I
107TH CONGRESS
1ST SESSION
H. R. 65
To amend title 10, United States Code, to permit retired members of the
Armed Forces who have a service-connected disability to receive a portion
of their military retired pay concurrently with veterans’ disability com-
pensation.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 3, 2001
Mr. BILIRAKIS (for himself, Mr. CONDIT, and Mr. KOLBE) introduced the fol-
lowing bill; which was referred to the Committee on Armed Services, and
in addition to the Committee on Veterans’ Affairs, for a period to be sub-
sequently 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-con-
nected disability to receive a portion of their military
retired pay concurrently with veterans’ disability com-
pensation.
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 ‘‘Military Retirement
Equity Act of 2001’’.
SEC. 2. CONCURRENT PAYMENT OF RETIRED PAY AND
COMPENSATION.
(a) LIMITATION ON DUPLICATION OF BENEFITS.—
Chapter 71 of title 10, United States Code, is amended
by adding at the end the following new section:
‘‘§ 1414. Concurrent payment of retired pay and vet-
erans’ disability compensation
‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM-
PENSATION.—Except as provided in subsections (c) and
(d), a member or former member of the uniformed services
who is entitled to retired pay (other than as specified in
subsection (b)) and who is also entitled to veterans’ dis-
ability compensation is entitled to be paid both without
regard to sections 5304 and 5305 of title 38.
‘‘(b) 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.
‘‘(c) 
PROPORTIONAL
REDUCTION
IN
RETIRED
PAY.—In the case of a person described in subsection (a)
who is receiving both retired pay and veterans’ disability
compensation, the amount of that person’s retired pay
shall be reduced (but not below zero) based on the rating
of the person’s disability for veterans’ disability compensa-
tion purposes as follows:
‘‘(1) If and while the disability is rated 10 per-
cent, by the amount equal to 90 percent of the
amount of the disability compensation paid such
person.
‘‘(2) If and while the disability is rated 20 per-
cent, by the amount equal to 80 percent of the
amount of the disability compensation paid such
person.
‘‘(3) If and while the disability is rated 30 per-
cent, by the amount equal to 70 percent of the
amount of the disability compensation paid such
person.
‘‘(4) If and while the disability is rated 40 per-
cent, by the amount equal to 60 percent of the
amount of the disability compensation paid such
person.
‘‘(5) If and while the disability is rated 50 per-
cent, by the amount equal to 50 percent of the
amount of the disability compensation paid such
person.
‘‘(6) If and while the disability is rated 60 per-
cent, by the amount equal to 40 percent of the
amount of the disability compensation paid such
person.
‘‘(7) If and while the disability is rated 70 per-
cent, by the amount equal to 30 percent of the
amount of the disability compensation paid such
person.
‘‘(8) If and while the disability is rated 80 per-
cent, by the amount equal to 20 percent of the
amount of the disability compensation paid such
person.
‘‘(9) If and while the disability is rated 90 per-
cent, by the amount equal to 10 percent of the
amount of the disability compensation paid such
person.
The retired pay of a person entitled to disability com-
pensation may not be reduced under this subsection if and
while the disability of such person is rated as total.
‘‘(d) SPECIAL RULE FOR CHAPTER 61 CAREER RE-
TIREES.—Notwithstanding subsection (c), in the case of
a retired member described in subsection (a) who 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, the amount of
the member’s retired pay shall be the lesser of the fol-
lowing:
‘‘(1) The amount of retired pay determined in
accordance with subsection (c).
‘‘(2) The amount of retired pay determined
subject to the applicability of sections 5304 and
5305 of title 38, but not less than the amount of re-
tired pay to which the member would have been enti-
tled under any other provision law based upon the
member’s service in the uniformed services if the
member had not been retired under chapter 61 of
this title.
‘‘(e) 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(12) of title 38.’’.
(b) REPEAL
OF
SPECIAL
COMPENSATION
PRO-
GRAM.—Section 1413 of such title is repealed.
(c) CLERICAL AMENDMENTS.—The table of sections
at the beginning of such chapter is amended—
(1) by striking the item relating to section
1413; and
(2) by adding at the end the following new
item:
‘‘1414. Concurrent payment of retired pay and veterans’ disability compensa-
tion.’’.
SEC. 3. EFFECTIVE DATE; PROHIBITION ON RETROACTIVE
BENEFITS.
(a) IN GENERAL.—The amendments made by this
Act 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).
(b) RETROACTIVE BENEFITS.—No benefits may be
paid to any person by reason of section 1414 of title 10,
United States Code, as added by the amendment made
by section 2(a), for any period before the effective date
specified in subsection (a).
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