A newly proposed House bill seeks to increase compensation for tens of thousands of veterans injured in combat. This bill would allow them to receive both military retirement pay and Department of Veterans Affairs (VA) disability benefits without any deductions.
Combat Veterans Retirement Restoration Act
Indiana Republican Representative Victoria Spartz has introduced the Combat Veterans Retirement Restoration Act. This act is designed to address an existing issue for veterans who were forced to medically retire because of combat-related injuries before completing 20 years of service. Currently, these veterans lose a portion of their retirement pay as it is reduced by their VA disability compensation.
Spartz stated, “Combat veterans forced to medically retire because of their injuries should not lose retirement benefits simply because they could not reach 20 years of service.” She emphasized that the bill honors commitments to those who have sacrificed for the nation. Although the legislation could benefit approximately 50,000 veterans, it presently lacks co-sponsors and is in the early stages of the legislative process.
Importance of Concurrent Benefits
Military retirement pay and VA disability compensation serve distinct functions. Retirement pay is accumulated through service, whereas disability compensation covers injuries or illnesses related to service. Under current laws, veterans with less than 20 years of service must often forfeit part of one benefit when receiving the other. This penalizes veterans whose careers ended prematurely due to combat injuries. For these veterans, the financial impact can amount to thousands of dollars annually.
Details of the Bill
The proposed bill, H.R. 10463, ensures that veterans forced to retire early due to combat-related disabilities can receive both their military retirement pay and VA disability compensation simultaneously. Alex Beene, a financial literacy instructor, noted that allowing veterans to receive both benefits would treat retirement pay and VA disability as compensation for service and injury, respectively.
Introduced on September 16, the bill has been forwarded to a committee but is still awaiting co-sponsors. Kevin Thompson, the CEO of 9i Capital Group, remarked that the proposal aims to provide financial security similar to Social Security, helping to prevent poverty among disabled veterans.
Beneficiaries of the Act
The Combat Veterans Retirement Restoration Act primarily assists:
- Service members injured in combat who retired medically.
- Those receiving VA disability compensation.
- Veterans who did not fulfill the 20-year service requirement.
Michael Ryan, a finance expert, pointed out that under current laws, disabled service members are medically retired before reaching 20 years, discovering that receiving VA disability compensation reduces their earned military retirement pay. This problem would be resolved with the passing of the new bill, though costs could pose challenges.
Other Considerations for Veterans Benefits
Beyond the Combat Veterans Retirement Restoration Act, Congress is discussing the Major Richard Star Act, aiming for similar benefits. Other topics include changes to VA disability ratings and the implementation of the PACT Act, expanding healthcare for veterans exposed to harmful substances.
Next Steps for the Bill
Currently, H.R. 10463 is in committee with no co-sponsors. Many view it as a logical step to protect benefits for those who served. Critics ask why funds available for Social Security adjustments can’t be allocated to enable veterans to receive entitled benefits concurrently. The potential financial feasibility appears to be the main hurdle.
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