I 

108TH CONGRESS 

1ST SESSION H. R. 2569

To improve benefits for members of the Armed Forces and veterans and 

for their dependents and survivors. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2003

Mr. EDWARDS (for himself, Mr. EVANS, Mr. SKELTON, Mr. MARSHALL, and 

Mr. FILNER) introduced the following bill; which was referred to the 

Committee on Armed Services, and in addition to the Committees on Veterans’ Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL

To improve benefits for members of the Armed Forces and 

veterans and for their dependents and survivors.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Salute to Veterans and the Armed Forces Act of 2003’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows:

Sec. 1. Short title; table of contents. 

Sec. 2. Full payment of both retired pay and compensation to disabled military 

retirees. 
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Sec. 3. Repeal of dependency and indemnity compensation offset from survivor 

benefit plan surviving spouse annuities. 

Sec. 4. Increase in amount of basic educational assistance for members of the 

Selected Reserve. 

Sec. 5. Application of index based on costs of higher learning. 

Sec. 6. One-time bonus for certain service in connection with Operation Iraqi 

Freedom or Operation Enduring Freedom. 

Sec. 7. Authorization of additional funding for veterans medical care. 

Sec. 8. Interim payments under certain veterans claims when decision is delayed following remand for expedited consideration. 

Sec. 9. Prohibition on increases in medication copayment for veterans and imposition of healthcare enrollment fee for veterans. 

Sec. 10. Information for separating servicemembers on veterans benefits information. 

Sec. 11. Veterans outreach programs. 

Sec. 12. Retention of 38.6 percent top individual income tax rate.

1 SEC. 2. FULL PAYMENT OF BOTH RETIRED PAY AND COM2 PENSATION TO DISABLED MILITARY RETIR3 EES. 

4 (a) RESTORATION OF FULL RETIRED PAY BENE5 FITS.—Section 1414 of title 10, United States Code, is 

6 amended to read as follows: 

7 ‘‘§ 1414. Members eligible for retired pay who have 

8 service-connected disabilities: payment of 

9 retired pay and veterans’ disability com10 pensation 

11 ‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM12 PENSATION.—Except as provided in subsection (b), a 

13 member or former member of the uniformed services who 

14 is entitled to retired pay (other than as specified in sub15 section (c)) and who is also entitled to veterans’ disability 

16 compensation is entitled to be paid both without regard 

17 to sections 5304 and 5305 of title 38. 
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1 ‘‘(b) SPECIAL RULE FOR CHAPTER 61 CAREER RE2 TIREES.—The retired pay of a member retired under 

3 chapter 61 of this title with 20 years or more of service 

4 otherwise creditable under section 1405 of this title at the 

5 time of the member’s retirement is subject to reduction 

6 under sections 5304 and 5305 of title 38, but only to the 

7 extent that the amount of the member’s retired pay under 

8 chapter 61 of this title exceeds the amount of retired pay 

9 to which the member would have been entitled under any 

10 other provision of law based upon the member’s service 

11 in the uniformed services if the member had not been re12 tired under chapter 61 of this title. 

13 ‘‘(c) EXCEPTION.—Subsection (a) does not apply to 

14 a member retired under chapter 61 of this title with less 

15 than 20 years of service otherwise creditable under section 

16 1405 of this title at the time of the member’s retirement. 

17 ‘‘(d) DEFINITIONS.—In this section: 

18 ‘‘(1) The term ‘retired pay’ includes retainer 

19 pay, emergency officers retirement pay, and naval 

20 pension. 

21 ‘‘(2) The term ‘veterans’ disability compensa22 tion’ has the meaning given the term ‘compensation’ 

23 in section 101(13) of title 38.’’. 
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1 (b) REPEAL OF SPECIAL COMPENSATION PRO2 GRAMS.—Sections 1413 and 1413a of such title are re3 pealed. 

4 (c) CLERICAL AMENDMENT.—The table of sections 

5 at the beginning of such chapter is amended by striking 

6 the items relating to sections 1413, 1413a, and 1414 and 

7 inserting the following:

‘‘1414. Members eligible for retired pay who have service-connected disabilities: 

payment of retired pay and veterans’ disability compensation.’’.

