Supreme Court Expands CRSC Back Pay for Military Retirees: What the Soto Decision Means for You

Supreme Court Expands CRSC Back Pay for Military Retirees: What the Soto Decision Means for You

If you’re a military retiree with a VA disability rating tied to combat or hazardous duty — this might be one of the most important legal decisions you’ll ever hear about.

In June 2025, the U.S. Supreme Court handed down a unanimous decision in Soto v. United States that expands access to Combat-Related Special Compensation (CRSC) in a major way. The ruling opens the door for thousands of retirees to receive years of tax-free back pay — even if they filed late or were told their claim was “too old.”

If you’ve ever been denied CRSC or told you could only get six years of backpay, this decision changes everything.

Let’s break it down.

What Is CRSC?

CRSC stands for Combat-Related Special Compensation. It’s a special benefit for military retirees — either those who served 20+ years or were medically retired under Chapter 61 — who have injuries connected to:

Combat operations
Hazardous duty (like airborne or demolitions)
Training that simulates war
Injuries caused by military equipment or vehicles

To qualify, you must be receiving military retired pay and have a VA disability rating for the same conditions.

CRSC is tax-free and is designed to restore the retired pay you lose when the VA offsets your retirement due to disability compensation. In short: if your combat-related injuries are costing you money in your retirement check, CRSC is meant to fix that.

The problem? Many retirees were denied CRSC or told they could only get six years of back pay — because of something called the Barring Act.

That’s where Soto comes in.

What Did the Supreme Court Decide in Soto v. United States?

Here’s the backstory.

Adolfo Soto, a retired Marine, deployed to Iraq and later applied for CRSC. The government agreed he qualified — but only gave him six years of retroactive pay, even though he’d been eligible for much longer. They said his claim was “time-barred” under the Barring Act, which limits most government claims to six years.

Soto took the case all the way to the Supreme Court. And in a 9–0 decision, the Court ruled that CRSC is not subject to the Barring Act.

Why? Because CRSC is a statutory entitlement under 10 U.S.C. § 1413a. It’s not a typical administrative claim — it’s a legal benefit created by Congress. The Court made it clear: if you qualify for CRSC, you’re entitled to it — even if your application comes in years later.

This opens the door for retirees to receive all the back pay they’re owed — not just the past six years.

Who Is Affected by This Decision?

This ruling could affect thousands of military retirees, especially those who:

Never applied for CRSC because they thought it was too late
Were told they only qualified for six years of back pay
Had a claim denied or partially granted due to “timeliness”
Retired under medical retirement with combat-related injuries
Served in combat zones or hazardous conditions but didn’t know they could appeal

If any of that sounds like you — you’re not alone. And now is the time to revisit your CRSC eligibility.

How Do I Know If I Qualify?

Here’s a quick checklist:

✅ Are you a military retiree — either 20+ years or medically retired?
✅ Are you receiving military retired pay?
✅ Do you have a VA disability rating for your injuries?
✅ Were those injuries caused by:

- Combat or enemy action?
- Hazardous duty (like jump school or demolition work)?
- Training that simulated combat?
- A military vehicle, aircraft, or weapon system?

If you checked those boxes, you may qualify for CRSC — and thanks to Soto, you may also be eligible for years of back pay that was previously denied.

What Should I Do Next?

First, don’t assume you’re out of luck just because of an old denial or delay. This ruling reopens the door for many people.

Here’s what we recommend:

Gather your documents:
- DD-214
- VA award letters
- Medical records that explain how your injuries occurred
Check your past CRSC decisions:
- Were you denied because you applied too late?
- Were you only paid six years of back pay?
- Did anyone ever tell you, “You’re not eligible” without reviewing your combat connection?
Get a second opinion — especially now. What wasn’t possible last year may be winnable today.

Why You Might Want Legal Help

CRSC is a powerful benefit — but the application process isn’t simple.

You need to show clear evidence that your injuries are combat-related and fit within the narrow categories of 10 U.S.C. § 1413a. That’s where many applications fall short.

As Marine Corps veterans and military attorneys at the Military Law Center in Carlsbad, California we help military retirees build strong, evidence-based applications and appeals for CRSC and other complex benefits.

Sometimes the key to success isn’t just paperwork — it’s presenting your service story in a way the board understands.

And now, with the Supreme Court on your side, we can go back and correct some of the injustices that may have denied you the full compensation you earned.

Why This Decision Matters So Much

The Soto ruling sends a clear message:
Combat-injured retirees shouldn’t lose out just because they didn’t file in time.

The Department of Defense made mistakes. Retirees were misinformed. Delays happened. But your service — and your injuries — still happened.

You earned these benefits. The law now gives you the chance to claim them fully.

Final Thoughts: Act Now!

Whether you’re a military retiree, a VSO, or a fellow attorney — this is your moment to act to advocate for combat veterans.

If you’ve never applied for CRSC — apply.
If you were denied — reapply.
If you were only paid six years of back pay — challenge it.

We’re here to help.

At the Military Law Center, we specialize in helping military retirees navigate CRSC and other critical benefits. We know what evidence the board needs — and how to frame your case to give you the best shot at success.

📞 Contact us today for a consultation.
Let’s make sure every retiree gets the tax-free compensation they’ve earned.

This blog post is not legal advice. Each case is unique. To find out how the Soto decision may apply to your circumstances, please speak with an attorney.