[Congressional Record Volume 147, Number 9 (Wednesday, January 24, 2001)]
[Senate]
[Pages S541-S543]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REID (for himself, Mr. Hutchinson, Ms. Landrieu, Mr. 
        Dorgan, Mr. Conrad, Mr. Johnson, Mr. McCain, Mr. Bingaman, Mr. 
        Inouye, Mr. Shelby, Ms. Snowe, and Mr. Daschle):
  S. 170. 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 both military retired pay by reason of their 
years of military service and disability compensation from the 
Department of Veterans Affairs for their disability; to the Committee 
on Armed Services.
  Mr. REID. Mr. President, last Congress I, along with Senator Inouye, 
introduced S. 2357, ``The Armed Forces Concurrent Retirement and 
Disability Payment Act of 2000.'' Our bill addressed a 110 year old 
injustice that requires some of the bravest men and women in our 
nation--retired, career veterans, to essentially forgo receipt of a 
portion of their retired pay if they received a disability injury in 
the line of service. I am extremely disappointed that we did not take 
the opportunity to correct this long-standing inequity in the 106th 
Congress.
  I rise today, to again introduce a bill along with my colleagues 
Senators Hutchinson, Landrieu, Dorgan, Conrad, Johnson, McCain, 
Bingaman, Inouye, Shelby, Snowe and Daschle, that will correct this 
inequity for veterans who have retired from our Armed Forces with a 
service-connected disability.
  Our bill will permit retired members of the Armed Forces who have a 
service connected disability to receive military retired pay 
concurrently with veterans' disability compensation.
  This inequitable law originated in the 19th century, when Congress 
approved legislation to prohibit the concurrent receipt of military 
retired pay and VA disability compensation. It was enacted shortly 
after the Civil War, when the standing army of the United States was 
extremely limited. At that time, only a small portion of our armed 
forces consisted of career soldiers.
  Today, nearly one and a half million Americans dedicate their lives 
to the defense of our nation. The United States' military force is 
unmatched in terms of power, training and ability and our nation is 
recognized as the world's only superpower, a status which is largely 
due to the sacrifices our veterans made during the last century. Rather 
than honoring their commitment and bravery by fulfilling our 
obligations, the federal government has chosen instead to perpetuate a 
110-year-old injustice. Quite simply, this is disgraceful.
  Military retirement pay and disability compensation were earned and 
awarded for entirely different purposes.

[[Page S542]]

Current law ignores the distinction between these two entitlements. 
Members of our Armed Forces have normally dedicated 20 or more years to 
our country's defense earning their retirement for service. Whereas, 
disability compensation is awarded to a veteran for injury incurred in 
the line of duty.
  Career military retired veterans are the only group of federal 
retirees who are required to waive their retirement pay in order to 
receive VA disability. All other federal employees receive both their 
civil service retirement and VA disability with no offset. Simply put, 
the law discriminates against career military men and women.
  This inequity is absurd. How do we explain it to the men and women 
who sacrificed their own safety to protect this great nation? How do we 
explain this inequity to Edward Lynk from Virginia who answered the 
call of duty to defend our nation? Mr. Lynk served for over 30 years in 
the Marine Corps and participated in three wars, where he was severely 
injured during combat in two of them.
  Or George Blahun from Connecticut, who entered the military in 1940 
to serve his country because of the impending war. He served over 35 
years during World War II, the Korean War and the Vietnam War. He is 
100 percent disabled because of injuries incurred while performing 
military service.
  Our nation is experiencing a prosperity unparalleled in human history 
and yet we continue to tell these brave soldiers that we cannot afford 
to make good on payments they are owed. Mr. Blahun has hit the 
proverbial nail on the head when he labels our excuses ``arbitrary 
bureaucratic rhetorical nonsense.'' We must demonstrate to these 
veterans that we are thankful for their dedicated service. As such, we 
must fight for the amendment in the Senate version of the National 
Defense Authorization bill for FY 2001.
  We are currently losing over one thousand WWII veterans each day. 
Every day we delay acting on this legislation means that we have denied 
fundamental fairness to thousands of men and women. They will never 
have the ability to enjoy their two well-deserved entitlements.
  Mr. President, this bill represents an honest attempt to correct an 
injustice that has existed for far too long. Allowing disabled veterans 
to receive military retired pay and veterans disability compensation 
concurrently will restore fairness to Federal retirement policy.
  This legislation is supported by numerous veterans' service 
organizations, including the Military Coalition, the National Military/
Veterans Alliance, the American Legion, the Disabled American Veterans, 
the Veterans of Foreign Wars, the Paralyzed Veterans of America and the 
Uniformed Services Disabled Retirees.
  Mr. President, passing ``The Retired Pay Restoration Act of 2001'' 
will finally eliminate a gross inequitable 19th century law and ensure 
fairness within the Federal retirement policy. Our veterans have heard 
enough excuses. Now it is time for them to hear our gratitude. I urge 
my colleagues to join me in supporting this legislation to finally end 
this disservice to our retired military men and women.
  Our veterans have earned this and now is our chance to honor their 
service to our Nation.
  I ask unanimous consent that the text of the Retired Pay Restoration 
Act of 2001 be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 170

       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 ``Retired Pay Restoration Act 
     of 2001''.

     SEC. 2. PAYMENT OF RETIRED PAY AND COMPENSATION TO DISABLED 
                   MILITARY RETIREES.

