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Combat-RelatedSpecial

Compensation(CRSC)

P' 19 I 0700 7/NO. 1

FOREWORD

Since December 2002, Combat-Related SpecialCompensation (CRSC) has become an important benefit toretired veterans receiving combat-related VA disabilitypay. This benefit allows qualified veterans to receive fullmilitary retirement pay and VA disability compensationfor combat-related injuries.

In addition to CRSC, another benefit called ConcurrentRetirement and Disability Pay (CRDP), is also availableto eligible veterans. CRDP is for eligible retired veteranswith service-connected disabilities that are NOT combat-related. While this pamphlet focuses primarily on CRSC,it will discuss the differences between CRSC and CRDP.

It is also important to note that the Department ofDefense has issued a new claim form for CRSC; DD form2860, dated January 2007 should now be used for allCRSC claims.

Please contact the Texas Veterans Commission forassistance in filing a claim for CRSC or CRDP. You maycall the Veterans Hotline at 1-800-252-VETS (8387) forthe location and phone number of the TVC counselor orVeterans County Service Officer in your area.

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COMBAT-RELATEDSPECIAL COMPENSATION

Enacted by Congress on December 2, 2002, the Combat-RelatedSpecial Compensation (CRSC) program restores military retired payto eligible retired veterans with combat-related injuries.

The CRSC program is a special part of a larger legislative initiative torestore military retirement compensation that is on par with Federalservice benefits.

Congress has authorized two programs for disabled retired veterans:Combat-Related Special Compensation (CRSC) and ConcurrentRetirement Disability Program (CRDP).

COMBAT-RELATEDSPECIAL COMPENSATION

CRSC provides veterans a monthly compensation replacing the VAdisability offset. Eligible veterans with 20 or more years of service,who have "combat-related" VA-rated injuries, will no longer havetheir military retirement pay reduced by the amount of their VAdisability compensation. Instead they will receive both their fullmilitary retirement pay and their full VA disability compensation.

EligibilityRetired veterans with combat-related injuries must meet ALL of thefollowing criteria to apply for CRSC:

1. Active, Reserve or medically retired with 20 years of creditableservice.

2. Currently receiving military retired pay.3. Have a 10% or higher VA-rated combat injury.4. Military retired pay is reduced by VA disability payments.5. Must provide documentary evidence that the service-connected

injury was the result of one of the following:

a. Training that simulates warb. Hazardous dutyc. An instrumentality of ward. Armed conflict

TVC Pamphlet, No. 1, January,/February 2007 Page 1EJTVC Pamphlet, No. 1, January/February 2007 Page 1

Combat-Related vs. Service-Connected

Situation Combat-Related Service-Related

Simulating War

Must be contributed to Tactical Road Routine Road Marches"training for combat" Marches

Physical Fitness Physical FitnessTraining in Combat TrainingSituation

Combat Obstacle Confidence ObstacleCourses CoursesRanger Training Ranger Training(Rappelling) (Battalion Run)

Hazardous Service

Linked to specific Flight Duty Military job relatedincident injuries not caused by

a specific incident (i.e,Assigned infantry,artillery, engineers,etc.)

Demolition Duty

Parachute Duty

Diving Duty

Instrumentality ofWar

Instrument must be Routine auto accident Military sedan in

used in military in unique military civilian vehicletraining vehicle accident

Tanks, armored Repairing militaryvehicles, etc. vehicle in

maintenance setting

Ammunition and Improper use ofexplosive devices pyrotechnics

Lifting artillery round Off-post weaponincidents

Rappelling frommilitary aircraft

TVC Pamphlet, No. 1, January/February 2007 Page 2

Occurred in combatzone

Gunshot wound Service-relatedinjuries in combatzone (i.e.,maintenance)

Shell fragment Sportingwounds events/recreational

activities in a hostilearea

Aircraft shot down Diseases by naturenot consideredPresumptive (stress-related heart disease,high blood pressure,etc. unless doctorindicates otherwise)

Terrorist bomb

Post Traumatic StreetDisorder (PTSD)

Prisoner of War(POW>30 days)

Effective January 1, 2004, CRSC eligibility was extended to retireeswith combat-related VA disability ratings between 10% and 50%.

