Disabled Veterans Tax Termination Act

Disabled Veterans Tax Termination Act - Amends federal military retired pay provisions to: (1) permit veterans with a service-connected disability of less than 50% to concurrently receive both retired pay and disability compensation; (2) eliminate provisions requiring a phase-in between January 1, 2004, and December 31, 2013, of concurrent receipt of retired pay and disability compensation; (3) eliminate a phase-in of concurrent receipt of retired pay and disability compensation for disabled veterans determined to be individually unemployable; and (4) require a limited reduction in retired pay for qualified disability retirees with less than 20 years of retirement-creditable service.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 333 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 333

To amend title 10, United States Code, to permit retired members of the 
Armed Forces who have a service-connected disability rated less than 50 
percent to receive concurrent payment of both retired pay and veterans' 
     disability compensation, to eliminate the phase-in period for 
  concurrent receipt, to extend eligibility for concurrent receipt to 
chapter 61 disability retirees with less than 20 years of service, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 22, 2013

Mr. Bishop of Georgia (for himself, Mr. Rogers of Alabama, Ms. Brown of 
   Florida, Mr. Simpson, Mr. Courtney, Mr. Runyan, Mr. DeFazio, Mr. 
Griffin of Arkansas, Mr. Rahall, Ms. Tsongas, Ms. Bonamici, Mr. Larsen 
  of Washington, Mr. Holt, Mr. Moran, Mr. Loebsack, Mr. Tierney, Mr. 
 Connolly, and Mr. Peterson) introduced the following bill; which was 
  referred to the Committee on Armed Services, and in addition to the 
    Committee on Veterans' Affairs, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend title 10, United States Code, to permit retired members of the 
Armed Forces who have a service-connected disability rated less than 50 
percent to receive concurrent payment of both retired pay and veterans' 
     disability compensation, to eliminate the phase-in period for 
  concurrent receipt, to extend eligibility for concurrent receipt to 
chapter 61 disability retirees with less than 20 years of service, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disabled Veterans Tax Termination 
Act''.

SEC. 2. CONCURRENT RECEIPT OF BOTH RETIRED PAY AND VETERANS' DISABILITY 
              COMPENSATION FOR MILITARY RETIREES WITH COMPENSABLE 
              SERVICE-CONNECTED DISABILITIES.

    (a) Inclusion of Retirees With Service-Connected Disabilities Rated 
Less Than 50 Percent.--Subsection (a) of section 1414 of title 10, 
United States Code, is amended--
            (1) by striking ``Compensation'' in the subsection heading 
        and all that follows through ``Subject'' and inserting 
        ``Compensation.--Subject'';
            (2) by striking ``qualifying service-connected disability'' 
        and inserting ``service-connected disability''; and
            (3) by striking paragraph (2).
    (b) Repeal of Phase-In of Concurrent Receipt of Retired Pay and 
Veterans' Disability Compensation.--Such section is further amended--
            (1) in subsection (a), as amended by subsection (a) of this 
        section, by striking the final sentence;
            (2) by striking subsection (c) and redesignating 
        subsections (d) and (e) as subsections (c) and (d), 
        respectively; and
            (3) in subsection (d), as so redesignated, by striking 
        paragraphs (3) and (4).
    (c) Inclusion of Disability Retirees With Less Than 20 Years of 
Service.--Subsection (b) of such section is amended--
            (1) in paragraph (1), by striking ``member retired'' and 
        inserting ``qualified retiree who is retired''; and
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) Disability retirees with less than 20 years of 
        service.--The retired pay of a qualified retiree who is retired 
        under chapter 61 of this title with fewer than 20 years of 
        creditable service is subject to reduction under sections 5304 
        and 5305 of title 38, but only by the amount (if any) by which 
        the amount of the member's retired pay under such chapter 
        exceeds the amount equal to 2\1/2\ percent of the member's 
        years of creditable service multiplied by the member's retired 
        pay base under section 1406(b)(1) or 1407 of this title, 
        whichever is applicable to the member.''.
    (d) Clerical Amendments.--
            (1) Section heading.--The heading for such section is 
        amended to read as follows:
``Sec. 1414. Members eligible for retired pay who are also eligible for 
              veterans' disability compensation: concurrent payment of 
              retired pay and disability compensation''.
            (2) Table of sections.--The item relating to such section 
        in the table of sections at the beginning of chapter 71 of such 
        title is amended to read as follows:

``1414. Members eligible for retired pay who are also eligible for 
                            veterans' disability compensation: 
                            concurrent payment of retired pay and 
                            disability compensation.''.
    (e) Conforming Amendment.--Section 1413a(f) of such title is 
amended by striking ``Subsection (d)'' and inserting ``Subsection 
(c)''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first month beginning after the date of 
the enactment of this Act and shall apply to payments for months 
beginning on or after that date.
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