[Congressional Record Volume 143, Number 51 (Friday, April 25, 1997)]
[Senate]
[Pages S3731-S3732]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself and Mr. Jeffords):
  S. 657. A bill to amend title 10, United States Code, to permit 
retired members of the Armed Forces who have a service-connected 
disability to receive military retired pay concurrently with veterans' 
disability compensation; to the Committee on Armed Services.


               the military retirement equity act of 1997

  Mr. DASCHLE. Mr. President, current law--grounded in a century-old 
statute--requires individuals in receipt of disability compensation 
from the Department of Veterans Affairs, VA, to offset by an equal 
amount any retired military pay for which they are eligible. The offset 
requirement discriminates unfairly against disabled career soldiers by 
requiring them, in effect, to fund their own disability benefits.
  To correct this gross inequity, Senator Jeffords and I are 
introducing legislation today that would eliminate the offset on a 
graduated scale based on the inverse of the retiree's disability 
rating.
  For example, a veteran who is 80 percent disabled would have to 
offset his retirement pay by the amount equal to 20 percent of his 
total VA disability. This compromise would establish the right of a 
disabled military retiree to receive at least a portion of his earned 
military retirement.
  Current law is problematic because it ignores the proper distinction 
between military retirement and disability compensation entitlements. 
Whereas the former is paid to recognize a soldier who has dedicated 20 
or more of his or her years to our country's defense, the latter is 
designed to compensate a veteran for injury incurred in the line of 
duty. Because the two types of compensation serve two entirely 
different purposes, receipt of one should not displace receipt of the 
other.
  Concurrent receipt is fundamentally a fairness issue. The present law 
simply discriminates against career military personnel. Career military 
retirees are the only group of Federal retirees who are required to 
waive their retirement pay in order to receive VA disability pay.
  The unequal gap between the compensation received by disabled 
servicemembers who choose different career paths is patently clear.
  Disabled veterans who choose careers in military service will see, 
upon retirement, their earned retirement benefits reduced proportionate 
to their receipt of VA disability payments. Conversely, disabled 
veterans who elect to leave military service and go into either other 
Federal employment or the private sector will, upon retirement, 
continue to receive their full disability payments, along with any 
earned retirement benefits.
  This inequity needs to be corrected. Over the past several years, the 
Congress and the Department of Defense have sought to deal with this 
issue in a variety of ways. In the past, many attempts to rectify this 
situation have been accompanied by staggering cost estimates. This 
legislation represents an effort to ease the offset burden on retired 
disabled servicemembers while avoiding significant deficit expansion.
  It is also supported by veterans service organizations, including the 
Veterans of Foreign Wars, the Disabled American Veterans, the American 
Legion, and the Paralyzed Veterans of America. Although these 
organizations would prefer a complete elimination of the offset, they 
all welcome this effort as a step in the right direction.
  We now have an opportunity to show a measure of our gratitude to all 
those remarkable men and women who have sacrificed in the name of 
freedom and democracy.
  These dedicated servicemembers deserve our special commendation, both 
for having suffered while serving our country and for continuing to 
work in the Armed Forces until retirement. It is time for Congress to 
reverse the law that prohibits career military personnel who are 
wounded or injured during service to our country from receiving earned 
retirement benefits. I hope the Senate will consider this legislation 
expeditiously and end, at long last, this unfairness by finally passing 
this bill, or something like it, into law in the near future.
  Mr. President, this legislation represents an honest attempt to 
correct an injustice that has existed for too long. By allowing 
disabled veterans to receive military retired pay and veterans 
disability compensation concurrently, with an offset that is inversely 
related to the degree of disability, we can restore some fairness to 
Federal retirement policy in a cost-effective manner. Common sense 
tells us that this is the right thing to do.
  I ask unanimous consent that the text of the Military Retirement 
Equity Act of 1997 be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 657

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Military Retirement Equity 
     Act of 1997''.

     SEC. 2. CONCURRENT PAYMENT OF RETIRED PAY AND COMPENSATION.

       (a) Limitation on Duplication of Benefits.--Chapter 71 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 1413. Concurrent payment of retired pay and veterans' 
       disability compensation

       ``(a) Concurrent Payment.--Subject to subsection (b), a 
     person entitled to retired pay may be paid that pay 
     concurrently with the payment of veterans' disability 
     compensation for a service-connected disability if the 
     person's entitlement to retired pay is based solely on--
       ``(1) the person's age;
       ``(2) the length of the person's service in the uniformed 
     services; or
       ``(3) both the person's age and the length of such service.
       ``(b) Offset of Disability Compensation.--In the case of a 
     person who is receiving both retired pay and veterans' 
     disability