Additionally, reservists need only 20 years of qualifying service(supported by documentation from the applicable branch of servicesuch as a 20-year letter, retirement orders or a statement of service)in order to be eligible.

Please note that qualified reservists will not receive CRSC until they

begin to receive retired pay at age 60.

Temporary Early Retirement Authorization (TERA) retirees are noteligible to receive CRSC unless they have returned to active duty andaccumulated enough service time to meet the 20-year requirement

before retiring for the second time.

CRSC I & CRSC IICRSC I was set up to award compensation to any active dutyretiree with 20 years of active duty service that has either:

- been awarded a Purple Heart of at least 10% or- been awarded a VA combined rating of at least 60% (which was

caused by a Combat-Related Situation)

O TVC Pamphlet, No. 1, January/February 2007

Armed Conflict

Page 3

For those who qualify for CRSC I, the earliest date possible for anydisabilities is the CRSC I program effective date of June 1, 2003.

CRSC II expanded the program to allow CRSC compensation toveterans:

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without disabilities linked to a Purple Heartactive duty retirees with less than 60% CRSC compensation andall Reserve Component Retirees who are required to wait until Age60 to draw their retired pay

For those who qualify for CRSC II, the earliest date possible for anydisabilities is the CRSC II program effective date of January 1, 2004.

Once it is determined which program (CRSC I or CRSC II) theveteran may be eligible for, the official retirement date is considered.If the date the veteran retired is after the applicable program datethen the retired date is used as the earliest date possible for CRSC.

CRSC I and CRSC II Eligibility Chart

Eligibility CRSC I CRSC IIRequirements

Minimum VA 60% 10%Disability Rating or

10% with a PurpleHeart

Length of Active Reservist Active ReservistService Duty 7200 Duty 20 year

20 Years Reserve 20 Years Letter andActive Points Active Age 60Duty Duty

Currently VA Compensation VA CompensationReceiving and Retirement Pay and Retirement Pay

Eligibility Date Retroactive to 1 June Retroactive to 1 Jan2003 2004

CRSC Award Letters- CRSC award letters prepared by the services prior to September 1,

2006 reflect an effective date of entitlement to CRSC benefits equalto the date military retired pay was reduced.

QTVC Pamphlet, No. 1, January/February 2007 Page 4

a Actual entitlement to CRSC and compensation due to the CRSClegislation is June 1, 2003, or the date service connection for thespecific condition is granted, whichever is later.

* Under governing DoD authority, entitlement to CRSC benefits canbe established up to six years prior to date of the application to theCRSC Board but not earlier than June 1, 2003. Therefore, whenDoD establishes entitlement to CRSC benefits, they will notify VAand any compensation withheld will be restored, if in order.

CONCURRENT RETIREMENTAND DISABILITY PAY (CRDP)

CRSC should not be confused with Concurrent Retirement andDisability Pay. The two payments have different eligibilityrequirements and different taxability.

CRDP is a phased-in restoration of the retired pay deducted frommilitary retirees' accounts due to their receipt of Department ofVeterans Affairs (DVA) compensation (reflected on Retiree AccountStatements as the "VA waiver"). The phased-in restoration beganJanuary 1, 2004 with the first payments dated February 2, 2004,

EligibilityThe veteran is eligible if he/she has a DVA-rated, service-connecteddisability of 50% or higher, unless the veteran is a disability retireewith less than 20 years of service or a retiree who combined militarytime and civil service time to qualify for a civil service retirement. Ifthe veteran combined military time and civil service time in order toenhance civil service retirement from OPM, he/she is eligible forCRDP payments; however, he/she will have to reinstate retired payby coordinating with OPM.

