How does the PEB decide who receives disability retirement and who receives disability severance pay? How are these pays computed?
The severity of the condition determines whether a Soldier, who is eligible for disability benefits, receives disability retirement or is separated with severance pay. Soldiers rated with a 0, 10 or 20 % disability who have less than 20 years of active service or 7200 points of combined service, will be separated with severance pay. To compute disability severance pay, multiply the Soldier’s basic pay for two months by the number of combined years (but not over 12) of active service and inactive duty points. NOTE: There is no difference between a 0%, 10%, or 20% rating in the calculation of the amount of severance pay that is received. The rating is NOT a factor in determining severance pay. Soldiers with 20 or more years of active military service or 7200 points of combined service, or possessing a disability rated at 30 % or more, receive disability retirement. Disability retirement is either temporary or permanent depending on the stability of the Soldier’s medical condition. Tempor
