DoD Disability vs VA Disability: What’s the Difference?

Service members and veterans often face challenges when navigating disability benefits. Both the Department of Defense (DoD) and the Department of Veterans Affairs (VA) provide benefits for those who have incurred injuries or illnesses related to their military service, but these programs are fundamentally different. Understanding the distinction between DoD Disability and VA Disability is essential for military personnel and veterans to ensure they receive the appropriate benefits.

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In this article, we will explore the key differences between these two types of disability benefits, from eligibility and compensation to how ratings are assigned, and how service members and veterans can maximize their entitlements.

“While both DoD and VA disability benefits aim to support service members and veterans, each system is designed with different goals in mind. The DoD focuses on whether an individual is fit to serve, while the VA focuses on the long-term impact of service-connected disabilities in civilian life,” explains John Miller, a Veterans Affairs Consultant.

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DoD Disability vs VA Disability: Comparison

What	DoD Disability	VA Disability
Purpose	Compensates for disabilities that render a service member unfit for military duty.	Compensates for disabilities that are service-connected, regardless of impact on military service.
Eligibility	Active duty, reservists, or retirees deemed unfit for duty due to a service-related disability.	Veterans with service-connected disabilities who meet basic eligibility criteria.
Disability Rating	Ranges from 0% to 100%, with increments of 10%. Must be 30% or higher for retirement benefits. Below 30% results in separation severance.	Ranges from 0% to 100%, with increments of 10%. Compensation begins at 10%. Additional compensation for dependents if rated 30% or higher.
Compensation	Based on military pay, disability percentage, and years of service.	Based on disability percentage and number of dependents, not tied to military salary.
Separation Pay	One-time severance pay for disability ratings below 30%.	VA disability compensation pay begins and no separation pay.
Retirement Benefits	Eligible for retirement pay if disability rating is 30% or higher.	No retirement benefits.
Medical Benefits	Access to military treatment facilities.	Access to VA healthcare facilities; care depends on disability rating and needs.
Taxation	PDR and TDR benefits are taxable.	VA disability compensation is non-taxable.
Concurrent Receipt	Typically, full military retirement pay and disability pay are not received simultaneously without CRDP or CRSC.	VA disability compensation can be received in addition to military retirement pay if rated 50% or higher.
Reevaluation	PDR is not subject to reevaluation. TDR is subject to reevaluation.	VA disability ratings can be reevaluated unless deemed permanent or static.
Appeal Process	Appeals through the military for DoD disability rating reevaluation.	Appeals through VA with Higher Level Reviews, Supplemental Claims, and Board Appeals.

What is the Difference Between DoD and VA Disability?

Purpose of the Benefits

DoD Disability:
The primary purpose of DoD disability is to determine whether a service member is fit for continued military service. The DoD Disability Evaluation System (DES) focuses on whether an illness or injury renders the service member unable to perform military duties. If deemed unfit, the service member can be medically separated or retired, receiving benefits like retirement pay or separation severance.

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VA Disability:
In contrast, the VA disability system compensates veterans for service-connected disabilities that were incurred or aggravated during military service, regardless of whether the injury or illness affects their ability to serve. The VA disability compensation is intended to offset the economic loss of civilian wages or working time due to the service-connected condition.

“DoD disability evaluates military fitness, while VA disability compensates veterans for long-term economic impacts caused by service-related disabilities,” says Lieutenant Colonel Robert Jenkins, a military disability claims advisor.

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Assigning a Particular Rating

DoD Disability:
DoD disability ratings are based on whether the condition directly impacts a service member’s ability to perform military duties. The rating reflects how much the condition affects fitness for service, with a rating from 0% to 100% in 10% increments.

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VA Disability:
The VA disability rating also ranges from 0% to 100%, but it takes a broader approach. VA disability considers how the condition affects the veteran’s overall health and ability to function in civilian life, such as employment and daily tasks. The VA disability system also accounts for secondary conditions and other related impairments.

“While DoD focuses on fitness for military service, the VA’s focus is on the veteran’s life post-service. This often results in higher disability ratings for veterans than for service members in the DoD system,” notes Lisa Wright, a VA claims specialist.

Calculating Disability Pay

DoD Disability:
For service members with less than a 30% disability rating, they are medically separated with a lump-sum severance payment. If the disability rating is 30% or higher, they are medically retired and receive monthly disability retirement pay based on their rank, years of service, and the disability percentage.

VA Disability:
VA disability compensation is based solely on the disability rating. Veterans can receive compensation as low as 10% for minor impairments, but higher ratings yield larger monthly payments. The VA compensates veterans for their disability rating and may provide additional compensation for dependents if the rating is 30% or higher.

“DoD disability pays out based on military salary and rank, while VA compensation is based on the severity of the disability and the veteran’s civilian earning potential,” explains David Harris, a financial planner specializing in military compensation.

Taxation and Concurrent Receipt

DoD Disability:
Disability payments from the DoD are taxable, which means retirees who receive both disability pay and retirement pay must pay taxes on those benefits unless they qualify for Concurrent Retirement and Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC).

VA Disability:
VA disability compensation is non-taxable. Veterans can receive their disability compensation in addition to military retirement pay if they qualify for CRDP or CRSC, typically for veterans with a 50% or higher disability rating.

“It’s important to know the tax implications of DoD disability pay. Veterans should explore CRDP or CRSC if they’re eligible for both retirement and disability pay,” advises Brian Taylor, a tax consultant for veterans.

Reevaluation Process

DoD Disability:
For service members who are medically retired under PDR (Permanent Disability Retirement), their disability is generally not subject to reevaluation. However, TDR (Temporary Disability Retirement) is subject to reevaluation, and the service member’s condition may be upgraded or reduced based on further medical assessments.

VA Disability:
VA disability ratings can be reevaluated periodically, unless the conditions are deemed permanent. Veterans with stable conditions may not need future evaluations, but others may undergo Routine Future Examinations (RFE), which can impact their disability percentage and compensation.

“While DoD’s Permanent Disability Retirement is usually final, VA disability can evolve over time as the veteran’s condition progresses or stabilizes,” says Stephanie Johnson, a veteran health consultant.

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