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1 (November 15, 2002)

handle is hein.crs/crsuntaaaux0001 and id is 1 raw text is: Order Code RS21327 Updated November 15,2002 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 Instead of including the House or Senate version of concurrent receipt (simultaneous payment) of military retirement and Department of Veterans Affairs (VA) disability benefits in the conference version of the FY2003 National Defense Authorization Act (H.R. 4546), Congress provided new benefits for military retirees whose disabilities stem from combat or combat-related activities. Those eligible would receive these new benefit payments, which match VA disability payments, in addition to retired pay. To qualify, retirees would have to demonstrate either that their disability was caused by an injury for which they received a Purple Heart or that their disability was rated at 60% or higher and resulted from armed conflict, hazardous service, training activities that simulate war, or an instrumentality of war (war-related circumstances). Within 180 days, the Department of Defense (DOD) must prescribe criteria and procedures for determining eligibility for these new benefits. DOD must also fund the new benefits, estimated to cost between $200 million and $800 million annually, and about $10 billion over 10 years. Disability ratings would continue to be made by DOD for military personnel who retiree on disability and by the VA for retirees who apply for disability benefits after leaving the military. Although it is difficult to predict the number who would be eligible, some have estimated that about 33,000 retirees could qualify. Unlike the House or Senate versions of concurrent receipt that the Administration threatened to veto, these new provisions were acceptable to the White House. With hearings by the Senate Armed Services Committee on concurrent receipt promised for next year, this issue is likely to resurface. This report was prepared under the supervision of Gary Pagliano, Specialist in National Defense. It will be updated as warranted. Eligibility and Cost of New Benefits Enacted The conference version of the FY2003 DOD Authorization Act (H.R. 4546) that was adopted by voice vote on November 12 in the House and on November 13 in the Senate includes new benefits for military retirees with 20 or more years of service whose disabilities stem from combat or combat-related activities. Until the Defense Department Congressional Research Service **o The Library of Congress

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