What Is Chapter 61 Retirement and Who Qualifies?

Chapter 61 retirement provides a pathway for military service members who become medically unable to continue their duties. This form of retirement applies to individuals deemed unfit for military service due to a physical disability. Its primary purpose is to offer long-term support to those whose careers are cut short by health conditions sustained during their service.

This retirement category is defined under Title 10, Chapter 61. It ensures that service members facing such circumstances receive appropriate benefits rather than being simply separated from service without long-term support. Understanding the nuances of this retirement option is important for eligible individuals.

Qualifying for Chapter 61 Retirement

To qualify for Chapter 61 retirement, a service member must first be found unfit for continued military service due to a physical disability. This determination is made after a thorough medical evaluation process. The disability must be considered stable for placement on the Permanent Disability Retired List (PDRL). Conversely, if the condition is not stable, the service member might be placed on the Temporary Disability Retired List (TDRL).

The disability must have originated while the service member was on active duty or in a qualifying reserve status. This includes conditions incurred in the line of duty, or if not directly in the line of duty, the service member must have at least 20 years of active service. The disability must not be the result of intentional misconduct or willful neglect, nor incurred during a period of unauthorized absence.

A significant criterion for Chapter 61 retirement is the assigned disability percentage. A service member must have a disability rated by the military Service as 30% or greater. If the disability rating is less than 30%, the service member is typically separated with a one-time severance payment rather than being retired. However, service members with 20 or more years of service may still qualify for retirement, regardless of their disability percentage, if found unfit for duty. This distinction ensures that those with substantial service time are not penalized by a lower disability rating.

Determining Disability and Retirement Pay

The Department of Defense (DoD) assigns a disability rating for retirement purposes, which is distinct from ratings provided by the Department of Veterans Affairs (VA). The DoD rating specifically assesses how a medical condition affects a service member’s ability to perform military duties. While the VA considers all service-connected conditions, the DoD only focuses on those that render the service member unfit for duty.

The DoD uses the Veteran’s Affairs Schedule for Rating Disabilities (VASRD) as a guide in assigning these ratings, though their application differs from the VA’s. The disability percentage directly impacts the retirement decision and pay calculation. A rating of 30% or higher is generally required for medical retirement, leading to placement on the Permanent Disability Retired List (PDRL) or Temporary Disability Retired List (TDRL).

Chapter 61 retirement pay is calculated using one of two methods, with the service member receiving the higher of the two amounts. The first method involves multiplying the service member’s basic pay by their DoD disability percentage. The second method uses 2.5% multiplied by the service member’s years of creditable service, then multiplied by their basic pay.

The “retired pay base” used in these calculations is typically the average of the highest 36 months of basic pay for those who entered service after September 7, 1980. The maximum multiplier for either calculation method is 75%. For service members on the TDRL, the minimum disability percentage used for pay calculation is 50%.

Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC) relate to Chapter 61 pay. CRDP allows eligible retirees to receive both their full military retired pay and VA disability compensation, effectively eliminating the VA waiver that would otherwise reduce retired pay. CRSC provides tax-free monthly payments to eligible retired veterans with combat-related injuries, designed to replace some or all of the retired pay offset by VA compensation. Service members cannot receive both CRDP and CRSC simultaneously.

Associated Benefits

Beyond the direct retirement pay, Chapter 61 retirement provides access to a range of benefits that support service members and their families.

Continued healthcare coverage through TRICARE. This includes options such as TRICARE Prime, TRICARE Select, and TRICARE for Life, ensuring comprehensive medical care for retirees and their eligible dependents.
Access to military commissaries and exchanges. These facilities offer groceries and retail goods at reduced prices, providing a cost-saving advantage for retired personnel and their families.
Eligibility for Space-Available (Space-A) travel. This allows retirees to potentially fly on military aircraft at little to no cost when space is available.
Option to enroll in the Survivor Benefit Plan (SBP). This provides a continuous income to eligible beneficiaries, such as spouses or dependent children, after the retiree’s death. The SBP premium is deducted from the gross retired pay.
Access to military Morale, Welfare, and Recreation (MWR) facilities and programs. These facilities include gyms, recreation centers, and various recreational activities.
A military identification card. This serves as official proof of their retired status and grants them access to military installations and services.

The Medical Evaluation Process

The process for determining Chapter 61 retirement eligibility typically begins when a service member’s medical condition prevents them from performing military duties. A military physician usually initiates this process by referring the service member to a Medical Evaluation Board (MEB). The MEB’s role is to thoroughly document the service member’s medical conditions and assess whether they meet medical retention standards for continued service.

The MEB review involves evaluating medical records, commander’s statements, and personal accounts to understand the severity of the condition and its impact on military duties. If the MEB determines that the service member’s condition does not meet retention standards, the case is then referred to the Physical Evaluation Board (PEB). The MEB is considered an informal board, as it does not make the final decision regarding separation or retirement.

The PEB is the formal body that reviews the MEB’s findings and officially determines whether the service member is physically unfit for continued military service. The PEB’s decision dictates the service member’s ultimate disposition: return to duty, separation without benefits, or placement on the Temporary Disability Retired List (TDRL) or Permanent Disability Retired List (PDRL).

Throughout this evaluation, service members have specific rights, including the right to legal counsel and the ability to appeal findings. If placed on the TDRL, the service member’s condition is periodically re-evaluated, typically every 18 months, for up to three or five years, depending on when they were placed on the list. This temporary status allows for monitoring of conditions that may improve or worsen. If the condition stabilizes and remains unfitting, the service member may be moved to the PDRL, finalizing their Chapter 61 retirement.