member is retired or separated because of physical dis-
ability. 
SEC. 4. ELIMINATION OF DISABILITY RATING REQUIRE-
MENT FOR RETIREMENT OF MEMBERS FOR 
DISABILITY. 
(a) MEMBERS ON ACTIVE DUTY FOR MORE THAN 
30 DAYS.—Section 1201(b) of title 10, United States 
Code, is amended— 
(1) by inserting ‘‘and’’ at the end of paragraph 
(1); 
(2) by striking ‘‘; and’’ at the end of paragraph 
(2) and inserting a period; and 
(3) by striking paragraph (3). 
(b) MEMBERS ON ACTIVE DUTY FOR 30 DAYS OR 
LESS.—Section 1204 of title 10, United States Code, is 
amended—— 
(1) by inserting ‘‘and’’ at the end of paragraph 
(2); 
(2) by striking ‘‘; and’’ at the end of paragraph 
(3) and inserting a period; and 
(3) by striking paragraph (4). 
(c) TERMINATION OF SEPARATION OF MEMBERS IN 
LIEU OF RETIREMENT.— 
(1) MEMBERS
ON
ACTIVE
DUTY
FOR
MORE 
THAN 30 DAYS.—Section 1203 of title 10, United 
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States Code, is amended by adding at the end the 
following new subsection: 
‘‘(c) TERMINATION.—After the date of the enactment 
of the Wounded Warriors Commission Implementation Act 
of 2007, the Secretary concerned shall no longer separate 
a member described in section 1201(c) of this title from 
the member’s armed force under the authority of this sec-
tion. Instead, section 1201 of this title shall apply with 
respect to the member.’’. 
(2) MEMBERS ON ACTIVE DUTY FOR 30 DAYS 
OR LESS.—Section 1206 of title 10, United States 
Code, is amended— 
(A) by striking ‘‘Upon’’ and inserting ‘‘(a) 
SEPARATION.—Upon’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(c) TERMINATION.—After the date of the enactment 
of the Wounded Warriors Commission Implementation Act 
of 2007, the Secretary concerned shall no longer separate 
a member otherwise covered by subsection (a) from the 
member’s armed force under the authority of this section. 
Instead, section 1204 of this title shall apply with respect 
to the member.’’. 
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SEC. 5. TRANSITION PAYMENTS TO MEMBERS OF THE 
ARMED FORCES RETIRED FOR COMBAT-RE-
LATED INJURIES. 
(a) TRANSITION PAYMENT ELECTION.—A member of 
the Armed Forces who is retired pursuant to section 1201 
of title 10, United States Code, by reason of a combat- 
related injury, may elect to receive a transition payment 
from the Secretary of Defense under subsection (b) or a 
transition payment from the Secretary of Veterans Affairs 
under subsection (c). 
(b) DEPARTMENT OF DEFENSE TRANSITION PAY-
MENT.—A transition payment under this subsection is a 
monthly payment made by the Secretary of Defense to a 
person described in subsection (a) after the retirement of 
the member. The payments shall be made for the first 
three months beginning on or after the effective date of 
the retirement of the member. The amount of the transi-
tion payment shall be equal to the person’s most recent 
monthly basic pay as calculated under section 201 of title 
37, United States Code. 
(c) DEPARTMENT OF VETERANS AFFAIRS TRANSI-
TION PAYMENT.— 
(1) AVAILABILITY OF TRANSITION PAYMENT.— 
A transition payment under this subsection is a pay-
ment made by the Secretary of Veterans Affairs to 
a person described in subsection (a) who is enrolled 
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in a rehabilitation program under chapter 31 of title 
38, United States Code, during the period in which 
such person is so enrolled. The amount of a payment 
under this paragraph shall be determined pursuant 
to the study conducted under paragraph (2). 
(2) STUDY ON DEPARTMENT OF VETERANS AF-
FAIRS
TRANSITION
PAYMENT
AMOUNT.—By not 
later than 30 days after the date of the enactment 
of this Act, the Secretary of Veterans Affairs shall 
begin a six-month study to determine the appro-
priate amount of the transition payment to be made 
under paragraph (1). Upon completion of the Study, 
the Secretary shall submit to Congress and the 
President a report containing the results of the 
study. 
