Unveiling the Essence of Combat-Related Special Compensation (CRSC)

Decoding CRSC: A Tax-Exempt Financial Lifeline

For retired military personnel grappling with combat-related disabilities, the Combat-Related Special Compensation (CRSC) program stands as a beacon of financial support. Enacted by Congress, this invaluable initiative aims to restore a portion of the retired pay that was previously deducted due to the receipt of disability compensation from the Department of Veterans Affairs (VA). By providing tax-free monthly payments, CRSC serves as a lifeline, alleviating the financial strain on those who have sacrificed their well-being in the line of duty.

The Driving Force Behind CRSC

The origins of CRSC can be traced back to the fiscal year 2003 National Defense Authorization Act (NDAA), which paved the way for its inception. Initially, the program catered to retirees with combat-related disabilities rated at 60% or higher by the VA, as well as those who had been awarded the prestigious Purple Heart decoration, regardless of their disability rating. However, the 2004 NDAA expanded CRSC's reach, extending eligibility to all combat-related disabilities ranging from 10% to 100%, effective January 1, 2004.

In a further stride towards inclusivity, the 2008 NDAA broadened the scope of CRSC, granting eligibility to a wider range of retirees, including those who had retired under the Temporary Early Retirement Act (TERA), the Temporary Disabled Retirement List (TDRL), and Chapter 61 (medical retirement). This expansion underscored the government's commitment to ensuring that no retired service member with combat-related disabilities was left behind.

Navigating the Eligibility Criteria for CRSC

To qualify for CRSC, retired military personnel must meet specific criteria. Firstly, they must be entitled to or currently receiving military retirement pay. Secondly, they must possess a VA disability rating of at least 10%. Crucially, their Department of Defense (DoD) retirement payments must be reduced by the amount of their VA disability compensation – a condition commonly referred to as the "VA Waiver."

Retirement Eligibility: A Closer Look

Eligibility for CRSC extends to various categories of retirees, each with its own set of requirements:

• Retirees with 20 or more years of service in the military, National Guard, or Reserve
• Those who retired for medical reasons with a disability rating of at least 30% (under Chapter 61)
• Individuals covered under the Temporary Early Retirement Act (TERA)
• Members on the Temporary Disability Retired List (TDRL)
• Retirees on the Permanent Disability Retired List (PDRL)

It is important to note that while CRSC does not apply directly to surviving spouses, the estate of a deceased service member may be eligible to file for compensation due between the effective date of the law and the date of the service member's passing.

Substantiating Your Claim: Evidence and Documentation

To substantiate a claim for CRSC, retired service members must provide a comprehensive array of evidence and documentation. This includes, but is not limited to:

• Service medical records from the time of injury, detailing the severity and combat-related nature of the medical condition
• Official service records, such as After Action Reports, Investigative Reports, personnel action requests, and performance evaluations
• Decorations and award recommendations, including Purple Heart citations, Combat Action Badges, medals, and decorations for valor
• Retirement records, encompassing retirement orders and the Armed Forces of the United States Report of Transfer
• VA decision notices
• DD214 (Certificate of Release or Discharge from Active Duty)

Establishing the Combat-Related Nature of Disabilities

The evidence provided must clearly demonstrate that the injury or disability in question occurred under specific circumstances, such as:

• Engagement in armed conflict, including combat, occupations, raids, or other hostile actions
• Participation in hazardous duty assignments, such as demolition, flying, or parachuting
• Involvement in war simulation activities, like live-fire weapons practice or hand-to-hand combat training
• Exposure to instruments of war, including military vehicles, weapons, or chemical agents
• Engagement in activities for which the service member received the Purple Heart

Certain disabilities, such as those rated by the VA based on exposure to radiation, mustard gas, lewisite, Agent Orange, or associated with Persian Gulf service, may be presumed to be combat-related. However, conditions like Post-Traumatic Stress Disorder (PTSD) require evaluation by the service member's parent Military Service to determine their combat-related nature.

Requesting Vital Documents

To obtain the necessary documentation, retired service members can follow these steps:

• Request VA rating decision letters by sending a signed letter or note to the nearest VA regional office, specifically asking for "my VA rating decision letter."
• Obtain military service records, including the DD214, online, by mail, or in person, following the procedures outlined by the respective Military Service.

Initiating the CRSC Application Process

Once all the required documentation has been gathered, retired service members can proceed with the CRSC application process. This involves completing the Claim for Combat-Related Special Compensation (CRSC) form, also known as DD Form 2860. It is crucial to download the most recent version of this PDF form and open it using Adobe Acrobat or Adobe Acrobat Reader.

