Information verified through October 15, 2026.
The short answer. Combat-Related Special Compensation (CRSC) is not a payment your family keeps receiving after you die. It is paid to the retiree, and by law it is not retired pay, so it does not follow the Survivor Benefit Plan (SBP) annuity to a spouse. The DoD Financial Management Regulation (FMR) adds that a CRSC application has to reach your military department before the member’s death, and that an application from survivors will not be considered. SBP and CRSC still touch in one place: if your retired pay cannot cover your SBP premium, the premium is taken from your CRSC. This guide walks through what each rule says, what survivors can receive from other programs, and what is worth settling while you are here to settle it.
Key takeaways
- CRSC is for the retiree. FMR § 10.2 says an application must be received before the member’s death and that a survivor’s application will not be considered.
- The rating has to come first. FMR § 4.4 requires the VA rating to be awarded before the member’s date of death.
- SBP premiums can come out of CRSC. Only when retired pay is not enough to cover them (10 U.S.C. § 1452(d)(2); FMR § 8.3).
- SBP and DIC are no longer netted against each other. DFAS reports the offset was completely eliminated on January 1, 2023.
- Survivors’ money comes from other programs. SBP through DFAS, Dependency and Indemnity Compensation (DIC) through VA, and final retired pay through DFAS’s arrears process.
Why this question comes up
Most retirees who qualify for CRSC think about it as a monthly deposit and, lately, a back-pay check. The question that follows, usually from a spouse, is simpler and harder: what happens to this if something happens to you? The answer is spread across three places, the CRSC statute, the CRSC chapter of the FMR, and the SBP rules, and none of them was written to be read together.
We went through each one so you do not have to. We do not give financial or legal advice, and an SBP election is a family decision that belongs to you and, where the law requires it, your spouse. Our job here is to show you what the sources say so the conversation at your kitchen table starts from facts.
What the law says CRSC is, and is not
CRSC is authorized by 10 U.S.C. § 1413a. Subsection (g) is one sentence: “Payments under this section are not retired pay.” That matters for survivors, because the Survivor Benefit Plan is built on retired pay. Under 10 U.S.C. § 1447(6), the SBP “base amount” is the amount of monthly retired pay, or a smaller amount (not less than $300) that the retiree designates. CRSC is a different payment, so it is not part of what SBP is built from. We did not find a DoD source that says CRSC increases the base amount, and if that detail affects a decision you are making, DFAS should confirm it in writing.
The statute does not describe a CRSC payment to survivors, and the FMR chapter we reviewed does not either. The chapter does speak to death directly in three places, covered next.
Three FMR rules that apply at death
The CRSC chapter is Volume 7B, Chapter 63 of DoD 7000.14-R (June 2024). Three of its paragraphs bear on a member’s death.
| FMR paragraph | What it says | What it means in practice |
|---|---|---|
| § 10.2 | An application must be received by the military department before the member’s death. An application submitted by the member’s survivors will not be considered. | A spouse or child cannot start a CRSC claim after the retiree dies. If you intend to apply, the application has to be in while you are living. |
| § 4.4 | The member must be entitled to VA compensation for service-connected disabilities, and the rating must be awarded prior to the member’s date of death. | A VA rating decided after death does not qualify a condition for CRSC. |
| § 9.3 | No retroactive CRSC may be paid to a deceased member or to a survivor based on a retroactive VA compensation increase awarded after the member died. | A VA increase granted after death does not create a CRSC payment for the family. |
One caution. The chapter is dated June 2024, a year before the Supreme Court decided Soto v. United States (No. 24-320, June 12, 2025), and the Department of Defense rescinded its later application-date limits on May 14, 2026. We have not found guidance on whether any of this changes for a retiree who dies with an application or a back-pay review still open. Related cases, including Ploe v. United States and Carey v. United States, remain open. If your family faces that situation, it is a question for an attorney, not for us. For the live back-pay picture, read CRSC back pay after Soto.
