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Key Findings

• A fitness-for-duty evaluation system (FES) reduces reliance on Department of Defense (DoD) disability ratings for determining DoD disability compensation and relies primarily on a single decision about whether a service member is fit to perform their duties.
• With one exception, none of the FES alternatives evaluated guarantees that all service members would see benefits at least as large as the benefits they qualify for under the current system.
• Eliminating or delaying the rating step would reduce processing times under a FES by an average of 29 days relative to the current sequential process.
• The estimated time savings associated with implementing an alternative system imply that active-duty end strength for the Army enlisted force would fall by at most 0.2 percent relative to the current system.
• Any alternative system should be evaluated not only on the basis of direct costs and benefits but also on whether it is consistent with the broader objective of disability compensation.