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall take effect on—

10 (1) the first day of the first month that begins 

11 after the date of the enactment of this Act; or 

12 (2) the first day of the fiscal year that begins 

13 in the calendar year in which this Act is enacted, if 

14 later than the date specified in paragraph (1). 

15 (e) RETROACTIVE BENEFITS.—No benefits may be 

16 paid to any person by reason of section 1414 of title 10, 

17 United States Code, as amended by subsection (a), for any 

18 period before the effective date specified in subsection (a). 

19 SEC. 3. REPEAL OF DEPENDENCY AND INDEMNITY COM20 PENSATION OFFSET FROM SURVIVOR BEN21 EFIT PLAN SURVIVING SPOUSE ANNUITIES. 

22 (a) REPEAL.—Subsections (c), (e), and (k) of section 

23 1450 of title 10, United States Code, and subsection (c)(2) 

24 of section 1451 of such title are repealed. 
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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a)—

3 (1) shall take effect on the later of October 1, 

4 2003, or the date of the enactment of this Act; and 

5 (2) shall apply with respect to payment of an6 nuities under subchapter II of chapter 73 of title 10, 

7 United States Code, for months beginning on or 

8 after that date. 

9 (c) RECOUPMENT OF CERTAIN AMOUNTS PRE10 VIOUSLY REFUNDED TO SBP RECIPIENTS.—(1) A sur11 viving spouse who is in receipt of an SBP annuity that 

12 is in effect before the date specified in subsection (b) and 

13 that is adjusted by reason of the amendments made by 

14 subsection (a) and who had previously received an SBP 

15 retired pay refund shall repay an amount determined 

16 under paragraph (2). Any such repayment shall be made 

17 in the same manner as a repayment under subsection 

18 (k)(2) of section 1450 of title 10, United States Code, as 

19 in effect on the day before the date of the enactment of 

20 this Act. 

21 (2) The amount of a repayment under paragraph (1) 

22 shall be the amount that bears the same ratio to the 

23 amount of that refund as the surviving spouse’s life ex24 pectancy (determined in accordance with standard actu25 arial practices) bears to the anticipated total duration of 
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1 the annuity (determined as the sum of such life expectancy 

2 and the duration of the annuity already received). 

3 (3) In this subsection: 

4 (A) The term ‘‘SBP annuity’’ means an annu5 ity under the program established under subchapter 

6 II of chapter 73 of title 10, United States Code. 

7 (B) The term ‘‘SBP retired pay refund’’ means 

8 a refund under subsection (e) of section 1450 of title 

9 10, United States Code, as in effect before the date 

10 specified in subsection (b). 

11 SEC. 4. INCREASE IN AMOUNT OF BASIC EDUCATIONAL AS12 SISTANCE FOR MEMBERS OF THE SELECTED 

13 RESERVE. 

14 (a) IN GENERAL.—(1) Paragraph (1) of section 

15 16131(b) of title 10, United States Code, is amended—

16 (A) in subparagraph (A), by striking ‘‘$251’’ 

17 and inserting ‘‘$600’’; 

18 (B) in subparagraph (B), by striking ‘‘$188’’ 

19 and inserting ‘‘$450’’; and 

20 (C) in subparagraph (C), by striking ‘‘$125’’ 

21 and inserting ‘‘$300’’. 

22 (2) The amendments made by paragraph (1) shall 

23 take effect on October 1, 2004, and shall apply with re24 spect to educational assistance allowances under section 
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1 16131(b)(1) of such title paid for months after September 

2 2004. 

3 (3) In the case of an educational assistance allowance 

4 under such section paid for months occurring during fiscal 

5 year 2004—

6 (A) subparagraph (A) of such section shall be 

7 applied by substituting ‘‘$475’’ for ‘‘$251’’; 

8 (B) subparagraph (B) of such section shall be 

9 applied by substituting ‘‘$325’’ for ‘‘$188’’; and 

10 (C) subparagraph (C) of such section shall be 

11 applied by substituting ‘‘$215’’ for ‘‘$125’’. 

