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The purpose of this research was to evaluate the 60 year old military medical retirement system. Specifically, this thesis answered three research questions regarding a comparison of pay between the current system and the societal standard for injury and illness, identification of current segments of the military population disproportionately affected by the current system, and establishment of a minimal standard for medical retirement compenstation. Previous research established the societal standard for compenstation as the Value of Statistical Life. This thesis compared the current military medical retirement system with the Value of Statistical Life and identified seceral segments of the military medical retiree population that were adversely affected by the current system. Further, this thesis propsed a new method for calculating medical retirement pay incorporating the societal standard for injury and illness.