I 

110TH CONGRESS 

2D SESSION H. R. 5509 

To amend titles 10 and 38, United States Code, to improve and enhance 

procedures for the retirement of members of the Armed Forces for 

disability and to improve and enhance authorities for the rating and 

compensation of service-connected disabilities in veterans, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2008 

Mr. BUYER introduced the following bill; which was referred to the Committee 

on Veterans’ Affairs, and in addition to the Committees on Armed Services and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend titles 10 and 38, United States Code, to improve 

and enhance procedures for the retirement of members 

of the Armed Forces for disability and to improve and 

enhance authorities for the rating and compensation of 

service-connected disabilities in veterans, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Noble Warrior Act’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—RETIREMENT OF MEMBERS OF THE ARMED FORCES 

FOR DISABILITY 

Sec. 101. Retirement for disability of members of the Armed Forces after implementation of enhanced Department of Veterans Affairs disability compensation system. 

Sec. 102. Continuation of respite care and aid and other extended care benefits 

for members of the uniformed services who incur a serious injury or illness on active duty. 

TITLE II—COMPENSATION OF VETERANS FOR SERVICECONNECTED DISABILITY 

Sec. 201. Study on veterans disability compensation. 

Sec. 202. Study on veterans transition benefits. 

Sec. 203. Study on measures to assist and encourage veterans in the completion of their vocational rehabilitation plans. 

Sec. 204. Proposal on veterans disability compensation and veterans transition 

benefits. 

Sec. 205. Congressional consideration of proposal. 

Sec. 206. Effective date of implementation of enhanced Department of Veterans Affairs disability compensation system. 

Sec. 207. Enhanced Department of Veterans Affairs disability compensation 

system. 

Sec. 208. Supplemental survivor benefit for survivors of veterans retired for disability after implementation of enhanced Department of Veterans Affairs disability compensation system. 


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1 TITLE I—RETIREMENT OF MEM2 BERS OF THE ARMED FORCES 

3 FOR DISABILITY 

4 SEC. 101. RETIREMENT FOR DISABILITY OF MEMBERS OF 

5 THE ARMED FORCES AFTER IMPLEMENTA6 TION OF ENHANCED DEPARTMENT OF VET7 ERANS AFFAIRS DISABILITY COMPENSATION 

8 SYSTEM. 

9 (a) IN GENERAL.—Chapter 61 of title 10, United 

10 States Code, is amended— 

11 (1) by inserting before section 1201 the fol12 lowing: 


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1 ‘‘SUBCHAPTER I—RETIREMENT OR SEPARA2 TION BEFORE IMPLEMENTATION OF EN3 HANCED DEPARTMENT OF VETERANS AF4 FAIRS DISABILITY COMPENSATION SYSTEM 

5 ‘‘§ 1200. Applicability of subchapter: members retired 

6 or separated before implementation of 

7 enhanced Department of Veterans Affairs 

8 disability compensation system; certain 

9 members on temporary disability retired 

10 list as of implementation of enhanced De11 partment of Veterans Affairs disability 

12 compensation system 

13 ‘‘(a) IN GENERAL.—Except as provided in subsection 

14 (b), this subchapter applies to the retirement or separation 

15 for disability of members as follows: 

16 ‘‘(1) Members who are eligible for retirement 

17 for disability or separation for disability before the 

18 effective date of the implementation of the enhanced 

19 Department of Veterans Affairs disability compensa20 tion system under chapter 12 of title 38 (as deter21 mined in accordance with section 206 of the Noble 

22 Warrior Act). 

23 ‘‘(2) Members on the temporary disability re24 tired list as of the effective date of the implementaVerDate Aug 31 2005 02:42 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 tion of the enhanced Department of Veterans Affairs 

2 disability compensation system who— 

3 ‘‘(A) are eligible for retirement under the 

4 provisions of subchapter II in accordance with 

5 section 1206c of this title; but 

6 ‘‘(B) do not elect to retire under the provi7 sions of subchapter II as otherwise provided in 

8 section 1206c of this title. 

9 ‘‘(b) INAPPLICABILITY TO CERTAIN MEMBERS.—For 

10 provisions relating to the applicability of subchapter II to 

11 the retirement for disability of certain members otherwise 

12 covered by this subchapter under subsection (a)(1), see 

13 section 1206b of this title.’’; 

14 (2) by transferring section 1206a to appear 

15 after section 1207a and redesignating such section, 

16 as so transferred, as section 1207b; and 

17 (3) by inserting after section 1206 the fol18 lowing: 


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1 ‘‘SUBCHAPTER II—RETIREMENT AFTER IMPLE2 MENTATION OF ENHANCED DEPARTMENT 

3 OF VETERANS AFFAIRS DISABILITY COM4 PENSATION SYSTEM 

5 ‘‘§ 1206a. Applicability of subchapter: members re6 tired on or after implementation of en7 hanced Department of Veterans Affairs 

8 disability compensation system 

9 ‘‘(a) IN GENERAL.—This subchapter applies to the 

10 retirement of members for disability (including the place11 ment of members on the temporary disability retired list 

12 in accordance with section 1206e of this title) on or after 

13 the effective date of the implementation of the enhanced 

14 Department of Veterans Affairs disability compensation 

15 system (as determined in accordance with section 206 of 

16 the Noble Warrior Act). 

17 ‘‘(b) EXCLUSIVE APPLICATION.—Members eligible 

18 for retirement under this subchapter by reason of this sec19 tion are not eligible for retirement or separation under 

20 subchapter I. 


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1 ‘‘§ 1206b. Applicability of subchapter: certain mem2 bers retired on or after October 7, 2001, 

3 but before implementation of enhanced 

4 Department of Veterans Affairs disability 

5 compensation system 

6 ‘‘(a) ELECTION OF APPLICABILITY.—(1) During 

7 such period as the Secretary of Defense shall prescribe 

8 for purposes of this section, a former member described 

9 in subsection (b) may elect to retire under this subchapter 

10 in lieu of retirement under the provisions of this chapter 

11 as in effect on the day before the effective date of the 

12 implementation of the enhanced Department of Veterans 

13 Affairs disability compensation system (as determined in 

14 accordance with section 206 of the Noble Warrior Act). 

15 ‘‘(2) Each election under this subsection shall be exe16 cuted in such form and manner as the Secretary of De17 fense shall prescribe for purposes of this section. 

18 ‘‘(3) Any election made under this subsection is irrev19 ocable. 

20 ‘‘(b) COVERED FORMER MEMBERS.—A former mem21 ber described in this subsection is any former member 

22 who, during the period beginning on October 7, 2001, and 

23 ending on the day before the effective date of the imple24 mentation of the enhanced Department of Veterans Af25 fairs disability compensation system, is retired under the 

26 provisions of this chapter as in effect before the effective 


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1 date of the implementation of the enhanced Department 

2 of Veterans Affairs disability compensation system. 

3 ‘‘(c) TREATMENT OF FORMER MEMBERS MAKING

4 ELECTIONS.—(1) Effective as of the date of the correction 

5 of the military records of such former member under sub6 section (d), each former member who makes an election 

7 under subsection (a) shall be deemed to have been retired 

8 under this subchapter, with retired pay computed under 

9 section 1401 of this title (as in effect after the effective 

10 date of the implementation of the enhanced Department 

11 of Veterans Affairs disability compensation system), rath12 er than to have been retired under the provisions of this 

13 chapter as in effect before the effective date of the imple14 mentation of the enhanced Department of Veterans Af15 fairs disability compensation system. 

16 ‘‘(2) No benefits are available to a former member 

17 under this subchapter for any period before the correction 

18 of the military records of the former member under sub19 section (d). 

20 ‘‘(3) The Secretary of Defense may not recoup or col21 lect from any former member who is retired under this 

22 subchapter pursuant to an election under subsection (a) 

23 any amount of retired pay paid to the former member 

24 under this chapter before the date of the effective date 


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1 of the correction of the military records of the former 

2 member under subsection (d). 

3 ‘‘(d) CORRECTION OF MILITARY RECORDS.—The 

4 Secretary concerned shall correct the military records of 

5 each former member making an election under subsection 

6 (a) to reflect that the former member is retired under the 

7 provisions of this subchapter rather than retired under the 

8 provisions of this chapter as in effect before the effective 

9 date of the implementation of the enhanced Department 

10 of Veterans Affairs disability compensation system. 

11 ‘‘§ 1206c. Applicability of subchapter: members on 

12 temporary disability retired list as of im13 plementation of enhanced Department of 

14 Veterans Affairs disability compensation 

15 system 

16 ‘‘(a) ELECTION OF APPLICABILITY.—(1) A member 

17 described in subsection (b) may elect to retire under this 

18 subchapter in lieu of retirement under the provisions of 

19 subchapter I. 

20 ‘‘(2) Each election under this subsection shall be exe21 cuted in such form and manner as the Secretary of De22 fense shall prescribe for purposes of this section. 

23 ‘‘(3) Any election made under this subsection is irrev24 ocable. 


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1 ‘‘(b) COVERED MEMBERS.—A member described in 

2 this subsection is any member— 

3 ‘‘(1) whose name is on the temporary disability 

4 retired list as of the effective date of the implemen5 tation of the enhanced Department of Veterans Af6 fairs disability compensation system (as determined 

7 in accordance with section 206 of the Noble Warrior 

8 Act); and 

9 ‘‘(2)(A) whose disability qualifying the member 

10 for placement on the temporary disability retired list 

11 is determined after such effective date by the Sec12 retary concerned, based on accepted medical prin13 ciples, to be of a permanent nature and stable; or 

14 ‘‘(B) whose disability is considered after such 

15 effective date by the Secretary concerned to be of a 

16 permanent nature and stable after five years of the 

17 placement of the member’s name on the temporary 

18 disability retired list in accordance with section 

19 1210(b) of this title. 

20 ‘‘(c) TIMING OF ELECTION.—A member eligible to 

21 make an election under subsection (a) by reason of a de22 termination under subparagraph (A) or (B) of subsection 

23 (b)(2) shall make such election, if at all, during such pe24 riod after the date of the determination as the Secretary 

25 of Defense shall prescribe for purposes of this section. 


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1 ‘‘(d) TREATMENT OF MEMBERS MAKING ELEC2 TIONS.—(1) Effective as of the date of such election, each 

3 member who makes an election under subsection (a) shall 

4 be retired under this subchapter, with retired pay com5 puted under section 1401 of this title (as in effect after 

6 the effective date of the implementation of the enhanced 

7 Department of Veterans Affairs disability compensation 

8 system). 

9 ‘‘(2) No benefits are available to a member under this 

10 subchapter for any period before the election of the mem11 ber under subsection (a). 

12 ‘‘(3) The Secretary of Defense may not recoup or col13 lect from any member who is retired under this subchapter 

14 pursuant to an election under subsection (a) any amount 

15 of retired pay paid to the member under this chapter be16 fore the date of the election of the member under sub17 section (a). 

18 ‘‘§ 1206d. Retirement 

19 ‘‘(a) IN GENERAL.—Upon a determination by the 

20 Secretary concerned that a member covered by this sub21 chapter under section 1206a of this title is unfit to per22 form the duties of the member’s office, grade, rank, or 

23 rating because of physical disability, the Secretary may, 

24 consistent with regulations prescribed by the Secretary of 

25 Defense for purposes of this subchapter, retire the memVerDate Aug 31 2005 02:42 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 ber, with retired pay computed under section 1401 of this 

2 title (as in effect after the effective date of the implemen3 tation of the enhanced Department of Veterans Affairs 

4 disability compensation system), if the Secretary con5 cerned also makes the determinations specified in sub6 section (b) with respect to the member. 

