Comparision of Regular and Permanent Disability Retirement

B

Bigben

PEB Forum Regular Member
PEB Forum Veteran
Registered Member
Hello,

I'm new to this forum and also to the MEB process. I'm a bit confused and seems that when comparing the two, it looks like I'll be loosing if I'm found unfit and permanently disabled versus if I had thought of retiring before this process was initiated for regular retirement. My escalated medical conditions led to me get a P3 for upper and lower. After calculating the differences, it looks that way and I might not be understanding the entire calculation, but it doesn't seem to add up.

My current situation:
Took the Redux back some time early in my career.
In February-2013 I'll have 22 years active and current rank of CW4.
Currently going through the MEB process for several unfit for duty medical issues.
Spouse with 1-dep under 18 and 1 over 18 in college.

Scenario:
1.Lets say worse case DoD gives me a rating of 75%/90%VA, according to the calculation it comes up to 4,491 including VA compensation.
2.Lets say worse case DoD gives me a rating of 60%/90%VA, according to the calculation it comes up to 3,593 including VA compensation.

But if I had decided to retire at 22 years which rounds up to 47% of my base pay 5,988 (last 36 months average), it would be about 2,814 plus I would think that VA compensation would be 2,092 and would equal to 4,906.

Does this seem right or am I missing something here? Or would they would give the higher of the two (what would have been regular retirement versus permanent medical disability)?

What the benefits between the two?

Thanks for the help.

Ben
 
First thing first, I don't understand the redux so someone else is going to have to address that.

You seem to have an error in your retirement, unless that is the redux. No matter what the DoD gives you, your DoD pay will drop down to what you earned for retirement once the VA starts paying. If your earned retirement is 47% (again I don't understand the redux) but you are given 75% DoD, you will collect 75% until the VA kicks in then it drops down to the 47%. So in the end you will be collecting 47% DoD and 90% VA. This also isn't addressing if any of these issues are combat related. I hope this answers your question to some degree.
 
If you are unfit for a combat injury. My understanding as it was explained to me is that you receive your retirement with no reduction and whatever the VA pays you. That is as long as you have 20 or more years.
 
Jeep Freak,

I appreciate the response.. So basically this calculator on DFAS is not accurate and doesn't really do any good for someone over 20?

http://www.dfas.mil/dfas/militarymembers/woundedwarrior/disabledretireest.html#

With the redux, how it works is that at 20 you basically you have 40% plus 3.5% each year afterwards.


Either way, I'm assuming that over 20, you would be getting what you would be getting normally at a regular retirement pay that you've earned plus the VA compensation added at a time you're put on permanent retirement status, correct?

This stuff can very confusing..

Thanks,

Ben
 
Ben Guerra said:
Jeep Freak,

I appreciate the response.. So basically this calculator on DFAS is not accurate and doesn't really do any good for someone over 20?

http://www.dfas.mil/dfas/militarymembers/woundedwarrior/disabledretireest.html#

With the redux, how it works is that at 20 you basically you have 40% plus 3.5% each year afterwards.


Either way, I'm assuming that over 20, you would be getting what you would be getting normally at a regular retirement pay that you've earned plus the VA compensation added at a time you're put on permanent retirement status, correct?

This stuff can very confusing..

Thanks,

Ben
Click to expand...
Over 20 you receive LOS retirement plus full VA benefits. The benefit to a medical retirement (chapter 61) is you are not penalized as harsh for the redux. The redux penalty is waived, but you still don't receive the COLA increase (I believe it's a one time readjustment later), but your 10% would be reinstated.

Your 10% would be the benefit to a medical retirement over regular. I know I have posted the regs before on this site, but if you go to DFAS and look around you can find the info on their site.
 
On the Redux if found unfit, you won't be on the hook for the 30K. You will retire at 50% High Three.
Now just remember once you hit 23yrs Redux does not matter any more your back to 50%. So Med Board or 23
years not to worry about Redux. I did the same thing, now the key is DOD must find your above the line conditions at 30%. That's what you need to get your 50% retirement from DOD. The VA portion for service connected disability, they base there % from your ability to work and mantain that job with your current disabilities. For the Redux portion I think you can find it 1338-32 DOD instruction, just google it and you will find it.
 
