which the Purple Heart was awarded, or
• The disability is as a direct result of armed conflict, hazardous service (parachute duty, demolition, etc), conditions simulating war (i.e. war games), or through an instrumentality of war.

Note that an injury which simply occurs in a combat zone, but is not actually combat-related (e.g. a servicemember in Iraq permanently injures himself playing volleyball) does not qualify for CRSC.

The other significant requirements to receive CRSC are:

• The combat-related disability is at least 10%.
• The retiree is receiving normal military retirement, is medically discharged, is on the Temporary Disability Retired List (TDRL) or is receiving Temporary Early Retirement (TERA).
• The retired pay is being reduced by a VA waiver.

CRSC Payments

Because CRSC is intended simply to mitigate the effects of the VA waiver, payments are capped at the lower of:

• The amount of VA disability the retiree would receive for the same disability if it were not combat-related disability,
• The amount of the VA waiver in effect.

CRSC Payments In A Divorce

“CRSC is not retired pay, and it is not subject to the provisions of 10 U.S. Code § 1408 relating to payment of retired or retainer pay in compliance with court orders.” DOD Financial Management Regulation, Volume 7B, Chapter 63, Section 630101.C.1. CRSC may be garnished from garnishment for child support or alimony, however. Section 630101.C.2.

More Information

Combat Related Special Compensation, from DFAS

Combat-Related Special Compensation FAQ, from military.com.