Military Retirement, Concurrent Receipt, and Related Major Legislative Issues [January 24, 2007] [open pdf - 129KB]
"The military retirement system includes benefits for retirement after an active or reserve military career, disability retirement, and survivor benefits for eligible survivors of deceased retirees. […] The change to the system that has generated the most recent legislative activity involves whether some or all military retirees should be allowed to receive both military retired pay and any VA [Veterans Affairs] disability compensation to which they are otherwise entitled; this is referred to as 'concurrent receipt.' Until 2004, the law provided that military retired pay had to be reduced by the amount of VA disability compensation. Some maintained this was inequitable and unfair; it was defended on grounds of cost and of the need to avoid setting a precedent for concurrent receipt of numerous other federal benefits. […] The most significant military retirement issue the 109th Congress dealt with in 2006 was whether military retirees with a 100% VA 'un'employability rating, but less than a 100% 'dis'ability rating, should be entitled to full concurrent receipt as was provided to 100% disability retirees in 2004. The Senate version of the FY2007 NDAA [National Defense Authorization Act] would have granted such retirees full concurrent receipt retroactive to December 31, 2004 rather than the October 1, 2009 date currently in effect; the House version did not address this issue. The Senate provision was not accepted by the Conference Committee. The 110th Congress will likely revisit this issue. This report will be updated as needed."
CRS Report for Congress, RL33449