7 ‘‘(b) DETERMINATIONS.—The determinations speci8 fied in this subsection with respect to a member are deter9 minations by the Secretary concerned as follows: 

10 ‘‘(1) That the disability of the member, based 

11 upon accepted medical principles— 

12 ‘‘(A) is of a permanent nature; or 

13 ‘‘(B) is of uncertain permanency, such that 

14 a temporary disability retirement under section 

15 1206e of this title is appropriate. 

16 ‘‘(2) That the injury, illness, or disease ren17 dering the member unfit was incurred or aggravated 

18 in the line of duty— 

19 ‘‘(A) while the member was entitled to 

20 basic pay under section 204 of title 37 or com21 pensation under section 206 of that title; 

22 ‘‘(B) while performing active duty but not 

23 entitled to basic pay under section 204 of title 

24 37 or inactive-duty training; or 


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1 ‘‘(C) while engaged in an activity covered 

2 by section 1201(c)(3), 1204(2)(B), or 

3 1204(2)(C) of this title. 

4 ‘‘(3) That the injury, illness, or disease was 

5 not— 

6 ‘‘(A) the result of the member’s intentional 

7 misconduct or willful neglect; or 

8 ‘‘(B) incurred during a period of unauthor9 ized absence. 

10 ‘‘§ 1206e. Temporary disability retired list 

11 ‘‘(a) IN GENERAL.—Subject to the provisions of this 

12 section, a member covered by section 1206d(b) of this title 

13 who is described by paragraph (1)(B) of such section shall 

14 have such member’s name placed on the temporary dis15 ability retired list, with retired pay computed under sec16 tion 1401 of this title (as in effect after the effective date 

17 of the implementation of the enhanced Department of Vet18 erans Affairs disability compensation system (as deter19 mined in accordance with section 206 of the Noble War20 rior Act)). 

21 ‘‘(b) ADMINISTRATION.—(1) Subsection (a) shall be 

22 administered in accordance with such regulations as the 

23 Secretary of Defense shall prescribe for purposes of this 

24 section. 


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1 ‘‘(2)(A) Except as provided in subparagraph (B), the 

2 regulations prescribed under this subsection shall provide 

3 for the applicability of the provisions of sections 1210 and 

4 1211 of this title to a member whose name is placed on 

5 the temporary disability retired list under this section. 

6 ‘‘(B) The provisions of subsections (c), (d), and (e) 

7 of section 1210 of this title shall not apply to a member 

8 whose name is placed on the temporary disability retired 

9 list under this section. 

10 ‘‘(3)(A) The regulations shall provide for appropriate 

11 mechanisms, applicable uniformly across the military de12 partments, for an annual review by the military depart13 ments of determinations to place members’ names on the 

14 temporary disability retired list under this section in order 

15 to ensure the accuracy and consistency of such determina16 tions by the military departments. 

17 ‘‘(B) The Secretary of Defense shall submit to the 

18 Committees on Armed Services of the Senate and the 

19 House of Representatives each year a report on the results 

20 of the reviews conducted by the military departments 

21 under subparagraph (A) during the preceding year. 

22 ‘‘(c) RETIREMENT.—If, as a result of a periodic ex23 amination under section 1210(a) of this title or upon a 

24 final determination under section 1210(b) of this title, it 

25 is determined that a member’s physical disability is of a 


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1 permanent nature, the member’s name shall be removed 

2 from the temporary disability retired list, and the member 

3 shall be retired under section 1206d of this title. 

4 ‘‘§ 1206f. Treatment of retired pay 

5 ‘‘(a) IN GENERAL.—Retired pay authorized by this 

6 subchapter shall be treated as retired pay for all purposes 

7 under this title, including for purposes of eligibility for 

8 medical and dental care under chapter 55 of this title. 

9 ‘‘(b) NO OFFSET UNDER DUPLICATION OF BENE10 FITS.—Retired pay authorized by this subchapter is not 

11 subject to the prohibitions against duplication of benefits 

12 under sections 5304 and 5305 of title 38. 

13 ‘‘(c) INELIGIBILITY FOR COMBAT-RELATED SPECIAL

14 COMPENSATION.—A member retired under this sub15 chapter is not eligible for combat-related special com16 pensation under section 1413a of this title. 

17 ‘‘(d) INELIGIBILITY FOR CERTAIN SPACE-AVAILABLE

18 TRAVEL.—A member retired under this subchapter resid19 ing in a Commonwealth or possession of the United States 

20 is not eligible for space-available travel on Department of 

21 Defense aircraft under section 2461b of this title. 

22 ‘‘§ 1206g. Determinations of unfitness 

23 ‘‘(a) IN GENERAL.—In this subchapter, a finding of 

24 unfitness for duty with respect to a member shall be based 

25 on determinations by the Secretary concerned that— 


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1 ‘‘(1) the member is unfit to perform the duties 

2 of the member’s office, grade, rank, or rating be3 cause of a physical disability; and 

4 ‘‘(2) it is unlikely that through retraining in an5 other occupational specialty or other preparations 

6 the member can be reassigned to other duties the 

7 member would be fit to perform and which are con8 sistent with the needs of the armed force concerned. 

9 ‘‘(b) INTERSERVICE TRANSFER.—With the consent 

10 of a member determined unfit for duty under subsection 

11 (a), the member may, instead of being retired under this 

12 subchapter, be transferred under section 716 of this title 

13 to another uniformed service if the Secretary responsible 

14 for that uniformed service determines that the member, 

15 currently or through retraining in another occupational 

16 specialty or other preparations, can be reassigned to other 

17 duties the member would be fit to perform and which are 

18 consistent with the needs of that uniformed service. 

19 ‘‘(c) CONTINUATION OF SERVICE OF MEMBER DE20 TERMINED UNFIT.—Upon the agreement of a member de21 termined unfit for duty under subsection (a) and the Sec22 retary concerned, the member’s service may be continued 

23 under terms and conditions specified by the Secretary con24 cerned, including through transfer to another uniformed 

25 service under section 716 of this title. 


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1 ‘‘§ 1206h. Definitions 

2 ‘‘In this subchapter, the terms ‘disability’ and ‘phys3 ical disability’ include any disability based on a mental dis4 order. 

5 ‘‘SUBCHAPTER III—ADMINISTRATIVE 

6 MATTERS’’. 

7 (b) CLERICAL AMENDMENTS.—Chapter 61 of such 

8 title is further amended— 

9 (1) by inserting after the chapter heading the 

10 following: 

‘‘Subchapter Sec.

‘‘I. Retirement or Separation Before Implementation of Enhanced Department of Veterans Affairs Disability Compensation 

System ........................................................................... 1200

‘‘II. Retirement After Implementation of Enhanced Department of Veterans Affairs Disability Compensation System .............1206a

‘‘III. Administrative Matters .................................................................... 1207’’; 

11 (2) by inserting after the subchapter heading 

12 for subchapter I, as added by subsection (a)(1) of 

13 this section, the following: 

‘‘Sec. 

‘‘1200. Applicability of subchapter: members retired or separated before implementation of enhanced Department of Veterans Affairs disability compensation system; certain members on temporary 

disability retired list as of implementation of enhanced Department of Veterans Affairs disability compensation system. 

‘‘1201. Regulars and members on active duty for more than 30 days: retirement. 

‘‘1202. Regulars and members on active duty for more than 30 days: temporary 

disability retired list. 

‘‘1203. Regulars and members on active duty for more than 30 days: separation. 

‘‘1204. Members on active duty for 30 days or less or on inactive-duty training: 

retirement. 

‘‘1205. Members on active duty for 30 days or less or on inactive-duty training: 

temporary disability retired list. 

‘‘1206. Members on active duty for 30 days or less or on inactive-duty training: 

separation.’’; 


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1 (3) by inserting after the subchapter heading 

2 for subchapter II, as added by subsection (a)(3) of 

3 this section, the following: 

‘‘Sec. 

‘‘1206a. Applicability of subchapter: members retired on or after implementation 

of enhanced Department of Veterans Affairs disability compensation system. 

‘‘1206b. Applicability of subchapter: certain members retired on or after October 

7, 2001, but before implementation of enhanced Department of 

Veterans Affairs disability compensation system. 

‘‘1206c. Applicability of subchapter: members on temporary disability retired list 

as of implementation of enhanced Department of Veterans Affairs disability compensation system. 

‘‘1206d. Retirement. 

‘‘1206e. Temporary disability retired list. 

‘‘1206f. Treatment of retired pay. 

‘‘1206g. Determinations of unfitness. 

‘‘1206h. Definitions.’’; 

4 and 

5 (4) by inserting after the subchapter heading 

6 for subchapter III, as so added, the following: 

‘‘Sec. 

‘‘1207. Disability from intentional misconduct or willful neglect: separation. 

‘‘1207a. Members with over eight years of active service: eligibility for disability 

retirement for pre-existing conditions. 

‘‘1207b. Reserve component members unable to perform duties when ordered to 

active duty: disability system processing. 

‘‘1208. Computation of service. 

‘‘1209. Transfer to inactive status list instead of separation. 

‘‘1210. Members on temporary disability retired list: periodic physical examination; final determination of status. 

‘‘1211. Members on temporary disability retired list: return to active duty; promotion. 

‘‘1212. Disability severance pay. 

‘‘1213. Effect of separation on benefits and claims. 

‘‘1214. Right to full and fair hearing. 

‘‘1215. Members other than Regulars: applicability of laws. 

‘‘1216. Secretaries: powers, functions, and duties. 

‘‘1217. Academy cadets and midshipmen: applicability of chapter. 

‘‘1218. Discharge or release from active duty: claims for compensation, pension, 

or hospitalization. 

‘‘1219. Statement of origin of disease or injury: limitations. 

‘‘1221. Effective date of retirement or placement of name on temporary disability retired list.’’. 


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1 SERVICE.—Section 1207a(a) of title 10, United States 

2 Code, is amended by striking ‘‘or 1203’’ and inserting 

3 ‘‘1203, 1206b, 1206c, 1206d, or 1206e’’. 

4 (d) COMPUTATION OF RETIRED PAY.—The table in 

5 section 1401(a) of title 10, United States Code, is amend6 ed by inserting after the matter relating to Formula 2 the 

7 following matter: 

‘‘3 1206b Retired pay base 21⁄2% of years of service 

1206c as computed credited to the person 

1206d under section under section 1208.1’’. 

1206e 1406(b) or 

1407. 

8 (e) CONFORMING AMENDMENTS RELATING TO RE9 TIRED PAY.— 

10 (1) RECOMPUTATION OF RETIRED PAY TO RE11 FLECT LATER ACTIVE DUTY.—Sections 1402(b) and 

12 1402a(b) of title 10, United States Code, are each 

13 amended by inserting ‘‘(as in effect before the effec14 tive date of the implementation of the enhanced De15 partment of Veterans Affairs disability compensation 

16 system (as determined in accordance with section 

17 206 of the Noble Warrior Act) or subchapter I of 

18 chapter 61 of this title (as in effect after such effec19 tive date), as applicable’’ after ‘‘chapter 61 of this 

20 title’’. 

21 (2) RETIRED PAY BASE FOR MEMBERS RETIRED

22 BEFORE SEPTEMBER 8, 1980.—The items in the colVerDate Aug 31 2005 22:57 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 tive date), as applicable’’ after ‘‘chapter 61 of this 

2 title’’. 

