I 

112TH CONGRESS 

1ST SESSION H. R. 333 

To amend title 10, United States Code, to permit retired members of the 

Armed Forces who have a service-connected disability rated less than 

50 percent to receive concurrent payment of both retired pay and veterans’ disability compensation, to eliminate the phase-in period for concurrent receipt, to extend eligibility for concurrent receipt to chapter 

61 disability retirees with less than 20 years of service, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 19, 2011 

Mr. BISHOP of Georgia (for himself, Mr. ROSS of Arkansas, Ms. BERKLEY, 

Mr. LOEBSACK, Mr. REYES, Mr. BARTLETT, Mr. MCGOVERN, Mr. 

CONNOLLY of Virginia, Ms. BROWN of Florida, Mr. WESTMORELAND, 

Ms. CASTOR of Florida, Mr. BRALEY of Iowa, Mr. BRADY of Pennsylvania, Mr. SCHIFF, Mr. HOLDEN, Mr. HOLT, Mr. DAVID SCOTT of Georgia, Mr. FILNER, Mr. DONNELLY of Indiana, Mr. MCINTYRE, Mr. 

TIERNEY, Mr. WALZ of Minnesota, Mr. DEFAZIO, Ms. BORDALLO, Mr. 

BOSWELL, Mr. COURTNEY, Mrs. BLACKBURN, Mr. BACHUS, Mr. CRITZ, 

Mr. MORAN, Ms. SLAUGHTER, Mr. MICHAUD, Mr. WOLF, Mr. WU, Mr. 

KISSELL, Mr. GARAMENDI, Mr. BOREN, Ms. TSONGAS, Mr. PRICE of 

North Carolina, Mr. JOHNSON of Georgia, Mrs. MALONEY, Mr. 

YARMUTH, Mr. GRIJALVA, Mr. FRANK of Massachusetts, Mr. SHULER, 

Mrs. DAVIS of California, Mr. CARNAHAN, Ms. FOXX, Mr. WITTMAN, Mr. 

RAHALL, Ms. NORTON, Mr. PETERSON, Mr. KILDEE, Mr. MEEKS, Mr. 

ROGERS of Alabama, Mr. AL GREEN of Texas, Mr. ALEXANDER, Mr. 

KUCINICH, Ms. KAPTUR, Mr. ENGEL, Mr. GUTIERREZ, Ms. LORETTA

SANCHEZ of California, Mr. BERMAN, Ms. PINGREE of Maine, Mr. LONG, 

Mr. HIGGINS, Mr. BARROW, Mr. SHUSTER, Ms. SUTTON, Mr. CICILLINE, 

Mr. PETERS, Mr. MARKEY, and Mr. BUTTERFIELD) introduced the following bill; which was referred to the Committee on Armed Services, and 

in addition to the Committee on Veterans’ Affairs, 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 


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A BILL 

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

members of the Armed Forces who have a service-connected disability rated less than 50 percent to receive 

concurrent payment of both retired pay and veterans’ 

disability compensation, to eliminate the phase-in period 

for concurrent receipt, to extend eligibility for concurrent 

receipt to chapter 61 disability retirees with less than 

20 years of service, and for other purposes. 

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. 

4 This Act may be cited as the ‘‘Disabled Veterans Tax 

5 Termination Act’’. 

6 SEC. 2. CONCURRENT RECEIPT OF BOTH RETIRED PAY AND 

7 VETERANS’ DISABILITY COMPENSATION FOR 

8 MILITARY RETIREES WITH COMPENSABLE 

9 SERVICE-CONNECTED DISABILITIES. 

10 (a) INCLUSION OF RETIREES WITH SERVICE-CON11 NECTED DISABILITIES RATED LESS THAN 50 PER12 CENT.—Subsection (a) of section 1414 of title 10, United 

13 States Code, is amended— 

14 (1) by striking ‘‘COMPENSATION’’ in the sub15 section heading and all that follows through ‘‘Sub16 ject’’ and inserting ‘‘COMPENSATION.—Subject’’; 


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1 (2) by striking ‘‘qualifying service-connected 

2 disability’’ and inserting ‘‘service-connected dis3 ability’’; and 

4 (3) by striking paragraph (2). 

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

6 OF RETIRED PAY AND VETERANS’ DISABILITY COM7 PENSATION.—Such section is further amended— 

8 (1) in subsection (a), as amended by subsection 

9 (a) of this section, by striking the final sentence; 

10 (2) by striking subsection (c) and redesignating 

11 subsections (d) and (e) as subsections (c) and (d), 

12 respectively; and 

13 (3) in subsection (d), as so redesignated, by 

14 striking paragraphs (3) and (4). 

15 (c) INCLUSION OF DISABILITY RETIREES WITH LESS

16 THAN 20 YEARS OF SERVICE.—Subsection (b) of such 

17 section is amended— 

18 (1) in paragraph (1), by striking ‘‘member re19 tired’’ and inserting ‘‘qualified retiree who is re20 tired’’; and 

21 (2) by striking paragraph (2) and inserting the 

22 following new paragraph: 

23 ‘‘(2) DISABILITY RETIREES WITH LESS THAN 20

24 YEARS OF SERVICE.—The retired pay of a qualified 

25 retiree who is retired under chapter 61 of this title 


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1 with fewer than 20 years of creditable service is sub2 ject to reduction under sections 5304 and 5305 of 

3 title 38, but only by the amount (if any) by which 

4 the amount of the member’s retired pay under such 

chapter exceeds the amount equal to 21 5 ⁄2 percent of 

6 the member’s years of creditable service multiplied 

7 by the member’s retired pay base under section 

8 1406(b)(1) or 1407 of this title, whichever is appli9 cable to the member.’’. 

10 (d) CLERICAL AMENDMENTS.— 

11 (1) SECTION HEADING.—The heading for such 

12 section is amended to read as follows: 

13 ‘‘§ 1414. Members eligible for retired pay who are also 

14 eligible for veterans’ disability compensa15 tion: concurrent payment of retired pay 

16 and disability compensation’’. 

17 (2) TABLE OF SECTIONS.—The item relating to 

18 such section in the table of sections at the beginning 

19 of chapter 71 of such title is amended to read as fol20 lows: 

‘‘1414. Members eligible for retired pay who are also eligible for veterans’ disability compensation: concurrent payment of retired pay and 

disability compensation.’’. 

21 (e) CONFORMING AMENDMENT.—Section 1413a(f) of 

22 such title is amended by striking ‘‘Subsection (d)’’ and 

23 inserting ‘‘Subsection (c)’’. 


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1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on the first day of the first 

3 month beginning after the date of the enactment of this 

4 Act and shall apply to payments for months beginning on 

5 or after that date. 

6 SEC. 3. COMBAT-RELATED SPECIAL COMPENSATION TECH7 NICAL CORRECTIONS REGARDING AMOUNT 

8 OF MONTHLY PAYMENTS FOR CHAPTER 61 

9 DISABILITY RETIREES. 

10 (a) TECHNICAL CORRECTIONS.—Section 1413a(b)(3) 

11 of title 10, United States Code, is amended— 

12 (1) in subparagraph (A), by striking ‘‘shall be 

13 reduced’’ and all that follows through ‘‘exceeds’’ and 

14 inserting ‘‘may not, when combined with the amount 

15 of retired pay payable to the retiree after any reduc16 tion under sections 5304 and 5305 of title 38, cause 

17 the total of such combined payment to exceed’’; and 

18 (2) in subparagraph (B), by striking ‘‘shall be 

19 reduced’’ and all that follows through ‘‘exceeds’’ and 

20 inserting ‘‘may not, when combined with the amount 

21 of retired pay payable to the retiree after any reduc22 tion under sections 5304 and 5305 of title 38, cause 

23 the total of such combined payment to exceed’’. 

24 (b) EFFECTIVE DATE.—The amendments made by 

25 this section shall take effect on the first day of the first 


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1 month beginning after the date of the enactment of this 

2 Act and shall apply to payments for months beginning on 

3 or after that date. 

Æ 


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