[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1359 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1359

     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 SENATE OF THE UNITED STATES

                            November 4, 1997

Mr. Jeffords (for himself, Mr. Inhofe, Mr. Akaka, Mr. Conrad, Mr. Reid, 
   Ms. Collins, Mr. Craig, Mr. Daschle, Mr. Murkowski and Ms. Snowe) 
introduced the following bill; which was read twice and 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 INCENTIVE 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 incentive 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 an incentive described 
in subsection (b), the amount of compensation otherwise payable to that 
veteran that is deducted pursuant to section 1174a(g) of title 10 by 
reason of the payment to that veteran of the benefit described in 
subsection (b)(1), or pursuant to section 1175(e)(4) of title 10 by 
reason of the payment to that veteran of the benefit described in 
subsection (b)(2), may not exceed 75 percent of the total amount of the 
benefit paid to the veteran.
    ``(b) Subsection (a) applies to the following:
            ``(1) Special separation benefits under section 1174a of 
        title 10.
            ``(2) Voluntary separation incentive benefits under section 
        1175 of title 10.''.
    (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 
after December 5, 1991.
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