Retiree Relief Act

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builtgypsy

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The U.S. House of Representatives recently approved H.R. 2990, the Disabled Military Retiree Relief Act of 2009. The bill includes a one-year fix to relieve the disabled veterans tax by expanding concurrent receipt, which would make more disabled veterans eligible to receive both military retired pay and veterans disability compensation. H.R. 2990 would change the current law, under which a veteran's retirement pay is cut by the amount of disability benefits the veteran receives. The text of H.R. 2990 is available on the Library of Congress' THOMAS website.
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Military Report - House Approves Retiree Relief Act

I haven't had a chance to read the bill yet, but I'm hoping it's good news!
 
Here's an excerpt of the important part:

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

  • (a) Payment of Both Retired Pay and Disability Compensation-

    • (1) PAYMENT OF BOTH REQUIRED-

      • (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.
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When CR will take effect
2) QUALIFYING SERVICE-CONNECTED DISABILITY DEFINED- In this section, the term `qualifying service-connected disability' means the following:
      • `(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.

      • `(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, subject to paragraph (3), is effective on or after the date specified in the applicable clause):

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

        • `(ii) January 1, 2011, rated 80 percent or 70 percent.

        • `(iii) January 1, 2012, rated 60 percent or 50 percent.

      • `(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, subject to paragraph (3), is effective on or after the date specified in the applicable clause):

        • `(i) January 1, 2013, rated 40 percent or 30 percent.

        • `(ii) January 1, 2014, any rating.

    • `(3) LIMITED DURATION- Notwithstanding the effective date specified in each clause of subparagraphs (B) and (C) of paragraph (2), the clause shall apply only if the termination date specified in subparagraph (D) of paragraph (1) occurs during or after the calendar year specified in the clause, except that, eligibility may not extend beyond the termination date.'.
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Rules...

  • `(b) Special Rules for Chapter 61 Disability Retirees When Eligibility Has Been Established for Such Retirees-

    • `(1) GENERAL REDUCTION 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 members 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.

    • `(2) RETIREES WITH FEWER THAN 20 YEARS OF SERVICE-

      • `(A) BEFORE TERMINATION DATE- If a member with a qualifying service-connected disability (as defined in subsection (a)(2)) is retired under chapter 61 of this title with fewer than 20 years of creditable service otherwise creditable under section 1405 or computed under section 12732 of this title, and the termination date specified in subsection (a)(1)(D) has not occurred, the retired pay of the member 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.

      • `(B) AFTER TERMINATION DATE- 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, or with less than 20 years of service computed under section 12732 of this title, at the time of the retirement of the member if the termination date in paragraph (1)(D) of such subsection has occurred.'.
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And here's a link to the Thomas site:

Search Results - THOMAS (Library of Congress)
 
Now does this mean that there is a one year extention for eligibility or you have to meet the qualifications during the alloted time?

I read that: 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). Does this mean that retirees and chapter 61's will receive both retirement/chp 61 and VA disability compensation up until 31 Dec 2013? Or does it mean that if you meet the qualifications during the extention you will receive both concurrently from that point on?
 
Thank-you for this new posting!

Can you break it down in layman's terms?

What are the proposed changes?
How do they differ from today's chapter 61 with less than 20 years active service who are out on TDRL/PDRL?
 
Unfortunately, this act was not included in the final NDAA proposal this fiscal year. Maybe next year...
 
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