# Plain Language Summary: Disabled Veterans Tax Termination Act

Right now, military retirees with service-connected disabilities face an unfair choice: they can receive their military retirement pay OR their veterans disability compensation, but not both. This bill eliminates that restriction and allows disabled veterans to collect both payments at the same time.

Here's what changes. Currently, only military retirees with disabilities rated at 50 percent or higher can receive both their retirement pay and disability compensation simultaneously. Everyone else has to pick one or the other, which means many disabled veterans lose money. This bill removes that 50 percent threshold, so any retired service member with a service-connected disability—no matter how minor—can now receive both payments. Additionally, the bill extends this benefit to people medically retired under Chapter 61 (the military's disability retirement program) who have fewer than 20 years of service. Previously, these individuals were completely excluded from receiving concurrent payments.

The practical impact is straightforward: disabled veterans will receive more money. A retired soldier with a 30 percent disability rating, for example, could previously only collect either their retirement check or their disability check. Under this bill, they'd get both. For Chapter 61 retirees with less than 20 years of service, this opens up an entirely new benefit they didn't have access to before. The bill takes effect the first day of the month after it becomes law and applies to all payments going forward. This is essentially a pay raise for disabled veterans who have already sacrificed for their country.

Disabled Veterans Tax Termination Act

Bishop, Sanford D.

Disabled Veterans Tax Termination Act This bill modifies provisions related to military retired pay. Specifically, the bill authorizes veterans with a service-connected disability of less than 50% to concurrently receive both retired pay and disability compensation. The bill also makes qualified disability retirees with less than 20 years of retirement-creditable service eligible for concurrent receipt, subject to specified reductions in retired pay.