SECTION 1. EXPANSION OF ELIGIBILITY FOR CONCURRENT 
RECEIPT OF MILITARY RETIRED PAY AND 
VETERANS’ DISABILITY COMPENSATION TO 
INCLUDE ALL CHAPTER 61 DISABILITY RE-
TIREES REGARDLESS OF DISABILITY RATING 
PERCENTAGE. 
(a) PHASED EXPANSION CONCURRENT RECEIPT.— 
Subsection (a) of section 1414 of title 10, United States 
Code, is amended to read as follows: 
‘‘(a) PAYMENT OF BOTH RETIRED PAY AND DIS-
ABILITY COMPENSATION.— 
‘‘(1) PAYMENT OF BOTH REQUIRED.— 
‘‘(A) IN GENERAL.—Subject to subsection 
(b), a member or former member of the uni-
formed services who is entitled for any month 
to retired pay and who is also entitled for that 
month to veterans’ disability compensation for a 
qualifying service-connected disability (in this 
section referred to as a ‘qualified retiree’) is en-
titled to be paid both the retired pay and the 
veterans’ disability compensation for that 
month without regard to sections 5304 and 
5305 of title 38. 
‘‘(B) APPLICABILITY
OF
FULL
CONCUR-
RENT RECEIPT PHASE-IN REQUIREMENT.—Dur-
ing the period beginning on January 1, 2004, 
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and ending on December 31, 2013, payment of 
retired pay to a qualified retiree is subject to 
subsection (c). 
‘‘(C) PHASE-IN EXCEPTION FOR 100 PER-
CENT DISABLED RETIREES.—The payment of 
retired pay is subject to subsection (c) only dur-
ing the period beginning on January 1, 2004, 
and ending on December 31, 2004, in the case 
of the following qualified retirees: 
‘‘(i) A qualified retiree receiving vet-
erans’ disability compensation for a dis-
ability rated as 100 percent. 
‘‘(ii) A qualified retiree receiving vet-
erans’ disability compensation at the rate 
payable for a 100 percent disability by rea-
son of a determination of individual 
unemployability. 
‘‘(D) PHASE-IN EXCEPTION FOR CERTAIN 
CHAPTER 61 DISABILITY RETIREES.—Subject to 
subsection (b), on and after January 1, 2011, 
subsection (c) shall not apply to a qualified re-
tiree who has a qualifying service-connected dis-
ability described in subparagraph (B) or (C) of 
paragraph (2). 
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‘‘(2) QUALIFYING
SERVICE-CONNECTED
DIS-
ABILITY DEFINED.—In this section, the term ‘quali-
fying service-connected disability’, with respect to a 
qualified retiree, means the following: 
‘‘(A) In the case of a qualified retiree re-
ceiving retired pay under any provision of law 
other than chapter 61 of this title, or under 
chapter 61 with 20 years or more of service 
otherwise creditable under section 1405 or com-
puted under section 12732 of this title, a serv-
ice-connected disability or combination of serv-
ice-connected disabilities that is rated as dis-
abling by the Secretary of Veterans Affairs. 
‘‘(B) In the case of a qualified retiree re-
ceiving retired pay under chapter 61 of this 
title with less than 20 years of service otherwise 
creditable under section 1405 or computed 
under section 12732 of this title, a service-con-
nected disability or combination of service-con-
nected disabilities that is rated by the Secretary 
of Veterans Affairs at the disabling level speci-
fied in one of the following clauses (and is ef-
fective on or after the date specified in the ap-
plicable clause): 
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‘‘(i) January 1, 2011, rated 100 per-
cent, or a rate payable at 100 percent by 
reason of individual unemployability or 
rated 90 percent. 
‘‘(ii) January 1, 2012, rated 80 per-
cent or 70 percent. 
‘‘(iii) January 1, 2013, rated 60 per-
cent or 50 percent. 
‘‘(C) In the case of a qualified retiree re-
ceiving retired pay under chapter 61 regardless 
of years of service, a service-connected disability 
or combination of service-connected disabilities 
that is rated by the Secretary of Veterans Af-
fairs at the disabling level specified in one of 
the following clauses (and is effective on or 
after the date specified in the applicable 
clause): 
‘‘(i) January 1, 2014, rated 40 per-
cent or 30 percent. 
‘‘(ii) January 1, 2015, any rating.’’. 
(b) CONFORMING AMENDMENT TO SPECIAL RULES 
FOR CHAPTER 61 DISABILITY RETIREES.—Subsection (b) 
of such section is amended to read as follows: 
‘‘(b) SPECIAL RULES FOR CHAPTER 61 DISABILITY 
RETIREES..— 
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‘‘(1) CAREER RETIREES.—The retired pay of a 
member retired under chapter 61 of this title with 
20 years or more of service otherwise creditable 
under section 1405 of this title, or at least 20 years 
of service computed under section 12732 of this 
title, at the time of the member’s retirement, is sub-
ject to reduction under sections 5304 and 5305 of 
title 38, but only to the extent that the amount of 
the member’s retired pay under chapter 61 of this 
title exceeds the amount of retired pay to which the 
member would have been entitled under any other 
provision of law based upon the member’s service in 
the uniformed services if the member had not been 
retired under chapter 61 of this title. 
‘‘(2) SPECIAL
RULE
FOR
RETIREES
WITH 
FEWER THAN 20 YEARS OF SERVICE.—The retired 
pay of a member retired under chapter 61 of this 
title with fewer than 20 years of creditable service 
otherwise creditable under section 1405 or computed 
under section 12732 of this title, at the time of the 
member’s retirement, is subject to reduction under 
sections 5304 and 5305 of title 38, but only to the 
extent that the amount of the member’s retired pay 
under chapter 61 of this title exceeds the amount 
equal to 21⁄2 percent of the member’s years of cred-
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itable service multiplied by the member’s retired pay 
base under section 1406(b)(1) or 1407 of this title, 
whichever is applicable to the member.’’. 
(c) FULL CONCURRENT RECEIPT PHASE-IN.—Sub-
section (c) of such section is amended— 
(1) by striking ‘‘the second sentence of’’ in the 
matter preceding paragraph (1); and 
(2) in paragraph (1), by adding at the end the 
following new subparagraph: 
‘‘(G) For a month for which the retiree re-
ceives veterans’ disability compensation for a 
disability rated as 40 percent or less or has a 
service-connected disability rated as zero per-
cent, $0.’’. 
(d) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such 
section is amended to read as follows: 
‘‘§ 1414. Concurrent receipt of retired pay and vet-
erans’ disability compensation’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 71 of such title is 
amended by striking the item related to section 1414 
and inserting the following new item: 
‘‘1414. Concurrent receipt of retired pay and veterans’ disability compensa-
tion.’’. 
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(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2011. 
(f) FUNDING OFFSET.—The Chairman of the Com-
mittee on the Budget of the House of Representatives 
shall provide the necessary adjustments in allocations, ag-
gregates, and other appropriate levels in the concurrent 
resolution on the budget for fiscal year 2011 to implement 
this section and the amendments made by this section. 
Æ 
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