Status of Concurrent Receipt Legislation - Chapter 61's in Retired Military Vets Disability Tax (Concurrent Receipt) Forum

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Status of Concurrent Receipt Legislation - Chapter 61's

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Varkchief

Status of Concurrent Receipt Legislation - Chapter 61's

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Posts: 297

Jul 9 09 9:46 AM

What is the current status (if any) on the CRDP Legislation for Chap. 61's?
Did the house pass the entire bill? Is this the favorable legislation, or has it been chopped?
Please update...Thanks

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brianwl

#1

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Posts: 11847

Jul 9 09 11:49 AM

Does not play well
With others.

The current House legislation is HR 2990. I do not know if it has passed the full house. This legislation is seriously flawed. It provides CRDP to Ch61's who are rated 90% or higher or IU by the VA, only. However, it only pays the CRDP from 1 Jan 2010 to 30 Sep 2010.

This legislation cannot be extended via continuing legislation. It must be replaced by a completely new bill.

It creates a situation that those receiving CRDP will get a great big surprise in Jan and if they do not regularly check their checking account will bounce checks starting 1 Oct 2010.

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10SPEED

#2

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Posts: 3

Jul 9 09 12:02 PM

Arrrgghhh! Trying to get started on this network - just signed up to join in on the "fun."

I have been following the Chapter 61 issue for a while now and let me say I do appreciate everyone's time and input, as well as the effort put into bringing it to where it is now. I wanted to say, in reply, that I do believe it has passed the House, IMO it is favorable (as a starting point) and now is at the Senate for consideration - which first, it needs to be picked up for review. This is what I saw in a recent MOAA e-mail on the issue.

I sent both my Senators notice that I was following this and encouraged them to look at this issue and hopefully include it on their agenda. Many veterans are affected by this and wanting to see it passed, even if only for one year funding - it is a start and the right thing to do. I don't think once passed, Congress would let it not be re-funded at a later date.

While it may appear that only those on this network are doing anything, let me assure you that many veterans do read the posts and take individual action to help move it forward...I was one of those doing just that. Support is deeper that one might think.

Hopefully, with everyone's work and persistence, it will pay off.

I remain focused, hopeful and commited. Keep on - Keepin' on! Thanks!

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10SPEED

#3

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Posts: 3

Jul 9 09 12:18 PM

Clarification on this - I am referring to HR 2647; not sure how similar/different from HR 2990.

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maparker

#4

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Posts: 2141

Jul 9 09 4:45 PM

The House version of the FY 2010 NDAA included an expansion of CRDP for Chapter 61's that enacts the first phase of the President's CRDP expansion plan while they search for more money for full implementation. G-2 states the Senate will include a floor amendment to their version of the FY2010 NDAA that will at least echo the House CRDP expansion plan. Both the House and the Senate will then pass their separate versions that will be conference into one version and voted on by both the House and Senate. I expect the House CRDP plan will pass followed by a mad dash next year to find more money before the expansion falls off the cliff next October.

Mike

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brianwl

#5

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Posts: 11847

Jul 9 09 4:55 PM

Does not play well
With others.

10SPEED wrote:
Clarification on this - I am referring to HR 2647; not sure how similar/different from HR 2990.

HR 2647 is the 2010 NDAA which encompasses HR 2090. Here's the latest status:

7/6/2009 Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 96.

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10SPEED

#6

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Posts: 3

Jul 9 09 5:22 PM

Thanks for the clarification on the HR Bills.

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jpd

Concurrent Receipt

#7

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Posts: 52

Jul 11 09 3:34 PM

H.R. 2990 passed the House by a vote of 404-0 and was added to the FY 2010 National Defense Authorization Act (NDAA) that was passed two weeks ago. The Senate Armed Services Committee (SASC) sent its mark-up to the full Senate which will consider the NDAA this week. The approved SASC version of the NDAA did NOT include concurrent receipt. The SASC overview states:

"The administration's budget for national defense also included discretionary programs outside the jurisdiction of the Senate Committee on Armed Services, discretionary programs that do not require further authorizations, mandatory programs that are part of current law, and a new mandatory proposal dealing with concurrent receipt. When these programs are added to the administration's budget the total request for national defense equals $693.1 billion as re-estimated by the Congressional Budget Office. The bill is consistent with this level with the exception that it does not include the concurrent receipt proposal as the proposed offsets were not within the jurisdiction of the committee."

So the Senate is faced with the same situation as the House where concurrent receipt was not funded coming out of the House Armed Services Committee but was added in (at least for one year for 90-100% disabled) by the full house. The questions are:

1. Will the Senate add concurrent receipt as an admentment?
2. If so, will the Senate fund it for more than 1 year?
3. If the Senate and House version are different, will concurrent receipt survive the conference reconciliation process.

