§ 1414.
Members eligible for retired pay who are also eligible for veterans’ disability compensation for disabilities rated 50 percent or higher: concurrent payment of retired pay and veterans’ disability compensation
(a)
Payment of Both Retired Pay and Compensation.—
(1)
In general.—
Subject to subsection (b), a member or former member of the uniformed services who is entitled for any month to retired pay and who is also entitled for that month to veterans’ disability compensation for a qualifying service-connected disability (hereinafter in this section referred to as a “qualified retiree”) is entitled to be paid both for that month without regard to sections 5304 and 5305 of title 38. During the period beginning on January 1, 2004, and ending on December 31, 2013, payment of retired pay to such a qualified retiree is subject to subsection (c), except that payment of retired pay is subject to subsection (c) only during the period beginning on January 1, 2004, and ending on December 31, 2004, in the case of the following:
(A)
A qualified retiree receiving veterans’ disability compensation for a disability rated as 100 percent.
(B)
A qualified retiree receiving veterans’ disability compensation at the rate payable for a 100 percent disability by reason of a determination of individual unemployability.
(2)
Qualifying service-connected disability.—
In this section, the term “qualifying service-connected disability” means a service-connected disability or combination of service-connected disabilities that is rated as not less than 50 percent disabling by the Secretary of Veterans Affairs.
(c)
Phase-in of Full Concurrent Receipt.—
During the period beginning on January 1, 2004, and ending on December 31, 2013, retired pay payable to a qualified retiree that pursuant to the second sentence of subsection (a)(1) is subject to this subsection shall be determined as follows:
(1)
Calendar year 2004.—
For a month during 2004, the amount of retired pay payable to a qualified retiree is the amount (if any) of retired pay in excess of the current baseline offset plus the following:
(A)
For a month for which the retiree receives veterans’ disability compensation for a disability rated as total, $750.
(B)
For a month for which the retiree receives veterans’ disability compensation for a disability rated as 90 percent, $500.
(C)
For a month for which the retiree receives veterans’ disability compensation for a disability rated as 80 percent, $350.
(D)
For a month for which the retiree receives veterans’ disability compensation for a disability rated as 70 percent, $250.
(E)
For a month for which the retiree receives veterans’ disability compensation for a disability rated as 60 percent, $125.
(F)
For a month for which the retiree receives veterans’ disability compensation for a disability rated as 50 percent, $100.
(2)
Calendar year 2005.—
For a month during 2005, the amount of retired pay payable to a qualified retiree is the sum of—
(A)
the amount specified in paragraph (1) for that qualified retiree; and
(B)
10 percent of the difference between (i) the current baseline offset, and (ii) the amount specified in paragraph (1) for that member’s disability.
(3)
Calendar year 2006.—
For a month during 2006, the amount of retired pay payable to a qualified retiree is the sum of—
(A)
the amount determined under paragraph (2) for that qualified retiree; and
(B)
20 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (2) for that qualified retiree.
(4)
Calendar year 2007.—
For a month during 2007, the amount of retired pay payable to a qualified retiree is the sum of—
(A)
the amount determined under paragraph (3) for that qualified retiree; and
(B)
30 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (3) for that qualified retiree.
(5)
Calendar year 2008.—
For a month during 2008, the amount of retired pay payable to a qualified retiree is the sum of—
(A)
the amount determined under paragraph (4) for that qualified retiree; and
(B)
40 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (4) for that qualified retiree.
(6)
Calendar year 2009.—
For a month during 2009, the amount of retired pay payable to a qualified retiree is the sum of—
(A)
the amount determined under paragraph (5) for that qualified retiree; and
(B)
50 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (5) for that qualified retiree.
(7)
Calendar year 2010.—
For a month during 2010, the amount of retired pay payable to a qualified retiree is the sum of—
(A)
the amount determined under paragraph (6) for that qualified retiree; and
(B)
60 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (6) for that qualified retiree.
(8)
Calendar year 2011.—
For a month during 2011, the amount of retired pay payable to a qualified retiree is the sum of—
(A)
the amount determined under paragraph (7) for that qualified retiree; and
(B)
70 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (7) for that qualified retiree.
(9)
Calendar year 2012.—
For a month during 2012, the amount of retired pay payable to a qualified retiree is the sum of—
(A)
the amount determined under paragraph (8) for that qualified retiree; and
(B)
80 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (8) for that qualified retiree.
(10)
Calendar year 2013.—
For a month during 2013, the amount of retired pay payable to a qualified retiree is the sum of—
(A)
the amount determined under paragraph (9) for that qualified retiree; and
(B)
90 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (9) for that qualified retiree.
(11)
General limitation.—
Retired pay determined under this subsection for a qualified retiree, if greater than the amount of retired pay otherwise applicable to that qualified retiree, shall be reduced to the amount of retired pay otherwise applicable to that qualified retiree.
(e)
Definitions.—
In this section:
(1)
Retired pay.—
The term “retired pay” includes retainer pay, emergency officers’ retirement pay, and naval pension.
(2)
Veterans’ disability compensation.—
The term “veterans’ disability compensation” has the meaning given the term “compensation” in
section 101(13) of title 38.
(3)
Disability rated as total.—
The term “disability rated as total” means—
(A)
a disability, or combination of disabilities, that is rated as total under the standard schedule of rating disabilities in use by the Department of Veterans Affairs; or
(B)
a disability, or combination of disabilities, for which the scheduled rating is less than total but for which a rating of total is assigned by reason of inability of the disabled person concerned to secure or follow a substantially gainful occupation as a result of disabilities for which veterans’ disability compensation may be paid.
(4)
Current baseline offset.—
(A)
In general.—
The term “current baseline offset” for any qualified retiree means the amount for any month that is the lesser of—
(i)
the amount of the applicable monthly retired pay of the qualified retiree for that month; and
(ii)
the amount of monthly veterans’ disability compensation to which the qualified retiree is entitled for that month.
(B)
Applicable retired pay.—
In subparagraph (A), the term “applicable retired pay” for a qualified retiree means the amount of monthly retired pay to which the qualified retiree is entitled, determined without regard to this section or sections 5304 and 5305 of title 38, except that in the case of such a retiree who was retired under chapter 61 of this title, such amount is the amount of retired pay to which the member would have been entitled under any other provision of law based upon the member’s service in the uniformed services if the member had not been retired under chapter 61 of this title.
(Added [Pub. L. 107–107, div. A, title VI, § 641(a)], Dec. 28, 2001, [115 Stat. 1149]; amended [Pub. L. 108–136, div. A, title VI, § 641(a)], Nov. 24, 2003, [117 Stat. 1511]; [Pub. L. 108–375, div. A, title VI, § 642], Oct. 28, 2004, [118 Stat. 1957]; [Pub. L. 109–163, div. A, title VI, § 663], Jan. 6, 2006, [119 Stat. 3316]; [Pub. L. 110–181, div. A, title VI, § 642(a)], Jan. 28, 2008, [122 Stat. 157]; [Pub. L. 113–76, div. C, title X, § 10001(b)(2)], Jan. 17, 2014, [128 Stat. 151]; [Pub. L. 114–92, div. A, title VI, § 631(d)(2)], Nov. 25, 2015, [129 Stat. 845].)