[Congressional Record Volume 149, Number 27 (Thursday, February 13, 2003)]
[Senate]
[Pages S2467-S2469]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REID (for himself, Mr. McCain, Mr. Akaka, Mr. Allard, Mr. 
        Allen, Mr. Baucus, Mr. Biden, Mr. Bingaman, Mrs. Boxer, Mr. 
        Breaux, Mr. Brownback, Ms. Cantwell, Mrs. Clinton, Mr. Corzine, 
        Mr. Daschle, Mr. Dayton, Mr. Dorgan, Mr. Durbin, Mrs. 
        Feinstein, Mr. Grassley, Mr. Hagel, Mr. Inouye, Mr. Johnson, 
        Ms. Landrieu, Mr. Leahy, Mr. Levin, Mrs. Lincoln, Mr. Miller, 
        Mr. Nelson of Florida, Mr. Nelson of Nebraska, Mr. Roberts, Mr. 
        Rockefeller, Mr. Sarbanes, Mr. Smith, Ms. Snowe, Mr. Campbell, 
        Mr. Lieberman, and Mr. Cochran):
  S. 392. 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. Madam President, over the last several years, I have tried 
to correct a long-standing injustice impacting our Nation's veterans. 
Under a law that is now over 110 years old, most veterans who retire 
with 20 years of honorable service, and who also have a service-related 
disability, cannot collect both their retirement and their disability 
pay.
  In 2001, I was joined by 82 cosponsors in introducing S. 170, the 
``Retired Pay Restoration Act of 2001.'' Our bill sought to lift the 
restrictions to allow veterans the ``concurrent receipt'' of both 
retirement compensation and disability benefits. Although we were 
successful in getting the language approved in the National Defense 
Authorization Act of 2002, now codified at 10 U.S.C. 1414, the 
authorization was made contingent upon the passage of further 
appropriations. No funds were ever appropriated and concurrent receipt 
remained another unfulfilled promise to our veterans.
  In 2002, I introduced S. 2051, the ``Retired Pay Restoration Act of 
2002'' to repeal the contingency language and make concurrent receipt a 
reality. The Senate again overwhelmingly passed this measure. 
Unfortunately, the White House threatened a veto of the National 
Defense Authorization Act of 2003, and therefore, the Conference 
Committee conceded to a compromise proposal, see Section 636 of 
Conference Report 107-772. This compromise was a much scaled-back 
version of concurrent receipt. Senator Warner correctly referred to it 
as a ``beachhead'', but we all acknowledged there was much work 
remaining.
  Under last year's compromise, only a small number of veterans--
estimated to be between 15 to 30 thousand--would stand to benefit. The 
compromise left the contingency language for full concurrent receipt in 
place, but created a new category of special compensation, now codified 
at 10 U.S.C. 1413(a). In this new category, retirees that had at least 
a 60 percent disability rating that was a direct result of armed 
conflict, hazardous service, performance of duty under conditions 
simulating war, or through an instrumentality of war, would be eligible 
to collect both retirement compensation and disability benefits. Thus, 
the current law excludes approximately 500,000 disabled veterans who 
have served their country honorably. To exclude these veterans assumes 
that they are less deserving of fair compensation because they did not 
incur their injury in combat. The law also creates an unnecessary 
bureaucracy for the VA and the Department of Defense, which currently 
do not make distinctions based on the specific cause of a service-
connected disability.
  Therefore, I rise today with Mr. McCain, to introduce the ``Retired 
Pay Restoration Act of 2003'', along with our colleagues Mr. Akaka, Mr. 
Allard, Mr. Allen, Mr. Baucus, Mr. Biden, Mr. Bingaman, Ms. Boxer, Mr. 
Breaux, Mr. Brownback, Mr. Campbell, Ms. Cantwell, Mrs. Clinton, Mr. 
Corzine, Mr. Daschle, Mr. Dayton, Mr. Dorgan, Mr. Durbin, Ms. 
Feinstein, Mr. Grassley, Mr. Hagel, Mr. Inouye, Mr. Johnson, Ms. 
Landrieu, Mr. Leahy, Mr. Levin, Mr. Lieberman, Ms. Lincoln, Mr. Miller, 
Mr. Nelson of Nebraska, Mr. Nelson of Florida, Mr. Roberts, Mr. 
Rockefeller, Mr. Sarbanes, Mr. Smith, and Ms. Snowe, to correct this 
inequity for veterans who have retired from our Armed Forces with a 
service-connected disability.
  Our bill removes the contingency language for full concurrent receipt 
currently found at 10 U.S.C 1414(a) and (f), and repeals the Special 
Compensation programs codified at 10 U.S.C. 1413 and 1413(a). The 
effect would be to finally implement full concurrent receipt, thereby 
ending the 110 year inequity.
  Passage and implementation of this bill is long overdue. I am sure 
many of my colleagues would be interested to learn that Congress 
imposed these restrictions on concurrent receipt just 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

