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DISABILITYVA program

DoD Disability Retirement (Chapter 61)

Servicemembers separated for medical reasons with a DoD disability rating of 30%+ may receive military disability retirement pay. VA compensation is offset or combined under CRDP/CRSC rules.

Available to servicemembers with 30%+ DoD disability rating or 20+ years service

Step-by-step guide

  1. A referral from a military doctorA military doctor refers the member to a Medical Evaluation Board, which can send the case to a Physical Evaluation Board. Only the service branch can start IDES.
  2. A fitness decision by the boardThe Physical Evaluation Board decides whether the member stays in service, is medically retired, or is separated, with or without benefits.
  3. VA's ratingVA rates the conditions from the IDES exams and gives a proposed rating before you leave service. The branch uses VA's decision for military benefits, and VA uses it for VA compensation.

Source: M21-1 X.i.6.E (opens in new tab); M21-1 X.i.6.I (opens in new tab); VA.gov: Veteran Readiness and Employment through IDES (opens in new tab)

Documents for this benefit: what each is, what it shows VA, and how VA gets it
DocumentWhat it showsHow VA gets itHave it?
Separation Health Assessment, Part A A VA self-assessment form about your health that is part of every IDES referral.Your own report of your conditionsYou complete it, and your Physical Evaluation Board Liaison Officer sends it to VA with the referral. VA does not request exams until it has the completed form. BeneVets does not collect it.
Physical Evaluation Board report The board's findings on your fitness for duty and the disabilities that made you unfit. It can also note whether a disability was combat-related.Which conditions the military found unfittingYour branch issues it, and it is usually in your service treatment records. VA uses it to see which disabilities a severance payment covered, and can request it if it is not in your records.Yes
VA's rating decision The proposed rating VA gives during IDES, and the final rating decision VA sends after you separate.Your VA ratings, which the military also usesVA sends it. During IDES, VA shares exam reports and rating information with your service branch.Yes
Retirement orders and DD214 Your retirement or separation orders and your DD214.How you retired, and your years of serviceYour branch issues them. VA checks your DD214, your VA claim, and its own records to see whether you receive retired pay.Yes
Retired pay questions on VA Form 21-526EZ The part of the VA claim form that asks whether you get or will get military retired pay, your retired status, and any separation or disability severance pay.The military pay VA has to account forYou answer it on the form. Filing counts as a waiver of retired pay equal to the VA compensation awarded, unless you mark item 26, which turns down VA compensation.
Election or waiver form VA Form 21-651, to elect VA compensation instead of retired pay, or to waive retired pay to receive compensation.Your choice between retired pay and VA compensationVA sends it when it needs your signature on an election or waiver. A signed statement to VA or to the agency that pays your retired pay also works.

Military records go to your service branch and VA through IDES. BeneVets does not ask for copies of them.

  1. Meet VA's coordinator

    In IDES, a VA Military Services Coordinator meets with you, explains VA benefits, and helps you file your VA claim. VA considers the conditions your branch referred; any other conditions from service are yours to list on the claim. You also meet a VA vocational rehabilitation counselor when your case goes to the Physical Evaluation Board.

    Source: M21-1 X.i.6.E (opens in new tab); VA.gov: Veteran Readiness and Employment through IDES (opens in new tab)

  2. Get free help with your VA claim

    Free help: an accredited VSO can file this with you. Find one near you in the BeneVets VSO directory at Find an accredited VSO near you. In IDES, the coordinator explains that VSOs are available and gives you VA Form 21-22 if you want one to represent you.

    Source: VA.gov: accredited representatives (opens in new tab); M21-1 X.i.6.E (opens in new tab)

  3. Go to the IDES exams

    One set of exams serves both VA and your branch. Your Physical Evaluation Board Liaison Officer gives you the date and time, and any change goes through that officer.

