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 vet-
erans’ disability compensation, to eliminate the phase-in period for con-
current 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 deter-
mined 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-con-
nected 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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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’’. 
SEC. 2. CONCURRENT RECEIPT OF BOTH RETIRED PAY AND 
VETERANS’ DISABILITY COMPENSATION FOR 
MILITARY RETIREES WITH COMPENSABLE 
SERVICE-CONNECTED DISABILITIES. 
(a) INCLUSION OF RETIREES WITH SERVICE-CON-
NECTED DISABILITIES RATED LESS THAN 50 PER-
CENT.—Subsection (a) of section 1414 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘COMPENSATION’’ in the sub-
section heading and all that follows through ‘‘Sub-
ject’’ and inserting ‘‘COMPENSATION.—Subject’’; 
(2) by striking ‘‘qualifying service-connected 
disability’’ and inserting ‘‘service-connected dis-
ability’’; and 
(3) by striking paragraph (2). 
(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), as amended by subsection 
(a) of this section, by striking the final sentence; 
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(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 paragraphs (3) and (4). 
(c) INCLUSION OF DISABILITY RETIREES WITH LESS 
THAN 20 YEARS OF SERVICE.—Subsection (b) of such 
section is amended— 
(1) in paragraph (1), by striking ‘‘member re-
tired’’ and inserting ‘‘qualified retiree who is re-
tired’’; and 
(2) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) DISABILITY RETIREES WITH LESS THAN 20 
YEARS OF SERVICE.—The retired pay of a qualified 
retiree who is retired under chapter 61 of this title 
with fewer than 20 years of creditable service is sub-
ject to reduction under sections 5304 and 5305 of 
title 38, but only by the amount (if any) by which 
the amount of the member’s retired pay under such 
chapter exceeds the amount equal to 21⁄2 percent of 
the member’s years of creditable service multiplied 
by the member’s retired pay base under section 
1406(b)(1) or 1407 of this title, whichever is appli-
cable to the member.’’. 
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(d) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading for such 
section is amended to read as follows: 
‘‘§ 1414. Members eligible for retired pay who are also 
eligible for veterans’ disability compensa-
tion: concurrent payment of retired pay 
and disability compensation’’. 
(2) TABLE OF SECTIONS.—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 fol-
lows: 
‘‘1414. Members eligible for retired pay who are also eligible for veterans’ dis-
ability compensation: concurrent payment of retired pay and 
disability compensation.’’. 
(e) CONFORMING AMENDMENT.—Section 1413a(f) of 
such title is amended by striking ‘‘Subsection (d)’’ and 
inserting ‘‘Subsection (c)’’. 
(f) 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. 
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