[[Page S3732]]

     compensation, the amount of retired pay paid such person 
     shall be reduced (but not below zero) based on the rating of 
     the person's disability for veterans' disability compensation 
     purposes as follows:
       ``(1) If and while the disability is rated 10 percent, by 
     the amount equal to 90 percent of the amount of the 
     disability compensation paid such person.
       ``(2) If and while the disability is rated 20 percent, by 
     the amount equal to 80 percent of the amount of the 
     disability compensation paid such person.
       ``(3) If and while the disability is rated 30 percent, by 
     the amount equal to 70 percent of the amount of the 
     disability compensation paid such person.
       ``(4) If and while the disability is rated 40 percent, by 
     the amount equal to 60 percent of the amount of the 
     disability compensation paid such person.
       ``(5) If and while the disability is rated 50 percent, by 
     the amount equal to 50 percent of the amount of the 
     disability compensation paid such person.
       ``(6) If and while the disability is rated 60 percent, by 
     the amount equal to 40 percent of the amount of the 
     disability compensation paid such person.
       ``(7) If and while the disability is rated 70 percent, by 
     the amount equal to 30 percent of the amount of the 
     disability compensation paid such person.
       ``(8) If and while the disability is rated 80 percent, by 
     the amount equal to 20 percent of the amount of the 
     disability compensation paid such person.
       ``(9) If and while the disability is rated 90 percent, by 
     the amount equal to 10 percent of the amount of the 
     disability compensation paid such person.

     The retired pay of a person entitled to disability 
     compensation may not be reduced under this subsection if and 
     while the disability of such person is rated as total.
       ``(c) Definitions.--In this section:
       ``(1) Retired pay.--The term `retired pay' includes 
     retainer pay and emergency officers' retirement pay.
       ``(2) Veterans' disability compensation.--
     The term `veterans' disability compensation' has the meaning 
     given the term `compensation' in section 101(13) of title 
     38.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item

``1413. Concurrent payment of retired pay and veterans' disability 
              compensation.''.

     SEC. 3. EFFECTIVE DATE AND PROHIBITION ON RETROACTIVE 
                   BENEFITS.

       (a) In General.--The amendments made by this Act shall take 
     effect on October 1, 1997.
       (b) Retroactive Benefits.--No benefits shall be paid to any 
     person by virtue of this Act for any period before the 
     effective date of this Act.

  Mr. JEFFORDS. Mr. President, current law requires retired military 
personnel individuals in receipt of disability compensation from the 
Department of Veterans Affairs, VA, to offset any retired military pay 
for which they become eligible. Today Senator Daschle and I are 
introducing legislation that would gradually eliminate this offset 
based on the inverse of the retiree's disability rating. This offset 
requirement unfairly discriminates against career soldiers who become 
disabled by requiring them to fund their own disability benefits.
  As an example, a veteran with 60-percent service-connected disability 
would have to offset his retirement pay by the amount equal to 60 
percent of his total VA disability. This compromise legislation would 
establish the right of a disabled military retiree to receive at least 
a portion of his earned military retirement while avoiding an 
insurmountable cost that, under budget rules, would require an offset 
in other funding areas of the Department of Defense.
  Current law does not take into account the obvious distinction 
between military retirement and disability compensation entitlements. 
Military retirement is paid to recognize a soldier who has dedicated 20 
or more of his or her years to our country's defense. Disability 
benefits are intended to compensate a veteran for injury for injury 
incurred in the lined of duty. Because these two types of compensation 
serve two different purposes, receipt of one should not prevent a 
veteran from receiving the other.
  Congress has sought to deal with this issue over the years in a 
number ways--most of these attempts have brought with them unreasonable 
cost estimates. This legislation would ease the offset burden on 
retired disabled service members and still avoid significant expansion 
in the deficit. Also, because career military retirees are the only 
group of Federal retirees who are required to waive their retirement 
pay in order to receive VA disability, the need to change current law 
is especially pressing. Inversely, disabled veterans who elect to leave 
military service and go into either other Federal employment or the 
private sector will, upon retirement, continue to receive their full 
disability payments, along with any earned retirement benefits.
  This bill is supported as a step in the right direction by the 
Nation's veterans service organizations, including the American Legion, 
Veterans of Foreign Wars, the Disabled American Veterans, and the 
Paralyzed Veterans of America.
  Congress should move quickly to reverse this law prohibiting career 
military personnel who are wounded or injured during their service from 
receiving earned retirement benefits. I hope the Senate will act to end 
this unfairness once and for all by passing legislation to ease the 
offset. In allowing disabled veterans to receive military retired pay 
and veterans disability compensation concurrently, with an offset that 
is inversely related to the degree of disability, we will restore some 
fairness to Federal retirement policy cost-effectively. Our veterans 
have earned that and much more.
                                 ______