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.

Air National Guard Service members on state active duty are not eligible for the CRSC program. The CRSC program benefits retired Service members (including chapter 61 Retirees, Temporary Early Retirement Act (TERA), and Temporary Disable Retirement List (TDRL) Retirees with less than 20 years of service). 

For more information on CRSC, including specific eligibility requirements, please visit the CRSC webpage managed by the USAF’s Physical Disability Division of the Air Force Personnel Center
https://www.afpc.af.mil/Support/Contact-Us/

CRSC Webpage maintained by DFAS:
https://www.dfas.mil/retiredmilitary/disability/crsc/

DoD Financial Management Regulation:
https://comptroller.defense.gov/Portals/45/documents/fmr/current/07b/07b_63.pdf