Combat-Related Special Compensation (CRSC)

A tax-free monthly payment to a military retiree, at any rating from 10%, that replaces retired pay lost to the VA offset for disabilities the service branch decides are combat-related.

Also called: CRSC, combat related special compensation, Purple Heart retiree, chapter 61 retiree.

For: Veteran or service member.

Where it applies

Applies in states and territories.

Federal

Combat-Related Special Compensation, under 10 U.S.C. 1413a, pays a retiree an amount equal to the VA compensation for the disabilities that are combat-related, capped at the retired pay the VA offset took away. Unlike CRDP, it has no 50% floor and it reaches chapter 61 disability retirees with fewer than 20 years of service. A disability is combat-related when the service branch finds it came from armed conflict, hazardous service, conditions simulating war, or an instrumentality of war, or when it was the subject of a Purple Heart. The retiree applies to their own branch's CRSC board, not to VA, on DD Form 2860. CRSC is not taxable. A retiree who qualifies for both CRSC and CRDP receives the one they elect. For a chapter 61 retiree with fewer than 20 years, the payment is further limited to the amount by which retired pay exceeds the longevity amount the retiree would otherwise draw.

Thresholds

Thresholds for Combat-Related Special Compensation (CRSC)
Gate	Rule
Rated 10% or more	A VA rating of at least 10% for a disability the service branch decides is combat-related, plus military retired pay.
Combat-related disability	The branch CRSC board decides the disability is combat-related or Purple Heart related.

Sources

10 U.S.C. 1413a, Combat-related special compensationOfficial

Updated

Last updated 2026-10-08.

What changed then:

First published.

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Disclaimer

VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.