I 

111TH 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 8, 2009 

Mr. MARSHALL (for himself, Mr. JOHNSON of Georgia, Mr. BARROW, Mr. 

WESTMORELAND, Ms. SHEA-PORTER, Mr. TAYLOR, Mrs. GILLIBRAND, 

Mr. COURTNEY, Mr. MOORE of Kansas, Mr. BISHOP of Georgia, Mr. 

GOHMERT, Mr. BOUCHER, Mr. SCHIFF, Mr. DEFAZIO, Mr. BRADY of 

Pennsylvania, and Mr. MCINTYRE) 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 

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. 


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•HR 333 IH

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’’; 

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

18 disability’’ and inserting ‘‘service-connected dis19 ability’’; and 

20 (3) by striking paragraph (2). 

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

22 OF RETIRED PAY AND VETERANS’ DISABILITY COM23 PENSATION.—Such section is further amended— 

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

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


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•HR 333 IH

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

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

3 respectively; and 

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

5 striking paragraphs (3) and (4). 

6 (c) INCLUSION OF DISABILITY RETIREES WITH LESS

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

8 section is amended— 

9 (1) in paragraph (1), by striking ‘‘member re10 tired’’ and inserting ‘‘qualified retiree who is re11 tired’’; and 

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

13 following new paragraph: 

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

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

16 retiree who is retired under chapter 61 of this title 

17 with fewer than 20 years of creditable service is sub18 ject to reduction under sections 5304 and 5305 of 

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

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

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

22 the member’s years of creditable service multiplied 

23 by the member’s retired pay base under section 

24 1406(b)(1) or 1407 of this title, whichever is appli25 cable to the member.’’. 


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•HR 333 IH

1 (d) CLERICAL AMENDMENTS.— 

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

3 section is amended to read as follows: 

4 ‘‘§ 1414. Members eligible for retired pay who are also 

5 eligible for veterans’ disability compensa6 tion: concurrent payment of retired pay 

7 and disability compensation’’. 

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

9 such section in the table of sections at the beginning 

10 of chapter 71 of such title is amended to read as fol11 lows: 

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

disability compensation.’’. 

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

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

14 inserting ‘‘Subsection (c)’’. 

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

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

17 month beginning after the date of the enactment of this 

18 Act and shall apply to payments for months beginning on 

19 or after that date. 


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1 SEC. 3. COMBAT-RELATED SPECIAL COMPENSATION TECH2 NICAL CORRECTIONS REGARDING AMOUNT 

3 OF MONTHLY PAYMENTS FOR CHAPTER 61 

4 DISABILITY RETIREES. 

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

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

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

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

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

10 of retired pay payable to the retiree after any reduc11 tion under sections 5304 and 5305 of title 38, cause 

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

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

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

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

16 of retired pay payable to the retiree after any reduc17 tion under sections 5304 and 5305 of title 38, cause 

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

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

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

21 month beginning after the date of the enactment of this 

22 Act and shall apply to payments for months beginning on 

23 or after that date. 

Æ 


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