CRSC payments are a monthly benefit for military retirees who also receive VA disability compensation

Concurrent Retirement and Survivor Benefit (CRSC) is a program run by the Department of Defense that lets certain military retirees receive both their military retirement pay and VA disability compensation at the same time. Without CRSC, you would normally have to choose one or the other. The amount you receive depends on your military rank at retirement, your years of service, and your VA disability rating.

CRSC payments are not a separate check. Instead, the military retirement pay you already receive is adjusted upward to account for the VA disability compensation you're may have access to to. The payment arrives on the same schedule as your regular military retirement deposit—typically the first business day of each month through direct deposit to your bank account.

You do not pay anything to receive CRSC. There are no application fees, and you do not lose money from your existing retirement pay to fund it. The program exists specifically to prevent the "offset" that would otherwise reduce your retirement check by the amount of your VA disability rating.

Key Takeaways

  • CRSC payments are calculated using your military retirement base amount, not a fixed dollar figure that applies to everyone.
  • Your VA disability rating (10%, 20%, 30%, and so on) determines how much additional compensation you receive each month.
  • You must have at least 20 years of military service and a VA disability rating of at least 50% to be considered for CRSC.
  • The military pays CRSC directly to your bank account on the same schedule as your regular retirement deposit, with no separate application process once you are approved.

How the military calculates your CRSC amount

The military does not pay a flat dollar amount to every CRSC recipient. Instead, your payment is based on your specific retirement calculation. The military takes your military retirement base pay—the amount you would receive if you retired today at your rank and years of service—and adjusts it based on your VA disability rating.

The exact formula depends on your retirement date and which military branch you served in. For most retirees, the military uses the High-36 method, which averages your highest 36 months of basic pay and multiplies it by 2.5% for each year of service. A retiree with 20 years of service at an E-7 rank, for example, would have a different base amount than a retiree with 30 years at an O-4 rank, even if both have the same VA disability rating.

Once your base retirement amount is set, CRSC adds back the portion of your retirement pay that would have been offset by your VA disability compensation. If your VA rating is 50%, the offset would normally reduce your retirement check by 50% of your disability compensation amount. CRSC restores that money to your monthly deposit.

What VA disability rating you need and how it affects your payment

You must have a VA disability rating of at least 50% to receive CRSC. Ratings below 50%—such as 10%, 20%, 30%, or 40%—do not may have access to. The VA rates disability on a scale of 0%, 10%, 20%, 30%, 40%, 50%, 60%, 70%, 80%, or 100%, and each rating represents a different level of service-connected disability.

The higher your VA disability rating, the larger your CRSC payment will be. A retiree with a 50% rating receives a smaller monthly adjustment than a retiree with a 70% rating, assuming both have the same military retirement base pay. A 100% rating produces the largest CRSC payment. Your rating is determined by the VA based on the medical evidence in your disability claim, not by the military.

If your VA disability rating changes after you start receiving CRSC, your military retirement payment adjusts automatically. The military receives updates from the VA and recalculates your CRSC amount each month. You do not need to reapply or notify anyone of the change.

Who is may be able to access for CRSC

You must meet three conditions to receive CRSC. First, you must have completed at least 20 years of active duty service in the military. Second, you must have a VA disability rating of 50% or higher. Third, you must have retired from the military and be receiving military retirement pay.

Reserve and National Guard members with 20 or more may have access to years of service can also receive CRSC if they meet the VA disability rating requirement. The military counts only the years that count toward your retirement calculation, so time on active duty, active duty for training, and certain other service periods all count.

You do not need to have filed a VA disability claim before you retired. If you file after retirement and receive a rating of 50% or higher, you become may be able to access for CRSC at that point. The military will recalculate your retirement pay retroactively to the date your VA rating became effective.

How to receive your CRSC payment each month

Once you are approved for CRSC, the military deposits your adjusted retirement payment directly into your bank account on a set schedule. Most military retirees receive their payment on the first business day of each month. You choose your bank account when you first enroll in military retirement pay, and that same account receives your CRSC payment.

You can view your CRSC payment amount and your retirement pay breakdown through myPay, the Department of Defense's online portal for military pay. Log in with your military email address or a verified credential, and your Leave and Earnings Statement (LES) will show your gross retirement pay, any deductions, and your net deposit amount. The LES updates after each pay period and shows exactly what you received.

If your bank account changes, you update it through myPay as well. Changes typically take effect within one or two pay periods. If you have questions about your specific payment amount or need to update your banking information, you can contact the Defense Finance and Accounting Service (DFAS) by phone or through their website.

What happens if your circumstances change

If your VA disability rating increases or decreases, the military recalculates your CRSC payment automatically. You do not need to do anything. The VA sends rating changes to the military, and your retirement deposit adjusts in the next pay period after the military receives the update.

If you move to a different state or country, your CRSC payment continues without interruption. Military retirement pay is not affected by where you live. However, some states tax military retirement income differently, so your net deposit (the amount that actually reaches your bank account after taxes) may change if you move.

If you return to active duty after retirement, your CRSC payment may be suspended during the period of active duty. Once you separate again, CRSC resumes. Contact DFAS if you are returning to active duty to understand how it affects your specific situation.

Frequently Asked Questions

Can I get CRSC if my VA disability rating is less than 50%?

No. CRSC requires a VA disability rating of at least 50%. If your rating is 10%, 20%, 30%, or 40%, you do not meet the threshold. If your rating increases to 50% or higher in the future, you become may be able to access at that point.

Is CRSC the same as my VA disability compensation?

No. CRSC is an adjustment to your military retirement pay. VA disability compensation is a separate benefit paid by the VA. CRSC exists to prevent the military from reducing your retirement pay because you also receive VA disability compensation.

What if I retired before CRSC existed?

You can still receive CRSC if you meet the current requirements. The military does not limit CRSC to retirees who retired after a certain date. Contact DFAS to confirm your may be able to access and request a recalculation of your retirement pay if you have not already received CRSC.

Do I pay taxes on my CRSC payment?

Yes. CRSC is part of your military retirement income, and it is subject to federal income tax. Your state may also tax it depending on where you live. The military withholds taxes from your deposit based on the W-4 information you provided.

What if I think my CRSC payment is wrong?

Check your Leave and Earnings Statement in myPay to see the breakdown of your payment. If the amount does not match your expected calculation based on your rank, years of service, and VA rating, contact DFAS by phone or through their website to request a review. Keep a copy of your VA rating letter and your retirement orders for reference.