Where SBP and CRSC do touch: the premium
SBP is an optional annuity. A retiree who enrolls pays a monthly premium, and a surviving beneficiary receives an annuity after the retiree’s death. For spouse coverage, 10 U.S.C. § 1451 sets the annuity at 55 percent of the base amount, and 10 U.S.C. § 1452(a)(1) sets the premium at 6.5 percent of the base amount for the common case. Other cases, including members who entered service before March 1, 1990 and some Chapter 61 retirees, are calculated differently, so check your own election paperwork. Premiums stop after the later of 360 months of payments or the month you turn 70 (10 U.S.C. § 1452(j)).
The premium is normally taken out of retired pay. Here is where CRSC enters. FMR § 1.1.3.2 and § 8.3, citing 10 U.S.C. § 1452(d)(2), say that if the premium cannot be deducted in full from retired pay, it is deducted from CRSC instead. That can happen when a VA waiver cuts retired pay down to a small number or to zero. The practical effect is that a retiree in that position sees a CRSC deposit smaller than the award letter says. If that is you, our guide to reading your Retiree Account Statement shows where each line sits.
If retired pay is short and there is no CRSC to take the premium from, the statute (§ 1452(d)(1)) puts the shortfall on the participant, who must deposit it with the Treasury. We mention it so it is not a surprise.
The SBP-DIC offset change
For years, a surviving spouse who received both an SBP annuity and DIC from VA had the SBP annuity reduced by part of the DIC. Congress phased that offset out. DFAS lists the schedule: two-thirds of DIC in 2021, one-third on January 1, 2022, and “completely eliminated” on January 1, 2023, with eligible surviving spouses receiving “their full SBP payments AND their full DIC payments.” DFAS’s page on SBP withdrawal repeats that since 2023 surviving spouses can receive the full annuity without an offset for DIC.
Why this belongs in a CRSC article: FMR § 8.4 still carries a paragraph, citing 10 U.S.C. § 1450(e), that says an SBP premium deducted from a deceased member’s CRSC will be refunded to the surviving spouse “when DIC offset is applicable.” We read that as a refund tied to the offset, which DFAS says no longer applies, but we have not found a DFAS statement on how the paragraph is handled today. Ask DFAS if your family reaches that point.
What survivors can receive from other programs
| Program | Who administers it | What it is |
|---|---|---|
| Survivor Benefit Plan (SBP) | DFAS | A monthly annuity to the named beneficiary, only if the retiree enrolled. DFAS asks the family to submit DD Form 2656-7, Verification for Survivor Annuity, with supporting documents. |
| Dependency and Indemnity Compensation (DIC) | VA | A monthly benefit for eligible survivors of veterans whose death meets VA’s criteria. VA decides eligibility. |
| Arrears of Pay (final retired pay) | DFAS | Retired pay ends on the date of death. DFAS can calculate a final pro-rated payment after it receives the claim paperwork, which includes Standard Form 1174 signed by two witnesses. |
The family’s first step with DFAS is to report the death promptly. DFAS says prompt reporting avoids overpayment, and that a payment issued after the date of death is reclaimed from the bank. The DFAS Customer Care Center is 1-800-321-1080. Standfast prepares CRSC packets and does not file VA claims, so for DIC the right contact is VA or an accredited representative.
What this means for military retirees
If you are already approved for CRSC, the main point is that it is your payment and it ends with you. Plan your family’s income as if CRSC will not be there, and decide the SBP question on its own merits. DFAS describes a withdrawal route for retirees with a total VA rating held for 10 continuous years, or for five continuous years starting right after discharge, with written consent from the beneficiary, and it states that no SBP annuity is paid after death if you withdraw. We are not recommending for or against it. Read DFAS’s page and weigh potential DIC against the SBP annuity, as DFAS itself suggests.
If you are not yet approved, the FMR rules above make timing a practical matter. A condition’s effective date is set per condition, and since Soto the six-year cap on retroactive CRSC is gone, but none of that helps if the application never reaches your branch while you are living. Our guide to CRSC effective dates explains how the money is measured, and the CRSC calculator shows what your approved conditions could be worth.
If VA waives your retired pay down to zero, check where your SBP premium is coming from. CRSC is the lesser of two numbers: the VA value of your approved combat-related conditions or the retired pay you waived. A premium taken from CRSC lowers what lands in your account but does not change that calculation. How CRSC is calculated has worked examples.
