MEB or Retire

CB1975

Registered Member
#1
I am trying to clarify the advantages of an MEB v Retire for service.

I am active with 25 years of service. The issue I have will rate 100% DoD (max 75%), so VA will also be 100%. I understand that there is an offset, so while I will get 75% ret with an MEB, the CRDP will be reduced to match a service retirement plus VA compensation. Based on injuries, CRSC would be less than CRDP. The reason for MEB is not combat related, but I have some issues that are combat related and will likely rate 70-80%. However, these issues probably will not be included as a reason for medical retirement, basically, service connected but I can still do my job with them.

I know a MEB with Combat Related issues will result in tax exempt retirement pay (in addition to VA compensation), will they take my issues into consideration for tax purposes if they aren't the reason for not being able to continue service?

Below are the main benefits of each option I see. In addition to my tax question, please help me lay out other pluses and minuses of one over the other. I am moving after I retire, and I have kids in school. So, picking the retirement date is a big advantage, but I don't want to miss out on and benefits from a medical retirement, and taxes could be huge.

Benefits for MEB:
-Tricare cost is fixed (will not adjust)
-VA determination done at same time (receive quicker)
-Possible tax benifit

Benefits for Years of Service Ret
-Choose retirement date
-Use as much terminal leave and permissive TDY as availalbe
 
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