Evening star., 1947-12-06
Army Will Seek Law
To Tax Pensions Up
To Limit Of Disability
Officer Judged 30 Pct.
Disabled Would Get Some
Percentage Of Exemption
By John A. Giles

The Army, under fire because
of it's officer retirement record
and disturbed over the discovery
that tax-exempt disability pen
sions sometimes actually serve
to encourage sickness among its
officers, will seek legislation to
exempt only that portion of re-
tirement pay which is allowed
for disabilities, it was learned
authoritatively today.
Disability standards of the Veter-
ans Administration would be
adopted under the proposal. Thus,
an officer judged to be 80 per cent
disabled would get income tax ex-
emptlon on 80 per cent of his retire
ment pay. He would be required to
pay taxes on the remainder, which
would be for actual service. An Off
Ger judged wholly disabled would
get a full tax-emempt pension.
Officers are retired at IS per cent of
base pay.
This proposal probably would not
be retroactive.
Plan Not New.
A major general. retired for dis
ability, may receive S6,600 annually,
the tax on which would approximate
81 200 if he has only one dependent.
The proposal, it was learned, is
not entirely new in the department,
but it has been brought to the fore
this week by White House and con-
gressional pressure,
The White House has demanded
the complete records of those Army
and Navy officers retired for physi-
cal reasons to eliminate ANY posi-
BILE racket" Maj. Gen. Harry H.
Vaughan, the Presidents military
aide, said.
Gen. Vaughan stated there had
been reports that some officers un-
derwent rigid physical examinations
for promotions and then, a short
time later, went before retirement
boards and obtained disability re-
tirements. President Truman called
on the services to take corrective
action.
Committees to Investigate.
| The House and Senate Armed
Services Committees also have an
nounced plans to investigate. The
inquiries have served to bring about
Tightening up on all retirements.
Army and Navy personnel now are
working around the clock in an eff
fort to gather all the information
requested by the President and the
committees, but the data must be
taken from individual files for the
most part and indications are that
the job will not be completed before
early in January. The Army has
cognizance over Air Force retire
ments.
Mai. Gen. Bennett E. Meyers, SUBJ
ject of congressional committee and
grand jury Investigations, is among
the long list of retired officers rang
ing from generals and admirals to
second lieutenants and ensigns. His
disability pension was discontinued
as a result of the inquiries.
The first step for an officer to re-
ceive a disability retirement rating
is an appearance before an Army
"disposition board" of medical Off
GERS. If this board approves, the
officer then goes before retiring
board" made up of not more thar
two-hfths medical officers and the
remainder from other branches o.
I service.
Seen Bad for Morale.
The retiring boards report goes tt
the surgeon general, whose review
ing board may pass it on to thl
Secretary of the Army with recon-
mendation for retirement.
The incentive of a tax-free pen
sion and the moves to bring younger
Gee DENCTONC DoUo h-2)