What Is Combat Related Special Compensation
Combat Related Special Compensation (CRSC) is a tax-free monthly payment from the Department of Defense for military retirees with service-connected disabilities rated by the VA. Unlike regular military retirement pay, CRSC replaces a portion of your retirement income dollar-for-dollar on a tax-free basis when your disability is determined to be combat-related.
The key distinction is that CRSC applies specifically to retirees, not all veterans. You must have 20 or more years of active duty service and receive a military retirement check. If you meet these criteria and the VA rates your service-connected condition at 50% disability or higher, you become eligible to apply for CRSC. The military then offsets your taxable retirement pay with an equal tax-free CRSC payment.
Eligibility and Combat Relatedness
CRSC eligibility requires three components: military retirement status, a VA disability rating of 50% or higher, and a determination that your disability is combat-related. Combat-related means your condition resulted from an injury or illness incurred in a combat zone or as a direct result of armed conflict.
The VA doesn't automatically determine combat-relatedness during your initial disability rating. You must submit a separate CRSC application to the military branch where you served. Many veterans don't realize they need to apply for CRSC in addition to filing their VA disability claim, which is why working with a Veterans Service Officer (VSO) is valuable. A VSO can help you establish the nexus between your combat service and your disability, gather supporting documentation, and file the CRSC claim with the correct military department.
The Application Process
- File your VA disability claim first: Obtain a 50% or higher rating before applying for CRSC. Your C&P exam results and medical records become part of the CRSC review.
- Submit CRSC application to your branch: The Army uses DD Form 2860, the Navy and Marine Corps use NAVPERS 1301/9, and the Air Force uses AFPC Form 116. These are branch-specific forms.
- Provide combat documentation: Include discharge papers, deployment records, battle roster information, or statements from unit members confirming you were in a combat zone when the condition developed.
- Appeal if denied: If your CRSC claim is denied, you can appeal through the military's administrative appeals process, which is separate from the VA appeals process. Many successful appeals include a nexus letter from your VA physician or private medical evidence establishing the combat-service connection.
Common Questions
- Can I receive both CRSC and Concurrent Retirement and Disability Pay (CRDP)?
- No. CRSC and CRDP are mutually exclusive. CRSC applies to combat-related disabilities, while CRDP allows retirees with a 50% or higher rating to receive both full military retirement and full VA disability compensation. Most veterans come out ahead with CRDP if they qualify, since CRDP provides both payments without offset, whereas CRSC offsets retirement pay.
- What happens if my VA rating changes after I'm approved for CRSC?
- If your rating drops below 50%, you lose CRSC eligibility immediately. If it increases, your CRSC payment increases proportionally. Always notify the military's CRSC branch of rating changes.
- How long does the CRSC review process take?
- Processing times vary by branch, typically 60 to 120 days after submission. The military reviews your VA records, so having a complete VA rating first speeds up the process considerably.