How does DFAS administer the CRSC/CRDP open season and what timelines should eligible veterans expect?
Executive summary
DFAS administers the annual CRDP/CRSC "open season" by notifying eligible retirees (typically via a December mailing), accepting elections during the open season that normally occurs in January, and coordinating with the services and VA to implement whichever entitlement — CRDP or CRSC — a retiree elects or that law/agency procedures determine is payable (DFAS will by default pay the greater entitlement when appropriate) [1] [2] [3] [4]. Veterans should expect a decision window in December–January, an application requirement for CRSC (DD Form 2860) and automatic DFAS determinations for CRDP, but should also plan for variable processing times and to contact DFAS if calculations or retroactivity questions arise [4] [5] [6].
1. How DFAS structures the annual open season and the paperwork veterans receive
DFAS runs an annual election process commonly called "open season" during which retirees eligible for both Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC) may choose which entitlement they will receive, and DFAS or the retiree’s pay agent typically mails an Open Season letter and an election form in December ahead of the January window [1] [2]. CRDP requires no application — DFAS determines and pays CRDP automatically to otherwise qualified retirees — while CRSC is applied for through a branch-of-service claim on DD Form 2860, because the service must adjudicate which disabilities are combat-related before DFAS will pay CRSC [4] [5].
2. Who decides which payment is made and how DFAS coordinates with the services and VA
Statute and agency practice create a multi‑actor process: branches of service adjudicate CRSC eligibility and notify DFAS, the VA’s compensation figures are used as a baseline for offset calculations, and DFAS performs pay computations and ultimately issues retired pay, CRSC reimbursements, or CRDP adjustments based on those determinations [4] [7]. By policy, DFAS will generally assess which program produces the higher net payment for a retiree and pay that amount unless the retiree timely elects otherwise during open season, meaning DFAS acts as both pay agent and coordinator among DFAS, VA, and the military services [3] [7].
3. Timeline veterans should expect from notice to payment implementation
The established cadence is: DFAS or the pay agent notifies eligible retirees in December and the open season occurs in January, during which elections are made; CRSC applicants must submit DD Form 2860 to their service which then renders a determination that DFAS uses to compute payment [1] [2] [4]. Sources make clear the election window is annual and centered on January, but do not promise exact processing-to-pay dates, and retirees should expect some administrative lag between election, service adjudication (for CRSC), VA/DFAS coordination, and the first pay change — DFAS FAQs and customer service are the published avenues for timing specifics and exceptions [8] [5] [6].
4. What to watch for when choosing and common pitfalls reported
CRSC is tax‑free but only covers combat‑related portions of a rating and requires service approval, so it isn’t automatically superior to CRDP; CRDP restores docked retired pay and appears as an increase in the monthly DFAS check while CRSC may result in separate payments from the service, DFAS, and the VA, producing different tax and gross/net outcomes that change case‑by‑case [3] [7] [9]. Real‑world confusion and calculator limitations have been reported by retirees online — retirees recount receiving DFAS letters with numbers that required phone clarification and note DFAS/VA data mismatches that can affect the decision — so expect to verify DFAS’s computations and, where necessary, contact DFAS or the service personnel office for reconciliations [10] [6].
5. Bottom line and recommended immediate actions veterans should anticipate
Expect a December notice and a January election window, know that CRDP requires no application while CRSC does (DD Form 2860 through the service), and understand DFAS will coordinate with VA and the service to compute and pay the chosen or legally appropriate entitlement — but plan for case‑specific adjudication times and contact DFAS (800‑321‑1080) or consult the DFAS CRDP/CRSC FAQs and the service CRSC office for precise processing and retroactivity questions [1] [4] [6] [5]. Sources do not provide precise guaranteed pay dates after election; that timing depends on DFAS processing, service determinations, and VA data reconciliation [8] [7].