A Law Commission report is recommending two separate schemes of financial and practical support for war veterans, following a review of the War Pensions Act, 1954.
The report recommends the Government replace the act with one scheme for those who served before 1974 - the date ACC came into force - and one for those who served after.
The commission proposes increased income compensation for older working-age veterans, pensions instead of superannuation for those over 65, and better medical care.
For modern veterans, it recommends slightly higher payments than what is offered under ACC.
The commission's president, Sir Geoffrey Palmer, says the report also recommends a greater focus on rehabilitation.
"What we've done," he says, "is take the 1954 act and update it, and make it somewhat generous."
There are 16,000 people currently receiving war pensions.