What is Combat Related Special Compensation & The Importance to Retired Reservists

Combat-Related Special Compensation (CRSC) provides tax-free payments to retired Veterans (and Retired Reservists) with combat-related disabilities. You must apply for CRSC through your uniformed service. A VA disability decision based on Agent Orange exposure qualifies for CRSC because AO is considered "an instrumentality of war."

Eligibility for Combat-Related Special Compensation:

All of these must be true:

• You’re retired (and entitled to or receiving military retirement pay), and
• You have a VA disability rating of at least 10%, and
• You currently have your DoD retirement payments reduced by the amount of your VA disability payments

To qualify, one of these must be true:

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

Evidence and other documents you’ll need to provide:

Evidence like this that proves your disability or injuries are the result of a combat-related event:

• Service medical records. These must be from when your injury happened. They must show the severity of your medical condition and that it’s combat-related.
  Note: Provide only relevant medical records. Please don’t send us all your medical records.
• Official service records. These include After Action Reports, Investigative Reports, personnel action requests (like DA 4187), and performance evaluations (like NCOERs and OERs), flight orders, AF Form 603
• Decorations and award recommendations. These include Purple Heart citations, Combat Action Badges, medals, and decorations for valor.

Other documents:

• Retirement records. These include retirement orders and the Armed Forces of the United States Report of Transfer.
• Your VA decision notice
• Your DD214

What the evidence must show about your combat-related disability

The evidence must show that your injury happened while you were:

• Engaged in armed conflict (in combat or during an occupation or raid), or 
• Engaged in hazardous duty (like demolition, flying, or parachuting), or
• Participating in war simulation activities (like live fire weapons practice or hand-to-hand combat training), or
• Exposed to instruments of war (like a military vehicle, weapon, or chemical agent such as Agent Orange), or
• Engaged in an activity you received a Purple Heart for

How to request the documents you need

Decision notice: Send us a request in the form of a letter or note. Unless you have kept a copy, be sure to ask for “my VA rating decision letter,” and sign your name. Send your request to your nearest VA regional office.

Find your nearest VA regional office