H. R. 1585—461 
‘‘§ 1554a. Review of separation with disability rating of 20 
percent disabled or less 
‘‘(a) IN GENERAL.—(1) The Secretary of Defense shall establish 
within the Office of the Secretary of Defense a board of review 
to review the disability determinations of covered individuals by 
Physical Evaluation Boards. The board shall be known as the 
‘Physical Disability Board of Review’. 
‘‘(2) The Physical Disability Board of Review shall consist of 
not less than three members appointed by the Secretary. 
‘‘(b) COVERED INDIVIDUALS.—For purposes of this section, cov-
ered individuals are members and former members of the armed 
forces who, during the period beginning on September 11, 2001, 
and ending on December 31, 2009— 
‘‘(1) are separated from the armed forces due to unfitness 
for duty due to a medical condition with a disability rating 
of 20 percent disabled or less; and 
‘‘(2) are found to be not eligible for retirement. 
‘‘(c) REVIEW.—(1) Upon the request of a covered individual, 
or a surviving spouse, next of kin, or legal representative of a 
covered individual, the Physical Disability Board of Review shall 
review the findings and decisions of the Physical Evaluation Board 
with respect to such covered individual. Subject to paragraph (3), 
upon its own motion, the Physical Disability Board of Review may 
review the findings and decisions of the Physical Evaluation Board 
with respect to a covered individual. 
‘‘(2) The review by the Physical Disability Board of Review 
under paragraph (1) shall be based on the records of the armed 
force concerned and such other evidence as may be presented to 
the Physical Disability Board of Review. A witness may present 
evidence to the Board by affidavit or by any other means considered 
acceptable by the Secretary of Defense. 
‘‘(3) If the Physical Disability Board of Review proposes to 
review, upon its own motion, the findings and decisions of the 
Physical Evaluation Board with respect to a covered individual, 
the Physical Disability Board of Review shall notify the covered 
individual, or a surviving spouse, next of kin, or legal representative 
of the covered individual, of the proposed review and obtain the 
consent of the covered individual or a surviving spouse, next of 
kin, or legal representative of the covered individual before pro-
ceeding with the review. 
‘‘(4) With respect to any review by the Physical Disability 
Board of Review of the findings and decisions of the Physical 
Evaluation Board with respect to a covered individual, whether 
initiated at the request of the covered individual or a surviving 
spouse, next of kin, or legal representative of the covered individual 
or initiated by the Physical Disability Board of Review, the Physical 
Disability Board of Review shall notify the covered individual or 
a surviving spouse, next of kin, or legal representative of the covered 
individual that, as a result of the request or consent, the covered 
individual or a surviving spouse, next of kin, or legal representative 
of the covered individual may not seek relief from the Board for 
Correction of Military Records operated by the Secretary concerned. 
‘‘(d) AUTHORIZED RECOMMENDATIONS.—The Physical Disability 
Board of Review may, as a result of its findings under a review 
under subsection (c), recommend to the Secretary concerned the 
following (as applicable) with respect to a covered individual:
H. R. 1585—462 
‘‘(1) No recharacterization of the separation of such indi-
vidual or modification of the disability rating previously 
assigned such individual. 
‘‘(2) The recharacterization of the separation of such indi-
vidual to retirement for disability. 
‘‘(3) The modification of the disability rating previously 
assigned such individual by the Physical Evaluation Board 
concerned, which modified disability rating may not be a reduc-
tion of the disability rating previously assigned such individual 
by that Physical Evaluation Board. 
‘‘(4) The issuance of a new disability rating for such indi-
vidual. 
‘‘(e) CORRECTION OF MILITARY RECORDS.—(1) The Secretary con-
cerned may correct the military records of a covered individual 
in accordance with a recommendation made by the Physical Dis-
ability Board of Review under subsection (d). Any such correction 
may be made effective as of the effective date of the action taken 
on the report of the Physical Evaluation Board to which such 
recommendation relates. 
‘‘(2) In the case of a member previously separated pursuant 
to the findings and decision of a Physical Evaluation Board together 
with a lump-sum or other payment of back pay and allowances 
at separation, the amount of pay or other monetary benefits to 
which such member would be entitled based on the member’s mili-
tary record as corrected shall be reduced to take into account 
receipt of such lump-sum or other payment in such manner as 
the Secretary of Defense considers appropriate. 
