DoDI 1241.2
5.2.8. Establish procedures to ensure that:
5.2.8.1. Pay and allowances are not terminated due to administrative oversight.
5.2.8.2. Medical treatment for an injury, illness, or disease incurred or aggravated in the line of duty is not delayed because of administrative requirements.
5.2.8.3. Cases that warrant processing through the Disability Evaluation System are referred for processing without delay.
5.2.8.4. Pay and allowances do not continue under this Instruction after the member has been found fit for duty, except as provided in subparagraph 6.2.1.2.1.,below, or the member has been separated or retired.
5.2.9. Promulgate regulations to implement the policies and procedures prescribed in this Instruction.
6.2. Pay and Allowances Entitlement
6.2.1. A member of the Reserve component who incurs or aggravates an injury, illness, or disease in the line of duty is entitled to pay and allowances, and travel and transportation incident to medical and/or dental care, in accordance with 37 U.S.C.
204 and 206, and DoD 7000.14-R, Volume 7A (references (c) and (d)). The amount of pay and allowance authorized for the member is determined in accordance with table 57-3 of reference (d).
6.2.1.1. Member Unable to Perform Military Duties
6.2.1.1.1. A Reserve component member who is unable to perform military duties, as determined by the Secretary concerned, due to an injury, illness, or disease incurred or aggravated in the line of duty is entitled to full pay and allowances, including all incentive and special pays to which entitled, if otherwise eligible, less any earned income as provided under 37 U.S.C. 204(g) (reference (c)) and DoD 7000.14-R, Volume 7A (reference (d)). This has been commonly referred to as incapacitation pay.
6.2.1.1.2. A member authorized pay and allowances under Section204(g) of reference (c) shall not be allowed to attend inactive duty training periods or to acquire retirement points for performing inactive duty training. However, a member may earn retirement points in order to satisfy the requirements for a qualifying year of service by completing correspondence courses approved by the Secretary concerned.
6.2.1.2. Member Able to Perform Military Duties
6.2.1.2.1. A Reserve component member who is able to perform military duties, as determined by the Secretary concerned, but demonstrates a loss of earned income as a result of an injury, illness, or disease incurred or aggravated in the line of duty is entitled to pay and allowances, including all incentive and special pay to which entitled, if otherwise eligible, but not to exceed the amount of the demonstrated loss of earned income or the amount equal to that specified in subparagraph 6.2.2., below, whichever is less.
6.2.1.2.2. The Assistant Secretary of Defense for Reserve Affairs shall be provided a copy of the approval notice for payment of pay and allowances in excess of 24 months under this subparagraph.
6.2.2. Maximum Pay Entitlement. The total amount of pay and allowances authorized under Sections 204(g) or 204(h) of reference (c) and compensation under Section 206(a) of reference (c) for a member who is entitled to such pay shall not exceed the amount of pay and allowances provided by law or regulation for a member of a Regular component of a Uniformed Service of corresponding grade and length of service for that period as provided in Section 204(i) of reference (c).
6.3. Duration of Entitlements
6.3.1. Healthcare. Medical and dental care authorized under this Instruction shall be provided until the member is found fit for military duty, or the injury, illness, or disease cannot be materially improved by further hospitalization or treatment and the member has been separated or retired as the result of a Disability Evaluation System determination as provided in DoD Directive 1332.18 and DoD Instruction 1332.38 (references (e) and (f)).
6.3.2. Pay and Allowances. Pay and allowances under this Instruction shall be paid only during the period a member remains not fit for military duty or demonstrates a loss of earned income as a result of an injury, illness, or disease incurred or aggravated in the line of duty. Payment in any particular case may not be made for more than 6 months without review of the case by the Secretary concerned to ensure that continuation of military pay and allowances is warranted under this Instruction, and to determine whether the member should be referred to the Disability Evaluation System. Such a review shall be made every 6 months.
6.3.2.1. A member who remains not fit to perform military duty 1 year after the initial date when the injury, illness, or disease was first incurred or aggravated shall be referred to the Disability Evaluation System if the member is not projected to be fit for duty within the next 6 months. Enclosure 3, Part 1 (E3.P1.6.1.) of reference (f) prescribes the standard for referring a case to the Disability Evaluation System.
6.3.2.2. In making the determination whether pay and allowances should continue beyond the initial 6 months in the case of a member described in subparagraph 6.2.1.2.1., above, the Secretary concerned shall consider if the member has resumed his or her civilian occupation, undertaken a new position in the same occupation, or taken a position in a new occupation. These factors are to help guide the Secretary in determining if it is in the interest of fairness and equity to continue benefits under 37 U.S.C. 204(h) (reference (c)).
6.3.3. Termination of Entitlements. The member's entitlement to healthcare and pay and allowances under this Instruction shall terminate on the date that one of the following actions occurs:
6.3.3.1. The member is found fit for duty, except in the case of a member covered under subparagraph 6.2.1.2.1., above.
6.3.3.2. The member no longer demonstrates a loss of earned income in the case of a member covered under subparagraphs 6.2.1.2.1., above, unless subparagraph 6.3.3.3. or 6.3.3.4., below, applies.
6.3.3.3. The member is separated or retired.
6.3.3.4. The Secretary concerned determines that it is no longer in the
interest of fairness and equity to continue pay and allowances under 37 U.S.C. 204(g) or
204(h) (reference (c)).
6.6.3.2. A Reserve component member on active duty under a call or order to active duty specifying a period of 31 days or more, who incurs or aggravates an injury, illness, or disease in the line of duty shall, with the member's consent, be continued on active duty upon the expiration of call or order to active duty until the member is determined fit for duty or the member is separated or retired as a result of a Disability Evaluation System determination.
DoDI 1332.38
22 ENCLOSURE 3 PART 2
E3.P2. ENCLOSURE 3 PART 2
ELIGIBILITY FOR REFERRAL
E3.P2.1. Criteria for Referral.
Service members on active duty or in the Ready Reserve shall be eligible for referral into the DES when the member:
E3.P2.1.1. Has a medical condition that is cause for referral into the DES as established by enclosure 4 of this Instruction or by the respective Service’s supplemental medical standards, and the member has received optimal medical treatment benefits; or
E3.P2.1.2. Will be unable to return to full military duty within one year of diagnosis of the medical condition; or
E3.P2.1.3. Was previously determined unfit, continued in a permanent limited duty status, and the period of continuation has expired; and
E3.P2.1.4. Is not disqualified under section E3.P2.4. of Part 2.
E3.P2.1.5. Is a member of the regular component of the Armed Forces entitled to basic pay; or any other member of the Armed Forces entitled to basic pay who has been called or ordered to active duty for more than 30 days; or any other member of the Armed Forces, after September 23, 1996, who is on active duty but is not entitled to basic pay under 37 U.S.C. 502(b) (reference (d)) due to authorized absence to participate in an educational program, or for an emergency
purpose, as determined by the Secretary concerned.