RAO Davao City

United States Military Retiree Activities Office Davao City, Philippines

CHAP 61 CRSC CLAIMS 3 July 2008

Posted by Service Officer on July 3rd, 2008

About 20,000 veterans forced out of the military early by a combat-related injury could be eligible for hundreds in special compensation pay under new rules outlined by the services this month. Congressional researchers estimated the new program will cost the Defense Department about $680 million over the next 10 years. The change, mandated by Congress last year, makes veterans who served less than 20 years (i.e. Chap 61, TERA, and TERA) eligible for Combat-Related Special Compensation payments from the Defense Department. Those funds are designed to restore money deducted from troops’ military retirement accounts because they also receive veterans’ disability payouts. The offset can trim a significant portion of the military retirement pay, and veterans groups have lobbied for years to end the deductions. Since 2002, servicemembers with 20 years of military service and a combat-related injury have been receiving monthly Combat-Related Special Compensation, but those with fewer years were not eligible. Now, the new change is effective back to 1 JAN 08 making all combat veterans eligible to apply for six months of retroactive payments and future monthly compensation. Medical and TERA retirees must still provide documentation that shows a causal link between a current VA disability and a combat-related event. Department of Defense guidance defines a combat-related disability in one of the three following ways:

1. A Purple Heart disability, which is a disability with an assigned medical diagnosis code from the Veterans Affairs Schedule for Rating Disabilities, or VASRD, that was attributed to injuries for which the member was awarded a Purple Heart.

2. One with an assigned medical diagnosis code from the VASRD that was:

– incurred as a direct result of armed conflict;

– as a result of hazardous service;

– in the performance of duty under conditions simulating war; or

– through an instrumentality of war.

3. One with an assigned medical diagnosis code from the VASRD that was deemed presumptive or “presumed” by the VA to be incurred as a result of combat operations. More

To receive the special compensation, veterans must be currently receiving military retired pay and veterans disability payments, and must have a 10% or greater rated disability recognized by the military as combat related. The amount of the monthly CRSC pay will be based on troops’ rank, years of service and severity of their injury. In some cases the formula for Combat-Related Special Compensation could actually reduce a veteran’s total monthly payments however, Defense Finance and Accounting service (DFAS) will calculate all of the disability pay impact to make sure veterans are receiving the highest payouts possible and begin CRSC payments within 60 to 90 working days of receiving the approval letter. All veterans, including recently separated servicemembers, will have to apply to receive the new compensation by completing a DD Form 2860 with the required documentation attached. . Required documentation includes a signed claim form and:

a). Copy of Chapter 61 Board results (Chapter 61 claimants only).

b). Copies of ALL VA rating decisions which include the letter and the narrative summaries

c). Copies of ALL DD214’s

d). Medical records that support “HOW” the injury occurred for each claimed disability that meets the criteria for combat-related. Refer to CRSC website to learn what combat-related is.

PDF Claim forms can be downloaded at www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2860.pdf. For additional info and where to send applications refer to

• USA: www.crsc.army.mil

• USN/USMC: www.hq.navv.mil/corb /CRSCB/ combatrelated.htm

• USCG: http://www.uscg.mil/adm1/crsc.asp.

• USAF: http://www.afpc.randolph.af.mil/library/combat.asp.

[Source: Stars & Stripes Leo Shane article 18 Jun 08 ++]

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