[[Page S2468]]

defense of our Nation. The United States' military force is unmatched 
in terms of power, training and ability. Our Nation's status as the 
world's only superpower 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 longstanding injustice. Quite simply, 
this is disgraceful, and we must correct it.
  Once again our Nation is calling upon the members of the Armed Forces 
to defend democracy and freedom in Afghanistan, in the Persian Gulf and 
throughout the world. We must send a signal to the men and women 
currently in uniform that our government takes care of those that make 
sacrifices for our Nation. We must demonstrate to veterans that we are 
thankful for their dedicated service.
  Military retirement pay and disability compensation are earned and 
awarded for entirely different purposes. Current law ignores the 
distinction between these two entitlements. Military retired pay is 
earned compensation for the extraordinary demands and sacrifices 
inherent in a military career. It is a reward promised for serving two 
decades or more under conditions that most Americans find intolerable. 
Veterans' disability compensation, on the other hand, is paid to 
recompense pain, suffering, and lost future earning power caused by a 
service-connected illness or injury. Few retirees can afford to live on 
their retired pay alone, and a severe disability only makes the problem 
worse by limiting or denying any post-service working life.
  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 benefits. 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. It assumes, in effect, that disabled military retirees neither 
need nor deserve the full compensation they earned for their 20 or more 
years served in uniform.
  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 those members currently risking their lives to 
defeat terror?
  We are currently losing over one thousand World War II veterans each 
day. Every day we delay acting on this legislation means continuing to 
deny fundamental fairness to thousands of men and women. They will 
never have the ability to enjoy their two well-deserved entitlements.
  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 Fleet Reservists Association, the 
Military Officer's Association, the Paralyzed Veterans of America and 
the Uniformed Services Disabled Retirees.
  Passing this bill will finally eliminate a grossly 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 this legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 392

       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 2003''.

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

       (a) Restoration of Full Retired Pay Benefits.--Section 1414 
     of title 10, United States Code, is amended to read as 
     follows:

     ``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 Programs.--Sections 1413 
     and 1413a of such title are repealed.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by striking the items 
     relating to sections 1413, 1413a, and 1414 and inserting the 
     following:

``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 amended by section 2(a), for any period before the 
     effective date applicable under subsection (a).
  Mr. McCAIN. Madam President, I first introduced legislation on this 
issue all the way back in 1992. Then again in 1993, then again in 1994, 
then again in 1995. In 1999, I drafted legislation that became law--as 
a compromise measure that paid special compensation pay for severely 
disabled military retirees with disabilities greater than 50 percent. 
Here we are in 2003 with an opportunity to finally rectify a problem 
that has plagued our veterans and to rectify it, once and for all, for 
all military retirees who have become disabled during their military 
service.
  I know personally the character of Americans who take up arms to 
defend our Nation's interests and to advance our democratic values. I 
know of all the battles, all the grim tests of courage and character, 
that have made a legend of the Army, Navy, Marine Corps and Air Forces 
devotion to duty.
  Let me remind this body of the grave sacrifice that our men and women 
who risk their lives for their country must endure. The United States 
has exerted military force more than 280 times since the end of World 
Ward II. We are even now engaged in an epic struggle against a new and 
hidden enemy that involves the men and women of our armed forces.
  Once again our young men and women are defiantly heading into harms 
way with the understanding that we, as the lawmakers of this great 
Nation, will ensure they are taken care of as citizens and as veterans 
for their actions above and beyond the call of duty.
  We now have an opportunity to show a measure of our gratitude to 
these brave men and women, and for the future men and women who 
continue to serve in this time of trial.

[[Page S2469]]

  The existing law as it stands is simply discriminatory and wrong. 
``Concurrent receipt'' is, at its core, a fairness issue, and present 
law simply discriminates against career military people who have been 
injured or disabled while in conduct of their duties while in defense 
of this great Nation. Retired veterans are the only group of federal 
retirees who are required to waive their retirement pay in order to 
receive VA disability compensation.
  In my view, the two pays are for very different purposes; one for 
loyal and selfless service to our country. The other for physical or 
mental `pain and suffering' occurred in that service to country.
  The Retired Pay Restoration Act has received strong bipartisan 
support in Congress for several years.
  The Military Coalition, an organization of 33 prominent veterans' and 
retirees' advocacy groups, supports this legislation, as do many other 
veterans' service organizations, including the Veterans of Foreign 
Wars, American Legion and Disabled American Veterans.
  For the brave men and women who have selected to make their career in 
the U.S. military, they face an unknown risk. If they are injured, they 
will be forced to forego their earned retired pay in order to receive 
their VA disability compensation. In effect, they will be paying for 
their own disability benefits from their retirement checks.
  It is long overdue for us to redress the unfair practice of requiring 
disabled military retirees to fund their own disability compensation. 
Sixty percent is not enough! We need full funding for all military 
retirees. It is time to show our appreciation to the men and women who 
have sacrificed so much for our great Nation.
  Therefore, I am proud to rise today with Mr. Reid, to introduce the 
``Retired Pay Restoration Act of 2003'', along with our colleagues Mr. 
Akaka, Mr. Baucus, Mr. Bayh, Mr. Biden, Mr. Bingaman, Ms. Boxer, Mr. 
Breaux, Ms. Cantwell, Mr. Cochran, Mrs. Clinton, Mr. Corzine, Mr. 
Daschle, Mr. Dayton, Mr. Dorgan, Mr. Durbin, Ms. Feinstein, Mr. Inouye, 
Mr. Johnson, Ms. Landrieu, Mr. Leahy, Mr. Levin, Mr. Lieberman, Ms. 
Lincoln, Mr. Miller, Mr. Nelson of Nebraska, Mr. Nelson of Florida, Mr. 
Rockefeller, Mr. Sarbanes, Mr. Allard, Mr. Allen, Mr. Brownback, Mr. 
Campbell, Mr. Grassley, Mr. Hagel, Mr. Roberts, Mr. Smith, and Ms. 
Snowe, to correct this inequity for veterans who have retired from our 
Armed Forces with a service-connected disability.
  I am thankful for the Senate's action to address this important issue 
today and I urge the Chairman and Ranking Member to carry this 
legislative provision through Conference and final passage.
                                 ______