To amend title 10, United States Code, to allow military retired pay for nonregular service under chapter 67 of that title to be paid (on an actuarially reduced basis) without regard to the otherwise applicable age requirement in the case of persons eligible for such pay who are fully disabled.

Amends Federal armed forces retired pay provisions to authorize the payment of retired pay to fully disabled persons, even though such persons are under 60 years of age (the current required age for full retirement benefits). Requires the determination of full disability to be made by the Secretary of the military department concerned.

Requires such persons to apply to the Secretary concerned to receive such retired pay. Requires any retired pay paid to fully disabled persons to be reduced actuarially to ensure that there is no actuarial loss to the Department of Defense Military Retirement Fund due to the early payment of such benefits.

Terminates such early retired pay when a person is reevaluated and determined to be no longer fully disabled. Requires a reduction in the retired pay for such person who later resumes receipt of retired pay by reason of attaining 60 years of age.