If the veteran is eligible for CRDP, payments will beginautomatically.

Pay DeliveryCRDP payments are "diect deposited or mailed based on currentretired pay information.

CRDP payments will reflect as a decrease in the VA waiver deductionon the Retiree Account Statement; however, the veteran will continueto receive the same amount from the DVA.

TVC Pamphlet, No. T.,January/February 2007 Page 5

Phase-In Schedule

Additional waivedYear compensation payable after

2004 base year amount

2005 10%2006 28%2007 49.60%2008 69.76%2009 84.88%2010 93.95%2011 98.18%2012 99.64%2013 99.96%2014 100%

Effective Dates:* Effective January 1, 2005, phase-in of CRDPwas eliminated for

retirees rated 100 percent disabled on a schedular basis.* Effective January 1, 2009, phase-in of veterans receiving

compensation at the 100 percent rate based on IndividualUnemployability will be eliminated.

TaxabilityCRDP payments are taxable according to the veteran's currentretired pay Federal Income Tax Withholding (FITW) tax rate andmay affect the amount he/she wants to have deducted for StateIncome Tax.Withholding (SITW).

Collection ActionsCRDP payments are subject to collection actions for alimony, childsupport, community property, garnishment and government debt.

DIFFERENCESBETWEEN CRSC & CRDP

* CRSC is specifically for retired veterans with combat-relatedinjuries. It is not subject to taxation or division with a formerspouse.

* CRDP is for retired veterans with service-connected injuries.Payments of CRDP are taxed and subject to division of retired paywith former spouse.

TVC P~zmphlet, No. 1, January/February 2007 Page 6W 'T VC Pamphlet, -No. ;. januaY/Pebruary.:20 Page 6

CRSC vs. CRDP (cannot receive both)

[2005 Example [CRSC ~ [CRDP[Full Concurrent Yes NO - 10 yr phase inReceipt (except 100% rating)

Payment at 50% $663 $153combined rating

[VA Rating Starts At [10% 50%

Compensation [Retroactive ][Not Retroactive

Taxable TAX FREE TAXABLE

Individual YES NOUnemployment (IU)

[Survivor Benefit [NO NO

File Claims ][YES NO - Automatic

Qualified Injury Combat - Service Connected

If the veteran is eligible for both CRDP and CRSC he/she mayparticipate in the CRDP/CRSC Open Season. This annual OpenSeason lets the veteran choose which payment he/she would prefer toreceive (Federal law states that the veteran can receive CRDP orCRSC; not both).

Beginning in late December, eligible retirees will be mailed aCRDP/CRSC Open Season Election Form. The form only needs to bereturned if the veteran wants to change from CRDP to CRSC, or viceversa. To keep things the way they are, do nothing. The paymentsreceived will continue uninterrupted.

To help the veteran make a more informed decision, the form willinclude a comparison of the amounts to which he/she would beentitled under CRDP and CRSC as well as information about thecollection actions and taxes to which each type of payment is subject.

To change from CRDP to CRSC or vice versa, the form must bereceived here at DFAS by January 31st. If the form is received afterthis date it will not be processed and the payments currently receivedwill continue uninterrupted.

The change in payment will be effective with the payment on the firstbusiness day of February. Due to the thirty-day processing

E] TVC Pamphlet, No. 1, January/February 2007 Page 7

timeframe, the first payment may be received on the first businessday of March and a retroactive adjustment for the payment whichwould have been paid on the first business day of February.

HOW TOAPPLY FOR CRSC

Veterans who wish to apply for CRSC should first review all theeligibility criteria for the benefit. Next, documentary evidence shouldbe gathered. This includes copies of:

- ALL copies of DD 214/215's. If the veteran has more than one, besure to include them all with the application. Be sure to retain acopy for the veteran's records.

- ALL VA rating decisions including the VA letters, the actual VArating decisions and the code sheets. Sometimes the older originalrating decisions are the only ones that actually describe how theinjury or disability occurred.

- Send any copies of physicals, medical board proceedings andmedical records documenting the type of injury or disability andhow the injury or disability occurred - such as "left ankle fracturefrom hard parachute landing fall."

o Send only those portions of medical records that verify theinjury or disability and how it occurred.

o Do not send all of the in-service or VA medical records.o Do not send lab slips, EKGs, x-rays, or stress tests.

Highly Recommended Documents:1. Medical Records2. Award Certificates and/or narratives3. Military Medical Treatment Facility Records4. Military Orders

Suggested Documents:1. Military Quadrennial Physical Examinations2. Military Retirement Physicals3. Physical Evaluation Board Proceedings4. Clinical Records or Notes5. Sick Slips6. Western Union Casualty Notification Telegrams7. Officers Record Brief8. Enlisted Records Brief

TVC Pamphlet, No. 1, January/February 2007 Page 8

The next step is to determine if the veteran's VA-rating decisionsstate "HOW" the injury occurred (If not, go though personnel andmedical records to find any evidence to verify the claim).

To officially submit a claim for the benefit, DD Form 2860 "Claim forCombat-Related Special Compensation" must be completed andsubmitted to the appropriate branch of service (listed below). Thisform can be downloaded at:https://www.hrc.armv.mil/site/crsc/documents/ClaimForm.pdf. It canalso be requested from TVC Headquarters.

*Please note - this form has been recently updated so make sure theform dated January 2007 is used.

DEPARTMENT OF THE ARMYCombat-Related Special Compensation (CRSC)200 Stovall StreetAlexandria, VA 22332-0470

AIR FORCEUnited States Air ForceDisability Division (CRSC)550 C Street West Ste 6Randolph AFB TX 78150-4708Phone: 1-800-616-3775Website: http://ask.afpc.randolph.af.mil/crsc/

COAST GUARDCommander (adm-l-CRSC)U.S. Coast GuardPersonnel Command4200 Wilson BoulevardArlington, VA 22203-1804Website: http://www.uscg.mil/HQ/psc

NAVY and MARINE CORPSSecretary of the Navy Council of Review BoardsAttn: Combat-Related Special Compensation Branch720 Kennon Street SE, Suite 309Washington Navy Yard, DC 20374Phone: 1-877-366-2772Website: www.hq.navy.mil/corb/CRSCB/combatrelated.htm

TVC Pamphlet, No. 1, January/February 2007 Page 9

National Oceanic & Atmospheric Administration (NOAA)CORPSDirector, Commissioned Personnel CenterSSMC/Room 121001315 East West HighwaySilver Spring, MD 20910

UNITED STATES PUBLIC HEALTH SERVICEDivision of Commissioned PersonnelOffice of the Director, Room 4A-155600 Fishers LaneRockville, MD 20857-0001

For Specific questions regarding CRSC and/or CRDP, call 1-800-321-1080, 6am - 6:30 pm (CST), Monday through Friday.

Sources:U.S. Army CRSC Divisionhttps:i/www.hrc.army.mil/site/crsc/index.html

Military.comhttp://www.military.com/benefits/military-pay/special-pay/combat-related-special-compensation

Defense Finance and Accounting Servicehttp://www.dod.mil/dfas/

U.S. Department of Veterans AffairsFast Letter - 07-01, January 22, 2007http://www.tvc.state.tx.us/VA Fast Letters.htm

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Texas Veterans CommissionHeadquartersP.O. Box 12277Austin, Texas 78711-2277

http://www.tvc.state.tx.usVETERANS' HOTLINE:

info@tvc. state.tx.us1-800-252-VETS (8387)

The Texas Veterans Commission does not discriminate on the basis of race,color, national origin, sex, religion, age or disability in employment or providing services.

PRSRT STDU.S. POSTAGE PD.

AUSTIN, TEXASPERMIT NO. 520