Home › Benefits › CRDP vs. CRSC
Direct answer: CRDP gives back the retired pay withheld for VA disability pay if your VA rating is 50% or more; it's automatic and taxable. CRSC is tax-free pay for combat-related disabilities rated 10% or more; you apply to your branch. You can't get both; if eligible for both, you choose each January.
By the numbers: Effective on January 1, 2014, (with the exception of members who retired under Chapter 61 for disability who are subject to the limitations explained below) members who meet the eligibility requirements above may receive military retired pay, in full, concurrently with VA Disability Compensation. Source: DFAS: Concurrent Military Retired Pay and VA Disability Compensation (updated July 17, 2023)
“CRDP is a restoration of your retired pay, not a separate entitlement. Therefore, if your retired pay is taxable so is any CRDP payments you receive.” — DFAS: Is it taxable? (updated Jan. 27, 2022)
Updated 2026-10-17
CRDP (Concurrent Retirement and Disability Pay) restores retired pay that's withheld because you get VA disability pay. It needs a VA rating of 50% or more, starts automatically and is taxed like retired pay. CRSC (Combat-Related Special Compensation) pays the VA amount for combat-related disabilities only, needs 10% or more, must be approved by your branch, and is tax-free (DFAS; 10 U.S.C. 1414 and 1413a).
No. The law says you may receive one or the other, but not both (10 U.S.C. 1414(d)). If you qualify for both, DFAS mails you a letter with both amounts and you can switch during the annual open season in January (Jan. 1-31, 2026 was the last one). If you do nothing, you stay in the same program.
Retirees entitled to retired pay and VA disability pay with a combined VA rating of at least 50%. Medical (Chapter 61) retirees need 20 or more years of service, and they get back only up to what their years of service alone would pay. Medical retirees with less than 20 years can't get CRDP (DFAS; 10 U.S.C. 1414(b)).
No. DFAS says CRSC payments are non-taxable and are paid separately from retired pay. CRDP is a restoration of retired pay, so it's taxable if your retired pay is taxable. VA disability pay itself is tax-free either way.
Send DD Form 2860 to your branch of service (Army HRC 866-281-3254, Navy/Marine Corps 877-366-2772, Air Force/Space Force 800-525-0102) with documents such as VA rating decisions, retirement orders, DD-214 and Purple Heart citations. New VA disabilities need a reconsideration request; CRSC doesn't go up automatically (DFAS).
A bill (H.R. 2102 / S. 1032) that would let medically retired veterans with combat-related disabilities, including those with under 20 years, get full retired pay and full VA disability pay. As of Oct. 17, 2026 it is not law: H.R. 2102 has 340 House cosponsors and S. 1032 has 80, and a House discharge petition reached 218 signatures on Sept. 15, 2026, so a House vote could come after members return in November.
DFAS audits your account when VA ratings change. CRDP retro pay can go back as far as Jan. 1, 2004; CRSC as far as June 1, 2003, but disability retirees with less than 20 years are limited to Jan. 1, 2008. Both can be limited by your retirement date and when your rating changed (DFAS).
As of Oct. 17, 2026 · DFAS · 10 U.S.C. 1413a and 1414 · VA 2026 rates · Congress.gov
VA rating 50%+? CRDP gives back your full retired pay automatically (taxable). Combat-related disability 10%+? CRSC pays tax-free, but only if you apply to your branch. You can't get both: if you qualify for both, DFAS lets you switch each January (Jan. 1-31). Medical retirees with under 20 years get only CRSC, and it's capped.
