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 Vet-
erans’ Affairs, and Ways and Means, for a period to be subsequently de-
termined 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Salute to Veterans and the Armed Forces Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
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.
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 de-
layed following remand for expedited consideration. 
Sec. 9. Prohibition on increases in medication copayment for veterans and im-
position of healthcare enrollment fee for veterans. 
Sec. 10. Information for separating servicemembers on veterans benefits infor-
mation. 
Sec. 11. Veterans outreach programs. 
Sec. 12. Retention of 38.6 percent top individual income tax rate.
SEC. 2. FULL PAYMENT OF BOTH RETIRED PAY AND COM-
PENSATION TO DISABLED MILITARY RETIR-
EES. 
(a) RESTORATION OF FULL RETIRED PAY BENE-
FITS.—Section 1414 of title 10, United States Code, is 
amended to read as follows: 
‘‘§ 1414. Members eligible for retired pay who have 
service-connected disabilities: payment of 
retired pay and veterans’ disability com-
pensation 
‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM-
PENSATION.—Except as provided in subsection (b), a 
member or former member of the uniformed services who 
is entitled to retired pay (other than as specified in sub-
section (c)) and who is also entitled to veterans’ disability 
compensation is entitled to be paid both without regard 
to sections 5304 and 5305 of title 38.
‘‘(b) SPECIAL RULE FOR CHAPTER 61 CAREER RE-
TIREES.—The retired pay of a member retired under 
chapter 61 of this title with 20 years or more of service 
otherwise creditable under section 1405 of this title at the 
time of the member’s retirement is subject to reduction 
under sections 5304 and 5305 of title 38, but only to the 
extent that the amount of the member’s retired pay under 
chapter 61 of this title exceeds the amount of retired pay 
to which the member would have been entitled under any 
other provision of law based upon the member’s service 
in the uniformed services if the member had not been re-
tired under chapter 61 of this title. 
‘‘(c) EXCEPTION.—Subsection (a) does not apply to 
a member retired under chapter 61 of this title with less 
than 20 years of service otherwise creditable under section 
1405 of this title at the time of the member’s retirement. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘retired pay’ includes retainer 
pay, emergency officers retirement pay, and naval 
pension. 
‘‘(2) The term ‘veterans’ disability compensa-
tion’ has the meaning given the term ‘compensation’ 
in section 101(13) of title 38.’’.
(b) REPEAL
OF
SPECIAL
COMPENSATION
PRO-
GRAMS.—Sections 1413 and 1413a of such title are re-
pealed. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by striking 
the items relating to sections 1413, 1413a, and 1414 and 
inserting the following:
‘‘1414. Members eligible for retired pay who have service-connected disabilities: 
payment of retired pay and veterans’ disability compensation.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on—
(1) the first day of the first month that begins 
after the date of the enactment of this Act; or 
(2) the first day of the fiscal year that begins 
in the calendar year in which this Act is enacted, if 
later than the date specified in paragraph (1). 
(e) RETROACTIVE BENEFITS.—No benefits may be 
paid to any person by reason of section 1414 of title 10, 
United States Code, as amended by subsection (a), for any 
period before the effective date specified in subsection (a). 
SEC. 3. REPEAL OF DEPENDENCY AND INDEMNITY COM-
PENSATION OFFSET FROM SURVIVOR BEN-
EFIT PLAN SURVIVING SPOUSE ANNUITIES. 
(a) REPEAL.—Subsections (c), (e), and (k) of section 
1450 of title 10, United States Code, and subsection (c)(2) 
of section 1451 of such title are repealed.
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a)—
(1) shall take effect on the later of October 1, 
2003, or the date of the enactment of this Act; and 
(2) shall apply with respect to payment of an-
nuities under subchapter II of chapter 73 of title 10, 
United States Code, for months beginning on or 
after that date. 
