A newly introduced House bill would increase compensation for tens of thousands of combat-injured veterans by allowing them to receive both military retirement pay and Department of Veterans Affairs disability benefits simultaneously. Indiana Republican Representative Victoria Spartz introduced the Combat Veterans Retirement Restoration Act, which seeks to address a longstanding inequity for veterans who were medically retired due to combat-related injuries before reaching 20 years of military service. This would benefit veterans whose retirement pay is currently reduced because they also receive VA disability compensation.
Military retirement pay and VA disability compensation serve different purposes. Retirement pay is earned through military service, while VA disability compensation is intended to compensate veterans for service-connected injuries or illnesses. Under the current law, many medically retired combat veterans with fewer than 20 years of service must forfeit part of one benefit when receiving the other.
This often effectively penalizes veterans whose careers were cut short by combat injuries. For these veterans, the financial impact can amount to thousands of dollars annually. According to Spartz's office, the bill would ensure that combat-disabled veterans who were forced to medically retire before completing 20 years of service can receive both their military retired pay and their VA disability compensation.
This law would primarily benefit combat-injured service members who: “A combat disabled service member can be medically forced out before reaching 20 years. Then discover that receiving VA disability comp can reduce the military retirement pay they otherwise earned,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, said of today’s veteran laws. And then lose part of the retirement income from that career too.” If the new bill were passed, that problem would go away, but it will likely come down to cost, Ryan said.
The Combat Veterans Retirement Restoration Act is not the only veterans benefits issue currently under discussion in Washington. Lawmakers have continued to push versions of the bipartisan Major Richard Star Act, which would similarly allow medically retired combat-injured veterans to receive both military retirement pay and VA disability compensation without any penalty. Separately, veterans groups and members of Congress have been debating potential changes to VA disability ratings for conditions like tinnitus and sleep apnea.
There’s been strong backlash as the proposed changes could reduce compensation for some veterans, but it could also modernize the disability rating system. The Department of Veterans Affairs is also continuing to implement the PACT Act, a sweeping law that expanded health care and benefits for veterans exposed to burn pits, Agent Orange and other toxic substances. H.R. 10463 was introduced only days ago and remains in committee, and no co-sponsors have come forward.
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