Bill > HR333

This bill aims to eliminate what is commonly known as the "disabled veterans tax" by modifying existing laws to allow military retirees with service-connected disabilities to receive both their full military retirement pay and veterans' disability compensation, regardless of disability rating or years of service. Specifically, the bill removes previous restrictions that prevented veterans with service-connected disabilities rated less than 50% from receiving full retirement pay alongside disability compensation. It also extends eligibility to disability retirees who have served fewer than 20 years, allowing them to receive a more comprehensive compensation package. Under the new provisions, disabled veterans retired under Chapter 61 (which covers medical retirement) with less than 20 years of service will have their retired pay reduced only by a calculated amount based on their years of creditable service. The bill makes several technical amendments to existing legal code to implement these changes and will take effect on the first day of the month following its enactment, applying to payments from that point forward. This legislation represents a significant improvement in benefits for disabled veterans, addressing a long-standing inequity in military compensation rules.

Health and Social Services, Military Affairs and Security

https://www.congress.gov/bill/119th-congress/house-bill/333/all-info