[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3183 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3183

     To amend title 38, United States Code, to limit the amount of 
 recoupment from veterans' disability compensation that is required in 
the case of veterans who have received certain separation payments from 
                       the Department of Defense.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 28, 1996

Mr. Montgomery introduced the following bill; which was referred to the 
                     Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
     To amend title 38, United States Code, to limit the amount of 
 recoupment from veterans' disability compensation that is required in 
the case of veterans who have received certain separation payments from 
                       the Department of Defense.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LIMITATION ON RECOUPMENT FROM VETERANS COMPENSATION 
              BENEFITS.

    (a) In General.--(1) Chapter 53 of title 38, United States Code, is 
amended by inserting after section 5304 the following new section:
``Sec. 5304a. Recoupment of military separation payments from 
              compensation: limitation
    ``(a) In the case of a veteran with a service-connected disability 
who is entitled to compensation and who is paid a benefit described in 
subsection (b), the amount of compensation otherwise payable to that 
veteran that is deducted pursuant to section 1174(h)(2) of title 10 (or 
a similar provision of law) by reason of the payment to that veteran of 
the benefit described in subsection (b) may not exceed 75 percent of 
the total amount of the benefit described in subsection (b) paid to the 
veteran.
    ``(b) Subsection (a) applies to any of the following:
            ``(1) Separation pay under section 1174 of title 10.
            ``(2) Special separation benefit under section 1174a of 
        title 10.
            ``(3) Any similar benefit paid by the Secretary concerned 
        upon discharge or separation of an individual from the armed 
        forces with respect to which there is a requirement that there 
        be deducted from disability compensation otherwise payable to 
        the individual an amount equal to the total amount of the 
        benefit paid by the Secretary concerned.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``5304a. Recoupment of military separation payments from compensation: 
                            limitation.''.
    (b) Effective Date.--Section 5304a of title 38, United States Code, 
as added by subsection (a), shall apply with respect to payment of 
compensation by the Secretary of Veterans Affairs for months beginning 
on or after October 1, 1996.
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