As of yesterday (20 October 2010) my husband was able to transfer his gi bill to me and our children. After almost two months and a trip to base legal it was finally resolved, apparently the program to allow those with medical discharges to transfer benefits was never created. Therefore, there was no system in place to process the transfer, thus creating automatic denials. Not sure if anyone will be able to use this info, but my husband did transfer the post 9-11 bill benefits 2 months after his separation date. So if you tried to transfer the benefits before your discharge or retirement and where denied, (have to show you tried but were denied) and would have qualified according to the VA websites guidelines, then you may be able to try again at this point. The program has now been corrected and my husband spent about 30 minutes on the phone with AFPC to finalize the retroactive transfer. Supposedly, there is an override key for this situation. Not sure if I can post the individuals name we spoke with on this site…..