Military Medical Retirement

Joe Wallace

Unlike a standard retirement based on twenty years of service, military medical retirement is based on a disability that prevents a member from serving.

Military Medical Retirement

The Medical Evaluation Board reviews medical records to see if the member meets retention standards. If the member does not meet these standards, the case goes to the Physical Evaluation Board. If the board finds the member unfit, it assigns a disability percentage, which helps determine if the member is separated or retired.

Qualifying for Military Medical Retirement

To qualify for medical retirement, a disability rating of 30 percent or higher is required. Members with 20 years of service may also qualify, regardless of rating. If a member has fewer than 20 years of service and a rating below 30 percent, the military medically separates them.

Separation is NOT the same as retirement; it usually results in a single payment instead of a lifetime pension. There are two main categories for medical retirement. The Permanent Disability Retired List is for members with stable medical conditions. They receive a lifetime monthly pension and full retiree benefits.

The Temporary Disability Retired List is for those whose conditions are not yet stable. If you are on the temporary list, you receive retirement benefits but must have medical exams every eighteen months. You may stay on the temporary list for up to three years. After that time, the military must either return you to duty, move you to the permanent list, or separate you.

Calculating Disability Retirement Pay

• The first multiplies the retired pay base by the disability percentage. This amount cannot exceed 75 percent of the base pay. The second method multiplies the retired pay base by 2.5 percent for each year of service.
• For those in the Blended Retirement System, the multiplier is 2.0 percent. Members on the temporary list are guaranteed a minimum payment of 50 percent of their basic pay.
• Retired members often qualify to receive both military retirement pay and Department of Veterans Affairs disability compensation.
• Most retirees must waive a portion of their military pay to receive tax-free VA money. However, some programs allow members to keep more of their pay.

Medical retirees receive a retiree identification card with similar privileges as a standard twenty-year retirement. Benefits include lifetime TRICARE healthcare for the retiree and their family, participation in the Survivor Benefit Plan.