Expert: MARK A. HOWELL - 7/18/2009

Question
I have over 20 years and 2 years left to fulfill my service requirement before retirement. Unfortunately I have been diagnosed with a lung disease that mandates I meet a medical board. I am still very active but can only pass the PT test with the 3 mile walk versus the 1.5 mile run. Added with my push-ups, sit-ups and waist, I score between 95-100 each year. The MEB briefer told me that one of the choices the medical board could come up with is to medically retire me with a 30% rating. I have researched the military and VA sites and spoke with medical and personnel members and no one can tell me the difference in taking the 30% versus regular. Do you know of any additional benefits the 30% would provide?

Answer
Donna,
Sorry to hear you have the lung problem, but at least you found out about it now.

Always go with a medical retirement.  It's worth much more to you in the long run.  Let me show you why:

REGULAR RETIREMENT
Let's say you have already completed 20 years and are retiring today as an E-7.  Your current pay is $3839.00 per month.  You'll receive 50% of your monthly pay or $1919.50 (before taxes) per month.  After taxes you'll receive $1782.46 minus whatever state taxes you may have.

MEDICAL RETIREMENT
You will still receive $1919.50 from the DoD but 30% of it will be tax free.  So after taxes you'll receive $1885.93.  That equals approx. $103.47 additional money in your pocket.

Because you are being medically retired, you're eligible for VA compensation.  The VA is completely independent of the DoD so they'll review your medical records and make their own determination of your % disability rating.  It could be more than 30% or it could be less.  Either way you're bound to get some kind of VA rating.  This means they will pay you an ADDITIONAL monthly check.  For example if they also believe you are 30% disabled they will pay you $376 per month (tax free).  (More if you have a spouse and/or children.)

ADDITIONALLY, you may be eligible for Social Security disability.  I have no idea how much that may be because it depends upon your past earnings.  I know one person with 30% disability who receives $650.00 (after taxes) per month.

So in my example, our recent medical retiree is drawing $2261.93 (after taxes) so far, and we don't even know how much Social Security he may receive.  That's nearly $480.00 per month more that you can spend, for the rest of her life.

Now, let's look at the non-financial side of retirement.  As a regular retiree you can no longer call the medical clinic on a nearby base and make an appointment to see a doctor.  You're now a retiree (a 3rd-class citizen) so you're seen on a stand-by basis.  You show up in the primary care clinic and you may sit all day and never be seen unless an active duty patient cancels.  Same with the dentist, except the most a dentist will do for a retiree is offer a cleaning.  So ensure you are buying dental insurance now!

As a medical retiree you can go to the nearest VA clinic or VA hospital.  The process is just like when you were active-duty.  They are now in charge of all your medical and dental care at no cost to you.  Appointments are quick and easy.

Whatever you do, ensure this lung problem is well documented in your medical records.  Your medical problems may possibly worsen over time and you want to leave no doubt that it's a service-related disability.

I'd advise you to find the local chapter of the Disabled American Veterans (DAV) and ask to speak to a Service Officer.  You can find the nearest chapter by going online to http://www.va.gov and click on "locations".  Tell the Service Officer about your impending retirement and ask for his opinion.

I wholeheartedly thank you for serving your country all these years.
Colonel H