How does the Major Richard Star Act change eligibility for CRSC and CRDP?
Executive summary
The Major Richard Star Act would expand who can receive concurrent receipt of military retired pay and VA disability compensation by removing the long-standing “offset” for a new group: veterans with combat-related disabilities who currently get Combat-Related Special Compensation (CRSC) but do not meet the 20‑year service threshold for Concurrent Retirement and Disability Pay (CRDP) under current law (CRDP normally requires 20 years of service and a 50%+ VA rating) [1] [2]. In practice the bill makes those combat-injured, Chapter 61 retirees eligible to participate in the existing DFAS open season and choose between continuing CRSC or switching to concurrent receipt (CRDP/Concurrent Military Retirement Pay and DVA Disability Compensation), with important tax and retroactivity consequences [3] [4] [5].
1. What eligibility rules look like today — CRDP versus CRSC
Under current law, CRDP (concurrent receipt) is limited to retirees with at least 20 years of service and a VA service-connected disability of at least 50%, while CRSC is a DoD program that reimburses some or all of the retired pay forfeited because of VA disability and is available to those whose disabilities are combat-related regardless of length of service [1] [2]. CRSC therefore functions as a partial remedy for combat-injured retirees who do not qualify for CRDP; CRDP fully removes the offset for qualifying long‑service retirees [2] [1].
2. What the Major Richard Star Act actually changes about eligibility
The text of the Major Richard Star Act amends Title 10 to drop the offset for disability retirees with combat-related disabilities, effectively extending concurrent receipt to retirees who qualify for CRSC (combat-related rating at least 10%) but have fewer than 20 years of service — in short, folding that group into concurrent‑receipt eligibility where they weren’t before [5] [1] [2]. Legislative language in both House and Senate versions targets Section 1413a(b) of Title 10 and sets the amendment to take effect the first day of the month after enactment for subsequent payments [5] [6].
3. How the change would work operationally and who gets to choose
Advocates and administrative guidance indicate the bill would make affected combat-injured retirees eligible for the existing DFAS “open season” that lets CRSC recipients elect whether to remain in CRSC (tax‑free CRSC payments) or switch to concurrent receipt from DoD and VA compensation, with DFAS communications (letters during the open season) guiding that choice [3] [4]. MOAA and other analysts note not everyone would switch automatically; some veterans may keep CRSC because it can be tax‑free and more advantageous depending on individual factors [3].
4. Scale, fiscal framing, and limits of the change
Analysts estimate tens of thousands of retirees would be affected: DoD reported 95,001 retirees receiving CRSC in FY2021 and about 50,302 of those were disability retirees—numbers used to suggest a substantial cohort could become newly eligible for concurrent receipt under the Star Act if they had under 20 years’ service [2]. MOAA and other groups put the Chapter 61 CRSC cohort at roughly 52,304 who might be authorized to switch in an open season, while defenders of the bill emphasize it is actuarially scored, not retroactive, and would not provide back pay [3].
5. Tradeoffs, open questions and why some veterans might decline switching
The choice between CRSC and concurrent receipt involves tradeoffs: CRSC is often tax‑free and can include reimbursements for waived retired pay, while concurrent receipt increases gross monthly cash but may be taxable (MOAA examples show individual differences in net benefit) [3] [7]. The reporting and bill text leave open granular administrative details about transition timing, precise tax treatment for individuals, and how DFAS will present choices, so final outcomes depend on implementation guidance after enactment [5] [4]. Sources disagree only on emphasis: advocacy groups stress parity for combat-injured retirees, DoD actuarial notices frame fiscal effects, and veterans’ organizations warn individuals must run the math before switching [3] [2].