"But having your MES reduced does not necessarily mean you are not deployable."
So in that case you don't lose money! Simple really. A good incentive to get fit I'd say.
And what if the medical condition is such that you cannot simply "get fit"?
At present it is the decision of the Medical Board if you are to stay in or be medically discharged. It is not the decision of the person who is downgraded. Therefore if the Med Board says you stay - then you stay (unless you PVR that is) and the rules are that you do not lose any pay.
As I have already said on here - I was medically downgraded for 7 years before being discharged at my 22 year point. I was allowed to go to main bases only (Basra and FI not included). That was the decision of the medics not me.
I have always argued that if a person is permanently downgraded then they should be discharged - end of story. But until the forces are willing to stump up for the medical pensions that will not happen and they will continue to carry those who cannot deploy/gate guard etc thus putting the extra burden onto those who can.