Setting the Record Straight on CRSC and CRDP

Jan 14 2011

Published by at 1:47 pm under Military Benefits,VA Benefits

CRDP and CRSC are confusing programs. Our experience from talking regularly with uniformed members is that several misconceptions routinely pop up. We will address these common misconceptions.

But to start, a little history follows to help build a more complete understanding of the concurrent receipt programs. We take literary license with the legal references to provide a clearer illustration of how things work. This also puts the topics in the context of our discussions with service members.

Original ‘concurrent receipt’ law stipulated you cannot be paid twice for the same disability/service. This law still applies in some cases—more on this later. If you receive Service retired pay and VA comp, the VA comp is subtracted from your Service retired pay in the form of the ‘VA waiver.’ You ‘waive’ your Service retired pay to receive VA comp.

MOAA fought for legislation that would stop concurrent receipt laws from denying a Service member’s retired pay that was vested in their years of service. After all, you earned that pay through years service. VA comp should not be deducted from vested Service time since the VA pay is specifically designated as disability compensation. From this lobbying, new concurrent receipt legislation was passed and CRSC and CRDP were born. As the result, CRSC and CRDP restore the Service retired pay vested through years of service that VA comp denied you. This is a key point of concurrent receipt; concurrent receipt does not restore disability compensation from the Service. It restores longevity retired pay. Now we bust some misconceptions.

#1. There is a strong belief among people that CRSC is a new form of pay, a third paycheck if you will, above and beyond any Service retired pay and VA comp amounts. CRSC is a third form of pay but it is not an amount in addition to Service retired pay and VA disability compensation. While technically it comes to you as a third pay check, it is pay that restores your Service retired pay for all or part of the VA Waiver amount being deducted from Service pay. CRDP on the other hand is not a third form of pay. CRDP is the return of Service retired pay by decreasing the VA Waiver amount in your Service retired pay.

#2. CRSC is a “restoration” of Service retired pay. To “restore” Service retired pay implies two things. First, you were denied Service retired pay (through a VA Waiver) so it has to be “restored.” Second, the amount being restored can’t be greater than the original amount of Service retired pay denied. You can’t “restore” what was never denied in the first place. You can’t receive CRDP/CRSC retroactive pay unless you were denied Service retired pay in the past. This usually comes up as an issue when someone has been receiving CRDP for a time and later is awarded CRSC. If you were receiving CRDP, your retired pay was already being restored. The subsequent award of CRSC won’t get you back pay unless your CRSC amount restores more than you were already having restored in the past.

#3. Concurrent receipt restores Service retired pay so let’s carefully consider the phrase “Service retired pay” as it pertains to CRSC/CRDP. “Service retired pay” is pay that you earned through longevity; your time served. This is a big issue for members who were medically retired because you may have a Service retired pay amount that is more than the amount you earned based on your longevity.

Example: a person with a longevity retirement earns retired pay at:

  • Years served X 2.5% X your base pay at retirement or high-3.

However, you medically retired folks may have a Service disability rating (not your VA rating) that makes your retired pay at retirement greater than the amount of pay based on the longevity formula just explained. With 20 years of service, your longevity retired pay is 50% of base pay. But a medical retirement with a Service disability rating of 60% gets a 60% pay out for retirement even if the service time is 20 years. Everything above 50% is considered a form of disability pay.

So CRSC/CRDP restores ‘Service retired pay’ which is only the retired pay that’s based on longevity. All the Service retired pay you receive above the amount due to time served is considered disability pay, not ‘Service retired pay’ and Service disability pay is not restored by any form of concurrent receipt.

In other words, the original concurrent receipt laws that state you can’t be paid twice still apply when it comes to disability pays. If the VA pays you for your disabilities, you can’t receive Service disability pay at the same time.

#4. The CRSC Glitch. (UPDATE: THE GLITCH IS FIXED. THIS NO LONGER APPLIES) For you members medically retired with less than 20 years service, you have a different issue to contend with. First, your CRSC amount is limited to your longevity portion of your retired pay. For many of you, this longevity portion is a small amount when compared to your total Service check. Next, you are limited in the amount of CRSC pay you receive to the amount of CRSC pay that is above the amount you receive for the Service disability portion of your Service retried pay. Here’s an example:

  • Total Service retired pay (disability and longevity pay) $2000
  • Service portion based on longevity $500
  • Service portion based on disability $1500
  • CRSC pay you are entitled to $800
  • Actual CRSC pay (Entitled CRSC – Service disability) $0

This effect is known as the CRSC glitch. It’s a problem in how the CRSC law explains the pay formula, as shown above. Technically, everyone should get either all their entitled CRSC pay or CRSC up to the amount of Service retired pay based on their longevity. This is a problem MOAA is fighting to fix.

#5. Your CRSC check will equal your VA comp amount. Not necessarily so. VA comp is based on your total disabilities regardless of whether the disabilities were the result of combat. CRSC pays only the portion of your total disabilities that were directly related to combat. It is not unusual for a CRSC rating and the resulting payment to be smaller than the VA comp amount. This means you will continue to have a VA waiver amount in your Service retired pay.

#6. CRSC is always a better payment than CRDP. Not so. As stated in #5, CRSC is limited to combat injuries and as such that can be a significant limiting factor on the amount paid. CRDP is not limited to combat related disabilities so the amount is based on your total VA comp (plus the issue raised in #3). The combat related nature of CRSC is a basis behind its tax-free status while CRDP is taxable. Your CRDP amount may be larger to the point that even though it’s taxable, it still leaves more money in your pocket.

There may be times the amount of pay under CRDP is large enough that even after taxes it could be greater than a limited CRSC tax-free check. This is why your pay agency allows you a chance to select which version of pay you want during the ‘open season’ each December. As CRDP continues to phase-in over the years (until 2014), one year your CRDP amount may provide you the greatest take-home pay.

#7. “I get CRSC but a VA waiver is still deducted from my Service retired pay. Where is my concurrent receipt?” This misunderstanding is partially based in #1. Some folks think CRSC is a payment above and beyond all other pays. CRSC and CRDP are both forms of ‘concurrent receipt’ (used in the context of the phone calls). As such, a member can only receive one form of concurrent receipt or the other but not both simultaneously. The confusion seems to also originate in the manner in which the CRDP or CRSC is paid.

CRDP is paid by being reinserted back into your Service retired pay. You’ll note this in your Retiree Account Statement (pay stub) from your pay agency. With CRDP, your VA waiver disappears or gets smaller as CRDP is phased-in. Eventually, most of you will receive full Service retired pay and full VA comp (medically retired over 20 years of service may not see full Service retired pay). You won’t actually see a CRDP payment because the fact that you’ll receive full Service retired pay IS CRDP at work.

You CRSC folks receive a separate payment outside your Service retired pay and VA comp. CRSC is your form of concurrent receipt. Your Service retired pay stub will continue to indicate a full VA waiver amount as long as you receive CRSC.

I hope these explanations help clear the air on the major myths behind CRDP and CRSC. As other myths pop-up in future discussions, I’ll add to this post. Thank all of you for your service and sacrifices.

233 responses so far

233 Responses to “Setting the Record Straight on CRSC and CRDP”

  1. John B Pratt II (MAJ USA RET)on 26 Jan 2011 at 12:13 pm

    I applied for CRSC in Jun 10. Finally approve in 14 Oct ltr from CRSC folks. Todate, no action from DFAS. ph calls to DFAS, say they haven’t recieved notification ltr. Ph calls to CRSC promises return call to clear up this Catch 22. No return calls recieved. Think my next step is a formal written IG complaint to both DFAS and the CRSC Cmd. Any thoughts of other actions. The non reciept of back pay due since Jun from DFAS has already caused a tax event which will result in the need to issue a revised 1099-R from DFAS.

  2. W. C. Morrisonon 26 Jan 2011 at 12:16 pm

    Pretty good article. I am eligible for CRSC and CRDP. but the CRDP exceeds that of the CRSC. So I accepted CRDP and not CRSC. The CRDP includes the disabilites found by the VA, just that one is the result of combat and the other is the result of combat and longevity issues (like wearing out my knees due to jogging).

    Since my disabilities have been around since Concurrent Reciept came into existence and were of such magnitude that I could be compensated, I am near completion of the 10 years. I believe next year I will have 100% Concurrent Receipt and no longer have a VA “deduction” in my regular military retirement.

    Oh yes, I retired due to longevity thus have over 20 years of service. That means I do have to suffer the indignities of early medical retirement, nor those of the reserve components.

    Thanks to both MOAA (and the predessor, TROA) and DAV, I have been successful in dealing with the VA.

  3. W. C. Morrisonon 26 Jan 2011 at 12:20 pm

    Pretty good article. I am eligible for CRSC and CRDP but the CRDP exceeds that of the CRSC. So I accepted CRDP and not CRSC. The CRDP includes the disabilites found by the VA, not just that ones as the result of combat but all of the other component disabilities as the result of combat and longevity issues (like wearing out my knees due to jogging).

    Since my disabilities have been around since Concurrent Reciept came into existence and were of such magnitude that I could be compensated, I am near completion of the 10 years adjustment. I believe next year I will have reached 100% Concurrent Receipt and no longer have a VA “deduction” in my regular military retirement.

    Oh yes, I retired due to longevity thus have over 20 years of service. That means I do not have to suffer the indignities of early medical retirement, nor those issues of the reserve components.

    Thanks to both MOAA (and the predessor, TROA) and DAV, I have been successful in dealing with the VA. I am a life member of both organizations.

  4. Michael Parkeron 26 Jan 2011 at 12:23 pm

    Great article but don’t forget about the CRSC glitch which denies some wounded warriors out of their proper CRSC payments. The CRSC glitch can be read about here:


  5. Rufus J. Washingtonon 26 Jan 2011 at 12:29 pm

    Thanks shane. I must admit, before speaking with you on at least 3 occassion, concering CRSC/CRDP, I was totally confused. You’re an asset to MOAA and the CRSC/CRDP community. Moreover, thanks to TROA/ MOAA for it’s untiring, unwavering lobbying on this issue. The CRSC/CRDP community are indebted to you, and TROA/MOAA

    Semper Fi

  6. Michael Woodwardon 26 Jan 2011 at 12:34 pm

    Will CRSC be terminated (in 2014 or thereafter) when CRDP is totally phased in?

  7. Dennis Gillon 26 Jan 2011 at 1:04 pm

    thanks so much for clearing this up. what it in time for me to apply for crsc, I was simply told that it would be deducted from my retired pay. from what you’re stating that only happens if you did not receive service connected disability back pay from the va . since my v a disability pay is deducted for my retired pay I am going to apply for crsc immediately. thanks again.

  8. Earlon 26 Jan 2011 at 1:37 pm

    Maybe it is because I am now 70 YO but, the above is not easy for me to follow. What I would appreciate is a series of questions that, as you answer would take you to the next step and finally tell you your best options.

    For example: Are you Retired? Yes No
    If Yes, are you VA disabled? Yes No
    If Yes, over 50%
    If Yes, did you serve in combat

    Therefore, your best option is to apply for CRSC.

    All the explanations are good for someone more alert than me. I just want to know the best alternative for me.

    Thanks for your efforts.

  9. WR Shopeon 26 Jan 2011 at 1:38 pm

    I am still confused. You state that “CRSC pays only the portion of your total disabilities that were directly related to combat” How is that calculated? VA’s overall disability is not detemined by simple addition of individual ratings but rather like combining probabilities. Overall disability is, I believe, then equal to 1-[(1-R1%)*(1-R2%)*…] where Ri% is the rating for one disability for i=1..number of total disabilities..

  10. Alan Cartwrighton 26 Jan 2011 at 1:57 pm

    I will admit I am still confused about CRSC and CRDP despite the excellent article Mr. Ostrom wrote on the issue. I have an additional question. Although I have a 60% disability form VA, I was denied CRSC in 2007 because the Combat Related Special Compensation Divsion said they were unable to determine if my disabilities resulted from a combat related situation. They made this decision despite an inch thick folder I sent to them from my medical file which indicated where the injury took place, when it took place and the circumstances in which it took place – to include combat zones and Ranger training. The only thing I could gather was that the medical file I provided them wasn’t enough witness to them and that they appeared to want some eye witness account or official record outside of the medical record.

  11. Shane Ostrom, CFP®on 26 Jan 2011 at 2:03 pm

    Woodward…No. CRSC and CRDP have specific purposes and separate laws that apply to each. So both programs will continue.

  12. John W. Marshallon 26 Jan 2011 at 2:20 pm

    It’s been five months since USAHR CMD received my application for CRSC, as evidenced by Certified Mail Return Reciept. Since then I’ve heard nothing back. How long should it take to process my application?

    I’m confused by your #6 comment. My total retirement pay entitlement is currently reduced by the amount of my VA Comp. Taxes are then calculated on the reduced amount. I get a separate check for my VA Comp which is non-taxable.

    It would seem logical when approved for CRSC the total amount of my retirement entitlement would be restored to the full full amount and then taxed. Plus, I would continue to get my separate non-taxable VA Comp check. Where am I wrong on this?

    Also, since I’m was elgible for this benefit since the law was passed, I understand I would be getting an additional check for the amount I should have received since its inception, but didn’t. Is this correct?

    What is a reasonable time for these actions to be accomplished?


    John (Jack) Marshall

  13. Robin I. Welchon 26 Jan 2011 at 3:03 pm

    I am curious about my CRSC pay. I am a medically retired USAF fighter pilot injured in a crash of my jet while flying with the 41st Fighter Interceptor Squadron in Japan in December 1952. I have been receiving VA Compensation based on my service connected 100% VA paraplegic disability. I have received CRSC authorization from the Air Force establishing CRSC offset pay from my VA compensation. I was retired with only two years of active duty service even though I had planned to continue for an indefinite number of years on active duty when my service ended with my accident.

    I applied for CRSC and am receiving an additional $75 per month above my VA compensation. I have seen some comments for medical retirement with less than 20 years active service that might impact the award amount. Is that a correct amount for my situation?
    Thank you for your consideration.
    Robin I.Welch

  14. Robert Bierlyon 26 Jan 2011 at 3:11 pm

    I am going thru the CRSC “process” having been found eligible for CRSC (by the US Army). My decision letter dated in January 2011 finds me eligible for CRSC from August 2010. However, I have received no document from the DFAS offering the choice between CRSC or CDRP as stated in the decision letter. By phone, I am told by DFAS that I must write a letter to request CRSC which I have done.
    Through out this process from application to VA in July2010 til the present, I have been receiving full retirement pay with no indication other than verbally that I apparently have been and continue to receive CDRP due to my 100% disability rating (published in November retroactive to August.) Further, I have now been told that CRSC is not retroactive but merely an annual choice looking only forward. If that is true why did the Service (US Army in my case) assign a eligibilty date in the past (coincidentally the same month as the VA disability award in the first place?)

  15. james lincolnon 26 Jan 2011 at 3:31 pm

    thanks for the article-I have been confused about the two since I retired in 1988-with a 40% (non VA)disability. In 2003 I had prostrate surgery, and qualified for a VA disability because of the Agent Orange “presumptive cause” (VA has about 14 cancers/diseases that qualify-if you were in Vietnam for even one day!)
    My VA disability exceeds the retirement disability-therefore,it is better to go with CRDP.But I have sent questions to the Army about why my retirement disability could not be upgraded to match my VA disability,then it would be better for me to go with CRSC.
    any retirees out there have a similar situation?

  16. Frederick Carrollon 26 Jan 2011 at 3:39 pm

    I appreciate what’s been done so far to try and restore some of the retirement pay. However, it is not 100%. If I retired from the civilian world and had VA disability pay, my civilian retirement would not be reduced at all. It appears that one retiring from the military service is being penalized.

  17. Manuel Bettencourton 26 Jan 2011 at 6:48 pm

    Don’t get me started. Ther are left behind veterans here. There are a small group of us with 20 years service who are not eligible for CRDP. I retired under Ch 61. I am 100% disabled (VA, 20% combat related) with 22 years service and 18 years active duty. People in my situation are the only group of retirees with 20 years of service who are not entitled to CRDP. Write your congressional delegation. A new law is the only way to fix this.

  18. Bill Tomlinsonon 26 Jan 2011 at 6:53 pm

    Good discussion and article, but I have one question. I am receiving CRSC for 100% combat related disability. If I die will my wife continue to receive this and my retired pay at the SBP rate?

  19. Garland Williamson 26 Jan 2011 at 7:03 pm

    Let me try to see if I have this straight. I retired from the Army after 28 years and through the VA I have been rated at 40% disabled. Currently, I received a reduced retirement check due to the separate VA check that is deducted and then separatly payed without a tax deduction. Does the law currently allow an application to restore my retirement check to its full amount and receive my VA disability compensation? If so, how do I do that. Or, because I am not rated at 50% or higher, will I continue my current pay arrangement for the foreseeable future. Thanks for your help.

  20. Rob Buckleyon 27 Jan 2011 at 1:12 am


    What about us Chapter 61 guys? Any changes regarding eligibility yet?

    Thanks for being there and all of your enlightenment!

  21. Shane Ostrom, CFP®on 27 Jan 2011 at 7:54 am

    Being a retiree with a 40% VA rating, you do not have eligibilty for CRDP. CRDP requires a 50% VA rating or higher. Therefore, at this time, you only qualify to apply for CRSC. If you disabilities are due to combat, you can get some or all of your Service retired pay restored with CRSC. The Army determines your combat-related rating. Apply on the Army CRSC web site; MOAA continues to fight for concurrent receipt for folks like you. If fact, you are among the 66% of the retiree (med and longevity) population with disabilities not eligible for CRDP. There are several draft bills floating around the halls of Congress right now to fix this problem. We initiated a few of them and found sponsors. See the MOAA web site under Take Action, Key Bills.

  22. Shane Ostrom, CFP®on 27 Jan 2011 at 7:58 am

    No. Survivors only get SBP or VA DIC. No part of pay that is paid to a Service member is paid to a survivor. Well…other than residual pay for a partial month, pay in arrears. SBP is based on your “base amount” as noted on your Retiree Account Statement from DFAS. If you covered your full retired pay, the 55% is based on your full gross amount of retired pay.

  23. Shane Ostrom, CFP®on 27 Jan 2011 at 8:05 am

    The Services and the VA are rating two different things. Service ratings are based on fitness for service, ability to perform the mission. The VA is whole body and how you compete for employment in the civilian world. VA comp is to compensate disabled military people for possible disadvantages in pay in the civilian world; healthy civilian employees vs disabled military members.

  24. Shane Ostrom, CFP®on 27 Jan 2011 at 8:20 am

    I would call the Service. Something’s not right. Maybe the Army’s move to Ft Knox has something to do with your delay. You are receiving CRDP now. CRDP restored your taxable retire pay and shows up in your DFAS check as more pay, less VA waiver. CRSC will be a special tax-free pay due to combat disabilities. The combat related injury status allows CRSC to be a special pay vice a true return of taxable retired pay. That’s why CRSC is not mixed back into your taxable retired pay. It is also why CRDP is open to ex-spouses thru divorce and CRSC is not. Retro pay is touched on in point #2. You have been receiving CRDP and if you were denied retired pay in arrears you would have received retro CRDP. Once CRSC is approved, if the retro period and the amount of CRSC is more than you received under CRDP, you will have some CRSC coming to you; whatever CRSC amount is over whatever you’ve already paid in CRDP.

  25. Michael Parkeron 27 Jan 2011 at 10:29 am

    Some points to address some of the concerns raised in the posts above:

    1. CRDP and CRSC are two distinct programs and you cannot collect from both. CRDP is automatic while one must apply for CRSC.

    2. CRDP requires a minimum 50% VA rating. The CRSC minimum VA rating requirement is 10%.

    3. Only disability retirees need 20 years of active service to collect CRDP. Length of Service Retirees (LOS) retirees only need a 50% VA rating to qualify for CRDP. There are 50,000 + LOS retirees with less than 20 years of active service and they are eligible for CRDP if rated 50% plus by the VA. Most of these retired for LOS under the Temporary Early Retirement Authority (TERA). Chapter 61 retirees are the only class of retirees that specifically require 20 years of active duty to qualify for CRDP.

