For many veterans, navigating the VA and Department of Defense (DoD) systems can feel overwhelming. Between retirement benefits, disability compensation, and special programs, it’s not always clear what you’re entitled to—or how different benefits interact with each other. One program that often raises questions is Combat-Related Special Compensation (CRSC). CRSC is designed to ensure that military retirees with combat-related disabilities are not penalized financially when it comes to their retirement and VA disability compensation. If you’ve ever wondered whether CRSC applies to you, how to apply, or how it works alongside your existing benefits, this guide will break it down step by step.

What Is Combat-Related Special Compensation?

Combat-Related Special Compensation (CRSC) is a form of tax-free monthly compensation for military retirees who have combat-related disabilities. It was created to fix an issue known as the “VA offset.” Traditionally, when a retiree received both military retirement pay and VA disability compensation, their retirement pay was reduced by the amount of VA compensation. CRSC provides a way to restore that lost retirement pay when the disability is directly related to combat. Essentially, it’s financial recognition for the sacrifices made in combat service.

Who Qualifies for CRSC?

Eligibility for CRSC is very specific. To qualify, you must meet all of the following:

1. Military Retiree Status You must be retired from the U.S. Armed Forces (regular retirement, Chapter 61 medical retirement, or Temporary Early Retirement Authority (TERA)).
2. VA Disability Rating You must have a VA disability rating of at least 10%.
3. Combat-Related Connection The disability must be officially determined to be combat-related. This includes injuries from:
   • Direct combat
   • Armed conflict
   • Hazardous duty (such as parachuting or demolitions)
   • Training that simulates war
   • Instrumental conditions related to combat (such as exposure to Agent Orange or Gulf War environmental hazards, depending on circumstances)
4. Application Process CRSC is not automatic. Veterans must apply directly through their branch of service.

How Is CRSC Different from Concurrent Retirement and Disability Pay (CRDP)?

Both CRSC and CRDP (Concurrent Retirement and Disability Pay) are programs designed to address the VA offset issue, but they work differently.

• CRDP: Restores retirement pay for veterans with a VA disability rating of 50% or higher. It is taxable and automatic—you don’t need to apply.
• CRSC: Restores retirement pay specifically for combat-related disabilities. It is tax-free, but you must apply and provide supporting evidence.

Many veterans qualify for both but must choose one each year during the DoD open season. Since CRSC is tax-free, it can sometimes be more financially beneficial, depending on your situation.

How Much Will You Receive?

The amount you receive from CRSC depends on:

• Your years of service
• Your disability rating
• The portion of your disability deemed combat-related

Importantly, CRSC will never exceed the amount of retirement pay you waived to receive VA disability compensation. Each branch of service reviews your records and makes the determination.

Applying for CRSC

Here’s a step-by-step overview of the application process:

1. Gather Documentation Collect your VA rating decisions, medical records, service records, and any other documents that prove the combat-related nature of your condition.
2. Complete DD Form 2860 This is the official application form for Combat-Related Special Compensation.
3. Submit to Your Branch of Service Each branch has its own CRSC office. You’ll need to send your application package to them for review.
4. Wait for Determination The review process can take several months. If approved, payments are typically retroactive to the date you first became eligible.

Common Misconceptions About CRSC

• “CRSC is automatic if I have a combat injury.” False. You must apply and provide evidence.
• “Any service-connected disability qualifies.” Not true. Only disabilities directly tied to combat-related activities are eligible.
• “CRSC replaces VA compensation.” Incorrect. CRSC is in addition to your VA disability pay; it restores the retirement pay offset.

Why CRSC Matters

For many veterans, CRSC can mean hundreds—or even thousands—of dollars back in their pockets every month. Beyond the financial benefit, CRSC represents recognition of the unique sacrifices tied directly to combat service. It ensures that retirees aren’t penalized for choosing to serve in the most dangerous conditions.

Getting Help With Your Claim

Applying for CRSC can feel complicated, especially when it comes to proving the combat connection of your disability. That’s where support can make all the difference. At Warrior Allegiance, we’re veterans helping veterans. Our team understands the paperwork, timelines, and documentation requirements, and we work alongside you to make sure your case is as strong as possible. We don’t charge upfront fees. Instead, our pricing is based on the results we help you achieve, and we offer flexible payment plans to meet veterans where they are. Whether you’re applying for CRSC, filing an initial VA claim, or appealing a denial, we’re here to support you every step of the way. Ready to get started? Visit our Get Started page or call us at (800) 837–1106. Our offices in El Paso and San Antonio help veterans nationwide.

Final Thoughts

Combat-Related Special Compensation (CRSC) is a critical program that ensures retired veterans with combat-related disabilities receive the compensation they deserve. While it requires an application and detailed documentation, the financial and symbolic benefits can make a real difference for veterans and their families. If you think you may qualify for CRSC, take the next step today. Support is available, and you don’t have to navigate the process alone.