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[DOCID: f:s170is.txt]






107th CONGRESS
  1st Session
                                 S. 170

To amend title 10, United States Code, to permit retired members of the 
 Armed Forces who have a service-connected disability to receive both 
 military retired pay by reason of their years of military service and 
  disability compensation from the Department of Veterans Affairs for 
                           their disability.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 24, 2001

 Mr. Reid (for himself, Mr. Hutchinson, Ms. Landrieu, Mr. Dorgan, Mr. 
Conrad, Mr. Johnson, Mr. McCain, Mr. Bingaman, Mr. Inouye, Mr. Shelby, 
 Ms. Snowe, and Mr. Daschle) introduced the following bill; which was 
       read twice and referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
To amend title 10, United States Code, to permit retired members of the 
 Armed Forces who have a service-connected disability to receive both 
 military retired pay by reason of their years of military service and 
  disability compensation from the Department of Veterans Affairs for 
                           their disability.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Retired Pay Restoration Act of 
2001''.

SEC. 2. PAYMENT OF RETIRED PAY AND COMPENSATION TO DISABLED MILITARY 
              RETIREES.

    (a) Restoration of Retired Pay Benefits.--Chapter 71 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 1414. Members eligible for retired pay who have service-
              connected disabilities: payment of retired pay and 
              veterans' disability compensation
    ``(a) Payment of Both Retired Pay and Compensation.--Except as 
provided in subsection (b), a member or former member of the uniformed 
services who is entitled to retired pay (other than as specified in 
subsection (c)) and who is also entitled to veterans' disability 
compensation is entitled to be paid both without regard to sections 
5304 and 5305 of title 38.
    ``(b) Special Rule for Chapter 61 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 
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.
    ``(c) Exception.--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 at the time of 
the member's retirement.
    ``(d) Definitions.--In this section:
            ``(1) The term `retired pay' includes retainer pay, 
        emergency officers' retirement pay, and naval pension.
            ``(2) The term `veterans' disability compensation' has the 
        meaning given the term `compensation' in section 101(13) of 
        title 38.''.
    (b) Repeal of Special Compensation Program.--Section 1413 of such 
title is repealed.
    (c) Clerical Amendments.--The table of sections at the beginning of 
such chapter is amended--
            (1) by striking the item relating to section 1413; and
            (2) by adding at the end the following new item:

``1414. Members eligible for retired pay who have service-connected 
                            disabilities: payment of retired pay and 
                            veterans' disability compensation.''.

SEC. 3. EFFECTIVE DATE; PROHIBITION ON RETROACTIVE BENEFITS.

    (a) In General.--The amendments made by this Act shall take effect 
on--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; or
            (2) the first day of the fiscal year that begins in the 
        calendar year in which this Act is enacted, if later than the 
        date specified in paragraph (1).
    (b) Retroactive Benefits.--No benefits may be paid to any person by 
reason of section 1414 of title 10, United States Code, as added by the 
amendment made by section 2(a), for any period before the effective 
date specified in subsection (a).
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