CRSC vs CRDP: plain-English comparison

By default, a military retiree can't get full retired pay and full VA disability pay. Retired pay is cut dollar for dollar by your VA pay. DFAS calls that the "VA waiver." CRDP and CRSC are the two programs Congress created to give some or all of that money back. You can qualify for both, but you can only get one at a time.

The quick comparison

Who qualifies for CRDP

If you did not retire for disability (Chapter 61):

• You're entitled to both military retired pay and VA disability pay, and
• Your VA rating is 50% or higher.

If you retired under Chapter 61 for disability: the same rules apply, plus you must have had 20 or more years of creditable service at retirement. With fewer than 20 years, you can't get CRDP, but look at CRSC. Even with 20+ years, a Chapter 61 retiree's concurrent pay is capped at what a longevity retirement would have paid.

Reserve and Guard retirees retired under Chapter 61 before their retirement eligibility age don't get concurrent pay until they reach that age. Contact your branch so it sends DFAS the right info.

Who qualifies for CRSC

Per VA and DFAS, all of these must be true:

• You're retired and entitled to (or receiving) military retired pay.
• You have a VA rating of at least 10%.
• Your retired pay is reduced by your VA pay (the VA waiver).
• You apply to your branch of service.

And one of these, per VA: 20+ years of service (active, Guard or Reserve); a Chapter 61 medical retirement with a rating of at least 30%; TERA; or you're on the TDRL or PDRL. A medical separation (with or without separation pay) isn't a medical retirement, and Army HRC says it doesn't qualify.

The disability must come from one of these: armed conflict, hazardous duty (like parachuting, flying or demolition), simulated war (like live-fire training), an instrumentality of war (like a military vehicle, weapon or chemical agent), or an event that earned a Purple Heart.

Which one should you pick?

• If you're eligible for both, DFAS automatically pays whichever has the higher gross amount and sends you a letter.
• Higher gross isn't always better. CRSC is tax-free and isn't split with a former spouse under the USFSPA. CRDP is taxable and can be divided. Army guidance notes the highest gross payment can be the worse deal after taxes or a former-spouse split.
• If your federal tax status is exempt, DFAS says you'll get the same amount either way.
• Switching to CRSC can stop allotments (like dental or TRICARE) if there's not enough retired pay left to cover them. You'd then pay those directly. SBP premiums come out of CRSC if needed.
• Your VA pay doesn't change under either program.

Open season (switching programs)

If you're eligible for both, DFAS mails an open season letter each year showing both amounts. Recent open seasons ran in January. To keep your current program, do nothing. To switch, return the form with the "change" box checked and get it postmarked by the deadline. You can't switch again until the next open season, even if your amounts change mid-year.

How to apply for CRSC

1. Fill out DD Form 2860. Download it and open it in Adobe Reader, not your browser. Army HRC says it must have your handwritten signature.
2. Attach copies (they won't be returned): retirement orders, DD214, VA rating decision, relevant service medical records from when it happened, and Purple Heart or award paperwork. DFAS says quality beats quantity.
3. Send it to your branch's CRSC office (addresses are on the form and on VA's CRSC page):
   • Army: Army Human Resources Command (HRC) CRSC, 866-281-3254
   • Navy and Marine Corps: Secretary of the Navy Council of Review Boards, CRSC Branch, 877-366-2772, [email protected]
   • Air Force and Space Force: AFPC (through myPers), 800-525-0102
   • Coast Guard: Personnel Service Center, [email protected]
4. Got a new VA rating later? CRSC doesn't update on its own. File a reconsideration with your branch.

Back pay deadline: VA says to file within 6 years of a VA rating decision or the date you became entitled to retired pay, whichever comes first. File later and you can get at most 6 years of back payments.

Related: 2026 VA disability pay chart · VA combined rating · VA claim timeline · VA back pay and effective dates · All vet benefit guides