To amend title 37, United States Code, to require the phased recovery of overpayments of pay and allowances made to members of the uniformed services, to delay the start of overpayment recovery from members who are wounded or injured, or who incur an illness, in a combat operation or combat zone, and for other purposes.

Requires the phased recovery of overpayments of pay and allowances made to a member of the U.S. uniformed services to not exceed 20% of the member's pay per month, if the overpayment was made through no fault of the member.

Delays recovery of pay and allowance overpayments to a member recovering from a wound, injury, or illness incurred in a combat operation or combat zone while in the line of duty until after the end of the 90-day period beginning on the date on which the member is notified of the overpayment.