To amend title 37, United States Code, to ensure that a member of the uniformed services who no longer satisfies the eligibility conditions for receipt of a bonus or similar benefit because of the death of the member or the retirement or separation of the member due to injury, illness, or other impairment will still receive the balance of the bonus or similar benefit and is not required to repay any portion of the bonus or similar benefit previously paid.

Prohibits requiring repayment of a bonus or similar benefit, and requires the payment of any portion of such benefit not yet paid, when certain eligibility requirements for the receipt of such benefit are not met due to the death or retirement or separation of the member due to an injury, illness, or other impairment not incurred as a result of the member's own misconduct.

Permits, in cases not covered by the above paragraph, additional exceptions to the repayment requirement when it would be contrary to personnel policy, good conscience, or the best interests of the United States.

Provides for the retroactive application of this Act beginning on September 11, 2001, as specified.