II Calendar No. 79 109th CONGRESS 1st Session S. 845 IN THE SENATE OF THE UNITED STATES April 19, 2005 Mr. Reid introduced the following bill; which was read the first time April 20, 2005 Read the second time and placed on the calendar A BILL To amend title 10, United States Code, to permit retired servicemembers who have a service-connected disability to receive disability compensation and either retired pay or Combat-Related Special Compensation and to eliminate the phase-in period with respect to such concurrent receipt.

1.

Findings

Congress finds the following: (1)For more than 100 years before 1999, all disabled military retirees were required to fund their own veterans’ disability compensation by forfeiting $1 of earned retired pay for each $1 received in veterans’ disability compensation. (2)Since 1999, Congress has enacted legislation every year to progressively expand eligibility criteria for relief of the retired pay disability offset and further reduce the burden of financial sacrifice on disabled military retirees. (3)Absent adequate funding to eliminate the sacrifice for all disabled retirees, Congress has given initial priority to easing financial inequities for the most severely disabled and for combat-disabled retirees. (4)In the interest of maximizing eligibility within cost constraints, Congress effectively has authorized full concurrent receipt for all qualifying retirees with 100 percent disability ratings and all with combat-related disability ratings, while phasing out the disability offset to retired pay over 10 years for retired members with noncombat-related, service-connected disability ratings of 50 percent to 90 percent. (5)In pursuing these good-faith efforts, Congress acknowledges the regrettable necessity of creating new thresholds of eligibility that understandably are disappointing to disabled retirees who fall short of meeting those new thresholds. (6)Congress is not content with the status quo.

2.

Sense of Congress

It is the sense of Congress that military retired pay earned by service and sacrifice in defending the Nation should not be reduced because a military retiree is also eligible for veterans’ disability compensation awarded for service-connected disability.

3.

Eligibility for payment of both retired pay and veterans’ disability compensation for certain additional military retirees with compensable service-connected disabilities

(a)

Extension of concurrent receipt authority to retirees with service-Connected disabilities rated less than 50 percent

Section 1414(a) of title 10, United States Code, is amended to read as follows: (a)

Payment of both retired pay and compensation

(1)

In general

Subject to subsection (b), an individual who is a qualified retiree for any month is entitled to be paid both retired pay and veterans' disability compensation for that month without regard to sections 5304 and 5305 of title 38. (2)

Qualified retirees

For purposes of this section, a qualified retiree, with respect to any month, is a member or former member of the uniformed services who— (A)is entitled to retired pay, other than in the case of a member retired under chapter 61 of this title with less than 20 years of service creditable under section 1405 of this title and less than 20 years of service computed under section 12732 of this title; and (B)is entitled for that month to veterans’ disability compensation. . (b)

Repeal of phase-In of concurrent receipt of retired pay and veterans' disability compensation

Section 1414 of title 10, United States Code, is further amended— (1)by striking subsection (c); (2)by redesignating subsections (d) and (e) as subsections (c) and (d), respectively; and (3)in subsection (d), as redesignated, by striking subparagraph (4). (c)

Clerical amendments

(1)The heading for section 1414 of title 10, United States Code, is amended to read as follows:

1414.

Members eligible for retired pay who are also eligible for veterans’ disability compensation: concurrent payment of retired pay and disability compensation

. (2)The item relating to such section in the table of sections at the beginning of chapter 71 of such title is amended to read as follows: 1414. Members eligible for retired pay who are also eligible for veterans’ disability compensation: concurrent payment of retired pay and disability compensation. .

4.

Coordination of service eligibility for combat-related special compensation and concurrent receipt

(a)

Eligibility for tera retirees

Section of section 1413a(c) of title 10, United States Code, is amended by striking entitled to retired pay who— and all that follows and inserting who—(1)is entitled to retired pay, other than a member retired under chapter 61 of this title with less than 20 years of service creditable under section 1405 of this title and less than 20 years of service computed under section 12732 of this title; and (2)has a combat-related disability . (b)

Amendments to standardize similar provisions

(1)

Clerical amendment

The heading for paragraph (3) of section 1413a(b) of title 10, United States Code, is amended by striking rules and inserting rule. (2)

Standardization with crsc rule for chapter 61 retirees

Section 1414(b) of such title is amended— (A)by striking Special rules and all that follows through is subject to in paragraph (1) and inserting Special rule for chapter 61 disability retirees.—In the case of a qualified retiree who is retired under chapter 61 of this title, the retired pay of the member is subject to; and (B)by striking paragraph (2).

5.

Effective date

The amendments made by this Act shall take effect as of January 1, 2006, and shall apply to payments for months beginning on or after that date.

April 20, 2005 Read the second time and placed on the calendar