Combat-Related Special Compensation (CRSC) is a crucial, tax-free payment for retired veterans who sustained combat-related disabilities.
Yet, many veterans unknowingly miss out on significant back pay due to a six-year limit, enforced under the federal Barring Act. Enter Soto v. United States: a Supreme Court case challenging whether that six-year window shortchanges combat-injured retirees.
With around 9,000 veterans affected, the ruling could expand retroactive CRSC to cover every year they were eligible.
This article explores how CRSC works, why it matters, and what the high-stakes Soto lawsuit could mean for disabled veterans seeking the benefits and protections they rightfully earned.
Overview: The U.S. Supreme Court is reviewing Soto v. United States, a landmark case involving Combat-Related Special Compensation (CRSC). This decision could expand retroactive CRSC payments beyond the existing six-year limit for roughly 9,000 affected veterans – and possibly future retirees. Below, you’ll find everything you need to know about CRSC, the lawsuit, how to apply, and how the decision might affect your benefits.
In this Article
Key Highlights
- The Supreme Court (as of April 28, 2025) is weighing if a 6-year limit on back pay for CRSC is lawful.
- CRSC is a tax-free benefit for eligible retired veterans with combat-related injuries (nvlsp.org).
- The federal Barring Act currently caps back payments at 6 years. Soto’s lawsuit challenges this limit.
- About 9,000 veterans could receive additional tax-free disability pay if the Court rules in Soto’s favor.
- Veterans should check CRSC eligibility and apply promptly to avoid losing potential back pay.
The Soto v. United States case asks whether combat-wounded veterans can collect all the CRSC retroactive pay they’re owed beyond the current six-year limit. If the Court rules for Soto, around 9,000 affected veterans (and many future retirees) may receive extra tax-free disability compensation. Veterans should review CRSC status, apply promptly, and follow the Supreme Court’s decision closely.
Quick Comparison – CRSC vs. CRDP
| Feature | CRSC (Combat-Related Special Compensation) | CRDP (Concurrent Retirement and Disability Pay) |
|---|---|---|
| Eligibility |
|
|
| Tax Status | Tax-Free | Taxable |
| Purpose |
|
|
| Statute of Limitations on Back Pay (Current) | 6 years (under Barring Act, in dispute in Soto v. U.S.) | N/A (CRDP starts automatically, no special back-pay limit) |
What Is CRSC (Combat-Related Special Compensation)?
CRSC is a special tax-free payment for military retirees with combat-related disabilities, designed to replace the portion of retired pay they waive due to receiving VA compensation.
- Purpose: Congress created CRSC so disabled retirees wouldn’t lose their earned retirement if they also receive VA disability pay for combat-related injuries.
- Tax Status: CRSC payments are not taxable.
- History: Started in 2003 for 20-year retirees with combat injuries; expanded in 2008 for those medically retired under Chapter 61.
- Scope: About 95,000 retirees currently receive CRSC (rand.org).
CRSC Eligibility: Who Can Qualify?
- Retired Status: You must be entitled to or receiving military retired pay (includes 20-year retirees and medically retired vets with ≥30% disability rating under Chapter 61).
- VA Disability Rating: Must have at least a 10% rating from the VA.
- VA Offset to Retired Pay: You’re receiving VA disability compensation which reduces your military retirement pay.
- Combat-Related Injury: At least one service-connected disability must be tied to combat or hazardous duty conditions (e.g., firefights, training accidents with live fire, instrumentality of war, or exposure to combat-related agents).
- Application: You must proactively apply to your service branch to receive CRSC benefits. It’s not automatic.
If you meet these criteria, it’s worth filing a CRSC claim. Remember, you cannot receive CRSC and CRDP at the same time; you must choose which one benefits you more.
Why Is CRSC Back Pay Limited to 6 Years?
- Federal Barring Act: The 6-year cap arises from 31 U.S.C. § 3702, also known as the Barring Act, which imposes a six-year statute of limitations on most claims against the government.
- DoD Policy: The Department of Defense applies that general 6-year limit to CRSC, meaning veterans can’t claim retroactive CRSC older than six years.
