Introduced March 14, 2025 by Gus Bilirakis · Last progress March 14, 2025
The bill restores full concurrent retirement pay and VA disability compensation for combat-disabled veterans, improving their financial security, but increases federal costs paid by taxpayers and requires DoD/VA administrative changes that could cause implementation challenges.
Combat-disabled veterans can receive full military retired pay and full VA disability compensation concurrently, restoring lost income and increasing financial security for affected veterans.
The bill includes effective-date and cross-reference changes to enable prompt implementation so qualifying payments can begin in the month after enactment.
Ending the offset that reduced retired pay when VA compensation was paid increases federal outlays, generating additional cost to taxpayers.
DoD and VA must update pay systems and perform administrative work to implement the change, which could cause delays, errors, or temporary disruptions to benefit timing.
Based on analysis of 2 sections of legislative text.
Allows eligible retirees with combat-related disabilities to receive full military retired pay and VA disability compensation concurrently by excluding 38 U.S.C. §§5304–5305 offsets from retiree-pay calculations.
Allows military retirees who have combat-related disabilities to receive both full military retired pay and VA disability compensation at the same time by preventing certain VA reduction rules from reducing their retired pay. The change amends provisions in title 10 to exclude reductions under 38 U.S.C. §§5304 and 5305 from the retiree-pay calculation and clarifies that chapter 61 disability retirees are covered. The changes take effect the first day of the first month after enactment and apply to payments for months beginning on or after that date.