    4. Your military service, not the VA, determines which conditions are combat related. “Combat related” includes more than “incurred in combat” conditions. See paragraph E3.P5.2.2 of DoDI 1332.38 for combat related definitions.

    5. Indeed the VA rates for all service connected conditions while the military rates only unfitting conditions. Further, the DoD rating locks in on placement on the PDRL. The VA rating can increase or decrease over time. However, the DoD rating and the VA rating for the same condition, at the time of placement on TDRL or PDRL, should theoretically be identical as both are required to rate per the VASRD. Often the DoD and VA ratings for the same condition are different due to DoD low-balling or extreme subjectivity in the VASRD rating criteria.

    6. CRSC is limited to the least of two factors, your LOS retirement amount or the amount of compensation from the VA for combat related conditions. So, often the entire offset retirement amount is not restored by CRSC. Indeed, those medical retirees with only a couple years of active duty will not receive much CRSC due to the LOS limitation factor.

    7. The CRSC glitch prevents many Chapter 61 disability retirees from getting their proper amount of CRSC. See post #2, above.


  26. Manuel Bettencourton 27 Jan 2011 at 11:31 am

    Mike Parker’s point #5 should emphasis the “theoretical” part. At PDRL time i had to fight for an AF 50% rating while the VA rating was 100%. Multiple applications with lawyer (no less than Bud Day) representation resulted in no change in the AF position despite many errors in the AF rating which went against AF regulations.

    Regarding point 3. MOAA should sponsor specific legislation to fix the fact that only Ch 61 retirees are REQUIRED TO HAVE OVER 20 YEARS AD even though SOME OF US HAVE OVER 20 YEARS SERVICE.

  27. David Gilletton 27 Jan 2011 at 1:07 pm

    Thanks for this article on a very important subject.

    I applied for and was denied CRSC in 2005. The reason given was “due to lack of supporting documentation we were not able to approve them as combat-related…”. I want to appeal but lack the knowledge as to how to do that in the way that would give me the best chance for a successful appeal. Please lead me in the right direction to a website, individual or other source for help. Thanks.

  28. Kathyon 27 Jan 2011 at 4:48 pm

    I am a National Guard member with a 90 per cent disability rating and am considered unemployable. I served 16 years and did several active duty tours. ( Titlle 10) I was retired as a Captain and put into the retired reserves, due to disabilty, but only receive VA compensation. I am currently 43 years old and cannot work. I know I had more than enough points for a reserve retirement despite retiring early. Am I, or will I ever be eligible for retirement pay?

  29. Shane Ostromon 28 Jan 2011 at 11:06 am

    D Gillett, use the Army CRSC web site. It has hints and doc suggestions:

    Kathy, As a Guard member, unless you receive your Notice of Eligibility (NOE) letter from the Service at 20 “good years” of service stating you are retirement eligible, you are not retirement eligible and not able to receive retired pay at age 60. You state you had more than enough points for Reserve retirement, then you are Reserve retired and had a NOE. You don’t early retire unless you don’t have 20 years credit. However, you state you were retired early. This implies a medical retirement to me which is a form of active duty retirement and makes you eligible for immediate Service retired pay. I don’t understand being put out early and not being medically retired unless you were not “retired” but “separated.” Early separation would have paid you a separation lump sum payment. Wires are crossed somewhere.

  30. Bryanton 29 Jan 2011 at 7:02 pm

    I thought I understood CRSC/CRDP but it appears I’m more confused than I believed. I was medically retired, Ch 61 with more than 20 years active duty (US Army) with 90% rating, all combat related. My CRSC and CRDP are equal in amounts and both are non-taxable. Regardless of which I choose, there is no taxable event. So which should I choose or should I even bother to choose one over the other?

    Additionally, I’ve notice on my pay stub from DFAS that there is still a VA Wavier offset and I can’t obtain a clear explanation why. I receive VA compensation at the 100% P&T rating too. So my questions are; if I’m receiving CRSC as a seperate check and the difference as a second check from my retired pay as disabilty pay from DFAS, plus a third check from the VA for 100% combat related disabilities. Why is there still a VA Wavier on my DFAS LES? Will this VA Wavier ever equal zero and stop being offset? Lastly, how will any change in CRSC/CRDP in 2014 or a new Law change effect me? This seems to be an issue that comes up each year when I receive my form letter from DFAS to choose either CRSC and CRDP.

  31. Shane Ostromon 31 Jan 2011 at 9:51 am

    Bryant, I agree. As hard as I try, CRDP-CRSC is so confusing, I can never find the exact words to explain in a clear unconfused manner.

    If you receive three forms of pay, you receive CRSC. You receive Service retired pay with a VA waiver, VA comp and CRSC pay. The VA waiver will always be in Service check and the CRSC reimburses you for the VA waiver amount in your Service check. The VA comp amount is always paid in full.

    If you receive two forms of pay, you receive CRDP. You get a Service check with CRDP added into it and a VA comp check. Under CRDP, the VA waiver amount is reduced in the Service check as the CRDP replaces the VA waiver amount.

    Bottom line is you get full Service pay and full VA pay. You either get your Service pay restored by CRDP which reduces or eliminates the VA waiver amount in your Service pay OR you receive CRSC which pays you a separate check to compensate you for your VA waiver amount.

    While generally this info applies to all people, individual aspects of people’s ratings and combet relatedness of the disabilities makes every person’s case uniquely different. No one can apply a blanket answer to their specific case. Every one re-read my article multiply times while applying the info to your specific situation. It may take several re-reads and comparing your pays to the examples before it all sinks in. I think Bryant’s situation is in example #6 of the article.

  32. charlie crameron 05 Feb 2011 at 12:02 pm

    thanks, i keep thinking i understand the difference but i am always learning something that makes it clearer. i keep reading and learning, thank you for the 411.

  33. Terry Smithon 07 Feb 2011 at 1:42 am

    MOAA has said there was back pay for CRSC back to 2003, is this no longer true?

  34. Shane Ostrom, CFP®on 07 Feb 2011 at 8:46 am

    T Smith, it is technically possible for CRSC retro payments back to 2003 if the circumstances work out for the individual. Since the two concurrent receipt programs have been around since 2003-2004, figuring retro payments are more complex than most realize. You have to apply to know whether you qualify.

  35. John Seiteson 06 Mar 2011 at 7:48 pm

    Determing or getting VA disability in retro CRSC Award into amended taxes appears to be a problem
    Assumption VA disability received is the CRSC amount to be used for amended tax value to reduce income for the retro period .
    Advice requested,

  36. David Gilletton 12 Mar 2011 at 4:15 pm


    I applied for CRSC in 2005 and was denied because they were not able to prove “combat related”. I was in the infantry (1st Lt) and suffered a seizure, was medivaced to 93 Medivac Hospital but I guess that’s not enough. I’m 40% service connected disabled and the concurrent recirpt doesn’t work for me now or in the future. My only hope is CRSC.

    Do you have any suggestions for me to appeal this ruling? I believe I have all the medical documentation I can get. I am at a stopping point until I can get some help to appeal the boards decision.

    It seems like you have to bleed to qualify, I didn’t get a purple heart for my disability but it has never the less been something I have had to live with since 1970 and has been a detrement to my career.

    I understand I am the type of person CRSC was created for but have been unsuccessful in getting it. Can you help me or point me in the right direction to get help to appeal my claim. I’m anxiously awaiting your answer.

    David Gillett

  37. […] a previous post , I explained how concurrent receipt works and tried to dispel some of the common misconceptions.  […]

  38. Russ Baileyon 27 Jun 2011 at 1:49 pm

    I was recently awarded a new VA disability payment increase of $214.00. And according to my Retiree Account Statement my net retirement pay decreased $160.50.

    Prior to the VA disability increase of 214.00 my total net pay from military retirement, VA and CRSC was $5196.94($1333.00 from VA, $1064.00 from CRSC, and $2799.94 from DFAS).

    Now on June 1, with the VA increase of $214.00 my total net pay from military retirement, CRSC and VA is $5250.44($1547.00 from VA, $1064.00 from CRSC, and $2639.44 from DFAS). This is a total increase of only $53.50 and coincidently my FITW at DFAS went down the same amount–$53.50.

    There is possibly an explanation for the math shown above, but I don’t understand how with the VA increase of $214.00 I only realized a net increase of $53.50.

    Thanks for listening.

  39. Shane Ostrom, CFP®on 28 Jun 2011 at 7:26 am

    Russ, When your VA comp went up so did your VA waiver amount in your Service pay. The VA increase and the resulting VA waiver amount cancelled each other out–net result, no total income change. The tax withholding is the only reason for the 53.50 change in your total pay. The increased VA comp is subtracted from your Service pay by the VA Waiver amount pre-tax which reduces your taxable Service pay income and a reduced taxable income probably drove your reduced tax withholding amount.

  40. Russ Baileyon 30 Jun 2011 at 8:47 pm

    Thanks for your reply. I appreciate your taking the time to reply.

    Russ Bailey

  41. Stevenon 30 Jul 2011 at 4:33 pm

    Hi shane,

    This is a great article!

    I do have one issue though, i was medically retired after 8 years 9 months from the army, and awaiting on my decision from crsc. My retirement amount is 641.00 and is waived by the VA. I am currently 90% with the VA, $2032 monthly. I was medically retired from the army back in 2004.

    My question is this, if i am awarded crsc, would i even benefit at all from my retired amount that is waived?

    I have tried the calculator and wow its so confusing! Must have been the ones trying to raise the debt ceiling and cut spending that did the mathmatical design on this, :/

    Anyways, any help from you would be greatful as you seem to know what your talking about.

    Thanks again!

  42. Shane Ostrom, CFP®on 01 Aug 2011 at 10:08 am

    Steven, unfortunately it is doubtful you will see anything from CRSC, and if you do, it will be a very small amount–a guess on my part since I don’t know your Service disability rating. I believe you’ll fall under what is known as the “CRSC Glitch.” The glitch is a quirk in the law that provides the formula to compute the CRSC amount. Technically, you should receive in the form of CRSC that portion of your Service retired pay represented by your years of vested Service time, 8 yrs/9 mos. Due to the legal formula glitch, you will probably be denied that amount. MOAA is fighting for a legislative fix for the glitch.

  43. Stevenon 01 Aug 2011 at 11:00 pm

    Thanks shane for your prompt response!

    Sorry i did not give all the information in my previous posting.

    My Army Retirement Rating is 30% from which i am being told was a lowball rating from the Army Med Board Docs. The reason i believe is because i was one of the 1ST to medically retire from the war in iraq as i was in the first wave from 2003 to 2004. I feel like the army pushed me out pretty fast and did not explain much of anything to me before i recieved my DD-214.

    The $641.00 was a formulated amount from my base pay at the time.

    I believe the CRSC Folks are trying to get me a % close to that of which the VA is rating me at for it.

    I figured it would be a low amount if any considering the amount of my medical retirement.

    Knowing the retirement of 30% do you think i am right as far as recieving little if anything?

    Thanks again!


  44. scotton 13 Aug 2011 at 1:49 pm

    I am 100%CRSC qualfied and CRDP 100% qualified. I drew a bulk pay on May18th from CRSC. That is all I have received from CRSC but I continue to get myfull CRDP pay and my army retired pay. Every way I figure it by accepting CRSC money I will lose hundreds of dollars. To my belief the pay should not be taxeable. could you give me some help to figure this out. Thanks Scott

  45. Lauraon 18 Sep 2011 at 2:09 pm

    Steven- have you heard anything? Your situation is extremely close to mine.

  46. Stephen W.on 28 Sep 2011 at 4:45 pm

    Great article brother!!! Greatly appreciated by us all!

    I do have a specific question for you. I am active duty, just advanced to E-7 and recently had a spinal injury while underway. I had surgery but it looks like I may be retired or “medically retired” in the near future. I am about 7 months from my 20 year point. Just a little more information in regards to disability…I figured with all my service connected ailments, I should be around the 80-90% disability, or more, mark.

    I have a few questions about what you think would be most beneficial in my situation. Should I put in for regular retirement at 20 years. (which factors my last highest paid 3 years for pension) OR should I wait for them to “medically” retire me? (Which, I’m guessing, would be whatever % the Navy gives for one disability of my current pay)

    If I am “medically retired” would I be eligible for the CRDP? I would have over 20 at that point hopefully and be over the 50% from VA.

    I work with a lot of people being seperated for medical conditions but my case seems to be a little different then others due to being so close to 20 years. Are people receiving CRDP now? And is it like receiving 2 payments each month, 1 from the VA Disability compensation and one from your pension?

    Thank you so much for the assistance! It is so much appreciated. These new laws and instructions are so confusing.



  47. Shane Ostrom, CFP®on 29 Sep 2011 at 9:13 am

    Stephen W. You can be medically retired with under or over 20 years of service. The bottomline to follow is always get your 20(+) year retirement whether it is medical or not. By getting 20 years, you will have one part of the CRDP eligibility boxed checked. The other CRDP box to check is 50% or more VA disability rating. The benefits of a medical retirement are you can get a higher payout percentage (more than the 2.5% times years of service) and it provides tax-free Service retirement pay. CRDP doesn’t care whether your retirement was medical or not.

    If your disabilities are combat-related, it doesn’t matter if you have 20 years prior to a medical retirement. CRSC, the combat-related concurrent receipt program, pays members with less than 20 years.

    Get your 20 years to be eligible for both programs.

  48. Shane Ostrom, CFP®on 29 Sep 2011 at 9:24 am

    Stephen W. If you are a military retiree, you receive a military retirement check. If you are VA disability rated, you receive a second separate check from the VA based on your VA rating.

    In the past, members who received a Service retirement check and a VA disability check had the VA check amount subtracted from their Service retirement check. The Service check indicates what’s known as a “VA Waiver” amount–the amount you waived and was docked from your Service pay to receive the VA check.

    CRDP eliminates the VA Waiver amount from your Service pay so you go back to receiving a Service check in full and a VA check in full. Two separate forms of pay.

  49. Stephen W.on 29 Sep 2011 at 10:25 am

    Thanks for the info Shane!
    Very much appreciated. The bottom line is make sure I get to my 20 years. Which, in my case, I’m pretty sure I will get there. And then have them medically retire me due to I may receive a better % of my base pay. Also, when they medically retire you, they use the paygrade you are at when they medically retire you…vice the highest 3 years paid and average that.

    Is that basically what your telling me?

    I was a bit worried because I just advanced to Chief/E-7 in the Navy and there is a requirement to retire as an E-7 you need to have atleast 24 months in that paygrade.

    What are the tax advantages on your retirement pay if you retire medically? I understand the CRDP, which is basically my pension returning to me, is taxed and the VA disability compensation is not taxed.

    Thanks again Shane.


    Stephen W.

  50. Tomon 16 Oct 2011 at 12:54 pm

    Based on changes to my VA disability status I recently read your article. It is one of the best articles I’ve read on the subject and a great help in my understanding of CRDP and how it may effect me. However, I had a couple of questions. My situation may be a bit unique but I doubt my questions on retroactive CRDP and retroactive service connection are.
    ++Retired in 2000 with 30 yrs active duty in USCG
    ++At retirement VA rating of 30 % disability—not combat related.
    ++CG retired pay reduced at VA rate for 30%.
    ++In 2003 diagnosed with an brain tumor. This diagnosis was based a seizure which was significant enough to result in a heart attack—first indication of the tumor’s existence. The tumor location makes it inoperable so I continue to have seizures. Chemo has helped deter the tumor’s growth.
    ++In 2007 I was told by a fellow retiree via the USCG retiree “grapevine” that my tumor may be service related due ionizing radiation that I was exposed to while serving at one overseas and one CONUS tour. Evidently the ionizing radiation was present but tests conducted by USCG at the time but did not consider it a factor for concern (no special protection, safety precautions, badges etc) ergo no special medical concern/tests when retiring.
    ++I applied for service related connection for the brain tumor in 2007.
    ++In Oct 2011 I rcvd the results of my service related request with a VA disability rating of 100%–not combat related. This was determined based on support and information from my fellow USCG retirees, DAV, and formal tests recently conducted by the USCG that documented the presence of ionizing radiation.

    My Questions:
    ++I believe that CRDP applies but I am unsure how and what to expect (amount, time it would take to come into effect, required work on my part). What information can you provide?
    ++Per the VA the 100% disability will be based on the initiation of the claim back in 2007. However, the type of tumor I have would have begun prior to my retirement (documented opinions of several doctors). Given that the no indication of its existence prior to 2003 and it was outside of the scope of the retirement physical (at the time there was no concern over ionizing radiation). Is there precedence to support that my disability rating would be made retroactive to the date the tumor was diagnosed in 2003 not the request for service connection?
    Any assistance would be appreciated. I am also contacting my local DAV representative.

    Again great article.

    I have the formal DoD/USCG report documenting that the ionizing radiation exists. I can provide it should you desire (in pdf). The ionizing radiation is from vacuum tubes used high power rf transmitting equipment e.g., Loran stations and possibly communication stations.

  51. Shane Ostrom, CFP®on 17 Oct 2011 at 8:35 am

    Tom, You will be automatically awarded CRDP by the USCG as a result of your VA rating of 100%–anything at 50% or over qualifies and as long as you are a 20 year or more years retiree. 100% rating gets you full CRDP restoration of retired pay immediately back to the retro approval date of your VA claim, 2007. Because CRDP is a restoration of retired pay you were denied due to the VA Waiver in your retired pay, the VA waiver will be removed from this point forward. Any retired pay you were docked by the VA Waiver back to 2007 will be paid in a lump sum retro payment–add up your VA waiver amounts for an idea. Plus your will get retro VA comp back to 2007 for the difference between your previous 30% rating and the 100% rating comp level. You’ll have to work with a Vet Service Officer to determine whether the claim due to the cancer can be appealed to make effective back to 2003. The CRDP part is in the CG ballpark now, you do nothing. Not sure how fast the CG pay shop works but it will be at least a month worse case 2.

  52. Tomon 17 Oct 2011 at 2:31 pm

    Thanks for the extremely fast turn around and the information. I was especially glad to have you clear up the items on the retroactive benefits… wasn’t mentioned in the VA decision. Also, you confirmed what I thought on the spilit responsibility for retroactive actions; I’ll use that to talk to the two reps.

    Appreciate your time and advice!

  53. kathy gallagheron 19 Oct 2011 at 4:38 pm

    My father was rated with agent orange 100% disability as of May 2011. He had put in for the disability in 1998 and was denied. When he received a letter last year stating they now connect agent orange to his disease he reapplied and was awarded. He has since passed away. Will there be any retroactive pay from 1998 until May of 2011 that my mother would receive as his beneficiary?

    I appreciate any info you have on this.

    Thank you,


  54. Doug Strandon 18 Nov 2011 at 10:55 am

    Please help me understand. I was medically retired with 20.3 years active duty service and received a DoD rating of 80%. With a 100% VA rating, will I be paid the appx $3000/mo VA compensation plus my 75% retirement pay (max allowed by law)?

    In the article, it says the extra 25% in retirement pay I’m receiving is for disability. Is this amount or percentage subtracted from what I’ll get from the VA?

  55. Shane Ostrom, CFP®on 19 Nov 2011 at 1:19 pm

    Doug Strand, members with VA disability compensation always get full VA comp for their rating. It’s the Service pay that’s docked. You will get full VA comp. The Service pay is docked by the VA comp amount, which is the VA Waiver amount. Then because you qualify for full CRDP, your Service pay will be restored up to the amount you earned from years of service. With 20 years of service, your retired pay amount would have been at 50% base pay. You got 75% due to your Service disability rating. So approx 1/3rd of your pay is due to disability. CRDP and CRSC restore longevity pay amounts; not disability pay amounts–in your Service check.

  56. Jimon 13 Dec 2011 at 7:48 am

    I receive CRDP since 2008 and I’m 60% VA disabled. My question is that when I got the first award it was about 1/2 of what I thought it should have been. I applied in November 2007 and got the approval in July 2008. When I called the VA and my service center I got some crazy statement that once the CRDP is phased out I would receive the rest of the money owed to me. Is this true? I not really holding my breathe on this but in this economy it would be a nice surprise.

