What This Bill Does
This bill changes how military retirees with service-connected disabilities receive payment. It allows retired members of the Armed Forces with disabilities rated less than 50 percent to receive both their retired pay and veterans disability compensation at the same time. The bill also extends these payment rights to certain military retirees forced out because of disability who have fewer than 20 years of service.
Who It Affects
Retired members of the Armed Forces with service-connected disabilities (disabilities caused or worsened by military service) rated less than 50 percent. Members retired under chapter 61 (a military disability retirement program) with fewer than 20 years of service. The Department of Veterans Affairs (the government agency that administers veterans benefits).
Key Provisions
- Retired members with service-connected disabilities rated less than 50 percent can now receive both retired military pay and veterans disability compensation at the same time instead of having to choose between them (Sec. 2(a))
- Military retirees forced out because of disability under chapter 61 with fewer than 20 years of service become eligible for concurrent payment of retired pay and disability compensation (Sec. 2(b))
- The retired pay of chapter 61 retirees with fewer than 20 years of service can only be reduced by the amount that exceeds 2.5 percent of their years of service multiplied by their retired pay base (Sec. 2(b))
What Changes
If this bill becomes law, eligible military retirees will no longer lose retired pay when they receive veterans disability compensation. The bill removes eligibility restrictions based on disability ratings and years of service. It updates the legal language and removes outdated phase-in requirements from previous law.
Important Definitions
Service-connected disability: A disability caused or worsened by military service. Chapter 61 disability retirees: Members forced to retire early because of a service-connected disability. Creditable service: Years of service counted toward military retirement.
Effective Date
The first day of the first month beginning after the bill is signed into law, and applies to payments for months beginning on or after that date (Sec. 2(f))
I
118TH 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 12, 2023
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-
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tives of the United States of America in Congress assembled,
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•HR 333 IH
SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Disabled Veterans Tax
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Termination Act’’.
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SEC. 2. CONCURRENT RECEIPT OF BOTH RETIRED PAY AND
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VETERANS’ DISABILITY COMPENSATION FOR
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MILITARY RETIREES WITH COMPENSABLE
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SERVICE-CONNECTED DISABILITIES.
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(a) INCLUSION OF RETIREES WITH SERVICE-CON-
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NECTED DISABILITIES RATED LESS THAN 50 PER-
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CENT.—Section 1414(a) of title 10, United States Code,
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is amended—
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(1) by striking ‘‘COMPENSATION’’ in the sub-
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section heading and all that follows through ‘‘Sub-
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ject’’ and inserting ‘‘COMPENSATION.—Subject’’;
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(2) by striking ‘‘qualifying service-connected
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disability’’ and inserting ‘‘service-connected dis-
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ability’’; and
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(3) by striking paragraph (2).
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(b) INCLUSION
OF DISABILITY RETIREES WITH
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LESS THAN 20 YEARS OF SERVICE.—Section 1414(b) of
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title 10, United States Code, is amended—
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(1) in paragraph (1), by striking ‘‘member re-
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tired’’ and inserting ‘‘qualified retiree who is re-
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tired’’; and
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(2) by striking paragraph (2) and inserting the
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following new paragraph:
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•HR 333 IH
‘‘(2) DISABILITY RETIREES WITH LESS THAN 20
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YEARS OF SERVICE.—The retired pay of a qualified
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retiree who is retired under chapter 61 of this title
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with fewer than 20 years of creditable service is sub-
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ject to reduction under sections 5304 and 5305 of
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title 38, but only by the amount (if any) by which
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the amount of the member’s retired pay under such
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chapter exceeds the amount equal to 21⁄2 percent of
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the member’s years of creditable service multiplied
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by the member’s retired pay base under section
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1406(b)(1) or 1407 of this title, whichever is appli-
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cable to the member.’’.
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(c) CONFORMING AMENDMENTS REFLECTING END
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OF CONCURRENT RECEIPT PHASE-IN PERIOD.—Section
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1414 of title 10, United States Code, is further amend-
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ed—
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(1) in subsection (a), as amended by subsection
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(a) of this section, by striking the final sentence;
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(2) by striking subsection (c) and redesignating
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subsections (d) and (e) as subsections (c) and (d),
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respectively; and
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(3) in subsection (d), as so redesignated, by
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striking paragraphs (3) and (4).
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(d) CLERICAL AMENDMENTS.—
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•HR 333 IH
(1) SECTION HEADING.—The heading for sec-
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tion 1414 of title 10, United States Code, is amend-
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ed to read as follows:
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‘‘§ 1414. Members eligible for retired pay who are also
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eligible for veterans’ disability compensa-
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tion: concurrent payment of retired pay
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and disability compensation’’.
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(2) TABLE OF SECTIONS.—The item relating to
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such section in the table of sections at the beginning
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of chapter 71 of title 10, United States Code, is
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amended to read as follows:
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‘‘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-
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SECTION REDESIGNATION.—Section 1413a(f) of title 10,
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United States Code, is amended by striking ‘‘Subsection
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(d)’’ and inserting ‘‘Subsection (c)’’.
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(f) EFFECTIVE DATE.—The amendments made by
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this section shall take effect on the first day of the first
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month beginning after the date of the enactment of this
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Act and shall apply to payments for months beginning on
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or after that date.
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Æ
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