HELP: How to calculate disability retirement pay?

2023Sailor

PEB Forum Regular Member
Registered Member

I just received findings of PDRL 30% @ 5 years 8 months.​



I am having troubles trying to calculate the disability retirement or at least know what my options (if I actually have any) are and if this thought process is correct.

Here is what I found:

1. DFAS LINK


DISABILITY RETIREMENT

Retired Pay Base​
x Service Percent Multiplier
= Gross Retired Pay​

The multiplier for disability retired pay is either:

- 2.5 percent for each year of service, or​
- disability percentage assigned by the service at the time you retire

The multiplier is limited to 75 percent by law using the disability percentage. The multiplier for years of service is no longer capped at 75%, unless your retirement date is prior to 1/1/2007. 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. But if you’d like to choose the other method, please send DFAS your request in writing.


2. Military Compensation Website LINK


The basic retirement formula is:​


Retired Pay Base X Multiplier %

The retired pay base for a qualified disability retirement is determined under either the final pay method or the high-36 month method depending upon when they first entered military service. See Retirement tab for details.

The multiplier percentage is at the option of the member who may chose either the percentage of disability assigned or the years of creditable service times 2½%. In either case, the multiplier is limited to 75% by law.

Conclusion​

By these two methods, here are the calculations:


2.5 x 5 (full years) x 3365.70 = $420.71​
30% disability rating x 3365.70 = $1009.71​

Obviously a big difference, here are my questions: As stated in #2 a member may choose either the percentage of disability assigned or the years of creditable service times 2.5%. How/where/when does a member make that decision to chose between the disability percentage method and years x 2.5 method? Where does a member find their retired base pay method selected at begining of service?

Thanks in advance!
 

I just received findings of PDRL 30% @ 5 years 8 months.​



I am having troubles trying to calculate the disability retirement or at least know what my options (if I actually have any) are and if this thought process is correct.

Here is what I found:

1. DFAS LINK


DISABILITY RETIREMENT

Retired Pay Base​
x Service Percent Multiplier
= Gross Retired Pay​

The multiplier for disability retired pay is either:

- 2.5 percent for each year of service, or​
- disability percentage assigned by the service at the time you retire

The multiplier is limited to 75 percent by law using the disability percentage. The multiplier for years of service is no longer capped at 75%, unless your retirement date is prior to 1/1/2007. 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. But if you’d like to choose the other method, please send DFAS your request in writing.


2. Military Compensation Website LINK


The basic retirement formula is:​


Retired Pay Base X Multiplier %

The retired pay base for a qualified disability retirement is determined under either the final pay method or the high-36 month method depending upon when they first entered military service. See Retirement tab for details.

The multiplier percentage is at the option of the member who may chose either the percentage of disability assigned or the years of creditable service times 2½%. In either case, the multiplier is limited to 75% by law.

Conclusion​

By these two methods, here are the calculations:


2.5 x 5 (full years) x 3365.70 = $420.71​
30% disability rating x 3365.70 = $1009.71​

Obviously a big difference, here are my questions: As stated in #2 a member may choose either the percentage of disability assigned or the years of creditable service times 2.5%. How/where/when does a member make that decision to chose between the disability percentage method and years x 2.5 method? Where does a member find their retired base pay method selected at begining of service?

Thanks in advance!
what is your VA ratings going to be? Your retirement will be offset by any VA compensation received. So if the VA is going to pay you $2,000 a month that amount is much higher than chapter 61 retirement meaning you will get tricare for being medically retired but will not receive any pay for it. Insteal all of your compensation will be from the VA.
 
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