A newly introduced House bill aims to enhance compensation for tens of thousands of combat-injured veterans by enabling them to receive both military retirement pay and Department of Veterans Affairs (VA) disability benefits at the same time.
Bill Introduction
Indiana Republican Representative Victoria Spartz has put forward the Combat Veterans Retirement Restoration Act. This legislation targets an existing disparity affecting veterans who were medically retired due to combat injuries before completing 20 years in military service. Currently, these veterans see reductions in their retirement pay when also receiving VA disability compensation.
“Combat veterans forced to medically retire should not lose retirement benefits because they couldn’t serve for a full 20 years,” Spartz stated, emphasizing the need to honor the commitments made to those who have sacrificed in defense of the nation.
Why It Matters
Military retirement pay and VA disability benefits serve distinct purposes. Retirement pay compensates for service, while VA benefits address injuries or illnesses linked to service. Under current law, many veterans with fewer than 20 years of service must forgo part of one benefit when they receive the other. This effectively penalizes veterans whose careers were cut short due to combat injuries, often resulting in significant financial losses annually.
The Combat Veterans Retirement Restoration Act
According to Spartz’s office, the bill intends to ensure combat-disabled veterans, forced to medically retire early, can receive both military retired pay and VA disability compensation. “The Combat Veterans Retirement Restoration Act addresses an odd inequity where some servicemembers lose retirement pay because they receive VA compensation,” explained Alex Beene, a financial literacy instructor at the University of Tennessee at Martin.
Allowing these veterans to access both benefits could significantly bolster their retirement income, viewing military retirement as compensation for service and VA disability as compensation for injury.
Introduced on September 16, Bill H.R. 10463 has been referred to committee, with no co-sponsors yet. “Like Social Security has done for older Americans, the goal is to enhance financial security for those who served and were disabled,” said Kevin Thompson, CEO of 9i Capital Group.
Beneficiaries of the Act
This law would help those who:
- Were medically retired due to combat-related disabilities
- Receive VA disability compensation
- Did not complete 20 years of service
“A combat-disabled service member may be forced out before reaching 20 years, then find their military retirement pay reduced by their VA disability compensation,” noted finance expert Michael Ryan of MichaelRyanMoney.com.
If passed, the bill would solve this issue. However, the cost could be a significant barrier, potentially reaching $11 billion.
Other Veterans Benefits Discussions
The Combat Veterans Retirement Restoration Act is not the sole veterans’ benefits issue currently under discussion. Lawmakers are also considering the Major Richard Star Act, which would similarly allow disabled veterans to receive both types of compensation without penalties.
Separately, there are debates on potential changes to VA disability ratings for conditions like tinnitus and sleep apnea, which critics argue might reduce compensation for some veterans, but could also modernize the rating system.
The Department of Veterans Affairs continues to roll out the PACT Act, expanding benefits for veterans exposed to toxic substances, including burn pits and Agent Orange.
Next Steps
Currently, the bill faces challenges. H.R. 10463 was introduced recently and remains in committee without co-sponsors. However, it is seen as a sensible measure to protect benefits for those who served.
Kevin Thompson remarked, “We can allocate funds to remove the WEP and GPO for Social Security, enabling individuals to receive both government pensions and full Social Security benefits. So, why not allow those who served and were injured to receive the benefits they’ve earned? The funds are available; the question is whether there is the will to act.”