S.Amdt. 4176

SA 4176. 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 of subtitle D of title VI, add the
following:

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

(a) Restatement of Current Concurrent Payment Authority
With Extension of Payment Authority to Retirees With
Compensable Service-Connected Disabilities Rated Less Than 50
Percent Disabling.--Subsection (a) of section 1414 of title
10, United States Code, is amended by striking paragraphs (1)
and (2) and inserting the following new paragraphs:
``(1) In general.--Subject to paragraphs (2), (3), and (4)
and 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 service-connected disability or
combination of service-connected disabilities that is
compensable under the laws administered by the

[[Page S3204]]

Secretary of Veterans Affairs (hereinafter in this section
referred to as `qualified retiree') is entitled to be paid
both for that month without regard to sections 5304 and 5305
of title 38.
``(2) One-year phase-in for qualified retirees with total
disabilities.--During the period beginning on January 1,
2004, and ending on December 31, 2004, payment of retired pay
to a qualified retiree is subject to subsection (c) if the
qualified retiree is any of the following:
``(A) A qualified retiree receiving veterans' disability
compensation for a disability rated as 100 percent disabling
by the Secretary of Veterans Affairs.
``(B) A qualified retiree receiving veterans' disability
compensation at the rate payable for a disability rated as
100 percent disabling by reason of a determination of
individual unemployability.
``(3) 10-year phase-in for qualified retirees with
disabilities rated 50 percent disabling or higher.--During
the period beginning on January 1, 2004, and ending on
December 31, 2013, payment of retired pay to a qualified
retiree is subject to subsection (c) if the qualified retiree
is entitled to veterans' disability compensation for a
service-connected disability or combination of service-
connected disabilities that is rated not less than 50 percent
disabling by the Secretary of Veterans Affairs.
``(4) 10-year phase-in for qualified retirees with
compensable disabilities rated less than 50 percent
disabling.--During the period beginning on January 1, 2017,
and ending on December 31, 2026, payment of retired pay to a
qualified retiree is subject to subsection (d) if the
qualified retiree is entitled to veterans' disability
compensation for a service-connected disability or
combination of service-connected disabilities that is rated
less than 50 percent disabling by the Secretary of Veterans
Affairs but is compensable under the laws administered by the
Secretary of Veterans Affairs.''.
(b) Phase-in for Qualified Retirees With Compensable
Disabilities Rated Less Than 50 Percent Disabling.--Such
section is further amended--
(1) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (c) the following new
subsection (d):
``(d) Phase-in of Full Concurrent Receipt for Qualified
Retirees With Compensable Disabilities Rated Less Than 50
Percent Disabling.--During the period beginning on January 1,
2017, and ending on December 31, 2026, retired pay payable to
a qualified retiree that pursuant to subsection (a)(4) is
subject to this subsection shall be determined as follows:
``(1) Calendar year 2017.--For a month during 2017, the
amount of retired pay payable to a qualified retiree is the
amount (if any) of retired pay in excess of the current
baseline offset, plus $100.
``(2) Calendar year 2018.--For a month during 2018, the
amount of retired pay payable to a qualified retiree is the
sum of--
``(A) the amount specified in paragraph (1) for that
qualified retiree; and
``(B) 10 percent of the difference between (i) the current
baseline offset, and (ii) the amount specified in paragraph
(1) for that member's disability.
``(3) Calendar year 2019.--For a month during 2019, the
amount of retired pay payable to a qualified retiree is the
sum of--
``(A) the amount determined under paragraph (2) for that
qualified retiree; and
``(B) 20 percent of the difference between (i) the current
baseline offset, and (ii) the amount determined under
paragraph (2) for that qualified retiree.
``(4) Calendar year 2020.--For a month during 2020, the
amount of retired pay payable to a qualified retiree is the
sum of--
``(A) the amount determined under paragraph (3) for that
qualified retiree; and
``(B) 30 percent of the difference between (i) the current
baseline offset, and (ii) the amount determined under
paragraph (3) for that qualified retiree.
``(5) Calendar year 2021.--For a month during 2021, the
amount of retired pay payable to a qualified retiree is the
sum of--
``(A) the amount determined under paragraph (4) for that
qualified retiree; and
``(B) 40 percent of the difference between (i) the current
baseline offset, and (ii) the amount determined under
paragraph (4) for that qualified retiree.
``(6) Calendar year 2022.--For a month during 2022, the
amount of retired pay payable to a qualified retiree is the
sum of--
``(A) the amount determined under paragraph (5) for that
qualified retiree; and
``(B) 50 percent of the difference between (i) the current
baseline offset, and (ii) the amount determined under
paragraph (5) for that qualified retiree.
``(7) Calendar year 2023.--For a month during 2023, the
amount of retired pay payable to a qualified retiree is the
sum of--
``(A) the amount determined under paragraph (6) for that
qualified retiree; and
``(B) 60 percent of the difference between (i) the current
baseline offset, and (ii) the amount determined under
paragraph (6) for that qualified retiree.
``(8) Calendar year 2024.--For a month during 2024, the
amount of retired pay payable to a qualified retiree is the
sum of--
``(A) the amount determined under paragraph (7) for that
qualified retiree; and
``(B) 70 percent of the difference between (i) the current
baseline offset, and (ii) the amount determined under
paragraph (7) for that qualified retiree.
``(9) Calendar year 2025.--For a month during 2025, the
amount of retired pay payable to a qualified retiree is the
sum of--
``(A) the amount determined under paragraph (8) for that
qualified retiree; and
``(B) 80 percent of the difference between (i) the current
baseline offset, and (ii) the amount determined under
paragraph (8) for that qualified retiree.
``(10) Calendar year 2026.--For a month during 2026, the
amount of retired pay payable to a qualified retiree is the
sum of--
``(A) the amount determined under paragraph (9) for that
qualified retiree; and
``(B) 90 percent of the difference between (i) the current
baseline offset, and (ii) the amount determined under
paragraph (9) for that qualified retiree.
``(11) General limitation.--Retired pay determined under
this subsection for a qualified retiree, if greater than the
amount of retired pay otherwise applicable to that qualified
retiree, shall be reduced to the amount of retired pay
otherwise applicable to that qualified retiree.''.
(c) Conforming Amendments to Phase-in for Qualified
Retirees With Disabilities Rated 50 Percent Disabling or
Higher.--Subsection (c) of such section is amended--
(1) in the subsection caption, by inserting ``for Qualified
Retirees With Disabilities Rated 50 Percent Disabling or
Higher'' after ``Full Concurrent Receipt''; and
(2) by striking ``the second sentence of subsection
(a)(1)'' and inserting ``subsection (a)(3)''.
(d) 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: 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: concurrent payment of
retired pay and disability compensation.''.

(e) Effective Date.--The amendments made by this section
shall take effect on December 31, 2016, 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.
______