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UPDATE ON CONCURRENT RECEIPT LEGISLATION |
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For nearly two decades, legislation that would allow career retirees of the Armed Forces to collect full military retirement and Department of Veterans Affairs (VA) disability compensation has been pending before Congress. Currently, if they receive VA disability compensation, their retirement pay is reduced by a commensurate amount. The House leadership has announced a plan that has purportedly been agreed to by leaders in the Senate and the Administration. The legislation will be included in this year's Department of Defense (DOD) authorization bill, which is currently in conference. According to House officials, the DOD authorization bill should be finalized by November. If enacted, Combat-Related Special Compensation (CRSC) would be expanded to include all combat or hazardous duty disabilities from 10% to 100%, effective January 1, 2004. Currently, only those with qualifying disabilities rated 60% or higher or who have a compensable disability associated with the Purple Heart Medal are eligible. Retirees must apply to their parent service for CRSC payments, but there is no phase-in period for CRSC. DOD is discouraging retirees from applying until this provision is signed into law. The DAV website has a link to the CRSC application. Also, the DOD provision would authorize all career military retirees with VA disability ratings of 50% or higher to have full concurrent receipt phased in over a 10-year period. No application is expected to be required. If enacted, the phase in would begin January 1, 2004, in the following amounts: 100% disability, $750 per month; 90% disability, $500 per month; 80% disability, $350 per month; 70% disability, $250 per month; 60% disability, $125 per month; and 50% disability, $100 per month. Each following year, until 2014, the payment amount will increase by approximately 10 percent. In 2005, entitled veterans would get back another 10% of any remaining offset; in 2006, they would get back 20% of the remaining offset; in 2007, 30% of the remaining offset; and so on. By January 2014, disabled retirees with 50% and higher ratings will be entitled to full concurrent receipt of military retired pay and VA disability compensation. National Guard and Reservist career retirees will be treated the same as active duty retirees, and will be included in both the CRSC program and the phase-in of concurrent receipt for veterans rated 50 percent or higher. Disabled retirees who qualify for both programs would have to choose one or the other. Because the CRSC program provides payment immediately, rather than the 10-year phase-in for concurrent receipt, legislators plan to allow an annual election option for CRSC-eligibles. This recognizes that a retiree who is 100% disabled, but only 60% of that is due to combat-related conditions, may find it advantageous to elect CRSC payments for a few years until the concurrent receipt payment rises to a level that exceeds the CRSC payment. Because CRSC payments are tax-free and non-disability retired pay is not, this could also figure into qualifying retirees’ election decisions. Designing specific procedures for retirees to make such elections is but one of the many administrative challenges the Defense Department will have to address in implementing the new authority. The new agreement also calls for the formation of a special commission to review the VA disability system and recommend any needed changes. Of its 13 commissioners, at least seven will have to be highly decorated combat veterans. Four will be appointed by the House, four by the Senate, and five by the President. The DAV has strong concerns regarding changes to title 38, and we will certainly scrutinize any suggestions to modify or reduce benefits available to disabled veterans. The proposed legislation is a move forward; however, military retirees with non-combat disabilities rated less than 50 percent will still be treated unfairly. The DAV will continue to fight for those veterans that have not been included. The DAV greatly appreciates the efforts of legislators who have fought so hard on this issue. Long-time concurrent receipt champions Representative Mike Bilirakis (R-FL) and Senator Harry Reid (D-NV) have kept the issue on the front burner for the past 3 years. The DAV especially thanks Representative Jim Marshall (D-GA), a freshman member of Congress and a combat disabled veteran, who came to Washington and immediately took strong steps to correct what he perceived as a gross injustice. Congressman Marshall’s discharge petition played a crucial role in attaining benefits for thousands of disabled veterans. The DAV also expresses thanks to Representatives Thomas Tancredo (R-CO) and Walter Jones (R-NC), who, despite tremendous pressure from House leadership, courageously signed the discharge petition. Finally, the greatest praise and recognition belongs to members of our great organization for their steadfast efforts in achieving this victory. Although only a portion of our membership is affected by concurrent receipt, thousands upon thousands of e-mails, letters, and phone calls from DAV members have flooded Capitol Hill and the White House demanding that the unjust ban on concurrent receipt be lifted. As it has always been, the DAV was in the forefront to fight for disabled veterans and their families. |
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