§1414 — Title 10 Armed Forces | U.S. Code

Summary

Allows people who get military retired pay and who also get VA disability pay rated 50% or higher to receive both payments in the same month. For most qualifying retirees the law used a phased formula from January 1, 2004, through December 31, 2013, to figure how much retired pay they got while also receiving VA compensation. In 2004 the law added a fixed extra amount to retired pay above a baseline offset: $750 for total (100%), $500 for 90%, $350 for 80%, $250 for 70%, $125 for 60%, and $100 for 50%. In 2005–2013 the retiree’s monthly retired pay was increased each year by a growing share of the remaining difference between the baseline offset and the previous year’s amount (10% in 2005, 20% in 2006, 30% in 2007, 40% in 2008, 50% in 2009, 60% in 2010, 70% in 2011, 80% in 2012, and 90% in 2013). Payments under this formula cannot exceed the retiree’s otherwise applicable retired pay. For those rated 100% because of total rating or individual unemployability, the transitional formula applied only in 2004. Members retired under chapter 61 with less than 20 years of service are not covered. Chapter 61 retirees with 20 or more years may have their chapter 61 retired pay reduced to the amount they would have gotten under other law based on their service. A person cannot get both special compensation under section 1413a and retired pay under this rule at the same time, but may switch once a year during an open season under rules set by the service secretary (with Defense Department approval for military department rules). Short definitions: “qualifying service‑connected disability” = rated 50% or more; “current baseline offset” = the lesser of the retiree’s monthly retired pay and monthly VA compensation; “retired pay” includes retainer pay, emergency officers’ retirement pay, and naval pension.

Title 10, §1414

Armed Forces — Source: USLM XML via OLRC

(a)(1)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 (hereinafter in this section referred to as a “qualified retiree”) is entitled to be paid both for that month without regard to section 5304 and 5305 of title 38. During the period beginning on January 1, 2004, and ending on December 31, 2013, payment of retired pay to such a qualified retiree is subject to subsection (c), except that payment of retired pay 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:

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

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

(2)In this section, the term “qualifying service-connected disability” means 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)(1)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 section 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)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.

(c)During the period beginning on January 1, 2004, and ending on December 31, 2013, retired pay payable to a qualified retiree that pursuant to the second sentence of subsection (a)(1) is subject to this subsection shall be determined as follows:

(1)For a month during 2004, the amount of retired pay payable to a qualified retiree is the amount (if any) of retired pay in excess of the current baseline offset plus the following:

(A)For a month for which the retiree receives veterans’ disability compensation for a disability rated as total, $750.

(B)For a month for which the retiree receives veterans’ disability compensation for a disability rated as 90 percent, $500.

(C)For a month for which the retiree receives veterans’ disability compensation for a disability rated as 80 percent, $350.

(D)For a month for which the retiree receives veterans’ disability compensation for a disability rated as 70 percent, $250.

(E)For a month for which the retiree receives veterans’ disability compensation for a disability rated as 60 percent, $125.

(F)For a month for which the retiree receives veterans’ disability compensation for a disability rated as 50 percent, $100.

(2)For a month during 2005, the amount of retired pay payable to a qualified retiree is the sum of—

(A)the amount specified in paragraph (1) for that qualified retiree; and

(B)10 percent of the difference between (i) the current baseline offset, and (ii) the amount specified in paragraph (1) for that member’s disability.

(3)For a month during 2006, the amount of retired pay payable to a qualified retiree is the sum of—

(A)the amount determined under paragraph (2) for that qualified retiree; and

(B)20 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (2) for that qualified retiree.

(4)For a month during 2007, the amount of retired pay payable to a qualified retiree is the sum of—

(A)the amount determined under paragraph (3) for that qualified retiree; and

(B)30 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (3) for that qualified retiree.

(5)For a month during 2008, the amount of retired pay payable to a qualified retiree is the sum of—

(A)the amount determined under paragraph (4) for that qualified retiree; and

(B)40 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (4) for that qualified retiree.

(6)For a month during 2009, the amount of retired pay payable to a qualified retiree is the sum of—

(A)the amount determined under paragraph (5) for that qualified retiree; and

(B)50 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (5) for that qualified retiree.

(7)For a month during 2010, the amount of retired pay payable to a qualified retiree is the sum of—

(A)the amount determined under paragraph (6) for that qualified retiree; and

(B)60 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (6) for that qualified retiree.

(8)For a month during 2011, the amount of retired pay payable to a qualified retiree is the sum of—

(A)the amount determined under paragraph (7) for that qualified retiree; and

(B)70 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (7) for that qualified retiree.

(9)For a month during 2012, the amount of retired pay payable to a qualified retiree is the sum of—

(A)the amount determined under paragraph (8) for that qualified retiree; and

(B)80 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (8) for that qualified retiree.

(10)For a month during 2013, the amount of retired pay payable to a qualified retiree is the sum of—

(A)the amount determined under paragraph (9) for that qualified retiree; and

(B)90 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (9) for that qualified retiree.

(11)Retired pay determined under this subsection for a qualified retiree, if greater than the amount of retired pay otherwise applicable to that qualified retiree, shall be reduced to the amount of retired pay otherwise applicable to that qualified retiree.

(d)(1)A person who is a qualified retiree under this section and is also an eligible combat-related disabled uniformed services retiree under section 1413a of this title may receive special compensation in accordance with that section or retired pay in accordance with this section, but not both.

(2)The Secretary concerned shall provide for an annual period (referred to as an “open season”) during which a person described in paragraph (1) shall have the right to make an election to change from receipt of special compensation in accordance with section 1413a of this title to receipt of retired pay in accordance with this section, or the reverse, as the case may be. Any such election shall be made under regulations prescribed by the Secretary concerned. Such regulations shall provide for the form and manner for making such an election and shall provide for the date as of when such an election shall become effective. In the case of the Secretary of a military department, such regulations shall be subject to approval by the Secretary of Defense.

(e)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.

(3)The term “disability rated as total” means—

(A)a disability, or combination of disabilities, that is rated as total under the standard schedule of rating disabilities in use by the Department of Veterans Affairs; or

(B)a disability, or combination of disabilities, for which the scheduled rating is less than total but for which a rating of total is assigned by reason of inability of the disabled person concerned to secure or follow a substantially gainful occupation as a result of disabilities for which veterans’ disability compensation may be paid.

(4)(A)The term “current baseline offset” for any qualified retiree means the amount for any month that is the lesser of—

(i)the amount of the applicable monthly retired pay of the qualified retiree for that month; and

(ii)the amount of monthly veterans’ disability compensation to which the qualified retiree is entitled for that month.

(B)In subparagraph (A), the term “applicable retired pay” for a qualified retiree means the amount of monthly retired pay to which the qualified retiree is entitled, determined without regard to this section or section 5304 and 5305 of title 38, except that in the case of such a retiree who was retired under chapter 61 of this title, such amount is 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.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2015—Subsec. (b)(1). Pub. L. 114–92, § 631(d)(2), which was approved Nov. 25, 2015, provided that the amendment made by Pub. L. 113–76, § 10001(b)(2), which was effective Dec. 1, 2015, would not take effect. See 2014 Amendment note below. 2014—Subsec. (b)(1). Pub. L. 113–76, § 10001(b)(2), which directed insertion of “(but without the application of section 1401a(b)(4) of this title)” after “under any other provision of law”, did not take effect pursuant to Pub. L. 114–92, § 631(d)(2). See 2015 Amendment note above. 2008—Subsec. (a)(1). Pub. L. 110–181 substituted “except that payment of retired pay is subject to subsection (c) only during the period beginning on