What is the Major Richard Star Act and CRSC?

The Major Richard Star Act is proposed bipartisan legislation designed to eliminate an "unjust offset" that currently prevents combat-injured veterans from receiving both their full military retired pay and their full VA disability compensation. Combat-Related Special Compensation (CRSC) is an existing program that allows eligible military retirees with combat-related disabilities to receive their retired pay in addition to their VA disability pay, specifically designed to address a similar "concurrent receipt" issue for certain groups. The Major Richard Star Act aims to extend full concurrent receipt to a specific group of combat-injured veterans not fully covered by current CRSC provisions.

Understanding the Major Richard Star Act

The Major Richard Star Act is a critical piece of proposed legislation that addresses a long-standing financial inequity for a specific group of combat-injured veterans. It has garnered overwhelming bipartisan support in Congress.

• Purpose: The primary goal of the Major Richard Star Act is to end what is widely considered an "unjust offset" in veterans' benefits. Currently, many military retirees are subject to a "concurrent receipt" rule, meaning their military retired pay is reduced dollar-for-dollar by the amount of their VA disability compensation. While programs like CRSC exist to mitigate this, the Star Act targets a group that still faces this reduction.
• Beneficiaries: This legislation is specifically designed to support approximately 52,304 combat-injured veterans. These are veterans who receive Combat-Related Special Compensation (CRSC) but, due to current regulations, are still not eligible to receive their full retired pay and VA disability pay without an offset. This group often includes those medically retired with fewer than 20 years of service due to combat-related injuries, who are disproportionately affected by the offset.
• Impact: If passed, the act would allow these combat-injured veterans to receive both their full military retired pay and their full VA disability compensation concurrently, without any reductions. This ensures they receive the benefits they earned through their service and sacrifices.

What is Combat-Related Special Compensation (CRSC)?

Combat-Related Special Compensation (CRSC) is a special entitlement for military retirees whose disabilities are a direct result of combat or other combat-related activities. It was established to address the "concurrent receipt" issue for eligible veterans.

• Purpose: CRSC provides tax-free payments to eligible military retirees that effectively restores the retired pay amount offset by their VA disability compensation. It allows these veterans to receive both their full retired pay and their VA disability pay.
• Eligibility: To be eligible for CRSC, a veteran must generally:
  • Be a military retiree (including medically retired veterans).
  • Have a combat-related disability, which could stem from:
    • Armed conflict.
    • Hazardous duty.
    • Instrumentalities of war (e.g., injuries from military weapons).
    • Simulated war (e.g., training exercises that simulate combat).
  • Be receiving military retired pay and VA disability compensation.
• How it Works: CRSC is paid by the Department of Defense (DoD) through the Defense Finance and Accounting Service (DFAS). The amount of CRSC paid is equal to the amount of retired pay that would otherwise be offset by VA disability compensation, up to the amount of the retired pay itself. It is a separate payment from both military retired pay and VA disability compensation and is not taxable.
  • Learn more about CRSC eligibility and application through DFAS.
  • For general information on VA disability compensation, visit the Department of Veterans Affairs.

The Problem: The Concurrent Receipt Offset

Traditionally, federal law prohibits military retirees from simultaneously receiving both their full military retired pay and their full VA disability compensation without an offset. This is often referred to as the "concurrent receipt" issue. The rationale behind this offset is that a service member should not be compensated twice by the government for the same period or condition.

• Financial Impact: For many veterans, this means their military retired pay is reduced, dollar-for-dollar, by the amount of their VA disability compensation. While CRSC was created to mitigate this for combat-related disabilities and Concurrent Retirement and Disability Pay (CRDP) for those with 20+ years of service and high disability ratings, a significant gap remains.
• The Unjust Gap: The Major Richard Star Act seeks to close this remaining gap for specific combat-injured veterans, particularly those who were medically retired due to combat injuries with fewer than 20 years of service. Even if they receive CRSC, their full VA disability compensation may still exceed their retired pay, leading to a continued offset that is not fully recovered by CRSC alone. The Star Act aims to ensure that these veterans, who often incurred severe injuries in the line of duty, are fully compensated without penalty.

Major Richard Star Act vs. CRSC: Key Distinctions

While both the Major Richard Star Act and CRSC aim to address concurrent receipt for combat-injured veterans, they target slightly different groups or aspects of the offset.

The Major Richard Star Act represents a crucial effort to rectify a long-standing injustice, ensuring that all combat-injured veterans receive the full benefits they rightfully earned through their service and sacrifice.