A reservist who is physically disabled as a result of a line of duty injury, illness or disease, is entitled to pay and allowances in accordance with 37 USC 204 and 206. The amount of pay and allowances authorized is determined in accordance with the Coast Guard Pay Manual COMDTINST M7220.29 (series), and is dependent upon the member's military duty status of Not Fit for Duty (NFD) or Fit for Limited Duty (FLD), and the documented amount of lost civilian earned income for the incapacitation pay claim period.
A reservist with an approved Notice of Eligibility (NOE) for authorized medical care may file for incapacitation pay as described below.
Civilian earned income is defined as follows: Income from non-military employment, including self-employment. This includes normal wages, salaries, professional fees, tips, or other compensation for personal services actually rendered, as well as income from protection plans, vacation pay, and sick leave that the member elects to receive. It does not include rents, royalties, retirement pay, dividends or interest, welfare payments, or other nontaxable Government benefits.
Claims for incapacitation pay shall be processed as outlined below: