skip to the bottom for BLUF. The following generally only applies to someone with less than 20 years TIS and is accurate to the best of my knowledge.
DoD only rates you for a disabling condition(s) (ie missing leg 30%***). This rating does not change and is generally lower than your VA rating.
VA rates you on EVERYTHING, disabling or not. (missing leg, missing testicle, history of asthma, knee pain (other leg) shoulder pain, 140%***) and can change as conditions get worse or improve.
percentages from each affect who/how provides you benefits later (VA or DOD) and can possibly affect retirement. (30-50% DOD can get you active duty hospital privileges/benefits and possibly retirement but you need over 50% to get max VA benefits,
DoD used to require two separate boards, an MEB and a PEB. MEB determined if you had a disqualifying condition(s), PEB decided which you were going to be given credit for (combat, hazardous duty, prep for war etc), DoD rating of <30% is a medical SEPARATION and was a one time, ( base pay x 2 x years in service ) pay out. Over 30% is medical RETIREMENT and gets complicated, (usually 2.5 times years in service is the percentage you get of last three years average base pay for life) but is still only for the DISQUALIFYING condition (there are many other ways to combine/calculate etc, this one is easiest and often pays the most).
VA uses their own physical and a disability rating http://www.benefits.va.gov/warms/bookc.asp
VA ratings to determine a percentage with worst condition ranked first. If you have a 140% rating it may look like this. (shamelessly stolen from BDBGoalie21)
You are 100% at the start.
40% of 100% = 40%; 40% rating, 60% left
30% of 60% = 18%, 58% rating, 42% left
30% of 42% = 12.6%, 70.6% rating, 29.4% left
30% of 29.4% = 8.82%, 79.42% rating, 20.58% left
10% of 20.58% = 2.06%, 81.48% rating, 18.52% left
So if you are 30 % DoD and 80% VA and those amounts come out to $500 DoD and $300 VA (again, made up numbers for simple math), your DoD check gets reduced by the amount of your VA check. So instead of combining and making $700, you still get $500 but this is good because DoD retirement is taxable but VA disability is not. you still get $500, but now only 200 is taxable.
So if DoD medical retirement is only based on disqualifying condition and VA is everything, how is the DoD amount higher than VA amount? Retirement at 45% of base pay is often higher than your VA disability. DoD includes TIS and VA does not.
If you are still reading, what does this have to do with the thread title: the new process is supposed to combine the whole thing into one board instead of having to go through the MEB, PEB and then VA physical. Initial results are good with people coming back with slightly higher percentages in 45-60 days instead of 90-120 days
Hope this helps
ENG
*** percent made up
ETA, fix hotlink