Each of the military services is responsible for assuring the fitness of its service members and separating or retiring those who are unable to continue military service. Eligible service members whose military service is cut short due to a service-related disability incurred in the line of duty receive benefits. Federal law as well as Department of Defense (DoD) and service regulations require a thorough review of each service member’s case to determine the level of disability and entitlement to disability retirement. Military services conduct this review process based on the steps of each services’ Disability Evaluation System.

Photo by Airman Maebel Tinoko

Navigating the Disability Evaluation System

According to DoD regulations, the Disability Evaluation System should include a medical evaluation board (MEB), a physical evaluation board (PEB), an appellate review process and a final disposition. The services should assign each member a PEB liaison officer to help navigate the system.

The MEB is an informal process initiated by the medical treatment facility. The MEB includes at least two active duty physicians who compile, assess and evaluate the medical history of a service member and decide whether the individual should return to duty. If the MEB determines that the member has a medical condition that is incompatible with continued military service, they refer the case to a PEB.

The PEB is a formal fitness-for-duty and disability determination that may recommend one of the following:

• Return the member to duty.
• Place the member on the temporary disabled/retired list (TDRL).
• Separate the member from active duty.
• Medically retire the member.

Balancing the significance of the member’s condition against the requirements and duties that the service member is expected to perform determines the PEB outcome.

Training on the Disability Evaluation System

There is training available to service members, “Introduction to the Integrated DES for Service Members." Service members are encouraged to review this with their family members. This presentation takes about 20 minutes to complete.  It provides an overview of the process, explains why service members are referred for disability evaluation, and describes what to expect at each stage in the process.  Completing this training provides service members and their families the information they need to exercise their rights and responsibilities during the process. 

The Introduction to Integrated DES presentation describes the:

• Phases and timelines of the IDES
• Roles and responsibilities of IDES stakeholders
• Common DES terms
• Possible outcomes and actions Service members can take if they disagree with a decision
• Service members’ rights, such as the right to legal representation
• Service members’ responsibilities, such as keeping DES related appointments

Access the training: Introduction to the Integrated DES for service members.

There is also training on the IDES for medical providers, PEBLOs, and other stakeholders, available on MHS Learn.

Benefits and Compensation

The PEB typically will determine the percentage of the service member’s disability compensation using DoD directives and instructions and service-specific policy in conjunction with the Department of Veterans Affairs Schedule for Rating Disabilities. Additional considerations include the nature of the disability, whether it is service-related or pre-existing/congenital and whether the disability appears to be permanent or temporary. When the PEB finds that a member’s disability existed prior to entry in the armed forces, it will recommend that the military discharge the member without benefits. The percentage of disability that the PEB applies determines whether the service will separate or retire a member. The table below displays the percentage required for retirement, taking into account years of active service.  

* Ratings below 30% for members with less than 20 years of active service will result in a separation.

Temporary Disability Retired List and Re-Evaluation

If a PEB finds a member unfit to perform duties because of a temporary disability, a military service may place him or her on the TDRL. The military services determine retired pay by using two methods. The first is based on the disability percentage (minimum of 50 percent while on the TDRL). The second is based on the years of active service. The method that provides the greatest entitlement computes pay.

TDRL caseloads grew by 43 percent from fiscal year 2003 to fiscal year 2007.¹  The DoD is working hard to ensure the process remains efficient.

Service members on TDRL will receive a medical re-evaluation at least once every 18 months. The PEB receives the re-evaluation findings for a new disability determination. The new PEB may recommend one of the following:

• Find the member fit and give him or her the opportunity to return to military service if desired.
• Separate the member with severance pay if the rating has decreased to less than 30 percent.
• Transfer the member to the Permanent Disability Retired List (PDRL) if rated at 30 percent or higher.
• Retain the member on the TDRL and re-evaluate again within 18 months.

Placement on the TDRL cannot be longer than five years. At the end of those five years, service members will be removed and given a final rating. 

Permanent Disability Retired List (PDRL)

A service member will be placed on the PDRL if a PEB finds one of the following:

• He or she is unfit due to a permanent disability and has a rating of 30 percent or greater.
• His or her rating is less than 30 percent, but he or she has 20 or more years of service.

