Concurrent Receipt Update

Unlike the previous two years, the Obama Administration did not seek funding for concurrent receipt improvements in its FY 2012 budget request, but several lawmakers are working to expand eligibility for the concurrent receipt of military retired pay and veterans’ disability compensation, without offset.

Rep. Joe Wilson (S.C.), chairman of the House Military Personnel Subcommittee, introduced legislation (H.R. 186) that expands concurrent receipt for service members who were medically retired with less than 20 years of service. The measure is similar to the Administration’s proposal from last year and seeks to phase in the benefit enhancements for these so-called Chapter 61 retirees over a five-year period.  In 2008, Congress voted to expand eligibility for Combat-Related Special Compensation (CRSC) coverage to Chapter 61 retirees and this new initiative would, in effect, extend eligibility for Concurrent Retirement and Disability Pay (CRDP) to all Chapter 61 retirees over five years.

Rep. Sanford Bishop (Ga.), ranking member of the House Military Construction and Veteran’s Affairs Appropriations Subcommittee and co-chair of the Military Families Caucus, also introduced a bill (H.R. 333) that will eliminate the restrictions that currently prevent many disabled retirees from concurrently receiving their full military retired pay and veterans’ disability compensation. “The Disabled Veteran Tax Termination Act”  seeks to provide concurrent receipt of both earned benefits for retirees who are rated less than 50-percent disabled; eliminate the existing phase-in period for concurrent receipt; and extend concurrent receipt eligibility to Chapter 61 (medically retired) retirees with less than 20 years of service who are receiving CRDP. 

Additionally Rep. Gus Bilikaris (Fla.) introduced the “Retired Pay Restoration Act” (H.R. 303) that provides current receipt for retirees with a disability rating of 50 percent or less and receiving CRDP.