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.

SA 848. Mr. REID (for himself, Mr. McCain, Mr. Dorgan, Mr. Inhofe, Mr. Nelson of Florida, Mr. Jeffords, Ms. Collins, Mr. Edwards, Mr. Bingaman, Mrs. Murray, Mr. Biden, Mrs. Clinton, Ms. Murkowski, Mrs. Lincoln, Mr. Graham of South Carolina, Mr. Kerry, and Mr. Hagel) proposed an amendment to the bill H.R. 1588, to authorize appropriations for fiscal year 2004 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes; as follows:

At the appropriate place in title VI, add the following:

SEC. ____. FULL PAYMENT OF BOTH RETIRED PAY AND COMPENSATION TO DISABLED MILITARY RETIREES.

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

“Sec. 1414. Members eligible for retired pay who have

service-connected disabilities: payment of retired pay and

veterans' disability compensation

“(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.

“(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.

“(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.

“(d) Definitions.--In this section:

“(1) The term ‘retired pay' includes retainer pay, emergency officers' retirement pay, and naval pension.

“(2) The term ‘veterans' disability compensation' has the meaning given the term ‘compensation' in section 101(13) of title 38.”.

(b) Repeal of Special Compensation Programs.--Sections 1413 and 1413a of such title are repealed.

(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:

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

(d) Effective Date.--The amendments made by this section shall take effect on--

(1) the first day of the first month that begins after the date of the enactment of this Act; or

(2) the first day of the fiscal year that begins in the calendar year in which this Act is enacted, if later than the date specified in paragraph (1).

(e) Prohibition on 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 applicable under subsection (d).