He may qualify as a senator but not from his military ‘service’. Do you recall in the 90’s when Clinton tried to bury his money man (need a name here) who had been in the merchant marine? They caught him at it and he had to back down. At that time they were quite clear about the requirements for burial due to declining space.
IIRC it was minimum grade of E-5 AND a purple heart. Teddy doesn’t qualify on either.
No, I think he qualifies. The standards are stated here:
http://www.arlingtoncemetery.org/funeral_information/guide.interment.html
I believe you are correct.