SECTION 1. LIMITED AUTHORITY FOR CONCURRENT PAY-
MENT OF RETIRED PAY AND VETERANS’ DIS-
ABILITY COMPENSATION FOR CERTAIN DIS-
ABLED VETERANS.
(a) LIMITATION ON DUPLICATION OF BENEFITS.—
(1) Chapter 71 of title 10, United States Code, is amended
by adding at the end the following new section:
‘‘§ 1413. Concurrent payment of retired pay and vet-
erans’ disability compensation
‘‘(a) The prohibition on concurrent award of veter-
ans’ disability compensation and retired pay set forth in
section 5304(a)(1) of title 38 does not apply to a person
who has a service-connected disability if—
‘‘(1) the person has completed at least 20 years
of service in the uniformed services that is creditable
for purposes of computing the amount of retired pay
to which the member is entitled;
‘‘(2) the disability was incurred or aggravated
in the performance of duty as a member of a uni-
formed service, as determined by the Secretary con-
cerned; and
‘‘(3) the disability is rated as not less than 70
percent—
‘‘(A) by the Secretary concerned as of the
date on which the person is retired from the
uniformed services; or
‘‘(B) by the Secretary of Veterans Affairs
within four years following the date on which
the person is retired from the uniformed serv-
ices.
‘‘(b) The amount of retired pay paid in accordance
with subsection (a) concurrently with the payment of dis-
ability compensation to any person for any month shall
be the following amount (which shall be in addition to any
amount of retired pay to which that person is otherwise
entitled under any other provision of law):
‘‘(1) In the case of a person who for that month
has a disability rated as total, $300.
‘‘(2) In the case of a person who for that month
has a disability rated as 90 percent, $200.
‘‘(3) In the case of a person who for that month
has a disability rated as 80 percent or 70 percent,
$100.
‘‘(c) Notwithstanding section 1463(a) of this title, the
amount of retired pay paid in accordance with subsection
(a) concurrently with the payment of disability compensa-
tion to the recipients of such retired pay shall be paid out
of funds appropriated for the Department of Defense for
any fiscal year.
‘‘(d) Subsection (a) is not applicable to a person for
any period for which the disability of such person is not
a disability rated as not less than 70 percent disabling
as described in paragraph (3) of such subsection.
‘‘(e) In this section:
‘‘(1) The terms ‘compensation’ and ‘service-con-
nected’ have the meanings given those terms in sec-
tion 101 of title 38.
‘‘(2) The term ‘disability rated as total’
means—
‘‘(A) a disability that is rated as total
under the standard schedule of rating disabil-
ities in use by the Department of Veterans Af-
fairs; or
‘‘(B) a disability for which the schedular
rating is less than total but for which a rating
of total is assigned by reason of inability of the
disabled person concerned to secure or follow a
substantially gainful occupation as a result of
service-connected disabilities.
‘‘(3) The term ‘retired pay’ includes retainer
pay, emergency officers’ retirement pay, and naval
pension.
‘‘(f) This section shall take effect on October 1, 1996,
and shall apply to months that begin on or after that
date.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1413. Concurrent payment of retired pay and veterans’ disability compensa-
tion.’’.
(b) RETROACTIVE BENEFITS.—No benefits shall be
paid to any person by reason of section 1413 of title 10,
United States Code, for any period before the effective
date of that section.
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