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Commentary | Jan. 13, 2026

Retirees: don’t miss the Combat-Related Special Compensation tax benefit!

By CDR Benjamin Mazyck

Retired from the Coast Guard? Then read on. You may be eligible for extra, tax-free monthly pay through Combat-Related Special Compensation (CRSC). 

What is CRSC? 

CRSC is tax-free monthly compensation available to military retirees with Department of Veterans Affairs (VA) certified disabilities linked to combat or combat training; aviation duty, diving, rescue swimmer operations, or hazardous boat duty; or hazardous exposures (such as asbestos, benzene, heavy metals, radiation, or chemical/toxic agents). 

Expanded eligibility 

Congress expanded CRSC in 2015 to include Coast Guard missions like aviation, diving, rescue swimming, and surf operations, and again in 2022 to include hazardous exposures. 

How to apply

  1. Complete DD Form 2860 (CRSC Application) 
  2. Provide supporting documentation that ties your condition to Coast Guard duty – medical records, retirement orders, Line of Duty (LOD) determinations, mishap reports, and witness statements. Please note that each disability requires its own documentation set. 
  3. Include your DD-214 with the package 
  4. Submit to the Disability Evaluation Branch (PSC-PSD-MED) for eligibility review at: ARL-SMB-CGPSC-PSD-CRSC@uscg.mil 

Pay and Personnel Center (PPC) in Topeka manages payments, and the average processing time is three to four months. 

Why it matters 

Every dollar counts. Because CRSC is tax-free, retirees keep the full amount of the benefit. And CRSC acknowledges the dangers of Coast Guard missions and exposures, ensuring retirees receive equal recognition alongside their Department of War (DoW) counterparts. 

Questions and additional info 

If you have any questions, please contact the CRSC program or visit their webpage.  

-USCG- 

 
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