E-5 vs O-3 disability pay

G

Gizzy

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PEB Forum Veteran
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When someone is medically retired, is the pay the same no matter what your rank at time MEB is complete and rated? Thanks
 
No, I believe you are thinking of VA compensation.

DISABILITY RETIREMENT
The multiplier for disability retired pay is either:
  • 2.5 percent (2% for blended retirement plan) for each year of active duty or AD equivalent service, or
  • disability percentage assigned by the service at the time you retire
The multiplier is used in conjunction with the average high three base pay which is the total of the highest 36 months divided by 36.

Either way, the multiplier is limited to 75 percent by law. If you are on the Temporary Disability Retired List, the minimum multiplier is 50 percent while on the TDRL.


DFAS uses the method that results in the largest payment.

Ron
 
RonG said:
No, I believe you are thinking of VA compensation.

DISABILITY RETIREMENT
The multiplier for disability retired pay is either:
  • 2.5 percent (2% for blended retirement plan) for each year of active duty or AD equivalent service, or
  • disability percentage assigned by the service at the time you retire
The multiplier is used in conjunction with the average high three base pay which is the total of the highest 36 months divided by 36.

Either way, the multiplier is limited to 75 percent by law. If you are on the Temporary Disability Retired List, the minimum multiplier is 50 percent while on the TDRL.


DFAS uses the method that results in the largest payment.

Ron
Click to expand...
I am an O-3 with ten years, once the DoD rating comes out and VA rating, don't I have to choose which pay ill take whichever is higher?
 
Based on your LOS, you highest three years of pay will be averaged. Then multiples by you disability percentage.
 
Gizzy said:
I am an O-3 with ten years, once the DoD rating comes out and VA rating, don't I have to choose which pay ill take whichever is higher?
Click to expand...

@Gizzy, Are you asking whether you choose between VA comp and retired pay?

If you are, the answer is NO.

You get the opportunity to choose whether you agree to waive your retired pay dollar for dollar in the amount of VA compensation in order to receive VA comp.

I have never seen one case where it was more advantageous for a retiree to decline VA compensation. If there is retired pay remaining after the waiver/reduction/offset, you get to keep it..."it" being residual retired pay. Also, you remain eligible for CRSC which might give you all or some of the waived retired pay back.
A Supplement to CRSC Information--Also See Update at Bottom of the Page <Link

Ron

cc: @swearengen @chaplaincharlie
 
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