I think some form of concurrent receipt for chapter 61 folks (that does not include me) will pass this year.

John

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sn00pydwg

I found this on the FRA website. I am not a member of it but they seem to have a little info.

#8

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Posts: 221

Jul 11 09 5:26 PM

This is the standard letter they are trying to get people to send out to their senators.

Please support the following issues when the FY2010 Defense Authorization Bill (S. 1390) comes to the Senate floor for action.

TRICARE: Vote for Senator Frank Lautenberg's (NJ) TRICARE amendment to assert that military retirees earned health benefits with their military service.

Concurrent Receipt: Vote for Senator Harry Reid's (NV) concurrent receipt amendment to end compensation penalties for thousands of disabled uniformed services retirees.

SBP/DIC: Vote for Senator Bill Nelson's (Fla.) amendment that would end compensation penalties for survivors of military personnel who died of service-caused conditions.

Reserve Retirement Age: Vote for Senator Saxby Chambliss's (Ga.) amendment to make retroactive to 9/11/01 the provision that reduces the reserve retirement age by 3 months for every 90 days activated.

Please support ALL of these amendments to ensure they are included in the Senate Defense bill.

As you can see, they seem to know that Harry Reid is submitting an amendment for concurrent receipt, but I haven't been able to locate it yet. This is from the following link;

http://www.congress.org/congressorg/webreturn/?url=/fra/issues/alert/?alertid=13718226

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jpd

Sen. Reid's Concurrent Receipt Ammendment

#9

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Posts: 52

Jul 12 09 6:51 AM

I beleive S.546, The Retired Pay Restoration Act of 2009, will be offered as Sen. Reid's ammendment to the National Defense Authorization Act. You can find the text of the bill at http://thomas.loc.gov/cgi-bin/bdquery/z?d111:s546:

John

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brianwl

#10

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Posts: 11847

Jul 12 09 2:55 PM

Does not play well
With others.

Unless I'm reading S.546 wrong, it only addresses CRSC for Ch61's, which we already have. It does not address CRDP which is the issue at hand.

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jpd

S. 546

#11

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Posts: 52

Jul 12 09 4:01 PM

I think you are misreading the bill. If you go to Title 10, section 1414 of the US Code and make the changes stated in the bill you end up with:

Section 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 QUALIFIED RETIREE 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.

It is 38 USC 5304 - Sec. 5304. Prohibition against duplication of benefits the prohibits concurrent receipt.
38 USC 5305 - Sec. 5305 covers waiver of retired pay. Since S.546 eliminates the provisions of 38 USC 5304 sections 5304 and 5305,
the offset between disability compensation and military retired pay is eliminated, except for the case where the military retired pay
(2.5% X years of service X base pay), exceeds the disability reitement pay (disability rating % X base pay).
I am not, thank God, a lawyer but this makes sense to me reading the US code. S.546, in my estimation, provides full concurrent receipt.
I doubt it will be adopted in its curent form due to so called fiscal constraints but I expect at least a partial measure
based on HR 2990 or perhaps a bit more generous--they do try to out do each other in supporting the troops (I apologize in
advance for the dripping sarcasm). I think the real issue will be what happens in the conference committee when the bills are
reconciled.

John

LTC, USA (ret)

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brianwl

#12

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Posts: 11847

Jul 12 09 4:32 PM

Does not play well
With others.

John,

That section refers to the 20 year folks. Chapter 61's are not mentioned until lower in the bill under Combat Related stuff. The part you are talking about eliminates the 50% threshold on CRDP.

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donkef

#13

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Posts: 102

Jul 12 09 5:36 PM

My reading of Senator Reid's amendment is that it includes both CRSC and CRDP for Ch 61's with less than 20 years' service. Here is why. Section three reads as follows:

"SEC. 3. COORDINATION OF SERVICE ELIGIBILITY FOR COMBAT-RELATED SPECIAL COMPENSATION AND CONCURRENT RECEIPT."

I understand this to say CRSC AND CR (DP). Remember, "Concurrent Receipt" is not the formal term that includes CRSC. The CR in CRSC is "Combat Related" so and the CR in CRDP refers to "Concurrent Receipt", hence, both groups are included in S-546.

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jpd

Chapter 61

#14

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Posts: 52

Jul 12 09 5:48 PM

Brian,

I read the proposed legislation differently.

S. 546 eliminates the prohibition on receiving both military retired pay and disability compensation.
Chapter 61 is drawn from 10 USC 1201 which I have pasted below and highlighted a couple of sections.

