Concurrent Receipt (CRDP) vs CRSC: November Checklist for Retirees

For military retirees, November isn’t just about Thanksgiving; it’s the start of “Open Season” for your benefits. This is the time of year when DFAS (Defense Finance and Accounting Service) finalizes your pay for the next year, and it’s the perfect time to review your retirement and disability pay.

The biggest question for many retirees is how to handle the two types of “concurrent receipt”: CRDP and CRSC.

You can not receive both at the same time. Understanding how your medical documentation affects these programs is essential. Here is your November checklist to understand the documentation requirements for each.

What is the “VA Waiver”? (The Problem)

By law, you cannot be paid twice for the same service. Because VA disability pay is tax-free, you must “waive” an equal amount of your military retirement pay (which is taxed) to receive it.

• Example: Your monthly retirement pay is $2,000. Your VA disability pay is $700. You will receive $700 from the VA (tax-free) and $1,300 from DFAS ($2,000 – $700).
• The Result: Your total income doesn’t change, but your tax burden gets lower.

CRDP and CRSC are the two major exceptions to this rule.

What is CRDP (Concurrent Retirement and Disability Pay)?

• What It Is: An automatic program that restores your VA waiver. You get your full military retirement pay and your full VA disability pay.
• Who is Eligible:
  1. You are a 20+ year (“blue water”) retiree.
  2. You have a VA disability rating of 50% or higher.
• How it Works: It’s automatic. If you meet the criteria, DFAS should enroll you.
• Tax Status: Your retirement pay is taxed. Your VA disability pay is tax-free.

What is CRSC (Combat-Related Special Compensation)?

• What It Is: A special tax-free payment that reimburses you for the VA pay that was waived from your retirement check.
• Who is Eligible:
  1. You are a retiree (20+ years, TERA, or medical).
  2. You have a VA rating for disabilities that are “combat-related.” This includes injuries from combat, training, or “instrumentalities of war” (like exposure to Agent Orange or burn pits).
• How it Works: Enrollment requires providing medical documentation of combat-related injuries. This is not automatic.
• Tax Status: The entire CRSC payment is 100% tax-free.

November Review: Understanding CRDP vs. CRSC Documentation

For most retirees, this determination is based on the interaction between service history and medical ratings.

• If your VA rating is below 50%, CRSC is the relevant program for combat-related conditions.
• If your VA rating is 50% or higher and your disabilities are not combat-related, CRDP is the relevant program.

When you are a 20+ year retiree, rated 50% or higher, and some or all of your disabilities are combat-related, you should review how your clinical documentation aligns with each program’s requirements.

1. Check Your DFAS “Open Season” Letter: DFAS will mail you a letter (or you can check MyPay) that outlines your options for the next year. It will show you the dollar amounts for CRDP vs. CRSC.

2. Compare the Dollar Amounts:

• CRDP: The amount is based on your full VA disability payment.
• CRSC: The amount is only for the disabilities that are clinically documented as combat-related.
  • If your VA rating is 100% ($3,900) but only 30% ($550) of that is documented as “combat-related,” your CRSC payment will reflect the 30% rating level.

3. Analyze the Taxable Difference:

• Scenario: You’re a 20-year retiree at 100% VA ($3,900), and 80% ($2,200) of it is combat-related.
• CRDP Option: You receive your full retirement pay (taxed) + $3,900 from the VA (tax-free).
• CRSC Option: You receive your full retirement pay (taxed), minus the $3,900 VA waiver. Then you get a $2,200 CRSC payment (tax-free).
• The Math:
  • CRDP provides $3,900 in tax-free benefit.
  • CRSC provides $2,200 in tax-free benefit.
  • Analysis: In this mathematical scenario, CRDP results in a higher net payment based on the documented ratings.

CRSC is often applicable for retirees with documented combat-related ratings under 50% or for “Chapter 61” medical retirees with less than 20 years, who are not eligible for CRDP.

Review your pay, check your is combat related special compensation taxable status (it’s not!), and ensure your clinical records accurately reflect your symptoms and functional limitations. We provide medical evaluations and nexus letters based solely on clinical judgment to document these facts; our fees are for medical services only, not contingent on claim outcomes, and we comply fully with SB 694.

*This article was reviewed and updated for compliance on February 17, 2026.