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1 (October 3, 2002)

handle is hein.crs/crsmthabbje0001 and id is 1 raw text is: Order Code RS21327 October 3, 2002 CRS Report for Congress Received through the CRS Web Concurrent Receipt of Military Retirement and VA Disability Benefits: Budgetary Issues Amy Belasco Foreign Affairs, Defense and Trade Division Summary House and Senate conferees on the FY2003 National Defense Authorization Act (H.R. 4546) are currently considering provisions that would lift the longstanding prohibition on concurrent receipt (simultaneous payment) of Department of Defense (DoD) retired pay and Department of Veterans' Affairs (VA) disability benefits. The House-passed bill would phase in partial concurrent receipt by providing both retirement and VA benefits for those with disabilities of 60 percent or above by FY2007. The Senate-passed bill provides full concurrent receipt for military retirees with any disability rating in FY2003. The Administration has threatened to veto a bill that includes either the Senate or the House version of concurrent receipt. The Administration objects to establishing a precedent that would allow beneficiaries to receive more than one type of benefit stemming from the same period of service. The Administration also objects to the cost. According to Congressional Budget Office estimates, the House provisions would cost $1.1 billion in FY2003 and $24.8 billion over the next 10 years, while the Senate provisions would cost $4.3 billion in FY2003 and $61.2 billion over 10 years. About 110,000 retirees could receive higher payments under the House measure and about 700,000 under the Senate measure in FY2007 when both versions of concurrent receipt would be fully implemented. At that time, those eligible would receive an annual benefit increase of about $18,000 under the House provision and $6,400 under the Senate provision. The largest individual benefits would go to those with the highest disability levels. This report was prepared under the supervision of Gary Pagliano, Specialist in National Defense. It will be updated as warranted. Background Resolving the issue of concurrent receipt may be one of the more difficult issues to settle in the FY 2003 National Defense Authorization Act that is currently in conference. The President has threatened to veto the entire bill if either version of concurrent receipts Congressional Research Service + The Library of Congress

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