How Is a Military Retirement Pay Table Different From a Disability Compensation Table?


Quick Answer

Military retirement pay tables are based on the number of years of service in the military and the service member's salary. Disability compensation tables are based on the service member's disability percentage and number of dependents. The disability compensation tables are updated each year.

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Full Answer

For any service member who entered the military after September 8, 1980, the retirement pay is based on the highest 36 months of pay received during his or her career. This is usually the 36 months prior to retirement. The total pay earned during these months is divided by 36 to determine the base retirement pay.

This number is multiplied by the retirement multiplier to determine the service members retirement pay. The multiplier is equal to 2.5 percent for each year of service. Retirement pay is adjusted each year to account for increases in the cost of living.

The disability compensation tables do not take into account the service members working salary or time served. When a service member suffers an injury during service and does not fully recover, he may qualify for disability compensation. A medical professional will provide a disability rating based on the service members condition and ability work. Ratings range from 10 to 100 percent.

Veterans may then look at the disability compensation chart that is updated annually to determine their compensation. For example, as of 2014, a veteran who is 100 percent disabled receives $2,906.83 per month. Additional compensation is offered if the veteran has dependents.

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