Combat-Related Special Compensation (CRSC) for Wisconsin Veterans

To qualify for Combat-Related Special Compensation, you must meet strict federal criteria outlined in 38 U.S.C. § 1413 and 38 C.F.R. § 3.351. You must be a retired military member who receives military retirement pay from the Department of Defense—active duty service members and reserve components are generally ineligible unless you have retired under specific military disability provisions.

Your service-connected condition must be rated as combat-related by the VA. The VA recognizes combat-related injuries as those incurred as a direct result of armed conflict or from an instrumentality of war during a period of war, armed conflict, or military operation. This includes injuries from enemy action, training accidents during wartime, or blast injuries in designated combat zones.

You must have a VA disability rating of at least 10 percent for your condition. The condition must have occurred while on active duty, active duty for training, or inactive duty training. Your discharge must be under conditions other than dishonorable. Service in all eras qualifies, including World War II, Korea, Vietnam, Gulf War, Operation Iraqi Freedom, Operation Enduring Freedom, and post-9/11 operations.

There are no income or asset limits for CRSC eligibility. Surviving spouses and dependents cannot receive CRSC in their own right—only the veteran who meets the criteria can receive the benefit. However, your dependents may be eligible for Dependency and Indemnity Compensation (DIC) if you are deceased. The VA presumes certain conditions are combat-related, including conditions rated as service-connected that are documented in military records as combat-related.

In fiscal year 2024, Combat-Related Special Compensation monthly payment amounts range from $50 to $3,737, depending on your military rank at retirement and your VA disability rating.

Payments are calculated using your military retirement rank and your VA disability percentage. The highest CRSC rates apply to senior officers and enlisted personnel with 100% disability ratings. For example, a retired E-9 (Master Chief Petty Officer or Sergeant Major equivalent) with a 100% disability rating receives the maximum monthly amount, while a retired E-1 with a 10% rating receives the minimum.

All CRSC payments receive the annual Cost of Living Adjustment (COLA) each January, indexed to the Consumer Price Index. The 2024 COLA increased CRSC payments by 3.2 percent retroactive to December 2023. Your exact payment amount is determined by a specific rate table maintained by the VA based on your rank and disability rating combination.

Payments are issued monthly through direct deposit to your bank account. If you are eligible for both CRSC and Concurrent Retirement and Disability Pay (CRDP), you generally receive CRSC because it is the more favorable benefit for combat-related conditions. You cannot receive both CRSC and CRDP simultaneously.

Wisconsin provides no additional state-level supplement to Combat-Related Special Compensation benefits. CRSC is a purely federal program administered exclusively by the Department of Veterans Affairs under federal statute (38 U.S.C. § 1413). The state of Wisconsin does not augment, enhance, or provide parallel payments to federal CRSC recipients.

However, Wisconsin does offer other state-specific veterans benefits that may complement your federal CRSC income. Wisconsin veterans with service-connected disabilities may qualify for the Wisconsin Property Tax Credit for Veterans with Disabilities, which provides property tax relief based on disability rating percentage. Additionally, Wisconsin offers in-state tuition benefits for veterans attending University of Wisconsin schools, educational grants through the Wisconsin GI Bill Tuition Remittance Grant, and veterans job training programs through the Wisconsin Department of Veterans Affairs.

Wisconsin's county Veterans Service Offices, located in each county, can assist you in understanding how your CRSC income affects eligibility for other state benefits and can help you maximize your total benefits package. These offices are free and staffed by trained veterans service representatives. If you receive CRSC and have additional questions about state benefits coordination, contact your local county Veterans Service Office or the Wisconsin Department of Veterans Affairs in Madison.

Combat-Related Special Compensation claims are frequently denied due to insufficient evidence that the condition is combat-related, even when the veteran has a VA service-connected disability rating. The VA strictly defines combat-related injuries as those directly caused by armed conflict or enemy action. Many denials occur when the veteran has a service-connected condition but cannot document that it originated in combat—for example, a back injury sustained during non-combat training or a disease acquired in a non-combat environment.

Another common reason for denial is lack of military retirement status. The VA receives applications from veterans who are not retired military and therefore ineligible for CRSC. Active duty service members, members of the Reserve or National Guard without retirement status, and veterans who were discharged rather than retired cannot receive CRSC. The VA verifies retirement status through Defense Department records; if your record does not show active duty retirement with pay, your claim will be denied.

Insufficient documentation of the combat-related nexus is the leading cause of CRSC denials. Even if your condition is service-connected, the VA must confirm it is combat-related. Missing evidence includes: military service records that specifically document the combat incident or injury, medical documentation from the time of injury linking the condition to combat, statements from unit personnel who witnessed the injury, or explicit VA findings in your disability rating decision that the condition is combat-related.

To build a stronger initial application, obtain your complete military medical records from the VA, request a nexus letter from your VA-treating physician explaining how your condition is combat-related, gather statements from fellow service members who witnessed the incident, and ensure your DD 214 clearly documents your service in a designated combat zone. Include all military service records and any prior VA documentation that supports the combat origin of your injury.

If your CRSC application is denied, you have the right to appeal through one of three appeals lanes: Supplemental Claim, Higher-Level Review (HLR), or Board of Veterans' Appeals (BVA). Each lane has specific timelines and is best suited to different circumstances.

The Supplemental Claim lane is best if you have new evidence not submitted with your original application—for example, a newly obtained medical opinion, military records you did not previously have, or witness statements. You must file within one year of the original VA decision. Processing time is typically 4 to 6 months. Use VA Form 20-0995 and submit new evidence supporting your claim that your condition is combat-related.

The Higher-Level Review (HLR) lane is appropriate if you believe the VA made a factual or procedural error in evaluating existing evidence but you do not have new evidence. A more senior VA employee reviews the file. You have one year to file (VA Form 20-0996). Processing takes 4 to 6 months. This lane does not allow new evidence but can be faster if the VA misinterpreted what you already submitted.

The Board of Veterans' Appeals (BVA) lane is suited for complex cases or when you disagree with the VA's interpretation of law. You must file within one year (VA Form 10182). The BVA is an independent board within the VA that conducts hearings (in-person, video, or phone) and issues written decisions. Processing can take 18 to 24 months depending on the backlog. You can request a hearing before a Veterans Law Judge.

All appeals are free. You can represent yourself or request free assistance from a VA-accredited Veterans Service Officer through your county Veterans Service Office in Wisconsin, a Veteran Service Organization, or a VA-certified agent. Never pay for appeals assistance—it is illegal. The Veterans Appeals Improvement and Modernization Act of 2017 reformed the appeals process to provide faster decisions and more options.