12 (b) NO ADJUSTMENT FOR FISCAL YEARS 2004 AND

13 2005.—Section 16131(b)(2) of such title shall not apply 

14 to rates of basic educational assistance paid under such 

15 section during fiscal years 2004 and 2005. 

16 SEC. 5. APPLICATION OF INDEX BASED ON COSTS OF HIGH17 ER LEARNING. 

18 (a) IN GENERAL.—Section 16131(b)(2) of title 10, 

19 United States Code, is amended to read as follows: 

20 ‘‘(2)(A) With respect to any fiscal year beginning on 

21 or after October 1, 2005, the Secretary shall provide a 

22 percentage increase (rounded to the nearest dollar) in the 

23 rates payable under paragraph (1) equal to the percentage 

24 (as determined by the Secretary) by which—
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1 ‘‘(i) the average monthly costs of tuition and 

2 expenses for commuter students at public institu3 tions of higher learning that award baccalaureate 

4 degrees for purposes of paragraph (1) for the fiscal 

5 year involved, exceeds 

6 ‘‘(ii) such average monthly costs for the pre7 ceding fiscal year. 

8 ‘‘(B) The Secretary shall make the determination 

9 under subparagraph (A) after consultation with the Sec10 retary of Education. 

11 ‘‘(C) A determination made under subparagraph (A) 

12 in a year shall take effect on October 1 of that year and 

13 apply with respect to basic educational assistance allow14 ances payable under this section for the fiscal year begin15 ning in that year. 

16 ‘‘(D) Not later than September 30 each year, the Sec17 retary shall publish in the Federal Register the average 

18 monthly costs of tuition and expenses as determined under 

19 subparagraph (A) in that year.’’. 

20 (b) CONFORMING AMENDMENT.—(1) Section 

21 3015(h) of title 38, United States Code, is amended by 

22 striking ‘‘by which—’’ and all that follows and inserting 

23 ‘‘determined by the Secretary under section 16131(b)(2) 

24 of title 10 for the fiscal year involved.’’. 
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1 (2) The amendment made by paragraph (1) shall 

2 apply to fiscal years beginning on or after October 1, 

3 2005. 

4 SEC. 6. ONE-TIME BONUS FOR CERTAIN SERVICE IN CON5 NECTION WITH OPERATION IRAQI FREEDOM 

6 OR OPERATION ENDURING FREEDOM. 

7 (a) ARMY, NAVY, AIR FORCE, AND MARINE

8 CORPS.—The Secretary of Defense shall provide for the 

9 payment of a bonus under this section to each member 

10 of the Army, Navy, Air Force, or Marine Corps who, at 

11 any time during the service of the member in connection 

12 with Operation Iraqi Freedom or Operation Enduring 

13 Freedom, satisfied or satisfies the eligibility criteria for 

14 receipt of special pay under section 310 of title 37, United 

15 States Code, for duty subject to hostile fire or imminent 

16 danger. 

17 (b) COAST GUARD.—The Secretary of Homeland Se18 curity shall provide for the payment of a bonus under this 

19 section to each member of the Coast Guard who, at any 

20 time during the service of the member in connection with 

21 Operation Iraqi Freedom or Operation Enduring Free22 dom, satisfied or satisfies the eligibility criteria for receipt 

23 of special pay under such section. 

24 (c) AMOUNT OF BONUS.—The amount of the bonus 

25 paid under this section shall be equal to $1,000. 
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1 (d) ENTITLEMENT LIMITED TO SINGLE BONUS PAY2 MENT.—A member may not receive more than one bonus 

3 under the authority of this section. 

4 SEC. 7. AUTHORIZATION OF ADDITIONAL FUNDING FOR 

5 VETERANS MEDICAL CARE. 

6 (a) AUTHORIZATION.—There are authorized to be ap7 propriated to the Department of Veterans Affairs, in addi8 tion to amounts otherwise authorized to be appropriated, 

9 the amount of $1,000,000,000 for each of fiscal years 

10 2004 through 2013. 