(c) RECOUPMENT
OF
CERTAIN
AMOUNTS
PRE-
VIOUSLY REFUNDED TO SBP RECIPIENTS.—(1) A sur-
viving spouse who is in receipt of an SBP annuity that 
is in effect before the date specified in subsection (b) and 
that is adjusted by reason of the amendments made by 
subsection (a) and who had previously received an SBP 
retired pay refund shall repay an amount determined 
under paragraph (2). Any such repayment shall be made 
in the same manner as a repayment under subsection 
(k)(2) of section 1450 of title 10, United States Code, as 
in effect on the day before the date of the enactment of 
this Act. 
(2) The amount of a repayment under paragraph (1) 
shall be the amount that bears the same ratio to the 
amount of that refund as the surviving spouse’s life ex-
pectancy (determined in accordance with standard actu-
arial practices) bears to the anticipated total duration of
the annuity (determined as the sum of such life expectancy 
and the duration of the annuity already received). 
(3) In this subsection: 
(A) The term ‘‘SBP annuity’’ means an annu-
ity under the program established under subchapter 
II of chapter 73 of title 10, United States Code. 
(B) The term ‘‘SBP retired pay refund’’ means 
a refund under subsection (e) of section 1450 of title 
10, United States Code, as in effect before the date 
specified in subsection (b). 
SEC. 4. INCREASE IN AMOUNT OF BASIC EDUCATIONAL AS-
SISTANCE FOR MEMBERS OF THE SELECTED 
RESERVE. 
(a) IN GENERAL.—(1) Paragraph (1) of section 
16131(b) of title 10, United States Code, is amended—
(A) in subparagraph (A), by striking ‘‘$251’’ 
and inserting ‘‘$600’’; 
(B) in subparagraph (B), by striking ‘‘$188’’ 
and inserting ‘‘$450’’; and 
(C) in subparagraph (C), by striking ‘‘$125’’ 
and inserting ‘‘$300’’. 
(2) The amendments made by paragraph (1) shall 
take effect on October 1, 2004, and shall apply with re-
spect to educational assistance allowances under section
16131(b)(1) of such title paid for months after September 
2004. 
(3) In the case of an educational assistance allowance 
under such section paid for months occurring during fiscal 
year 2004—
(A) subparagraph (A) of such section shall be 
applied by substituting ‘‘$475’’ for ‘‘$251’’; 
(B) subparagraph (B) of such section shall be 
applied by substituting ‘‘$325’’ for ‘‘$188’’; and 
(C) subparagraph (C) of such section shall be 
applied by substituting ‘‘$215’’ for ‘‘$125’’. 
(b) NO ADJUSTMENT FOR FISCAL YEARS 2004 AND 
2005.—Section 16131(b)(2) of such title shall not apply 
to rates of basic educational assistance paid under such 
section during fiscal years 2004 and 2005. 
SEC. 5. APPLICATION OF INDEX BASED ON COSTS OF HIGH-
ER LEARNING. 
(a) IN GENERAL.—Section 16131(b)(2) of title 10, 
United States Code, is amended to read as follows: 
‘‘(2)(A) With respect to any fiscal year beginning on 
or after October 1, 2005, the Secretary shall provide a 
percentage increase (rounded to the nearest dollar) in the 
rates payable under paragraph (1) equal to the percentage 
(as determined by the Secretary) by which—
‘‘(i) the average monthly costs of tuition and 
expenses for commuter students at public institu-
tions of higher learning that award baccalaureate 
degrees for purposes of paragraph (1) for the fiscal 
year involved, exceeds 
‘‘(ii) such average monthly costs for the pre-
ceding fiscal year. 
‘‘(B) The Secretary shall make the determination 
under subparagraph (A) after consultation with the Sec-
retary of Education. 
‘‘(C) A determination made under subparagraph (A) 
in a year shall take effect on October 1 of that year and 
apply with respect to basic educational assistance allow-
ances payable under this section for the fiscal year begin-
ning in that year. 
‘‘(D) Not later than September 30 each year, the Sec-
retary shall publish in the Federal Register the average 
monthly costs of tuition and expenses as determined under 
subparagraph (A) in that year.’’. 
