SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Retired Pay Restora-
tion Act’’. 
SEC. 2. FINDINGS AND SENSE OF CONGRESS. 
(a) FINDINGS.—Congress finds the following: 
(1) For more than 100 years before 1999, all 
disabled military retirees were required to fund their 
own veterans’ disability compensation by forfeiting 
one dollar of earned retired pay for each dollar re-
ceived in veterans’ disability compensation. 
(2) Since 1999, Congress has enacted legisla-
tion to progressively expand eligibility criteria for re-
lief of the retired pay disability offset and reduce the 
burden of financial sacrifice on disabled military re-
tirees. 
(3) Absent adequate funding to eliminate the 
sacrifice for all disabled retirees, Congress has given 
initial priority to easing financial inequities for the 
most severely disabled and for combat-disabled retir-
ees. 
(4) In the interest of maximizing eligibility 
within cost constraints, Congress effectively has au-
thorized full concurrent receipt for all qualifying re-
tirees with 100-percent disability ratings and all 
qualifying retirees with combat-related disability rat-
ings, while phasing out the disability offset to retired 
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pay over 10 years for retired members with noncom-
bat-related, service-connected disability ratings of 50 
percent to 90 percent. 
(5) In pursuing these good-faith efforts, Con-
gress acknowledges the regrettable necessity of cre-
ating new thresholds of eligibility that understand-
ably are disappointing to disabled retirees who fall 
short of meeting those new thresholds. 
(6) Congress is not content with the status quo. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that military retired pay earned by service and sac-
rifice in defending the United States should not be re-
duced because a military retiree is also eligible for vet-
erans’ disability compensation awarded for service-con-
nected disability. 
SEC. 3. 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.—Subsection (a) 
of section 1414 of title 10, United States Code, is amend-
ed— 
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(1) by striking ‘‘COMPENSATION’’ in the sub-
section heading and all that follows through ‘‘Sub-
ject’’ and inserting ‘‘COMPENSATION.—Subject’’; 
and 
(2) 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; 
(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) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading for sec-
tion 1414 of such title is amended to read as fol-
lows: 
‘‘§ 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 
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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.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as of January 1, 2012, and 
shall apply to payments for months beginning on or after 
that date. 
SEC. 4. 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 through the end of paragraph (1) and in-
serting ‘‘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’’. 
(b) AMENDMENTS TO STANDARDIZE SIMILAR PROVI-
SIONS.— 
(1) CLERICAL
AND
CONFORMING
AMEND-
MENTS.—Section 1413a of such title is further 
amended— 
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(A) in the heading for paragraph (3) of 
subsection (b), by striking ‘‘RULES’’ and insert-
ing ‘‘RULE’’; and 
(B) in subsection (f), by striking ‘‘Sub-
section (d)’’ and inserting ‘‘Subsection (c)’’. 
(2) SPECIFICATION
OF
QUALIFIED
RETIREES 
FOR
CONCURRENT
RECEIPT
PURPOSES.—Section 
1414 of such title, as amended by section 3, is 
amended— 
(A) in subsection (a)— 
(i) by striking ‘‘a member or’’ and all 
that follows through ‘‘is entitled’’ and in-
serting ‘‘an individual who is a qualified 
retiree for any month is entitled’’; and 
(ii) by inserting ‘‘retired pay and vet-
erans’ 
disability 
compensation’’ 
after 
‘‘both’’; and 
(B) in subsection (d), by adding at the end 
the following new paragraph: 
‘‘(3) QUALIFIED RETIREE.—The term ‘qualified 
retiree’ means a member or former member of the 
uniformed services who, with respect to any 
month— 
‘‘(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 entitled to veterans’ disability com-
pensation.’’. 
(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’’ 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 as of January 1, 2012, and 
shall apply to payments for months beginning on or after 
that date. 
Æ 
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