2022 AFBA Financial Planning Guide

compensation for “service related” disabilities. To be eligible for this compensation, two basic criteria must be met: a. VA disability rating of 50% or more; and b. Retired with 20 years of Active or Reserve Duty and receiving retired pay that is offset by VA payments. Unlike CRSC, disabled retirees do not have to apply for CRDP compensation. DFAS will automatically begin payments based upon information contained in the retired pay system. In those cases where the retiree is in a full VA waiver status, DFAS will obtain the address or direct deposit information from the VA. All eligible retirees will receive a letter confirming their eligibility for CRDP payments. CRDP is treated as a restoration of retired pay. Consequently, it cannot exceed the retired member’s normal retired pay based upon length of service. Additionally, since this compensation is considered retired pay, the payment is taxed and subject to garnishment and division at time of divorce. Since both the CRSC and CRDP serve to restore lost retired pay, they are mutually exclusive. In other words, retirees

cannot receive both CRSC and CRDP payments at the same time. DFAS will establish the most advantageous payment for those retirees who qualify for both payments. However, retirees will have an annual “open season” or election period during which they can change their payment from the option selected by DFAS. The chart below shows an overview of the CRSC and CRDP programs. 4–9. RETIREMENT SERVICES OFFICES (RSO). The services provide retiree activity offices at selected installations. Although the majority of these organizations are operated on a volunteer basis, the Army supports a paid RSO staff in many areas. The chart on the next page provides a listing of various RSO facilities 4–10. RETIREMENT PAY SCHEDULE. Retired and annuitant pay is due on the first of the month. However, if the first falls on a weekend or holiday, retirees get paid on last business day of the prior month and annuitants get paid on the first business day of month.

Information Table — CRSC and CRDP CRSC


Restores military retirement pay that was previously offset by disability compensation. Retired with 20 or more years of Active or Reserve Duty. Receiving retired pay (that is offset by VA payments). National Guard or Reserve member must be eligible to retire based on service (normally age 60). Must have a service related disability rating of 50% or more.

Program Description

Provides special compensation pay for combat related disabilities.

Entitled to and/or receiving military retired pay. Have a combat related VA disability rating of 10% or higher. Waived VA pay from retired pay.

Eligibility Criteria

VA Rating Qualification

Combat related disabilities

Service related disabilities




Divisible with Former Spouse Administration Application Requirements



Military Departments


No application needed (eligible retirees will be paid automatically)

Must Apply


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