Disabled Veterans Tax Termination Act
Bill: H.R.333 | Sponsor: Rep. Bishop, Sanford D., Jr. (D-GA)
Policy area: Armed Forces and National Security

Summary:
Disabled Veterans Tax Termination Act
This bill modifies provisions related to military retired pay. Specifically, the bill authorizes veterans with a service-connected disability of less than 50% to concurrently receive both retired pay and disability compensation. The bill also makes qualified disability retirees with less than 20 years of retirement-creditable service eligible for concurrent receipt, subject to specified reductions in retired pay.

To amend title 10, United States Code, to permit retired members of the 
Armed Forces who have a service-connected disability rated less than 50 
percent to receive concurrent payment of both retired pay and veterans 
 disability compensation, to extend eligibility for concurrent receipt 
 to chapter 61 disability retirees with less than 20 years of service, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disabled Veterans Tax Termination 
Act''.

SEC. 2. CONCURRENT RECEIPT OF BOTH RETIRED PAY AND VETERANS' DISABILITY 
              COMPENSATION FOR MILITARY RETIREES WITH COMPENSABLE 
              SERVICE-CONNECTED DISABILITIES.

    (a) Inclusion of Retirees With Service-Connected Disabilities Rated 
Less Than 50 Percent.--Section 1414(a) of title 10, United States Code, 
is amended--
            (1) by striking ``Compensation'' in the subsection heading 
        and all that follows through ``Subject'' and inserting 
        ``Compensation.--Subject'';
            (2) by striking ``qualifying service-connected disability'' 
        and inserting ``service-connected disability''; and
            (3) by striking paragraph (2).
    (b) Inclusion of Disability Retirees With Less Than 20 Years of 
Service.--Section 1414(b) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``member retired'' and 
        inserting ``qualified retiree who is retired''; and
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) Disability retirees with less than 20 years of 
        service.--The retired pay of a qualified retiree who is retired 
        under chapter 61 of this title with fewer than 20 years of 
        creditable service is subject to reduction under sections 5304 
        and 5305 of title 38, but only by the amount (if any) by which 
        the amount of the member's retired pay under such chapter 
        exceeds the amount equal to 2\1/2\ percent of the member's 
        years of creditable 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) Conforming Amendments Reflecting End of Concurrent Receipt 
Phase-In Period.--Section 1414 of title 10, United States Code, 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).
    (d) Clerical Amendments.--
            (1) Section heading.--The heading for section 1414 of title 
        10, United States Code, is amended to read as follows:
``Sec. 1414. Members eligible for retired pay who are also eligible for 
              veterans' disability compensation: 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 of chapter 71 of 
        title 10, United States Code, is amended to read as follows:

``1414. Members eligible for retired pay who are also eligible for 
                            veterans' disability compensation: 
                            concurrent payment of retired pay and 
                            disability compensation.''.
    (e) Conforming Amendment Reflecting Subsection Redesignation.--
Section 1413a(f) of title 10, United States Code, is amended by 
striking ``Subsection (d)'' and inserting ``Subsection (c)''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first month beginning after the date of 
the enactment of this Act and shall apply to payments for months 
beginning on or after that date.
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