  57. Shane Ostrom, CFP®on 14 Dec 2011 at 2:46 pm

    Jim, CRDP is being phased in over the years. In 2014, it will be completely phased in. Meaning, you will receive all your Service retired pay that is based on longevity–your retired pay based on actual years served. You will not receive Service retired pay by way of CRDP that is based on disability pay. In other words, you will not receive CRDP money for any amount of Service retired pay over the formula: (2 1/2% x years served x base pay at retirement). Example at 20 years service, you get 50% of base pay for retirement. This is pay for vested years of service. If you were medically retired, your retired pay is based on your medical rating…say a disability rating of 60%. If you have 20 years of service at 50% payout and you get 60% based on medical rating, CRDP won’t restore the extra 10% you get for a disability. You get CRDP restoration for time served only. Shane

  58. George Kolesaron 19 Dec 2011 at 11:43 am

    Just finished reading your original article and all the discussions — great information. I retired with 21 years of service and was awarded a VA disability rating of 80% after retirement. I currently receive CRSC in the correct amount. I noticed two entries on the CRSC Pay Statement from DFAS that I have not been able to decipher from my web searches: (1) Unemployable (the statement currently reads “NO”), and (2) Purple Heart % (the statement currently reads “00”). I am in the process of requesting an increase in my VA rating to 100%, as well as being declared Unemployable. I expect both conditions to be approved soon. I also was awarded a Purple Heart in Vietnam. Is there a benefit to making that known to the CRSC people? What will happen to my CRSC payment when I am classified as Unemployable?


  59. Shane Ostrom, CFP®on 20 Dec 2011 at 1:27 pm

    Kolesar, being awarded the VA’s unemployable tag, actually known as “Individual Unemployability” or “IU” has an important distinction in the payment of CRSC.
    To be tagged “IU” by the VA means you will receive CRSC at the 100% level even if your VA rating is something less than 100%. Eligibility for the IU tag typically starts at the 60% VA rating. The being unemployable and rating the nature of your disabilities are two different standards. You could be 60% rated but the nature of your 60% disability makes you unemployable. Same but opposite is true with a 100% rating but the nature of those 100% disabilities don’t stop you from working.
    Without the IU tag, you are paid at the CRSC rating determined by your Service. So, even if you are rated 100% by the VA, but without the IU tag, your CRSC rating will determine your CRSC payment amount.
    Receipt of a Purple Heart presumes the nature of a disability as ‘combat’ in nature. It’s not directly tied to an amount of pay but it supports the case that a disability was combat related. For some folks, the first hurtle to qualifying for CRSC is the determination of the combat related nature of the disability.

  60. Randall Hyatton 19 Jan 2012 at 2:55 am

    Mr. Shane,

    I am medically retired E-6 rated at 70% combat related(Chapter 61) after 8 years 3 months in the army. CRSC rated me 90% but DEFAS can’t submit payment because of an error. Supposedly that is being fixed. My retirement amount is 1277.00 (DOD) and is waived by the VA. I am currently 100% with the VA, $3087.00 monthly. I have a wife and two kids. I was medically retired from the army back in 2007. My base pay at retirement was 2744.00 and high three was 2264.00. I am confused over the whole process.

    Should I even be worrying about getting anything back? Someone told me I won’t get anything and that it was a waste of time. I am wondering if he’s right. Do you think I will get anything back?

    SSG(RET) Hyatt, Randall

  61. Shane Ostrom, CFP®on 19 Jan 2012 at 8:34 am

    SSG Randall, some rough back of the envelop figuring indicates CRSC is worth it. You won’t be made close to whole in your Service retired pay but my estimate is you’ll see a few hundred dollars a month in tax-free CRSC. You should see all your Service longevity retired pay restored which is roughly 20% of your entitled total gross Service retired pay.

  62. Randall Hyatton 20 Jan 2012 at 11:44 pm

    Mr. Shane,

    Thank you very much. I got hit pretty hard and my big head ain’t workin right. If I could have figured it out I would have. HA! Thanks again though, my wife is doing all my paperwork and she is helping me out. She is relieved by what you have written. Makes her feel like she’s not doing it for nothing.

    SSG(RET) Hyatt, Randall

  63. Randall Hyatton 23 Jan 2012 at 2:43 pm

    Mr. Shane,

    Just a heads up. DFAS called today and I am getting $530.00 starting in Feb. Thanks again for your help!

    SSG(RET) Hyatt, Randall

  64. Steveon 26 Jan 2012 at 8:50 pm

    Shane- First of all, I am so lucky at having found these discussions. Thank you for all that you do for all of us mis-informed VETS.

    My question is does everybody get paid a VA Comp when they are disabled? I’ve seen the term several times in these posts. If someone is retired with over 20 years of active service and receiving CRDP at the 100% rate should they also receive some type of VA Comp? I’m just asking because there is still mush that I do not understand.

  65. Shane Ostrom, CFP®on 27 Jan 2012 at 8:02 am

    Steve, it’s too bad these programs have to be so complicated. It seems pay issues should be pretty straight forward. To become eligible for CRDP or CRSC, you have to receive VA disability compensation. VA compensation is subtracted from military retired pay. CRDP/CRSC are designed to replace all or a portion of your military retired pay reduced by the receipt of VA comp. If you don’t have VA disability comp, your military retired pay isn’t reduced and there’s no need for CRDP/CRSC.

    To receive VA disability comp, you have to apply for a disability rating to the VA. The VA reviews your claim to determine if your disability was caused by your service in the military and determines the nature and degree of severity of the disability. Once approved, the VA assigns a disability rating and the rating determines the amount of compensation. Here are the ratings and levels of compensation: To apply to the VA for disability comp, you should work with a Veteran Service Office (VSO). VSOs are authorized and trained to handle VA cases–services are free. For your local VSOs look here: and and and

    Best wishes…Shane

  66. Stephanieon 04 Feb 2012 at 4:03 pm

    I was in the Air Force for 8 years 7 months. I was placed on TDRL for 2 years with 80% Disability and got permanent retirement at 60%. This whole time I have been receiving 100% (service connected, not from physical involvement in war) VA Disibility. As soon as I was permanently retired they stopped or “waived” my retirement pay (I was certainly not expecting this because when I went through TAPS I was told that if you recieve 100% from the VA you get both) I had called and talked to the retirement pay personnel and was told that there was nothing I could do because I did not complete 20 years, I was not in direct combat and I do not have 100% Disibility through the AirForce. Is this person right, do I fall under the glitch in the system or should I be trying something else? I am at a loss because I can’t get a job due to my conditions because I have a good amount of doc appointments to attend and I am almost always sick or in pain.


  67. Shane Ostrom, CFP®on 06 Feb 2012 at 8:36 am

    There are two types of concurrent receipt; non-combat CRDP or combat CRSC. CRDP requires both a 20-year retirement and a 50% or greater VA rating. Only the combat-related version, CRSC, allows less than a 20-year retirement for eligibility. But CRSC also requires disabilities/illnesses directly related to combat activities. CRSC is not limited to a specific disability rating, VA or Service; it accepts all ratings. However, you have to apply to the Service and the Service has to rate the portion of your disabilities specifically related to combat action and that Service combat rating determines the amount of CRSC. It’s not unusual for the CRSC rating to be less than the Service medical retirement disability rating and the VA rating because when considering only the combat portion of disabilities, they may be less than the reasons for all disabilities combined. MOAA continues to fight on the Hill to make everyone with disabilities eligible for some form of concurrent receipt. Shane

  68. Gregoryon 09 Feb 2012 at 11:26 am

    Shane- First of all, I am more knowledgeable reading your comments to better help my fellow military VETs, and medical retirees.

    My question is I was just received 100% CRDP and notices I don’t receive the full amount which should be $2,873 vet w/child.

    I notice on my DFAC statement is say max I can receive is $2,430 which match my current amount of retirement pay.

    When I retired my pay was $ 3,148 and I got divorce and due to ex-spouse law she receives $675 which decreases my retirement salary.

    I feel that I am getting punish twice by the courts which to 675 and now VA which is NOT giving my full Entitlements. Can you give me advice?
    r/ VET.

  69. Shane Ostrom, CFP®on 10 Feb 2012 at 8:07 am

    Gregory, from reading your comments, it sounds like your situation is a bit complex and hard to fully understand or explain in this limited space. But generally, if I’m understanding things correctly… You must be a Service medical retiree. I’m guessing your Service disability rating is greater than the Service longevity credit you got for retirement purposes. As an example, if your Service disability rating for medical retirement was 70% and if you had been retired due to longevity (years-of-service) your payout would have been a lesser percentage (2.5% times years-of-service). Your CRDP is based on the lesser years-of-service payout. That’s why although your VA rating is at 100% w/child and your CRDP is 100%, your CRDP is less than full retired pay restoration of your VA waiver compensation. It’s because the CRDP is capped at your longevity (years-of-service) payout percentage. Plus CRDP is eligible for the former spouse split. Call if you need to…Shane

  70. Edwardon 10 Feb 2012 at 3:39 pm

    I just retired with 26 years from the Air Force on 1 Sep 2011. I am already receiving my retirement pay every month. I applied for disability a couple months before retiring and finally received my VA packet showing my rating (80%) and how much I will get paid. When I went through the Transition Assistance Program on base, we were told that it would take a while before the VA compensation was decided and then paid, but not to worry because they would back pay starting with the 1st day of retirement.

    My payments should have started with Sep 2011 (being paid on 1 Oct), but the table in the letter shows 1 Oct 2011 amount withheld. There is no entry for 1 Nov 2011. Entry for 1 Dec 2011 shows amount withheld. Next entry shows 1 Feb 2012 with amount paid. It is now 10 Feb 2012 and I haven’t been paid anything. I called yesterday to ask about pay. I was told I couldn’t get paid full retirement and disability, so the VA was withholding my pay. They said I wouldn’t get my first disability check until 1 March 2012. When I asked about being paid from 1 Sep 2011 until now, I was told NO, I wouldn’t get paid any money for that period. I mentioned the CRDP and was told that I didn’t qualify for that. What is happening is not what I have been told should happen.

  71. Shane Ostrom, CFP®on 11 Feb 2012 at 4:56 pm

    Edward, something isn’t right and it seems there is another piece to this puzzle I’m missing. Just so you know CRDP is a DOD program administered by DFAS so the VA has nothing to do with it. Was part of your VA applcation paperwork a VA Waiver authorization; where you agree to waive Service retired pay to receive VA disability compensation? You should have signed a VA Waiver and submited it to the VA or DFAS. Were you early separated with separation pay and you came back later on active duty or Reserve duty to finally retire? Call me at MOAA if you wish, (800)234-6622.

  72. william Gieseon 08 Mar 2012 at 11:25 pm

    Question I will be chap 61 retires as a MSG with 24 years total service 18.5 active.

    I will have a 100% va rating, 80% combat related

    My Army rating is 90% with combat related being 80%

    Is the only route I have CRSC? If so do I apply as soon as I retire?

    Thanks for the help

  73. Shane Ostrom, CFP®on 09 Mar 2012 at 3:44 pm

    MSG Giese, there are 2 types of concurrent receipt as we discuss in the article, CRDP and CRSC. Because you will be medically retired, which is an active duty retirement, you will be credited with the 18.5 years of service. Having less than 20 years of service for retirement purposes means you are eligible for CRSC only. CRDP requires a 20(+) year retirement. Upon receipt of retired pay and VA compensation, apply to the Army for CRSC. You can start the paperwork now and have it ready to go upon retirement.
    Best wishes…Shane

  74. william Gieseon 12 Mar 2012 at 2:50 am


    thanks so much for the feedback its helpful! I will get that ASAP! I truly appreciate it!

  75. Danon 13 Mar 2012 at 2:18 pm

    Shane, Great article and appreciate your help… My status is that I was medically retired as a Navy Chief after 18 years of Active Duty service. My diagnosis is PTSD due to combat. I understand that I did not make 20 yrs so am not eligible for CRDP. I just received a 90% VA disability rating with 50% for PTSD. I have been receiving 50% military retirement but with my VA rating higher am applying for the waiver to receive the VA pay. I have already applied for CRSC but since I haven’t received any VA pay yet they can’t start my CRSC. The question I have is, do you have any idea a) how long it takes to start receiving CRSC pay, b) how much should I expect(ballpark?) and c) do I get backpay for CRSC since it has taken 9 months for the VA to give me a rating?…

  76. Edward T. Strekeron 25 Mar 2012 at 2:30 am

    Here,s a confusing and misunderstood predicament… im 100 % p/t iu from combat in beirut lebanon 1983 i was wounded 12 sept 83 went back inland and was part of the dig bag and tag etc. of marines who were the bravest of the bravest trying to save lives from the oct 23 1983 bombing of the marine baraacks … finished my time (with a few minor stupid mistakes) honorable discharged .. went to work for the post office where the knowledge on DAV was ..nothing so in 10 years i went from 10 to 30 to 50 to 70 to 100%…PTSD tinnitus scars from wounds etc. well the usps forged documents to screw me out of civil service time . yet my main question would be now that it took all that time for doctors to finally p an t me im being … what avenues would you suggest to take to recieve whatever benifits ..military retirement crsc ????? beirut disabled combat Marine veteran tottaly lost now and for the last 10yrs

  77. Pam Gayon 23 May 2012 at 11:51 pm

    I am confused. Are you all saying that since the branch of service I was in may have been negligent in safety issues, they have to compensate service members? Therefore, what a person get from the VA for compensation for disability is in addition to what we can receive if we apply for CRSC (taxable/must apply) or CRDP (nontaxable/automatic)?

  78. Shane Ostrom, CFP®on 24 May 2012 at 6:45 am

    Pam Gay, not really. First off, CRDP and CRSC are for Service members who receive retired pay. If you don’t receive Service retired pay, these program have nothing to do with you. If you do receive retired pay and if you receive VA comp for disabilities, then the VA comp is deducted from your Service retired pay by law–can’t double dip so to speak. CRDP and CRSC are programs to restore some or all of the Service retired pay that you were docked due to receipt of VA comp. These programs negate the double dip law because it was finally recognized that Service retired pay was “earned/vested” due to years of service–it had nothing to do with disability pay. The VA comp on the other hand is specifically due to disability to help compensate for lost potential earnings due to the disability. But there are details behind the eligibilty rules for CRDP and CRSC which this article tries to explain. Shane

  79. Ronon 12 Jun 2012 at 5:40 am

    I recently found your helpful site; thank you for assisting veterans. I would appreciate a clarification regarding VA compensation, CRSC, retroactive entitlements and the Strickland Decision.

    Situation: Veteran retires from military with more than 20 years for length of service on 1 January 2008. He files an application for VA compensation on 1 February 2008. The VA approves his application on 1 January 2012, with a retroactive effective date of 1 February 2008. He begins to receive VA compensation at 40% on 1 March 2012 with the remainder of his entitlement (retro pay) pending a DFAS audit. He applies for CRSC and that application is approved for 40% CR with a retroactive effective date of 1 February 2008.

    1. Whenever the retro funds are paid, will they will solely be from the VA as compensation even though he has an approval for CRSC retro to the same effective date as VA comp? I believe that would be the case since nothing had been offset or reduced in his military retirement pay for CRSC to restore.

    2. If the answer to question number 1 is yes, it will be solely VA compensation since he has already received his full retirement pay without offset, could you explain the reasoning behind the programs allowing the retiree to retain his full military retirement pay (for the retro period) without an offset and without being considered CRSC? I can understand if the retro was considered CRSC, but if it is not, then it could be looked at as dual receipt without the benefit of the restoration effect of CRSC.
    It would also seem that accounting issues would be pertinent (i.e., retired military pay versus CRSC) unless they are paid from the same account.

    3. Could you address how the Strickland Decision could be useful for prior years tax returns in a situation such as discussed above that involves retro pay?

    Thank you for your help.

  80. Gilberton 12 Jun 2012 at 4:54 pm

    Here’s my situation…I retired 1 Nov 2011 with 21 years and 11 months of service. Gross retirement pay is $3862 per month. My VA claim was recently processed and I was rated at 80% disability and a total VA Benefit of $1,753 per month; per the VA letter it is set to be paid starting June 2012 (nothing showed up in my retirement pay).
    I understand that CRDP and military retirement are now paid concurrently and there is only a slight offset that will decrease each year until 2014 when the CRDP offset will be eliminated. Different web sites provide different information so I’m confused about what I should be expecting for CRDP once DFAS and the VA get their information straight. My perception was I would be getting an additional VA benefit of approximately $1747 per month ($1753 minus the CRDP offset) in addition to my gross military retirement pay of $3862 for a total of $5609 per month from DFAS. Am I on the right track here?

  81. Bill saroskyon 12 Jun 2012 at 7:37 pm

    Shane, first article that made sense of these programs. Thank you. Now question, I am retired USN 20 years. Vietnam agent orange awarded 100% for 6 months last year and now 20% beginning Oct 2011. Just received a check restoring my retirement pay for the 100%, I presume under CRDP. If I now apply for CRSC for the 20%, will they take back what I received under the CRDP program or just start reinstating the 20% now being taken as a VA waiver. The 20% is all for the agent orange?
    Tks much and smooth sailing.

  82. Shane Ostrom, CFP®on 13 Jun 2012 at 7:05 am

    Bill Sarosky, I may be a little confused about your situation but I’ll give it a shot. There are two separate ratings that determine your concurrent receipt status. Your 1) VA rating for CRDP (the combined rating, the individual ratings don’t matter) and 2) your Navy CRSC combat rating for CRSC purposes. The VA does not determine combat related ratings,; only the Service does that for CRSC purposes. So forget about that 20% you think is a CRSC rating if the 20% came from the VA. If you haven’t applied to the Navy for your combat rating, you can only be receiving CRDP. If you are receiving Service retired pay at 100%, I assume you are still rated 100% by the VA (not quite sure what the mention of 20% Oct 2011 is about). DFAS does not retroactively collect pay for changing a concurrent receipt program from CRDP to CRSC or the other way around; they just start the new program from that point foward. Apply to the Navy for CRSC just to see what your CRSC rating comes back as. The CRSC rating and pay can’t do better than the 100% restoration of retired pay you get now, amount wise, but it can make the amount of restored Navy retired pay tax-free.

  83. Shane Ostrom, CFP®on 13 Jun 2012 at 7:21 am

    Gilbert, In the old days, the full amount of VA pay would have been subtracted from your Service retired pay in the form of the “VA Waiver.” The VA Waiver equaled the VA compensation amount and was the amount of Service pay you waived to receive the VA comp; you couldn’t double dip so to speak. Now under CRDP, the VA Waiver is being eliminated. The CRDP is not an “amount” as much as it’s really just giving you back your retired pay by eliminating the VA Waiver offset, thereby restoring your Service retired pay. You will receive your full VA comp amount as determined by your VA rating and you will receive your full Service retired pay once CRDP is fully phased in in 2014. So Service $3862, VA comp $1753. Until CRDP is fully implemented in 2014, you will continue to have a small VA Waiver amount applied to your Service retired pay. I’m guessing about $10-$20 a month give or take.

    Everyone who reads this…you always get full VA compensation based on your total VA rating. It’s only your Service retired pay that’s docked due to receipt of VA comp. CRDP and CRSC is about giving you your Service retired pay back.

  84. Shane Ostrom, CFP®on 13 Jun 2012 at 9:00 am

    Ron, you’re the perfect storm of pay complexities. Hope you are patient. DFAS and the VA have to determine; what you got paid, what you should have been paid, which agency owed it, which agency underpaid or overpaid, what’s the net result. You get the net result. Generally, it’s how the new VA pay with retro VA comp impacts the previous pay, and how CRSC payments will impact those pays.

    You were getting paid Service retired pay in full until the VA retro decision and VA payments started. The VA retro payments mean you should have been getting docked in your past Service retired pay due to the VA compensation and the application of a VA Waiver amount in your Service retired pay. DFAS and the VA have to determine how much pay you received from the Service, then subtract out what you shouldn’t have received due to a VA Waiver, then apply the VA retro payment amount and come up with a net amount of payment. CRSC impacts are considered after these calulations–DFAS administers the CRSC payments. Just to ensure you know, after all of this has been determined, from this point forward, your Service retired pay will have a full VA Waiver amount (equal to your VA comp) docking your Service pay due to the VA comp. The CRSC will be paid as a third form of payment to reimburse you for what the VA Waiver amount offsets your Service retired pay.

