In a directive-type memo (DTM) dated May 15, 2008, the Undersecretary of Defense (Personnel and Readiness), Dr. David Chu, announced a new program that will authorize the continuation of pay and allowances for up to one year to service members who incur a wound, injury or illness in the line of duty while serving in a combat operation or combat zone and are hospitalized for treatment of the wound, injury or illness. PAC, as the program is called, also includes service members who incur wounds, injuries or illnesses while serving in a hostile fire area or while exposed to a hostile fire event and are hospitalized for treatment of the wound, injury or illness.

The establishment of the PAC program was authorized by the Fiscal Year 2008 National Defense Authorization Act (NDAA), which became Public Law 110-181. Although the DTM specifies that PAC will end one year after the date on which a member is first hospitalized for the treatment of the qualifying event, it also provides that the Principal Deputy Under Secretary for Personnel and Readiness may extend the termination in six-month increments under extraordinary circumstances. Entitlement may end earlier if a member is returned for assignment to other than a medical or patient unit for duty. Entitlement terminates irrevocably on the date the member is discharged, separated or retired (including temporary disability retirement) from the uniformed services.

The PAC program replaces the Combat-related Injury Rehabilitation Pay (CIP) program authorized by the FY 2006 NDAA. The CIP program provided for payment of $430 per month when a member was evacuated from the theater of a combat operation or combat zone for medical treatment . Under CIP regulations, the entitlement terminated; (a) the end of the first month Traumatic Servicemembers’ Group Life Insurance (T-SGLI) was paid; (b) when member applied for T-SGLI (member had up to 30 days after being notified of eligibility) or; (c) the member was no longer hospitalized, as defined in Dr. Chu’s implementing memo of March 23, 2006. The $430 per month payable under CIP was intended to replace certain pay and allowances a member receives during deployment; hostile fire pay ($225/month); hardship duty pay ($100/month); and the incidental expense (IE) portion of their temporary duty per diem allowance ($105/month). However, it did not address the termination of certain other special/incentive pays after medical evacuation.

The Office of the Deputy Undersecretary of Defense (Military Personnel Policy) identified several improvements the PAC program has over the CIP program. It ensures the member’s level of pay when hospitalized continues up to a full year after hospitalization with further extension possible. The PAC program also de-links a member’s entitlement from T-SGLI. Many CIP-eligible members delayed applying for T-SGLI for as long as possible to allow CIP to continue. The CIP program terminated when a member was no longer hospitalized in a military treatment facility or a facility under the auspices of the military health care system. This resulted in CIP termination for some members even when the members were undergoing outpatient rehabilitative treatment. Under the PAC program, members initially admitted as inpatients who may later receive outpatient rehabilitation or other medical care in a medical treatment facility (MTF), a VA hospital, a civilian hospital or other treatment facility would continue to be entitled. The PAC program is also not limited to members “evacuated” from a combat operation or combat zone for hospitalization. This will be particularly beneficial to members hospitalized for traumatic brain injury (TBI) or post-traumatic stress disorder (PTSD) after leaving Iraq or Afghanistan. Moreover, the PAC program will apply to members who are hospitalized due to a wound, injury or illness incurred anywhere in the world from hostile action or event, and not just a combat operation or in a combat zone.