II 

Calendar No. 79 

109TH CONGRESS 

1ST SESSION S. 845 

To amend title 10, United States Code, to permit retired servicemembers 

who have a service-connected disability to receive disability compensation 

and either retired pay or Combat-Related Special Compensation and 

to eliminate the phase-in period with respect to such concurrent receipt. 

IN THE SENATE OF THE UNITED STATES 

APRIL 19, 2005 

Mr. REID introduced the following bill; which was read the first time 

APRIL 20, 2005 

Read the second time and placed on the calendar 

A BILL 

To amend title 10, United States Code, to permit retired 

servicemembers who have a service-connected disability 

to receive disability compensation and either retired pay 

or Combat-Related Special Compensation and to eliminate the phase-in period with respect to such concurrent 

receipt. 

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

3 SECTION 1. FINDINGS. 

4 Congress finds the following: 
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1 (1) For more than 100 years before 1999, all 

2 disabled military retirees were required to fund their 

3 own veterans’ disability compensation by forfeiting 

4 $1 of earned retired pay for each $1 received in vet5 erans’ disability compensation. 

6 (2) Since 1999, Congress has enacted legisla7 tion every year to progressively expand eligibility cri8 teria for relief of the retired pay disability offset and 

9 further reduce the burden of financial sacrifice on 

10 disabled military retirees. 

11 (3) Absent adequate funding to eliminate the 

12 sacrifice for all disabled retirees, Congress has given 

13 initial priority to easing financial inequities for the 

14 most severely disabled and for combat-disabled retir15 ees. 

16 (4) In the interest of maximizing eligibility 

17 within cost constraints, Congress effectively has au18 thorized full concurrent receipt for all qualifying re19 tirees with 100 percent disability ratings and all 

20 with combat-related disability ratings, while phasing 

21 out the disability offset to retired pay over 10 years 

22 for retired members with noncombat-related, service23 connected disability ratings of 50 percent to 90 per24 cent. 
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1 (5) In pursuing these good-faith efforts, Con2 gress acknowledges the regrettable necessity of cre3 ating new thresholds of eligibility that understand4 ably are disappointing to disabled retirees who fall 

5 short of meeting those new thresholds. 

6 (6) Congress is not content with the status quo. 

7 SEC. 2. SENSE OF CONGRESS. 

8 It is the sense of Congress that military retired pay 

9 earned by service and sacrifice in defending the Nation 

10 should not be reduced because a military retiree is also 

11 eligible for veterans’ disability compensation awarded for 

12 service-connected disability. 

13 SEC. 3. ELIGIBILITY FOR PAYMENT OF BOTH RETIRED PAY 

14 AND VETERANS’ DISABILITY COMPENSATION 

15 FOR CERTAIN ADDITIONAL MILITARY RETIR16 EES WITH COMPENSABLE SERVICE-CON17 NECTED DISABILITIES. 

18 (a) EXTENSION OF CONCURRENT RECEIPT AUTHOR19 ITY TO RETIREES WITH SERVICE-CONNECTED DISABIL20 ITIES RATED LESS THAN 50 PERCENT.—Section 1414(a) 

21 of title 10, United States Code, is amended to read as 

22 follows: 

23 ‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM24 PENSATION.— 
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1 ‘‘(1) IN GENERAL.—Subject to subsection (b), 

2 an individual who is a qualified retiree for any 

3 month is entitled to be paid both retired pay and 

4 veterans’ disability compensation for that month 

5 without regard to sections 5304 and 5305 of title 

6 38. 

7 ‘‘(2) QUALIFIED RETIREES.—For purposes of 

8 this section, a qualified retiree, with respect to any 

9 month, is a member or former member of the uni10 formed services who— 

11 ‘‘(A) is entitled to retired pay, other than 

12 in the case of a member retired under chapter 

13 61 of this title with less than 20 years of serv14 ice creditable under section 1405 of this title 

15 and less than 20 years of service computed 

16 under section 12732 of this title; and 

17 ‘‘(B) is entitled for that month to veterans’ 

18 disability compensation.’’. 

19 (b) REPEAL OF PHASE-IN OF CONCURRENT RECEIPT

20 OF RETIRED PAY AND VETERANS’ DISABILITY COM21 PENSATION.—Section 1414 of title 10, United States 

22 Code, is further amended— 

23 (1) by striking subsection (c); 

24 (2) by redesignating subsections (d) and (e) as 

25 subsections (c) and (d), respectively; and 
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1 (3) in subsection (d), as redesignated, by strik2 ing subparagraph (4). 

3 (c) CLERICAL AMENDMENTS.— 

4 (1) The heading for section 1414 of title 10, 

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

6 ‘‘§ 1414. Members eligible for retired pay who are also 

7 eligible for veterans’ disability compensa8 tion: concurrent payment of retired pay 

9 and disability compensation’’. 

10 (2) The item relating to such section in the 

11 table of sections at the beginning of chapter 71 of 

12 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.’’. 

13 SEC. 4. COORDINATION OF SERVICE ELIGIBILITY FOR COM14 BAT-RELATED SPECIAL COMPENSATION AND 

15 CONCURRENT RECEIPT. 

16 (a) ELIGIBILITY FOR TERA RETIREES.—Section of 

17 section 1413a(c) of title 10, United States Code, is amend18 ed by striking ‘‘entitled to retired pay who—’’ and all that 

19 follows and inserting ‘‘who— 

20 ‘‘(1) is entitled to retired pay, other than a 

21 member retired under chapter 61 of this title with 

22 less than 20 years of service creditable under section 

23 1405 of this title and less than 20 years of service 

24 computed under section 12732 of this title; and 
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1 ‘‘(2) has a combat-related disability’’. 

2 (b) AMENDMENTS TO STANDARDIZE SIMILAR PROVI3 SIONS.— 

4 (1) CLERICAL AMENDMENT.—The heading for 

5 paragraph (3) of section 1413a(b) of title 10, United 

6 States Code, is amended by striking ‘‘RULES’’ and 

7 inserting ‘‘RULE’’. 

8 (2) STANDARDIZATION WITH CRSC RULE FOR

9 CHAPTER 61 RETIREES.—Section 1414(b) of such 

10 title is amended— 

11 (A) by striking ‘‘SPECIAL RULES’’ and all 

12 that follows through ‘‘is subject to’’ in para13 graph (1) and inserting ‘‘SPECIAL RULE FOR

14 CHAPTER 61 DISABILITY RETIREES.—In the 

15 case of a qualified retiree who is retired under 

16 chapter 61 of this title, the retired pay of the 

17 member is subject to’’; and 

18 (B) by striking paragraph (2). 

19 SEC. 5. EFFECTIVE DATE. 

20 The amendments made by this Act shall take effect 

21 as of January 1, 2006, and shall apply to payments for 

22 months beginning on or after that date. 

Calendar No. 79 

109TH CONGRESS 

1ST SESSION S. 845 

A BILL 

To amend title 10, United States Code, to permit 

receipt. phase-in period with respect to such concurrent Special Compensation and to eliminate the tion and either retired pay or Combat-Related nected disability to receive disability compensaretired servicemembers who have a service-conAPRIL 20, 2005 

Read the second time and placed on the calendar