‘‘(3) If the Physical Disability Board of Review makes a rec-
ommendation not to correct the military records of a covered indi-
vidual, the action taken on the report of the Physical Evaluation 
Board to which such recommendation relates shall be treated as 
final as of the date of such action. 
‘‘(f) REGULATIONS.—(1) This section shall be carried out in 
accordance with regulations prescribed by the Secretary of Defense. 
‘‘(2) The regulations under paragraph (1) shall specify reason-
able deadlines for the performance of reviews required by this 
section. 
‘‘(3) The regulations under paragraph (1) shall specify the effect 
of a determination or pending determination of a Physical Evalua-
tion Board on considerations by boards for correction of military 
records under section 1552 of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 79 of such title is amended by inserting 
after the item relating to section 1554 the following new item: 
‘‘1554a. Review of separation with disability rating of 20 percent disabled or less.’’. 
(b) IMPLEMENTATION.—The Secretary of Defense shall establish 
the board of review required by section 1554a of title 10, United 
States Code (as added by subsection (a)), and prescribe the regula-
tions required by such section, not later than 90 days after the 
date of the enactment of this Act. 
SEC. 1644. AUTHORIZATION OF PILOT PROGRAMS TO IMPROVE THE 
DISABILITY EVALUATION SYSTEM FOR MEMBERS OF THE 
ARMED FORCES. 
(a) PILOT PROGRAMS.—
H. R. 1585—463 
(1) PROGRAMS
AUTHORIZED.—For the purposes set forth 
in subsection (c), the Secretary of Defense may establish and 
conduct pilot programs with respect to the system of the Depart-
ment of Defense for the evaluation of the disabilities of members 
of the Armed Forces who are being separated or retired from 
the Armed Forces for disability under chapter 61 of title 10, 
United States Code (in this section referred to as the ‘‘disability 
evaluation system’’). 
(2) TYPES OF PILOT PROGRAMS.—In carrying out this section, 
the Secretary of Defense may conduct one or more of the 
pilot programs described in paragraphs (1) through (3) of sub-
section (b) or such other pilot programs as the Secretary of 
Defense considers appropriate. 
(3) CONSULTATION.—In establishing and conducting any 
pilot program under this section, the Secretary of Defense shall 
consult with the Secretary of Veterans Affairs. 
(b) SCOPE OF PILOT PROGRAMS.— 
(1) DISABILITY
DETERMINATIONS
BY
DOD
UTILIZING
VA 
ASSIGNED DISABILITY RATING.—Under one of the pilot programs 
authorized by subsection (a), for purposes of making a deter-
mination of disability of a member of the Armed Forces under 
section 1201(b) of title 10, United States Code, for the retire-
ment, separation, or placement of the member on the temporary 
disability retired list under chapter 61 of such title, upon a 
determination by the Secretary of the military department con-
cerned that the member is unfit to perform the duties of the 
member’s office, grade, rank, or rating because of a physical 
disability as described in section 1201(a) of such title— 
(A) the Secretary of Veterans Affairs may— 
(i) conduct an evaluation of the member for phys-
ical disability; and 
(ii) assign the member a rating of disability in 
accordance with the schedule for rating disabilities 
utilized by the Secretary of Veterans Affairs based 
on all medical conditions (whether individually or 
collectively) that render the member unfit for duty; 
and 
(B) the Secretary of the military department concerned 
may make the determination of disability regarding the 
member utilizing the rating of disability assigned under 
subparagraph (A)(ii). 
(2) DISABILITY
DETERMINATIONS
UTILIZING
JOINT
DOD/VA 
ASSIGNED DISABILITY RATING.—Under one of the pilot programs 
authorized by subsection (a), in making a determination of 
disability of a member of the Armed Forces under section 
1201(b) of title 10, United States Code, for the retirement, 
separation, or placement of the member on the temporary dis-
ability retired list under chapter 61 of such title, the Secretary 
of the military department concerned may, upon determining 
that the member is unfit to perform the duties of the member’s 
office, grade, rank, or rating because of a physical disability 
as described in section 1201(a) of such title— 
(A) provide for the joint evaluation of the member 
for disability by the Secretary of the military department 
concerned and the Secretary of Veterans Affairs, including 
the assignment of a rating of disability for the member