To amend title 10, United States Code, to extend to additional military retirees with service-connected disabilities the special compensation authority provided for certain retirees with combat-related disabilities.

Removes the requirement that a service-connected military retiree's disability must be combat-related in order for such retiree to be eligible for special compensation through the Department of Defense.

Reduces from 60 to 50 percent the disability rating required in order to be eligible for such compensation.