Over 20 you receive LOS retirement plus full VA benefits.
Click to expand...

I really..really appreciate everyone's responses and I've gained so much knowledge here..

I'm not sure what's LOS means (tried to google) and also and sorry if I don't grasp it, but the computation I see that when you're rated by DoD and then VA that the VA compensation is rolled up into the % given by DoD. I guess I'm trying find out if over 20, one would get, for instance 50% of 6000 is 3000 and on top of that you get the additional lets say 2000 from the VA for a total of 5000 or does 2000 get's subtracted 3000(50%) giving you 1000 taxable income with a grand total of 3000 instead. I'm understanding this from the excel sheet or online computation example.

Or does roll over of VA into DoD computation only applies under 20 or for some other reason?

I'm getting some where though.

Thanks,
Ben
 
Hey Ben, DOD and the VA use the same table for rating's the difference is that the DOD calculation is based off your above the line med issues that have you going through the MEB/PEB process. The VA rates everything below the line.
Think of it this way, whatever your med boarding for is delt with at the PEB level. That's your temp retirement or perm retirement. The magic number is 30% DOD, now the VA come's in and rates you for everything that is service related. This can be kind of confusing. Now when it come's to pay you will get CRDP pay that is automatic. CRDP is where you get two checks once a month. One is 50% retirement pay from DOD and the % that the VA will give you for your service connected disablities. That can range from 10%-100%. If you have any combat related injurys you can apply for CRSC. Now this can be some what of an headache, you will have to find out what's best for you in the long run.
 
Ben Guerra said:
I really..really appreciate everyone's responses and I've gained so much knowledge here..

I'm not sure what's LOS means (tried to google) and also and sorry if I don't grasp it, but the computation I see that when you're rated by DoD and then VA that the VA compensation is rolled up into the % given by DoD. I guess I'm trying find out if over 20, one would get, for instance 50% of 6000 is 3000 and on top of that you get the additional lets say 2000 from the VA for a total of 5000 or does 2000 get's subtracted 3000(50%) giving you 1000 taxable income with a grand total of 3000 instead. I'm understanding this from the excel sheet or online computation example.

Or does roll over of VA into DoD computation only applies under 20 or for some other reason?

I'm getting some where though.

Thanks,
Ben
Click to expand...
Length of Service (LOS). You will receive LOS + full VA benefits on top. That's called CRDP like John posted. CRSC could provide tax breaks. As is, without CRSC, you would be taxed on DoD retirement, but not on VA compensation. In the event you apply for and are awarded CRSC, some or all of your DoD compensation could be tax free.

It may be minimal, but like you mentioned at 23 years you would be at 50.5% retired under normal circumstances plus full VA compensation. If you were medically retired at 23 years you would at a minimum receive 57.5% DoD plus full VA compensation. That's because redux negates that reduction penalty and like John said, you're not on the hook for repayment either.
 
Yup pretty close. Medical after 23 years rather you took redux or not is very beneficial if your rated over 50% DoD. Cash wise and benefit wise you come out way ahead. Of course your still broken, but it makes life easier not having to make up the income gap so much.
 
I hear you.. I can look back and say I've been on a very fast train, gave it all I could mentally and physically! helped thousands throughout my career and for the last 10 years, and continue to through a forum like this. www.themotorpool.org

I really thank all of you for your service and for the advice you've given to me here on this great forum.

Thanks..

Ben
 
Please do not forget vets.yuku.com, it is the retiree's version of pebforum. I do not know the people as welll as here but alot of your "long term" stuff is very well explained/laid out there. Really if not for members helping members, we would be just as screwed as our predecessors were after WW1/2 and korea/vietnam/gulf 1. IF i am afforded a liveable wage via medical and SSDI I hope to become an advocate via the AL/VFW or any other organization that will let me come and volunteer a couple hours a week.
 
You must log in or register to reply here.
Top