Ensuring Timely Submission for Maximum Benefits

The CRSC program is subject to a six-year statute of limitations. To ensure that retired service members receive the full amount of back payments owed to them, it is essential to file the CRSC claim within six years of either the VA rating decision or the date they became entitled to retired pay, whichever occurs first. If the claim is filed after this six-year limit, the applicant may only receive up to six years' worth of any payments due.

Submitting Applications to the Appropriate Service Branch

Once the application is complete, along with supporting documents, it must be submitted to the appropriate uniformed service branch. Retired service members should refrain from sending original supporting documents, as these will not be returned. Instead, they should send copies and retain a copy of the completed application for their records.

The mailing addresses and email addresses for each service branch are as follows:

Air Force and Space Force

United States Air Force Disability Division (CRSC) HQ AFPC/DPPDC 550 C Street West Randolph AFB, TX 78150-4708

Army

Department of the Army U.S. Army Human Resources Command Attn: AHRC-PDP-C (CRSC) 1600 Spearhead Division Avenue, Dept. 480 Fort Knox, KY 40122-5408 Email: usarmy.knox.hrc.mbx.tagd-crsc-claims@mail.mil eFAX: 502-613-9550

Coast Guard

Commander (PSC-PSD-MED) Personnel Service Center, Attn: CRSC 2703 Martin Luther King Jr. Avenue SE Washington, DC 20593-7200 Email: ARL-SMB-CGPSC-PSD-CRSC@uscg.mil

Navy and Marine Corps

Secretary of the Navy Council of Review Boards Attn: Combat Related Special Compensation Branch 720 Kennon Street SE, Suite 309 Washington Navy Yard, DC 20374-5023 Email: CRSC@navy.mil

Frequently Asked Questions: Addressing Common Concerns

As retired service members navigate the CRSC application process, they may encounter various questions and concerns. To address these, we have compiled a list of frequently asked questions and their corresponding answers.

Can I Receive Back Payments for CRSC?

Yes, if you were eligible for CRSC payments in the past, you may be entitled to receive back payments. When you receive a new CRSC award letter or experience a change in your VA disability compensation award, the Defense Finance and Accounting Service (DFAS) – or the payment office for your uniformed service – will audit your account to determine if you should receive back payments. If you are due back payments, you will receive them from either DFAS or the VA.

Can I Request a Reconsideration of My CRSC Application?

Absolutely. You can request a reconsideration of the decision from your uniformed service if:

• Your CRSC application is denied
• You receive a new disability rating for a condition or injury that is combat-related
• Your existing disability rating connected to your CRSC changes

To initiate a reconsideration request, follow the specific procedures outlined by your service branch:

Air Force

If your CRSC application is denied, you will receive a Reconsideration Request Form along with your decision letter. Use this form or send a signed letter, along with any new evidence, to the Air Force, requesting them to reopen your claim. If there has been a change to your disability rating, include your most recent decision notice.

Send your completed form or letter, along with any new evidence, to: HQ AFPC/DPFDC 550 C Street West JBSA Randolph, TX 78150

Army

If your CRSC application is denied, you can submit a request for reconsideration using the Reconsideration Request Form (CRSC Form 12e) available from the Army's Human Resources Command website.

Send your completed form and any new evidence to: Department of the Army U.S. Army Human Resources Command Attn: AHRC-PDP-C (CRSC) 1600 Spearhead Division Avenue, Dept. 480 Fort Knox, KY 40122-5408

Alternatively, you can fax it to 502-613-9550 or email it to usarmy.knox.hrc.mbx.tagd-crsc-claims@mail.mil.

Coast Guard

If your CRSC application is denied, send the Coast Guard a letter along with any new evidence, requesting a reconsideration.

Send your request and any new evidence to: Commander (PSC-PSD-MED) Personnel Service Center, Attn: CRSC 2703 Martin Luther King Jr. Avenue SE Washington, DC 20593-7200

You can also send it by email to ARL-SMB-CGPSC-PSD-CRSC@uscg.mil.

Navy and Marine Corps

If your CRSC application is denied, you will receive a reconsideration request form along with your decision letter. You can also find this form on the Secretary of the Navy website or request it by calling 877-366-2772.

Send your completed form and any new evidence to: Secretary of the Navy Council of Review Boards Combat-Related Special Compensation Board 720 Kennon Street SE, Suite 309 Washington Navy Yard, DC 20374-5023

Alternatively, you can send it by email to CRSC@navy.mil.

Can Former Spouses Receive CRSC Benefits?

CRSC is considered "special compensation" and is not subject to the Uniformed Services Former Spouse Protection Act (USFSPA). As a result, former spouses are not eligible to receive CRSC benefits.

Can Reservists and National Guard Members Qualify for CRSC?

