ARMED FORCES NEWS
DOD FLOATS TWO CRSC POLICY DRAFTS
July 25, 2003

Defense Department officials are seeking to resolve two issues involved with Combat Related Service Compensation: (1) whether CRSC will be paid based on the retiree's actual VA disability rating or a VA determination that the same veteran is 100-percent unemployable; and (2) the level of CRSC payable to retirees who are drawing both VA disability compensation and Special Monthly Compensation. The draft policy decision would allow higher CRSC payments for unemployability only if the combined combat-related disabilities meet threshold requirements for unemployability. If a finding of unemployability rests in part on non-combat-related injuries or illnesses, CRSC payments would not be raised. Issue: CRSC, SMC or Both?Under the draft plan being circulated by DoD officials, if retirees are drawing Special Monthly Compensation for severe disabilities in addition to VA compensation, the CRSC board would determine whether the disabilities are combat-related. For example, if a retiree had lost a foot from enemy fire,ny reduction in retired pay from receipt of SMC might be payable as CRSC. If, however, the loss occurred because of a power-mower accident at home, any reduction of retired pay from receipt of SMC might not be restored by higher CRSC. Even if the entire SMC payment is combat-related, CRSC wouldn't necessarily equal the sum of a retiree's SMC payment plus VA compensation because the purpose of CRSC is only to restore lost retired pay. Thus CRSC would not exceed the amount of retired pay offset.

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