I 
109TH CONGRESS 
2D SESSION 
H. R. 5881 
To amend title 10, United States Code, to eliminate the offset between 
military retired pay and veterans service-connected disability compensa-
tion for certain retired members of the Armed Forces who have a 
service-connected disability, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2006 
Mr. MARSHALL introduced the following bill; which was referred to the Com-
mittee 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 jurisdic-
tion of the committee concerned 
A BILL 
To amend title 10, United States Code, to eliminate the 
offset between military retired pay and veterans service- 
connected disability compensation for certain retired 
members of the Armed Forces who have a service-con-
nected disability, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Disabled Veterans Tax 
Termination Act’’. 
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SEC. 2. ELIGIBILITY FOR PAYMENT OF BOTH RETIRED PAY 
AND VETERANS’ DISABILITY COMPENSATION 
FOR CERTAIN ADDITIONAL MILITARY RETIR-
EES 
WITH 
COMPENSABLE 
SERVICE-CON-
NECTED DISABILITIES. 
(a) EXTENSION OF CONCURRENT RECEIPT AUTHOR-
ITY TO RETIREES WITH SERVICE-CONNECTED DISABIL-
ITIES RATED LESS THAN 50 PERCENT.—Section 1414 of 
title 10, United States Code, is amended by striking para-
graph (2) of subsection (a). 
(b) REPEAL OF PHASE-IN OF CONCURRENT RECEIPT 
OF RETIRED PAY
AND VETERANS’ DISABILITY COM-
PENSATION.—Such section is further amended— 
(1) in subsection (a), by striking the final sen-
tence of paragraph (1); 
(2) by striking subsection (c) and redesignating 
subsections (d) and (e) as subsections (c) and (d), 
respectively; and 
(3) in subsection (d) (as so redesignated), by 
striking subparagraph (4). 
(c) CLERICAL AMENDMENTS.— 
(1) The heading for section 1414 of such title 
is amended to read as follows: 
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‘‘§ 1414. Members eligible for retired pay who are also 
eligible for veterans’ disability compensa-
tion: concurrent payment of retired pay 
and disability compensation’’. 
(2) The item relating to such section in the 
table of sections at the beginning of chapter 71 of 
such title is amended to read as follows: 
‘‘1414. Members eligible for retired pay who are also eligible for veterans’ dis-
ability compensation: concurrent payment of retired pay and 
disability compensation.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the first day of the first 
month beginning after the date of the enactment of this 
Act and shall apply to payments for months beginning on 
or after that date. 
SEC. 3. COORDINATION OF SERVICE ELIGIBILITY FOR COM-
BAT-RELATED SPECIAL COMPENSATION AND 
CONCURRENT RECEIPT. 
(a) ELIGIBILITY FOR TERA RETIREES.—Subsection 
(c) of section 1413a of title 10, United States Code, is 
amended by striking ‘‘entitled to retired pay who—’’ and 
all that follows and inserting ‘‘who— 
‘‘(1) is entitled to retired pay, other than a 
member retired under chapter 61 of this title with 
less than 20 years of service creditable under section 
1405 of this title and less than 20 years of service 
computed under section 12732 of this title; and 
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‘‘(2) has a combat-related disability.’’. 
(b) AMENDMENTS TO STANDARDIZE SIMILAR PROVI-
SIONS.— 
(1) CLERICAL AMENDMENT.—The heading for 
paragraph (3) of section 1413a(b) of such title is 
amended 
by 
striking 
‘‘RULES’’ 
and 
inserting 
‘‘RULE’’. 
(2) SPECIFICATION
OF
QUALIFIED
RETIREES 
FOR CONCURRENT RECEIPT PURPOSES.—Subsection 
(a) of section 1414 of such title, as amended by sec-
tion 2(a), is amended— 
(A) by striking ‘‘a member or’’ and all that 
follows through ‘‘retiree’)’’ and inserting ‘‘an 
individual who is a qualified retiree for any 
month’’; 
(B) by inserting ‘‘retired pay and veterans’ 
disability compensation’’ after ‘‘both’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(2) QUALIFIED RETIREES.—For purposes of 
this section, a qualified retiree, with respect to any 
month, is a member or former member of the uni-
formed services who— 
‘‘(A) is entitled to retired pay, other than 
in the case of a member retired under chapter 
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61 of this title with less than 20 years of serv-
ice creditable under section 1405 of this title 
and less than 20 years of service computed 
under section 12732 of this title; and 
‘‘(B) is also entitled for that month to vet-
erans’ disability compensation.’’. 
(3) STANDARDIZATION WITH CRSC RULE FOR 
CHAPTER 61 RETIREES.—Subsection (b) of section 
1414 of such title is amended— 
(A) by striking ‘‘SPECIAL RULES’’ in the 
subsection heading and all that follows through 
‘‘is subject to’’ in paragraph (1) and inserting 
‘‘SPECIAL RULE FOR CHAPTER 61 DISABILITY 
RETIREES.—In the case of a qualified retiree 
who is retired under chapter 61 of this title, the 
retired pay of the member is subject to’’; and 
(B) by striking paragraph (2). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the first day of the first 
month beginning after the date of the enactment of this 
Act and shall apply to payments for months beginning on 
or after that date. 
Æ 
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