SEC. 2. RETENTION OF MEMBERS OF THE ARMED FORCES 
WITH COMBAT-RELATED DISABILITIES. 
(a) RETENTION OF MEMBERS.—Section 1209 of title 
10, United States Code, is amended— 
(1) by striking ‘‘Any member of the armed 
forces’’ and inserting ‘‘(b) TRANSFER TO INACTIVE 
STATUS.—Any member of the armed forces’’; and 
(2) by inserting after the section heading the 
following new subsection: 
‘‘(a) RETENTION OF MEMBERS WITH COMBAT-RE-
LATED DISABILITIES.—(1) Notwithstanding any other 
provision of this chapter, a member who would be retired, 
placed on the temporary disability retired list, or sepa-
rated as the result of a combat-related disability may elect, 
instead, to be retained on active service or in an active 
status so long as the member— 
‘‘(A) remains medically able to perform non-
combat-related military occupational specialties or 
duties, regardless of the member’s office, grade, 
rank, or rating; and 
‘‘(B) is not disqualified from performing the 
noncombat-related military occupational specialties 
or duties because of performance, mandatory retire-
ment for age, or other reasons. 
‘‘(2) A member retained on active service or in an 
active status pursuant to this subsection shall be subject 
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to periodic physical examinations, as provided under sec-
tion 1210 of this title for members on the temporary dis-
ability retired list. 
‘‘(3) Action under this subsection shall be taken on 
a fair and equitable basis, with regard being given to the 
probable opportunities for advancement and promotion 
that a member might reasonably have had if the member 
did not have a combat-related disability. 
‘‘(4) In this subsection, the term ‘combat-related dis-
ability’ has the meaning given that term in section 1413a 
of this title, except that, for purposes of qualifying for re-
tention on active service or in an active status, the dis-
ability of a member does not have to be compensable under 
the laws administered by the Secretary of Veterans Af-
fairs.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
1209 of title 10, United States Code, is amended to 
read as follows: 
‘‘§ 1209. Retention in active status or transfer to inac-
tive status list instead of separation or 
retirement’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 61 of such title is 
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amended by striking the item relating to section 
1209 and inserting the following new item: 
‘‘1209. Retention in active status or transfer to inactive status list instead of 
separation or retirement.’’. 
(c) EFFECTIVE DATE.— 
(1) PROSPECTIVE
APPLICATION.—Except as 
provided in paragraph (2), subsection (a) of section 
1209 of title 10, United States Code, as added by 
subsection (a), shall apply to members of the Armed 
Forces who would be retired or separated from the 
Armed Forces after the date of the enactment of 
this Act as the result of a combat-related disability. 
(2) AUTHORITY TO PROVIDE RETROACTIVE AP-
PLICATION.—In the case of a member of the Armed 
Forces who, during the period beginning on Sep-
tember 1, 2001, and ending on the date of the en-
actment of this Act, was retired or separated from 
the Armed Forces as the result of a combat-related 
disability, the Secretary of Defense may permit, on 
a case-by-case basis, the reenlistment or reappoint-
ment of the member in the Armed Forces so that 
the member may perform active service or in an ac-
tive status as provided by subsection (a) of section 
1209 of title 10, United States Code, as added by 
subsection (a). 
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(d) REPORT ON AVAILABLE MILITARY AND CIVILIAN 
POSITIONS FOR WOUNDED WARRIORS.—Not later than 
120 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to Congress a report 
describing the types and numbers of noncombat-related 
military occupational specialties in the Armed Forces and 
civilian employee positions in the Department of Defense 
that are available for members of the Armed Forces who 
would be retired or separated as the result of a combat- 
related disability. 
Æ 
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