U.S. Code as of: 01/19/04

Section 1201. Regulars and members on active duty for more than 30 days: retirement

      (a) Retirement. - Upon a determination by the Secretary concerned
    that a member described in subsection (c) is unfit to perform the
    duties of the member's office, grade, rank, or rating because of
    physical disability incurred while entitled to basic pay or while
    absent as described in subsection (c)(3), the Secretary may retire
    the member, with retired pay computed under section 1401 of this
    title, if the Secretary also makes the determinations with respect
    to the member and that disability specified in subsection (b).
      (b) Required Determinations of Disability. - Determinations
    referred to in subsection (a) are determinations by the Secretary
    that - 
        (1) based upon accepted medical principles, the disability is
      of a permanent nature and stable;
        (2) the disability is not the result of the member's
      intentional misconduct or willful neglect, and was not incurred
      during a period of unauthorized absence; and
        (3) either - 
          (A) the member has at least 20 years of service computed
        under section 1208 of this title; or
          (B) the disability is at least 30 percent under the standard
        schedule of rating disabilities in use by the Department of
        Veterans Affairs at the time of the determination; and either -
        
            (i) the member has at least eight years of service computed
          under section 1208 of this title;
            (ii) the disability is the proximate result of performing
          active duty;
            (iii) the disability was incurred in line of duty in time
          of war or national emergency; or
            (iv) the disability was incurred in line of duty after
          September 14, 1978.

So I see S. 546 eliminating toe provision that prhohibited receipt of both retired pay and disability compensation. Since Chapter 61 retirees are receiving retired pay, under S.546 if adopted, they should also receive disability compensation without an offset.

Section C of S.546, I beleive, simply puts the same language into the Combat Related Special Compensation sections and expands the applicability to lower rated disabilities.

I see the major objective is to have 38 USC 5304 waived for military retirement and disability compensation. I think S.546 does just that.

I could be wrong--it certainly would not be the first time. We'll have to see what, if any, provision the Senate adopts and what comes out of the conference committee. At least it made it that for this time.

John

LTC, USA (ret)

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brianwl

#15

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Posts: 11847

Jul 12 09 6:00 PM

Does not play well
With others.

Lets hope we get it.

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maparker

#16

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Posts: 2141

Jul 13 09 6:09 AM

This is the part of 10 USC 1414 that must be removed for chap 61's under twenty to get CRDP. I think S. 546 was last year's admendment by Senator Reid.

Mike

(b) Special Rules for Chapter 61 Disability Retirees.-

(1) Career retirees.- The retired pay of a member retired under chapter 61 of this title with 20 years or more of service otherwise creditable under section 1405 of this title, or at least 20 years of service computed under section 12732 of this title, at the time of the member's retirement is subject to reduction under sections 5304 and 5305 of title 38, but only to the extent that the amount of the member's retired pay under chapter 61 of this title exceeds 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.

(2) Disability retirees with less than 20 years of service.- Subsection (a) does not apply to a member retired under chapter 61 of this title with less than 20 years of service otherwise creditable under section 1405 of this title, or with less than 20 years of service computed under section 12732 of this title, at the time of the member's retirement.

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donkef

#17

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Posts: 102

Jul 13 09 7:47 AM

S 546 was introduced and read (twice) on the Senate Floor on March 9, 2009 and referred to the SASC the same day.

The text indicates that the effective date would be 1 January 2009... likely a typo and simply a "rewording" of the similar legislation introduced by Reid in previous years. The probable effective date when amended/ introduced on the floor (perhaps today) to amend what came out of SASC in early July will likely be 1 January 2010.

Ditto what Brian says, "Let's hope we get it."

(Also, per earlier suggestions, let's hope that the Senate offices were flooded with emails, calls, and letters to our Senators encouraging support during the past week. As VP Biden said this weekend regarding the Sotomayor nomination, such vocal activities to Senators on an issue before a vote really DOES make a difference. He should know from his 30 years in the Senate...)

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jpd

Sen. Reid's Amendment to the fy 2010 NADA

#18

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Posts: 52

Jul 14 09 5:50 AM

Sen. Reid submitted on 13 July 2009 the following amendment to be considered as part of the FY 2010 NDAA. Please e-mail or call your senators asking them to support SA 1478.

SA 1478. Mr. REID submitted an amendment intended to be proposed by him to the bill S. 1390, to authorize appropriations for fiscal year 2010 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle D of title VI, add the following:

SEC. 652. PHASED EXPANSION OF ELIGIBILITY FOR CONCURRENT RECEIPT OF RETIRED PAY AND VETERANS' DISABILITY COMPENSATION.

(a) Phased Expansion.--Subsection (a) of section 1414 of title 10, United States Code, is amended to read as follows:

``(a) Payment of Both Retired Pay and Compensation.--

``(1) PAYMENT OF BOTH REQUIRED.--

``(A) 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 (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.

``(B) GENERAL APPLICABILITY OF PHASE-IN OF FULL CONCURRENT RECEIPT.--During the period beginning on January 1, 2004, and ending on December 31, 2013, payment of retired pay to a qualified retiree under this subsection is subject to subsection (c).