The math:
Sources: DFAS CRDP · DFAS CRSC · DFAS open season FAQs
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| CRDP | CRSC | |
|---|---|---|
| Who it's for | Retirees with a VA rating of 50% or more (any cause) | Retirees with combat-related disabilities rated 10% or more |
| How much | Restores the retired pay withheld for VA pay (full for years-of-service retirees) | VA pay for the combat-related disabilities only, up to the amount withheld |
| Taxes | Taxable if your retired pay is taxable | Tax-free |
| How to get it | Automatic: DFAS uses VA data (DD Form 827 if it's missing) | Apply to your branch with DD Form 2860 |
| Medical (Chapter 61) retirees | Only with 20+ years; limited to the years-of-service amount | Any years; limited so retired pay + CRSC stay within the years-of-service amount |
| Former spouse (USFSPA) | Retired pay rules apply; restored pay can raise former-spouse payments | Not subject to USFSPA division (alimony/child support garnishment still applies) |
| SBP and allotments | Deducted from retired pay as usual | SBP comes out of CRSC if retired pay is too small; allotments can't |
| Retro pay can go back to | Jan. 1, 2004 | June 1, 2003 (Jan. 1, 2008 for disability retirees under 20 years) |
Sources: DFAS CRDP · DFAS CRSC · DFAS open season FAQs · DFAS taxes · 10 U.S.C. 1414 · 10 U.S.C. 1413a.
| Example | No CRDP/CRSC | With CRDP | With CRSC |
|---|---|---|---|
| Years-of-service retiree, $3,059.00 retired pay (E-7 at 20), VA 70% alone ($1,808.45), 40% combat-related | $3,059.00 | $4,867.45 | $3,854.84 |
| Medical retiree, 12 years, $5,000 base: $3,000.00 retired pay (60% military rating), VA 80% alone ($2,102.15), all combat-related | $3,000.00 | not eligible | $3,602.15 |
Facts and arithmetic only. VaultRubric isn't DFAS, VA or your branch, and this isn't legal or tax advice. DFAS (800-321-1080) and your branch decide eligibility and amounts; VA (800-827-1000) decides ratings.
CRDP (Concurrent Retirement and Disability Pay) restores retired pay that's withheld because you get VA disability pay. It needs a VA rating of 50% or more, starts automatically and is taxed like retired pay. CRSC (Combat-Related Special Compensation) pays the VA amount for combat-related disabilities only, needs 10% or more, must be approved by your branch, and is tax-free (DFAS; 10 U.S.C. 1414 and 1413a).
No. The law says you may receive one or the other, but not both (10 U.S.C. 1414(d)). If you qualify for both, DFAS mails you a letter with both amounts and you can switch during the annual open season in January (Jan. 1-31, 2026 was the last one). If you do nothing, you stay in the same program.
Retirees entitled to retired pay and VA disability pay with a combined VA rating of at least 50%. Medical (Chapter 61) retirees need 20 or more years of service, and they get back only up to what their years of service alone would pay. Medical retirees with less than 20 years can't get CRDP (DFAS; 10 U.S.C. 1414(b)).
No. DFAS says CRSC payments are non-taxable and are paid separately from retired pay. CRDP is a restoration of retired pay, so it's taxable if your retired pay is taxable. VA disability pay itself is tax-free either way.
Send DD Form 2860 to your branch of service (Army HRC 866-281-3254, Navy/Marine Corps 877-366-2772, Air Force/Space Force 800-525-0102) with documents such as VA rating decisions, retirement orders, DD-214 and Purple Heart citations. New VA disabilities need a reconsideration request; CRSC doesn't go up automatically (DFAS).
A bill (H.R. 2102 / S. 1032) that would let medically retired veterans with combat-related disabilities, including those with under 20 years, get full retired pay and full VA disability pay. As of Oct. 17, 2026 it is not law: H.R. 2102 has 340 House cosponsors and S. 1032 has 80, and a House discharge petition reached 218 signatures on Sept. 15, 2026, so a House vote could come after members return in November.
DFAS audits your account when VA ratings change. CRDP retro pay can go back as far as Jan. 1, 2004; CRSC as far as June 1, 2003, but disability retirees with less than 20 years are limited to Jan. 1, 2008. Both can be limited by your retirement date and when your rating changed (DFAS).
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