House Bill Proposes Dual Benefits for Combat-Injured Veterans

A new House bill aims to improve compensation for combat-injured veterans by allowing them to receive both military retirement pay and disability benefits from the Department of Veterans Affairs (VA) simultaneously. The Combat Veterans Retirement Restoration Act, introduced by Indiana Republican Representative Victoria Spartz, targets a long-standing issue for veterans who were medically retired due to combat injuries before completing 20 years of service.

Addressing an Inequity

The bill seeks to assist veterans whose retirement pay is currently impacted because they also receive VA disability compensation. Spartz emphasized the importance of this change, stating, “Combat veterans forced to medically retire because of their injuries should not lose retirement benefits simply because they could not reach 20 years of service.” More than 50,000 veterans could potentially benefit from this legislation. However, it has yet to secure any co-sponsors and remains in the preliminary stage of the legislative process.

The Importance of Dual Compensation

Military retirement pay and VA disability compensation serve different functions. Retirement pay is earned through military service, whereas VA disability benefits are intended to compensate for service-related injuries or illnesses. Current laws require many medically retired combat veterans with fewer than 20 years of service to forfeit part of their benefits. This effectively penalizes veterans whose careers were curtailed by combat injuries, potentially costing them thousands of dollars annually.

Combating the Issue

According to Spartz’s office, the Combat Veterans Retirement Restoration Act would ensure combat-disabled veterans medically retired before completing 20 years of service can receive both military retired pay and VA disability compensation. Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said, “Allowing these veterans to receive both benefits could substantially increase retirement income for combat-disabled veterans and their families.” This would treat military retirement as service compensation and VA disability as injury compensation without offsetting one against the other.

The bill, H.R. 10463, was introduced on September 16 and referred to committee. However, no co-sponsors have joined it yet. Kevin Thompson, CEO of 9i Capital Group, noted that much like Social Security for older Americans, the goal is to provide additional financial security for those who served and were disabled.

Potential Impact

This legislation would primarily benefit combat-injured service members who were medically retired due to disabilities, receive VA disability compensation, and did not reach the 20-year service requirement needed to concurrently receive both benefits. Michael Ryan, founder of MichaelRyanMoney.com, highlighted the unfairness of the current situation where injured veterans can lose both career opportunities and part of their retirement income.

Ryan pointed out that if the bill passes, the problem could be resolved, but funding remains an obstacle. The proposed change could cost $11 billion. Despite the financial challenge, supporters believe veterans deserve the benefits they earned.

Other Veterans Benefits Under Review

The Combat Veterans Retirement Restoration Act is not the only bill focused on veterans’ benefits. Lawmakers continue to discuss the Major Richard Star Act, which also supports dual compensation. Additionally, there are ongoing discussions about revising VA disability ratings for conditions like tinnitus and sleep apnea. Meanwhile, the Department of Veterans Affairs implements the PACT Act, expanding healthcare and benefits for veterans exposed to hazardous substances.

Future Steps

For now, the bill faces uncertain prospects. It was introduced recently and remains in committee without co-sponsors. Nevertheless, many view the proposal as a sensible approach to safeguard benefits for those who served their country. As Thompson argued, “The money is there. The question is whether the will is there to get this done.”