``(C) EXCEPTION FROM PHASE-IN FOR 100 PERCENT DISABLED RETIREES.--Payment of retired pay under this subsection 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:

``(i) A qualified retiree receiving veterans' disability compensation for a disability rated as 100 percent.

``(ii) A qualified retiree receiving veterans' disability compensation at the rate payable for a 100 percent disability by reason of a determination of individual unemployability.

``(D) EXCEPTION FROM PHASE-IN FOR CERTAIN CHAPTER 61 RETIREES.--Subject to subsection (b), on or after January 1, 2010, payment of retired pay under this subsection is not subject to subsection (c) in the case of a qualified retiree described in subparagraph (B) or (C) of paragraph (2).

``(2) QUALIFYING SERVICE-CONNECTED DISABILITY.--In this section, the term `qualifying service-connected disability' means the following:

``(A) In the case of a member or former member receiving retired pay under any provision of law other than chapter 61 of this title, or under chapter 61 with 20 years or more of service otherwise creditable under section 1405 or computed under section 12732 of this title, 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.

``(B) In the case of a member or former member receiving retired pay under chapter 61 of this title with less than 20 years of service otherwise creditable under section 1405 or computed under section 12732 of this title, a service-connected disability or combination of service-connected disabilities that is rated by the Secretary of Veterans Affairs at the disabling level specified in one of the following clauses (and is effective on or after the date specified in the applicable clause):

``(i) January 1, 2010, rated 100 percent, or a rate payable at 100 percent by reason of individual unemployability or rated 90 percent.

``(ii) January 1, 2011, rated 80 percent or 70 percent.

``(iii) January 1, 2012, rated 60 percent or 50 percent.

``(C) In the case of a member or former member receiving retired pay under chapter 61 regardless of years of service, a service-connected disability or combination of service-connected disabilities that is rated by the Secretary of Veterans Affairs at the disabling level specified in one of the following clauses (and is effective on or after the date specified in the applicable clause):

``(i) January 1, 2013, rated 40 percent or 30 percent.

``(ii) January 1, 2014, any rating.''.

(b) Conforming Special Rule Modification.--Subsection (b) of such section is amended to read as follows:

``(b) Special Rules for Chapter 61 Disability Retirees.--

``(1) GENERAL RULE.--The retired pay of a member retired under chapter 61 of this title is subject to reduction under sections 5304 and 5305 of title 38, but only to the extent that the amount of the member's retired pay under chapter 61 of this title exceeds 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.

``(2) SPECIAL RULE FOR RETIREES WITH LESS THAN 20 YEARS OF SERVICE.--The retired pay of a member retired under chapter 61 of this title with less than 20 years of creditable service otherwise creditable under section 1405 or computed under section 12732 of this title, is subject to reduction under sections 5304 and 5305 of title 38, but only to the extent that the amount of the member's retired pay under chapter 61 of this title exceeds the amount equal to 2 1/2 percent of the member's years of creditable service multiplied by the member's retired pay base under section 1406(b)(1) or 1407 of this title, whichever is applicable to the member.''.

(c) Conforming Amendment.--Subsection (c) of such section is amended by striking ``the second sentence of''.

(d) Clerical Amendments.--

(1) SECTION HEADING.--The heading of such section is amended to read as follows:``§1414. Concurrent receipt of retired pay and veterans' disability compensation''.

(2) TABLE OF SECTIONS.--The table of sections at the beginning of chapter 71 of such title is amended by striking the item related to section 1414 and inserting the following new item:

``1414. Concurrent receipt of retired pay and veterans' disability compensation.''.

(e) Effective Date.--The amendments made by this section shall take effect on January 1, 2010.

LTC, USA (ret)

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sn00pydwg

How do you read this amendment as it is proposed?

#19

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Posts: 221

Jul 14 09 8:17 AM

I'ts looks pretty clear to me that Chapter 61's were included in this amendment. Does anyone see anything else in the writing to include standard retirees with over 20 years and rated at less than 50 percent?

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jpd

Sen Reid's Amendment

#20

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Posts: 52

Jul 14 09 10:05 AM

As I read it, the 50% threshhold would remain for normal retirees. So in my case, 20 year retirement with a 10% rating, the amendment has no effect.

``(2) QUALIFYING SERVICE-CONNECTED DISABILITY.--In this section, the term `qualifying service-connected disability' means the following:

``(A) In the case of a member or former member receiving retired pay under any provision of law other than chapter 61 of this title, or under chapter 61 with 20 years or more of service otherwise creditable under section 1405 or computed under section 12732 of this title, 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.

John

LTC, USA (ret)

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Status of Concurrent Receipt Legislation - Chapter 61's

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