3 (2) RETIRED PAY BASE FOR MEMBERS RETIRED

4 BEFORE SEPTEMBER 8, 1980.—The items in the col5 umn in the table in section 1406(b)(1) of such title 

6 designated ‘‘For a member entitled to retired pay 

7 under section:’’ are amended to read as follows: 

‘‘1201 

1202 

1204 

1205 

1206b 

1206c 

1206d 

1206e’’. 

8 (3) RETIRED PAY BASE FOR MEMBERS RETIRED

9 AFTER SEPTEMBER 7, 1980.—Section 1407 of such 

10 title is amended— 

11 (A) in subsection (c)— 

12 (i) in paragraph (1), by striking 

13 ‘‘other than section 1204 or 1205 or sec14 tion 12731 of this title’’ and inserting 

15 ‘‘(other than section 1204, 1205, or 12731 

16 of this title, or section 1206b, 1206c, 

17 1206d, or 1206e of this title for nonreg18 ular service)’’; 

19 (ii) in paragraph (2), by inserting ‘‘, 

20 or under section 1206b, 1206c, 1206d, or 

21 1206e of this title for regular service,’’ 


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1 after ‘‘section 1201 or 1202 of this title’’; 

2 and 

3 (iii) in paragraph (3)— 

4 (I) by striking ‘‘section 1201 or 

5 1202’’ and inserting ‘‘section 1201, 

6 1202, 1206b, 1206c, 1206d, or 

7 1206e’’; and 

8 (II) by inserting ‘‘or under sec9 tion 1206b, 1206c, 1206d, or 1206e 

10 of this title for nonregular service’’ 

11 before the period; and 

12 (B) in subsection (d)— 

13 (i) in paragraph (2), by inserting ‘‘, or 

14 under section 1206b, 1206c, 1206d, or 

15 1206e of this title for nonregular service,’’ 

16 after ‘‘section 1204 or 1205 of this title’’; 

17 and 

18 (ii) in paragraph (3), inserting ‘‘, or 

19 under section 1206, 1206c, 1206d, or 

20 1206e of this title for nonregular service,’’ 

21 after ‘‘section 1204 or 1205 of this title’’. 

22 (4) GRADE ON RETIREMENT FOR PHYSICAL

23 DISABILITY.—Section 1372 of such title is amend24 ed— 


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1 (A) by striking ‘‘section 1201 or 1204’’ 

2 and inserting ‘‘section 1201, 1204, 1206b, 

3 1206c, or 1206d’’; and 

4 (B) by striking ‘‘section 1202 or 1205’’ 

5 and inserting ‘‘section 1202, 1205, or 1206e’’. 

6 (f) EFFECTIVE DATE.— 

7 (1) IN GENERAL.—Except as provided in para8 graph (2), this section and the amendments made by 

9 this section shall take effect, if at all, on the effec10 tive date of the implementation of the enhanced De11 partment of Veterans Affairs disability compensation 

12 system as determined in accordance with section 

13 206. 

14 (2) ANTICIPATION OF IMPLEMENTATION.—The 

15 Secretary of Defense shall take appropriate actions 

16 to ensure that the amendments made by this section 

17 are implementable on the effective date described in 

18 paragraph (1) in the event of the implementation of 

19 the enhanced Department of Veterans Affairs dis20 ability compensation system on that date. 


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1 SEC. 102. CONTINUATION OF RESPITE CARE AND AID AND 

2 OTHER EXTENDED CARE BENEFITS FOR 

3 MEMBERS OF THE UNIFORMED SERVICES 

4 WHO INCUR A SERIOUS INJURY OR ILLNESS 

5 ON ACTIVE DUTY. 

6 Paragraph (4) of section 1074(c) of title 10, United 

7 States Code, as added by section 1633(a) of the Wounded 

8 Warrior Act (title XVI of the National Defense Authoriza9 tion Act for Fiscal Year 2008), is amended— 

10 (1) by redesignating subparagraph (B) as sub11 paragraph (C); and 

12 (2) by inserting after subparagraph (A) the fol13 lowing new subparagraph (B): 

14 ‘‘(B) Coverage for a member under this paragraph 

15 may continue for such period after the discharge or sepa16 ration of the member from active duty as the Secretary 

17 considers appropriate.’’. 

18 TITLE II—COMPENSATION OF 

19 VETERANS FOR SERVICE20 CONNECTED DISABILITY 

21 SEC. 201. STUDY ON VETERANS DISABILITY COMPENSA22 TION. 

23 (a) IN GENERAL.—The Secretary of Veterans Affairs 

24 shall conduct a study to determine the amount of com25 pensation for service-connected disability to be payable to 

26 veterans under chapter 12 of title 38, United States Code 


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1 (as added by section 207(b) of this Act), for each rating 

2 of disability assignable to veterans for service-connected 

3 disability. 

4 (b) MATTERS TO BE EXAMINED.—In conducting the 

5 study required by subsection (a), the Secretary shall exam6 ine the following: 

7 (1) The nature of injuries and combination of 

8 injuries for which disability compensation is payable 

9 under various disability compensation programs of 

10 the Federal Government, State governments, and 

11 other countries. 

12 (2) To the extent applicable, the nature of inju13 ries and combination of injuries for which disability 

14 compensation is payable under commercial disability 

15 insurance. 

16 (3) The extent to which quality of life and loss 

17 of earnings are independently taken into account in 

18 various disability compensation programs of the 

19 Federal Government, State governments, and other 

20 countries. 

21 (4) The effect of an injury or combination of in22 juries on— 

23 (A) average loss of earning capacity, such 

24 as inability to work in certain occupations; and 


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1 (B) a veteran’s quality of life, such as ac2 tivities of independent living, recreational and 

3 community activities, and personal relation4 ships, including the inability to participate in 

5 favorite activities, social problems related to dis6 figurement or cognitive difficulties, and the 

7 need to spend increased amounts of time per8 forming activities of daily living. 

9 (5) The measurement of the effect of an injury 

10 or combination of injuries on a veteran’s psycho11 logical state, loss of physical integrity, and social in12 ability to adapt. 

13 (6) The extent to which disability compensation 

14 for veterans may be used as an incentive to encour15 age veterans to seek and undergo appropriate med16 ical treatment and vocational rehabilitation. 

17 (c) CONSIDERATIONS IN DETERMINATIONS OF

18 AMOUNTS OF COMPENSATION.— 

19 (1) GENERAL CONSIDERATIONS.—In deter20 mining amounts of compensation under the study re21 quired by subsection (a), the Secretary shall ensure 

22 that the determinations— 

23 (A) reflect current concepts of medicine 

24 and disability; and 


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1 (B) take into account loss of quality of life 

2 and average loss of earning capacity resulting 

3 from specific injuries or combinations of inju4 ries. 

5 (2) SPECIFIC CONSIDERATIONS.—In deter6 mining amounts of compensation, the Secretary shall 

7 consider the following: 

8 (A) The appropriate injuries or combina9 tion of injuries to be covered by the new sched10 ule for rating service-connected disabilities. 

11 (B) The appropriate level of compensation 

12 under that schedule for loss of quality of life. 

13 (C) The appropriate standards for deter14 mining for purposes of that schedule whether 

15 an injury or combination of injuries has caused 

16 a loss in a veteran’s quality of life. 

17 (D) The appropriate level of compensation, 

18 including an age-appropriate level of compensa19 tion at time of initial filing of claims, under 

20 that schedule for loss of earnings. 

21 (E) The appropriate standards for pur22 poses of that schedule for determining whether 

23 an injury or combination of injuries causes loss 

24 of earnings. 


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1 (F) The appropriate relationship between 

2 the receipt of compensation under that sched3 ule, and, where appropriate, assurances by the 

4 veterans concerned of participation in a regi5 men of medical treatment or vocational rehabili6 tation. 

7 (d) CONSULTATION.—In conducting the study re8 quired by subsection (a), the Secretary— 

9 (1) shall consult with such veterans and mili10 tary service organizations and with such public and 

11 private organizations and individuals as the Sec12 retary considers appropriate; and 

13 (2) may employ consultants. 

14 (e) CONSIDERATION OF COMPLETED AND ON-GOING

15 STUDIES.—In conducting the study required by subsection 

16 (a), the Secretary may take into account the findings, de17 terminations, and results of any completed or on-going 

18 study or report applicable to the matters addressed by the 

19 study required by subsection (a) that the Secretary con20 siders appropriate. 

21 (f) REPORT.—Not later than 270 days after the com22 mencement of the study required by subsection (a), the 

23 Secretary shall submit to the Committee on Veterans’ Af24 fairs of the Senate and the Committee on Veterans’ AfVerDate Aug 31 2005 02:42 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 fairs of the House of Representatives a report on the 

2 study. The report shall include the following: 

3 (1) The findings of the Secretary under the 

4 study. 

5 (2) The findings of the Secretary with respect 

6 to matters covered by the study arising from— 

7 (A) the report of the Veterans’ Disability 

8 Benefits Commission established pursuant to 

9 section 1501 of the National Defense Author10 ization Act of 2004 (38 U.S.C. 1101 note); and 

11 (B) the reports of any other independent 

12 advisory commission that has studied the mat13 ters covered by the study as the Secretary con14 siders appropriate. 

15 (3) The recommendations of the Secretary on 

16 the matters considered under subparagraphs (A), 

17 (C), (E), and (F) of subsection (c)(2), including a 

18 proposal for such legislative or administrative action 

19 as the Secretary considers appropriate to implement 

20 the recommendations. 

21 SEC. 202. STUDY ON VETERANS TRANSITION BENEFITS. 

22 (a) IN GENERAL.—The Secretary of Veterans Affairs 

23 shall conduct a study to determine the appropriate 

24 amounts and duration of transition payments to be pay25 able under chapter 12 of title 38, United States Code (as 


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1 added by section 207(b) of this Act), including the amount 

2 of monthly transition payments to be payable under sec3 tion 1204(b) of title 38, United States Code (as so added), 

4 and the amount and duration of rehabilitation transition 

5 allowances to be payable under section 1204(c) of title 38, 

6 United States Code (as so added), to veterans who are 

7 participating in a rehabilitation program under chapter 17 

8 or 31 of title 38, United States Code. 

9 (b) CONSIDERATIONS.—In determining under sub10 section (a) the amount and duration of rehabilitation tran11 sition allowances to be payable under section 1204(c) of 

12 title 38, United States Code (as so added), to veterans 

13 who are participating in a rehabilitation program under 

14 chapter 17 or 31 of title 38, United States Code, the Sec15 retary shall take into account the prohibition in paragraph 

16 (7) of such section 1204(c) on the payment of subsistence 

17 allowances otherwise authorized by section 3108 of title 

18 38, United States Code, to veterans paid rehabilitation 

19 transition allowances under such section 1204(c). 

20 (c) CONSULTATION.—In conducting the study re21 quired by subsection (a), the Secretary— 

22 (1) shall consult with such veterans and mili23 tary service organizations and with such public and 

24 private organizations and individuals as the Sec25 retary considers appropriate; and 


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1 (2) may employ consultants. 

2 (d) CONSIDERATION OF COMPLETED AND ON-GOING

3 STUDIES.—In conducting the study required by subsection 

4 (a), the Secretary may take into account the findings, de5 terminations, and results of any completed or on-going 

6 study or report applicable to the matters addressed by the 

7 study required by subsection (a) that the Secretary con8 siders appropriate. 

9 (e) REPORT.—Not later than 270 days after the com10 mencement of the study required by subsection (a), the 

11 Secretary shall submit to the Committee on Veterans’ Af12 fairs of the Senate and the Committee on Veterans’ Af13 fairs of the House of Representatives a report on the 

14 study. The report shall include the following: 

15 (1) The findings of the Secretary under the 

16 study. 

