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HEHS-95-136R 1 (1995-04-27)

handle is hein.gao/gaobackuu0001 and id is 1 raw text is: 


   AO)       United States
(3    O      General Accounting Office
             Washington, D.C. 20548

             Health, Education and Human Services Division

             B-260700

             April 27, 1995

             The Honorable John McCain
             United States Senate

             The Honorable Jon Kyl
             United States Senate

             Current law requires a career military service member who
             retires and is disabled to offset his or her retirement pay by
             any disability compensation the member receives from the
             Department of Veterans Affairs (VA). Over the past several
             years, several members of the Congress have proposed bills to
             allow concurrent receipt of Department of Defense (DOD)
             longevity' retirement and VA disability compensation. To
             provide information the Congress could use in its
             deliberations on this matter, the National Defense
             Authorization Act for Fiscal Year 1993 (P.L. 102-484) required
             DOD to report on the cost of concurrent receipt of military
             retirement pay and VA disability compensation. In December
             1993, DOD reported, If full concurrent receipt were enacted,
             it would add $50.8 billion in present value of unfunded
             government liabilities.,2 In March 1994, DOD revised this
             estimate to $53.5 billion.3

             Because of your concerns with the accuracy of DOD's estimate,
             you asked us (1) to assess the methodology DOD used in
             preparing its report about full concurrent receipt and (2) to
             provide estimates of the 1-year outlays for allowing



             'Military personnel are generally eligible for longevity
             retirement upon completion of 20 or more years of qualifying
             service. Service members who become physically unfit to
             perform their military duties are eligible for disability
             retirement under certain conditions and may retire with less
             than 20 years of service.

             2Unfunded liability is the total amount of liability
             attributable to past service for which no assets have been set
             aside.

             3DOD's unfunded liability estimate was revised to reflect
             costs associated with partial offsets for active duty
             personnel projected to retire.

                                      GAO/HEHS-95-136R Concurrent Receipt



                                    /57o2/Y

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