Combat-Related Special Compensation (CRSC) provides military Retirees a tax-free monthly compensation that is intended to replace some or all of the retired pay that is withheld due to receipt of VA compensation. CRSC is payable for disabilities that are found to be related to combat, including disabilities that were incurred in actual combat, while engaged in hazardous service, in the performance of duty simulating war, training for combat or as a result of an instrumentality of war. The amount of CRSC payable is directly related to the evaluation(s) assigned to combat-related disabilities, but cannot exceed the amount of withheld retired pay. Retirees cannot receive benefits simultaneously under both, CRSC and Concurrent Retirement and Disability Payments (CRDP), programs.

DFAS began deducting Survivor Benefit Plan (SBP) premiums from Combat-Related Special Compensation (CRSC) when retired pay is not sufficient to cover the full amount of the premiums in April 2018. This deduction is due to a change in the law which requires DFAS to deduct SBP premiums from CRSC. Click here for more information.

Army Retirees (including chapter 61 Retirees) are qualified to receive CRSC if they have a Combat-Related VA service-connected disability rating of 10% or higher and are drawing retirement pay which is reduced by a VA waiver.

In addition, the 2008 National Defense Authorization Act (NDAA) expands CRSC eligibility to cover those who were medically retired under Chapter 61, Temporary Early Retirement Act (TERA), and Temporary Disable  Retirement List (TDRL) Retirees with less than 20 years of service. Medical and TERA Retirees must still provide documentation that shows a causal link between a current VA disability and a combat related event.

Note: There is a Six Year Statute of Limitations: CRSC is subject to the six-year statute of limitations, 31 U.S.C., Section 3702(b). In order to receive the full retroactive CRSC entitlement, you must file your CRSC claim within six years of the date of any VA rating decision that could potentially make you eligible for CRSC or the date you become entitled to retired pay, whichever is more recent. If you file your claim more than six years after initial eligibility, you will be restricted to six years of any retroactive entitlement. Any questions relating to the payment of this claim must be addressed to Defense Finance and Accounting Service (DFAS) who is the pay authority for CRSC.

*The six-year statute of limitations extends backwards from the original date of application where the retiree meets all eligibility requirements.

CRSC Programs: The Combat-Related Special Compensation (CRSC) program was enacted by Congress on 2 December 2002. In accordance with specific guidance, the CRSC program provides compensation for certain Uniformed Service Retirees with combat-related disabilities. The original CRSC program (CRSC I) began 1 June 2003 for active duty Retirees with 20 years of service. The CRSC II program was created 1 January 2004 to offer compensation for a larger group of combat-disabled Retirees, including reserve Retirees at the age of 60.

Calculating CRSC:

(1) Subtract each disability percent from 100% to obtain the remaining efficiencies

(2) Multiply the remaining efficiencies together

(3) Subtract the result from 100%

(4) Round to the nearest 10% (round up for 5% or above, down for 4% and below) to determine the combined disability rating.

Example Calculation: Assuming a retired Service member has three disability ratings of 40%, 30% and 20%, using the above formula results in a combined disability of 70%, as follows:

(1) 100% - 40%=60%; 100% - 30%=70%; and 100% - 20%=80%

(2) 60% x 70% x 80% = 34%

(3) 100% - 34% = 66%

(4) 66% rounds up to a 70% combined disability.

Note: Any questions relating to the payment of CRSC claims must be addressed to Defense Finance and Accounting Service (DFAS) who is the pay authority for CRSC.

Special rules regarding chapter 61 Retirees: Disability Retirees (even those with less than twenty years of service) are eligible for CRSC, but the rate of payment must be reduced by the difference between retired pay based upon disability and retired pay for years of service.

Applying for CRSC: DD Form 2860 must be submitted to the Army CRSC office in Ft. Knox, Kentucky for an eligible retiree to be considered along with the following documents:

Essential Documents:

• All available DD 214s/215s
• All complete Department of Veterans Affairs (VA) Rating Decisions/ VA Physician Reports/ VA Medical Records (including the VA letter, the actual VA rating decisions and the VA code sheets).

Highly Recommended Documents:

• Medical Records (Medical documents from the time of the Injury. Please do not send all of your medical records.)
• Award Certificates and/or narratives
• Military Medical Treatment Facility Records - Must be from the time of injury occurred and must clearly show a combat related event
• Military Orders
• DA 638 Award Recommendation
• DA 4187

Suggested Documents:

• Military Physical Examinations
• Military Retirement Physicals
• Physical Evaluation Board Proceedings
• Clinical Records or Notes
• Western Union Casualty Notification Telegrams
• Officer Record Brief (ORB)
• Enlisted Record Brief (ERB)

The completed CRSC claim can be sent to the CRSC office in two ways:

1. Mail it:
Department of the Army
U.S. Army Human Resources Command
ATTN: AHRC-PDR-C(CRSC), Dept 480
1600 Spearhead Division Avenue
Fort Knox, KY 40122-5402

2. Fax: 1-502-613-9550

The Army has the authority to determine eligibility of combat-related disabilities and authorize payments. Payment authorizations will be sent directly to Defense Finance and Accounting Service (DFAS). The application process is the same for both the CRSC I, CRSC II and Chapter 61/TERA programs with the only difference being the eligibility requirements and retroactive payment dates. It is important to note that CRSC is not a VA program, and does not directly handle disbursement of VA or CRSC payments.

If you have questions about the CRSC claim process, contact the CRSC office at usarmy.knox.hrc.mbx.tagd-crsc-claims@army.mil or call  1-888-ARMYHRC (1-888-276-9472).

Note: If you are receiving Concurrent Retirement and Disability Pay (CRDP), you cannot receive both CRDP and CRSC payments, per Public Laws 107-314 and 108-136. If CRSC is more beneficial than CRDP, DFAS will make this election for you. CRSC payments will be made in the same manner as your retired pay (i.e., EFT or check). For more information on CRDP, please review the DFAS website at: https://www.dfas.mil/retiredmilitary/disability/crdp/.

For more information on CRSC, including specific eligibility requirements, please visit the CRSC webpage maintained by Army Human Resources (HRC) Command:
https://www.hrc.army.mil/content/CRSC%20(Combat-Related%20Special%20Compensation)

CRSC Webpage maintained by DFAS: 
https://www.dfas.mil/retiredmilitary/disability/crsc/

DoD Financial Management Regulation:
https://comptroller.defense.gov/Portals/45/documents/fmr/current/07b/07b_63.pdf