article: SECTION 1. ALTERNATIVE RETIRED PAY RATES FOR MEMBERS OF THE ARMED FORCES WITH A COMBAT-RELATED DISABILITY. (a) Alternative Retired Pay Base for Chapter 71 Retired Pay.-- Section 1401 of title 10, United States Code, is amended by adding at the end the following new subsection: ``(c) Alternative Retired Pay Base for Members With a Combat- Related Disability.--(1) In the case of a member of the armed forces with a combat-related disability who is entitled to monthly retired pay computed using a formula specified in subsection (a), the Secretary concerned shall permit the member to elect to have used in that formula, in lieu of the retired pay base of the member computed under section 1406(b) or 1407 of this title, a retired pay base 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. ``(2) The alternative retired pay base in effect under paragraph (1) for a calendar year shall be adjusted on December 1 of that year in the manner provided by section 1401a(b) of this title for use during the next calendar year. ``(3) In this subsection, the term `combat-related disability' 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.''. (b) Alternative Retired Pay Base for Retired Pay for Non-Regular Service.--Section 12739 of such title is amended by adding at the end the following new subsection: ``(e)(1) In the case of a member of the armed forces with a combat- related disability who is entitled to monthly retired pay computed under subsection (a), the Secretary concerned shall permit the member to elect to have used in paragraph (1) of such subsection, in lieu of the retired pay base of the member computed under section 1406(b) or 1407 of this title, a retired pay base 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. ``(2) The alternative retired pay base in effect under paragraph (1) for a calendar year shall be adjusted on December 1 of that year in the manner provided by section 1401a(b) of this title for use during the next calendar year. ``(3) In this subsection, the term `combat-related disability' 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 amendments 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 retired list after September 11, 2001, except that any recomputation 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. SEC. 2. ALTERNATIVE WARTIME DISABILITY COMPENSATION RATES FOR CERTAIN VETERANS. (a) Alternative Compensation Base for Chapter 11 Wartime Disability Compensation.--Section 1114 of title 38, United States Code, is amended by adding 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 permit the veteran to elect to receive, in lieu of the monthly compensation rate in effect under subsection (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 service-connected disability rating of the veteran. ``(2) For purposes of this subsection, the term `covered service- connected disability' means a service-connected 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 compensation 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.
summary: Directs the Secretary of the military department concerned, in the case of a regular or reserve member of the Armed Forces with a combat-related disability who is entitled to monthly retired pay, to permit such member to elect an alternative retired pay rate based on $2,917, the average monthly salary for high school graduates in the United States. Directs the Secretary of Veterans Affairs, with respect to veterans with service-connected disabilities, to permit such veterans to elect to receive a monthly compensation of $2,917 (in the case of a service-connected disability rated as total) or a percentage of such amount (depending on the percentage rating of the disability).