(b) 
CONFORMING
AMENDMENT.—(1) 
Section 
3015(h) of title 38, United States Code, is amended by 
striking ‘‘by which—’’ and all that follows and inserting 
‘‘determined by the Secretary under section 16131(b)(2) 
of title 10 for the fiscal year involved.’’.
(d) ENTITLEMENT LIMITED TO SINGLE BONUS PAY-
MENT.—A member may not receive more than one bonus 
under the authority of this section. 
SEC. 7. AUTHORIZATION OF ADDITIONAL FUNDING FOR 
VETERANS MEDICAL CARE. 
(a) AUTHORIZATION.—There are authorized to be ap-
propriated to the Department of Veterans Affairs, in addi-
tion to amounts otherwise authorized to be appropriated, 
the amount of $1,000,000,000 for each of fiscal years 
2004 through 2013. 
(b) IMPROVED ACCESS TO CARE.—Amounts appro-
priated pursuant to the authorization of appropriations in 
subsection (a) shall be used to ensure that veterans seek-
ing healthcare from the Department of Veterans Affairs 
receive their initial appointment for healthcare for a date 
that is not later than 30 days after the date on which 
the request is made. 
SEC. 8. INTERIM PAYMENTS UNDER CERTAIN VETERANS 
CLAIMS WHEN DECISION IS DELAYED FOL-
LOWING REMAND FOR EXPEDITED CONSID-
ERATION. 
(a) IN GENERAL.—(1) Chapter 53 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 5320. Interim benefits under certain remanded 
cases 
‘‘(a) INTERIM BENEFITS.—When a claim for benefits 
under the jurisdiction of the Secretary is remanded by the 
United States Court of Appeals for Veterans Claims or 
by the Board for Veterans’ Appeals in a case to which 
section 302 of Public Law 103–446 (38 U.S.C. 5101 note) 
applies, if the Secretary does not make a decision on the 
matter within 180 days of the date of the remand decision, 
then until such matter is finally decided, the Secretary 
shall pay an interim benefit in the amount of $500 per 
month to each claimant under the claim. Such payments 
shall commence as of the first month beginning after the 
end of such 180-day period. 
‘‘(b) EFFECT ON INTERIM BENEFIT PAYMENTS OF 
FINAL DECISION ON CLAIM.—When a claim with respect 
to which interim benefits are being paid under subsection 
(b) is finally decided—
‘‘(1) if the final decision is to award benefits, 
the amounts paid as interim benefits shall be consid-
ered to be an advance payment of benefits owed for 
any period before the date of such final decision (ex-
cept that if the total amount of interim benefits paid 
is greater than the amount of retroactive benefits, 
the amount of the difference shall not be considered 
to be an overpayment for any purpose); and
‘‘(2) if the final decision is not to award bene-
fits, the amounts paid as interim benefits shall not 
be considered to be an overpayment for any pur-
pose.’’. 
(2) The table of sections at the beginning of such 
chapter is amended by adding at the end the following 
new item:
‘‘5320. Interim benefits under certain remanded cases.’’.
(b) EFFECTIVE DATE.—Section 5320 of title 38, 
United States Code, as added by subsection (a), shall 
apply with respect to any decision remanded by the Court 
of Appeals for Veterans Claims or the Board of Veterans’ 
Appeals on or after the date of the enactment of this Act. 
(c) REPORT.—Not later than six months after the 
date of the enactment of this Act, the Secretary of Vet-
erans Affairs shall submit to Congress a report on meas-
ures the Secretary intends to take to expedite the proc-
essing of remanded claims for veterans benefits. 
SEC. 9. PROHIBITION ON INCREASES IN MEDICATION CO-
PAYMENT FOR VETERANS AND IMPOSITION 
OF HEALTHCARE ENROLLMENT FEE FOR 
VETERANS. 
