CRSC Key Factors

DoD has provided new Combat-Related Special Compensation (CRSC) guidance to the services, implementing the law change that extended CRSC eligibility to members with less than 20 years of service who were retired for medical reasons or under the Temporary Early Retirement Authority (TERA) during the 1990s force reduction.

The services began processing claims for the new eligibles on June 8. The process is not automatic. Eligible members with combat/combat-related disabilities must apply through their service CRSC office before they can receive any compensation.

Compensation amounts vary widely based on several key factors, including rank, years of service, DoD and VA disability ratings, and the portion of the disability that’s due to combat. Based on individual circumstances, retirees may receive CRSC awards that restore part or all their longevity-based retired pay. In certain other cases, they may see no change in their pay.

Here are a few key factors that will help you understand the CRSC guidance:

• Years of Service: the more service, the easier to qualify (more ret pay earned by service alone -- 2.5% of pay/yr)
• Relative VA vs. DoD disability rating: the bigger the difference, the easier to qualify for CRSC
• % disability due to combat: The more due to combat, the easier to qualify for CRSC
• Key issue: Any retired pay above 2.5% x YOS is still subject to offset by VA disability comp
• Multiple factors mean results not always predictable

Best advice to combat-disabled retirees: apply!

Example 1: E4 with 4 YOS and rated 100% from both DoD and VA (100% combat-related)

Example 2: O3 with 4 YOS and rated 70% from both DoD and VA (70% combat-related)

Example 3: O4 with 12 YOS and 40 % DoD rating, 80% VA rating (80% combat-related)

Example 4: O4 with 12 YOS and 40 % DoD rating, 100% VA rating (50% combat-related)

Example 5: O5 with 18 YOS and 40% DoD rating, 100% VA rating (100% combat-related)