Combat-Related Special Compensation (CRSC) provides military Retirees a tax-free monthly compensation that is intended to replace some or all of the retired pay that is withheld due to receipt of VA compensation. CRSC is payable for disabilities that are found to be related to combat, including disabilities that were incurred in actual combat, while engaged in hazardous service, in the performance of duty simulating war, training for combat or as a result of an instrumentality of war. The amount of CRSC payable is directly related to the evaluation(s) assigned to combat-related disabilities, but cannot exceed the amount of withheld retired pay. Retirees cannot receive benefits simultaneously under both, CRSC and Concurrent Retirement and Disability Payments (CRDP), programs.
DFAS began deducting Survivor Benefit Plan (SBP) premiums from Combat-Related Special Compensation (CRSC) when retired pay is not sufficient to cover the full amount of the premiums. in April 2018 This deduction is due to a change in the law which requires DFAS to deduct SBP premiums from CRSC. Click here for more information.
Removal of the Six-Year Barring Act
Following Supreme Court ruling (Soto v. United States), the six-year bar on Combat Related Special Compensation (CRSC) claims has been lifted. Eligible retirees may now qualify for compensation retroactive to their initial eligibility date.
However, implementation is on hold until the Department of Defense issues formal guidance.
What You Need to Know: No action required — the Army will update all CRSC claims automatically.
- Over 7,000 claims will be reviewed; expect the process to take several months
- Updated decision letters will be sent to both DFAS and mailed to claimants when finalized
- DFAS will audit each claim to determine possible retroactive payment eligibility
- All questions about payment amounts or timelines should be directed to DFAS
- Currently barred claims are being tracked and will be updated once guidance is received
Effective dates will be adjusted to the earliest eligibility based on retirement date and VA rating.