CRSC is a monthly payment from the Department of Defense for military retirees with service-connected disabilities

CRSC stands for Concurrent Retirement and Disability Pay. It is a program that allows certain military retirees to receive both their full military retirement pay and a separate monthly payment from the Department of Veterans Affairs (VA) for disabilities connected to their military service. Without CRSC, a retiree would normally have to choose between one payment or the other — the military would reduce retirement pay by the amount of the VA disability payment. CRSC removes that offset.

The program exists because Congress recognized that some retirees earned their retirement through years of service and also developed disabilities during that same service. CRSC lets them collect the full value of both. The payment arrives as a separate deposit, distinct from your military retirement check.

Key Takeaways

  • CRSC allows military retirees to receive full retirement pay plus a separate VA disability payment without the military reducing retirement pay.
  • You must have retired from active duty, the National Guard, or the Reserves and have a service-connected disability rated by the VA.
  • The VA disability rating must be at least 50 percent, or you must have been medically retired with any disability rating.
  • CRSC payments come from the Department of Defense, not the VA, and arrive as a separate monthly deposit.
  • You do not receive both the full CRSC amount and the full VA disability payment — the payments are coordinated so you receive the higher of the two amounts plus the CRSC supplement.

Who receives CRSC payments

CRSC is available only to military retirees — people who left active duty, the National Guard, or the Reserves after completing a full career (typically 20 years or more) and began receiving a military retirement check. You cannot receive CRSC if you separated from the military without retiring, even if you have a service-connected disability.

You must also have a service-connected disability rating from the VA. The rating must be at least 50 percent, or you must have been medically retired (meaning the military discharged you due to disability before you completed a full career). If you were medically retired with any disability rating, you may be may be able to access for CRSC regardless of the percentage.

The disability must be connected to your military service. The VA determines this through a claims process. A disability that developed after you retired, or one unrelated to your service, does not may have access to.

How CRSC payments are calculated

CRSC is not a fixed dollar amount. The payment depends on your military retirement pay and your VA disability rating. The Department of Defense calculates it by comparing your full military retirement pay to your VA disability compensation. You receive whichever is higher, plus an additional CRSC supplement.

The exact formula varies based on your rank, years of service, and the percentage of your disability rating. A retiree with a 50 percent disability rating receives a different amount than one with a 100 percent rating. Similarly, a retiree who served 20 years receives a different calculation than one who served 30 years.

Because the calculation is individual, the Department of Defense publishes a rate table each year, but your specific payment requires the DoD to run your numbers. You cannot calculate it yourself without knowing the exact formula for your circumstances.

How to request CRSC

You request CRSC through the Defense Finance and Accounting Service (DFAS), which manages military retirement pay. You do not request it through the VA. DFAS has an online portal where you can submit a CRSC request, or you can mail a completed form to the address DFAS provides.

Before you request CRSC, you must already have a service-connected disability rating from the VA. If you do not have a VA rating yet, you need to file a claim with the VA first. Once the VA issues a rating decision, you can then request CRSC from DFAS.

DFAS will review your military retirement record and your VA disability rating, then calculate your CRSC payment. The process typically takes several weeks. Once approved, CRSC payments begin the month after approval and arrive on the same schedule as your military retirement pay.

CRSC versus other military disability payments

Military retirees with service-connected disabilities may also be may be able to access for Combat-Related Special Compensation (CRDP), which is similar to CRSC but applies only to disabilities rated as combat-related. The main difference is that CRDP has stricter rules about which disabilities may have access to, while CRSC covers any service-connected disability that meets the rating threshold.

A retiree cannot receive both CRSC and CRDP at the same time. If you are may be able to access for both, DFAS will calculate each one and pay you whichever results in the higher amount. You do not choose between them — the system automatically pays the larger benefit.

You may also receive Survivor Benefit Plan (SBP) payments if you elected that coverage during your military service. SBP is a separate program that provides monthly income to your family after you die. CRSC and SBP can be received together.

When CRSC payments stop

CRSC payments continue as long as you remain a military retiree and maintain a service-connected disability rating. If the VA reduces your disability rating below 50 percent (and you were not medically retired), your CRSC payment stops. If you lose your military retiree status — which is rare and typically happens only if a discharge is overturned — CRSC also stops.

If you die, CRSC payments stop. Your family may be may be able to access for other survivor benefits through the military or VA, but CRSC itself does not continue after your death.

Common reasons CRSC requests are delayed or denied

The most common reason a CRSC request is delayed is that the person does not yet have a VA disability rating. DFAS cannot process CRSC without a rating decision from the VA. If you submitted a CRSC request before your VA claim was decided, DFAS will wait until the VA rating arrives, then process your CRSC.

A CRSC request may be denied if your disability rating is below 50 percent and you were not medically retired. In that case, you do not meet the threshold for CRSC. If your rating later increases to 50 percent or higher, you can resubmit a request.

Occasionally, DFAS cannot locate your military retirement record or your VA rating in their system. This usually happens when there is a name change, a spelling variation, or a delay in the VA sending the rating to DFAS. Contacting DFAS directly with your military ID number can resolve this.

Frequently Asked Questions

Can I receive CRSC if I was medically retired with a low disability rating?

Yes. If you were medically retired — meaning the military discharged you due to disability before you completed 20 years of service — you may be may be able to access for CRSC regardless of your disability rating percentage. The rating just needs to be service-connected. Contact DFAS to confirm your specific situation.

Do I have to pay taxes on CRSC payments?

CRSC payments are taxable income. The Department of Defense will withhold federal income tax from your CRSC payment unless you request otherwise. You will receive a 1099-R form at the end of the year showing the amount paid and taxes withheld.

What happens if my VA disability rating changes after I start receiving CRSC?

If your rating increases, DFAS will recalculate your CRSC payment and you will receive the higher amount going forward. If your rating decreases below 50 percent (and you were not medically retired), your CRSC payment stops. The VA will notify DFAS of any rating change.

How long does it take to receive my first CRSC payment after approval?

CRSC payments typically begin the month after DFAS approves your request. The exact timing depends on when in the month your request is processed and when your military retirement pay is scheduled to be deposited. Most retirees see their first CRSC payment within four to eight weeks of submitting a complete request.

Can I request CRSC if I am still on active duty?

No. CRSC is only for military retirees. You must have separated from active duty and begun receiving military retirement pay. If you are still serving, you cannot request CRSC, even if you have a service-connected disability rating.