To provide alternative retired pay rates under title 10, United States Code, and alternative disability compensation rates under title 38, United States Code, for members of the Armed Forces with a combat-related disability, with such rates based on the average monthly salary for high school graduates in the United States, and for other purposes.

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).