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

     ``Sec. 1414. Members eligible for retired pay who have 
       service-connected disabilities: payment of retired pay and 
       veterans' disability compensation

       ``(a) Payment of Both Retired Pay and Compensation.--Except 
     as provided in subsection (b), a member or former member of 
     the uniformed services who is entitled to retired pay (other 
     than as specified in subsection (c)) and who is also entitled 
     to veterans' disability compensation is entitled to be paid 
     both without regard to sections 5304 and 5305 of title 38.
       ``(b) Special Rule for Chapter 61 Career Retirees.--The 
     retired pay of a member retired under chapter 61 of this 
     title with 20 years or more of service otherwise creditable 
     under section 1405 of this title at the time of the member's 
     retirement is subject to reduction under sections 5304 and 
     5305 of title 38, but only to the extent that the amount of 
     the member's retired pay under chapter 61 of this title 
     exceeds the amount of retired pay to which the member would 
     have been entitled under any other provision of law based 
     upon the member's service in the uniformed services if the 
     member had not been retired under chapter 61 of this title.
       ``(c) Exception.--Subsection (a) does not apply to a member 
     retired under chapter 61 of this title with less than 20 
     years of service otherwise creditable under section 1405 of 
     this title at the time of the member's retirement.
       ``(d) Definitions.--In this section:
       ``(1) The term `retired pay' includes retainer pay, 
     emergency officers' retirement pay, and naval pension.
       ``(2) The term `veterans' disability compensation' has the 
     meaning given the term `compensation' in section 101(13) of 
     title 38.''.
       (b) Repeal of Special Compensation Program.--Section 1413 
     of such title is repealed.
       (c) Clerical Amendments.--The table of sections at the 
     beginning of such chapter is amended--
       (1) by striking the item relating to section 1413; and
       (2) by adding at the end the following new item:

``1414. Members eligible for retired pay who have service-connected 
              disabilities: payment of retired pay and veterans' 
              disability compensation.''.

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

       (a) In General.--The amendments made by this Act shall take 
     effect on--
       (1) the first day of the first month that begins after the 
     date of the enactment of this Act; or
       (2) the first day of the fiscal year that begins in the 
     calendar year in which this Act is enacted, if later than the 
     date specified in paragraph (1).
       (b) Retroactive Benefits.--No benefits may be paid to any 
     person by reason of section 1414 of title 10, United States 
     Code, as added by the amendment made by section 2(a), for any 
     period before the effective date specified in subsection (a).

  Mr. HUTCHINSON. Mr. President, I rise today to join my distinguished 
colleague from across the aisle, Senator Reid, in introducing the 
Military Retirement Equity Act of 2001. With the swift passage of this 
act, we hope to put an end to a grossly unfair practice, to reform a 
system that, as it stands today, ends up hurting those veterans we owe 
our greatest debt of gratitude.
  Today, our armed forces are struggling to meet even modest recruiting 
goals and are having even more difficulty retaining qualified men and 
women. Serving in the military is less likely to be seen as an 
attractive career. The Federal Government should do its part to help, 
not to hinder, the viability of the idea of a career in uniform.
  Unfortunately, an outdated law passed in 1891 punishes those who have 
served this Nation in uniform for more than twenty years, in the 
process earning a longevity retirement. How? By forcing them to waive 
the amount of their retired pay equal to the amount of any VA 
disability compensation they may be eligible to receive. That is 
patently unfair. Military retirement pay based on longevity and VA 
disability compensation are awarded for two distinct, different 
reasons--one should not count against the other. One is awarded for 
making a career of public service, the other is to redress 
debilitating, enduring injuries caused by the rigors of life in the 
military.
  Military retirees are the only group of federal retirees who must 
waive a portion of their retirement pay in order to receive VA 
disability compensation. If a veteran refuses to give up his retired 
pay, he will lose his VA benefits.
  Let's take the fictional example of two G.I.'s named Joe and Sam. Joe 
and Sam joined the Army together and were wounded in the same battle. 
Joe left the Army after a four-year tour and joined the federal 
government as a civilian employee. Sam continued on and made the 
military his career.
  Thirty years later, both men are receiving federal retirement pay and 
both are eligible for VA disability compensation as a result of the 
injuries they sustained while in the service. The difference between 
Joe and Sam is that in order to get disability compensation, Sam must 
forfeit an equal amount of his retired pay, while Joe collects the full 
amount of both benefits without any deduction in either.

[[Page S543]]

  Fairness is the issue here. We should be rewarding, not penalizing 
people for choosing a career in the military. Military retirees with 
service-connected disabilities should be allowed to receive 
compensation for their injuries above their retired military pay. The 
107th Congress must act to bring equity to those who were disabled 
during a career of dedicated service to our nation, and the Reid-
Hutchinson bill is the proper vehicle. By eliminating the offset, we 
can end this unfair practice that hurts those who need our help.
  The Military Retirement Equity Act of 2001 has the strong support of 
many military and nonmilitary veterans service organizations. In 
addition, Congressman Michael Bilirakis has introduced companion 
legislation in the House of Representatives. I encourage all of my 
colleagues to join us in this fight by signing on as cosponsors.
  While I know it will be an uphill battle to get this legislation 
passed, it is one of my highest priorities. It's only right that the 
Congress make this much-needed change and reward--rather than 
penalize--those who have selflessly served to protect our Nation.
                                 ______