    Ques 1) Tough to say after all the goat rope involved who will pay what and when. If the audit determines the VA underpaid you, the retro check comes from the VA. If DFAS underpaid you, it comes from DFAS.

    Ques 2 and 3) The bottom line on this issue is you were paid your full amount of taxable Service retired pay in the past. Your VA retro and the CRSC retro decisions established that some portion of your previous taxable Service retired payments should have been tax free. This is where the Strickland decision applies. You’ve already been paid taxable retired pay and paid taxes on that amount; this is a done deal. After all the audit/pay dust settles, you have to determine how much of your previous taxable pay would have been tax-free had all the VA and CRSC payments been in effect starting in Feb 2008. The Strickland decision allows you to claim a refund on the taxes you paid on past taxable income that was made tax-free by the retro decisions/payments.

    The final pay actions won’t literally take back the taxable retired pay and substitute it with tax-free VA or CRSC pay. You were already paid the taxable income in the past and that past tax status of that pay remains in effect; it’s water under the bridge. By paying you a net amount after calculations are finalized, DFAS and the VA leaves it up to you to work out the back tax issues with the IRS.

    Illustration, in 2008 you were paid $2000 per month in Service taxable retired pay. Now with the retro VA comp and CRSC decisions, they would have made $560 of the $2000 tax-free. You file an IRS form 1040X to claim a refund for the $560 a month you paid taxes on that is now considered tax-free by the VA/CRSC decisions. The tax-free portion of your past Service retired pay will also be figured for years 2009, 2010, and 2011. Refer to IRS pub 525 page 17,, for time limits for amended tax returns.

  85. Ronon 13 Jun 2012 at 12:02 pm

    Thank you Shane.


  86. Larry Jacobson 15 Jun 2012 at 12:20 pm

    I was awarded 40% Service Connected Disability in may 2009. VSSP payment would be recovered until May 2012 before I wouls recived any benifits for my Sevrice Connected Disability. It is now the middle of June and I have not recieve a payment nor have I heard anythinf from VA. What should I do.

  87. Shane Ostrom, CFP®on 15 Jun 2012 at 2:47 pm

    Larry Jacobs, go see a Veteran Service Officer. Search using: or (go to the middle block labeled “Search Recognized VSOs” and just put your state in the state block).

  88. TSgt Shelley Haneyon 27 Jul 2012 at 1:30 pm

    I have ten years active duty and had eight years A FR before i was medically retired. I was retired from the reserves with an 80% disability rating and currently hold a 100% disability with the VA. I also have an unemployable rating. I currently receive 100% VA pay. Will i ever receive a retirement check? Should i apply or am i even eligible for additional compensation? DFAS says im less than twenty years so i guess im a Chapter 61 but the last LES i received stated my years of service as 23.

  89. Shane Ostrom, CFP®on 30 Jul 2012 at 7:21 am

    TSgt Haney, you are a medical retiree with less than 20 yrs of service. This means you are not eligible for CRDP. CRDP is for longevity retirees only; 20(+) yrs of service. However, if the nature of your illnesses or disabilities is due to combat, you are eligible for CRSC. You have to apply to the AF for CRSC: Even if awarded CRSC by the AF be aware that you will not have your full Service retired restored. The CRSC pay amount is based on years served on active duty only because medical retirement is categorized as an active duty retirement–because you are paid immediately. So non-active duty service does not count. Plus, any additional retired pay you receive for disabilities, pay above the amount for 10 yrs of service, is not restored. As for your LES, for pay purposes only, you get to use total credited service time. But I don’t understand how you served 10 yrs active and 8 yrs Reserves and your years of service are 23. Shane

  90. Michaelon 06 Aug 2012 at 6:16 pm

    Hello, I am confused about CRDP and CRSC. I am 43 years old and have a total of 24 years in the Army Reserve. My time includes 10 years active duty and 14 years reserve. I have my 20 year letter. I am being medically boarded out of the Army. Will I get two checks. My retirement pay and VA disability or how does this work.

  91. Shane Ostrom, CFP®on 07 Aug 2012 at 7:27 am

    Michael, if you take a medical retirement, that is an “active duty” retirement–that’s why it pays immediately and doesn’t make you wait until age 60 for retired pay.

    You will be retired with your 10 years of active duty time only–active duty time for active duty retirement.

    You will not be eligible for CRDP because you will have less than a 20-year longevity retirement. CRDP is only for 20-year (+) retirees.

    You will only be eligible for CRSC and that’s IF your disabilities/illnesses are directly combat-related. If only part of your disabilities/illnesses are combat-combat related, you will only get credit for those disabilities that are combat-related. In other words, it is possible your VA rating (based on everything) will be higher than your combat-related rating (combat-related only) and you only get paid for the combat-related rating. Point being…only partial restoration of retired pay.

    Generally, a 20-year longevity retirement is always best when talking CRSC-CRDP. 20-year retirement means initial eligibility for either program CRDP or CRSC. And everyone with a VA rating of 50% or greater, regardless of combat-related issues, gets full restoration of their Service retired pay under CRDP.

    To get both full VA comp and full Service retired pay for 24 total years of service, you have to retire as a Reserve member, no medical retirement, and wait till age 60 for pay.

  92. john won 12 Aug 2012 at 7:16 pm


    I was medically retired from the army in august 08. I was placed on tdrl and was given 50% retirement. I did 2 tours of iraq and was injured on my 2nd tour resulting in my medical discharge. I was awarded a purple heart. After going to my 1st physical for tdrl I was then permenatly retired which was around a year after being retired in august 08. In august 08 I went to the va and was awarded 60%. So I guess since the va rating was higher than the armys rating I receive the va comp. I also filed for crsc and was awarded that. This year my va rating was increased to 100%. I filed the 12-e to have an increase in my crsc pay but nothing has changed and when I call these people they seem to have little knowledge on what they do. I served 4 years 6 months and 25 days on active duty. I received $3,049.00 from the va and its all tax free. My 100% from the va is all combat related. I receive $211.00 from crsc. The amount waived from the army is $942 which is the 50% they awarded me when I was med retired. Your the only person I have found who knows what their talking about. Do you think the $211 is the right amount I should be receiving. 100% va rating= $3,049. Army retirement waived 50%= $942. Crsc I receive currently= $211. 4 years 6 months 25 days active duty.

  93. john won 12 Aug 2012 at 7:46 pm

    Shane if I called the 800 234 6622 number would I be able to talk to you personally or atleast someone with the same knowledge of how all this works as you?

  94. Shane Ostrom, CFP®on 13 Aug 2012 at 7:15 am

    John W, yes, that’s our number. Ask for me…Shane

  95. Shane Ostrom, CFP®on 13 Aug 2012 at 7:52 am

    John W, because you were med retired with less than 20 years of service, CRSC is your only option. You must separate in your mind Service pay from VA pay; two different pays for two different reasons from two different agencies.

    Your VA comp at 100% is what it is and will remain the same. The VA comp is not impacted by any Service pays. VA doesn’t rate combat-relatedness. VA is whole-body rating regardless of the cause of the injuries/illnesses.

    Your Service controls both your Service retired pay and CRSC. CRSC is directly related to combat-relatedness of your injuries/illnesses. The retired pay is based on your Service medical retirement processes and the related reasons you were deemed unfit to continue service. The VA comp is subtracted from your Service retired pay. CRSC restores a part of the Service retired pay, based on years of service, you are docked due to receipt of VA comp.

    Here’s the rub…CRSC only restores that portion of Service retired pay that is directly related to the 4 1/2 years you served. In other words, CRSC replaces your vested Service longevity pay only–4 years, 6 months and 25 days worth of retired pay.

    My back of the envelop math indicates that $211 is probably in the ballpark–4.5 years of service times 2.5% (retired pay factor) times base pay at retirement or (yos x 2.5%) x base pay at retirement.

    The frustration is that out of the total amount of Service retired pay (50%) you recieve, about 11% is due to years of service and the rest is a form of disablility pay; the rest up to the 50%. CRSC does not restore the disability portion of the Service pay–the part above the 11%. Neither does CRDP if you were eligible for that.

    My impression is that you are maxed out of CRSC due to your limited years of service. A higher CRSC rating from the Service won’t change this fact.

    Wish I had better news. Your only option is to apply to the Service for CRSC reconsideration IF you think your years of service aren’t the reason for the limited CRSC pay.


  96. Richard Kon 02 Sep 2012 at 11:06 pm

    Thank you for the awesome article. The more I look into CRSC and DRDP the more confusing it gets. I hope you are able to clear out my cobwebs.

    I retired from the Navy after 22.5 years service. I just received a 60% disability rating from the VA. This is the first time I have received a VA rating. It is as follows:

    10% for bi-lateral hearing loss (non-combat related)
    10% for tinnitus (non-combat related)
    50% for PTSD (combat related)

    Do I have a choice between CRSC & CRDP?

    Will I receive compensation back to the initial date of my claim?

  97. Shane Ostrom, CFP®on 04 Sep 2012 at 8:49 am

    Richard K, if you retired from active duty with 22.5 years of service and you have a 60% VA rating, you automatically qualify for CRDP. Yes, you will probably receive some CRDP retro to the VA start date.

    If you apply for CRSC to the Navy, you could qualify for CRSC if the nature of your injuries are combat-related. Navy has a web page for CRSC info and applications.

    If you qualify for both, you are given a choice between the two.

    If you have 22.5 years of service as Reserves, then CRDP will start at age 60 when your retired pay starts. Apply for CRSC at age 60.


  98. Syl Marshallon 25 Sep 2012 at 10:38 pm

    This is a great informative site. Best of Luck. Thanks for your service.

  99. FITTSon 21 Nov 2012 at 9:29 pm

    I am an E-7 being medically retired. I have 20 years in. 80% from the Army and 80% from VA. I have been diagnosed with combat related injuries. will my pension from the army be tax free as well as the Va check? am i entitled to that. basically how will i get paid in laymens terms. i’m reading different articles and not understanding. some articles say i can’t get the TAX FREE pension as well as an additional check from the VA, is that true? how does it work?

  100. Shane Ostrom, CFP®on 26 Nov 2012 at 11:07 am

    Service retired pay is taxable unless:
    — the nature of the medical retirement is due to combat injuries as you state you are and
    — your disability retired pay (which is 75% of base pay) is less than your longevity retired pay (which is 50% of base pay).

    Your VA pay is tax-free; all VA benefits are always tax-free.

    There are a lot of moving parts to your future pay. Check out the articles on this web page (

    Your Service retired pay will fall under the ‘Concurrent Receipt’ programs. Normally, if you get Service retired pay and VA disability compensation, the VA comp is subtracted dollar for dollar from your Service pay. The subtraction in your Service retired pay is called the “VA Waiver”, you “waive” your Service retired pay to receive the VA comp.

    Bottom line on the concurrent receipt programs…

    If you are rated 50% or greater by the VA, you will receive full Service retired pay, based on your years of service (20yos is 50%), and VA comp—no VA Waiver. This is CRDP. CRDP is the restoration of your “taxable” retired pay by eliminating the VA Waiver from your retired pay.

    You can also apply for CRSC to see whether CRSC is better for you than the CRDP. CRSC is a tax-free payment that restores retired pay. The catch is that CRSC may not restore all your retired pay that is docked by the VA Waiver amount. CRSC is only for combat-related disabilities/illnesses. The combat-related aspect of CRSC can be a limiting factor—it’s possible that only a portion of your total disabilities are directly related to combat.

    If you are rated 40% or less by the VA, you only qualify for the CRSC program. CRSC is a separate check (from DFAS) that reimburses you for a portion of your Service retired pay that is docked by the VA Waiver amount. It can be a full amount of reimbursement if your disabilities/illnesses are all caused by combat action.

  101. FITTSon 26 Nov 2012 at 11:42 am

    ok, the worksheet that my Peblo did up calculates that 75% of my base pay would be $3,156.97 and the worksheet says that would be non-taxable because of combat related injuries. I looked at the VA website and it calculates my pay at 80% with a wife and 2 kids to be around $1750. would i be entitled to recieve the full amount of both checks for a combined $4906.97?

  102. Fred Bon 26 Nov 2012 at 12:17 pm

    Hi Shane
    I am fully Serviced retired E-5 after 20 years, I have been recieving my pension with my ex wife getting her entitlement and a 40 percent VA for a gunshot wound to my thigh also a CRSC payment, recently my VA disabilty went to 70 percent and I received a letter from the Navy requesting me to choose Crsc or Crdp, I chose CRSC and my ex to be debited, as I thought it was going to be the month or two it took to get figured out,now im not sure and am not sure I did the right thing now that I read the blog. I thought I was to recieve retro from the VA as per a letter I recived from them and retro from CRSC as per a letter I recieved from them also these letters backdated my previous requests for my knee several years!
    I have been told several differant stories and would like some clarification if you could!
    Proud to Serve!
    Gunnery Sgt Retired

  103. Shane Ostrom, CFP®on 27 Nov 2012 at 1:00 pm

    Fred B, you don’t mention your CRSC rating from the Service so I’ll just wing this explanation for illustration.

    Your choices are CRDP — With a 20-year retirement and 70% VA rating, if you use CRDP, you will receive full Service retired pay and full VA comp at 70%. CRDP is the elimination of the VA Waiver amount from your retired pay. This means all your Service retired pay is subject to divorce decree agreements.

    Or CRSC which means you will get full 70% VA comp plus, Service retired pay minus the full VA Waiver amount plus, and a separate CRSC check with the amount based on your CRSC rating. If your CRSC rating matches your VA rating, your CRSC check amount will reimburse you for the VA Waiver amount being docked from your retired pay. If the CRSC rating is less than your VA rating then your CRSC check won’t cover the full amount of your VA Waiver in your ertired pay. CRSC is tax-free and not subject to divorce decree agreements.

    VA and CRDP or CRSC pay retro payments when the ‘start date’ of your payments is after the ‘effective date.’ If your first VA check arrives in Dec 2012 but the VA approval letter states your ‘effective date’ is Feb 2012, then you get a retro check for the Feb – Nov 2012 period. Same with CRDP or CRSC.

    Because CRDP is taxable and CRSC is tax-free, when you compare the two payments you need to factor in the tax impact to determine which payment is better for you. Plus, you have the divorced situation to consider. If your CRDP amount is $800, after paying a 15% tax rate your take-home pay is $680. Compare this to your tax-free CRSC amount. Shane

  104. Fred Bon 27 Nov 2012 at 7:49 pm

    Thank you Shane, my csrc rating is also 70% and I do have one more question if I may, what exactly does the letter mean by debiting my ex wife, I was told by the VA rep that it was a couple months different of payment if she receives to much money but the benefits center here locally has told me they go back to the year on my letter which is 2008 and debit her, this really doesn’t make sense to me as I don’t see how this would be her fault or quite frankly mine and if this money isn’t paid they will hold retro pay and in the end of the wait debit me for it and ill get what is left! If you can clear this up for me ill be done bothering your expertise! Thank you Fred B

  105. SFC FITTSon 29 Nov 2012 at 8:57 am

    ok, the worksheet that my Peblo did up calculates that 75% of my base pay would be $3,156.97 and the worksheet says that would be non-taxable because of combat related injuries. I looked at the VA website and it calculates my pay at 80% with a wife and 2 kids to be around $1750. would i be entitled to recieve the full amount of both checks for a combined $4906.97

  106. Shane Ostrom, CFP®on 29 Nov 2012 at 12:41 pm

    SFC Fitts, CRDP requires you be a 20-year retiree with a 50% or greater VA rating. If you are, then you get full VA comp and full Service retired pay from CRDP. CRDP is the elimination of the VA Waiver amount in your retired check. This is how your retired pay is restored; it is not a separate check or a paid amount visably noticed. It is just that your retired check isn’t docked by a VA Waiver amount.

    CRSC doesn’t care how many years you served as long as you are retired due to longevity or medical reasons. You have to apply to your service for CRSC. With CRSC you get full VA comp. Your Service retired check will be docked by the amount of VA comp dollar for dollar (the VA Waiver). Then CRSC will reimburse you for the docked amount out of your retired check. Catch is that CRSC may not reimburse for the full amount of the docked amount because the CRSC amount depends on your CRSC rating.

    If you are being paid more in retired pay because of your medical rating than you would be based on longevity, neither CRDP nor CRSC reimburses you for retired pay above the amount you earned based on longevity. Ex: a 20-year retiree is paid 50% of base pay at retirement (2.5% x yrs of svc). You are being paid at 75%. Everything above 50% payout is not reimbursed.

    Because CRSC is tax-free and CRDP is not, sometimes a smaller tax-free CRSC payment is better than a taxable larger CRDP amount once taxes are withheld.

  107. Jim L.on 22 Dec 2012 at 11:43 pm


    Awesome site, keep up the great work!

    I am a retired E-7 after a 20 year career and am rated at 50% disabled by the VA (combat related) and 40% by the Air Force for CRSC.

    I am currently drawing my Air Force retirement entitlement of $1,530 plus CRDP of $909 a month.

    Please explain to this old guy (retired 31 years ago) exactly what I would be paid (not $ amount) if I elected CRSC during the annual selection (which is going on now).

    My CRSC is currently $669 and the VA offset against my retirement is down to $3.

    I am very confused . . . by choosing CRSC would I draw my current retirement (taxed), the CRSC of $669 (untaxed), and forego the VA CRDP ($909)?

    You interpretation of the guidelines covering the above will be more than appreciated.

    Thanks a million,

    Jim L.

  108. Shane Ostrom, CFP®on 26 Dec 2012 at 9:48 am

    Jim L. Your choice is:

    CRSC which would mean a retirement check with a full VA waiver amount (approx $912) and a separate $669 tax-free CRSC check. Because your CRSC rating is less than your VA rating, your CRSC check will not totally reimburse you for your VA Waiver amount.


    CRDP which is a full taxable retirement check (no VA waiver amount) and full VA comp. The VA Waiver is eliminated in 2014 with CRDP but it’s practically gone now.

    Back of the envelope I’m thinking fully taxable CRDP leaves you more take home pay than the tax-free CRSC check, unless you are in a high income tax bracket. Shane

  109. Jim L.on 29 Dec 2012 at 8:13 pm


    Many thanks for the quick reply considering you probably had more important holiday matters to take care of.

    As I currently have elected the “CRDP” option, I know what that pays me . . . what I and I’m sure others are not understanding is how the CRSC option works due to the confusing verbiage.

    However, I am quite good at math . . . applying the CRSC option on the following numbers what would the result be? Don’t worry about computing taxes or the like. Once I see how the CRSC option is applied, it will be crystal clear.

    Retired pay: $1,530

    CRDP: $907

    CRSC: $669

    One last question, what is the difference between “full VA waiver” and “VA waiver”? You said “full VA waiver amount (approx $912)” while my pay statement on My uses the term “VA waiver = $3”. I gather those terms differ between the CRSC and CRDP options?

    Shane, I will leave you by quoting the title of a 1967 musical comedy, “You are a good man Charlie Brown”!

    And sir, you can take that as a compliment for the great work you are doing. Keep it up!

    Jim L.

  110. Fred Bon 08 Jan 2013 at 11:37 am

    Thanks for the previous information Shane, I do have one more question, my csrc rating is also 70%, I didnt give you that information in my last conversation with you.
    What exactly does the crsc letter mean by debiting my ex wife, I was told by the VA rep that it was a couple months different of payment if she receives to much money but the benefits center here locally has told me they go back to the year on my letter which is 2011 va and 2005 crsc and debit her, this really doesn’t make sense to me as I don’t see how this would be her fault or quite frankly mine and if this money isn’t paid they will hold retro pay and in the end of the wait debit me for it and ill get what is left!
    I have received what I thought I was going to from the VA in retro pay since my reward letter but from CRSC I received a amount totaling a few months that says retro pay and still have not gotten a clear answer on what that was from and still am waiting for the rest!
    If you can clear any of this up for me I would be grateful for your expertise! Thank you Fred B

  111. Daryl Shawon 12 Jan 2013 at 10:25 pm

    I was medically retired at 30% army in May of 2012 with 8+ years of service, and 60% by VA. I have since been increased to 80% VA. Also I contracted Lyme disease the month before retirement and it was not rated by the Army.
    1st question, is there a way to get the Army to rate the disease, I still have it, it was not caught in time to treat.
    2nd question, should I be getting CRDP, if so when??

