A reservist who is physically disabled as a result of a line of duty (LOD) 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). The amount of incapacitation pay cannot exceed the pay and allowances for the member's pay grade and time in service. 

To be eligible for incapacitation pay, a reservist must have an approved Notice of Eligibility (NOE) on file with CGPSC-RPM-3 and must request it using the process below. A member's entitlement for incapacitation pay is dependent upon the member's military duty status of Not Available for Full Duty (NAFD) or Available for Limited Duty (AFLD) and the documented amount of lost earned or lost civilian earned income for the incapacitation pay claim period.

• NAFD:
  • ​Members in a not available for full duty status are entitled to incapacitation pay under 37 USC 204(g). A member eligible for incapacitation pay under 37 USC 204(g) is entitled to pay and allowances minus any earned income from nonmilitary employment or self-employment. Incapacitation pay will be reduced by the amount of any earned income. For example, if a member earns $1,000 from his civilian job during a month, the member's incapacitation pay is reduced by $1,000.
• AFLD: 
  • Members in a limited duty status are entitled to incapacitation pay under 37 USC 204(h). To be eligible for incapacitation pay under 37 USC 204(h), a member must demonstrate a loss of earned income from nonmilitary employment or self-employment. For example, a member attends a medical appointment in conjunction with an approved NOE and misses three hours of work. The member may request incapacitation pay to be reimbursed the income lost due to missing three (3) hours of work to attend the medical appointment.

• Civilian Earned Income:
  • 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 rent(s), royalties

All claims for incapacitation pay must include the items below and be routed through the Command and District(dxr)/DOL-1/PAC-13 RFRS to CGPSC-RPM-3 via email to: ARL-SMB-CGPSC-RPM-Reserve-Medical@uscg.mil. Claims for incapacitation pay shall be submitted for periods not to exceed one month (30 days) unless prior approval is received from CGPSC-RPM-3. Incomplete packages will be returned without action. All personnel involved in this process shall ensure proper precautions are taken to protection Personally Identifiable Information (PII) and Protected Health Information (PHII), especially when transmitting information electronically.

1. Monthly Incapacitation Claim Form
2. Supporting documentation to demonstrate earned income or lost earned income. Documentation may include, but is not limited to:
   1. Pay Stubs
   2. Tax Documents (W-2s, 1040, etc)
   3. Statement from employer (must be on company letterhead, signed and include contact information)
   4. Memo from Command with IDT drills a member is unable to perform or make-up due to LOD condition
3. Monthly Physician's Report Form - within 30 days of submission

CGPSC-RPM-3 will validate incapacitation pay claims within 10 business days and forward valid claims to PPC(SES) for processing.

NOTE 1: Claims for incapacitation pay that exceed six months must be approved by CGPSC-RPM-3 and CG-131. CGPSC-RPM-3 will review and endorse all claims for incapacitation pay greater than six months and forward to CG-131 for approval.