17 (2) The findings of the Secretary with respect 

18 to matters covered by the study arising from— 

19 (A) the report of the Veterans’ Disability 

20 Benefits Commission established pursuant to 

21 section 1501 of the National Defense Author22 ization Act of 2004 (38 U.S.C. 1101 note); and 

23 (B) the reports of such other independent 

24 advisory commissions that have studied the 


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1 matters covered by the study as the Secretary 

2 considers appropriate. 

3 SEC. 203. STUDY ON MEASURES TO ASSIST AND ENCOUR4 AGE VETERANS IN THE COMPLETION OF 

5 THEIR VOCATIONAL REHABILITATION PLANS. 

6 (a) IN GENERAL.—The Secretary of Veterans Affairs 

7 shall conduct a study to identify the following: 

8 (1) The various factors that may prevent or 

9 preclude veterans from completing their vocational 

10 rehabilitation plans through the Department of Vet11 erans Affairs or otherwise achieving the vocational 

12 rehabilitation objectives of such plans. 

13 (2) Actions to be taken by the Secretary to as14 sist and encourage veterans in overcoming such fac15 tors and in otherwise completing their vocational re16 habilitation plans or achieving the vocational reha17 bilitation objectives of such plans. 

18 (b) MATTERS TO BE EXAMINED.—In conducting the 

19 study required by subsection (a), the Secretary shall exam20 ine the following: 

21 (1) Measures utilized in other disability systems 

22 in the United States, and in other countries, to en23 courage completion of vocational rehabilitation. 

24 (2) Any survey data available to the Secretary 

25 that relates to the matters covered by the study. 


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1 (3) The results of the studies conducted pursu2 ant to sections 201 and 202, including any analysis 

3 for purposes of such studies of the extent to which 

4 disability compensation may be used as an incentive 

5 to encourage veterans to undergo and complete voca6 tional rehabilitation. 

7 (4) The report of the Veterans’ Disability Bene8 fits Commission established pursuant to section 

9 1501 of the National Defense Authorization Act of 

10 2004 (38 U.S.C. 1101 note). 

11 (5) The report of the President’s Commission 

12 on Care for America’s Returning Wounded War13 riors. 

14 (c) CONSIDERATIONS.—In conducting the study re15 quired by subsection (a), the Secretary shall consider— 

16 (1) the extent to which bonus payments or 

17 other incentives may be used to encourage veterans 

18 to complete their vocational rehabilitation plans or 

19 otherwise achieve the vocational rehabilitation objec20 tives of such plans; and 

21 (2) such other matters as the Secretary con22 siders appropriate. 

23 (d) CONSULTATION.—In conducting the study re24 quired by subsection (a), the Secretary— 


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1 (1) shall consult with such veterans and mili2 tary service organizations and with such public and 

3 private organizations and individuals as the Sec4 retary considers appropriate; and 

5 (2) may employ consultants. 

6 (e) REPORT.—Not later than 270 days after the com7 mencement of the study required by subsection (a), the 

8 Secretary shall submit to the Committee on Veterans’ Af9 fairs of the Senate and the Committee on Veterans’ Af10 fairs of the House of Representatives a report on the 

11 study. The report shall include the following: 

12 (1) The findings of the Secretary under the 

13 study. 

14 (2) Any recommendations that the Secretary 

15 considers appropriate for actions to be taken by the 

16 Secretary in light of the study, including a proposal 

17 for such legislative or administrative action as the 

18 Secretary considers appropriate to implement the 

19 recommendations. 

20 SEC. 204. PROPOSAL ON VETERANS DISABILITY COMPENSA21 TION AND VETERANS TRANSITION BENEFITS. 

22 Not later than one year after the later of the dates 

23 of the reports required by sections 201(f) and 202(d), the 

24 Secretary of Veterans Affairs shall submit to Congress a 

25 proposal setting forth the following: 


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1 (1) A statement of the purpose or purposes of 

2 the disability compensation and transition payments 

3 to be payable to veterans under chapter 12 of title 

4 38, United States Code (as added by section 207(b) 

5 of this Act). 

6 (2) A statement of the amounts of compensa7 tion for service-connected disability to be payable to 

8 veterans under chapter 12 of title 38, United States 

9 Code (as so added), for each rating of disability as10 signable to veterans for service-connected disability. 

11 (3) A statement of the amounts and duration of 

12 transition benefits to be payable to veterans under 

13 chapter 12 of title 38, United States Code (as so 

14 added), including the amount of monthly transition 

15 payments to be payable under section 1204(b) of 

16 title 38, United States Code (as so added), and the 

17 amount and duration of rehabilitation transition al18 lowances to be payable under section 1204(c) of title 

19 38, United States Code (as so added), to veterans 

20 who are participating in a rehabilitation program 

21 under chapter 17 or 31 of title 38, United States 

22 Code. 

23 SEC. 205. CONGRESSIONAL CONSIDERATION OF PROPOSAL. 

24 (a) TERMS OF JOINT RESOLUTION.—For purposes of 

25 this section, the term ‘‘joint resolution’’ means only a joint 


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1 resolution which is introduced within the 10-day period 

2 beginning on the date on which the Secretary of Veterans 

3 Affairs submits to Congress the proposal of the Secretary 

4 of Veterans Affairs on veterans disability compensation 

5 and veterans transition benefits under section 204, and— 

6 (1) which does not have a preamble; 

7 (2) the matter after the resolving clause of 

8 which is as follows: ‘‘That Congress disapproves the 

9 proposal on veterans disability compensation and 

10 veterans transition benefits under section 204 of the 

11 Noble Warrior Act as submitted to Congress on 

12 lllll’’, the blank space being filled in with 

13 the appropriate date; and 

14 (3) the title of which is as follows: ‘‘Joint reso15 lution disapproving the proposal of the Secretary of 

16 Veterans Affairs on veterans disability compensation 

17 and veterans transition benefits under the Noble 

18 Warrior Act.’’. 

19 (b) REFERRAL.—A resolution described in subsection 

20 (a) that is introduced in the House of Representatives 

21 shall be referred to the Committee on Veterans’ Affairs 

22 of the House of Representatives. A resolution described 

23 in subsection (a) introduced in the Senate shall be referred 

24 to the Committee on Veterans’ Affairs of the Senate. 


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1 (c) DISCHARGE.—If the committee to which a resolu2 tion described in subsection (a) is referred has not re3 ported such resolution (or an identical resolution) by the 

4 end of the 60-day period beginning on the date on which 

5 the Secretary of Veterans Affairs submits to Congress the 

6 proposal under section 204, such committee shall be, at 

7 the end of such period, discharged from further consider8 ation of such resolution, and such resolution shall be 

9 placed on the appropriate calendar of the House involved. 

10 (d) CONSIDERATION.— 

11 (1) On or after the third day after the date on 

12 which the committee to which such a resolution is 

13 referred has reported, or has been discharged (under 

14 subsection (c)) from further consideration of, such a 

15 resolution, it is in order (even though a previous mo16 tion to the same effect has been disagreed to) for 

17 any Member of the respective House to move to pro18 ceed to the consideration of the resolution. A Mem19 ber may make the motion only on the day after the 

20 calendar day on which the Member announces to the 

21 House concerned the Member’s intention to make 

22 the motion, except that, in the case of the House of 

23 Representatives, the motion may be made without 

24 such prior announcement if the motion is made by 

25 direction of the committee to which the resolution 


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•HR 5509 IH

1 was referred. All points of order against the resolu2 tion (and against consideration of the resolution) are 

3 waived. The motion is highly privileged in the House 

4 of Representatives and is privileged in the Senate 

5 and is not debatable. The motion is not subject to 

6 amendment, or to a motion to postpone, or to a mo7 tion to proceed to the consideration of other busi8 ness. A motion to reconsider the vote by which the 

9 motion is agreed to or disagreed to shall not be in 

10 order. If a motion to proceed to the consideration of 

11 the resolution is agreed to, the respective House 

12 shall immediately proceed to consideration of the 

13 joint resolution without intervening motion, order, or 

14 other business, and the resolution shall remain the 

15 unfinished business of the respective House until 

16 disposed of. 

17 (2) Debate on the resolution, and on all debat18 able motions and appeals in connection therewith, 

19 shall be limited to not more than 2 hours, which 

20 shall be divided equally between those favoring and 

21 those opposing the resolution. An amendment to the 

22 resolution is not in order. A motion further to limit 

23 debate is in order and not debatable. A motion to 

24 postpone, or a motion to proceed to the consider25 ation of other business, or a motion to recommit the 


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1 resolution is not in order. A motion to reconsider the 

2 vote by which the resolution is agreed to or dis3 agreed to is not in order. 

4 (3) Immediately following the conclusion of the 

5 debate on a resolution described in subsection (a) 

6 and a single quorum call at the conclusion of the de7 bate if requested in accordance with the rules of the 

8 appropriate House, the vote on final passage of the 

9 resolution shall occur. 

10 (4) Appeals from the decisions of the Chair re11 lating to the application of the rules of the Senate 

12 or the House of Representatives, as the case may be, 

13 to the procedure relating to a resolution described in 

14 subsection (a) shall be decided without debate. 

15 (e) CONSIDERATION BY OTHER HOUSE.— 

16 (1) If, before the passage by one House of a 

17 resolution of that House described in subsection (a), 

18 that House receives from the other House a resolu19 tion described in subsection (a), then the following 

20 procedures shall apply: 

21 (A) The resolution of the other House shall 

22 not be referred to a committee and may not be 

23 considered in the House receiving it except in 

24 the case of final passage as provided in sub25 paragraph (B)(ii). 


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1 (B) With respect to a resolution described 

2 in subsection (a) of the House receiving the res3 olution— 

4 (i) the procedure in that House shall 

5 be the same as if no resolution had been 

6 received from the other House; but 

7 (ii) the vote on final passage shall be 

8 on the resolution of the other House. 

9 (2) Upon disposition of the resolution received 

10 from the other House, it shall no longer be in order 

11 to consider the resolution that originated in the re12 ceiving House. 

13 (f) RULES OF THE SENATE AND HOUSE.—This sec14 tion is enacted by Congress— 

15 (1) as an exercise of the rulemaking power of 

16 the Senate and House of Representatives, respec17 tively, and as such it is deemed a part of the rules 

18 of each House, respectively, but applicable only with 

19 respect to the procedure to be followed in that 

20 House in the case of a resolution described in sub21 section (a), and it supersedes other rules only to the 

22 extent that it is inconsistent with such rules; and 

23 (2) with full recognition of the constitutional 

24 right of either House to change the rules (so far as 

25 relating to the procedure of that House) at any time, 


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•HR 5509 IH

1 in the same manner, and to the same extent as in 

2 the case of any other rule of that House. 

3 SEC. 206. EFFECTIVE DATE OF IMPLEMENTATION OF EN4 HANCED DEPARTMENT OF VETERANS AF5 FAIRS DISABILITY COMPENSATION SYSTEM. 

6 (a) IN GENERAL.—For purposes of this Act and the 

7 amendments made by this Act, the effective date of the 

8 implementation of the enhanced Department of Veterans 

9 Affair disability compensation system is the date, as pro10 vided in subsection (b), on which the authority of Congress 

11 under section 205 to disapprove the proposal of the Sec12 retary of Veterans Affairs on veterans disability com13 pensation and veterans transition benefits under section 

14 204 expires, but only if Congress does not so disapprove 

15 the proposal of the Secretary before such date. 

