PHYSICAL EVALUATION BOARD (PEB)

1. PHYSICAL EVALUATION BOARD (PEB) Texas Veterans Commission FALL CONFERENCE 2008

2. Overview • Mission of the PEB • Provide full and fair hearing to determine service member’s physical fitness for continued military service, • Determine level and type of compensation, and • Take action to separate or retire service member when his/her military career is interrupted by reason of physical disability.

3. Overview (Cont.) • Objectives of the PEB • Maintain effective and fit military organization with maximum use of available manpower. • Provide benefits for eligible service members whose military service is terminated because of a service-connected disability. • Provide prompt disability processing while ensuring that the rights and interests of the Government and the Service Member are protected.

4. Overview (Cont.) • Board Compositions • Differs among the Services • If service member is Reserve Component (RC), one of the Line Officers must be of the Reserve Component

5. Overview (Cont.) • Numbers of Boards • USN/USMC: One combined Informal/Formal Board, located at Washington Navy Yard, DC • USAF: One Informal Board, located at Randolph AFB, TX; One Formal Board located at Lackland, AFB, TX • USA: Three combined Informal/Formal Boards at three locations: Walter Reed Campus, DC; Fort Sam Houston, TX and Fort Lewis, WA

6. References • 10 USC, Chapter 61 (Retirement or Separation for Physical Disability) • DoD Directive 1332.18 (Separation or Retirement for Physical Disability) • DoD Instruction (DODI) 1332.38 (Physical Disability Evaluation) • DoDI 1332.39 (Application of the VA Rating Schedule; currently undergoing revision due to National Defense Authorization Act (NDAA) 2008) • DVA Schedule for Rating Disabilities (VASRD) • Service Regulations/Instructions

7. Eligibility for Referral Into the PEB System • Incurred or aggravated while on AD • Standards of medical fitness AD/RC: Any condition that appears to significantly interfere with performance of duties appropriate to a service member’s office, grade, rank or rating (DoDI 1332.38) • PEB is appropriate vice Administrative Separation. • Not due to service member’s misconduct or willful neglect. • Medical Evaluation Board (MEB) is conducted to determine if condition meets retention standards/unfitting and if not, forwarding to the PEB is warranted.

8. PEB is Performance-Based System (Cont.) • Must look at duties of service member’s military occupation and • How his/her condition impacts the service member’s ability to perform these duties and • Consider that the duties are commensurate with the service member’s office, grade, rank or rating and • After all of the above, the board must base its findings on the preponderance (superiority) of the evidence.

9. PEB is Performance-Based System • Informal PEB: medical records reviewed by three board members resulting in a finding of FIT or UNFIT. • If UNFIT, service member may demand a formal PEB. • If FIT, service member may be granted a formal PEB. Decision rests with President, Formal PEB. • Formal PEB: Actual formal hearing with board members and service member present/not present and with counsel.

10. Compensability Criteria • Incurred while entitled to basic pay • Relates to the duty status of the service member when the medical impairment originated—not when the impairment became “unfitting.” • And “just because” a service member has been diagnosed with a medical condition does not mean that condition is unfitting.

11. Compensability Criteria (Cont.) • Aggravation of Medical Condition • Refers to worsening of a pre-existing medical impairment due to military service. • Natural progression • Natural course of a medical condition. • Term usually refers to a medical impairment incurred in a civilian status that was not aggravated by military service.

12. Compensability Criteria (Cont.) • Existed Prior to Service (EPTS) • Refers to a medical impairment that originated in a civilian status. • For RC, it includes an impairment that originated between duty periods or aggravation that occurred between duty periods which caused the impairment to progress to unfitness. • Note: Medical impairments originating during previous enlistments are not EPTS conditions.

13. Compensability Criteria (Cont.) • EPTS Cont. • Eight-Year Rule • To overcome EPTS: EPTS condition aggravated by military service beyond natural progression

14. PEB Dispositions • FIT • Presumed FIT • UNFIT with Severance Pay, meaning disability rating is: • 0%, or • 10 %, or • 20% All of the above equate to the same amount of Severance Pay (2 months basic pay X Years of Service (YOS) not to exceed 19 years; if injured in a combat zone or combat operations, min. 6 years applied; if not combat zone/operations min. 3 years if YOS less than 3—NDAA 08 refers).

15. Dispositions Cont. • UNFIT 30% or Greater • Temporary Disability Retired List (TDRL) – disability not stable, may be permanent • On TDRL for maximum of five years. • Service member is re-evaluated every 18 months maximum. • Must get re-evaluated as directed or risk losing TDRL status and compensation. • During, or at end of 5-year period, service member is either found UNFIT--Permanent Disability Retirement (PDR), UNFIT w/ Severance Pay, or FIT--return to duty (return is optional for AD).

16. Dispositions Cont. • UNFIT 30% or Greater • Permanent Disability Retirement (PDR) • Disability is permanent and stable. • Disability rating will not change once determined PDR Note: Retirement pay while on TDRL will be a minimum 50% of basic pay. Retirement pay on PDR is based on % of basic pay, the percentage determined by using either that based on length of service (LOS) or the disability rating, whichever is greater. • UNFIT – Misconduct (no $$$) • UNFIT – Noncompliant (no $$$) • EPTS – No $$$

17. Appeals • Informal Board Findings • Service member can demand/request a Formal PEB. • Formal PEB can overturn Informal PEB findings • Usually based on new/additional medical evidence and/or • Commander’s/Chain of Command statements

18. Appeals Cont. • Formal PEB Findings • Appeal to respective Service entity (e.g., for Army – Physical Disability Agency), Not in any specific order: • Respective Service’s Board of Correction of Military Records • Service Secretary • Congress/President • U.S. Court of Federal Claims • U.S. District Courts

19. Combat/Combat-Related Injuries • Determined by the Informal/Formal PEB. • Different definitions apply regarding the member’s situation: • Injured in a combat zone or combat operations: Apply to Severance Pay and the YOS used to compute. • Combat-related injuries: Applies to federal income tax exemptions

20. Summary • PEB is a performance-based system. • PEB utilized when a medical condition significantly impacts a service member’s ability to perform his/her military occupational duties. • Disability must be incurred or aggravated while on AD, not due to misconduct or willful neglect. • The Informal/Formal PEB determines fitness for continued military duty and subsequent disability rating, if appropriate. • The disability rating determines either Severance Pay or Retirement Disability pension. • Service members can appeal his/her PEB findings.