  112. Mark Pratton 09 Feb 2013 at 9:27 pm

    Shane, I should just have quit reading scenario’s long ago my head hurts. I have 26 years in the miitary for pay purposes. I am a 03E and was chapter 61 disability retired at 70% two months ago and receive 100% VA disability. My NARSUM states all of my injuries as evidenced by LOD’s are combat related.It seems the base pay is 5500 and 70%=4100 or so and va around 3000. Points total around 3300 so around 9 years of which almost 6 of that is real active duty and the rest drill time, annual training etc.
    I am waiting for all of my info back from dfas to see where I stand. I have been yanked back and forth on this emotionally. I do have 20 year letter and I believe if I would have taken the age 60 compulation it would have totalled around 1500.
    Also I already sent VA a signed VA waiver for whatever reason. I know this is probably all rather simple and I’m thinking the outcome is not going to be one I hope for. I did go in the service prior to September 23, 1975 for CDRP tax free purpose but for some reason I’m thinking 20 years reserve/active doesn’t cut it. Did I make a mistake becoming disablity retired and not waiting for my reserve retirement at 60.
    Sorry for the long post now I REALLY have a headache and gave you one too.

  113. Mark Pratton 10 Feb 2013 at 8:22 am

    Shane, one more piece of the puzzle that may or may not matter is I was on active duty in Iraq when my injuries occured.

  114. Shane Ostrom, CFP®on 12 Feb 2013 at 7:00 am

    Pratt, Chap 61 retirement is considered an active duty retirement. That’s why you get retired pay immediately and don’t have to wait until age 60. As a result you only get to use your active duty time served in the retirement pay computation. Eligibility for CRDP requires a 20-year(+) active duty retiree; you have 9 years of active serve. This means you are only eligible for CRSC. CRSC being combat-related means the nature of your disabilities/illnesses must be determined by the Service as being combat-related.

    You need to apply to your Service for CRSC. The outcome of your Service CRSC application will determine how much CRSC pay you will be awarded. The CRSC pay is to reimburse you for the amount of Service pay being withheld due to the VA Waiver in your Service retirement pay. The VA Waiver is simply an agreement you sign that states you agree to waive (decrease) your Service retired pay in order to accept VA compensation for a disability. If you don’t sign the agreement, you can’t get VA compensation. It’s a law thing. CRSC reimburses the amount (some or all) of the retired pay decreased by the VA Waiver in your pay. Shane

  115. Mark Pratton 12 Feb 2013 at 8:39 am

    If I understand you correcty then it would be 2.5 x number of years. If it is all determined to be crsc related would I get all of that 2.5 x 9? Thanks for your response. How would I have an idea of how much I would get? Hopefully not less than I would have gotten since I’m almost

  116. Mark Pratton 25 Feb 2013 at 8:53 am

    Still seeking a good answer I can understand. Disability retired at 70% DOD, 100 VA IU. I had 26 years with my 20 year letter long before injuries. Breakdown of sevice is 3300 and some odd points. I’ve done actual active duty of probably around 6 years with the rest reserve/guard points adding up the rest. When or if will I be compensated for my service other than my VA disability? An answer would be appreciated. I saw back in 2011 you told a lady something about a lump sum. Do I get any retirement? I have not applied for crsc because according to those folks I must get a disability check first. What if I’m not eligible for DOD disability. Still extremely confusing to me. Please respond.

  117. Tomon 16 Mar 2013 at 11:10 pm


    Retired 1 NOV 10, VA decision 5 FEB 13 of 70% and $1483.00 per month, 7 March CRSC 60%, retired Army 27.4 yrs, high three $9704.00. How does it look would be most advantageous continue CRDP or take CRSC? Still waiting on DFAS for calculations.


  118. Shane Ostrom, CFP®on 18 Mar 2013 at 7:42 am

    Tom, your choice comes down to: a) CRDP which = restoration of full retired pay and $1483 from VA or b) CRSC which = retired pay with VA Waiver of $1483, VA at $1483 and CRSC at $1189. Since CRSC won’t fully reimburse you for your VA Waiver amount, you are left with a $294 hole in your retired pay.

    If your marginal tax rate is say, 25%, then elimination of the $1483 VA waiver in your retired pay due to CRDP means $1483 – 25% leaves $1112ish. The CRDP tax bill is approx. $371. CRSC tax-free is worth $1189 but your retired pay won’t be fully restored since the VA Waiver in your retired pay will be $1483, leaving the $294 hole.

    This is very back of the envelop but CRSC seems slightly better.

  119. Tomon 19 Mar 2013 at 8:05 am


    So if I take the CRSC I will receive:

    approx $6600 (ret pay) tax free and 1180 CRSC (tax free) ?


  120. Mandyon 25 Mar 2013 at 4:10 pm

    Thanks for this very helpful discussion. I have found conflicting information about reserve and guard eligibility for CDRP with a 20 year letter. My husband is receiving a medical retirement (40%) from the air national guard, 24 years total, has his 20 year letter with 16.9 active years and is rated 50% by the VA. (He’s not eligible for CRSC)

    The VSO he spoke to said he IS eligible for CDRP immediately because he has 20 ‘good years’ and pointed him to this link (after I said he must be mistaken from what I’ve found online!)

    Thank you!

  121. Shane Ostrom, CFP®on 28 Mar 2013 at 11:33 am

    Mandy, I researched the situation you write about and discussed it with several experts to include DFAS. Here’s the rest of the story. The law can be a very confusing thing.

    First off we must understand retirement rules. Active duty members get paid immediately upon retirement with either 20(+) years of service or medically retired with <20 years of service. Reserve and Guard members with 20(+) “total ‘good’ years” of service get paid at age 60 or if medically retired they get immediate pay but only for their “active duty” years. A “medical retirement” (Chapter 61) is by law an “active duty” retirement and that is why a Reserve or Guard member gets paid immediately under medical retirement laws–but only for their “active duty” service time.

    What the information you write about actually means is that a Reserve/Guard member will qualify for CRDP when they turn age 60 as that is when they can count all their years of service–“total” good years. Until age 60, only their active duty time can count by law and that’s less than the 20 years of service necessary to qualify for Reserve/Guard CRDP.

    In the past, DFAS was requiring the 7200 points for Reserve/Guard members for CRDP purposes even after the member turned age 60. Now a 20-year NOE Letter will get CRDP upon the member turning age 60.

    Hope this helps…Shane

  122. Christensenon 03 Apr 2013 at 6:13 pm

    Mr. Ostrum,

    First…thank you for writing this article. I am currently being medically retired and I was told that I would receive both CRDP and my retirement pay, but now I am hearing the opposite now that I have completed my board. I read your article and something doesn’t seem right with this statement.

    “In other words, the original concurrent receipt laws that state you can’t be paid twice still apply when it comes to disability pays. If the VA pays you for your disabilities, you can’t receive Service disability pay at the same time.”

    I was told that you will get paid either with Method A (Disability %) or Method B (Years of Active Service). As a 14 year RegAF 0-4…would I get CRDP if I just chose to utilize Method B in which I would not be paid for disability?

    Method A: 40% unfit is 7000*.40= $2800; – VA off-set (90% VA or $1689)


    Method B: 2.5*14 years*7000= $2450; then add my $1689 VA= $4139.

  123. Shane Ostrom, CFP®on 05 Apr 2013 at 9:25 am

    Christensn, with 14 years of service, you are not eligible for CRDP. CRDP requires both 20 years of service and a VA rating of 50% or greater. With 14 years of service you are only eligible for CRSC assuming you can qualify based on combat-related injuries or illnesses. CRSC restores retired pay for years of service only. Ant retired pay over the amount due to years of service is based on your disability rating and not restored by CRSC…Shane

  124. Doug Spenceron 05 Apr 2013 at 6:09 pm

    Shane, I have been blessed by your article to understand the statement CRDP is taxable versus the VA compensation being non taxable. I am currently rated 100% by the VA for service connected disabilities as a result of “presumptive illnesses” from service in Vietnam. I retired from reserve and active duty with 37 years of service. I was diagnosed and treated for Prostate cancer in 2002, however due to ignorance, I didn’t file a VA Claim until 2006. The result was a denial of VA rating (rated a 0%) and given a special monthly compensation of $96.00. This decreased my retired pay when I retired in 2008 by the same amount. I was again diagnosed with one of the presumptive illnesses in May 2012 (multiple myeloma). VA has since rated me at 100%. I currently receive $3073 in VA compensation and my retired pay is $2302, which includes the CRDP. Which of these two concurrent receipt options are more beneficial to me? I am going to talk to a VSO rep soon.

  125. Shane Ostrom, CFP®on 08 Apr 2013 at 7:34 am

    Doug, since you already receive CRDP at the maximum amount, your only other option is CRSC if the nature of your illnesses/disabilities are combat related. You have to apply for CRSC through your Service. The VA has nothing to do with either of the concurrent receipt programs. You have nothing to lose by applying for CRSC. You will be paid according to which one provides the greater benefit. CRSC would provide a tax-free benefit versus the CRDP which is taxable. Shane

  126. Andrewon 21 May 2013 at 5:04 pm

    I have CRSC at 90% rating of $237/month, I was just up’ed to 100% but was told not to “reapply” for CRSC, I was in 4.5 years and everything is combat/service connected, but why is CRSC so low?? It seems really unfair for someone with a high rating to get so little.

  127. Rodon 25 May 2013 at 8:45 pm


    Lots of good info here. I am trying to figure my retro pay 100% IU CRSC. No one has addressed this aspect from the award letter.

    If I take the Amount Withheld and multply by the number of months, this should add up to my retro pay. Correct?

    Total VA Benefit Amount Withheld Effective Date

    $2924 $2127 Feb 1, 2012

    $2924 $2050 Sep 1, 2012

    $2973 $1571 Dec 1, 2012

    $2973 0.00 Jan 1

    Retro Pay: $2127 x 7 (Mar-Sep) = $14,889
    $2050 x 3 (Oct-Dec) = $6,150
    $1571 x 1 Jan = $1571

    Total Retro Pay = $22,610

    Are my calculations correct?


  128. Shane Ostrom, CFP®on 29 May 2013 at 10:00 am

    Rod, that should put you in the ballpark. I’m assuming you are a 20(+) year retiree with no Service medical/disability rating and not a medical retiree with less than 20 years of service. Shane

  129. Tinaon 15 Jun 2013 at 5:27 pm

    Hi, I was medically E-7 retired in 2011 at 18.4 from the AF. Original disability 30%, initial VA rating 40%, just informed VA rating now 80%. I recieve $1827 gross in retirement pay DOD. I started recieving $1503 of my “retirement” pay from a VA treasury deposit. I dont understand this process, if I should expect 2 checks since im now over 50%. When, what, or how now that Im rated at 80%.

  130. Shane Ostrom, CFP®on 17 Jun 2013 at 7:02 am

    Tina, the fact that you didn’t reach 20 years of service (I assume that’s what the 18.4 refers to), you are not eligible for CRDP, regardless of your VA rating. This means your only option is CRSC. You have to apply for CRSC from the AF. If awarded CRSC, you would get 3 pays: Service retired pay minus a VA Waiver amount, VA compensation and a CRSC from DFAS. The CRSC is to reimburse all or some (depending on your CRSC rating) of the amount being deducted by the VA Waiver in your Service retired pay. Shane

  131. Arieneon 03 Jul 2013 at 8:57 pm

    I guess I’m slow..I’m sorry if you have already answered this question..I have 5 yrs service AD when i got back from Iraq where I got hurt. I got medically retired from active duty. I get 70% from the VA only, but I was told I could also get CRSC is that correct? I’m sorry If this is a repeat question.

  132. Shane Ostrom, CFP®on 05 Jul 2013 at 7:49 am

    Ariene, Being medically retired and receiving VA compensation, you are eligible for CRSC. However, CRSC restores the retired pay amount you earned due to years of service. Just to set your expectations, with 5 years of service, you may get some money from CRSC but it won’t be a windfall amount–something is better than nothing. 5 years of service at 2.5% per year is 12.5% retired pay multiplier. Assuming you are Army, here’s the CRSC site. Best wishes…Shane

  133. Gregon 06 Sep 2013 at 8:16 pm

    I retired in Feb 2013 after just under 21 years but was medically retired at 60%. I took the CSB Redux at 15 years. I just received my 100% VA rating and am being told by DFAS I don’t qualify for concurrent receipt because of the redux. Is this true?

  134. Shane Ostrom, CFP®on 09 Sep 2013 at 8:08 am

    Greg, I’m a bit confused. Were you Guard or Reserve? Were you retired under REDUX at 15 years of service or were you medically retired with 20(+) years? One or the other. Did you have 20(+) years of “total credible years” with both Guard/Reserve time and active time or was it 20(+) years of all active duty years of service. Shane

  135. Shane Ostrom, CFP®on 10 Sep 2013 at 1:39 pm

    Greg, Bottom line is that if you receive retired pay and you receive VA disability at 50% or greater, you are eligible for CRDP. If your disabilities are the result of combat, you are eligible for CRSC regardless of VA rating or years of service. Shane

  136. Michaelon 04 Oct 2013 at 9:39 am

    Hello Group,

    I would like to post a question that may have already been posted and answered. If so, please forgive me.

    I am a reservist that has my 20 year letter

    I am currently on Mobilization Stateside and in a WTU.

    I have received MEB / PEB and VA ratings as follows:

    Military: 90%
    VA: 100%

    Now, I am being medically retired while on active duty and not as a reservist. The disabilities are service connected and combat related,

    With the 20 years of reserve time, will I qualify for CRDP or will I get only one Benefit check from either Military or VA (which ever is greater).

  137. aceon 08 Dec 2013 at 10:30 pm

    Need clarification..retired after 20 yrs. Ret. Sep.1 of 2010 applied for va disability jan 2012. rated at 70% dec 1 2013 have not recieved any payment yet what should i expect i ve called dfas and not confident in their responses please explain in kiss terms… thank you.

  138. Shane Ostrom, CFP®on 09 Dec 2013 at 7:35 am

    Ace, you will receive full retired pay from DFAS and VA compensation at the 70% rate from the VA. Here are the VA compensation rates/amounts. The fact that you will get full retired pay from DFAS is CRDP. Without CRDP, your retired pay would have been reduced by the amount of your VA comp. Shane

  139. aceon 09 Dec 2013 at 7:08 pm

    Shane, appreciate your timely response thanks for the info.
    I do have one more question about the time I spent waiting to get my 70% rating (retro pay) do I rate it ? I’ve seen and heard many different things. Can you clarify once again. Thank You.

  140. Michaelon 10 Dec 2013 at 2:53 pm

    I am confused on CRSC as a CH 61 retiree. My military retirement orders make no reference to CH 61.

    I have active and reserve time and am an 04, permanently, physically, medically retired at 60% or $4,293 currently (tax free due to 26 USC 104, YES) with about 4 years total active duty time and 18.75 years for Basic Pay.

    I am rated 100% CRSC and 100% VA w/ home bound Special monthly compensation at $3,300. I am mostly home bound and in pain.

    Like some others on here, every time my VA % has gone up, I lose more of my DFAS 60% tax free pension. I also receive no CRSC after applying for it in 2012 via US Army HRC at Fort Knox when I was 60% CRSC. I was increased to 100% CRSC this year by HRC and I just called DFAS and for some reason they never re-calculated my CRSC entitlement based on 100% CRSC. They are going to now re-calculate my CRSC.

    Do you think I will get any CRSC money based on 100% CRSC?

    Would the proposed Senator Harry Reid legislation harm my current VA and DOD pay, as I have only 4 active duty years?
    Do you know what statute 1204 is authorizing my retirement?
    Thank you sir,

  141. Shane Ostrom, CFP®on 11 Dec 2013 at 4:08 pm

    Michael, CRSC only restores retired pay based on your years of service. The vast majority of your retired pay is based on your disability rating from the Service. No form of concurrent receipt (CRSC or CRDP) replaces Service retired pay based on a disability rating. Shane

  142. Michaelon 11 Dec 2013 at 5:47 pm


    Under the new Jan 2013 CRSC rules, wouldn’t we take my 4 yrs of AD = 10% X $6,800 =$680 month CRSC?

    Do you think there is a good chance CRDP will be made available to non 20 yr service members like me?

    Also, what part of the legislation is making my remaining DOD disability pension of $978 tax free? VA is $3,252 and both together equal $4,230. I am glad for what I have, I just do not understand why I should be penalized from getting any CRSC even though they are combat related injuries at 100%. VA is 100% too.

    I also do not follow your last sentence above. How can I reach you to discuss this matter please? Mornings better?

  143. Robert Fisheron 03 Jan 2014 at 1:18 am

    I was wondering if anyone could provide some insight for me concerning CRSC and CRDP

    I retired in 2002 after 24 years and was granted 60% from the VA. In 2006 I was awarded a 100% service connected rating and have been receiving my full retired pay and VA pay ever since.
    After receiving conflicting information on my eligibility I submitted my paperwork to the Army for CRSC and received a response that they verified my disabilities (which total 230% when added separately) but they stated they did not find the connection for the combat or combat training requirement.
    My injuries are primarily related to my 14 years in Special Forces, my 250 parachute jumps and my years on a Special Forces Dive Team. Additionally, I have a 20% disability on both feet for the frostbite I received in Ranger School. As I understand it, if awarded CRSC, it will apply to my retirement pay and convert some or most of it to a non-taxed, non-devisable status.
    I would think any injuries related to jumping, combat diving, combat skiing (during a unit training event in gortex with a rucksack and weapon) and/or Ranger school fall under “Combat Training” and should meet the criteria.
    If you have any suggestions or experience in this area, please comment. If I am mistaken and I am not eligible please let me know that too

    Thanks in advance

  144. Shane Ostrom, CFP®on 06 Jan 2014 at 7:32 am

    Robert Fisher, you may already know this but I’ll provide this info anyway to cover the bases. This Army site has a link to FAQs at the bottom. Scroll thru the FAQs to find the info on qualifying disabilities, the connection with the Service and combat-related actions, and required documentation. Then read the part about the appeal process. If armed with the rationale, policy and logic behind the approval process plus the nature of the connection between injuries and combat training, perhaps you can put together a clear and concise pkg that will get approved. Keep the pkg to the point and provide the specific info need to make your case. Give the Board the answers to the test so to speak and don’t build a watch. If you already tried this, I’m afraid they don’t see it your way. Shane

  145. HTon 18 Jan 2014 at 12:54 am


    Please help me figure which is most advantageous as I have just received a letter from DFAS asking should I keep CRDP or change to CRSC:

    Retired Pay – $6880 per month

    SBP – $449 per month

    VA waiver – $1.37 per month

    80% VA rating (CRDP) – $2013 per month

    60% awarded CRSC – – $1406 per month

    What should I do?


  146. Shane Ostrom, CFP®on 21 Jan 2014 at 6:06 am

    HT, With CRSC, you continue to have a full VA Waiver amount docked from your Service retired pay. In return you receive $1406 in CRSC reimbursement. You’re swapping taxable pay for tax-free pay. A full VA waiver is $2013–not what you see under VA Waiver now. CRDP is the total eliminate of your VA Waiver this year and from now on. So with CRSC, you give up $2013 in retired pay for $1406 in tax free CRSC. I don’t know your tax rate but $2013 minus 20% in taxes equals $1611. That’s still more than the CRSC payment. So unless your tax rate is 25% or more, you are better with CRDP. Shane

  147. HTon 21 Jan 2014 at 1:02 pm

    Thanks Shane tax rate was 17% — so thanks for the info.