(a) MEDICATION COPAYMENTS.—During the period 
beginning on the date of the enactment of this Act and 
ending on October 1, 2004, the Secretary of Veterans Af-
fairs may not implement under subsection (b) of section
1722A of title 38, United States Code, an increase in the 
copayment for medications required under subsection (a) 
of that section. 
(b) ENROLLMENT FEE.—During the period begin-
ning on the date of the enactment of this Act and ending 
on October 1, 2004, the Secretary of Veterans Affairs may 
not implement an enrollment fee for veterans enrolling (or 
renewing enrollment) in the Department of Veterans Af-
fairs healthcare system under section 1705 of such title. 
SEC. 
10. 
INFORMATION 
FOR 
SEPARATING 
SERVICEMEMBERS ON VETERANS BENEFITS 
INFORMATION. 
(a) INFORMATION ON FINAL PAY STUB.—Section 
1142 of title 10, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(d) INFORMATION ON ACCESS TO VETERANS BENE-
FITS.—The Secretary concerned shall include on the final 
statement of pay and allowances provided to a member 
who is separating from active duty or an active status in-
formation on how to contact the Department of Veterans 
Affairs for information concerning veterans benefits and 
the Department of Labor for information concerning em-
ployment opportunities.’’. 
(b) EFFECTIVE DATE.—Subsection (d) of section 
1142 of title 10, United States Code, as added by sub-
section (a), shall apply with respect to persons separating 
from active duty or an active status in the Armed Forces 
after the end of the 60-day period beginning on the date 
of the enactment of this Act. 
SEC. 11. VETERANS OUTREACH PROGRAMS. 
(a) INFORMATION ON VETERANS BENEFITS.—Sec-
tion 7722(c) of title 38, United States Code, is amended 
by adding at the end the following new paragraphs: 
‘‘(3) Information provided under this subsection shall 
include information on how to apply for benefits for which 
the veteran or dependent may be eligible, including infor-
mation about assistance available under subsection (d). 
‘‘(4) In the case of veterans or dependents who are 
members of distinct beneficiary populations (such as sur-
vivors of veterans), the Secretary shall ensure that infor-
mation provided under this subsection includes specific in-
formation about benefits relating to that population.’’. 
(b) ANNUAL OUTREACH PLAN.—(1) Chapter 77 of 
such title is amended by inserting at the end of subchapter 
II the following new section: 
‘‘§ 7728. Annual outreach plan 
‘‘(a) The Secretary shall prepare an annual plan for 
the conduct of outreach activities under this subchapter. 
The Secretary shall include in the annual plan—
‘‘(1) efforts to identify veterans who are not 
otherwise enrolled or registered with the Department 
for benefits or services under programs administered 
by the Secretary; and 
‘‘(2) provisions for informing veterans and de-
pendents of any changes in benefit programs or 
health care eligibility. 
‘‘(b) In developing the annual plan, the Secretary 
shall consult with the following: 
‘‘(1) Directors or other responsible officials of 
veterans service organizations. 
‘‘(2) Directors or other responsible officials of 
local education and training programs. 
‘‘(3) Representatives of veterans outreach pro-
grams. 
‘‘(4) Local veterans employment representa-
tives. 
‘‘(5) Business and professional organizations. 
‘‘(6) Other appropriate individuals or organiza-
tions that could assist veterans in adjusting to a 
self-sufficient civilian life. 
‘‘(c) The annual report required by section 7726 of 
this title shall include specific information concerning the 
effectiveness of the outreach plan developed pursuant to 
this section.’’.
(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 7727 the following new item:
‘‘7728. Annual outreach plan.’’.
SEC. 12. RETENTION OF 38.6 PERCENT TOP INDIVIDUAL IN-
COME TAX RATE. 
(a) IN GENERAL.—The table contained in section 
1(i)(2) of the Internal Revenue Code of 1986, as amended 
by the Jobs and Growth Tax Relief Reconciliation Act of 
2003, is amended by striking ‘‘35.0%’’ and inserting 
‘‘38.6%’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2002.
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