Whether someone is medically retired or medically separated does not depend on how close they are to 20 years of service. It depends on the outcome of the Disability Evaluation System (DES) process, which runs through a Medical Evaluation Board (MEB) and, if referred, a Physical Evaluation Board (PEB). The PEB determines two things: whether the condition makes the service member unfit for continued duty, and what percentage rating the condition warrants under the military disability rating schedule (which mirrors but is not identical to the VA's schedule).
Under 10 U.S.C. 1201 and 1203, if the PEB finds a service member unfit and assigns a disability rating of 30% or higher, and certain other criteria are met (including having a stable, permanent condition), the service member is placed on the Permanent Disability Retired List (PDRL), which is a true military retirement with retired pay, TRICARE, and other retiree benefits — regardless of total years of service. If the rating is below 30% and the member has fewer than 20 years of service, the standard outcome is separation with disability severance pay, a one-time lump sum, rather than a monthly retirement annuity. If the condition is not yet stable, the member may instead go on the Temporary Disability Retired List (TDRL) for up to five years for re-evaluation.
Official 2026 VA monthly compensation, including the 2.8% COLA increase.
Dependent add-ons start at a 30% rating. Child-only and dependent-parent rates: see the full 2026 pay chart.
| Rating | Monthly (2026, incl. 2.8% COLA) |
|---|---|
| 10% | $180.42 |
| 20% | $356.66 |
| 30% | $552.47 |
| 40% | $795.84 |
| 50% | $1,132.90 |
| 60% | $1,435.02 |
| 70% | $1,808.45 |
| 80% | $2,102.15 |
| 90% | $2,362.30 |
| 100% | $3,938.58 |
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Analyze my claim free →Years of service alone do not create an entitlement to retire; the PEB's fitness and rating determination controls. A command's desire to retain someone does not override a PEB unfit finding, though commands can sometimes request narrative changes or additional documentation before the board.
Separately, the VA disability rating obtained through the Integrated Disability Evaluation System (IDES) is independent of the military's PEB rating and continues regardless of how the DoD portion resolves. A low or no military retirement does not limit VA compensation, and conditions not covered by the PEB can still be claimed with the VA afterward.
Anyone in this situation should contact their assigned PEBLO (Physical Evaluation Board Liaison Officer) to confirm where they are in the process, request a copy of the MEB narrative summary, and ensure every diagnosed condition — not just the one triggering referral — is documented and submitted through the IDES VA claim before the PEB finalizes its findings.
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