Summary

Allows military disability retirees who also receive VA combat-related disability compensation to collect both retirement pay and VA disability pay at the same time without the usual offset rules that reduce retirement pay when VA compensation is received. The change removes prior phase-in language and takes effect on the first day of the first month after the law is enacted, applying to payments for months beginning on or after that date.

Key Points

• Allows concurrent payment of military disability retirement pay (chapter 61) and VA combat-related disability compensation without VA offset reductions.
• Specifically negates reductions under 38 U.S.C. §§ 5304 and 5305 for eligible combat-related cases.
• Replaces prior statutory language and removes earlier phase-in/transitional provisions so the rule applies immediately when effective.
• Amends statutory cross-references and the chapter table to reflect the new rule and formatting changes.
• Takes effect the first day of the first month after enactment and applies to payments for months beginning on or after that date.
• Affects Defense payroll administration and will require system updates to stop applying the offset in covered cases.
• Likely increases federal benefit outlays for affected retirees, though no funding source or appropriation is specified.
• Applies narrowly to chapter 61 disability retirees with combat-related VA compensation, not to all retirees or non-combat disabilities.

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