S.Amdt. 1478

1. Adds SEC. 652. PHASED EXPANSION OF ELIGIBILITY FOR CONCURRENT RECEIPT OF RETIRED PAY AND VETERANS' DISABILITY COMPENSATION at the end of subtitle D of title VI

   Adds a section

   In S. 1390 · Placed on Calendar Senate

   "(2) Continuation of incentives.--Nothing in paragraph (1) shall be construed to prohibit or limit the continuing provision to an individual after the date specified in that paragraph of an incentive first provided the individual under this section before that date.".

   Inserted: SEC. 652. PHASED EXPANSION OF ELIGIBILITY FOR CONCURRENT RECEIPT OF RETIRED PAY AND VETERANS' DISABILITY COMPENSATION.

   Inserted: (a) Phased Expansion.--Subsection (a) of section 1414 of title 10, United States Code, is amended to read as follows:

   Inserted: "(a) Payment of Both Retired Pay and Compensation.--

   Inserted: "(1) Payment of both required.--

   Inserted: "(A) In general.--Subject to subsection (b), a member or former member of the uniformed services who is entitled for any month to retired pay and who is also entitled for that month to veterans' disability compensation for a qualifying service-connected disability (in this section referred to as a 'qualified retiree') is entitled to be paid both for that month without regard to sections 5304 and 5305 of title 38.

   Inserted: "(B) General applicability of phase-in of full concurrent receipt.--During the period beginning on January 1, 2004, and ending on December 31, 2013, payment of retired pay to a qualified retiree under this subsection is subject to subsection (c).

   Inserted: "(C) Exception from phase-in for 100 percent disabled retirees.--Payment of retired pay under this subsection is subject to subsection (c) only during the period beginning on January 1, 2004, and ending on December 31, 2004, in the case of the following:

   Inserted: "(i) A qualified retiree receiving veterans' disability compensation for a disability rated as 100 percent.

   Inserted: "(ii) A qualified retiree receiving veterans' disability compensation at the rate payable for a 100 percent disability by reason of a determination of individual unemployability.

   Inserted: "(D) Exception from phase-in for certain chapter 61 retirees.--Subject to subsection (b), on or after January 1, 2010, payment of retired pay under this subsection is not subject to subsection (c) in the case of a qualified retiree described in subparagraph (B) or (C) of paragraph (2).

   Inserted: "(2) Qualifying service-connected disability.--In this section, the term 'qualifying service-connected disability' means the following:

   Inserted: "(A) In the case of a member or former member receiving retired pay under any provision of law other than chapter 61 of this title, or under chapter 61 with 20 years or more of service otherwise creditable under section 1405 or computed under section 12732 of this title, a service-connected disability or combination of service-connected disabilities that is rated as not less than 50 percent disabling by the Secretary of Veterans Affairs.

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   Inserted: "(B) In the case of a member or former member receiving retired pay under chapter 61 of this title with less than 20 years of service otherwise creditable under section 1405 or computed under section 12732 of this title, a service-connected disability or combination of service-connected disabilities that is rated by the Secretary of Veterans Affairs at the disabling level specified in one of the following clauses (and is effective on or after the date specified in the applicable clause):

   Inserted: "(i) January 1, 2010, rated 100 percent, or a rate payable at 100 percent by reason of individual unemployability or rated 90 percent.

   Inserted: "(ii) January 1, 2011, rated 80 percent or 70 percent.

   Inserted: "(iii) January 1, 2012, rated 60 percent or 50 percent.

   Inserted: "(C) In the case of a member or former member receiving retired pay under chapter 61 regardless of years of service, a service-connected disability or combination of service-connected disabilities that is rated by the Secretary of Veterans Affairs at the disabling level specified in one of the following clauses (and is effective on or after the date specified in the applicable clause):

   Inserted: "(i) January 1, 2013, rated 40 percent or 30 percent.

   Inserted: "(ii) January 1, 2014, any rating.".

   Inserted: (b) Conforming Special Rule Modification.--Subsection (b) of such section is amended to read as follows:

   Inserted: "(b) Special Rules for Chapter 61 Disability Retirees.--

   Inserted: "(1) General rule.--The retired pay of a member retired under chapter 61 of this title 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: "(2) Special rule for retirees with less than 20 years of service.--The retired pay of a member retired under chapter 61 of this title with less than 20 years of creditable service otherwise creditable under section 1405 or computed under section 12732 of this title, 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 equal to 2\1/2\ percent of the member's years of creditable service multiplied by the member's retired pay base under section 1406(b)(1) or 1407 of this title, whichever is applicable to the member.".

   Inserted: (c) Conforming Amendment.--Subsection (c) of such section is amended by striking "the second sentence of".

   Inserted: (d) Clerical Amendments.--

   Inserted: (1) Section heading.--The heading of such section is amended to read as follows:

   Inserted: "Sec. 1414. Concurrent receipt of retired pay and veterans' disability compensation".

   Inserted: (2) Table of sections.--The table of sections at the beginning of chapter 71 of such title is amended by striking the item related to section 1414 and inserting the following new item:

   Inserted: "1414. Concurrent receipt of retired pay and veterans' disability compensation.".

   Inserted: (e) Effective Date.--The amendments made by this section shall take effect on January 1, 2010.

   Original wording

   At the end of subtitle D of title VI, add the following:

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As printed