Military Retirement, Concurrent Receipt, and Related Major Legislative Issues

The military retirement system includes benefits for retirement after an active or reserve military career, disability retirement, and survivor benefits for eligible survivors of deceased retirees. The change to the system that has generated the most recent legislative activity involves whether some or all military retirees should be allowed to receive both military retired pay and any VA disability compensation to which they are otherwise entitled this is referred to as concurrent receipt. Until 2004, the law provided that military retired pay had to be reduced by the amount of VA disability compensation. Some maintained this was inequitable and unfair it was defended on grounds of cost and of the need to avoid setting a precedent for concurrent receipt of numerous other federal benefits. The FY2004 NDAA P.L. 108-136, November 24, 2003, for the first time provided the concurrent receipt or its practical and financial equivalence to large numbers of military retirees. The FY2005 NDAA P.L. 108-375, October 28, 2004 118 Stat. 1811 expanded concurrent receipt eligibility by authorizing the immediate rather than a 10-year phase-in concurrent receipt for military retirees with a 100 service-connected disability. In its first session, the 110th Congress extended the Combat Related Special Compensation program to include those who were medically retired prior to completing 20 years of service rather than a normal longevity retirement. These individuals are generally referred to as Chapter 61 retirees. In addition those with a 100 VA Unemployability rating were granted full concurrent receipt, retroactive to December 31, 2004.