(d) COMBAT-RELATED INJURY DEFINED.—In this 
section, the term ‘‘combat-related injury’’ means an injury 
or illness incurred in the line of duty in a combat zone 
designated by the Secretary of Defense or attributable to 
the special dangers associated with armed conflict or the 
preparation or training for armed conflict. 
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SEC. 6. DEPARTMENT OF VETERANS AFFAIRS BONUS PAY-
MENTS TO VETERANS IN REHABILITATION 
PROGRAMS. 
(a) BONUS PAYMENTS.—The Secretary of Veterans 
Affairs shall pay to each veteran who is enrolled in a reha-
bilitation program under chapter 31 of title 38, United 
States Code, or another rehabilitation program approved 
by the Secretary an annual bonus payment for each year 
of such rehabilitation program completed by the person. 
(b) AMOUNT.—As part of the study required by sec-
tion 5(c)(2), the Secretary of Veterans Affairs shall also 
determine the amount of the bonus payment to be made 
under subsection (a). In the case of a veteran who receives 
a transition payment under section 5, the maximum ag-
gregate amount of the bonus payments that an individual 
may receive under this section is the amount equal to 25 
percent of the amount of the transition payment elected 
by the individual under subsection (a) of that section. 
(c) STUDY ON BONUS PAYMENTS.—Beginning on the 
date on which the Secretary of Veterans Affairs first 
makes a bonus payment under subsection (a), the Sec-
retary shall conduct a five-year study of the bonus pay-
ments. Upon the completion of the study, the Secretary 
shall submit to Congress and the President a report on 
the study that includes each of the following for the period 
covered by the study: 
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(1) The number of veterans enrolled in a reha-
bilitation program under chapter 31 of title 38, 
United States Code. 
(2) The number of veterans who completed 
such a program. 
(3) The number of veterans who obtained gain-
ful employment after completing such a program. 
(4) A comparison of the average wages earned 
by veterans who complete such a program and the 
average wages of veterans with a service-connected 
disability rated at 20 percent or more which was in-
curred or aggravated in the active, military, air, or 
naval service who do not complete such a program. 
SEC. 7. DEPARTMENT OF VETERANS AFFAIRS DISABILITY 
COMPENSATION. 
(a) PAYMENTS
FOR WARTIME DISABILITY COM-
PENSATION.—Notwithstanding section 1110 of title 38, 
United States Code, a person receiving a transition pay-
ment under section 5 is not entitled to compensation 
under subchapter II of chapter 11 of such title. 
(b) QUALITY-OF-LIFE PAYMENTS.— 
(1) IN GENERAL.—The Secretary of Veterans 
Affairs shall pay to each veteran who was a member 
of the Armed Forces who is retired pursuant to sec-
tion 1201 of title 10, United States Code, by reason 
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of a combat-related injury, as that term is defined 
in section 5(d), a quality-of-life payment to com-
pensate for the non-work related effects of a combat- 
related injury. Such payment shall be in addition to 
any payment to which the person is entitled under 
subchapter II of chapter 11 of title 38, United 
States Code. 
(2) QUALITY-OF-LIFE
PAYMENT
DEFINED.— 
For purposes of this section, the term ‘‘quality-of- 
life payment’’ means the amount of money necessary 
to compensate an individual described in paragraph 
(1) for the negative non-work related effects a serv-
ice-connected disability has on the individual’s life, 
as determined by the Secretary of Veterans Affairs. 
(c) EARNING LOSS PAYMENTS.—The Secretary of 
Veterans Affairs shall pay to each veteran who has re-
ceived a transition payment under section 5 but is no 
longer eligible for such a payment an earning loss payment 
in the amount necessary to compensate the veteran for 
the veteran’s lower earning capacity as a result of the vet-
eran’s combat-related injury, as determined by the Sec-
retary. 
(d) SCHEDULE
FOR
RATING
DISABILITIES.—In 
adopting and applying a schedule of ratings of specific in-
juries or combination of injuries under section 1155 of 
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title 38, United States Code, the Secretary of Veterans 
Affairs shall take into consideration the reduction in the 
quality of life of a veteran with each specific injury or com-
bination of injuries. 
SEC. 8. PRESUMPTION OF SERVICE CONNECTION FOR 
POST-TRAUMATIC STRESS DISORDER. 
