H. R. 1585—464 
in accordance with the schedule for rating disabilities uti-
lized by the Secretary of Veterans Affairs based on all 
medical conditions (whether individually or collectively) 
that render the member unfit for duty; and 
(B) make the determination of disability regarding the 
member utilizing the rating of disability assigned under 
subparagraph (A). 
(3) ELECTRONIC CLEARING HOUSE.—Under one of the pilot 
programs authorized by subsection (a), the Secretary of Defense 
may establish and operate a single Internet website for the 
disability evaluation system of the Department of Defense that 
enables participating members of the Armed Forces to fully 
utilize such system through the Internet, with such Internet 
website to include the following: 
(A) The availability of any forms required for the utili-
zation of the disability evaluation system by members of 
the Armed Forces under the system. 
(B) Secure mechanisms for the submission of such 
forms by members of the Armed Forces under the system, 
and for the tracking of the acceptance and review of any 
forms so submitted. 
(C) Secure mechanisms for advising members of the 
Armed Forces under the system of any additional informa-
tion, forms, or other items that are required for the accept-
ance and review of any forms so submitted. 
(D) The continuous availability of assistance to mem-
bers of the Armed Forces under the system (including 
assistance through the caseworkers assigned to such mem-
bers of the Armed Forces) in submitting and tracking such 
forms, including assistance in obtaining information, forms, 
or other items described by subparagraph (C). 
(E) Secure mechanisms to request and receive per-
sonnel files or other personnel records of members of the 
Armed Forces under the system that are required for 
submission 
under 
the 
disability 
evaluation 
system, 
including the capability to track requests for such files 
or records and to determine the status of such requests 
and of responses to such requests. 
(4) OTHER PILOT PROGRAMS.—The pilot programs author-
ized by subsection (a) may also provide for the development, 
evaluation, and identification of such practices and procedures 
under the disability evaluation system as the Secretary con-
siders appropriate for purposes set forth in subsection (c). 
(c) PURPOSES.—A pilot program established under subsection 
(a) may have one or more of the following purposes: 
(1) To provide for the development, evaluation, and identi-
fication of revised and improved practices and procedures under 
the disability evaluation system in order to— 
(A) reduce the processing time under the disability 
evaluation system of members of the Armed Forces who 
are likely to be retired or separated for disability, and 
who have not requested continuation on active duty, 
including, in particular, members who are severely 
wounded; 
(B) identify and implement or seek the modification 
of statutory or administrative policies and requirements 
applicable to the disability evaluation system that—
H. R. 1585—465 
(i) are unnecessary or contrary to applicable best 
practices of civilian employers and civilian healthcare 
systems; or 
(ii) otherwise result in hardship, arbitrary, or 
inconsistent outcomes for members of the Armed 
Forces, or unwarranted inefficiencies and delays; 
(C) eliminate material variations in policies, interpreta-
tions, and overall performance standards among the mili-
tary departments under the disability evaluation system; 
and 
(D) determine whether it enhances the capability of 
the Department of Veterans Affairs to receive and deter-
mine claims from members of the Armed Forces for com-
pensation, pension, hospitalization, or other veterans bene-
fits. 
(2) In conjunction with the findings and recommendations 
of applicable Presidential and Department of Defense study 
groups, to provide for the eventual development of revised 
and improved practices and procedures for the disability evalua-
tion system in order to achieve the objectives set forth in 
paragraph (1). 
(d) UTILIZATION OF RESULTS IN UPDATES OF COMPREHENSIVE 
POLICY ON CARE, MANAGEMENT, AND TRANSITION OF RECOVERING 
SERVICE MEMBERS.—The Secretary of Defense and the Secretary 
of Veterans Affairs, acting jointly, may incorporate responses to 
any findings and recommendations arising under the pilot programs 
conducted under subsection (a) in updating the comprehensive 
policy on the care and management of covered service members 
under section 1611(a)(4). 
(e) CONSTRUCTION WITH OTHER AUTHORITIES.— 
(1) IN GENERAL.—Subject to paragraph (2), in carrying out 
a pilot program under subsection (a)— 
(A) the rules and regulations of the Department of 
Defense and the Department of Veterans Affairs relating 
to methods of determining fitness or unfitness for duty 
and disability ratings for members of the Armed Forces 
shall apply to the pilot program only to the extent provided 
in the report on the pilot program under subsection (g)(1); 
and 
(B) the Secretary of Defense and the Secretary of Vet-
erans Affairs may waive any provision of title 10, 37, 
or 38, United States Code, relating to methods of deter-
mining fitness or unfitness for duty and disability ratings 
for members of the Armed Forces if the Secretaries deter-
mine in writing that the application of such provision would 
be inconsistent with the purpose of the pilot program. 
(2) LIMITATION.—Nothing in paragraph (1) shall be con-
strued to authorize the waiver of any provision of section 1216a 
of title 10, United States Code, as added by section 1642 of 
this Act. 
(f) DURATION.—Each pilot program conducted under subsection 
(a) shall be completed not later than one year after the date of 
the commencement of such pilot program under that subsection. 
