Chapter 61It sounds like this is practically under Bush's pen for the signing...
Basically, this is for active duty military service members that were medically retired before serving a full 20 years (in which case you would qualify for longevity retirement/pension benefits) and your medical retirement rating is 30% or more. Most people in this situation submit a claim to the Veterans Administration (VA) and most likely get a higher claim percentage. When you do this you are basically giving up the "retirement" pay from the military.
What this update will do is allow people in this situation to collect both their VA disability compensation AND the military "retirement" money.
It's not law yet but as I find out more I'll post it. From what I've been hearing it's pretty likely this will get signed.
ETA: I had this cleared up for me on
www.veteransresources.org. This is a
great forum to get questions answered about benefits and other veteran related information. There are a LOT of knowledgeable people on there and you can a question answered within a day. I would highly recommend joining if you have any questions, doubts, etc.