New groups of disabled retirees will be able this year to draw Combat-Related Special Compensation (CRSC) or higher amounts of Concurrent Retired Disability Payments (CRDP) under legislation passed in January.
Defense Finance and Accounting Service officials explained in an interview how they are implementing the changes. Again it will involve DFAS and the services screening thousands of disabled retiree files to determine millions of dollars in additional “concurrent receipt” payments.
For decades military retirees faced a legal ban on concurrent receipt of both military retirement and VA disability compensation. Retirees who received tax-free VA compensation for service-related disabilities saw their military retirement reduced dollar-for-dollar by the VA amounts.
Congress voted to end this offset for combat-related injuries in 2003 by approving CRSC. In effect, it restores the value of lost retired pay for broadly defined combat-related disabilities.