Pay Calculations past 20

JoePlasm

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I've been getting conflicting answers and hoping to find something more definitive. (This question only affects the DoD pay - nothing to do with VA pays or compensations)

Background: I have a buddy who just finished his MEB and getting orders sometime this week. He and I are in similar situations, both past 20, both being medically retired before we wanted to for non-deployable conditions. He went through IDES and they gave him his DA 5892 (compensation worksheet). It shows his years of service calculation (Yrs x 2.5% x base pay) and his disability calculation (DoD % x base pay). He was told he'll get which ever he chooses, usually the higher of the two.

Conflicting answers:
1) He was told that High 3 does not matter for MEB compensation - even after 20 yrs of service! That he will get what he chooses of his work sheet regardless. The counselor at IDES told him that when he did his worksheet.

2) I've been told by my PEBLO liaison, and by the nurse case manager that after 20yrs, it's high 3 for DoD compensation - period - regardless of DoD%.


Why this matters:

My buddy and I both have only 1 year in our current rank. If it's Answer 1 (above) then we both will have higher retirement pay from DoD because it's not averaged over 36 months. It states clearly it's flat Base Pay at time of separation. But if it's Answer 2 (above), then his worksheet is inaccurate and his actual retired pay will be less then he was told.

This matter for me because my unit is trying to decided on doing MEB this year or next year (they have space for me to stay and work, without affecting mission, if I have a compelling argument, but not long term). Answer 1 means they let me go when every they want and nothing changes, Answer 2 would mean I should try and convince them to let me stay 1 more year for the better retirement pay.


So which is it? What's your experience, is there a section of Title 10 or Army Reg that governs this?
 
Following. I don't know the answer but those are good questions. I'm crossing over 20 but at (expected on appeal) 80% DoD. Would I draw my high 3 or 75% of my base pay? Like you, I can't seem to get a good answer. I would think since you passed your 20 you would get high 3 but with a medical retirement, that seems to muddy the waters for a lot of people's situations.
 
I've been getting conflicting answers and hoping to find something more definitive. (This question only affects the DoD pay - nothing to do with VA pays or compensations)

Background: I have a buddy who just finished his MEB and getting orders sometime this week. He and I are in similar situations, both past 20, both being medically retired before we wanted to for non-deployable conditions. He went through IDES and they gave him his DA 5892 (compensation worksheet). It shows his years of service calculation (Yrs x 2.5% x base pay) and his disability calculation (DoD % x base pay). He was told he'll get which ever he chooses, usually the higher of the two.

Conflicting answers:
1) He was told that High 3 does not matter for MEB compensation - even after 20 yrs of service! That he will get what he chooses of his work sheet regardless. The counselor at IDES told him that when he did his worksheet.

2) I've been told by my PEBLO liaison, and by the nurse case manager that after 20yrs, it's high 3 for DoD compensation - period - regardless of DoD%.


Why this matters:

My buddy and I both have only 1 year in our current rank. If it's Answer 1 (above) then we both will have higher retirement pay from DoD because it's not averaged over 36 months. It states clearly it's flat Base Pay at time of separation. But if it's Answer 2 (above), then his worksheet is inaccurate and his actual retired pay will be less then he was told.

This matter for me because my unit is trying to decided on doing MEB this year or next year (they have space for me to stay and work, without affecting mission, if I have a compelling argument, but not long term). Answer 1 means they let me go when every they want and nothing changes, Answer 2 would mean I should try and convince them to let me stay 1 more year for the better retirement pay.


So which is it? What's your experience, is there a section of Title 10 or Army Reg that governs this?

Following. I don't know the answer but those are good questions. I'm crossing over 20 but at (expected on appeal) 80% DoD. Would I draw my high 3 or 75% of my base pay? Like you, I can't seem to get a good answer. I would think since you passed your 20 you would get high 3 but with a medical retirement, that seems to muddy the waters for a lot of people's situations.
In response to your specific inquiries, the following soundly insightful feedback is provided...

As a direct monetary result from the official completion of the DoD IDES MEB/PEB process, a potential outcome could be either the receipt of disability severance pay or the receipt of disability retirement pay.

If a disability retirement pay outcome is determined from the official completion of the DoD IDES process, then disability retired pay is calculated on the basis of a military service member's actual DoD disability rating (e.g., 30% disability rating or higher) or military length of service rating (e.g., 2.5% times years of service), whichever is higher. Note that the DoD disability rating percentage is capped at 75%. The military length of service rating does not have the 75% cap anymore.

Moreover, the aforementioned applicable percentage is then multiplied by the military service member's retired base pay. Military service members who entered active duty after September 8, 1980, will have their retired base pay calculated as the average of their "high 36-months" of basic pay. For military service members who entered before September 8, 1980, a final basic pay method is used. Take care!

Thus, I quite often comment that "possessing well-informed knowledge is truly a powerful equalizer!"

Best Wishes!
 
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