1401a(b) of this title for use during the next calendar 
year. 
‘‘(3) In this subsection, the term ‘combat-related dis-
ability’ means a disability that is compensable under the 
laws administered by the Secretary of Veterans Affairs 
and that— 
‘‘(A) is attributable to an injury for which the 
member was awarded the Purple Heart; or 
‘‘(B) was incurred (as determined under criteria 
prescribed by the Secretary of Defense for purposes 
of section 1413a of this title) as a direct result of 
armed conflict.’’. 
(c) APPLICATION OF AMENDMENTS.—The amend-
ments made by subsections (a) and (b) shall apply with 
respect to members of the Armed Forces who retired or 
whose names were placed on the temporary disability re-
tired list after September 11, 2001, except that any re-
computation of the retired pay for a member on account 
of such amendments who retired or whose name was 
placed on the temporary disability retired list before the 
date of the enactment of this Act shall be effective only 
for months beginning after the date of the enactment of 
this Act. 
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SEC. 2. ALTERNATIVE WARTIME DISABILITY COMPENSA-
TION RATES FOR CERTAIN VETERANS. 
(a) ALTERNATIVE COMPENSATION BASE FOR CHAP-
TER 11 WARTIME DISABILITY COMPENSATION.—Section 
1114 of title 38, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(t)(1) In the case of a veteran— 
‘‘(A) having a covered service-connected 
disability rated as total, the Secretary shall per-
mit the veteran to elect to receive, in lieu of the 
monthly compensation rate in effect under sub-
section (j), a monthly compensation equal to 
$2,917, which represents the average monthly 
salary for high school graduates in the United 
States, as determined by the Census Bureau for 
2006; and 
‘‘(B) having a covered service-connected 
disability rated at a percentage other than total, 
the Secretary shall permit the veteran to elect 
to receive, in lieu of the monthly compensation 
rate in effect under subsections (a) through (i), 
as applicable, a monthly compensation equal to 
the amount that is the percentage of $2,917 
that corresponds to the percentage of the serv-
ice-connected disability rating of the veteran. 
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‘‘(2) For purposes of this subsection, the term ‘cov-
ered service-connected disability’ means a service-con-
nected disability that— 
‘‘(A) is attributable to an injury for which the 
veteran was awarded the Purple Heart; or 
‘‘(B) was incurred (as determined under criteria 
prescribed by the Secretary of Defense for purposes 
of section 1413a of title 10) as a direct result of 
armed conflict.’’. 
(b) APPLICATION OF AMENDMENT.—The amendment 
made by subsection (a) shall apply with respect to veterans 
who became eligible to receive compensation under section 
1110 of title 38, United States Code, after September 11, 
2001, except that any recomputation of disability com-
pensation for a veteran on account of such an amendment 
who so became eligible before the date of the enactment 
of this Act shall be effective only for months beginning 
after the date of the enactment of this Act. 
Æ 
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