    Source: M21-1 X.i.6.E (opens in new tab)

  4. Read the board result and VA rating

    If the Physical Evaluation Board finds you unfit, VA prepares a proposed rating that the board uses for military benefits. You can appeal the board's finding within the military. The board can also ask VA to reconsider its proposed rating before you separate. If you separate as unfit, VA sends its final rating decision.

    Source: M21-1 X.i.6.E (opens in new tab); M21-1 X.i.6.I (opens in new tab)

  5. Answer the retired pay questions on the claim

    VA Form 21-526EZ asks about military retired pay, your retired status, and any separation or disability severance pay. Filing counts as a waiver of retired pay equal to the VA compensation awarded. The form notes that VA compensation is not taxable.

    Source: VA Form 21-526EZ (opens in new tab); 38 CFR 3.750(c)(3) (opens in new tab)

  6. Check CRDP and CRSC

    With 20 or more years of service and a combined VA rating of 50 percent or more, CRDP restores the part of retired pay based on years of service, and it needs no application. CRSC needs an application to your branch on DD Form 2860. If both apply, you choose one during the open season.

    Source: 38 CFR 3.750(b)(2) (opens in new tab); M21-1 VI.ii.4.A (opens in new tab); VA: Federal Benefits for Veterans, Dependents, Survivors, and Caregivers (2026) (opens in new tab)

This is a military benefit

Disability retirement and disability severance pay come from your service branch, not VA. The military boards decide fitness and military benefits, and VA decides VA compensation. CRDP and CRSC are paid by the military too.

Source: M21-1 X.i.6.E (opens in new tab); M21-1 VI.ii.4.A (opens in new tab)

Severance pay and VA compensation

If you got disability severance pay instead of retirement, VA withholds the compensation for that same disability until it has recouped the severance pay. For severance paid after September 30, 1996, VA recoups the amount less the federal income tax withheld. VA does not recoup it for a disability incurred in a combat zone or in combat-related operations if you separated on or after January 28, 2008, or in some cases were removed from the temporary disability retired list on or after that date; the military makes that call.

Source: 38 CFR 3.700(a)(3) (opens in new tab); M21-1 VI.ii.2 (opens in new tab); VA Form 21-526EZ (opens in new tab)

CRDP or CRSC

CRSC is a separate monthly payment for disabilities your service branch finds combat-related. It is not taxed, and you apply to your branch on DD Form 2860. A retiree who can get both CRDP and CRSC receives one and chooses during the open season; DFAS sends election information each December.

Source: M21-1 VI.ii.4.A (opens in new tab)

You can change your election

You can elect again between retired pay and VA compensation at any time, with a signed statement to VA or to the agency that pays your retired pay.

Source: 38 CFR 3.750(d)(1) (opens in new tab)

BeneVets is informational and is not an accredited representative. Free help: an accredited VSO can work through VA benefits with you at no cost. Find an accredited VSO near you

Sources checked October 1, 2026: 38 CFR 3.700(a)(3) (opens in new tab), 38 CFR 3.750(b)(1) (opens in new tab), 38 CFR 3.750(b)(2) (opens in new tab), 38 CFR 3.750(b)(3) (opens in new tab), 38 CFR 3.750(c)(1) (opens in new tab), 38 CFR 3.750(c)(3) (opens in new tab), 38 CFR 3.750(d)(1) (opens in new tab), M21-1 VI.ii.2 (opens in new tab), M21-1 VI.ii.4.A (opens in new tab), M21-1 X.i.6.E (opens in new tab), M21-1 X.i.6.I (opens in new tab), VA.gov: Veteran Readiness and Employment through IDES (opens in new tab), VA.gov: accredited representatives (opens in new tab), VA public Disability Benefits Questionnaires (opens in new tab), VA Form 21-526EZ (opens in new tab), VA Form 21-651 (opens in new tab), VA: Federal Benefits for Veterans, Dependents, Survivors, and Caregivers (2026) (opens in new tab)