11 (b) IMPROVED ACCESS TO CARE.—Amounts appro12 priated pursuant to the authorization of appropriations in 

13 subsection (a) shall be used to ensure that veterans seek14 ing healthcare from the Department of Veterans Affairs 

15 receive their initial appointment for healthcare for a date 

16 that is not later than 30 days after the date on which 

17 the request is made. 

18 SEC. 8. INTERIM PAYMENTS UNDER CERTAIN VETERANS 

19 CLAIMS WHEN DECISION IS DELAYED FOL20 LOWING REMAND FOR EXPEDITED CONSID21 ERATION. 

22 (a) IN GENERAL.—(1) Chapter 53 of title 38, United 

23 States Code, is amended by adding at the end the fol24 lowing new section: 
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1 ‘‘§ 5320. Interim benefits under certain remanded 

2 cases 

3 ‘‘(a) INTERIM BENEFITS.—When a claim for benefits 

4 under the jurisdiction of the Secretary is remanded by the 

5 United States Court of Appeals for Veterans Claims or 

6 by the Board for Veterans’ Appeals in a case to which 

7 section 302 of Public Law 103–446 (38 U.S.C. 5101 note) 

8 applies, if the Secretary does not make a decision on the 

9 matter within 180 days of the date of the remand decision, 

10 then until such matter is finally decided, the Secretary 

11 shall pay an interim benefit in the amount of $500 per 

12 month to each claimant under the claim. Such payments 

13 shall commence as of the first month beginning after the 

14 end of such 180-day period. 

15 ‘‘(b) EFFECT ON INTERIM BENEFIT PAYMENTS OF

16 FINAL DECISION ON CLAIM.—When a claim with respect 

17 to which interim benefits are being paid under subsection 

18 (b) is finally decided—

19 ‘‘(1) if the final decision is to award benefits, 

20 the amounts paid as interim benefits shall be consid21 ered to be an advance payment of benefits owed for 

22 any period before the date of such final decision (ex23 cept that if the total amount of interim benefits paid 

24 is greater than the amount of retroactive benefits, 

25 the amount of the difference shall not be considered 

26 to be an overpayment for any purpose); and 
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1 ‘‘(2) if the final decision is not to award bene2 fits, the amounts paid as interim benefits shall not 

3 be considered to be an overpayment for any pur4 pose.’’. 

5 (2) The table of sections at the beginning of such 

6 chapter is amended by adding at the end the following 

7 new item:

‘‘5320. Interim benefits under certain remanded cases.’’.

8 (b) EFFECTIVE DATE.—Section 5320 of title 38, 

9 United States Code, as added by subsection (a), shall 

10 apply with respect to any decision remanded by the Court 

11 of Appeals for Veterans Claims or the Board of Veterans’ 

12 Appeals on or after the date of the enactment of this Act. 

13 (c) REPORT.—Not later than six months after the 

14 date of the enactment of this Act, the Secretary of Vet15 erans Affairs shall submit to Congress a report on meas16 ures the Secretary intends to take to expedite the proc17 essing of remanded claims for veterans benefits. 

18 SEC. 9. PROHIBITION ON INCREASES IN MEDICATION CO19 PAYMENT FOR VETERANS AND IMPOSITION 

20 OF HEALTHCARE ENROLLMENT FEE FOR 

21 VETERANS. 

22 (a) MEDICATION COPAYMENTS.—During the period 

23 beginning on the date of the enactment of this Act and 

24 ending on October 1, 2004, the Secretary of Veterans Af25 fairs may not implement under subsection (b) of section 
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1 1722A of title 38, United States Code, an increase in the 

2 copayment for medications required under subsection (a) 

3 of that section. 

4 (b) ENROLLMENT FEE.—During the period begin5 ning on the date of the enactment of this Act and ending 

6 on October 1, 2004, the Secretary of Veterans Affairs may 

7 not implement an enrollment fee for veterans enrolling (or 

8 renewing enrollment) in the Department of Veterans Af9 fairs healthcare system under section 1705 of such title. 

