Combat-Related Special Compensation (CRSC)

The CRSC program aims to offer compensation to eligible retired veterans who have sustained "combat-related" injuries within the range of a 10% to 100% disability rating.

Its purpose is to address the loss of income resulting from the inability of veterans to receive disability compensation from both the DOD and the VA.

Unlike CRDP (Concurrent Retirement and Disability Pay), CRSC benefits are accessible to service members who retire with 20 or more years of creditable service and those with less than 20 years.

By replacing deducted VA disability compensation from retired pay, CRSC assists retired veterans and retroactively provides tax-free monthly payments to reinstate military retired pay.

Eligibility Criteria For CRSC

To be eligible for combat-related special compensation, a veteran must:

• Receive military retired pay, either based on longevity or medical reasons.
• Experience a reduction in military retired pay due to VA disability payments (VA waiver).
• Possess a VA-rated disability of 10% or higher. Additionally, veterans must have at least one VA disability categorized as "combat-related."

And they should possess at least one of the below "combat-related" VA disabilities:

• Simulating War (SW): Injuries that arise from military combat training.
• Hazardous Service: Injuries or diseases that occur while participating in hazardous service.
• Instrumentality of War (IW): Injuries sustained while operating or interacting with military-specific vehicles, weapons, or devices during their intended use (e.g., a knee injury while working with a rotating tank turret during a field training exercise).
• Armed Conflict (AC): Service members injured while engaged with hostile forces.
• Purple Heart: Disabilities resulting from injuries for which the Purple Heart medal was awarded.

To be eligible for CRSC, retired veterans must provide evidence of a disability rating of 10% or higher from the VA for a combat-related injury.

They must also demonstrate a reduction in their military retirement pay resulting from accepting VA benefits, known as the VA Waiver. Meeting these requirements is crucial for qualifying for CRSC benefits.

Combat-Related Conditions Or Injuries

For a veteran to be eligible for CRSC, the qualifying conditions or injuries must be combat-related.

The following disabilities are recognized as combat-related for CRSC purposes:

• Injuries directly resulting from armed conflict;
• Injuries incurred through an instrumentality of war;
• Injuries sustained in the performance of a duty under conditions simulating war;
• Injuries obtained while engaged in harmful service; and
• Injuries for which a veteran was awarded the Purple Heart.

Furthermore, disabilities that are service-connected based on a presumption of service connection will be deemed combat-related.

Additionally, certain secondary conditions may be considered combat-related if the primary service-connected disability is recognized as combat-related.

How To Apply For CRSC?

CRSC is not obtained through the VA as it is not considered a VA benefit. Instead, veterans seeking CRSC eligibility must apply directly to their respective military service branch, which has the authority to determine their eligibility.

The application process for CRSC involves completing a form known as DD Form 2860 and submitting it for consideration.

To support their application, veterans must provide documentation substantiating their eligibility based on the factors above.

This documentation may include:

• Retirement orders;
• A 20-year letter or statement of service;
• Relevant pages from VA or service medical records;
• Purple Heart Citations; and
• DD214.

Once a determination is reached, the veteran will receive written notification regarding the decision.

In the case of CRSC approval, the service branch will also notify the Defense Finance and Accounting Service (DFAS) to audit the veteran's payments. This audit aims to determine if the veteran is eligible for a retroactive CRSC award.

If DFAS determines that a retroactive award is warranted, the veteran can anticipate receiving a payment covering the eligibility period as indicated in the award letter.