  148. SFC Michael Roberts, USA, RET,on 26 Jan 2014 at 11:37 pm

    I retired in 1985 with a 50% Disability Rating after 20 years service. I was approved for Concurrent Receipt under CRSC in 2004. At that time they were phasing it in over a 10-year period. Around 2008 they went to a full 100% and we did not have to complete the full 10 year phase in. I applied several years ago for an increase to my disability rating, which was denied; however, much to my surprise, last week I found $22,466 had been deposited into my bank account electronically from the CRSC . I have been looking for legislation or something that states those percentages from 2004 through 2008 had been restored to the full 100%. I have not been able to get through to DFAS. Do you think my request for a disability increase triggered an audit? I haven’t received any correspondence at all concerning any money that was owed to me-just the nice deposit made to my account. I don’t want to touch it until I make sure it’s not a mistake. Thanks!

  149. Shane Ostrom, CFP®on 27 Jan 2014 at 7:16 am

    SFC Roberts, you have many separate and independent actions and agencies involved in what you describe. First separate the VA and the VA comp from DFAS and CRDP/CRSC. Keep the payments separated in your thoughts. The VA pays VA disability compensation according to your VA rating. There is no DFAS, CRDP or CRSC involved. You state your VA rating is 50% and you state efforts to increase it were denied. So you are paid by the VA for a 50% rating.

    To get CRSC, you had to apply to the Army. Nothing to do with the VA. The Army must have approved your CRSC. You must have a letter from the Army stating that and what your CRSC rating is. The Army tells DFAS of the CRSC decision. DFAS pays CRSC.

    You were already getting CRDP–CRDP payment is automatic (anyone retired with 20 or more years of service and a 50% or greater VA rating) gets it. CRDP was being phased-in over 10 years, not CRSC. The only way to get CRDP at 100% rate and skip the phase-in period was to have your VA rating increased to 100%. A VA rating of 100% automatically told DFAS to pay CRDP at 100%; no phase-in.

    I assume after your CRSC application was approved by the Army then sent to DFAS, your Army CRSC rating was back dated. This meant CRSC back dated would have paid you more in the past than the CRDP you were getting paid. This is because for a time you weren’t getting full CRDP since it was being phased-in and your amounts were less. So a higher back dated CRSC payment filled in the gaps in pay that CRDP being phased-in didn’t pay you.


  150. SFC Michael Roberts, USA, RET,on 27 Jan 2014 at 10:09 pm

    Thanks for answering so quickly. I am still somewhat confused because I did apply for the CRSC and was approved. Does this mean they were paying me at the CRDP rate those first few years when I was getting it in 10% increments when it should have been the 100% CRSC. The pay statement indicates CRSC. I tried again today to get through. Guess I’ll try calling at 6A West Coast time. Thought we would get some kind of explanation by this time but nothing yet. Thanks again for your time.

  151. Marshall Harrellon 01 Apr 2014 at 5:07 pm

    What are the implications of combining military service (20 years) with civil service as it relates to VA Waiver/CRSC/CRDP? Trying to ascertain whether any portion of my income might not have to be waived if I combine annuities.
    Thanking you in advance.

  152. Shane Ostrom, CFP®on 02 Apr 2014 at 6:57 am

    Marshall, CRDP and CRSC are payments to restore your military retired pay denied by the VA Waiver. If you combine military and civilian time into one larger civilian retirement check, you forfeit your military retired pay. No military retired pay, no CRDP, CRSC or VA Waiver.

  153. Marshall Harrellon 02 Apr 2014 at 10:20 am

    Hello Shane, thank you for taking the time to respond. I had read the CSRS/FERS Handbook reference that says that under certain circumstances it was possible to combine service if I was receiving military pay that was awarded due to
    “unless one of the following is true.
    The employee is receiving military retired pay that was awarded:
    • On account of a service-connected disability incurred in combat
    with an enemy of the United States; or
    • On account of a service-connected disability caused by an
    instrumentality of war and incurred in the line of duty during a
    period of war;”
    If the VA Waiver/CRDP/CRSC language is not applicable — what should I be looking for in my pay/files that would reflect that some or all of my pay meets the exceptions listed above.
    Thanking you in advance for your time.
    Sincerely, Marshall

  154. Marshall Harrellon 02 Apr 2014 at 1:47 pm

    Hello again Shane, was doing more reading and still trying to sort things out. Page 16 of CSRS/FERS Handbook Chapter 22 says that:

    “For military service to be credited, the employee must waive military retired pay for CSRS purposes, even if it has been waived for other purposes (such as VA benefits). NOTE: Benefits from the Department of Veterans Affairs are not military retired pay.”

    At the bottom of the same page it says:

    “NOTE: Individuals whose civilian retirement is not based on disability need not renounce VA benefits to receive credit for military service if they waive military retired pay for CSRS purposes.”

    My note -FERS follows the same rule set on this page.

    So, I think that if I am receiving a VA disability check that it still continues even if I waive my military retiree pay – True?

    The twist is that I previously had to waive some of my retired military pay in order to receive my VA benefits and now the VA waiver is going to be either phased out (CRDP) or offset by CRSC.

    In the past, had I bought my time, I would have given up the NET pay after the VA Waiver AND kept the VA benefit check. BUT, going forward, I will be made whole (or nearly so) on my retired pay plus get my va benefit. So now I have to look at my GROSS military retirement pay in order to decide if combining my time makes sense. I will still get my VA benefits check if I combine annuities. Is that a close enough understanding?

    I appreciate your insights.
    Warmly, M

  155. Carrieon 16 Apr 2014 at 8:10 pm

    Very confused even after reading all the post. My husband retired after 20 years of active duty. Just received his VA claim and he was awarded 100%. The paperwork states if your va compensation is greater than your retirement pay; you will not received retirement pay? Is this referring to only people that are Medically retired ? (He is not medically retired) Will he still receive full retirement pay and full va compensation?

  156. Shane Ostrom, CFP®on 17 Apr 2014 at 6:58 am

    Carrie, if you are a 20(+) year retiree and have a VA rating of 50% or greater, CRDP ensures you get full retired pay and full VA comp. That paperwork is if a person does not qualify for CRDP (less than 20 years of service and VA rating 40% or less). Shane

  157. Dawnon 08 May 2014 at 10:16 pm

    So I have been reading and yes I am still confused simply because I can’t track one response with my situation. My husband served just over 20 years active duty and has been medically retired after the 20 years of service as an E6 as of March 30, 2014. His VA rating was estimated to be 70% initially but ended up coming in at 80%. I received his first months VA retirment with on SBP deduction and FWH, no problem I get that. I also received his VA disability check, no deductions and yes I get that. Well now I am in month number 2 of his retirement and just got his statement from DFAS for his retirement which shows the SBP deduction, the FWH and this VA Waiver of $336.

    Gross Pay: 1860.00
    VA Waiver: (336.00)
    SPB: (121.85)

    Does he qualify for either CRSC or CRDP? I am so confused. Was not expecting a deduction for anything other than SBP, FHW, SWH, medical insurance (eventually) and dental insurance (eventually) since we were told they would be concurrent.

  158. Shane Ostrom, CFP®on 09 May 2014 at 7:30 am

    Dawn, On one hand you say he retired with over 20 years of service and a 80% VA rating. That would make him CRDP eligible which would mean he should have no VA Waiver amount deducted from his retired pay. On the other hand, he does have a VA Waiver in his retired pay meaning he’s not CRDP eligible. That makes me question the part where you say he was “medically retired.” Is he Reserve or Guard? If so, a medical retirement is an active duty retirement; not a Guard/Reserve retirement. This means his retirement only counts active duty time and the fact that he still has a VA Waiver deducting money from his retired pay implies he does not have 20 years of active duty time. He may have 20+ years of total time (Reserve+Guard+Active) but only the active counts.

    If what I describe above isn’t the case, there is a problem that needs to worked out with DFAS. DFAS doesn’t seem to think he has 20 active years of service.

    Regardless of above, he is eligible for CRSC. He should apply for CRSC to see if he qualifies. Each Service has a CRSC web site. You have to apply to your Service. See this DFAS page for info.

    Hope this helps…Shane

  159. Gregon 29 May 2014 at 3:38 pm

    I’ve been trying to find out how they came up with the magic number of 50% ? It seems to me that you would have more people trying to work the system and fake injuries to get to the 50%. Plus this would create more work for the VA because of all the appeals from people trying to get that 50%.

    I don’t understand why they wouldn’t make it the same for all. I’m not retired yet but I will post my calculations for what I will see with a VA rating (Cumulative Numbers). E-7, 22 yrs

    10% = $19
    20% = $39
    30% = $60
    40% = $86
    50% (W/ CRDP) = $698 (WTF?)
    VA waiver = Crap!!

    Thanks for the article. I’ve been trying to figure this out for over three days when I stumbled on this site. Keep up the fight in the halls of Congress. It would be nice to have one of those quick links to write your Congressman.

  160. Josephon 24 Jun 2014 at 11:59 am

    I am getting more and more confused as I read about CRSC.

    I was medically retired with 18 years 11 months of active service. I have a 70% disability from the Army and a 90% disability from the VA. I recently received my approval for CRSC at a 90% rating with an effective date 2 1/2 years ago. My confusion comes in when I start seeing the offset and withholdings. Should I anticipate CRSC to make any difference in my monthly pay?

  161. Shane Ostrom, CFP®on 25 Jun 2014 at 6:58 am

    Joseph, let’s compare and contrast what would have been before CRSC and now that you have CRSC. Before CRSC, you have have received your full VA compensation at 90% rating and your Service retired pay would have been docked by the full amount of your VA comp. You would have received the remainder of your Service retired pay after the VA comp was subtracted out by the VA Waiver (VA Waiver would equal full VA comp).That’s it before CRSC.

    After CRSC, you get full VA comp and you’ll get Service retired pay minus the VA Waiver as above, but now you will get a portion of your retired pay back in a CRSC check. The CRSC helps replace some of what the VA Waiver removes from your Service retired pay.

    You won’t get all your Service retired pay back so the CRSC won’t replace all your VA Waiver amount. This is because you can’t get paid twice (Service and VA) for your disabilities. The CRSC check ensures you at least get the Service retired pay you earned due to your years of service; the 18+ years.

    Technically, your Service retired pay is based on your 70% disability rating from the Service. 70% is more than you earned due to years of service. Years of service is figured at (2.5% times years of service) or 45% payout. CRSC ensures the VA Waiver doesn’t deny you the 45% you earned. Shane

  162. Jonon 02 Jul 2014 at 3:53 pm

    So I am confused as to why the Army will allow a rating for a service member if they are already over 20 years of service.

    I was given a 80% percent rating from the Army and a 100% rating from the VA with 22 years active duty time and 70% of my disability is combat related. My understanding is both Army and VA will be tax free however I will not get 80% from the Army and will get 55% from the Army based on length in service of 22 years. I was also told that I will not get anything extra as in CRSC or CRDP. Is this true?

    Thanks in advance for your reply.


  163. Shane Ostrom, CFP®on 03 Jul 2014 at 9:03 am


    If you were medically retired, your Service disability rating determines your retired pay multiplier. The maximum retired pay multiplier allowed is 75%. Given your 80% rating, you would get the 75% max multiplier (75% times hi-3 base pay).

    If you are not medically retired, your retired pay multiplier is 55% for 22 years of service [(2.5% times 22 years) x hi-3 base pay].

    Medical retirements can happen any time you are considered no longer fit to serve even if over 20 years of service. Also, combat related injuries can earn you a disability rating which allows for tax-free retired pay.

    With over 20 years of active duty service and a VA rating over 50%, you will get CRDP automatically. This means you will get full retired pay (if your pay multiplier was 55%) and full VA compensation.

    You are also eligible for CRSC if you apply. The primary benefit to CRSC is tax-free restoration of retired pay (which you already have under CRDP) or it allows medically retired members with less than 20 years of service to have their Service retired pay restored.


  164. jonon 08 Jul 2014 at 11:16 am

    I am beyond confused. I was medically retired last july after 7 1/2 years USMC PDRL. 30% DOD and 90% VA. I was approved for CRSC for 90%. None of how this process works makes sense.

  165. Shane Ostrom, CFP®on 09 Jul 2014 at 7:08 am

    Jon, You will get full VA disability compensation at the 90% level. Your retired pay from the Service will be docked dollar-for-dollar for the amount of VA comp you receive–this is known as the VA Waiver because you have to waive your retired pay to receive VA comp. A separate CRSC check will insure that you get at lease enough Service retired pay to pay you for your 7 1/2 years of service.

    Examples: If the VA Waiver totally wipes out your Service retired pay, the CRSC will reimburse you for the amount of retired pay you earned for 7 1/2 years of service.

    If the VA Waiver wipes out a part of your retired pay and you get some retired pay, the CRSC check will make up the difference between your partial retired pay and the amount you earned due to your 7 1/2 years of service.

    If the VA Waiver wipes out a part of your retired pay and the amount remaining is already worth your 7 1/2 years of service, there is no CRSC check because the CRSC check is to insure you get paid for your 7 1/2 years of service and you already are.

    Jon, if this is still unclear don’t feel alone. Call MOAA ask for me. Let the Service Rep who answers the phone know we have been communicating on the blog.


  166. Stephanieon 26 Aug 2014 at 10:37 pm

    I’m so confused about the CRSC, my husband was just approved forgot it and we have been working with a guy at the dept of the navy and they are telling us we will get back pay from the last five years, which is when he was release from the Navy after serving 10 yrs , my husband getting 60% from the VA and he was just switched from TDRL to PDRL, which made him lose 400.00 from his ret pay, .. We have been trying to figure out what his CRSC pay will be and if what the dept of navy is telling us about the five years of back pay is true ..

  167. Stephanieon 26 Aug 2014 at 10:40 pm

    I’m so confused about the CRSC, my husband was just approved forgot it and we have been working with a guy at the dept of the navy and they are telling us we will get back pay from the last five years, which is when he was release from the Navy after serving 10 yrs , my husband getting 60% from the VA and 40% from the ret military he was just switched from TDRL to PDRL, which made him lose 400.00 from his ret pay, .. We have been trying to figure out what his CRSC pay will be and if what the dept of navy is telling us about the five years of back pay is true ..

  168. Shane Ostrom, CFP®on 27 Aug 2014 at 7:18 am

    Stephanie, CRSC can pay retro pay if the member is eligible. Bottom line is that if you haven’t applied, do. You’ve got nothing to lose and amy gain something.

    CRSC ensures that your husband gets enough of his Service retired pay to at least account for his 10 years of service. Because the acceptance of VA compensation is subtracted from Service retired pay, many members are denied retired pay they earned through their years of service. CRSC is to make sure those 10 years of service are not denied because that pay was earned with the service.

    Here’s a quick burst on how it works. Subtract the VA Waiver from gross retired pay. When you see what’s left, net pay, is that amount more or less than his 10 years of service is worth? If the net pay is more than 10 years of service, even if qualified for CRSC, he won’t get CRSC money because he’s already getting paid for his 10 years. If the net pay is less than his 10 years of service is worth, then CRSC will bring him up to the amount for 10 years of service.

    To get a rough idea, divide his gross retired pay by 40% (his Service/military disability rating if I understand correctly). Multiple that amount by 25% (2.5% x years of service).This amount represents the amount of retired pay earned by years of service. Compare this amount to his current net pay–after the VA Waiver. If he’s owned money, CRSC will bring him up to the 10 year amount. If he’s already paid an amount equal or more than the 10 years, he may be eligible for CRSC but he won’t get more money.

    Hope this helps…Shane

  169. Torion 17 Sep 2014 at 2:48 pm


    Thank you so much for this very informative article!

    Have a question…I have read online soldiers retiring Chapter 61 always get their 1405 time added. I recently saw a post online from a soldier that was going out on a Chapter 61…he had 19 years active service but because he had enough points in 1405 time, it put him over the 20 year mark and therefore “allowed him to get CRDP” (he stated that you can’t use 1405 to make a length of service 20 year retirement…this only applies if you are Chapter 61).

    So my question is…if a soldier has 19 years active time but his 1405 points added in get him over 20 years on a Chapter 61, will he then have a choice of CRDP or CRSC (whichever is more advantageous)? Or does he need the full 20 active duty time to have that choice?

    Thanks for your help!

  170. Shane Ostrom, CFP®on 18 Sep 2014 at 10:54 am

    Tori, our contacts at DFAS ensure us that a Chapter 61 retirement is an ‘active duty retirement’ which means only active duty time counts for CRDP/CRSC pay eligibility if you are under 20 years of active duty service. CRDP requires 20 years of active service or 20 years total years served if Reserve/Guard at age 60.

    It is this ‘active duty’ status of a Chapter 61 retirement that allows a Reserve/Guard member to get immediate retired pay without waiting until age 60. However, at age 60, all total time served is considered for your years of service making you eligible for CRDP. Shane

  171. Torion 18 Sep 2014 at 1:51 pm

    Thanks, Shane, for your quick response.

    I wanted to post the link from the online forum that I was reading where I came upon this information. You can see where he cites certain law code (ex., Title 10 US Code 1201 -1208) that he says allows his 1405 time to be added to get him to a 20 year Chapter 61.

    Do you have any thoughts on the posting? Everything seems like such a fight (especially when you need to get lawyers involved to interpret law!) – wish the process was easier.

    Thanks again for helping regular folks like us understand all this stuff!

  172. Kiton 31 Oct 2014 at 12:09 pm


    I recently retired with 20+ years, I receive $2,909.00 as retirement pay. I checked on ebenifits for my VA rating which I noticed was 100%. I also noticed it said: current benefit paid is as follows:

    Gross Benefit Amount $3,066.32
    Net Amount Paid $157.32
    combined evaluation 100 percent

    so I subtracted the GBA from my retire pay 2,909.00 which equals $157.32…

    my question is: with being rated 100% from VA is 157.32 my monthly VA compensation…what is the meaning to that net amount.

    I called VA and they stated they can not explain anything until I get my packet in the mail. that should be here in the next couple days. i just hope thats not a mistake…My claim closed on 28 Oct 14.

    Thanks in advance,

  173. Shane Ostrom, CFP®on 03 Nov 2014 at 7:31 am

    Kit, so your VA claim was recently awarded; so recent that you haven’t received the award letter from the VA yet. Once a VA rating and compensation is awarded, there is a lag time as the VA data flows to DFAS through their pay systems. Once the data hits DFAS, all the final compensation audits are completed and the full picture is developed.

    At this point, the final picture will be that you receive full Service retired pay and full VA compensation. You will qualify for CRDP because you are a 20-year(+) retiree and you have a VA rating of 50%(+).

    Until the final picture, you receive boilerplate form letters that can be confusing due to incomplete information because the whole story is not known at this point. Given the info you provide, I am confused. The $3066 does correspond to a VA award of 100%. Before CRDP is finalized, your VA comp is subtracted from your Service retired pay by the ‘VA Waiver’. This (Retired pay – VA Waiver = 0) leaves you no retired pay until CRDP kicks in. You won’t go with an income gap as pay issues settled since you are made whole on the retired pay payments with retro pay until CRDP is fully implemented.

    I don’t know how they come up with $157.32 as net pay since the formula is (retired pay – VA comp) not (VA comp – retired pay). When the dust settles between VA and DFAS, you will get full pay–both retired and VA comp. Shane

  174. William "J" Carrocciaon 03 Nov 2014 at 5:46 pm

    I have read all the posts and stll am confused. I retired after 23 years in the Marines, I recieve 100% VA disability (permanent) and full CRDP. I did apply for CRSP but now after reading all these posts think that may have been a mistake. I have not received a response from the Dept of the Navy yet though as it has been only 5 weeks since I submitted the CRSP form. What do you think?

    Thanks much,

  175. Shane Ostrom, CFP®on 04 Nov 2014 at 7:20 pm

    Wm Carroccia, There is no problem with applying for CRSC. If CRSC is approved, DFAS and you will determine which is the best deal for you and you (or DFAS) will pick the best one.Even though CRSC is tax free, it is possible CRSC may be a smaller amount. That sometimes makes CRDP a better amount even after taxes. You will get the best amount. Shane

  176. William Carrocciaon 08 Nov 2014 at 12:59 pm

    Thanks much Shane!

  177. mike whitton 20 Nov 2014 at 12:52 am

    I am severely confused at all these various methods of compensation. Each case is different but ill give my synopsis and seek help there.

    15 year E7 with a higher 3 of E6. I was PEB with denial of further service due injury in a combat zone simulating war. I was given 50% DOD retirement and the VA concurred with addition 50% and combined the two for 100%PDRL. I was told I would receive DOD retirement pay until the VA compensation started…which is where I now see the DOD retirement pay being waived to receive VA compensation.

