Medical Retirement Calculator

Chapter 61 medical retirement pay is the higher of two formulas: (1) Length-of-service formula = Years of Service × multiplier × high-3 base pay, where the multiplier is 2.5% per year (High-3) or 2.0% per year (BRS); (2) Disability-percentage formula = DoD disability rating × high-3 base pay. Either result is capped at 75% of high-3 base pay. For most under-20 medical retirees, the disability-percentage formula wins. Per 10 U.S.C. § 1401.

Yes. Your VA disability compensation is paid in full and never reduced by the offset. The VA-DoD offset (called the "VA waiver") reduces your DoD retired pay, not your VA disability. The smaller of (your DoD retired pay) or (your VA disability) is waived from your DoD retired pay, which converts that dollar amount from taxable retired pay into tax-free VA compensation. CRDP or CRSC can then restore the offset under specific conditions.

Yes. Both CRDP (10 U.S.C. § 1414) and CRSC (10 U.S.C. § 1413a) explicitly cover Chapter 61 medical retirees regardless of years of service. The 20-year requirement applies to length-of-service retirees, not medical retirees. CRDP requires a VA combined rating of 50% or higher. CRSC requires combat-related disabilities and is available at any VA rating. You can elect one (not both) annually during the open season.

Yes — this is the most-missed gotcha in CRSC analysis for under-20 medical retirees. Under 10 U.S.C. § 1413a(b)(3), CRSC payment for Chapter 61 medical retirees cannot exceed YOS × 2.5% × high-3 base pay (the equivalent length-of-service retired pay the member would have received). Example: an 8-year medical retiree with a $5,000 high-3 has a CRSC cap of 8 × 2.5% × $5,000 = $1,000/month, even if their VA combat-related compensation would otherwise be $1,400/month. The CRDP route may net more in these cases. The calculator above flags this scenario when applicable.

Medical retirement applies when DoD disability rating is 30% or higher (any YOS) or 20+ YOS with any rating. It pays monthly retired pay for life with full retiree benefits (TRICARE, commissary, etc.). Medical separation with severance applies when DoD rating is below 30% AND under 20 YOS. It pays a one-time lump sum: 2 × monthly base pay × YOS (minimum 3 years credited; minimum 6 if combat-related; maximum 19 years). Severance is subject to VA recoupment — the VA withholds disability compensation until the severance amount is recovered. Combat-related severance is generally not subject to recoupment.

PDRL (Permanent Disability Retired List) is permanent medical retirement when the disabling condition is stable and unlikely to improve. TDRL (Temporary Disability Retired List) applies when the rating is 30%+ but the condition is not yet stable. TDRL has a minimum 50% retired pay floor — if the computed retired pay would be lower, you receive 50% of base pay instead. Maximum time on TDRL is 3 years (for members placed after January 1, 2017; was 5 years prior). Re-evaluation outcomes: return to duty, transfer to PDRL, or separation with severance. Same retiree benefits as PDRL during TDRL period.

If you receive medical separation with severance and later receive VA disability compensation for the same condition, the VA withholds your monthly compensation until the gross pre-tax severance amount is recovered. Example: if your severance was $48,000 and your monthly VA compensation is $1,400, the VA withholds your full monthly compensation for approximately 35 months (48,000 ÷ 1,400) before payments begin. Combat-related severance is generally not subject to recoupment. Plan accordingly — many veterans expect VA payments to start immediately after separation and are surprised when they don't.

It depends on your situation. CRDP restores the entire VA waiver as taxable retired pay (requires 50%+ VA rating). CRSC pays a tax-free amount equal to the lesser of (a) VA compensation for combat-related disabilities or (b) the YOS-based cap. CRSC tends to win when most of your disabilities are combat-related and you're in a higher tax bracket. CRDP tends to win when only a portion of disabilities are combat-related, when you have low YOS that triggers the CRSC cap, or when you're in a low tax bracket. The calculator above shows side-by-side net monthly under each path. You can change election annually during the open season — it's not permanent.

If you took BRS Continuation Pay and signed an additional service agreement (typically 4 years), you may forfeit a pro-rated portion of the bonus if you medically retire before completing the agreed service. Each branch handles forfeiture differently. This affects junior service members who took the bonus and then went through unexpected MEB/PEB. Talk to your finance office to determine recoupment terms.

Medical retirees retain full access to: Post-9/11 GI Bill (and Yellow Ribbon), VA Home Loan, TRICARE Prime/Select (medical retiree, not veteran), TSP balance (continues to grow, no further DoD match), commissary and exchange privileges, and VA disability compensation if rated. Severance recipients retain access to most benefits but are not retirees — they shop with their VA card and use VA healthcare rather than TRICARE.

If you set Disposition to "Auto-detect": DoD rating < 30% AND under 20 YOS triggers severance pay. DoD rating ≥ 30% (any YOS) or 20+ YOS (any rating) triggers medical retirement. PDRL is the default; choose TDRL explicitly if your condition is not yet stable to apply the 50% retired pay floor.

Computes both formulas (length-of-service and disability-percentage), takes the higher, applies the 75%-of-base-pay cap. For TDRL, applies the 50% floor if the computed amount is lower. The cap rarely binds in practice because medical retirees usually fall below 75% on the disability-percentage side.

2 × monthly base pay × credited YOS. Credited YOS is at least 3 (or 6 if combat-related), at most 19. Recoupment timeline = severance ÷ monthly VA compensation = months until VA payments begin. Combat-related severance is shown but flagged as not subject to recoupment.

Offset = min(DoD retired pay, VA monthly compensation). DoD pay after offset = DoD retired pay - offset. The veteran's total cash flow is unchanged in absolute dollars (VA replaces the offset amount tax-free). The benefit of CRDP/CRSC is restoration of taxable income, increasing total gross pay, with tax treatment depending on which restoration path.

CRDP requires VA combined rating ≥ 50%. If eligible, restores the full offset amount to DoD retired pay. The restored amount is taxable. Total monthly gross = DoD retired pay (full, restored) + VA disability (tax-free). Net = (full DoD retired pay × (1 - tax bracket)) + VA disability.

CRSC available at any VA rating with combat-related disabilities. CRSC payment = min(VA compensation rate at combat-related percentage, YOS × 2.5% × high-3 base pay). The YOS cap is the most-missed gotcha. CRSC is tax-free. Total monthly gross = (DoD retired pay - VA offset) + VA disability + CRSC. Net = ((DoD retired pay - offset) × (1 - tax bracket)) + VA disability + CRSC.

The "recommended" tag goes to whichever scenario produces the highest net monthly take-home given your inputs. For tied or near-tied scenarios, CRSC is preferred for tax efficiency over CRDP. The recommendation is computational, not advice — you should always verify with a financial counselor and your VSO before making election decisions.

SBP premiums (subtract roughly 6.5% of retired pay if you elect SBP). State income tax (varies; many states exempt military retired pay). Annual COLA adjustments (computes today's dollar values, not lifetime present value). Section 1413a(g) "second-tier CRSC" for veterans whose CRSC plus retired pay exceeds a higher cap. Branch-specific quirks in disability rating panels. The Combat-Related Special Compensation Board's discretion in determining combat-relatedness for individual disabilities.