- Case Example: If eligible since 2010 but you applied in 2018, you only get back to 2012. Two years of owed compensation could be forfeited.
- Legal Dispute: Soto v. United States argues that CRSC’s own statute overrides the Barring Act, potentially ending the 6-year limit.
Soto v. United States: The Class-Action Lawsuit Explained
Marine veteran Simon Soto contends he (and others) were wrongly denied full retroactive CRSC beyond six years. He initially won at trial, lost on appeal, and now the Supreme Court will decide if the 6-year cap stays (nvlsp.org).
Background
- Who Is Soto? A Marine who served in Iraq, medically retired in 2006 for PTSD and other conditions. The VA rated him 100% in 2009, effective 2008.
- When Did He Apply? He didn’t apply for CRSC until June 2016, about 7–8 years after he first qualified.
- Result: He received only 6 years of back pay (retro to 2010), missing about 1.5 years (2008–2010). He filed a class-action lawsuit for roughly 9,000 similarly impacted vets.
Legal Journey
- District Court (2021): Ruled in Soto’s favor, stating the CRSC statute can displace the Barring Act. Ordered the government to pay full back pay for class members owed <$10,000.
- Appeals Court (2023): Reversed in favor of the government. Held that CRSC doesn’t explicitly override the 6-year statute.
- Supreme Court (2025): Granted certiorari, heard oral arguments on April 28, 2025. Decision expected by June 2025.
The dispute centers on whether CRSC legally “provides its own mechanism” for settling claims, making it immune to the Barring Act. If yes, veterans could receive unlimited retroactive payments dating to their eligibility date.
Impact: What the Supreme Court’s Decision Could Mean
- If Soto Wins:
- Thousands of veterans in the class-action get back pay beyond six years.
- The DoD would revise its CRSC policies, eliminating the 6-year rule for future claims.
- Potential for significant lump-sum payments to veterans (tax-free).
- Any CRSC applicant who previously missed the deadline could reapply or request recalculation.
- If Soto Loses:
- The 6-year cap remains. Delayed applicants will keep losing older entitlements.
- Roughly 9,000 veterans in the class receive no additional back pay.
- Veterans groups might push Congress to fix the law explicitly.
- Highlights the importance of applying for CRSC promptly.
Beyond finances, there’s a symbolic weight. A ruling for Soto reaffirms support for veterans’ benefits, while a ruling against Soto might dishearten some who believe they were unfairly denied earned compensation.
Potential Outcomes for Veterans Depending on the Ruling
| Scenario | Consequence for Veterans | Action Steps |
|---|---|---|
| Supreme Court Sides with Soto |
|
|
| Supreme Court Upholds 6-Year Limit |
|
|
How to Apply for CRSC Benefits
Complete DD Form 2860 (Combat-Related Special Compensation) and submit it with evidence to your branch’s CRSC office.
Step-by-Step Application Process
- Download DD Form 2860: Search online for “DD Form 2860” or visit Military.com’s CRSC page.
- Fill It Out Completely: Provide personal details, service history, and each disability’s combat-related circumstances.
- Gather Supporting Documents:
- VA rating decisions
- Service medical records showing the injury event
- Proof of combat or hazardous conditions (e.g., Purple Heart, line-of-duty investigations)
- Military personnel records (DD-214, retirement orders)
- Submit to Your Service Branch: Each branch has a CRSC board or office. Addresses are listed in the form instructions:
- Army: U.S. Army Human Resources Command (Fort Knox)
- Navy/Marines: Secretary of the Navy’s Council of Review Boards
- Air Force: AFPC (Randolph AFB, TX)
- Coast Guard: Personnel Service Center (D.C.)
- Track Your Claim: It can take several months to process. Follow up if no response.
- Receive Decision & Pay: If approved, DFAS (Defense Finance and Accounting Service) will compute monthly CRSC and any back pay (currently limited to 6 years unless changed by the Court).
If Denied
- Request reconsideration with new evidence.
- Appeal through your branch’s CRSC appeals process.
- Seek help from NVLSP or a local Veterans Service Organization.
Practical Tips: Prepare Now, Regardless of the Outcome
- Don’t Delay: Apply as soon as you suspect eligibility. Under current rules, the clock is ticking on your 6-year window.