16 (b) DISAPPROVAL BY CONGRESS.— 

17 (1) IN GENERAL.—The Secretary of Veterans 

18 Affairs shall not implement the enhanced Depart19 ment of Veterans Affairs disability compensation 

20 system if a joint resolution is enacted, in accordance 

21 with section 205, disapproving the proposal of the 

22 Secretary of Veterans Affairs on veterans disability 

23 compensation and veterans transition benefits under 

24 section 204 before the earlier of— 


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•HR 5509 IH

1 (A) the end of the 85-day period beginning 

2 on the date on which the Secretary submits the 

3 proposal to Congress; or 

4 (B) the adjournment of Congress sine die 

5 for the session during which the proposal is 

6 submitted. 

7 (2) COMPUTATION OF PERIODS.—For purposes 

8 of paragraph (1) and section 205, the days on which 

9 either House of Congress is not in session because 

10 of an adjournment of more than three days to a day 

11 certain shall be excluded in the computation of a pe12 riod. 

13 (c) ENHANCED DEPARTMENT OF VETERANS AF14 FAIRS DISABILITY COMPENSATION SYSTEM DEFINED.— 

15 For purposes of this Act and the amendments made by 

16 this Act, the term ‘‘enhanced Department of Veterans Af17 fairs disability compensation system’’ means— 

18 (1) the elements of the proposal of the Sec19 retary of Veterans Affairs on veterans disability 

20 compensation and veterans transition benefits under 

21 section 204; and 

22 (2) the amendments to section 1155 of title 38, 

23 United States Code, made by section 207(a) of this 

24 Act; and 


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1 (3) chapter 12 of title 38, United States Code, 

2 as added by section 207(b) of this Act. 

3 SEC. 207. ENHANCED DEPARTMENT OF VETERANS AFFAIRS 

4 DISABILITY COMPENSATION SYSTEM. 

5 (a) MODIFICATION OF SCHEDULE OF RATINGS TO

6 ACCOUNT FOR LOSS OF EARNING CAPACITY AND QUAL7 ITY OF LIFE.— 

8 (1) IN GENERAL.—Section 1155 of title 38, 

9 United States Code, is amended to read as follows: 

10 ‘‘§ 1155. Schedule for rating disabilities 

11 ‘‘(a) IN GENERAL.—The Secretary shall adopt and 

12 apply a schedule of ratings of disability of veterans associ13 ated with specific injuries or combinations of injuries. 

14 ‘‘(b) SCOPE OF RATINGS.—(1) For veterans for 

15 whom disability compensation is payable under this chap16 ter, the ratings under subsection (a) shall be based, as 

17 far as practicable, upon the average impairments of earn18 ing capacity in civil occupations resulting from the injuries 

19 concerned. 

20 ‘‘(2) For veterans for whom disability compensation 

21 is payable under chapter 12 of this title, the ratings shall 

22 reflect, as far as practicable, each of the following: 

23 ‘‘(A) Average loss of earning capacity, such as 

24 inability to work in certain occupations. 


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1 ‘‘(B) Quality of life, such as activities of inde2 pendent living, recreational and community activi3 ties, and personal relationships, including the inabil4 ity to participate in favorite activities, social prob5 lems related to disfigurement or cognitive difficul6 ties, and the need to spend increased amounts of 

7 time performing activities of daily living. 

8 ‘‘(c) GRADES OF DISABILITY.—(1) For veterans for 

9 whom disability compensation is payable under this chap10 ter, the schedule of ratings shall be constructed so as to 

11 provide ten grades of disability and no more, upon which 

12 payments of compensation shall be based, namely 10 per13 cent, 20 percent, 30 percent, 40 percent, 50 percent, 60 

14 percent, 70 percent, 80 percent, 90 percent, and total, 100 

15 percent. 

16 ‘‘(2) For veterans for whom disability compensation 

17 is payable under chapter 12 of this title, the schedule of 

18 ratings shall be constructed— 

19 ‘‘(A) at the discretion of the Secretary in light 

20 of the study required by section 201 of the Noble 

21 Warrior Act, so as to provide such number of grades 

22 of disability as the Secretary considers appropriate; 

23 ‘‘(B) at the discretion of the Secretary in light 

24 of the study referred to in subparagraph (A), so as 

25 to provide either— 


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1 ‘‘(i) the assignment to veterans of separate 

2 grades of disability reflecting each matter speci3 fied in subparagraphs (A) and (B) of subsection 

4 (b)(2); or 

5 ‘‘(ii) the assignment to veterans of a single 

6 grade of disability reflecting both such matters; 

7 and 

8 ‘‘(C) if provided in the schedule at the discre9 tion of the Secretary in light of the study referred 

10 to in subparagraph (A), so as to reflect in the grade 

11 of disability assignable to a veteran for average loss 

12 of earning capacity the effect of the age of the vet13 eran on the potential future earnings of the veteran 

14 at the time of assignment. 

15 ‘‘(d) ADJUSTMENT.—The Secretary shall from time 

16 to time adjust the schedule of ratings in accordance with 

17 experience. 

18 ‘‘(e) PRESERVATION OF RATING.—(1) Except as pro19 vided in paragraph (2), an adjustment in the schedule of 

20 ratings under subsection (d) shall not cause a veteran’s 

21 disability rating in effect on the effective date of the ad22 justment to be reduced unless an improvement in the vet23 eran’s disability is shown to have occurred. 


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1 ‘‘(2) An adjustment in the schedule of ratings may 

2 result in a reduction in a veteran’s disability rating as pro3 vided in section 1205 of this title.’’. 

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions at the beginning of chapter 11 of such title is 

6 amended by striking the item relating to section 

7 1155 and inserting the following new item: 

‘‘1155. Schedule for rating disabilities.’’. 

8 (3) EFFECTIVE DATE.—Except as provided in 

9 paragraph (4), this subsection and the amendments 

10 made by this subsection shall take effect, if at all, 

11 on the effective date of the implementation of the 

12 enhanced Department of Veterans Affairs disability 

13 compensation system as determined in accordance 

14 with section 206. 

15 (4) ANTICIPATION OF IMPLEMENTATION.—The 

16 Secretary of Veterans Affairs shall take appropriate 

17 actions to ensure that the amendments made by this 

18 subsection are implementable on the effective date 

19 described in paragraph (3) in the event of the imple20 mentation of the enhanced Department of Veterans 

21 Affairs disability compensation system on that date. 

22 (b) DISABILITY COMPENSATION FOR LOSS OF EARN23 ING CAPACITY AND QUALITY OF LIFE AND TRANSITION

24 PAYMENTS FOR PARTICIPATION IN MEDICAL OR

25 REHABILITATIONAL REGIMEN.— 


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1 (1) IN GENERAL.—Part II of title 38, United 

2 States Code, is amended by inserting after chapter 

3 11 the following new chapter: 

4 ‘‘CHAPTER 12—COMPENSATION AND 

5 TRANSITION PAYMENTS FOR SERVICE6 CONNECTED DISABILITY 

‘‘Sec. 

‘‘1201. Compensation for service-connected disability: veterans not rated as service-connected disabled who file claims for compensation on or 

after implementation of enhanced Department of Veterans Affairs disability compensation system. 

‘‘1202. Compensation for service-connected disability: veterans rated as serviceconnected disabled as of implementation of enhanced Department of Veterans Affairs disability compensation system who 

file claims on or after implementation. 

‘‘1203. Rates of compensation. 

‘‘1204. Transition benefits: payments; allowances. 

‘‘1205. Periodic review of extent of disability. 

‘‘1206. Prohibition on duplication of benefits. 

7 ‘‘§ 1201. Compensation for service-connected dis8 ability: veterans not rated as service-con9 nected disabled who file claims for com10 pensation on or after implementation of 

11 enhanced Department of Veterans Affairs 

12 disability compensation system 

13 ‘‘(a) IN GENERAL.—In the case of a veteran who has 

14 not been rated as having a service-connected disability 

15 under chapter 11 of this title as of the effective date of 

16 the implementation of the enhanced Department of Vet17 erans Affairs disability compensation system (as deter18 mined in accordance with section 206 of the Noble War19 rior Act) and who files with the Secretary a claim with 


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1 respect to disability on or after that effective date, for dis2 ability resulting from personal injury suffered or disease 

3 contracted in line of duty, or from aggravation of a pre4 existing injury suffered or disease contracted in line of 

5 duty, in the active military, naval, or air service, the 

6 United States will pay such veteran thus disabled and who 

7 was discharged or released under conditions other than 

8 dishonorable from the period of service in which such in9 jury or disease was incurred, or preexisting injury or dis10 ease was aggravated, compensation as provided in section 

11 1203 of this title, but no compensation shall be paid if 

12 the disability is a result of such veteran’s own willful mis13 conduct or abuse of alcohol or drugs. 

14 ‘‘(b) RATING OF DISABILITY.—The rating of dis15 ability for which compensation is payable under this sec16 tion shall be assigned utilizing the schedule of ratings 

17 under section 1155 of this title that is applicable to vet18 erans for whom disability compensation is payable under 

19 this chapter. 

20 ‘‘(c) LIMITATIONS.—(1) The payment of compensa21 tion pursuant to this section shall be subject to the provi22 sions of sections 5110 and 5112 of this title. 

23 ‘‘(2) Compensation shall not be paid under this sec24 tion to a veteran who is retired for disability under sub25 chapter II of chapter 61 of title 10 pursuant to section 


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1 1206a of that title for any period before the first day fol2 lowing termination of the veteran’s receipt of benefits 

3 under section 1204 of this title. 

4 ‘‘§ 1202. Compensation for service-connected dis5 ability: veterans rated as service-con6 nected disabled as of implementation of 

7 enhanced Department of Veterans Affairs 

8 disability compensation system who file 

9 claims on or after implementation 

10 ‘‘(a) IN GENERAL.—In the case of a veteran who is 

11 rated as having a service-connected disability under chap12 ter 11 of this title as of the effective date of the implemen13 tation of the enhanced Department of Veterans Affairs 

14 disability compensation system (as determined in accord15 ance with section 206 of the Noble Warrior Act) who files 

16 with the Secretary a claim with respect to such disability 

17 or disabilities, or another disability, on or after that date, 

18 for disability resulting from personal injury suffered or 

19 disease contracted in line of duty, or from aggravation of 

20 a preexisting injury suffered or disease contracted in line 

21 of duty, in the active military, naval, or air service, the 

22 United States will pay such veteran thus disabled and who 

23 was discharged or released under conditions other than 

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1 ease was aggravated, compensation as provided in section 

2 1203 of this title, but no compensation shall be paid if 

3 such disability is a result of such veteran’s own willful mis4 conduct or abuse of alcohol or drugs. 

5 ‘‘(b) RATING OF DISABILITY.—The rating of dis6 ability for which compensation is payable under this sec7 tion shall— 

8 ‘‘(1) take into account all service-connected dis9 abilities of the veteran concerned, including any dis10 ability for which such veteran was rated as having 

11 a service-connected as described in subsection (a) 

12 and the disability with respect to which such veteran 

13 files a claim as described in that subsection; and 

14 ‘‘(2) be assigned utilizing the schedule of rat15 ings under section 1155 of this title that is applica16 ble to veterans for whom disability compensation is 

17 payable under this chapter. 

18 ‘‘(c) LIMITATION.—The payment of compensation 

19 pursuant to this section shall be subject to the provisions 

20 of sections 5110 and 5112 of this title. 

