Medical retirement refers to U.S. military personnel who retire from the service due to a medical condition that makes them unfit for duty, according to Nolo. Medical retirement pay is based on a person's years of service and military disability rating.
The amount of medical retirement benefits may be more than VA disability benefits depending on the disability rating, years served and the opting out of VA disability compensation. Some service members may also be eligible for medical retirement along with Concurrent Retirement and Disability Pay or Combat Related Special Compensation, which could be higher than disability pay, explains Nolo. CRDP takes into account years of service and service-connected medical conditions. CRSC is for injuries sustained in a combat zone while performing military duties.
A military doctor ascertains whether a soldier may have a medical condition that interferes with normal duties. The doctor refers the case to a Physical Evaluation Board, according to John Wiley & Sons. The PEB, a board of physicians not directly involved in a person's care, then recommends medical retirement or return to active duty. A central medical board determines if a person can medically retire based on four factors: disability rating, military duties, stability of the medical condition and years of active service with regards to any pre-existing conditions. Disability ratings go from zero to 100 in increments of 10 based on standards set forth by the Department of Veterans Affairs.