A bill to amend title 10, United States Code, relating to the grade in which members of the Armed Forces are discharged or retired, health benefits for dependents of certain disabled veterans, benefits for children under legal guardianship of members of the Armed Forces, and eligibility of certain reservists for retired pay.

Revises the computation methods and effect of grade at retirement of members of the Armed Forces, for purposes of disability severance pay. Provides that a member of the Armed Forces who is retired for physical disability is entitled to retired pay for the highest grade in which he served satisfactorily on active duty. Defines active duty for purposes of this Act.

Extends health benefits to dependents of veterans who died of a compensable disability, or who have a service-connected total disability.

Allows medical benefits to children who are under the legal guardianship of members of the Armed Forces.

Makes reservists eligible for retired pay who performed active duty service between April 5, 1917, and November 12, 1918; September 8, 1940, January 1, 1947; and between June 26, 1950, and July 28, 1953.