    Howevere, I was also told I could apply for CRSC pay due to my % of CZ/SW injuries. I am confused because I read somewhere on DFAS website where the VA comp must be waived. So if receive say 800 dollars, must I waive that 800 dollars from the VA?

    If that is the case I see where there is a waiver. Will that apply to case here to continue the 100%VA compensation plus the CRSC payment?

    What would you recomend? It doesnt look like CRSC. Waz meant for medical retirees who are PDRL. The only advantage I see to the CRSC is making portions of retirement pay tax free and all of my compensation is tax free.

    I am able to work; i dont want to apply for SSI at this point in my life. It seems that CRSC is along that line. Thanks in advance for any assistance.

  178. Shane Ostrom, CFP®on 20 Nov 2014 at 7:14 am

    Mike Whitt, it is complicated on the surface but here’s the bottom line. To get VA compensation you have to waive your Service retired pay–the VA comp is not the one waived. Because you have to waive your retired pay to get the VA comp, it is CRSC or CRDP that restores that waived retired pay IF you qualify.

    You don’t qualify for CRDP because you don’t have 20 years of service. CRDP requires a minimum of 20 years of service AND 50% or greater VA rating.

    CRSC on the other hand doesn’t care how much service time you have and it doesn’t care what your VA rating is. That’s because CRSC requires your illness or disabilities be combat-related.

    You apply to your Service for CRSC and if approved, the CRSC check reimburses you for that portion of your retired pay being currently waived that is based on your years of service. This last sentence is a critical point you need to understand.

    You were retired at 15 years of service. CRSC restores your retired pay based on 15 years of servicenot the full amount of your retired pay. This is because you were retired at a 50% factor for your retired pay due to your Service disability rating. However, for 15 years of service your factor would have been 37.5% (2.5% times years of service). So in other words, you are getting paid more retired pay than you earned thru years of service and that extra amount is due to disability.

    Two can’t be paid twice (once by Service and once by the VA) for the same disabilities. That’s why CRSC and CRDP ensure that at least you get reimbursed for the time you served. But CRSC and CRDP will not reimburse you for the extra pay you get based on disabilities.

    Apply for CRSC. It could help. It can’t hurt. Hope this helps…Shane

  179. George Hickson 01 Dec 2014 at 7:34 pm

    Shane, I am retired USAF (1974) and just received 100% disability rating from the VA. It looks like I can receive both my retired pay and disability pay due to SRSC. I lived in and was flying airplanes out of DaNang in 1968 and exposed to agent orange.

    My wife is worried that her 55% SBP will be reduced when I die. (This is due to the way DFAS, SRSC, and VA coordinate payouts) Where do I find specific documentation concerning this issue.
    Thanks for you support.

    What is your take on this issue?

  180. Shane Ostrom, CFP®on 02 Dec 2014 at 7:01 am

    George Hicks, the SBP benefit to survivors is based on the total gross (pre-taxed) SBP amount–55% of the total gross pay. It is not impacted by VA or any concurrent receipt pay programs. You can find out more on the DFAS site here. Shane

  181. George Hickson 02 Dec 2014 at 1:11 pm

    Thanks. Does this mean that the 55% is based on the new and reduced taxable retirement pay or will it be based upon my retirement pay prior to the reduction from the VA offset? I appreciate your support.

  182. Mark Petersonon 25 Dec 2014 at 3:34 pm

    Hello, Your help with this very confusing CRDP situation is greatly appreciated.

    I retired from the USCG in 2001 (regular retirement, not medical) and the VA very quickly rated me 60% disability (service related but not combat related).

    Each month I see the CRDP listed on my pay statement but as far as I can see they still take back all 60% out of my retired pay in the deduction column. I get the reduced retired pay and a separate payment from the VA for the 60% disability.

    Has the Coast Guard denied the restoration of my full retired pay. I see on Coast Guard web sites something about 100% unable to work. Is this a Coast Guard determination outside of the CRDP law. Where can I find an attorney familiar with the law to help me understand what is going on?

    Thank you, Mark Peterson

  183. Shane Ostrom, CFP®on 29 Dec 2014 at 6:57 am

    Mark Peterson, with a 60% VA rating and 20(+) years of service for a longevity retirement, you automatically qualify for CRDP. You should get full retired pay (without a VA Waiver) and full VA compensation.

    I don’t understand how you “…see the CRDP…” on your pay statement yet you think they still withhold your VA comp from your retired pay. For the VA comp to be deducted from your retired pay, you would have a “VA Waiver” amount noted on your retired pay. If you have no VA Waiver amount then something else is being deducted from your retired pay.

    The Coast Guard can’t arbitrarily deny you retired pay that falls under the CRDP law. It makes me wonder what else can be going on in your retired pay. I hope this helps otherwise we have to talk…Shane

  184. Michael Yateson 30 Dec 2014 at 7:09 pm

    I have 21 years of Active duty and just found out I being medically retired this month(VA 100%/DOD 70% combat related.) DFAS is telling me I will not get CRDP due to my retirement being chapter 61 (10 usc 1201.) Is this correct and is there a way to appeal the decision?

  185. Shane Ostrom, CFP®on 31 Dec 2014 at 6:57 am

    Michael Yates, you are eligible for either CRDP or CRSC. You will get CRDP automatically but you will probably want to apply for CRSC since it may offer a better benefit due to it being tax-free. Here are the sources for CRDP entitlement:

    DOD Financial Management Regulation, Chapter 64, para 640203:

    “640203. Physical Disability Retirement
    Members retired for physical disability who have less than 20 years of service creditable
    for the purposes of computing retired pay are not eligible for CRDP, unless they have 20 years of
    service for determining entitlement to non-regular (reserve) retired pay and are otherwise eligible
    for such reserve retired pay.” …You are over 20 years of service so no problem.


    “640401. Special Rule for Disability Retirement.
    Members retired for disability under 10 U.S.C., Chapter 61, Sections 1201 through 1222
    remain subject to the offset required under 38 U.S.C. 5304 and 5305 for any retired pay they
    receive that is in excess of the amount of retired pay to which they would be entitled under any
    other provision of law based on service in the uniformed services, had they not retired for
    disability. Since retired pay in excess of the amount calculated for years in service is still subject
    to offset under the CRDP program, a member with an amount of retired pay remaining after
    offset of VA disability compensation that is greater than the amount calculated for years of
    service, is not eligible for any increase in payment of retired pay under the CRDP program.”

    The point of the above para is that you do get the retired pay under CRDP that you earned due to your years of service but you don’t get the extra amount retired pay you will receive due to your DOD disability rating. So CRDP will pay for retired pay up to 52.5% for 21 years of service. It will not pay for the amount between the 52.5% and your 70% DOD rating since this portion is disability and not retired pay.

    Here’s the link to the DOD FMR if you need it:

    Also the proper legal reference may help:
    10 USC, Subtitle A, PartII, Chap 71, sec 1414:

    Hope this helps…Shane

  186. Gloon 31 Dec 2014 at 6:40 pm

    Please help! Like so many others here, I am still confused. I was medically retired at 28+ years of Reserve time, totaling 8+ years of Active Duty points. My military and VA ratings are both 100%. I have applied for early receipt of my retirement benefits since I’m not yet age 60. Will I qualify for CRDP?, my VA offset is 3354, and my military pay is 7676.

  187. Shane Ostrom, CFP®on 02 Jan 2015 at 7:33 am

    Glo, First, if you were medically retired, you would already be getting retirement benefits/retired pay from the date you were medically retired. You wouldn’t have to wait until age 60. But here’s where you stand assuming you are medically retired.

    While under age 60, only active duty time counts towards your retirement. Meaning you don’t have 20 years of service for retirement purposes, meaning you don’t qualify for CRDP. But you do qualify for CRSC if you apply. However, if you get CRSC, it will reimburse you for your 8 active duty years only. CRSC won’t reimburse you for all the money being deducted from your retired pay which is more than what you earned for 8 years of active service.

    At age 60, your Reserve service time kicks in. Now you have over 20 years service time. Now you qualify for both CRSC and CRDP. You will be given a chance to select the one that is the better benefit. However, once again CRDP and CRSC reimburse retired pay earned due to service time served. Any retired pay you get above the amount credited for service time will not be reimbursed. With a DOD disability rating for 100%, you are paid 75% of base pay for retirement. 28 years of service times 2.5% equals 70% for time served. Any retired pay over 70% will not be reimbursed.

  188. Gloon 04 Jan 2015 at 11:58 pm

    Based on the response above, I will be eligible for CRDP at age 60, but because I am already receiving a medical retirement at 75% of High 3, or base pay, and my Reserve retirement for years of service is 70%, then I am not entitled to any monetary receipt? Please Advise,
    G lo

  189. daveon 17 Jan 2015 at 4:18 pm

    I’m a medical retired with 16.3 years in the National Guard 40% from the VA and 40% from the Army, 30% of the VA is combat connected and 40% from the army is combat related. I just got my VA waiver put in my DFAS pay Oct 2014 it took the CRSC people a month before they got my paper work so in Nov 2014 they stated working on my case. Its been 3 months since I apply for CRSC, still have a long way to go. Will the CRSC take my VA combat related disability and my army combat related disability or just my VA combat related disability to determined my CRSC pay.
    My VA pay is 40% $586.00 but only 30% is combat related (PTSD) so the CRSC people be looking only at the 30% from the VA??.

  190. Todd Haneyon 19 Jan 2015 at 9:39 pm

    My wife is a Chapter 61 retiree. Are there any changes coming down to helo those with less than 20 years? In addition, if you cann answer this, what compensation can i expect is she passes before me? I believe the VA check is reduced substantially. If so, will i see some of her retirement to offset that loss?

  191. Shane Ostrom, CFP®on 20 Jan 2015 at 7:00 am

    Todd Haney, depending on how many years of service she has, she will get retired pay based on either her years of service or her Service disability rating whichever is greater. Since she also receives VA disability compensation, her retired pay is reduced by her VA comp. She can use CRSC to reimburse her for the reduced retired pay. All the CRSC info is in this post to include application forms and process.

    If she dies first, you can apply to the VA for Dependency Indemnity Compensation ($1254 mo tax-free). If your spouse enrolled in the Survivor Benefit Program (SBP), you can get 55% of her retired pay. There could be some Social Security but it depends on your age and whether you have kids under 16 years old. Shane

  192. Shane Ostrom, CFP®on 20 Jan 2015 at 7:04 am

    Dave, the Army will use all sources of info to make combat-related disability determinations. It’s about the nature of your illnesses and injuries and not just who issued the ruling. Shane

  193. Todd Haneyon 20 Jan 2015 at 10:20 am

    Shane i dont think she qualifies for CRSC but i could be wrong. Does everybody with a disability qualify? Her disability is major depression with delusions. A long, documented case since 1988. She served 10 active and 8 reserves before her deoression morphed into delusional thoughts.

  194. Marvinon 29 Jan 2015 at 4:47 am

    SSG. I am a army resevist with 18.5 years with 11 years of active duty time 11-B Gulf War and OIF. Waiting on meb findings. 2012 rated 80% va for PTSD 50% Gulf war, incurred-combat / Tension headaches 30% Gulf war incurred / Gout 20% Gulf war incurred / Diabetes Mellitus type ll 20% Gulf war Presumptive / TBI 10% Gulf war incurred / Tinnitus 10% Gulf war incurred / and one secondary and 4 others rated 0% Gulf war incurred. Army Narrative Summary- Fails Rentention Stardards for PTSD, Major Depressive Disorder, Anxiety Disorder and Diabetes mellitus type 2. Army Narrative also states that: ongoing lack on insight on myself as well as misdiagnosis by thev Va in 1997 permitted redeployment in 2003. 1st Questions – if Va misdiagnosed me in 1997 is that grounds for a CUE, if so how strong is it. 2nd Question – can I recieve CRSC for combat related injury for the 11 years of active duty and not have to wait till I’m 60. 3rd Question – PTSD has Gulf war incurred combat and the other disabilities only have Gulf war incurred. Can the other disabilities be seen as combat since they are Gulf war incurred. Thanks

  195. Shane Ostrom, CFP®on 29 Jan 2015 at 6:51 am

    Marvin, 1) we are not specialist in VA processing actions or CUE appeals. You need to find a Veteran Service Officer who will work a CUE case for you and help explain the requirements which are quite different than a standard disability claim. 2) If you are awarded a medical retirement from the Service (instead of a medical separation), that is a active duty retirement. That means you get retired pay immediately and you become eligible for CRSC consideration. Because a medical retirement is considered an active duty retirement, only active duty time counts for retirement pay and CRSC pay. At age 60, all your Service time will kick in and your pay will adjust accordingly. 3) The Service determines the combat-relatedness of your injuries and illnesses for CRSC purposes. They consider all issues and apply the combat standard rules. Shane

  196. Jesse Kendallon 23 Feb 2015 at 5:16 pm

    Hi so awesome article. So just got notified that my service rating is going from 80% to 100% (combat related) and my retirement is going from TDRL to PDRL. Since CRSC is strictly from the Service and based off of the service rating would I see an increase in my CRSC?

  197. Shane Ostrom, CFP®on 24 Feb 2015 at 8:11 am

    Jesse Kendall, your CRSC won’t increase due to your Service rating because going from 80% to 100% doesn’t change your maximum retirement pay percentage of 75%–75% of base pay or high-3 base pay is the max medical retirement payout percentage. What this does mean is that you will qualify for the maximum CRSC amount which can be no greater than your VA compensation amount though it could be less than VA comp. CRSC is limited to the amount of retired pay you earned due to your years of service. To figure this multiple 2.5% times your years of active duty service. How does this percentage compare to your 75% medical retirement payout? CRSC will not compensate for any amount over the 2.5% time years of service percentage. Shane

  198. Chris Baileyon 05 Mar 2015 at 9:51 am

    Actually that isn’t necessarily true either. Once you have reached 100% rating by the VA, or you have reached at least 80% disability rating with the UNEMPLOYABLE tag, you can draw Mil Ret Pay and VA concurrently anyway.
    Te original article was written prior to the implementation of the new PEB process. That is why you will rarely see difference in service member ratings between the VA and branch of service.
    Anyone trying to decide between CRSC and CRDP should consider the difference and the fact CRSC is tax free. If you are like me, receiving Retired Pay, VA, CRSC and Social Security, you have to watch your taxable income, or they tax your social security. Any amount taxable is also added to your spouses income, if you are married. Just another tidbit of info.
    I happened to be eligible for longevity retirement prior to the completion of my PEB. Of course I chose to take the Medical Retirement for a couple of reasons: 1) Since my Service Rating exceeded 75% I ended up getting (in a way) a 30 year retirement, or 75% of high 3. 2) Receiving Disabled Retirement Pay is tax free, which is allowing me to collect nearly $8,200 per month, and I don’t pay one red cent in taxes.
    Just make sure you do your research on each benefit throughout your process. Ask questions until you are totally satisfied AND you completely understand the process. If you do reach the 100% (or 80% w/ unemployable tag) look into other federal and state benefits for you. There are several for each, but you sometimes have to dig through the small print to find them. For example, I discovered just last year that my state considers me EXEMPT from vehicle tag fees and taxes, and allows me to avoid paying property taxes as well (although the amount that is waived varies by county).
    One final thought-People throughout the entire process and beyond will give you information, quote policy and/or regulations. I recommend you request their resource and research it yourself, especially when things do not sound right to you. Often times they will assume they are correct because they were taught that way, or because it was that way when they completed things, for example. Regulations and policies change constantly. Good luck!!

  199. Chris Baileyon 05 Mar 2015 at 10:13 am

    By the way Jesse, your service rating being increased is reason enough to request a review of your VA rating as well if it’s not already 100%. The incredibly rapid speeds (yeah right) at which the services and VA work at vary by location. Of course the best time to pay either a visit is while they are being evaluated by higher. Unfortunately they are probably being “watched” because of terrible past practices to begin with. I’ve noticed a positive change at my local VA since the hammer dropped on them.

  200. Francisco Camposon 22 Mar 2015 at 5:29 am

    Help needed,

    I have just received my ratings and was awarded 70% DOD and 90% VA. I have 14 plus years in service. According to the estimated Disability Compensation Worksheet that my PEBLO gave me it states that I will be receiving roughly 3358 a month. Now being that my DOD pay is over $1000 than my VA pay of 90% ($2084), how would CRSC help me? I was informed that I would only be receiving I check and that it would come straight from DFAS and that I wouldn’t receive any VA compensation, due to it being lesser of the two.

    Any help in understanding this would be greatly appreciated.

  201. Shane Ostrom, CFP®on 23 Mar 2015 at 7:29 am

    Francisco, So if I understand correctly, your military retirement will be $3358mo from DFAS and your VA compensation will be $2084mo from the VA. First off, you always get the full VA comp at $2084mo. Period. However, your military retired pay will be reduced by the amount of VA comp you receive. This is shown in your DFAS retired pay stub as the VA Waiver (meaning you waive a portion of your retired pay by the full VA comp amount).

    Which means, $3358 minus $2084 = $1274 retired pay is what you will receive for military retired pay from DFAS. Your take-home pay will be $1274 military and $2084 VA for $3358 total. The VA portion is tax-free.

    What CRSC does is ensure you get at least all the retired pay you earned for your 14 years of service. Based on the above, you will get $1274 after the VA Waiver is applied to your retired pay from DFAS. Is $1274 an amount that represents what you earned due to your years of service?

    The VA Waiver can’t deny you retired pay you earned with your years of service. If it does, you are owed at least enough additional retired pay to cover your earned pay due to years of service. Given your 14 years of service, you earned retired pay at 35% of your high-three pay years (2.5% times 14 years of service = 35% retired pay due to years of service). Is $1274 less than, equal to, or greater than the 35% you earned? CRSC will determine that and pay you any extra you may have owed to you. My estimate is that you may get an additional few hundred bucks a month.

  202. Patrick Hon 24 Mar 2015 at 8:56 pm

    Dear, Sir

    Let me begin by thanking you for your help explaining these complicated lawyer written. (CRSC/CRDP) In a manor that we soldiers can comprehend better. I was in the military on active duty with only 5 years service (8 given if I stayed in to the end of my contract) until I was injured twice in my first deployment.(2010-2011) I was then placed on TDRL with a disability rating of 70% (all combat related). I was recently fully medically retired from service with 70%. I have a VA rating of 90%. I have heard about CRSC and CRDP, but I still can’t digest this info given the amount of marbles I have left in my head. I know I am eligible for both or at lest that’s what I’ve heard. I don’t know which to elect. Given my case what would happen if I choose one or the other? I apologize for asking this silly question but I need the Barney style version. Thank you, Patrick

  203. Shane Ostrom, CFP®on 25 Mar 2015 at 7:52 am

    Patrick H, let’s start with the easiest piece of your issue. CRDP requires BOTH 20 or more years of service AND 50% or greater VA rating. You are not eligible for CRDP because you don’t have 20 years of service. Now with CRDP off the table, we can concentrate on CRSC.

    Combat-Related Special Compensation (CRSC) is a program you have to apply for from your Service. Google search CRSC application.

    The National Veterans Legal Services Program (NVLSP) has a program to provide free legal representation to medical retirees who are interested in applying for Combat-Related Special Compensation (CRSC). For assistance with your CRSC claim, contact the NVLSP by going to their site here.

    You will probably qualify for CRSC. Here is what CRSC will do for you.

    You will receive your full VA disability compensation for your VA 90% rating. This is a sure thing.

    However, your Service retired pay will be reduced by an amount equal to the amount you receive from the VA. This is called the “VA Waiver.” You waive a portion your Service retired pay to receive the full amount of VA compensation. This is done to prevent so called “double dipping.” Double dipping is when you get two government checks for the same event.

    CRSC ensures the VA Waiver amount doesn’t deny you Service retired pay that you earned for your 5 years of service. You earned a 12.5% retirement pay out due to your 5 years of service (2.5% times ‘years of service’ is the retired pay formula). If the VA Waiver docks you so much you don’t get at least your earned 12.5%, CRSC will ensure you retired pay up to your earned 12.5%.