Yes, all Reserve or National Guard members are eligible for CRSC if they meet the following criteria:

• Have 20 years of creditable service, or
• Are a permanent medical retiree, or
• Are a TERA retiree who is:
  • Receiving military retired pay, and
  • Has a VA-rated injury of 10% or greater, and
  • Has their military retired pay reduced by VA disability payments (VA Waiver)

It is important to note that the previous CRSC requirement to have at least 7200 retirement points no longer applies as of January 1, 2004. Gray area retirees become eligible for CRSC at age 60 when they begin to receive retired pay.

Are TERA Retirees Eligible for CRSC?

Yes, TERA (Temporary Early Retirement Authority) and TDRL (Temporary Disabled Retirement List) retirees are eligible for CRSC.

Are Chapter 61 (Medical) Retirees Eligible for CRSC?

Chapter 61 retirees, also known as medical retirees, are eligible for CRSC, regardless of whether they have more or less than 20 years of service. However, it is important to note that the CRSC entitlement is based solely on the longevity portion of their retired pay, not the disability portion. To determine the longevity portion, a general calculation is to multiply the years of service by 2.5%. For example, if a retiree has 5 years of service, the longevity portion would be 12.5% (2.5% x 5 years) of their retired pay, with the remainder being disability pay.

The CRSC Payment Process: Understanding the Mechanics

For those receiving CRSC, the payment process typically involves three separate payments each month:

1. Service retired pay with the VA Waiver amount deducted
2. CRSC payment
3. VA compensation

The VA Waiver remains visible on the retiree's pay stub, and the CRSC payment serves to restore the combat-related portion of the money deducted by the VA Waiver.

In some cases, retirees may receive only two payments if their VA Waiver amount completely offsets their retired pay. In such instances, they will receive VA compensation and CRSC, with the latter restoring the combat-related portion of the deducted amount.

It is important to note that CRSC is not reflected on the retired pay stub. Instead, it is a separate payment deposited into the same account where the retiree receives their retired pay or direct deposit.

CRSC and Tax Implications

According to current laws regarding the taxability of disability income, CRSC payments are not subject to taxation. This tax-exempt status further enhances the financial support provided to retired service members with combat-related disabilities.

Staying Informed: Monthly CRSC Statements for Retirees

To ensure transparency and keep retirees well-informed, the Defense Finance and Accounting Service (DFAS) has implemented a system to provide monthly detailed information regarding CRSC payments. For DoD members who have a DFAS-MyPay account, they will receive monthly statements outlining their CRSC payments, including disability ratings, unemployability indicators, Purple Heart status, and other entitlement data.

Retirees who do not have a DFAS-MyPay account can contact the Retired and Annuitant Contact Center by calling 1-800-321-1080 to obtain details about their CRSC payments. For retirees from the United States Coast Guard (USCG), National Oceanic and Atmospheric Administration (NOAA), and Public Health Service (PHS), they will need to contact their respective pay agents if they require information about their pay details.

Concurrent Receipt: Navigating CRSC and CRDP

It is important to note that retirees eligible for both CRSC and Concurrent Retirement Disability Pay (CRDP) must choose between these two forms of compensation. CRDP is a separate program that gradually restores retired pay currently being offset by VA disability pay, regardless of whether the disability is combat-related or not.

Recipients have the option to select the more advantageous option each year, as CRDP payment amounts increase annually until fully implemented in 2014. The Defense Finance and Accounting Service (DFAS) or the retiree's pay agent will send an Open Season letter each December, allowing retirees to make their choice for the upcoming year.

Embracing the Future: CRSC's Evolving Landscape

As the CRSC program continues to evolve, it is essential for retired service members to stay informed about any changes or updates that may impact their eligibility or benefits. By staying abreast of the latest developments, they can ensure that they are making informed decisions and maximizing the financial support available to them.

Additionally, retired service members are encouraged to explore other resources and support services offered by various organizations, such as the National Veterans Legal Services Program (NVLSP), which provides free legal representation to medical retirees interested in applying for CRSC.

Conclusion: A Lasting Commitment to Our Heroes

The Combat-Related Special Compensation program stands as a testament to the nation's unwavering commitment to supporting those who have sacrificed their well-being in the line of duty. By providing tax-free monthly payments, CRSC aims to alleviate the financial burden on retired military personnel grappling with combat-related disabilities, ensuring that their sacrifices are not forgotten.

As retired service members navigate the application process and eligibility requirements, it is crucial to seek guidance from trusted sources and leverage the resources available. By doing so, they can ensure that they receive the support they rightfully deserve, enabling them to focus on their recovery and transition to civilian life with dignity and financial security.