Disabled Veterans Tax Termination Act

I 117TH CONGRESS 1ST SESSION H. R. 333 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 vet- erans disability compensation, to extend eligibility for concurrent receipt to chapter 61 disability retirees with less than 20 years of service, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 15, 2021 Mr. BISHOP of Georgia introduced the following bill; which was referred to the Committee on Armed Services, and in addition to the Committee on Veterans’ Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend title 10, United States Code, to permit retired members of the Armed Forces who have a service-con- nected disability rated less than 50 percent to receive concurrent payment of both retired pay and veterans disability compensation, to extend eligibility for concur- rent 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 Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 22:08 Feb 06, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H333.IH H333 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 333 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Disabled Veterans Tax 2 Termination Act’’. 3 SEC. 2. CONCURRENT RECEIPT OF BOTH RETIRED PAY AND 4 VETERANS’ DISABILITY COMPENSATION FOR 5 MILITARY RETIREES WITH COMPENSABLE 6 SERVICE-CONNECTED DISABILITIES. 7 (a) INCLUSION OF RETIREES WITH SERVICE-CON- 8 NECTED DISABILITIES RATED LESS THAN 50 PER- 9 CENT.—Section 1414(a) of title 10, United States Code, 10 is amended— 11 (1) by striking ‘‘COMPENSATION’’ in the sub- 12 section heading and all that follows through ‘‘Sub- 13 ject’’ and inserting ‘‘COMPENSATION.—Subject’’; 14 (2) by striking ‘‘qualifying service-connected 15 disability’’ and inserting ‘‘service-connected dis- 16 ability’’; and 17 (3) by striking paragraph (2). 18 (b) INCLUSION OF DISABILITY RETIREES WITH 19 LESS THAN 20 YEARS OF SERVICE.—Section 1414(b) of 20 title 10, United States Code, is amended— 21 (1) in paragraph (1), by striking ‘‘member re- 22 tired’’ and inserting ‘‘qualified retiree who is re- 23 tired’’; and 24 (2) by striking paragraph (2) and inserting the 25 following new paragraph: 26 VerDate Sep 11 2014 22:08 Feb 06, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H333.IH H333 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 333 IH ‘‘(2) DISABILITY RETIREES WITH LESS THAN 20 1 YEARS OF SERVICE.—The retired pay of a qualified 2 retiree who is retired under chapter 61 of this title 3 with fewer than 20 years of creditable service is sub- 4 ject to reduction under sections 5304 and 5305 of 5 title 38, but only by the amount (if any) by which 6 the amount of the member’s retired pay under such 7 chapter exceeds the amount equal to 21⁄2 percent of 8 the member’s years of creditable service multiplied 9 by the member’s retired pay base under section 10 1406(b)(1) or 1407 of this title, whichever is appli- 11 cable to the member.’’. 12 (c) CONFORMING AMENDMENTS REFLECTING END 13 OF CONCURRENT RECEIPT PHASE-IN PERIOD.—Section 14 1414 of title 10, United States Code, is further amend- 15 ed— 16 (1) in subsection (a), as amended by subsection 17 (a) of this section, by striking the final sentence; 18 (2) by striking subsection (c) and redesignating 19 subsections (d) and (e) as subsections (c) and (d), 20 respectively; and 21 (3) in subsection (d), as so redesignated, by 22 striking paragraphs (3) and (4). 23 (d) CLERICAL AMENDMENTS.— 24 VerDate Sep 11 2014 22:08 Feb 06, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H333.IH H333 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 333 IH (1) SECTION HEADING.—The heading for sec- 1 tion 1414 of title 10, United States Code, is amend- 2 ed to read as follows: 3 ‘‘§ 1414. Members eligible for retired pay who are also 4 eligible for veterans’ disability compensa- 5 tion: concurrent payment of retired pay 6 and disability compensation’’. 7 (2) TABLE OF SECTIONS.—The item relating to 8 such section in the table of sections at the beginning 9 of chapter 71 of title 10, United States Code, is 10 amended to read as follows: 11 ‘‘1414. Members eligible for retired pay who are also eligible for veterans’ dis- ability compensation: concurrent payment of retired pay and disability compensation.’’. (e) CONFORMING AMENDMENT REFLECTING SUB- 12 SECTION REDESIGNATION.—Section 1413a(f) of title 10, 13 United States Code, is amended by striking ‘‘Subsection 14 (d)’’ and inserting ‘‘Subsection (c)’’. 15 (f) EFFECTIVE DATE.—The amendments made by 16 this section shall take effect on the first day of the first 17 month beginning after the date of the enactment of this 18 Act and shall apply to payments for months beginning on 19 or after that date. 20 Æ VerDate Sep 11 2014 22:08 Feb 06, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H333.IH H333 kjohnson on DSK79L0C42PROD with BILLS