CRDP vs. CRSC: Concurrent Receipt for Disabled Retirees
Updated July 2026
Normally, a military retiree's retired pay is reduced dollar-for-dollar by the amount of VA disability they receive (the "VA waiver"). Two programs — CRDP and CRSC — can restore some or all of that money. They are easy to confuse, so here is the difference.
The problem: the VA offset
If you are a military retiree who also gets VA disability compensation, the law generally makes you "waive" an equal amount of your (taxable) retired pay to receive your (tax-free) VA compensation. Concurrent receipt programs give that waived money back to eligible retirees.
CRDP — Concurrent Retirement and Disability Pay
- Who: retirees with 20+ years of creditable service (including National Guard and Reserve retirees) and a VA rating of 50% or higher.
- The disabilities do not have to be combat-related.
- Automatic — no application needed; DFAS starts it when you qualify.
- It is restored retired pay, so it is taxable.
CRSC — Combat-Related Special Compensation
- Who: retirees with a disability that is combat-related (Purple Heart, armed conflict, hazardous service, or an instrumentality of war). Chapter 61 medical retirees may also qualify.
- Works at lower ratings — there is no 50% floor for the combat-related conditions.
- You must apply through your branch of service.
- It is special compensation, so it is tax-free.
You can't get both — pick the better one
You cannot receive CRDP and CRSC at the same time. DFAS pays CRDP automatically unless you have an approved CRSC application. Each year there is an open season to switch. DFAS sends a comparison so you can choose whichever pays you more — for many with combat-related conditions, the tax-free CRSC comes out ahead, but not always.
How to claim CRSC
Submit a CRSC application to your branch (Army, Navy, Air Force/Space Force, Marine Corps, or Coast Guard) with evidence tying your disabilities to a combat-related cause. Approved CRSC can be paid retroactively. See related pay in our benefits pages.
Frequently asked questions
What is the difference between CRDP and CRSC?
CRDP restores taxable retired pay for retirees with 20+ years and a VA rating of 50% or more, and it is automatic — the disabilities need not be combat-related. CRSC is a tax-free payment for combat-related disabilities that you must apply for, and it has no 50% floor. You cannot receive both.
Is CRDP or CRSC taxable?
CRDP is restored retired pay and is taxable. CRSC is special compensation and is tax-free. That tax difference is a big reason to compare the two before choosing.
Do Guard and Reserve retirees qualify for CRDP?
Yes. National Guard and Reserve retirees with 20 or more years of creditable service and a VA rating of 50% or higher are eligible for CRDP, the same as active-duty retirees.
Do you have to apply for CRDP?
No. CRDP is automatic — DFAS begins paying it when you meet the eligibility rules. CRSC, by contrast, requires an application to your branch of service.