S.Amdt. 4174

SA 4174. Mr. REID submitted an amendment intended to be proposed by
him to the bill S. 2943, to authorize appropriations for fiscal year
2017 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of part II subtitle D of title V, add the
following:

SEC. ___. ELIGIBILITY FOR PAYMENT OF BOTH RETIRED PAY AND
VETERANS' DISABILITY COMPENSATION FOR MILITARY
RETIREES WITH SERVICE-CONNECTED DISABILITIES
RATED 40 PERCENT DISABLING.

(a) In General.--Subsection (a)(2) of section 1414 of title
10, United States Code, is amended by striking ``means'' and
all that follows and inserting ``means the following:
``(A) During the period beginning on January 1, 2004, and
ending on June 30, 2017, 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.
``(B) After June 30, 2017, a service-connected disability
or combination of service-connected disabilities that is
rated as not less than 40 percent disabling by the Secretary
of Veterans Affairs.''.
(b) Clerical Amendments.--
(1) The heading of such section is amended to read as
follows:

``Sec. 1414. Members eligible for retired pay who are also
eligible for veterans' disability compensation rated 40
percent or higher: concurrent payment of retired pay and
disability compensation''.

(2) The item relating to such section in the table of
sections at the beginning of chapter 71 of such title is
amended to read as follows:

``1414. Members eligible for retired pay who are also eligible for
veterans' disability compensation rated 40 percent or
higher: concurrent payment of retired pay and disability
compensation.''.

(c) Effective Date.--The amendments made by this section
shall take effect on July 1, 2017, and shall apply to
payments for months beginning on or after that date.

SEC. ___. COORDINATION OF SERVICE ELIGIBILITY FOR COMBAT-
RELATED SPECIAL COMPENSATION AND CONCURRENT
RECEIPT.

(a) Amendment To Standardize Similar Provisions.--Paragraph
(2) of section 1414(b) of title 10, United States Code, is
amended to read as follows:
``(2) Special rule for retirees with fewer than 20 years of
service.--The retired pay of a qualified retiree who is
retired under chapter 61 of this title with fewer than 20
years of creditable service is subject to reduction by the
lesser of--
``(A) the amount of the reduction under sections 5304 and
5305 of title 38; or
``(B) the amount (if any) by which the amount of the
member's retired pay under such chapter 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.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on July 1, 2017, and shall apply to
payments for months beginning on or after that date.
______