21 ‘‘§ 1203. Rates of compensation 

22 ‘‘(a) IN GENERAL.—For purposes of sections 1201 

23 and 1202 of this title, the rates of compensation payable 

24 for disabilities shall be the applicable rates specified for 

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1 erans Affairs under section 204(2) of the Noble Warrior 

2 Act. 

3 ‘‘(b) REDUCTION FOR PERSONS INCARCERATED FOR

4 CONVICTION OF A FELONY.—The payment of compensa5 tion for disabilities under sections 1201 and 1202 shall 

6 be subject to the provisions of section 5313 of this title. 

7 ‘‘(c) SOURCE OF FUNDS.—Amounts for the payment 

8 of compensation under this section shall be derived from 

9 amounts available in the Compensation and Pension ac10 count of the Department of Veterans Affairs. 

11 ‘‘§ 1204. Transition benefits: payments; allowances 

12 ‘‘(a) ELIGIBLE VETERANS.—For purposes of this 

13 section, an eligible veteran is any veteran who is retired 

14 under subchapter II of chapter 61 of title 10 pursuant 

15 to section 1206a of that title. 

16 ‘‘(b) MONTHLY TRANSITION PAYMENTS.—(1) Sub17 ject to the provisions of this subsection, the Secretary shall 

18 pay to each eligible veteran a monthly transition payment. 

19 ‘‘(2) A veteran entitled to monthly transition pay20 ments under this subsection shall be paid— 

21 ‘‘(A) a monthly transition payment in an 

22 amount equal to the amount specified with respect 

23 to the veteran in the proposal of the Secretary of 

24 Veterans Affairs under section 204(3) of the Noble 

25 Warrior Act for each of the first three months beVerDate Aug 31 2005 02:42 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 ginning on the date of the veteran’s retirement as 

2 described in paragraph (1); and 

3 ‘‘(B) a one-time prorated payment of such 

4 amount for the remaining portion of the month in 

5 which the retirement of the veteran occurred. 

6 ‘‘(3) No payment shall be made to a veteran under 

7 this subsection for any period for which a rehabilitation 

8 transition allowance is paid the veteran under subsection 

9 (c). 

10 ‘‘(c) REHABILITATION TRANSITION ALLOWANCE.— 

11 (1) Subject to the provisions of this subsection, the Sec12 retary shall pay to each eligible veteran who is partici13 pating in a rehabilitation program under chapter 17 or 

14 31 of this title a monthly rehabilitation transition allow15 ance described in paragraph (3) during the period de16 scribed in paragraph (4). 

17 ‘‘(2)(A) For purposes of this subsection, a veteran 

18 shall be treated as participating in a rehabilitation pro19 gram under chapter 17 of this title if, as determined by 

20 the Secretary, the veteran is participating in an intensive 

21 treatment program under that chapter for a service-con22 nected disability which program is intended to assist the 

23 veteran in restoring the veteran’s ability to obtain and 

24 maintain substantially gainful employment. 


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1 ‘‘(B) For purposes of this subsection, a veteran shall 

2 be treated as participating in a rehabilitation program 

3 under chapter 31 of this title during any period, as deter4 mined by the Secretary, during which the veteran is eligi5 ble, notwithstanding paragraph (7), for the subsistence al6 lowance authorized by section 3108(a)(1) of this title. 

7 ‘‘(3)(A) The amount of the monthly rehabilitation 

8 transition allowance payable to a veteran under this sub9 section is the amount equal to the amount specified with 

10 respect to the veteran in the proposal of the Secretary of 

11 Veterans Affairs under section 204(3) of the Noble War12 rior Act. 

13 ‘‘(B) For any month in which an eligible veteran par14 ticipates in a rehabilitation program described in para15 graph (1) for less than the full month, the amount payable 

16 to the veteran under this paragraph shall be prorated for 

17 the portion of the month in which the veteran so partici18 pates. 

19 ‘‘(C) In the case of a veteran entitled to assistance 

20 under this subsection who is participating in a rehabilita21 tion program that includes paid training on the job, the 

22 Secretary may reduce the veteran’s rehabilitation transi23 tion allowance under this subsection by one dollar for each 

24 dollar of wages, compensation, or other income paid (diVerDate Aug 31 2005 02:42 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 rectly or indirectly) by the employer to the veteran for 

2 such training. 

3 ‘‘(4) The period for which a monthly rehabilitation 

4 transition allowance is payable to a veteran under this 

5 subsection is the period specified with respect to the vet6 eran in the proposal of the Secretary of Veterans Affairs 

7 under section 204(3) of the Noble Warrior Act. 

8 ‘‘(5) A veteran may be paid a rehabilitation transition 

9 allowance under this subsection only if the veteran is com10 plying substantially with the individual rehabilitation or 

11 recovery plan developed by the Secretary for purposes of 

12 the rehabilitation program described in paragraph (1). 

13 ‘‘(6)(A) Except as provided in subparagraph (B), no 

14 rehabilitation transition allowance may be paid under this 

15 subsection to a veteran who is participating in a vocational 

16 rehabilitation program under chapter 31 of this title while 

17 such veteran is incarcerated in a Federal, State, local, or 

18 other penal institution or correctional facility for convic19 tion of a felony. 

20 ‘‘(B) Subparagraph (A) shall not apply to a veteran 

21 who is participating in a vocational rehabilitation program 

22 while residing in a halfway house or participating in a 

23 work-release program in connection with the veteran’s 

24 conviction of a felony. 


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1 ‘‘(7) A veteran paid a rehabilitation transition allow2 ance for a month under this subsection may not be paid 

3 the subsistence allowance otherwise authorized for the vet4 eran under section 3108 of this title for that month. 

5 ‘‘(d) SOURCE OF FUNDS.—Amounts for payments 

6 under this section shall be derived from amounts available 

7 in the Readjustment Benefits account of the Department 

8 of Veterans Affairs. 

9 ‘‘§ 1205. Periodic review of extent of disability 

10 ‘‘(a) IN GENERAL.—Except as provided under this 

11 section, the Secretary shall— 

12 ‘‘(1) reevaluate and adjust, if appropriate, the 

13 disability rating of each veteran entitled to com14 pensation under section 1201 or 1202 of this title, 

15 as the Secretary considers appropriate; and 

16 ‘‘(2) adjust the rate of compensation payable to 

17 such veteran under section 1203 of this title accord18 ing to the new disability rating as adjusted under 

19 paragraph (1) and to any adjustment of the schedule 

20 of ratings under section 1155 of this title applicable 

21 to veterans for whom compensation is payable under 

22 this chapter that has occurred since the preceding 

23 assignment of a disability rating to such veteran. 

24 ‘‘(b) FREQUENCY OF REEVALUATIONS AND ADJUST25 MENTS.—The Secretary shall carry out the reevaluations 


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1 and adjustments required by subsection (a) with respect 

2 to a veteran described in that subsection with such fre3 quency as the Secretary considers appropriate. In making 

4 a determination regarding the appropriate frequency of re5 evaluations for a veteran, the Secretary shall be guided 

6 by recommendations made by an examining physician or 

7 other appropriate medical professional who has evaluated 

8 the veteran and by such other factors as the Secretary 

9 considers appropriate. 

10 ‘‘(c) REEVALUATION AT REQUEST OF VETERAN.—At 

11 the request of a veteran receiving compensation under sec12 tion 1201 or 1202 of this title, the Secretary may— 

13 ‘‘(1) reevaluate and adjust, if appropriate, the 

14 disability rating of the veteran as the Secretary con15 siders appropriate; and 

16 ‘‘(2) adjust the rate of compensation payable to 

17 such veteran under section 1203 of this title accord18 ing to the new disability rating as adjusted under 

19 paragraph (1) and to any adjustment of the schedule 

20 of ratings under section 1155 of this title applicable 

21 to veterans for whom compensation is payable under 

22 this chapter that has occurred since the preceding 

23 assignment of a disability rating to such veteran. 


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1 ‘‘§ 1206. Prohibition on duplication of benefits 

2 ‘‘(a) IN GENERAL.—A veteran entitled to compensa3 tion under section 1201 or 1202 of this title is not entitled 

4 to compensation under chapter 11 of this title. 

5 ‘‘(b) PRESERVATION OF ENTITLEMENT UNDER

6 OTHER SYSTEM.—(1)(A) Except as provided in para7 graph (2), any veteran in receipt of compensation under 

8 chapter 11 of this title (other than compensation paid as 

9 a result of a temporary rating of disability) as of the effec10 tive date of the implementation of the enhanced Depart11 ment of Veterans Affairs disability compensation system 

12 (as determined in accordance with section 206 of the 

13 Noble Warrior Act) shall remain entitled to compensation 

14 in accordance with the provisions of chapter 11 of this 

15 title after that date. 

16 ‘‘(B) For provisions relating to the protection of rat17 ings of disability of veterans covered by subparagraph (A), 

18 see section 110(c) of this title. 

19 ‘‘(2)(A) The entitlement to compensation of, and 

20 amount of compensation payable to, a veteran described 

21 in paragraph (1) who files a claim for compensation under 

22 this title on or after the effective date of the implementa23 tion of the enhanced Department of Veterans Affairs dis24 ability compensation system shall be determined in accord25 ance with the facts found under the provisions of section 


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1 1155 of this title and this chapter as such provisions are 

2 in effect on the date of the filing of the claim. 

3 ‘‘(B) The objection of a veteran to a proposed reduc4 tion in rating of service-connected disability or other re5 sponse of a veteran to a proposed adverse action by the 

6 Secretary concerning compensation for a service-connected 

7 disability under chapter 11 of this title shall not be treated 

8 as a claim for purposes of subparagraph (A).’’. 

9 (2) CLERICAL AMENDMENTS.—The table of 

10 chapters at the beginning of title 38, United States 

11 Code, and the beginning of part II of such title, are 

12 each amended by inserting after the item related to 

13 chapter 11 the following new item: 

‘‘12. Compensation and Transition Payments for ServiceConnected Disability ............................................ 1201’’. 

14 (3) DISABILITY EVALUATIONS SUBJECT TO RE15 EVALUATION.—Section 110 of title 38, United 

16 States Code, is amended— 

17 (A) in the first sentence, by striking ‘‘A 

18 rating’’ and inserting ‘‘(a) Except as otherwise 

19 provided in this title, a rating’’; 

20 (B) by designating the second sentence as 

21 subsection (b) and indenting such subsection, as 

22 so designated, two ems from the left margin; 

23 (C) in subsection (b), as so designated, by 

24 striking ‘‘A disability’’ and inserting ‘‘Except as 


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1 otherwise provided in this title, a disability’’; 

2 and 

3 (D) by adding at the end the following new 

4 subsection: 

5 ‘‘(c) The rating of disability assigned to a veteran 

6 who continues to remain entitled to compensation under 

7 chapter 11 of this title after the effective date of the imple8 mentation of the enhanced Department of Veterans Af9 fairs disability compensation system (as determined in ac10 cordance with section 206 of the Noble Warrior Act) by 

11 reason of section 1206(b) of this title may not be reduced 

12 while the veteran continues to remain so entitled, except 

13 upon a showing that such rating was based on fraud.’’. 

14 (4) MATTERS NOT SUBJECT TO REVIEW.—Not15 withstanding any other provision of law, the fol16 lowing matters shall not be subject to review by any 

17 other official or by any court, whether by an action 

18 in the nature of mandamus or otherwise: 

19 (A) Any rate of disability compensation 

20 payable under chapter 12 of title 38, United 

21 States Code (as amended by this subsection), 

22 that is prescribed by the Secretary of Veterans 

23 Affairs for purposes of the proposal under sec24 tion 204(2) . 


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1 (B) Any amount of monthly transition pay2 ments payable under section 1204(b) of title 

3 38, United States Code (as so amended), that 

4 is specified by the Secretary for purposes of the 

5 proposal under section 204(3). 

