The "Retired Pay Restoration Act" expands eligibility for military retirees to receive both retired pay and veteran's disability compensation, regardless of disability rating percentage, effective January 1, 2021. This eliminates the previous 50% disability rating threshold.
Gus Bilirakis
Representative
FL-12
The "Retired Pay Restoration Act" expands eligibility for military retirees to receive both retired pay and veteran's disability compensation, regardless of disability rating. It removes the previous requirement that retirees have a service-connected disability rated at 50% or higher to receive both payments. This change ensures that qualified retirees, excluding certain Chapter 61 retirees, can receive both benefits without reduction. The act takes effect on January 1, 2021, applying to payments for months beginning on or after that date.
Retired Pay Restoration Act: No More Disability Rating Limits for Concurrent Receipt of Military Retirement and VA Disability Pay
The Retired Pay Restoration Act is shaking up how military retirement and disability benefits work. Starting January 1, 2021, the old rules requiring a 50% or higher disability rating to get both retired pay and VA disability compensation are gone. This means more veterans can receive the full benefits they've earned.
Cash and Compensation: What's Changing
This law expands eligibility for concurrent receipt, which is just a fancy way of saying you can get both your retirement pay and your disability compensation at the same time. Previously, only retirees with a disability rating of 50% or higher qualified. Now, that percentage requirement is removed, opening the door for many more veterans to receive full benefits. Section 3 of the bill lays out the details, updating Title 10 of the U.S. Code to reflect this change.
For example, imagine a veteran who served 20 years and has a service-connected disability rated at 30%. Before this law, they would likely have seen a reduction in their retirement pay to offset the disability compensation. Now, they can receive both payments in full. This change could mean a significant financial boost for veterans in similar situations, whether they're working in an office, on a construction site, or running their own business.
Real-World Rollout
The bill became effective on January 1, 2021. While this is great news, there are always potential challenges. The increased number of eligible veterans could put a strain on the VA system, potentially leading to longer wait times for claims processing. It also means more government spending on these benefits. Also, it is important to note that Chapter 61 retirees (those retired due to disability with less than 20 years of service) are excluded unless they meet certain service requirements.
The Big Picture
This law builds upon previous efforts to eliminate the offset between retirement pay and disability compensation. Before 1999, every dollar of disability pay meant a dollar less in retirement pay. While progress has been made over the years, this bill takes a big step toward ensuring all eligible veterans receive the full benefits they're entitled to, regardless of their disability rating. This could be a real game-changer for many veterans and their families, providing greater financial security and recognition for their service.