To clarify the roles of the Department of Defense and Department of Veterans Affairs disability evaluation systems for retirement and compensation of members of the Armed Forces for disability, to require the development of a single physical exam that can be used to determine both fitness for duty and disability ratings, to standardize fitness testing among the Armed Forces, and for other purposes.

Directs the Secretaries of Defense and Veterans Affairs to develop a joint disability evaluation system under which: (1) the Department of Defense (DOD) shall be responsible for determining whether an injured member of the Armed Forces is fit to perform the duties of the member's office, grade, rank, or rating, or should be retired or separated because of physical disability; and (2) the Department of Veterans Affairs (VA) shall be responsible for establishing the disability rating, compensation, and benefits programs for the member so retired or separated.

Directs the Secretaries to develop a single medical examination for the evaluation of members of the Armed Forces who incur an injury that may require retirement or separation which shall be used by: (1) DOD medical evaluation boards and physical evaluation boards to determine fitness to perform the duties of the member's office, grade, rank, or rating; and (2) VA to establish the member's disability rating, compensation, and benefits programs.

Directs the Secretary of Veterans Affairs to assess VA training programs, including an evaluation of DOD training programs for personnel whose responsibilities are related to the disability evaluation system established by this Act.