CRSC, CRDP open season ends Jan. 31

Published Jan. 18, 2011

INDIANAPOLIS (AFRNS) -- Retirees who are eligible for both Concurrent Retirement and Disability Pay, and Combat-Related Special Compensation can choose which entitlement they prefer to receive during an open season, which ends Jan. 31.

People eligible to participate in the open season will receive a letter detailing the benefits of each entitlement by mail this month. Along with the letter, they will receive an Open Season Election Form, which allows them to choose the type of payment they wish to receive. Federal law prohibits receiving both CRDP and CRSC.

Retirees might base their decision on the difference in monetary value or on the affect each entitlement will have on their taxable income. People can read frequently asked questions about the two entitlements at www.dfas.mil/rapay/rafaqs/crdpcrsc.html.

A chart explaining the differences between CRDP and CRSC is available at www.dfas.mil/rapay/disability/crscandcrdp.html.

People reviewing the comparison table will notice several differences between CRDP and CRSC. Before making a decision they may want to consider:

-- CRDP is subject to federal taxes; CRSC is not.

-- CRDP is subject to division with a former spouse; CRSC is not.

-- Survivor Benefit Plan premiums can be deducted from CRDP, but not CRSC.

Retirees with questions about how an election will affect their taxes should contact a financial adviser or tax professional.

If a retiree feels the information reflected on their form is incorrect, they may contact DFAS at 800-321-1080, 7 a.m. to 7:30 p.m. EST, Monday through Friday. Because Monday is the busiest day, DFAS officiails recommend calling Tuesday through Friday for faster service.

Forms should only be submitted if a retiree is making a change. Envelopes must be postmarked by Jan. 31. If postmarked after this date, the form will not be processed and the current payments will continue. (Courtesy of DFAS)