http://thomas.loc.gov/cgi-bin/query/F?c110:4:./temp/~c110MKmSsg:e520906:SEC. 641. EXPANSION OF COMBAT-RELATED SPECIAL COMPENSATION ELIGIBILITY.
(a) Expanded Eligibility for Chapter 61 Military Retirees- Subsection (c) of section 1413a of title 10, United States Code, is amended by striking `entitled to retired pay who--' and all that follows and inserting `who--`(1) is entitled to retired pay (other than by reason of section 12731b of this title); and`(2) has a combat-related disability.'.(b) Computation- Paragraph (3) of subsection (b) of such section is amended--(1) by striking `In the case of' and inserting the following:`(A) GENERAL RULE- In the case of'; and(2) by adding at the end the following new subparagraph:`(B) SPECIAL RULE FOR RETIREES WITH FEWER THAN 20 YEARS OF SERVICE- In the case of an eligible combat-related disabled uniformed services retiree who is retired under chapter 61 of this title with fewer than 20 years of creditable service, the amount of the payment under paragraph (1) for any month shall be reduced by the amount (if any) by which the amount of the member's retired pay under chapter 61 of this title exceeds the amount equal to 2 1/2 percent of the member's years of creditable service multiplied by the member's retired pay base under section 1406(b)(1) or 1407 of this title, whichever is applicable to the member.'.(c) Effective Date- The amendments made by this section shall take effect on January 1, 2008, and shall apply to payments for months beginning on or after that date.
the amount of the payment under paragraph (1) for any month shall be reduced by the amount (if any) by which the amount of the member's retired pay under chapter 61 of this title exceeds the amount equal to 2 1/2 percent of the member's years of creditable service multiplied by the member's retired pay base under section 1406(b)(1) or 1407 of this title, whichever is applicable to the member.'.
Should read, "the amount of the payment under paragraph (1) for any month shall not exceed an amount equal to 2 1/2 percent of the member's years of creditable service multiplied by the member's retired pay base under section 1406(b)(1) or 1407 of this title, whichever is applicable to the member".








