[Congressional Record Volume 161, Number 88 (Wednesday, June 3, 2015)]
[Senate]
[Pages S3691-S3692]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1504. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 1463 proposed by Mr. McCain to the bill H.R. 1735, to 
authorize appropriations for fiscal year 2016 for military activities 
of the Department of Defense and for military construction, to 
prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of part II of subtitle D of title VI, add the 
     following:

     SEC. 643. ELIGIBILITY FOR PAYMENT OF BOTH RETIRED PAY AND 
                   VETERANS' DISABILITY COMPENSATION FOR MILITARY 
                   RETIREES WITH COMPENSABLE SERVICE-CONNECTED 
                   DISABILITIES.

       (a) Restatement of Current Concurrent Payment Authority 
     With Extension of Payment Authority to Retirees With 
     Compensable Service-Connected Disabilities

[[Page S3692]]

     Rated Less Than 50 Percent Disabling.--Subsection (a) of 
     section 1414 of title 10, United States Code, is amended by 
     striking paragraphs (1) and (2) and inserting the following 
     new paragraphs:
       ``(1) In general.--Subject to paragraphs (2), (3), and (4) 
     and subsection (b), a member or former member of the 
     uniformed services who is entitled for any month to retired 
     pay and who is also entitled for that month to veterans' 
     disability compensation for a service-connected disability or 
     combination of service-connected disabilities that is 
     compensable under the laws administered by the Secretary of 
     Veterans Affairs (hereinafter in this section referred to as 
     `qualified retiree') is entitled to be paid both for that 
     month without regard to sections 5304 and 5305 of title 38.
       ``(2) One-year phase-in for qualified retirees with total 
     disabilities.--During the period beginning on January 1, 
     2004, and ending on December 31, 2004, payment of retired pay 
     to a qualified retiree is subject to subsection (c) if the 
     qualified retiree is any of the following:
       ``(A) A qualified retiree receiving veterans' disability 
     compensation for a disability rated as 100 percent disabling 
     by the Secretary of Veterans Affairs.
       ``(B) A qualified retiree receiving veterans' disability 
     compensation at the rate payable for a disability rated as 
     100 percent disabling by reason of a determination of 
     individual unemployability.
       ``(3) 10-year phase-in for qualified retirees with 
     disabilities rated 50 percent disabling or higher.--During 
     the period beginning on January 1, 2004, and ending on 
     December 31, 2013, payment of retired pay to a qualified 
     retiree is subject to subsection (c) if the qualified retiree 
     is entitled to veterans' disability compensation for a 
     service-connected disability or combination of service-
     connected disabilities that is rated not less than 50 percent 
     disabling by the Secretary of Veterans Affairs.
       ``(4) 10-year phase-in for qualified retirees with 
     compensable disabilities rated less than 50 percent 
     disabling.--During the period beginning on January 1, 2016, 
     and ending on December 31, 2025, payment of retired pay to a 
     qualified retiree is subject to subsection (d) if the 
     qualified retiree is entitled to veterans' disability 
     compensation for a service-connected disability or 
     combination of service-connected disabilities that is rated 
     less than 50 percent disabling by the Secretary of Veterans 
     Affairs but is compensable under the laws administered by the 
     Secretary of Veterans Affairs.''.
       (b) Phase-in for Qualified Retirees With Compensable 
     Disabilities Rated Less Than 50 Percent Disabling.--Such 
     section is further amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Phase-in of Full Concurrent Receipt for Qualified 
     Retirees With Compensable Disabilities Rated Less Than 50 
     Percent Disabling.--During the period beginning on January 1, 
     2016, and ending on December 31, 2025, retired pay payable to 
     a qualified retiree that pursuant to subsection (a)(4) is 
     subject to this subsection shall be determined as follows:
       ``(1) Calendar year 2016.--For a month during 2016, the 
     amount of retired pay payable to a qualified retiree is the 
     amount (if any) of retired pay in excess of the current 
     baseline offset, plus $100.
       ``(2) Calendar year 2017.--For a month during 2017, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount specified in paragraph (1) for that 
     qualified retiree; and
       ``(B) 10 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount specified in paragraph 
     (1) for that member's disability.
       ``(3) Calendar year 2018.--For a month during 2018, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (2) for that 
     qualified retiree; and
       ``(B) 20 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (2) for that qualified retiree.
       ``(4) Calendary year 2018.--For a month during 2019, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (3) for that 
     qualified retiree; and
       ``(B) 30 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (3) for that qualified retiree.
       ``(5) Calendar year 2020.--For a month during 2020, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (4) for that 
     qualified retiree; and
       ``(B) 40 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (4) for that qualified retiree.
       ``(6) Calendar year 2021.--For a month during 2021, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (5) for that 
     qualified retiree; and
       ``(B) 50 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (5) for that qualified retiree.
       ``(7) Calendar year 2022.--For a month during 2022, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (6) for that 
     qualified retiree; and
       ``(B) 60 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (6) for that qualified retiree.
       ``(8) Calendar year 2023.--For a month during 2023, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (7) for that 
     qualified retiree; and
       ``(B) 70 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (7) for that qualified retiree.
       ``(9) Calendar year 2024.--For a month during 2024, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (8) for that 
     qualified retiree; and
       ``(B) 80 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (8) for that qualified retiree.
       ``(10) Calendar year 2025.--For a month during 2025, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (9) for that 
     qualified retiree; and
       ``(B) 90 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (9) for that qualified retiree.
       ``(11) General limitation.--Retired pay determined under 
     this subsection for a qualified retiree, if greater than the 
     amount of retired pay otherwise applicable to that qualified 
     retiree, shall be reduced to the amount of retired pay 
     otherwise applicable to that qualified retiree.''.
       (c) Conforming Amendments to Phase-in for Qualified 
     Retirees With Disabilities Rated 50 Percent Disabling or 
     Higher.--Subsection (c) of such section is amended--
       (1) in the subsection caption, by inserting ``for Qualified 
     Retirees With Disabilities Rated 50 Percent Disabling or 
     Higher'' after ``Full Concurrent Receipt''; and
       (2) by striking ``the second sentence of subsection 
     (a)(1)'' and inserting ``subsection (a)(3)''.
       (d) Clerical Amendments.--
       (1) The heading of such section is amended to read as 
     follows:

     ``Sec. 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.''.

       (e) Effective Date.--The amendments made by this section 
     shall take effect on December 31, 2015, and shall apply to 
     payments for months beginning on or after that date.

     SEC. 644. COORDINATION OF SERVICE ELIGIBILITY FOR COMBAT-
                   RELATED SPECIAL COMPENSATION AND CONCURRENT 
                   RECEIPT.

       (a) Amendment To Standardize Similar Provisions.--Paragraph 
     (2) of section 1414(b) of title 10, United States Code, is 
     amended to read as follows:
       ``(2) Special rule for retirees with fewer than 20 years of 
     service.--The retired pay of a qualified retiree who is 
     retired under chapter 61 of this title with fewer than 20 
     years of creditable service is subject to reduction by the 
     lesser of--
       ``(A) the amount of the reduction under sections 5304 and 
     5305 of title 38; or
       ``(B) the amount (if any) by which the amount of the 
     member's retired pay under such chapter exceeds the amount 
     equal to 2\1/2\ percent of the member's years of creditable 
     service multiplied by the member's retired pay base under 
     section 1406(b)(1) or 1407 of this title, whichever is 
     applicable to the member.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on July 1, 2015, and shall apply to 
     payments for months beginning on or after that date.
                                 ______