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Army Pamphlet 135-381 Incapacitation of Reserve Component Soldiers Processing Procedures

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1–5. Objective
The objective of the RC Incapacitation System is to compensate, to the extent permitted by law, members of the Reserve Components who are unable to perform military duties and/or who demonstrate a loss in civilian earned income as a result of an injury, illness, or disease incurred or aggravated in the line of duty and to provide the required medical and dental care associated with the incapacitation.

1–6. Entitlement
a. A member of the RC incurring or aggravating any injury, illness, or disease in the line of duty is entitled to medical and dental care, incapacitation pay, and travel and transportation incident to medical and/or dental care, in accordance with 37 USC 204 and 37 USC 206. The amount of incapacitation pay for the member will be  determined in accordance with DOD 7000.14–R, Volume 7A.
   b. Members incapacitated in the line of duty are entitled to medical and dental treatment in an MTF for the in-the-line-of-duty condition until qualified for return to military duty. If the resulting incapacitation cannot be materially improved by further hospitalization or treatment, the case will be processed and finalized through the Disability Evaluation System (DES) when eligible for disability processing. Procedures governing physical disability evaluation are provided in DODI 1332.38 and Department of Defense Directive (DODD) 1332.18.
   c. A member on a call or order to active duty specifying a period of 30 days or less who incurs or aggravates an injury, illness, or disease will not have orders terminated solely because of the injury, illness, or disease, unless requested by the member. Upon release from active duty, the member is entitled to benefits provided by this regulation.

   d. Members authorized incapacitation pay under 37 USC 204(g) will not be allowed to attend inactive duty training (IDT) periods or to acquire retirement points for drills. However, a member may earn retirement points in order to satisfy the requirements for a qualifying year of service by completing correspondence courses....

1–8. Members unable to perform military duties
   a. A member who is unable to perform military duties because of incapacitation under the circumstance described in paragraph 1–6 is entitled to full pay and allowances, including all incentive pay to which entitled, less any civilian
earned income for the same period the member receives incapacitation pay (see DOD 7000.14–R, Volume 7A for entitlements).
   b. Incapacitation pay under paragraph 1–8a is adjusted only by the amount of earned income received. The civilian income of the member other than earned income received will not be a consideration in calculating incapacitation pay
under that paragraph.
   c. For establishing fitness, an RC member will be determined to be unable to perform military duties if, under service procedures in AR 40–501 the member would be determined to be medically unfit to perform his or her military duties.
   d. A member authorized incapacitation pay under 37 USC 204(g) of reference will not be allowed to attend IDT or to acquire retirement points for performing IDT. A Soldier attending IDT and performing military duties may be evidence that they are not suffering from a disability that entitles them to incapacitation pay (tier 1 cases). This will not be used as a basis for terminating entitlement to medical treatment.
   e. Return to or acceptance of civilian employment may not terminate entitlement to medical care at Government expense.

1–9. Members able to perform military duties
Members able to perform military duties, but demonstrating a loss of earned income as a result of an in-the-line-of-duty incapacitation, will be compensated for lost earned civilian income. The compensation under this provision will be the lesser of the amount of demonstrated lost civilian income in the amount not to exceed military pay and allowances for which the member would be entitled if serving on active duty. Members will be compensated for loss of earned civilian income in accordance with 37 USC 204(h) and DOD 7000.14–R, Volume 7A, table 57–3....

1–11. Duration of incapacitation pay
a. Incapacitation pay will be paid only during the period a member remains unfit for military duty or demonstrates a loss of earned income as a result of the incapacitation.
   b. Payment in any particular case may not be made for more than 6 months without review of the case by appropriate headquarters as outlined in paragraph 3–6.
   c. To insure that continuation of incapacitation pay is warranted under this regulation, a review will be made every 6 months.
   d. Incapacitation pay will continue as long as the conditions warranting the incapacitation pay exist and the approving authority determines that it is in the interest of fairness and equity to continue the payment.
   e. When incapacitation lasts for over a year, the case should be processed through the DES for disability separation or retirement. Incapacitation pay will end upon retirement, separation for physical disability, or determination by military service medical personnel that the member has recovered sufficiently to perform military duties, when actually returned to military duty, whichever occurs first....

1–13. Compensation
   a. Soldiers are entitled to a portion of the same monthly pay and allowances as are provided members of the Active Army with corresponding grade, length of service, marital status, and dependent status for each period the Soldier is unable to perform military duties (tier 1 cases) or can demonstrate loss of compensation from civilian earned income (tier 2 cases). Maximum amount payable for any given period is an amount equivalent to military pay and allowances for the period in question.
   b. Soldiers will not be issued AD orders in place of incapacitation pay as a means of providing benefits to which they might otherwise not be entitled....