When military service members retire, many expect their years of service and sacrifice to provide financial stability through retirement pay. However, veterans who also qualify for VA disability compensation often discover their retirement pay is offset or reduced. This is where Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC) come in. Both programs exist to ensure that disabled military retirees are not unfairly penalized by losing retirement income they’ve earned. Understanding the details of CRDP vs CRSC can help veterans maximize their benefits.

Why CRDP and CRSC Exist

Before these programs were introduced, retirees had to waive part of their military retirement pay in order to receive VA disability compensation. The logic was that receiving both would be “double dipping.” But this left many veterans—especially those with severe disabilities—with significantly reduced retirement checks.

Congress recognized this issue and created CRDP in 2004 and CRSC in 2002 to restore some or all of the retired pay lost to disability offsets. While both programs help, they work in different ways and eligibility requirements differ.

CRDP: Concurrent Retirement and Disability Pay

CRDP allows eligible military retirees to receive both military retirement pay and VA disability compensation without offset.

Eligibility for CRDP

• Must be a military retiree with at least 20 years of service (active duty or qualifying reserve service).
• Must have a VA disability rating of 50% or higher.
• No application is required—CRDP is automatically added to qualifying retirement pay.

Key Points About CRDP

• It is taxable income because it restores retired pay.
• It does not require proof of combat-related injuries—only VA disability rating and retirement eligibility.
• Payments are issued by the Defense Finance and Accounting Service (DFAS).

For many, CRDP provides straightforward financial relief by restoring retired pay alongside disability compensation.

CRSC: Combat-Related Special Compensation

CRSC is designed for veterans whose disabilities are directly related to combat, hazardous duty, or training for war.

Eligibility for CRSC

• Must be a military retiree with at least 20 years of service (or medically retired under Chapter 61 with fewer years).
• Must have a VA disability rating of at least 10% that is determined to be combat-related.
• Requires an application through your branch of service.

What Counts as Combat-Related?

• Injuries from armed conflict.
• Injuries during training exercises that simulate combat.
• Injuries from hazardous duty (like parachuting or demolition).
• Injuries caused by military equipment in combat situations.

Key Points About CRSC

• It is non-taxable income since it is considered special compensation, not restored retirement pay.
• Unlike CRDP, CRSC requires a formal application and documentation to prove the combat link.
• Veterans can receive retroactive payments if approved.

CRDP vs CRSC: The Main Differences

Both programs help retirees keep more of their deserved income, but they have important differences:

Feature	CRDP	CRSC
Eligibility	20+ years service, 50%+ VA rating	20+ years service (or medical retirement), 10%+ combat-related VA rating
Application	Automatic	Must apply
Tax Status	Taxable	Tax-free
Disability Link	Any service-connected condition	Must be combat-related
Payment Source	Restores retired pay	Special compensation (separate payment)

One key point is that veterans cannot receive both CRDP and CRSC at the same time. You must choose the one that provides the most financial benefit.

Choosing Between CRDP and CRSC

Each year, DFAS allows veterans who qualify for both programs to make a choice. The decision usually depends on:

• Which program provides the higher payment amount.
• Whether the tax-free nature of CRSC provides more value than CRDP’s taxable restoration.

For example, a retiree with a 70% VA rating from non-combat injuries may find CRDP is the better option. Meanwhile, a retiree injured in combat with a 30% rating might benefit more from CRSC since it is tax-free.

How Warrior Allegiance Helps

At Warrior Allegiance, we understand that navigating VA benefits, military retirement pay, and compensation programs can feel overwhelming. Our team—built by veterans, run by veterans—helps clients nationwide to understand their eligibility, gather documentation, and make informed decisions.

We operate with no upfront costs. Veterans only pay if our work creates an impact, and we offer flexible payment plans. If you are unsure whether CRDP vs CRSC is right for you, or need help with VA claims that may affect eligibility, we are here to guide you.

• Location: 9400 Viscount Blvd, El Paso, TX (with additional locations in San Antonio and Puerto Rico, plus remote support nationwide).
• Phone: (800) 837–1106
• Hours: Mon–Fri, 8:30am–5:00pm
• Get Started: warriorallegiance.com/getstarted/#journey

Final Thoughts

The bottom line is that CRDP and CRSC provide financial relief for retired veterans who have given so much to our country. The best choice depends on your service record, disability rating, and whether your condition is combat-related. By understanding the differences, you can ensure you are not leaving money on the table.

If you’re a retired veteran navigating these programs, Warrior Allegiance is ready to help you take the next step toward securing the benefits you’ve earned.