May 4, 1999

 Dear Colleague:

I invite you to join me in co-sponsoring the "Veterans’ Compensation Equity Act of 1999". This legislation will provide more equitable treatment to veterans who receive service-connected disability compensation and who are also eligible to receive retirement pay based upon their military service.

Under current law, the amount of military retirement pay received by a military retiree is reduced on a dollar-for-dollar basis by the amount of service-connected disability compensation the military retiree receives. This reduction in military retirement pay when the military retiree is in receipt of service-connected disability compensa-tion is intended to prevent dual compensation. The notion of dual compensation is erroneous. Service-connected disability benefits are paid to compensate a veteran for an injury or illness incurred or aggravated during military service. Retirement benefits are paid to provide an income to military retirees who have spent at least 20 years of their lives working for and serving our country as members of the Armed Forces. These two programs are completely different and payments made by these programs should not be considered duplicative.

This treatment of military retirees is simply inequitable. A veteran receiving service-connected disability compensation could become eligible for civil service retirement pay based on his or her subsequent work as a civilian employee of the Federal Government. This individual, unlike the military retiree, can receive the full amount of both the retirement benefit, which has been earned, and the service-connected disability compensation for which he or she may be eligible.

The "Veterans’ Compensation Equity Act of 1999" will reduce and then eliminate the reduction in military retirement benefits for veterans who are entitled to both military retirement pay and service-connected compensation benefits. This bill will limit the reduction in military retirement pay to 50% when the military retiree attains age 65. The reduction in military retirement pay would be completely eliminated when the retiree reaches age 70.

Retired military personnel who were fortunate enough to have emerged from military service unscathed receive military retirement pay, but do not qualify for service-connected disability benefits. In many cases, these retirees are able to earn additional income through non-military employment and thereby accrue Social Security or other retirement income benefits. These retirement benefits are not reduced by receipt of service-connected disability benefits.

Military retirees who were not so fortunate, are required to forfeit all or a portion of their military retirement pay in order to receive service-connected compensation benefits due to illnesses or injuries which were incurred or aggravated during their military careers. These veterans, as a result of their service-connected medical conditions, face diminished employment possibilities and therefore a diminished ability to earn additional income through non-military employment. They lose the opportunity to accrue Social Security or other retirement income benefits.

In general, Social Security disability benefits received by retirees are offset by monies received under state Worker’s Compensation laws. However, the Social Security statute provides that this offset ends when the worker attains age 65. Furthermore, while recipients of Social Security benefits who earn income have their Social Security benefits reduced as a result of their earnings, this offset is reduced at age 65 and eliminated entirely at age 70.

While all veterans who are subject to the concurrent receipt offset are unfairly penalized, our bill would begin to rectify the injustice which falls most heavily on our older veterans. Our bill will promote fairness and equity between military retirees and Social Security retirees by reducing the amount of this offset by 50% at age 65 and eliminating it entirely at age 70.

Military retirees, who have given so much to the service of our country and suffered disease or disabilities as a direct result of their military service, do not deserve to be impoverished in their older years by the concurrent receipt penalty.

I urge my colleagues to cosponsor this effort to promote fairness for America’s older military retirees. If you would like to join me as an original co-sponsor of this bill, please call Beth Kilker or Mary Ellen Mc Carthy of the House Committee on Veterans Affairs Democratic Staff at 225-9756 by the close of business on Friday, May 7, 1999.

LANE EVANS
Ranking Democratic Member
Committee on Veterans Affairs