Check military retired pay, CRDP and CRSC

Practical guide

Who this is for

Military retirees with VA disability compensation, especially those comparing DFAS statements or a CRDP/CRSC election.

Eligibility and coverage rules

• DFAS describes CRDP as restored retired pay, normally taxable. Eligible retirees receive it automatically; that does not mean every veteran or every disability rating qualifies.
• CRSC requires a branch-of-service determination of qualifying combat-related disabilities. A VA rating alone is not that determination. Non-taxable describes US treatment here, not an independent Thai tax ruling.
• Some disability retired pay has different taxable treatment. The label 'disabled veteran' cannot determine the taxable portion of all DFAS payments.

Steps to take

1. Collect the retiree account statement, VA award and DFAS tax statement; distinguish the VA waiver, gross retired pay, CRDP restoration and any separate CRSC payment.
2. Use the service's CRSC process if potentially eligible; do not submit a civilian FERS/CSRS inquiry as though OPM administers CRSC.
3. If offered an election, compare the actual payments and consequences using DFAS guidance and individual tax advice rather than comparing gross headline amounts alone.
4. For a payment move overseas, confirm the payer's supported direct-deposit route and account instructions. Keep the old account open until a payment arrives successfully at the new bank.

Important limits

A 100% VA rating does not by itself make all military retired pay tax-free or create CRSC eligibility.

Documents checklist

• Confirm the eligibility or treatment that applies to your household.
• Gather the records described above and store them privately.
• Check the current official source before acting.
• Keep a dated copy of applications, agency replies and confirmations.