- Collect Evidence Early: Documentation is key, especially for proving “combat-related” conditions.
- Stay Updated: Watch for Soto v. United States updates from official sources like NVLSP, Military.com, or the VA.
- Seek VSO Help: Organizations like American Legion, DAV, VFW have service officers who can assist for free.
- Financial Planning: If you’re part of the class and might receive a lump sum, plan how you’ll use or invest that tax-free money.
Frequently Asked Questions
What Is Soto v. United States About
It’s a class-action lawsuit by Marine veteran Simon Soto and roughly 9,000 other retirees, challenging the 6-year statute of limitations on Combat-Related Special Compensation (CRSC) back pay. A Supreme Court ruling could allow unlimited retroactive payments for combat-injured veterans.
Who Qualifies for Combat-Related Special Compensation?
Military retirees (20+ years or medically retired) with at least a 10% VA-rated disability linked to combat or hazardous duties qualify for CRSC. You must receive retired pay reduced by VA disability compensation and prove at least one “combat-related” condition.
Why Is There a 6-Year Limit on CRSC Back Pay?
The Department of Defense currently applies the federal Barring Act, which imposes a six-year statute of limitations on claims against the government. Soto’s lawsuit argues that the CRSC statute overrides this limit.
How Does CRSC Differ from CRDP?
CRSC is tax-free compensation for combat-related disabilities, and you can qualify even if you’re medically retired with fewer than 20 years. CRDP (Concurrent Retirement and Disability Pay) is taxable and requires 20+ years of service plus a 50% or higher VA rating. You cannot receive both at the same time.
How Much Money Could I Receive in Retroactive CRSC?
It depends on your rank, years of service, and disability ratings. Lump-sum payments for missed CRSC can reach several thousand dollars (especially if multiple years are owed). Currently, only up to 6 years are paid unless Soto’s lawsuit succeeds.
When Will the Supreme Court Make a Decision on Soto v. United States?
The Supreme Court heard oral arguments on April 28, 2025. A decision is expected by the end of the Court’s term, likely June 2025, although the exact release date is not guaranteed.
What Happens If I Already Applied and Only Got 6 Years of Back Pay?
If Soto wins, you may be able to request additional retroactive pay. If the ruling favors the government, the 6-year limit stays. In that case, applying late means permanently forfeiting older payments.
Can I Apply for CRSC If I’m a Disabled Veteran but Didn’t Serve 20 Years?
Yes. CRSC eligibility was expanded to include medically retired veterans with a disability rating of 30% or more. Even those with fewer than 20 years can qualify, provided their injuries are combat-related.
How Do I Prove My Injuries Are Combat-Related?
Provide supporting documents like VA rating decisions, service medical records, combat awards (e.g., Purple Heart), line-of-duty findings, and any evidence showing the injury happened in combat or combat-like conditions (hazardous duty, training with live ordnance, etc.).
You can seek free help from the National Veterans Legal Services Program (NVLSP), local Veterans Service Organizations (VFW, DAV, American Legion), or state/county VA offices.
These groups have experience navigating CRSC and can assist with paperwork and appeals.
The Bottom Line
The Soto v. United States case could dramatically impact how much retroactive CRSC veterans can receive. While the legal arguments may be technical, the real-world effects are straightforward: more money in the pockets of combat-injured veterans, or a continued limit that may deny them benefits they believe they’ve earned.
If you’re a retired veteran with combat-related injuries:
- Apply for CRSC now if you haven’t – don’t risk missing the 6-year window if Soto’s case is unsuccessful.
- Monitor updates from NVLSP and other reputable sources for the Supreme Court’s final ruling.
- Gather all medical and service records to strengthen your claim or re-claim if the 6-year limit ends.
Regardless of the Court’s decision, awareness of CRSC is rising, which is good news for veterans who might otherwise overlook a valuable benefit. Stay informed, seek help from trusted organizations, and ensure you receive the full measure of compensation owed to you for your combat-related service.
Disclaimer: This content is intended for general informational purposes only and does not constitute legal advice. For personalized guidance, consult an attorney or qualified Veterans Service Officer.
