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Military Retirement and VA Disability Pay: CRDP and CRSC Explained

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If you retired from the military and also have a VA disability rating, you may have noticed your retired pay go down when your VA pay started. That is the VA waiver. Two programs created by Congress, CRDP and CRSC, let many retirees get some or all of that retired pay back. Which one applies, if either, depends on your rating, your years of service and whether your disabilities are combat related.

The short version

  • By default, retirees waive retired pay dollar for dollar to receive VA disability pay.
  • CRDP restores retired pay in full for most retirees with 20+ years and a VA rating of 50% or more. You do not apply for it.
  • CRSC is tax-free pay for combat-related disabilities, from a 10% rating. You apply to your branch with DD Form 2860.
  • You can qualify for both, but you can receive only one of them.
  • File for CRSC within 6 years of a VA decision or of becoming entitled to retired pay to get full back pay.

The VA waiver

The general rule in federal law (38 U.S.C. 5304 and 5305) is that a military retiree cannot receive both full military retired pay and VA disability compensation. To receive VA pay, you waive the same amount of retired pay. VA disability pay is tax free and retired pay generally is not, so the waiver can still leave you ahead, but for many retirees it means years of service pay effectively disappear.

CRDP and CRSC are the two exceptions.

CRDP: Concurrent Retirement and Disability Pay

CRDP lets eligible retirees receive military retired pay and VA disability compensation at the same time, in full. DFAS notes that “CRDP” is not a term used in the law itself; it is shorthand for this exception.

If you did not retire for disability under Chapter 61, you are eligible when:

  • You are entitled to both military retired pay and VA disability compensation for the month, and
  • Your VA combined rating is 50% or higher.

Since January 1, 2014, eligible retirees receive retired pay in full alongside VA pay. (A ten-year phase-in ran from 2004 through 2013.)

If you retired for disability under Chapter 61, you must also have had 20 or more years of creditable service when you retired. Even then, the amount you can receive concurrently may be limited, because the part of your disability retired pay that exceeds what you would have received for longevity still has to be waived. Chapter 61 retirees with fewer than 20 years are not eligible for CRDP.

You do not need to apply for CRDP. Questions go to DFAS at 800-321-1080.

CRSC is a separate, tax-free payment for retirees whose disabilities are combat related. It is often the answer for retirees who do not qualify for CRDP, including those rated below 50% and many medical retirees.

All of these must be true:

  • You are retired and entitled to (or receiving) military retired pay.
  • You have a VA disability rating of at least 10%.
  • Your retired pay is currently reduced by the amount of your VA pay.

And one of these:

  • You had 20 or more years of service (active, Guard or Reserve), or
  • You were medically retired under Chapter 61 with a rating of at least 30%, or
  • You are covered by the Temporary Early Retirement Act (TERA), or
  • You are on the Temporary or Permanent Disability Retired List.

Your evidence must show the injury happened while you were:

  • Engaged in armed conflict, including combat, an occupation or a raid
  • Doing hazardous duty, such as demolition, flying or parachuting
  • In war simulation, such as live-fire practice or hand-to-hand combat training
  • Exposed to an instrument of war, such as a military vehicle, weapon or chemical agent
  • In an activity for which you received a Purple Heart

How to apply for CRSC

  1. Fill out DD Form 2860, Claim for Combat-Related Special Compensation. Download it and open it in Adobe Acrobat Reader instead of your browser.
  2. Attach copies (not originals) of: service medical records from the time of the injury; official records such as after-action or investigative reports; awards like a Purple Heart or Combat Action Badge; your retirement orders; your VA decision notice; and your DD214.
  3. Send it to your branch of service (not VA and not DFAS). The addresses are on the form.

Mind the 6-year limit. To receive your full back payments, file within 6 years of any VA rating decision or of the date you became entitled to retired pay, whichever comes first. File later and you can recover at most 6 years of payments.

CRDP or CRSC?

You may qualify for both, but you can receive only one. Which pays more depends on your rating, how much of it is combat related, your retired pay and taxes, since CRSC is tax free. If you qualify for both, ask DFAS or an accredited representative to compare the two for your situation.

Common mistakes

  • Assuming medical retirees get nothing back. A Chapter 61 retiree with a combat-related disability rated 30% or more may qualify for CRSC.
  • Not filing for CRSC because CRDP is automatic. CRDP needs no application; CRSC always does.
  • Sending original records. Your branch will not return them. Send copies.
  • Waiting too long. Back pay for CRSC is limited to 6 years.

Free printable checklist. Everything to gather before you file, what to bring to your C&P exam, and what to check in your decision, on two pages.

Get the free checklist

What to do next

Previous in the playbookVA Clothing Allowance: Who Qualifies, How Much, and the August 1 Deadline

Next in the playbookVA Claim Glossary: Terms, Acronyms and Forms in Plain English

Sources

Last reviewed October 2026. This guide is general educational information, not legal or medical advice, and this site is not affiliated with the Department of Veterans Affairs. Rules and rates change. Confirm details on VA.gov or with an accredited representative. See our disclaimer and editorial policy.