6 (C) Any amount or duration of rehabilita7 tion transition allowances payable under section 

8 1204(c) of title 38, United States Code (as so 

9 amended), that is specified by the Secretary for 

10 purposes of the proposal under section 204(3). 

11 (5) TREATMENT OF VETERANS WITH PENDING

12 CLAIMS.—In the case of a veteran whose claim for 

13 disability compensation under title 38, United States 

14 Code, is pending an initial decision from the Sec15 retary of Veterans Affairs, or is on appeal (whether 

16 before the Board of Veterans’ Appeals, the United 

17 States Court of Appeals for Veterans Claims, or oth18 erwise), as of the effective date of the implementa19 tion of the enhanced Department of Veterans Affairs 

20 disability compensation system (as determined in ac21 cordance with section 206), the Secretary shall treat 

22 such claim as a claim for compensation payable 

23 under chapter 11 of title 38, United States Code. 

24 (6) EFFECTIVE DATE.—Except as provided in 

25 paragraph (7), this subsection and the amendments 


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1 made by this subsection shall take effect, if at all, 

2 on the effective date of the implementation of the 

3 enhanced Department of Veterans Affairs disability 

4 compensation system as determined in accordance 

5 with section 206. 

6 (7) ANTICIPATION OF IMPLEMENTATION.—The 

7 Secretary of Veterans Affairs shall take appropriate 

8 actions to ensure that this subsection and the 

9 amendments made by this subsection are 

10 implementable on the effective date described in 

11 paragraph (6) in the event of the implementation of 

12 the enhanced Department of Veterans Affairs dis13 ability compensation system on that date. 

14 (c) EXPANDED RETROACTIVITY OF AWARD OF COM15 PENSATION.— 

16 (1) IN GENERAL.—Section 5110(g) of title 38, 

17 United States Code, is amended— 

18 (A) by inserting ‘‘(1)’’ after ‘‘(g)’’; and 

19 (B) by striking the second sentence and in20 serting the following new paragraph: 

21 ‘‘(2) Subject to the limitation in paragraph (1) and 

22 except as provided in paragraph (3), an award or increase 

23 described in paragraph (1) may not be retroactive for 

24 more than one year from the date of application therefore 


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1 or the date of administrative determination of entitlement, 

2 whichever is earlier. 

3 ‘‘(3) Subject to the limitation in paragraph (1), an 

4 award or increase described in that paragraph pursuant 

5 to the amendment to section 1155 of this title or chapter 

6 12 of this title made by section 207 of the Noble Warrior 

7 Act under an application therefor filed during the three8 year period beginning on the effective date of the imple9 mentation of the enhanced Department of Veterans Af10 fairs disability compensation system (as determined in ac11 cordance with section 206 of that Act) may be retroactive 

12 for three years from the date of application or date of ad13 ministrative determination of entitlement, whichever is 

14 earlier.’’. 

15 (2) EFFECTIVE DATE.—The amendments made 

16 by this subsection shall take effect, if at all, on the 

17 effective date of the implementation of the enhanced 

18 Department of Veterans Affairs disability compensa19 tion system as determined in accordance with section 

20 206. 

21 (d) EXPEDITED CLAIMS PROCESSING DURING IM22 PLEMENTATION OF ENHANCED DISABILITY COMPENSA23 TION SYSTEM.— 

24 (1) IN GENERAL.—Effective as of the effective 

25 date of the implementation of the enhanced DepartVerDate Aug 31 2005 02:42 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 ment of Veterans Affairs disability compensation 

2 system as determined in accordance with section 

3 206, the Secretary of Veterans Affairs shall imple4 ment appropriate mechanisms to expedite the proc5 essing of claims anticipated to be submitted to the 

6 Secretary under that system during the three-year 

7 period beginning on the effective date of the imple8 mentation of that system. 

9 (2) ELEMENTS.—The mechanisms implemented 

10 under this subsection shall include the following: 

11 (A) Mechanisms for affording appropriate 

12 priority for processing among the claims sub13 mitted as described in paragraph (1). 

14 (B) Mechanisms for ensuring the appro15 priate allocation of personnel and resources of 

16 the Department of Veterans Affairs in order to 

17 facilitate an expedited processing of such 

18 claims. 

19 (C) Any other mechanisms that the Sec20 retary considers appropriate to facilitate an ex21 pedited processing of such claims. 

22 (3) CONSULTATION IN DEVELOPMENT OF

23 MECHANISMS.—The Secretary shall consult with ap24 propriate representatives of veterans services organiVerDate Aug 31 2005 02:42 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 zations in developing the mechanisms to be imple2 mented under this subsection. 

3 (4) ENHANCED AUTHORITY FOR PROCESSING

4 CLAIMS.— 

5 (A) IN GENERAL.—Subject to subpara6 graph (B), during the five-year period begin7 ning on the effective date of the implementation 

8 of the enhanced Department of Veterans Af9 fairs disability compensation system, the Sec10 retary may waive any provision or limitation of 

11 law applicable to determinations on claims for 

12 compensation for veterans under title 38, 

13 United States Code, if the Secretary determines 

14 that the waiver of such provision or limitation 

15 will further the expedited processing of claims 

16 submitted as described in paragraph (1). 

17 (B) NOTICE AND WAIT.—The Secretary 

18 may not waive a provision or limitation of law 

19 under subparagraph (A) until 30 days after the 

20 date on which the Secretary submits to the 

21 Committee Veterans’ Affairs of the Senate and 

22 the Committee on Veterans’ Affairs of the 

23 House of Representatives a report setting 

24 forth— 


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1 (i) the provision or limitation of law 

2 to be waived and the duration of the waiv3 er; 

4 (ii) a statement of the reasons why 

5 the waiver of the provision or limitation of 

6 law will further the expedited processing of 

7 claims submitted as described in paragraph 

8 (1); and 

9 (iii) an estimate of the time antici10 pated to be required to complete the proc11 essing of claims under the waiver. 

12 SEC. 208. SUPPLEMENTAL SURVIVOR BENEFIT FOR SUR13 VIVORS OF VETERANS RETIRED FOR DIS14 ABILITY AFTER IMPLEMENTATION OF EN15 HANCED DEPARTMENT OF VETERANS AF16 FAIRS DISABILITY COMPENSATION SYSTEM. 

17 (a) SUPPLEMENTAL SURVIVOR BENEFIT.— 

18 (1) IN GENERAL.—Part II of title 38, United 

19 States Code, as amended by section 207(b) of this 

20 Act, is further amended by inserting after chapter 

21 13 the following new chapter: 


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1 ‘‘CHAPTER 14—SUPPLEMENTAL SURVIVOR 

2 BENEFIT FOR SURVIVORS OF VET3 ERANS RETIRED FOR DISABILITY 

4 AFTER IMPLEMENTATION OF EN5 HANCED DEPARTMENT OF VETERANS 

6 AFFAIRS DISABILITY COMPENSATION 

7 SYSTEM 

‘‘Sec. 

‘‘1401. Definition. 

‘‘1402. Election of benefit. 

‘‘1403. Receipt of benefit. 

‘‘1404. Reduction of compensation; termination of reduction. 

‘‘1405. Offset for dependency and indemnity compensation. 

8 ‘‘§ 1401. Definition 

9 ‘‘In this chapter, the term ‘covered veteran’ means 

10 a veteran retired under subchapter II of chapter 61 of title 

11 10 pursuant to section 1206a of that title who is entitled 

12 to compensation for service-connected disability under 

13 chapter 12 of this title. 

14 ‘‘§ 1402. Election of benefit 

15 ‘‘(a) IN GENERAL.—A covered veteran may elect in 

16 accordance with this section to provide a monthly supple17 mental survivor benefit under this chapter to the veteran’s 

18 survivors as follows: 

19 ‘‘(1) The surviving spouse of the veteran. 

20 ‘‘(2) The surviving children of the veteran. 

21 ‘‘(b) ELECTION BY VETERANS AT AWARD OF COM22 PENSATION.—(1) If, at the time of the award of comVerDate Aug 31 2005 02:42 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 pensation for service-connected disability under chapter 12 

2 of this title that qualifies such veteran as a covered vet3 eran, a veteran has a spouse, one or more children, or 

4 both, the veteran shall elect to whom to provide a supple5 mental survivor benefit under this chapter. 

6 ‘‘(2) A veteran may provide the supplemental survivor 

7 benefit referred to in paragraph (1) pursuant to an elec8 tion under this paragraph— 

9 ‘‘(A) if the veteran has only a spouse at the 

10 time of the election, to the surviving spouse of the 

11 veteran; 

12 ‘‘(B) if the veteran has both a spouse and one 

13 or more children at the time of the election— 

14 ‘‘(i) to the surviving spouse of the veteran; 

15 or 

16 ‘‘(ii) to the surviving children of the vet17 eran; or 

18 ‘‘(C) if the veteran is unmarried but has one or 

19 more children at the time of the election, to the sur20 viving children of the veteran. 

21 ‘‘(3)(A) If a veteran described by paragraph (2)(B) 

22 elects pursuant to paragraph (1) to provide a supple23 mental survivor benefit under this chapter to the surviving 

24 children of the veteran, the Secretary shall notify the vet25 eran’s spouse of the election. 


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1 ‘‘(B) A veteran who makes an election described by 

2 subparagraph (A) may later elect instead to provide a sup3 plemental survivor benefit under this chapter to the sur4 viving spouse of the veteran, but only if the veteran sub5 mits the election under this subparagraph to the Secretary 

6 not later than 30 days after the date of the submittal of 

7 the election described by subparagraph (A) to the Sec8 retary. 

9 ‘‘(4)(A) Except as provided in subparagraph (B), an 

10 election pursuant to this subsection shall be effective as 

11 of the first day of the first month after the election is 

12 received by the Secretary. 

13 ‘‘(B) An election pursuant to this subsection that is 

14 described by paragraph (3) shall be effective as of the first 

15 day of the first month that begins more than 30 days after 

16 the election described by paragraph (3)(A) is received by 

17 the Secretary. 

18 ‘‘(5) Except as provided in subsection (c), a veteran 

19 who does not make the election provided in this subsection 

20 at the time described in paragraph (1) may not provide 

21 a supplemental survivor benefit under this chapter. 

22 ‘‘(6) Except as provided in subsections (c), (d), and 

23 (e), an election pursuant to this subsection is irrevocable. 

24 ‘‘(c) ELECTION BY VETERANS NOT MARRIED AT

25 AWARD OF COMPENSATION WHO LATER MARRY.—(1) A 


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1 veteran who is unmarried at the time of the award of com2 pensation for service-connected disability under chapter 12 

3 of this title that qualifies the veteran as a covered veteran 

4 and who later marries may elect to provide a supplemental 

5 survivor benefit under this chapter to the spouse of the 

6 veteran by such marriage. 

7 ‘‘(2) An election pursuant to this subsection shall be 

8 effective only if received by the Secretary not later than 

9 60 days after the date of the marriage concerned. 

10 ‘‘(3) An election pursuant to this subsection shall be 

11 effective as of the first day of the first month after the 

12 date the election is received by the Secretary. 

13 ‘‘(4) An election of a veteran pursuant to this sub14 section supersedes the election, if any, of the veteran de15 scribed in subsection (b)(2)(C). 

16 ‘‘(5) Except as provided in subsection (e), an election 

17 pursuant to this subsection is irrevocable. 