For purposes of section 1110 of title 38, United 
States Code, and subject to section 1113 of such title, 
post-traumatic stress disorder in a veteran who served in 
the active military, naval, or air forces in support of a 
contingency operation after October 7, 2001, shall be con-
sidered to have been incurred in or aggravated by such 
service, notwithstanding that there is no record of evidence 
of such illness during the period of such service. 
SEC. 9. EXTENDED BENEFITS UNDER TRICARE FOR PRI-
MARY CAREGIVERS OF MEMBERS OF THE 
UNIFORMED SERVICES WHO INCUR A SERI-
OUS INJURY OR ILLNESS ON ACTIVE DUTY. 
(a) IN GENERAL.—Section 1079(d) of title 10, 
United States Code, is amended— 
(1) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively; and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
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‘‘(2)(A) Subject to such terms, conditions, and excep-
tions as the Secretary of Defense considers appropriate, 
the program of extended benefits for eligible dependents 
under this subsection shall include extended benefits for 
the primary caregivers of members of the uniformed serv-
ices who incur a serious injury or illness on active duty. 
In addition to the extended benefits described in sub-
section (e), such extended benefits may include aide and 
attendant care. 
‘‘(B) The Secretary of Defense shall prescribe in reg-
ulations the individuals who shall be treated as the pri-
mary caregivers of a member of the uniformed services 
for purposes of this paragraph. 
‘‘(C) For purposes of this section, a serious injury 
or illness, with respect to a member of the uniformed serv-
ices, is an injury or illness that may render the member 
medically unfit to perform the duties of the member’s of-
fice, grade, rank, or rating and that renders a member 
of the uniformed services dependant upon a caregiver.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on January 1, 2008. 
SEC. 10. FAMILY MEDICAL LEAVE ACT. 
(a) SERVICEMEMBER FAMILY LEAVE UNDER THE 
FAMILY AND MEDICAL LEAVE ACT.— 
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(1) DEFINITIONS.—Section 101 of the Family 
and Medical Leave Act of 1993 (29 U.S.C. 2611) is 
amended by adding at the end the following: 
‘‘(14) ACTIVE DUTY.—The term ‘active duty’ 
means duty under a call or order to active duty 
under a provision of law referred to in section 
101(a)(13)(B) of title 10, United States Code. 
‘‘(15) COVERED
SERVICEMEMBER.—The term 
‘covered servicemember’ means a member of the 
Armed Forces, including a member of the National 
Guard or a Reserve, who is undergoing medical 
treatment, recuperation, or therapy, is otherwise in 
medical hold or medical holdover status, or is other-
wise on the temporary disability retired list, for a se-
rious injury or illness. 
‘‘(16) MEDICAL HOLD OR MEDICAL HOLDOVER 
STATUS.—The term ‘medical hold or medical hold-
over status’ means— 
‘‘(A) the status of a member of the Armed 
Forces, including a member of the National 
Guard or a Reserve, assigned or attached to a 
military hospital for medical care; and 
‘‘(B) the status of a member of a reserve 
component of the Armed Forces who is sepa-
rated, whether pre-deployment or post-deploy-
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ment, from the member’s unit while in need of 
health care based on a medical condition identi-
fied while the member is on active duty in the 
Armed Forces. 
‘‘(17) NEXT OF KIN.—The term ‘next of kin’, 
used with respect to an individual, means the near-
est blood relative of that individual. 
‘‘(18) SERIOUS INJURY OR ILLNESS.—The term 
‘serious injury or illness’, in the case of a member 
of the Armed Forces, means an injury or illness in-
curred by the member in line of duty on active duty 
in the Armed Forces that may render the member 
medically unfit to perform the duties of the mem-
ber’s office, grade, rank, or rating.’’. 
(2) ENTITLEMENT TO LEAVE.—Section 102(a) 
of such Act (29 U.S.C. 2612(a)) is amended by add-
ing at the end the following: 
‘‘(3) SERVICEMEMBER FAMILY LEAVE.—Subject 
to section 103, an eligible employee who is the 
spouse, son, daughter, parent, or next of kin of a 
covered servicemember shall be entitled to a total of 
26 workweeks of leave during a 12-month period to 
care for the servicemember. The leave described in 
this paragraph shall only be available during a single 
12-month period. 
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