H.R. 333: Disabled Veterans Tax Termination Act

This bill, known as the Disabled Veterans Tax Termination Act, aims to change certain rules regarding the benefits provided to retired members of the Armed Forces who have service-connected disabilities. Here are the key features of the legislation:

Concurrent Payment of Retired Pay and Disability Compensation

The bill proposes to allow military retirees with service-connected disabilities rated under 50 percent to receive both their retired pay and veterans disability compensation simultaneously. Currently, such retirees may not be eligible for full concurrent payments, which can limit their total income from both sources.

Inclusion of Additional Retirees

The bill also seeks to extend eligibility for concurrent receipt to:

• Chapter 61 Disability Retirees: This includes veterans who are retired from military service due to health issues after serving less than 20 years. The bill would ensure that these individuals can receive both their retirement pay and disability compensation without significant reductions.

Amendments to Current Law

The legislation proposes several amendments to the existing laws under title 10 of the United States Code, specifically focusing on:

• Changing specific terms to expand eligibility from "qualifying service-connected disability" to "service-connected disability".
• Adjusting how the retired pay for disability retirees with less than 20 years of service is calculated, reducing the amount subject to offset.
• Removing redundant or outdated provisions from the statute that are no longer applicable.

Effective Date

If passed, the amendments would take effect on the first day of the month following the enactment of the Act, affecting payments for months starting from that date onward.

Relevant Companies

• None found