August 23, 2008

The Bush administration is preparing a legislative proposal to present to Congress in September that would establish a separate and, under most circumstances, a more generous disability package for service members who are injured in war or while training for war, sources said.

Under the plan, recommended by the Dole-Shalala commission, service members found unfit for duty as a result of combat or combat-training injuries, regardless of the number of years served, would qualify for an immediate lifetime annuity from the Department of Defense.

Annuity amounts would be based on the formula used to calculate regular retired pay: 2.5 percent of basic pay multiplied by years in service. A wounded warrior with two years of service thus would get five percent of basic pay. Likewise, a service member injured in combat training who had served 10 years when found unfit would get 25 percent of basic pay. These members also would be get lifetime TRICARE, the military health and pharmacy plan. Separately they would get disability compensation from the Department of Veterans Affairs for any and all service-connected injuries or ailments.

The legislation is being drafted by DoD and VA officials and they continue to work out critical details.