Disability Annuity?

CSM493

CSM493

PEB Forum Regular Member
PEB Forum Veteran
Registered Member
Hey all. I am the FNG with all the stupid questions. I have almost 29 years of total service with over 15 on active duty, but I am currently reserve going through the medical process. I have 6 conditions/injuries that have all been certified as service-connected and/or in the Line of Duty. I have a 70% VA Disability. In the reserve medical process, is there any outcome that involves the award of an immediate annuity? Or do I get medically retired and have to wait until age 60 to draw the pay? I am only 48 years old and I am looking for the money now - I can no longer work...
 
CSM493.

Welcome! Not to worry about having questions, that's the purpose of the site.

If the PEB finds you unfit for your conditions rated at least 30%, you will draw immediate retirement pay. If you end up with a less than 30% rating, you will have the choice of accepting severance pay or accepting your reserve retirement (drawn at age 60).

Hope you find helpful info here. A good place to start is the Guide to PEBFORUM (link in my sig block). Please let us know any other questions.
 
Thanks Jason. So now that the Army is supposed to follow VA guidelines in determining ratings, it sounds like I should be able to hit the 30% point.

I am going to cruise around the site, I am sure my answers are all here somewhere. This site is a really useful tool.
 
Greetings,
I am currently in the Army reserves with 22 years, 6 active duty. I came off Active duty from Iraq in 2006. I found out I have ms 6 months ago. Currently, I am working on a VA disab packet. Should I try to get a PEB as well, and how will this effect my retirement? Will I receive part of my retirement before turning 60? I think not.
Regards, John
 
For John Carroll,
Go ahead and do the PEB, it will not hurt your retirement.
If the give you 20% or less, you will be "gray area" retired and draw your reitrement at age 60.
If you recieve 30% or greater, you will be medically retired and possibly able to draw retirement pay now. But you will definately recieve full retirement benifits now, to included Tricare. You will be a "blue card" retiree.
I am going through the sae process right now. My converted retirement at age 60 for the retirement points I have is about 21% of my current "maxed out" base pay. My medical retirement will be 30% of my base at 8 convert years for a SSG/E6. So 21% x $3370 = $707; 30% x $2950 = $885.
Just my opinion.
 
The Tricare benefits associated with medical retirement are absolutely important, especially if you have dependents who can qualify for this coverage. The cost for family coverage is extremely low compared to other medical insurance products on the market. It will give you an option outside the VA system. Good luck with your future health.

fdm
 
Jason said:
CSM493.

Welcome! Not to worry about having questions, that's the purpose of the site.

If the PEB finds you unfit for your conditions rated at least 30%, you will draw immediate retirement pay. If you end up with a less than 30% rating, you will have the choice of accepting severance pay or accepting your reserve retirement (drawn at age 60).

Hope you find helpful info here. A good place to start is the Guide to PEBFORUM (link in my sig block). Please let us know any other questions.
Click to expand...
Question for Jason-Going through the process too-now eligible for reserve retirement at age 60, but going through a MEB. I understand if you are rated at less than 30% you can elect to collect at 60, but what if you are rated at over 30%-can you still elect to collect at age 60?? Also, I am confused by Lost Tango-What is base convert years? If I took the disability retirement, I would lose 10 years service I bought back for civil service. If I wait to age 60, I would not lose the 10 years. I am already 100% P&T from the VA, but nothing is really ever P&T. Who can provide guidance about which way is better. 10 years active duty, 19 years guard, 5500 points. I am guessing I would be rated at 40% by the PEB.
 
Let me try to explain how Guard Medical and Regular Retirement are figured. A member of the active duty receives 1 retirement point per day of active duty. That is 365 for a normal year and 366 for a leap year. For an active duty retirement one must acquire 7200 active duty points. We in the National Guard and reserves receive 15 active duty points for our Annual Training. The rest of the points we acquire are inactive duty points. A typical Guard year equals 15 active duty points, 48 inactive duty points and 15 member points.
A member receives 2.5% per 360 points for retirement. That is why a member of the Active Duty retires at 20 years and 7200 points with a 50% retirement. 20 * 2.5 = 50% of their base pay
If you take your points for retirement and divide them by 360 this will give you your Converted Active Duty Years. 5500 / 360 = 15.28 Converted Active Duty Years
Retirement
For Guard and Reserve retirement, we take our converted active duty years and multiply by the 2.5% to get our retirement percentage. 15.28 * 2.5 = 38.2% is your retirement percentage. This percentage will be multiplied by your current and future (age 60) Base pay in order to determine your retirement annuity.
Medical retirement is figured slightly different. Your converted active duty years are use to determine what your years of service are in order to determine what your base pay will be. Your medical condition(s) will determine what your percentage will be. If you get a medical with a 40% rating, the 40% will be multiplied by the base pay of a 14 (15.28) year member.
The following is a current publication on National Guard Retirement
http://www.arng.army.mil/soldierresources/Documents/ARNG%20Information%20Guide%20for%20non-regular%20retirement%2015%20Apr%202009.pdf
 
LostTango,

You are correct about the calculation of determining points. However, I don't think this is right:

LostTango1 said:
Medical retirement is figured slightly different. Your converted active duty years are use to determine what your years of service are in order to determine what your base pay will be. Your medical condition(s) will determine what your percentage will be. If you get a medical with a 40% rating, the 40% will be multiplied by the base pay of a 14 (15.28) year member.
Click to expand...

For Guard and Reserves, the actual percentage awarded is applied to the members retired base pay. The retired base pay is calculated in a number of different ways based on the members circumstances. The different options are spelled out in this publication: Physical Evaluation Board Forum - PEB Library - DoDFMR Chapter 7b (Computation of Retired Pay) .

The exception to the above is if the member has 20 years or more of active federal service and the years are multiplied by 2.5% and this number is larger than the disability award, then the member will get the higher figure as a percentage to be applied to the retired base pay (using the calculation from the DODFMR).

The years of service for a member is used in a number of different ways. It is used to calculate eligibility for the eight year rule, whether or not the member is eligible for CRDP, and (as described above) for calculating percentages that may be applied to retired base pay.

I think the main difference from what you described above is that it seems to calculate on how any member with 15.28 years would be compensated while the actual calculation will depend mostly on how the members actual situation (including what they actually earned on active duty, or time spent on active duty, among other possibilities).

Your post was helpful, though, in understanding how to calculate length of service.
 
Gentleman. THANKS-I just saw this. I am so CONFUSED.Jason, I am sending you a private message. Thanks

Jason said:
LostTango,

You are correct about the calculation of determining points. However, I don't think this is right:



For Guard and Reserves, the actual percentage awarded is applied to the members retired base pay. The retired base pay is calculated in a number of different ways based on the members circumstances. The different options are spelled out in this publication: Physical Evaluation Board Forum - PEB Library - DoDFMR Chapter 7b (Computation of Retired Pay) .

The exception to the above is if the member has 20 years or more of active federal service and the years are multiplied by 2.5% and this number is larger than the disability award, then the member will get the higher figure as a percentage to be applied to the retired base pay (using the calculation from the DODFMR).

The years of service for a member is used in a number of different ways. It is used to calculate eligibility for the eight year rule, whether or not the member is eligible for CRDP, and (as described above) for calculating percentages that may be applied to retired base pay.

I think the main difference from what you described above is that it seems to calculate on how any member with 15.28 years would be compensated while the actual calculation will depend mostly on how the members actual situation (including what they actually earned on active duty, or time spent on active duty, among other possibilities).

Your post was helpful, though, in understanding how to calculate length of service.
Click to expand...
 
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