    Without CRSC, the VA Waiver could deny you retired pay you earned from your time served in the Service. Shane

  204. Pat Dogmanon 21 Apr 2015 at 2:26 pm

    I’m just confused and mad. I had 18 1/2 years active service when I was put on TDRL. At twenty years I was placed on PDRL and given a retiree ID and retiree benefits. However, when I was finally retired in 1996, I was only given my 100% VA disability, and nothing else. I never received any type of separation pay, nor do I receive any type of Military Retirement.

    Am I correct to assume that I have lost 18 1/2 years of my life to the military with no separation or retirement pay? And I’m only entitled to my VA disability?

    Thanks for the help…

  205. Shane Ostrom, CFP®on 22 Apr 2015 at 7:45 am

    Pat Dogman, I assume you were medically retired and do have retirement pay entitlement however your retired pay is being docked by a VA Waiver that’s larger than your retired pay. Given a 100% VA rating, your VA compensation must be in the $3000 month range thereby making your VA Waiver (which is the same amount as your VA comp) more than your retired pay. You have two options. First would be to apply for Combat-Related Special Compensation (CRSC) thru your Service to try and get reimbursement for what the VA Waiver takes away from you. If the nature of your disabilities are not combat-related, you second option is to appeal to your Service’s Board for Correction of Military Records (BCMR) and fight to get a full 20 years of Service credit (The BCMR option assumes you are all Active Duty). If you are Guard/Reserve, your full 20 years of service kicks-in at age 60 and your retired pay will be restored then. Shane

  206. Tom Greenon 29 Apr 2015 at 9:42 pm

    Shame Ostom

    I am Va rated 60% agent orange, 50% PTSD Vietnam, 10% tinnitus Vietnam, thumb lasaration 10% non combat related. Total VA rating is 80%. Also I am rated unemployable. I receive $2906. from Va and $2409. CRDP.

    I recently applied for CRSC. Was this a wise choice?

    Thanks, Tom Green

  207. Joseon 30 Apr 2015 at 1:03 am

    Hi Shane
    I officially retired from the US ARMY on Feb 28, 2001 and received an honorable discharge (no disabilities or medical). Last year I filed a VA Claim and just recently, I was approved with a 40 % combined rating. Would this 40 % rate be automatically deducted from my retirement pay?
    I understand that to qualify for the CRDP, I must have at least a 50 % VA rate AND if my service-connected injuries meet the CRSC, I could apply to the Dept of the Army instead. I am planning to appeal the VA decision and if I get at least 50%, I understand that I automatically qualify for the CRDP. Would I also get back pay?
    What are my options?

  208. Shane Ostrom, CFP®on 01 May 2015 at 7:37 am

    Jose, with a 40% VA rating you do not qualify for CRDP. You could qualify for CRSC if the Army rules your situation as combat related. The 40% VA rating/compensation will be subtracted from your retired pay. It appears as the VA Waiver in your retired pay; you have to waive retired pay to receive the VA comp. Getting a 50% rating qualifies you for CRDP and the VA Waiver is removed from your retired pay. Yes, there is retro pay if that applies. Shane

  209. Shane Ostrom, CFP®on 01 May 2015 at 7:39 am

    Tom Green, yes it is. You are always allowed the better payment between CRDP or CRSC. So you have nothing to lose and possibly something to gain. Shane

  210. Joseon 01 May 2015 at 8:03 am

    Thank you Shane
    I just received notification from DFAS that a change had occurred on my RAS. As you stated, the 40% VA compensation payment shows as a VA Waiver, and it is deducted from my retirement pay. (non-taxable).
    Some of the service-connected injuries could be considered for CRSC but not all. If I apply for CRSC, and it is approved, would be approved for only those injuries?
    I have few claims that were classified as service-connected but received 0%. I have few others that were only given a 10%. (Thinking about asking for an increase of rating). And I have some claims that were determined to be no service-connected but I have medical documentation that the injuries occurred while on Active duty.
    Any suggestions about appealing the VA decision?
    Thank you all for all the great service that you offer to the veterans.
    Shane could you PM at
    Much obliged!

  211. Scott Milleron 10 May 2015 at 6:17 pm

    Pat Dogman,
    I am in the almost exact same situation. Pushed out PDRL at 18 years 10 months. No concurrent receipt. I have just spoken to a couple of lawyers, one wants to take my case to BCNR, the other thinks there is no way to win. If your service puts you out, they have that discretion. It isn’t right, but until concurrent is truly fixed, people like us are screwed. ideally, if you were medically retired before 20 years, your retirement pay would not be offset for VA so we would get at least 18.5 years times 2.5%.

  212. Shane Ostrom, CFP®on 11 May 2015 at 6:58 am

    Scott Miller, right now you are eligible to apply for CRSC. MOAA is fighting for CRDP for the under 20-year group like yourself. If we get it approved, you would get (18.5 years times 2.5%). Unfortunately, the Administration, Hill and DOD are taking away benefits at this time and not open to expanding benefits. Shane

  213. mariaon 12 Jun 2015 at 9:04 am

    Hello Mr. Ostrom. I am medically retired from the army. DoD just cha ged my status fro.TRDL to PRDL. My current rating is VA-80% and Army 50%. I jave 6 yrs and 6 months in. I was never deployed. My understanding is if i have less than 20 years of service but i have 50% disability rating from the VA, then am I eligible for CRDP? If yes, will I recieve service pay from the ARMY?
    Thank you.

  214. Shane Ostrom, CFP®on 12 Jun 2015 at 10:52 am

    Maria, to receive CRDP you have to be awarded a VA rating of 50% or greater PLUS be a 20 year or more retiree. You are only eligible for CRSC. See this Army page: It explains how to apply for CRSC. There is a chance the CRSC could provide some additional Army retired pay that will normally be docked by the VA compensation/VA Waiver. Shane

  215. DAVID BUCKon 15 Jun 2015 at 3:12 am

    I am sorry but just when I think I have all this figured out I read something else and I am right back to square one. 1st of I was in the national guard and received a VA rating of 90% all combat related then I received IU. I then received a 70% combat related rating from the army. While signing my retirement paperwork I was told there was paperwork coming down the line for a purple heart, I don’t know if that would matter of not when that comes down. I signed a waiver with that paperwork to get my VA because the retirement pay way 1675 and my VA pay was 3086. In Nov 2014 my VA rep called and told me my PEBLO should have filled out my crsc application at the time of my decision was released. So I went in filled out the paperwork with him and submitted them that day since we were only 3 streets over from HRC on Ft. Knox. He went over my paperwork and said the way all my medical paperwork and retirement orders are written it was like they copied them directly from the requirements section of the crsc guidelines, I was worried that would be an issue and he said no it would be in my favor if anything. As I was leaving his office and I asked him what my chances are in getting approved, he explained they don’t have a say in it because HRC does all that. Then only thing is he said mine was one of the more clean cut ones he had seen. The way I have understood this is that I would get, IF APPROVED AND MY THINGS WERE IN ORDER, that I would get the waivered amount of the army retirement. that is the way he had explained it to me anyway since all of my injuries were all from the IED explosion I was involved in outside KIRKUK, IRAQ. Then he tells me not to get my hopes up but they pay retroactive pay 6 yrs. back.

    So far there have been 0 issues with the submitted paperwork and they said if they haven’t flagged it in the first 60 business days then they probably won’t they are just in the verification portion before notification. I am just trying to find out if the info I am receiving is correct or not. I have a friend who was in a ironically similar situation and is receiving 1490 crsc but he received a lower army rating of 50% not the 70% I got. I am just trying to get in my mind where I stand and I can quit stressing over the entire shebang. I pray your answers can help settle my mind before my cheese fall completely of this broken cracker. Thank you in advance for your assistance.

  216. Shane Ostrom, CFP®on 15 Jun 2015 at 7:31 am

    David Buck, please don’t stress out over this. Either it works or it doesn’t; worse case $3086 a month tax-free. I know these are just words after what you’ve been through but thank you for your service.

    You don’t say how many years of service you completed. There are two scenarios at work in your case.

    1) If you have 20 or more years of total service (20 years of credited service) and are longevity retirement eligible, you will be automatically paid CRDP at age 60. This is because as a Guard guy, you are retirement eligible at age 60 and you have a VA rating of 50% or greater. CRDP is the elimination of the VA Waiver from your Service retired pay. You do not apply for CRDP. It happens at retirement automatically if you meet the criteria: 20 years of service and VA rating of 50% or greater. If you should qualify for CRSC in the meantime, you can collect CRSC now and at age 60, make a choice between CRDP and CRSC depending on which one provides a better benefit.

    2) If you don’t have 20 years of service, you are only eligible for CRSC. You cannot get CRDP. If awarded, CRSC will start immediately but there is a catch. CRSC pays up to the amount of retired pay you earned from your Active Duty years of service. According to what you wrote above, your current Army retired pay was calculated based on 70% of your high-3 base pay. Your Army disability rating was used as the multiplier with your high-3 base pay to determine your retirement pay. However the formula only uses your Active Duty years of service. You don’t get credit for Guard/Reserve time until you turn age 60; the normal time Guard/Reserve service kicks in for retirement.

    All of this boils down to this…the Maximum amount of CRSC you can get is based on this formula: (2.5% times your Active Duty years of service) X your high-3 base pay. It could be less than this if the Army determines you combat rating is less than your 90% VA rating. Point is not all of your retired pay will be restored. You will receive the portion of retired pay earned by your Active Duty time.

    Complicated I know. You will most likely get something from your Army retired pay and it will be more than you are getting now. But it will be less than the $1675 you mention above. Shane

  217. George Evankoon 24 Jun 2015 at 8:34 am

    Mr. Ostrom,

    I have been reading and still do not understand my situation completely. I had an approved longevity retirement for Jan 2011, after which circumstances changed. While going through the VA disability process, it was suggested that I request an MEB. I did request an MEB and was awarded 100%, after a lengthy process. My total length of service was 24+ years. So my Army disability rating exceeded my retirement rate and I was awarded the the higher amount.

    All the MEB paperwork was sent to VA, which awarded me 100% as well.

    My question is: Why do I have a VA offset coming out of my retirement pay?

  218. Shane Ostrom, CFP®on 25 Jun 2015 at 7:27 am

    George Evanko, it has to do with how your retired pay amount was computed. Being medically retired and rated 100% by the Service Med Board means your retired pay amount is based on your Service disability rating, not your years of service. With a 100% Service rating your are paid at 75% of your base pay upon retirement. 75% is the maximum payout allowed by law for a medical retirement even though your rating is 100%.

    Had your retired pay been based on your 24 years of service alone, your retired pay amount would have been computed as: 2.5% X 24 years of service = 60% of base pay.

    So you are paid 15% more over your ‘years of service’ amount due to your disability rating. Neither form of concurrent receipt (CRDP,CRSC), restores the disability portion of your retired pay. Concurrent receipt ensures you are paid what you earned due to your years of service; the 60%. Everything above 60% in your retired pay is purely based on your disability rating.

    Because the VA compensation is paying you for your disability, the disability portion of your retired pay is docked by the VA Waiver. This is because of the double dipping law that states you can’t be paid twice by the government for the same event. Hope this helps…Shane

  219. Brad Klingeron 25 Jun 2015 at 4:39 pm

    I am age 61, retired Guard guy with 24 yrs of service drawing retirement pay. Recently I applied for VA disability for a back injury suffered while on acitve duty. I was granted a 20% disability rating by the VA.
    Will this amount of money be deducted from my retirement pay and then paid to me by the VA?

  220. Shane Ostrom, CFP®on 26 Jun 2015 at 8:19 am

    Brad Klinger, yes, you are correct. the VA 20% compensation amount will be subtracted out of your retired pay dollar-for-dollar. The subtraction in your retired pay will appear as the “VA Waiver.” The VA Waiver states you agree to dock your taxable retired pay by the amount you receive from the VA in tax-free pay–subbing tax-free pay for taxable pay. Is your VA rating retroactive? If so, that means that if the VA Waiver had been in effect during the retro period, you would have had less taxable retired pay. In other words, you paid withholding taxes on past retired pay income that would not have been in your pay. This may be grounds for an amended tax return to get a refund for the taxes you paid during the retro period. See a tax specialist. Shane

  221. Mikeon 07 Jul 2015 at 2:43 pm

    I am medically retired with over 20 years and get CRDP. Everything I see says that CRDP (but not CRSC) is divisible with a former spouse. Upon divorce, would DFAS pay a former spouse for a portion of CRDP. Marriage is greater than 10 years but less than 20.

  222. Shane Ostrom, CFP®on 08 Jul 2015 at 7:02 am

    You, your spouse and the divorce court decides if your spouse gets any military retired pay and how much. DFAS just does what it is told by the court. The only rule DFAS has to follow is that DFAS cannot directly pay a spouse more than 50% of the retired pay if the court should award greater than 50%. Anything greater than 50% would have to come from you personally.

    There is no CRDP payment to divide. CRDP is nothing more than you getting all your retired pay (removal of the VA Waiver). Another way to look at it is the fact you get all your retired pay and that is the result of CRDP. Before CRDP you wouldn’t have received all your retired pay because it would have reduced by the VA Waiver amount. And in a divorce, all your retired pay is considered property of the married and eligible for division.

    CRSC is different because it is a separate check from the retired pay. With CRSC your retired pay is reduced by the VA Waiver and a CRSC is issued to reimburse you for the VA Waiver reduction. The separate CRSC check is not property of the marriage and can’t be divided. Shane

  223. Brian T.on 25 Jul 2015 at 10:46 am

    Shane, good job on this issue. I think I understand mine. I retired with 25 years active duty. I get 40% disability from the VA. That is deducted from my retired pay with the VA Waiver. I applied for and was approved for CRSC the full 40% as combat related. I already see the CRSC pay voucher on the mypay.dfas website. and it shows the 40% amount ($651). So my question is, are the $651 VA amount AND the $651 CRSC amount BOTH tax-free?

  224. Shane Ostrom, CFP®on 27 Jul 2015 at 6:54 am

    Brian T, yes, you are correct sir. The CRSC check is tax-free due to the combat nature of the payment. It is also why the CRSC check is separate from the regular retired pay which is taxable. Your CRSC check replaces taxable retired pay removed by the VA Waiver with tax-free pay. Thanks for your service…Shane

  225. antonio cortezon 01 Aug 2015 at 5:04 pm

    i served 26 years in the Marine Corps and was put on a peb board and medically retired with 20% for my back but i received 65% due to 26 years of service, i was giving crdp and 90% VA, due to my PTSD my VA was increase to 100%, out of all my VA disabilities 70% are combat related, should i apply for CRSC? will i receieved 70% pay from DOD instead of 65%?

  226. Shane Ostrom, CFP®on 03 Aug 2015 at 7:01 am

    Antonio Cortez, if you have combat related issues, go ahead and apply for CRSC. You have nothing to lose. Once the Service determines your CRSC rating, you will be paid the better payment between either CRDP or CRSC. Navy CRSC site: Your Service retired pay will always be paid at the 65% amount. CRSC does not change that. If you are awarded CRSC, your Service retired pay will be reduced by the amount of VA comp you receive; dollar for dollar. (gross retired pay – VA Waiver = what you are paid). The VA Waiver is the amount of Service retired pay you forfeit/waive to receive the VA comp. The CRSC reimburses you for the VA Waiver amount in your retired pay check. The CRSC check is tax free. The CRSC rating (70% in your example) represents how much of the VA Waiver amount will be reimbursed to you in a CRSC check. Shane

  227. antonio cortezon 06 Aug 2015 at 12:07 am

    thank you. My retirement check is 3359 gross pay, I also have a 202 va waiver on my retirement statement. I just recieved a letter from DFAS saying that my CRDP entitlement 1775 is greater than my CRSC entitlement of 651, therefore they selected CRDP for me but I Have the option to choose CRSC. I believe the 3359 is for 26 years of service, why would CRDP be better than CRSC for me?? if I Choose CRSC I will be losing 1775 out of my 3359?

  228. Nickon 01 Sep 2015 at 11:31 pm

    CRDP, Chapter 61, REDUX

    A recurring question that I see on various veteran websites concerns how CRDP is calculated when a veteran with more than 20 years service has been retired under Chapter 61 but previously opted for the REDUX system.

    When the VA disablity compensation exceeds the chapter 61 retirement amount, is the amount restored by CRDP calculated at the reduced REDUX retirement factor or at the 2.5% per year of service rate used for Chapter 61 purposes?

    For example, a retiree has 20 years service and DOD disability finding of 30% disability. The retiree is retired at 50% based on 2.5% per year of service IAW chapter 61. All of his retirement is offset by his VA compensation. His REDUX retirement would be 40%. Is CRDP based on the 40% or the 50% factor?

  229. Shane Ostrom, CFP®on 02 Sep 2015 at 7:49 am

    Nick, per the DOD CRDP policy DOD Financial Management Regulation, Vol 7B, Chap 64, para 640401, “…Members retired for disability under 10 U.S.C., Chapter 61, Sections 1201 through 1222 remain subject to the offset required under 38 U.S.C. 5304 and 5305 for

      any retired pay they receive that is in excess of the amount of retired pay to which they would be entitled under any other provision of law

    based on service in the uniformed services, had they not retired for disability.”

    So if you are retired under REDUX, that is your entitled retired pay under that provision of law and the law that is used. Shane

  230. Steveon 23 Oct 2015 at 7:42 pm

    Shane, can you verify? I had 23.5 yrs military, 60% disability through the service and 70% rated by the VA. I see a deduction of $107. for VA Waiver on my retirement pay????

    Is this just a timing issue where they VA waiver will stop and I’ll be compensated for that deduction? I retired this year and am really confused as to why the VA waiver is showing up when I thought it was phased out last year (’14)…..thx!

  231. Shane Ostrom, CFP®on 25 Oct 2015 at 11:03 am

    Steve, I see three possibilities.

    One, you are an active duty retiree receive CRDP and were medically retired. If so, your retired pay is based on your Service disability rating 60% and CRDP only restores retired pay owned you due to years of service. 23.5 years of service times 2.5% is 58.75%ish–less than the 60% you are getting. The CRDP doesn’t make up the extra 1.25%ish you get in retired pay due to your disability.

    Two, you receive CRSC. Are you Guard or Reserve and were medically retired with less than 20 years of active duty service and you are in the gray zone, prior to age 60. CRSC restores retired pay due to years of service and medical retirements only count active duty time. Your being paid CRSC for AD time and it doesn’t cover the full VA Waiver amount.

    Third, you get CRSC and your CRSC rating is lower than your VA rating so the full VA Waiver amount is not covered by CRSC.

    Hope these help explain things…Shane

  232. Sam H.on 19 Nov 2015 at 12:07 pm

    I have read almost all these comments hoping to make sense of this. I called DFAs to have them explain it. I am still so lost. So here it goes.
    I am 70% medically retired from the Army. I am 80% from the VA. From the Army after the VA waiver I get 693.52. I get from the VA 1551.00. I put in for CRSC 2 years ago but they said I was denied. I called just today and they said this. I was awarded 520.00 from CRSC but because that is not more than 693.52 I will get nothing from CRSC. If I was awarded CRSC in the amount of 520.00 then why is DFAS denying it. So so so so confused. I work with Veteran and I would like to be able to explain how this process works. Since I cannot explain my own case, I do not have an answer for them. Please help if you can. Thank you.

  233. Shane Ostrom, CFP®on 20 Nov 2015 at 10:05 am

    Sam H. CRSC and CRDP restore retired pay that is based on years-of-service (YOS) and that YOS pay is being denied by the VA waiver. In other words, after VA Waiver is docked from retired pay, are you being denied vested pay that you earned due to your YOS? In your case, CRSC is stating that based on your YOS you are owed $520 in retired pay. You are already getting $693.52 after the VA Waiver. So, you are vested in YOS for $520 and you are getting $693. Meaning you are already getting more retired pay than you are vested in YOS. CRSC ensured that you are at least getting what you earned. Had your retired pay after the VA Waiver been less than $520, CRSC would have ensured you were brought up to at least $520. All retired pay you get above $520 is not based on YOS, it’s based on your Service disability rating. CRSC does not restore the extra amount of retired pay based on the Service disability rating. Hope this helps…Shane

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