What you should do now
- Find your SBP election paperwork and confirm whether you are enrolled, who the beneficiary is, and which coverage level you chose. If you cannot find it, ask DFAS.
- Open your latest Retiree Account Statement and check whether an SBP premium line appears and whether retired pay covers it. If a premium is coming from CRSC, note the amount.
- If you have not applied for CRSC, start the application while you are living. Your branch page has the filing details: Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard.
- Put your DD-214, VA rating decisions, CRSC award letter, and SBP paperwork in one folder and tell your spouse where it is.
- Write down the DFAS Customer Care Center number and how your spouse would log in to myPay, since DFAS asks that a death be reported promptly.
- If your spouse may qualify for DIC, make sure they know to contact VA or an accredited representative, because that claim is separate from anything CRSC does.
Document checklist
DD-214 · VA rating decisions · CRSC award letter · Latest Retiree Account Statement · SBP election confirmation · Marriage certificate · Beneficiary contact information · DFAS Customer Care Center number
If your branch has already denied a condition, CRSC denied for insufficient evidence covers the reconsideration process, and CRSC and a former spouse covers what a divorce decree can and cannot reach.
Frequently asked questions
Does CRSC continue for my spouse after I die?
Not under the regulation we reviewed. CRSC is paid to the retiree, and the Financial Management Regulation says an application from a member’s survivors will not be considered. A surviving spouse may be eligible for other benefits, such as a Survivor Benefit Plan annuity if you enrolled, or Dependency and Indemnity Compensation from VA, but those are separate programs.
Is CRSC included in my Survivor Benefit Plan base amount?
The statute defines the SBP base amount by reference to monthly retired pay, and 10 U.S.C. § 1413a(g) says CRSC payments are not retired pay. We found no DoD source saying CRSC adds to the base amount. If the question affects an election you are making, ask DFAS to confirm in writing.
Can my SBP premium be taken out of my CRSC?
Yes, in one situation. If your retired pay is not large enough to cover the SBP premium, 10 U.S.C. § 1452(d)(2) and FMR paragraph 8.3 direct that the premium be deducted from your CRSC instead. This can happen when a VA waiver reduces retired pay.
Can my spouse get both SBP and DIC?
DFAS reports that the SBP-DIC offset was completely eliminated on January 1, 2023, so eligible surviving spouses can receive full SBP payments and full DIC payments. VA decides DIC eligibility, and DFAS administers SBP.
Can a survivor apply for CRSC after the retiree dies?
No. FMR paragraph 10.2 says an application must be received by the military department before the member’s death, and that an application submitted by a member’s survivors will not be considered.
The bottom line
CRSC belongs to the retiree. It is not retired pay, it does not become part of an SBP annuity, and the FMR does not let survivors apply for it or collect a retroactive increase awarded after death. SBP and DIC are what protect a surviving spouse, and since January 1, 2023, DFAS says the two are no longer netted against each other. The one place CRSC and SBP meet today is the premium, which comes out of CRSC only when retired pay cannot cover it. Check your own paperwork, and if you have not applied for CRSC, make sure the application is filed while you are living.
Sources
- 10 U.S.C. § 1413a, Combat-related special compensation
- 10 U.S.C. § 1447, Definitions (SBP base amount)
- 10 U.S.C. § 1451, Amount of annuity
- 10 U.S.C. § 1452, Reduction in retired pay (premiums, CRSC deduction, paid-up rule)
- DoD 7000.14-R, Financial Management Regulation, Volume 7B, Chapter 63 (June 2024), paragraphs 1.1.3.2, 4.4, 8.3, 8.4, 9.3, 10.2
- DFAS, SBP-DIC offset elimination schedule
- DFAS, SBP Withdrawal Due to VA Disability
- DFAS, When a Military Retiree Dies checklist (Oct 2023)
- NVLSP, Soto v. United States and Retroactive CRSC FAQs
This article is provided for general educational purposes and is not legal advice, financial advice, or a guarantee of CRSC eligibility, approval, effective date, or payment amount. Rules, guidance, and implementation procedures can change. Veterans should verify current requirements with their military department, DFAS, the Department of Veterans Affairs, or an appropriately accredited representative.