To permit retired members of the Armed Forces who have a service-connected disability to receive both military retired pay by reason of their years of military service and disability compensation from the Department of Veterans Affairs for their disability.

1. Adds Sec. 316. (a) Restoration of Full Retired Pay Benefits.--Section 1414 of title 10, United States Code, is amended to read as follows: at the end of title I

   Adds a section

   In S. 1689 · Placed on Calendar Senate

   (d) Definitions.--For purposes of this section, the terms "appropriate committees of Congress", "military construction", and "military installation" have the meanings given such terms in section 2801 of title 10, United States Code, except that, with respect to military construction in a foreign country, the term "military installation" includes not only buildings, structures, and other improvements to real property under the operational control of the Secretary of a military department or the Secretary of Defense, but also any building, structure, or other improvement to real property to be used by the Armed Forces, regardless of whether such use is anticipated to be temporary or of longer duration; and further excepting that "appropriate committees of Congress" shall include the Subcommittees on Military Construction of the Committees on Appropriations of the Senate and House of Representatives.

   Inserted: Sec. 316. (a) Restoration of Full Retired Pay Benefits.--Section 1414 of title 10, United States Code, is amended to read as follows:

   Inserted: "Sec. 1414. Members eligible for retired pay who have service-connected disabilities: payment of retired pay and

   Inserted: veterans' disability compensation

   Inserted: "(a) Payment of Both Retired Pay and Compensation.--Except as provided in subsection (b), a member or former member of the uniformed services who is entitled to retired pay (other than as specified in subsection (c)) and who is also entitled to veterans' disability compensation is entitled to be paid both without regard to sections 5304 and 5305 of title 38.

   Inserted: "(b) Special Rule for Chapter 61 Career Retirees.--The retired pay of a member retired under chapter 61 of this title with 20 years or more of service otherwise creditable under section 1405 of this title at the time of the member's retirement is subject to reduction under sections 5304 and 5305 of title 38, but only to the extent that the amount of the member's retired pay under chapter 61 of this title exceeds the amount of retired pay to which the member would have been entitled under any other provision of law based upon the member's service in the uniformed services if the member had not been retired under chapter 61 of this title.

   Inserted: "(c) Exception.--Subsection (a) does not apply to a member retired under chapter 61 of this title with less than 20 years of service otherwise creditable under section 1405 of this title at the time of the member's retirement.

   Inserted: "(d) Definitions.--In this section:

   Inserted: "(1) The term 'retired pay' includes retainer pay, emergency officers' retirement pay, and naval pension.

   Inserted: "(2) The term 'veterans' disability compensation' has the meaning given the term 'compensation' in section 101(13) of title 38.".

   Inserted: (b) Repeal of Special Compensation Programs.--Sections 1413 and 1413a of such title are repealed.

   Inserted: (c) Clerical Amendment.--The table of sections at the beginning of such chapter is amended by striking the items relating to sections 1413, 1413a, and 1414 and inserting the following:

   Inserted: "1414. Members eligible for retired pay who have service-connected disabilities: payment of retired pay and veterans' disability compensation.".

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   Inserted: (d) Effective Date; Prohibition on Retroactive Benefits.--

   Inserted: (1) In general.--The amendments made by this section shall take effect on the first day of the first month that begins after the date of the enactment of this Act.

   Inserted: (2) Retroactive benefits.--No benefits may be paid to any person by reason of section 1414 of title 10, United States Code, as amended by subsection (a), for any period before the effective date under paragraph (1).

   Original wording

   At the end of title I, add the following:

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As printed