(g) REPORTS.— 
(1) INITIAL REPORT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the appropriate committees of Congress a report
H. R. 1585—466 
on each pilot program that has been commenced as of that 
date under subsection (a). The report shall include— 
(A) a description of the scope and objectives of the 
pilot program; 
(B) a description of the methodology to be used under 
the pilot program to ensure rapid identification under such 
pilot program of revised or improved practices under the 
disability evaluation system in order to achieve the objec-
tives set forth in subsection (c)(1); and 
(C) a statement of any provision described in subsection 
(e)(1)(B) that will not apply to the pilot program by reason 
of a waiver under that subsection. 
(2) INTERIM REPORT.—Not later than 180 days after the 
date of the submittal of the report required by paragraph 
(1) with respect to a pilot program, the Secretary shall submit 
to the appropriate committees of Congress a report describing 
the current status of the pilot program. 
(3) FINAL REPORT.—Not later than 90 days after the comple-
tion of all of the pilot programs conducted under subsection 
(a), the Secretary shall submit to the appropriate committees 
of Congress a report setting forth a final evaluation and assess-
ment of the pilot programs. The report shall include such 
recommendations for legislative or administrative action as the 
Secretary considers appropriate in light of such pilot programs. 
SEC. 1645. REPORTS ON ARMY ACTION PLAN IN RESPONSE TO DEFI-
CIENCIES IN THE ARMY PHYSICAL DISABILITY EVALUA-
TION SYSTEM. 
(a) REPORTS REQUIRED.—Not later than June 1, 2008, and 
June 1, 2009, the Secretary of Defense shall submit to the congres-
sional defense committees a report on the implementation of correc-
tive measures by the Department of Defense with respect to the 
Physical Disability Evaluation System (PDES) in response to the 
following: 
(1) The report of the Inspector General of the Army on 
that system of March 6, 2007. 
(2) The report of the Independent Review Group on 
Rehabilitation Care and Administrative Processes at Walter 
Reed Army Medical Center and National Naval Medical Center. 
(3) The report of the Department of Veterans Affairs Task 
Force on Returning Global War on Terror Heroes. 
(b) ELEMENTS OF REPORT.—Each report under subsection (a) 
shall include current information on the following: 
(1) The total number of cases, and the number of cases 
involving combat disabled service members, pending resolution 
before the Medical and Physical Disability Evaluation Boards 
of the Army, including information on the number of members 
of the Army who have been in a medical hold or holdover 
status for more than each of 100, 200, and 300 days. 
(2) The status of the implementation of modifications to 
disability evaluation processes of the Department of Defense 
in response to the following: 
(A) The report of the Inspector General on such proc-
esses dated March 6, 2007. 
(B) The report of the Independent Review Group on 
Rehabilitation Care and Administrative Processes at
H. R. 1585—467 
Walter Reed Army Medical Center and National Naval 
Medical Center. 
(C) The report of the Department of Veterans Affairs 
Task Force on Returning Global War on Terror Heroes. 
(c) POSTING
ON INTERNET.—Not later than 24 hours after 
submitting a report under subsection (a), the Secretary shall post 
such report on the Internet website of the Department of Defense 
that is available to the public. 
SEC. 1646. ENHANCEMENT OF DISABILITY SEVERANCE PAY FOR MEM-
BERS OF THE ARMED FORCES. 
(a) IN GENERAL.—Section 1212 of title 10, United States Code, 
is amended— 
(1) in subsection (a)(1), by striking ‘‘his years of service, 
but not more than 12, computed under section 1208 of this 
title’’ in the matter preceding subparagraph (A) and inserting 
‘‘the member’s years of service computed under section 1208 
of this title (subject to the minimum and maximum years 
of service provided for in subsection (c))’’; 
(2) by redesignating subsection (c) as subsection (d); and 
(3) by inserting after subsection (b) the following new sub-
section (c): 
‘‘(c)(1) The minimum years of service of a member for purposes 
of subsection (a)(1) shall be as follows: 
‘‘(A) Six years in the case of a member separated from 
the armed forces for a disability incurred in line of duty in 
a combat zone (as designated by the Secretary of Defense 
for purposes of this subsection) or incurred during the perform-
ance of duty in combat-related operations as designated by 
the Secretary of Defense. 
‘‘(B) Three years in the case of any other member. 
‘‘(2) The maximum years of service of a member for purposes 
of subsection (a)(1) shall be 19 years.’’. 
(b) NO DEDUCTION FROM COMPENSATION OF SEVERANCE PAY 
FOR DISABILITIES INCURRED IN COMBAT ZONES.—Subsection (d) of 
such section, as redesignated by subsection (a)(2) of this section, 
is further amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; 
(2) by striking the second sentence; and 
(3) by adding at the end the following new paragraphs: 
‘‘(2) No deduction may be made under paragraph (1) in the 
case of disability severance pay received by a member for a disability 
incurred in line of duty in a combat zone or incurred during perform-
ance of duty in combat-related operations as designated by the 
Secretary of Defense. 
‘‘(3) No deduction may be made under paragraph (1) from 
any death compensation to which a member’s dependents become 
entitled after the member’s death.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act, and 
shall apply with respect to members of the Armed Forces separated 
from the Armed Forces under chapter 61 of title 10, United States 
Code, on or after that date.