PDRL is a permanent status. The services compute retired pay under the same two methods in the TDRL section above with the exception of the 50 percent minimum. A member of the TDRL whose disability is now considered permanent will be transferred to the PDRL.

Retirement Status

A member of the TDRL or the PDRL is a retired member of the armed forces. He or she remains entitled to all rights and privileges of the retired status. The member is entitled to participate in the Survivor Benefit Plan and have voluntary/involuntary allotments from retired pay. The member may apply for disability compensation from the Department of Veterans Affairs. If he or she meets the requirements for a non-disability retirement, the member may also qualify for Combat-Related Special Compensation or Concurrent Retirement and Disability Pay.

Service-Specific Information

Air Force

Some airmen whom the PEB has found physically unfit can serve on active duty in Limited Assignment Status (LAS) with limitations and controls over their assignments. This option is open to members on extended active duty who meet the eligibility criteria and apply for LAS. Members who have some type of non-disability retirement or separation pending are not eligible for LAS. Retention in LAS depends on the type and extent of the member’s physical defect or condition, the amount of medical management and support needed to sustain the member on active duty, the physical and assignment limitations required, the years of service completed and the Air Force need for particular grade and specialty. For more information, refer to Air Force Form 36-3212, “Physical Evaluation for Retention, Retirement, and Separation” [PDF 956KB].

Army

All soldiers whom a PEB or MEB finds unfit for duty are eligible to apply for Continuation on Active Duty/Continuation on Active Reserve regardless of the extent of their injuries. The U.S. Army Wounded Warrior Program (AW2) Advocates assists soldiers who are interested in pursuing Continuation on Active Duty or Continuation on Active Reserve. The program notifies the Human Resource Command as soon as the soldier expresses interest in remaining on active duty and assists throughout the entire application process. To date, most AW2 soldiers who requested to continue to serve the nation have been able to do so.² Leaders at all levels in military and civilian organizations recognize that veterans have vast knowledge, skills and expertise that they can use to enhance their training curriculum and workplace experience.

Marine Corps

A Marine may be placed on Permanent Limited Duty (PLD) — a specified continuation on active duty in a limited duty status — if the PEB determines the Marine is unfit as a result of a disability. The PEB requests and authorizes PLD based on the best interests of the Marine Corps and the Marine. Refer to the Marine Corps Separation and Retirement Manual (MCO P1900.16F) [PDF 1.54MB] for more information.

Navy

The Navy may retain on active duty in a PLD status members who a PEB finds unfit to continue naval service, if the PEB determines that a need for the service member’s skill or experience justifies the continuance of that service member on active duty or in an active status in a limited assignment. Authority to grant PLD is limited solely to service headquarters. For more information, refer to the Department of the Navy Disability Evaluation Manual [PDF 5.75MB].

Additional Resources

• Deployment Health Clinical Center, Disability Evaluation System
• DoD Compensation and Benefits Handbook for Seriously Ill and Injured Members of the Armed Forces [PDF 5.46MB]
• DoD Instruction (DoDI) 1332.38, Physical Disability Evaluation, November 1996, Incorporating Change 1, July 2006 [PDF 200KB]
• Veteran’s Benefits Explained
• Appeal to Board of Veterans’ Appeals [PDF 592KB]
• Veterans On-line Application (VONAPP)
• Frequently Asked Questions on the COAD/COAR Process [PDF 36KB]
• Defense Finance and Accounting Services, Retired Pay Information

Sources

¹GAO Report, Military Disability Retirement, Closer Monitoring Would Improve the Temporary Retirement Process. Draft April 2009.
²"U.S. Army Wounded Warrior Program (AW2) COAD/COAR," [PDF 304KB], U.S. Army Warrior Transition Command. Last accessed April 11, 2012.
³Walton, Breanna. “Integrated Disability Evaluation System Helps Separating Soldiers,” U.S. Army. Published March 17, 2011.
⁴Capt. Kevin Hammond. “Integrated DoD/VA Disability Evaluation System Improves Support for Wounded Warriors,” Peterson Air Force Base. Published January 11, 2011.