Written by Peter S. Gaytan

An investigative report by US News and World Report found that since 2000, “fewer veterans have received ratings of 30 percent or more since America went to war in Afghanistan and Iraq…As of 2006, for example, 87,000 disabled retirees were on the list of those exceeding the 30 percent threshold; in 2000, there were 102,000 recipients. Last year, only 1,077 of 19,902 servicemembers made it over the 30 percent threshold.” This is important because if an injured veteran’s disability rating is 20 percent or less, then the servicemember is sent home with a severance check; over 30 percent and he is eligible for full retirement pay, plus a host of other benefits.

Furthermore, there is a huge discrepancy among the military services. Although most of the wounded are from the Army and Marine Corps, those services have granted far fewer full disability benefits than the Air Force.

• Number of disabled Air Force Servicemembers rated 30 percent or more disabled: 26.3 percent
• Number of disabled Army servicemembers rated 30 percent or more disabled: 4.3 percent
• Number of disabled Marines rated 30 percent or more disabled: 2.7 percent.

Complicating the issue: The DOD rating is issued before discharge so many servicemembers anxious to get home are reluctant to fight their ratings, even if they are clearly unjust.

Again, it’s important to remember that the Department of Defense and the Department of Veterans Affairs are separate bureaucracies. The decisions by DOD do not impact the medical decisions of the VA. Theoretically, the DOD is supposed to use the Veterans Affairs Schedule for Rating Disabilities as the standard for assigning a rating, but some Pentagon directives have said the VA schedule is only a guide.

Veterans advocates argue that the law is clear: the DOD is required to use the VA Schedule. Furthermore, a Government Accountability Office (GAO) report (March 2006) revealed that each branch of service interprets the schedule differently. For example, while rating an amputee’s disability is fairly straightforward – the schedule automatically grants the injured servicemember an over 30 percent disabled rating, there is wide variation in ratings for mental disorders. Ratings for servicemembers suffering from Post-Traumatic Stress Disorder (PTSD) vary widely both within each branch of service and among them.

Let’s review how a servicemember who has been injured or become ill moves from DOD to VA care. There are several steps along the way, with an opportunity to appeal the DOD decision on fitness for duty and disability percentage.

• The Role of the Medical Evaluation Board. If a servicemember is still on active service when he becomes injured or ill, he is referred to a Medical Evaluation Board (MEB). The MEB determines whether a medical condition interferes significantly with the member’s ability to carry out the duties of his rank and rate. If the MEB determines that there is a significant interference, then the case is referred to an informal Physical Evaluation Board (PEB).
• Physical Evaluation Board Makes Critical Decision. The informal PEB will determine if the servicemember is fit or unfit for duty. If it is determined that a servicemember is unfit for duty then the informal PEB can recommend discharge with severance pay or a disability retirement. The informal PEB will also assign a disability percentage.
• To Appeal a PEB Decision. If a servicemember is dissatisfied with the determination that he is unfit for service or believes that the disability percentage assigned is not high enough, he may appeal to the formal PEB. The formal PEB will conduct a hearing where additional medical evidence and witnesses will be called to testify. The formal PEB will make a determination of fitness for duty and disability level based upon the hearing. It’s important to remember: Veteran Service Organization representatives are available free of cost to assist servicemembers in preparing their case for the PEB’s.

If the PEB decides that a servicemember has a disability that renders him unfit for duty, the next step is to determine the DOD disability rating. This is an evaluation of how much the disability is expected to impact his daily existence, ability to earn a living, and life expectancy. A disability rating can range from 0-100 percent. Depending on the severity of the disability rating, the servicemember can receive severance pay or disability pay.

• Severance Pay If the servicemember receives a rating of 0%, 10%, or 20% and has at least 6 months of active duty service, but less than 20 years of active duty service, that servicemember is entitled to severance pay. The amount of severance pay paid is not related to the percentage of disability. Severance pay is calculated as the sum of 2 months’ basic pay multiplied by the number of combined years of active service and inactive duty training (but not over 12 years).
• Disability Pay. A servicemember who receives a disability of 30% or more, or a servicemember who has 20 or more years of active duty service (regardless of his/her disability ranking), is either permanently or temporarily retired from service. If the servicemember has a 30% disability ranking or higher, he is entitled to whatever percentage of his base pay that his disability rating entitles him to receive.

Next week we’ll focus on the VA’s health benefits and its process for assigning disability ratings.

Peter S. Gaytan is the author of For Service to Your Country, The Insider’s Guide to Veterans’ Benefits (Citadel, 2008), available from Amazon, Barnes and Noble, and other booksellers. He has served as an advocate in securing and protecting the earned benefits of America’s veterans for more than a decade. Gaytan is the Executive Director of the American Legion, the largest veterans service organization in America.

*Material released with permission of the authors.