They are two separate ratings with two different purposes. The DoD rating will be based only on the unfitting condition. That percentage (If 30%+) is multiplied by your high three To determine your DoD disability retirement pay. Your VA rating will determine your VA disability compensation based on the VA compensation tables. Now, by law, your VA compensation will offset your DoD retirement. If your DoD is $2,000 and your VA $1,000, you will get $1,000 dollars from DoD and $1,000 from the VA for a total of $2,000. If your DoD is $1,000 and your VA is $2,000, you will get $2,000, all from the VA. You always get your total VA amount plus any amount your DoD retirement amount exceeds your VA amount.
The VA offset of your DoD retirement can be partially of completely restored if you are eligible for CRSC. The offset can also be restored by CRDP which a disability retiree cannot collect unless they have 20 years of service.
Mike