Combat-Related Special Compensation (CRSC)

What Is CRSC?

Combat-Related Special Compensation (CRSC) is an amount of money that a retired combat veteran receives each month in addition to whatever benefits they are receiving from the military and the VA. This is an exception to the general rule that prohibits a veteran from receiving payment from both the Department of Defense and the VA.  

The amount of the payment is based on several factors including; years of service, retired pay base, gross retirement pay, and combined disability rating of combat related service-connected conditions. Also, note that CRSC payments are not taxed and do not impact VA compensation, retirement pay offsets, or SBP premiums.

How Long Does CRSC Last?

CRSC is a lifetime benefit. As long as your eligibility conditions remain the same, you’ll continue to receive CRSC. However, if the disability rating or other eligibility factors change, your CRSC could be adjusted or terminated. 

CRSC and Compensation Programs Explained by an Attorney

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CRSC Eligibility Requirements

CRSC is available to eligible military retirees for certain injuries or conditions that are combat related. All of the following  requirements must be met:

• the veteran must be entitled to military retirement pay
• the veteran must have a disability rated by the VA at 10% or more
• the veteran currently has DoD retirement payments reduced by the amount of the VA disability payments

Who Is Eligible for CRSC?

To qualify for CRSC, you must be a military retiree. This includes: 

• Veterans with 20 or more years of  service in the military, National Guard or Reserve 
• Veterans who  retired due to medical reasons with a disability rating of at least 30% under Chapter 61 
• Veterans on the Temporary Disability Retirement List (TDRL) 
• Veterans on the Permanent Disability Retired List (PDRL) 
• Veterans who have taken the Temporary Early Retirement Authority (TERA) option

A deceased veteran is not eligible for CRSC. However, if a veteran applied for CRSC benefits before their death, the veteran’s estate is entitled to the CRSC retroactive benefits that would have been paid to the veteran, in addition to DIC and other survivor benefits paid to the family after a veteran’s death.

What Disabilities Are Eligible?  

Only a military retiree with a combat-related disability rated 10% or higher is eligible for CRSC. The VA assigns disability ratings based on the severity of the condition. 

When Do Conditions and Injuries Qualify as Combat Related?

• Engaged in armed conflict (in combat or during an occupation or raid), or  
• Engaged in hazardous duty (like demolition, flying, or parachuting), or 
• Participating in war simulation activities (like live fire weapons practice or hand-to-hand combat training), or 
• Exposed to instruments of war (like a military vehicle, weapon, or chemical agent), or 
• Engaged in an activity and received the Purple Heart for it

How Is Combat-Relatedness Verified? 

Combat-related status is determined by the respective Service Branch, not the VA. Evidence that proves your disability or injuries as the result of combat-related events include: 

• Service medical records 
• Official service records 
• Decorations and award recommendations 
• Retirement records 
• Your VA decision notice 
• Your DD214

Keep in mind that a disability service-connected due to a presumption (e.g., exposure to Agent Orange) is not automatically combat-related. It must still meet a combat-related criterion such as “instrumentality of war” or “hazardous service”. 

Some secondary conditions may qualify as combat-related if the primary service connected disability that caused or exacerbated them was considered combat-related.

CRSC Retroactive Payment and Effective Dates

A veteran can submit an application for CRSC at any time, there is no deadline. However, be aware that CRSC is subject to a 6 year statute of limitations for retroactive pay. This means that, in order to receive full retroactive CRSC entitlement, the veteran must file their CRSC application within 6 years of the date of any rating decision that would potentially make them eligible for CRSC, or within 6 years of the date they become entitled to retirement pay, whichever is more recent. 

If the veteran was eligible for CRSC as of the program’s effective start date in June 2003, benefits can be paid back to this date. If the veteran became eligible for CRSC after June 2003, then the retroactive benefits will be calculated from the effective date of when the veteran became legally entitled to these benefits. 

The effective date is generally the date when the Department of Defense (DoD) received your CRSC application or the date of becoming eligible for CRSC, whichever is later. In certain cases, such as when a veteran is granted combat-related disability after retirement, the effective date may be adjusted to January 2008 or the date of retirement, whichever is later. This will affect the total amount of retroactive pay. 

If you have been eligible for CRSC for some time and haven’t yet applied, you could be leaving substantial benefits unclaimed. So, it’s often beneficial to apply sooner rather than later to maximize your potential retroactive pay. 

Reconsideration claims can also result in retroactive adjustments, subject to the same 6-year rule. 

The following is a table that shows different effective dates and the corresponding eligibility criteria: 

How to Apply for CRSC

To file for CRSC, you must complete the Department of Defense Form 2860 (DD Form 2860). This is the standard form for the CRSC application and it varies depending on your military branch. Make sure you choose the correct version of the form for your branch. 

Along with the completed application form, you need to also submit any DD 214s/215s and other supporting documents that can prove eligibility for CRSC. 

Supporting Documents

• Purple Heart award, if applicable 
• Medical records documenting your combat-related injury or disability 
• VA rating decisions 
• Retirement orders  
• Documentation of Combat-Related Events 
• Any other documents that could help establish your eligibility for CRSC

Submission 

Once you’ve filled out the form and gathered all necessary documents, the last step is to submit your application. Instructions for mailing your application will be provided on the form itself. Be sure to follow these instructions carefully to avoid any delays in processing your application. 

Denied CRSC? 

Not all applications for Combat Related Special Compensation (CRSC) are accepted upon first submission. If your initial claim is denied, don’t lose hope; you can request a reconsideration or appeal. This process can help correct errors or oversights and might result in approval of your claim. 

Requesting Reconsideration 

If your application for CRSC has been denied, the first step is to request a reconsideration. You can also request reconsideration after initial CRSC approval if there’s new evidence showing a greater percentage of disabilities as combat-related. 

Forms for Reconsideration 

Depending on your branch of service, the form you need to submit for reconsideration varies: 

• Army: Use CRSC Form 12e. 
• Navy/Marines: Use the CRSC Reconsideration-Navy form. 
• Air Force: Instructions are not typically provided on a form. Instead, call the Air Force Board for Correction of Military Records for guidance. 

How to Appeal 

If your request for reconsideration is also denied, you can appeal the decision. To do this, use DD Form 149, Application for Correction of Military Record. This form allows you to appeal to the Board for Correction of Military Records for your respective branch of service. 

Make sure you thoroughly address the reasons for denial given in the initial decision letter, and submit any additional evidence you feel strengthens your case. A lawyer is particularly valuable here because BCMR decisions are legal and factual reviews, and advocacy must meet a higher standard than the initial CRSC review.