CRDP vs CRSC: Side-by-Side Comparison

CRDP
Concurrent Retirement and Disability Pay
Minimum VA Rating
📊 50% or higher
Combat-Related Requirement
❌ No - any service-connected disabilities qualify
Application Required
✅ No - completely automatic
DFAS automatically enrolls eligible retirees when you reach 50% VA rating
Processing Time
⚡ Immediate when eligible
Tax Treatment
💵 Taxable (same as retirement pay)
Years of Service Required
📅 20+ years (or Chapter 61 with 20+)
Payment Structure
💰 Two separate payments
One from DFAS (retirement) + One from VA (disability)
Typical Monthly Amount
📈 Usually higher dollar amount
🎯 BEST FOR:
  • Retirees with 50%+ non-combat disabilities
  • Those who want simplicity (no paperwork)
  • Lower tax brackets (15% or less)
  • States with no military retirement tax
  • Combat-related percentage under 60%
CRSC
Combat-Related Special Compensation
Minimum VA Rating
📊 10% or higher
Combat-Related Requirement
✅ Yes - only combat-related disabilities
Includes combat, hazardous duty, Agent Orange, burn pits, Purple Heart
Application Required
📝 Yes - must apply through service branch
Processing Time
⏱️ 60-120 days typical
Tax Treatment
🎉 100% TAX-FREE
CRSC payment is completely tax-free - significant advantage for higher earners
Years of Service Required
📅 20+ years OR Chapter 61 with 30%+ disability
Payment Structure
💰 Three components
Reduced retirement + VA disability + CRSC (tax-free)
Typical Monthly Amount
📈 Often lower, but tax-free
🎯 BEST FOR:
  • 70%+ of disabilities are combat-related
  • Purple Heart recipients
  • Higher tax brackets (22%+)
  • States that tax military retirement
  • Chapter 61 with <20 years (only option)