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CRDP and CRSC: What you need to know about these two monthly retirement entitlements.

Updated: Apr 13, 2022

Before we dive in let’s cover some important information upfront. If you’re a Veteran that is about to receive retirement pay and VA disability compensation as well, you will have to forfeit part of your service retirement pay. Why? Because of the Governments “Double-Dipping” law (I know, it frustrates me too). The Law states that you, the veteran, cannot receive payment for duplicate benefits. So in order for your payment to be in compliance with the law, the amount of money you receive from your VA compensation is subtracted from the retirement pay to ensure that you aren’t receiving pay for duplicate benefits. They call this subtraction of funds, the “VA Waiver”. See image 1.

Image 1:

However, some Veterans qualify for what is known as “Concurrent receipt.” This is the restoration of service retirement pay that has been withheld by our Tyrannical Government’s “VA Waiver” (Que the Boston Tea Party Rock Anthem). Now that we have that covered let’s break down CDRP and CRSC.

Concurrent Retired and Disability pay (CRDP) and Combat-Related Special Compensation (CRSC), are the only two forms of concurrent receipt available to service members. While they both serve to restore all or part of your VA Waiver, they are also very different when it comes to eligibility, requirements, their application processes, and who funds the program. If you qualify for both, it can be difficult to decide which is better.

Concurrent Retired and Disability pay (CRDP)

The CRDP simply restores your normal service payment by canceling the VA waiver altogether. This means that you will not be receiving two separate checks, just one. It will be issued by the Defense Finance and Accounting Service, more commonly known as, DFAS.

See image 2.

Image 2:

CRDP is simply the restoration of your retirement pay. Here’s one big bonus to the CRDP, there’s no lengthy process of application or needless forms to fill out. If you are eligible for this, DFAS will remove the VA waiver and restore your retirement pay to the full amount.

Too easy right? Not so fast…

If you are retiring from Active Duty and have a Service-Connected disability rating, you are not authorized to receive the full VA Waiver amount. Simply because your retired pay will be increased due to your VA Disability rating. CDRP is based only on your “years of service”. So for those of you that are in this category, the DFAS will only restore the amount of the VA Waiver that is based on “Years of service”, but not the amount which is based on your disability rating.

Eligibility Criteria for CRDP:

- Survive! Reach 20 or more years and retire.

- Receive retirement pay and VA compensation payments

- Must have a disability rating of 50% or more and Service-Connected

Additional Information:

- Chapter 61 retirees that have less than 20 years of service are not eligible for CRDP.

- CRDP is applied automatically if you meet the requirement.

Combat-Related Special Compensation (CRSC)

CRSC is concurrent receipt of payment benefits, for veterans with combat-related disabilities. CRSC does not eliminate the VA waiver. The VA waiver will be subtracted from your service retired pay. However, there is some good news, the CRSC reimburses ALL or some of your VA waiver in a separate check.

So, if you are a veteran and you meet the criteria to receive CRSC, you will receive three separate checks each month. DFAS will cut you a check for your service retired pay (minus the VA waiver amount), the VA will cut you a check for your full VA compensation, and your branch of service will cut you a check for your CRSC reimbursement.

Of course, like anything else the Government provides, there is an additional stipulation.

If your VA compensation check is larger than your total retired pay, you may only get 2 checks each month, your VA check and your CRSC payment. You would not receive your retirement pay because the VA Waiver amount will eliminate the retirement pay amount. But on the bright side, the CRSC is TAX-FREE!

Additional Information on CRSC:

CRSC will not reimburse the full amount of your VA waiver if only some of your disabilities are service-connected.

Example: The Army determines that only 40% of your 70% rating meets the criteria for being Combat-related. In this case, they would only pay you based on the VA Compensation of 40 percent rating.

Graphics posted below for more clarity:

But what about those with service disability rating upon retirement?

Like CRDP, if you retire from the military with a service disability rating, you may not receive the Full VA waiver amount in your CRSC payment. For the most part, your retirement pay is based on the number of years served and pay grade. If you already have a disability rating when you retire, that additional amount is added to your retirement pay, which is more than what you would have received, if the payment was only based on your years of service. If this applies to you, the VA will reimburse the amount of the VA Waiver that is only based on your years of service, not the amount based on an in-service disability rating.

Eligibility Criteria for CRSC:

CRSC is not automatically applied to your pay if you are eligible. Instead, you have to apply through your branch of service. Your branch of service also determines which portion of your VA disability rating is combat-related and provides you with the appropriate CRSC rating. The CRSC rating is what determines the amount of additional payment you will receive monthly.

Eligibility criteria vary from service to service. It’s mostly based on what each branch determines

Is a “combat-related” condition or disability. Below are some criteria that are the same across the board.

- You must receive both service retired pay and VA disability compensation.

- There is no minimum rating requirement for CRSC to kick in

- Veterans with a 0% disability rating are not eligible

Below are links to each Branch of service, which explain the exact requirements and how to apply:


So which should you pick?

Since you can’t have both at the same time (trust me on this). Here is an easy way to decide.

Go with the biggest amount: That simple. To make it even easier if you are receiving CRDP and then submit and get approved for CRSC. The folks at DFAS will do the math and automatically pay you the greater amount!

If you prefer the other program after DFAS makes the determination, you can switch it out manually during the voluntary “open season”, which occurs every year in December. DFAS will send out the application forms and tax break down to your mailing address. Simply fill out the form and send it back. For further help please see the chart below.

If you still need help figuring this out, below are some helpful articles and websites that can make things crystal clear.


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