18 ‘‘(d) ELECTION BY VETERANS MARRIED AT AWARD

19 OF COMPENSATION WHO LATER REMARRY.—(1) A vet20 eran who is married at the time of the award of compensa21 tion for service-connected disability under chapter 12 of 

22 this title that qualifies the veteran as a covered veteran, 

23 who made an election provided in subsection (b) at that 

24 time, and who later remarries may elect to provide a supVerDate Aug 31 2005 02:42 Feb 29, 2008 Jkt 069200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 plemental survivor benefit under this chapter to the spouse 

2 of the veteran by such remarriage. 

3 ‘‘(2) An election pursuant to this subsection shall be 

4 effective only if received by the Secretary not later than 

5 60 days after the date of the marriage concerned. 

6 ‘‘(3) An election pursuant to this subsection shall be 

7 effective as of the first day of the first month after the 

8 date the election is received by the Secretary. 

9 ‘‘(4) An election of a veteran pursuant to this sub10 section supersedes the election of the veteran under sub11 section (b). 

12 ‘‘(5) Except as provided in subsection (e), an election 

13 pursuant to this subsection is irrevocable. 

14 ‘‘(e) REVOCATION OF ELECTION OF SPOUSE ELIGI15 BILITY.—(1) A covered veteran who has made an election 

16 under this section to provide a supplemental survivor ben17 efit to the surviving spouse of the veteran may revoke the 

18 election. 

19 ‘‘(2)(A) Except as provided in subparagraph (B), a 

20 veteran may revoke an election under this subsection only 

21 with the concurrence of the veteran’s spouse. 

22 ‘‘(B) A veteran may revoke an election under this 

23 subsection without the concurrence of the veteran’s spouse 

24 if the veteran demonstrates to the satisfaction of the Sec25 retary that— 


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1 ‘‘(i) the whereabouts of the spouse cannot be 

2 determined; or 

3 ‘‘(ii) because of exceptional circumstances, a re4 quirement that the veteran seek the concurrence of 

5 the spouse would be unreasonable. 

6 ‘‘(3) A revocation of an election under this subsection 

7 is irrevocable. 

8 ‘‘(f) FORM OF ELECTIONS.—Any election under this 

9 section (including a revocation of election under subsection 

10 (e)) shall be made in writing. 

11 ‘‘(g) NOTICE REGARDING ELECTIONS.—The Sec12 retary shall take appropriate actions to inform covered 

13 veterans of the elections available to covered veterans 

14 under this subsection, including the procedures and dead15 lines applicable to the making of such elections. 

16 ‘‘§ 1403. Receipt of benefit 

17 ‘‘(a) IN GENERAL.—(1) Effective as of the first day 

18 of the first month after the month in which a covered vet19 eran who has made an election under section 1402 of this 

20 title dies, a monthly supplemental survivor benefit under 

21 this chapter in an amount equal to 55 percent of the 

22 monthly compensation payable to the veteran under sec23 tion 1203(a) of this title at the time of the veteran’s death 

24 shall be payable to the individual or individuals provided 


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1 for in such election in force at the time of the veteran’s 

2 death. 

3 ‘‘(2) Any payment of a supplemental survivor benefit 

4 under this section to the surviving children of a veteran 

5 shall be paid to the surviving children in equal shares. 

6 ‘‘(b) ELIGIBILITY OF SURVIVING SPOUSE.—(1) In 

7 the event of the death of a surviving spouse being paid 

8 a supplemental survivor benefit under subsection (a), the 

9 surviving spouse shall be ineligible for the benefit effective 

10 as of the first day of the first month after the date of 

11 the surviving spouse’s death. 

12 ‘‘(2)(A) In the event a surviving spouse being paid 

13 a supplemental survivor benefit under subsection (a) re14 marries before reaching the age of 55, the surviving 

15 spouse shall be ineligible for the benefit effective as of the 

16 first day of the first month after the date of the surviving 

17 spouse’s remarriage. 

18 ‘‘(B) If the remarriage of a surviving spouse covered 

19 by subparagraph (A) is terminated by the death of the 

20 surviving spouses’s spouse, annulment, or divorce, the eli21 gibility of the surviving spouse for the benefit shall recom22 mence effective as of the first day of the first month after 

23 the date on which the remarriage is so terminated. 

24 ‘‘(3) A surviving spouse who is otherwise eligible for 

25 payment of more than one supplemental survivor benefit 


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1 under subsection (a) based on marriages to more than one 

2 covered veteran shall elect which marriage shall entitle the 

3 surviving spouse to payment of the benefit for purposes 

4 of this chapter. Any election under this paragraph is irrev5 ocable. 

6 ‘‘(c) ELIGIBILITY OF SURVIVING CHILDREN.—(1) In 

7 the event the surviving spouse of a veteran becomes ineli8 gible for payment of a supplemental survivor benefit under 

9 subsection (b), the surviving children of the veteran shall 

10 become eligible for the benefit effective as of the first day 

11 of the first month after the date in which the surviving 

12 spouse becomes so ineligible. 

13 ‘‘(2) In the event the surviving spouse of a veteran 

14 becomes re-eligible for payment of a supplemental survivor 

15 benefit under subsection (b)(2)(B), the surviving children 

16 of the veteran shall be ineligible for the benefit effective 

17 as of the first day of the first month after the date in 

18 which the surviving spouse becomes so re-eligible. 

19 ‘‘(3) In the event of the death of a surviving child 

20 being paid a supplemental survivor benefit, the surviving 

21 child shall be ineligible for the benefit effective as of the 

22 first day of the first month after the surviving child’s 

23 death, and the payment of the benefit to the remaining 

24 surviving children (if any) of the veteran concerned shall 

25 be adjusted accordingly effective as of that day. 


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1 ‘‘§ 1404. Reduction of compensation; termination of 

2 reduction 

3 ‘‘(a) REDUCTION OF COMPENSATION.—Effective as 

4 of the effective date of an election of a covered veteran 

5 under section 1402 of this title to provide a monthly sup6 plemental survivor benefit under this chapter (as deter7 mined in accordance with applicable provisions of section 

8 1402 of this title), the amount of monthly compensation 

9 for service-connected disability otherwise payable to the 

10 veteran under section 1203(a) of this title shall be reduced 

11 by an amount equal to 6.5 percent of the amount of such 

12 monthly compensation. 

13 ‘‘(b) TERMINATION OF REDUCTION IN CONNECTION

14 WITH BENEFIT FOR SURVIVING SPOUSE.—(1) In the case 

15 of a covered veteran who has elected to provide a supple16 mental survivor benefit under this chapter to the surviving 

17 spouse of the veteran, the reduction required by subsection 

18 (a) shall terminate effective as of the first day of the first 

19 month after— 

20 ‘‘(A) the death of the spouse; 

21 ‘‘(B) the revocation of the eligibility of the 

22 spouse for the benefit under section 1402(e) of this 

23 title; or 

24 ‘‘(C) the dissolution of the veteran’s marriage 

25 to the spouse through annulment or divorce. 


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1 ‘‘(2) If after the reduction required by subsection (a) 

2 is terminated under paragraph (1)(C) a veteran elects 

3 under section 1402(d) of this title to provide the benefit 

4 to the surviving spouse of the remarriage covered by such 

5 section 1402(d), the reduction required by subsection (a) 

6 shall recommence effective as of the first day of the first 

7 month after the date of the remarriage, and shall be sub8 ject to subsequent termination in accordance with para9 graph (1). 

10 ‘‘(c) TERMINATION OF REDUCTION IN CONNECTION

11 WITH BENEFIT FOR SURVIVING CHILDREN.—In the case 

12 of a covered veteran who has elected to provide a supple13 mental survivor benefit under this chapter to the surviving 

14 children of the veteran, the reduction required by sub15 section (a) shall terminate effective as of the first day of 

16 the first month after— 

17 ‘‘(1) the date of death of the last child of the 

18 veteran; or 

19 ‘‘(2) the date on which the last of the children 

20 of the veteran is no longer treatable as a child under 

21 section 101 of this title. 

22 ‘‘(d) LIMITATION ON NUMBER OF MONTHS SUBJECT

23 TO REDUCTION.—The total number of months for which 

24 the monthly compensation of a covered veteran is reduced 

25 under subsection (a) may not exceed 360 months. 


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1 ‘‘§ 1405. Offset for dependency and indemnity com2 pensation 

3 ‘‘(a) IN GENERAL.—If an individual eligible for pay4 ment of a monthly supplemental survivor benefit under 

5 this chapter based on the death of a covered veteran is 

6 or becomes entitled to dependency and indemnity com7 pensation under chapter 13 of this title based on the death 

8 of the veteran, the amount of the supplemental survivor 

9 benefit paid the individual under this chapter for a month 

10 is the amount of the benefit otherwise payable to the indi11 vidual under section 1403 of this title for that month 

12 minus the amount of the dependency and indemnity com13 pensation so payable to the individual for that month. 

14 ‘‘(b) EFFECTIVE DATE.—The reduction of benefit of 

15 an individual required by subsection (a) shall be effective 

16 as of the date of the commencement of the payment of 

17 dependency and indemnity compensation to the individual 

18 under chapter 13 of this title. 

19 ‘‘(c) REIMBURSEMENT OF REDUCTION IN COM20 PENSATION.—(1) If as a result of subsection (a) no benefit 

21 otherwise payable to an individual under section 1403 of 

22 this title with respect to a covered veteran is payable to 

23 the individual under this chapter, an amount shall be paid 

24 to the individual equal to the aggregate amount of the re25 duction under section 1404(a) of this title of the monthly 

26 compensation otherwise payable to the veteran. 


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1 ‘‘(2) If as a result of subsection (a) the amount of 

2 monthly benefit otherwise payable to an individual under 

3 section 1403 of this title with respect to a covered veteran 

4 is reduced (other than to zero), an amount shall be paid 

5 to the individual equal to— 

6 ‘‘(A) the aggregate amount of the reduction 

7 under section 1404(a) of this title of the monthly 

8 compensation otherwise payable to the veteran; mul9 tiplied by 

10 ‘‘(B) a number equal to 1 minus an amount 

11 equal to the fraction— 

12 ‘‘(i) whose numerator is the amount of the 

13 monthly benefit payable to the individual under 

14 section 1403 of this title as a result of the re15 duction under subsection (a); and 

16 ‘‘(ii) whose denominator is the amount of 

17 the monthly benefit otherwise payable to the in18 dividual under section 1403 of this title without 

19 regard to the reduction under subsection (a). 

20 ‘‘(3) Any amount payable under this subsection shall 

21 be paid, at the election of the Secretary, in a lump sum 

22 or in such installments as the Secretary shall specify for 

23 purposes of this subsection.’’. 

24 (2) CLERICAL AMENDMENTS.—The tables of 

25 chapters at the beginning of title 38, United States 


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1 Code, and the beginning of part II of such title, as 

2 amended by section 207(b) of this Act, are each fur3 ther amended by inserting after the item relating to 

4 chapter 13 the following new item: 

‘‘14. Supplemental survivor benefit for survivors of veterans retired for disability after implementation of enhanced Department of Veterans 

Affairs disability compensation system ........ 1401’’. 

5 (b) EFFECTIVE DATE.—Except as provided in sub6 section (c), this section and the amendments made by this 

7 section shall take effect, if at all, on the effective date of 

8 the implementation of the enhanced Department of Vet9 erans Affairs disability compensation system as deter10 mined in accordance with section 206. 

11 (c) ANTICIPATION OF IMPLEMENTATION.—The Sec12 retary of Veterans Affairs shall take appropriate actions 

13 to ensure that the amendments made by this section are 

14 implementable on the effective date described in sub15 section (b) in the event of the implementation of the en16 hanced Department of Veterans Affairs disability com17 pensation system on that date. 

Æ 


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