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Disability Severance Pay

All branches of service have the authority to separate a soldier on the Temporary Disability Retirement List (TDRL). Separation may occur with entitlement to disability severance pay or without.

You must meet all of the following requirements to be eligible:
  • be found unfit for duty,
  • have less than 20 years of service,
  • and have a disability rating of less than 30%. 
Prior to January 28, 2008 members were required to have at least 6 months of service to qualify for discharge with severance pay. This rule no longer applies.

If you were discharged with severance pay, you cannot go back on active duty or choose to apply for retirement later.  However, you may be eligible to apply for monthly disability compensation from the Department of Veterans Affairs (VA) if the VA determines your disability is service-connected.

Calculation and Payment

Disability severance pay is a one-time lump sum payment. The amount of the payment equals 2 months basic pay for each year of service not to exceed 19 years. Additionally, a minimum number of six years will be used for calculation purposes.  Prior to January 28, 2008, a maximum of 12 years and minimum of three years creditable service was used.

Related Links

Is Your Pay Taxable or Not?
St. Clair Decision Letter
Types of Retirement Page updated September 27, 2012