10 SEC. 10. INFORMATION FOR SEPARATING 

11 SERVICEMEMBERS ON VETERANS BENEFITS 

12 INFORMATION. 

13 (a) INFORMATION ON FINAL PAY STUB.—Section 

14 1142 of title 10, United States Code, is amended by add15 ing at the end the following new subsection: 

16 ‘‘(d) INFORMATION ON ACCESS TO VETERANS BENE17 FITS.—The Secretary concerned shall include on the final 

18 statement of pay and allowances provided to a member 

19 who is separating from active duty or an active status in20 formation on how to contact the Department of Veterans 

21 Affairs for information concerning veterans benefits and 

22 the Department of Labor for information concerning em23 ployment opportunities.’’. 

24 (b) EFFECTIVE DATE.—Subsection (d) of section 

25 1142 of title 10, United States Code, as added by sub-
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1 section (a), shall apply with respect to persons separating 

2 from active duty or an active status in the Armed Forces 

3 after the end of the 60-day period beginning on the date 

4 of the enactment of this Act. 

5 SEC. 11. VETERANS OUTREACH PROGRAMS. 

6 (a) INFORMATION ON VETERANS BENEFITS.—Sec7 tion 7722(c) of title 38, United States Code, is amended 

8 by adding at the end the following new paragraphs: 

9 ‘‘(3) Information provided under this subsection shall 

10 include information on how to apply for benefits for which 

11 the veteran or dependent may be eligible, including infor12 mation about assistance available under subsection (d). 

13 ‘‘(4) In the case of veterans or dependents who are 

14 members of distinct beneficiary populations (such as sur15 vivors of veterans), the Secretary shall ensure that infor16 mation provided under this subsection includes specific in17 formation about benefits relating to that population.’’. 

18 (b) ANNUAL OUTREACH PLAN.—(1) Chapter 77 of 

19 such title is amended by inserting at the end of subchapter 

20 II the following new section: 

21 ‘‘§ 7728. Annual outreach plan 

22 ‘‘(a) The Secretary shall prepare an annual plan for 

23 the conduct of outreach activities under this subchapter. 

24 The Secretary shall include in the annual plan—
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1 ‘‘(1) efforts to identify veterans who are not 

2 otherwise enrolled or registered with the Department 

3 for benefits or services under programs administered 

4 by the Secretary; and 

5 ‘‘(2) provisions for informing veterans and de6 pendents of any changes in benefit programs or 

7 health care eligibility. 

8 ‘‘(b) In developing the annual plan, the Secretary 

9 shall consult with the following: 

10 ‘‘(1) Directors or other responsible officials of 

11 veterans service organizations. 

12 ‘‘(2) Directors or other responsible officials of 

13 local education and training programs. 

14 ‘‘(3) Representatives of veterans outreach pro15 grams. 

16 ‘‘(4) Local veterans employment representa17 tives. 

18 ‘‘(5) Business and professional organizations. 

19 ‘‘(6) Other appropriate individuals or organiza20 tions that could assist veterans in adjusting to a 

21 self-sufficient civilian life. 

22 ‘‘(c) The annual report required by section 7726 of 

23 this title shall include specific information concerning the 

24 effectiveness of the outreach plan developed pursuant to 

25 this section.’’. 
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1 (2) The table of sections at the beginning of such 

2 chapter is amended by inserting after the item relating 

3 to section 7727 the following new item:

‘‘7728. Annual outreach plan.’’.

4 SEC. 12. RETENTION OF 38.6 PERCENT TOP INDIVIDUAL IN5 COME TAX RATE. 

6 (a) IN GENERAL.—The table contained in section 

7 1(i)(2) of the Internal Revenue Code of 1986, as amended 

8 by the Jobs and Growth Tax Relief Reconciliation Act of 

9 2003, is amended by striking ‘‘35.0%’’ and inserting 

10 ‘‘38.6%’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2002.

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