It is further anticipated that Concurrent Receipt eligibility will remain an issue for the second session of the 110 th Congress. In recent years, the long-standing efforts by military retirees and their associations to secure more benefits for their members have been buttressed by (1) the outpouring of nationwide nostalgia and support for the past heroism and current old-age needs of the "greatest generation" of World War II-era veterans, whether retirees or not; (2) concern over problems the military services were having in recruiting and retaining sufficient numbers of qualified personnel, which have been exacerbated by ongoing military operations in Iraq and Afghanistan, and the extent to which actual or perceived inadequacies in retirement benefits may have been contributing to these problems; (3) the impression by many current or former military personnel that the Clinton Administration was not favorably disposed toward the military as an institution, leading to efforts to portray increased retirement benefits as a palliative, and (4) in a reversal of the attitudes toward the Clinton Administration, efforts to obtain more benefits from the Bush Administration because it is perceived as being pro-military. 4403, P.L. Military Retirement Cost Trends

Because military retirement is an entitlement, rather than a discretionary program, its costs to the total federal budget (payments to current retirees and survivors) always rise modestly each year, due to a predictable slow rise in the number of retirees and survivors. Until 2004, the law required that military retired pay be reduced by the amount of any VA disability compensation received. The FY2003 National Defense Authorization Act (NDAA), enacted in 2002, created a benefit known as "combat-related special compensation," or CRSC. 107-314 ; 116 Stat. These retirees are generally referred to as "Chapter 61" retirees, a reference to Chapter 61, Title 10 which governs their retirement. The original concurrent receipt legislation excluded those who retired with less than 20 years of service. However, the FY2008 NDAA ( P.L. 110-181 ) expanded Combat Related Special Compensation (CRSC) to include Chapter 61 retirees effective January 1, 2008. Excluded from eligibility are those former servicemembers who were medically retired due to service-connected disabilities. Concurrent Receipt for Retirees with 50% or Greater Disability (also know as "Concurrent Receipt Disability Payments")

The FY2004 NDAA (Section 641) authorized, for the first time, actual concurrent receipt for retirees with at least a 50% disability, regardless of the cause of disability. However, the amount of concurrent receipt will be phased in over a 10-year period, from 2004-2013, except for 100% disabled retirees, who will be entitled to immediate concurrent receipt effective January 1, 2005 (this provision was added in the FY2005 NDAA; see below). 108-136 , November 24, 2003; 117 Stat. It uses both dollar amounts and percentage amounts and varies in accordance with the degree of disability and by calendar year ( not fiscal year) as follows:

			2004

In calendar year 2004, military retirees entitled to VA disability compensation were entitled to receive, in addition to that part of their military retired pay which is greater than the total VA compensation to which they are entitled, the following additional amounts of retired pay:

			2005

In calendar year 2005, with the exception of 100% disabled retirees, military retirees entitled to VA disability compensation were entitled to any such amounts received in 2004, as noted above, and an additional 10% of the offset that remained in 2004. Full concurrent receipt for 100% disabled retirees will continue. The FY2006 NDAA ( P.L. This provision extended eligibility to all who have been rated as 100% Unemployable (regardless of their disability rating) by the VA and made their eligibility for Concurrent Receipt retroactive to December 31, 2004.
The military retirement system includes benefits for retirement after an active or reserve military career, disability retirement, and survivor benefits for eligible survivors of deceased retirees.
The change to the system that has generated the most recent legislative activity involves whether some or all military retirees should be allowed to receive both military retired pay and any VA disability compensation to which they are otherwise entitled; this is referred to as "concurrent receipt." Until 2004, the law provided that military retired pay had to be reduced by the amount of VA disability compensation. Some maintained this was inequitable and unfair; it was defended on grounds of cost and of the need to avoid setting a precedent for concurrent receipt of numerous other federal benefits.
Starting in 1999 (FY2000), provisions in each year's annual National Defense Authorization Act (NDAA) authorized payments to comparatively small groups (in the tens of thousands) of military retirees in lieu of concurrent receipt. The program enacted in 2002, in the FY2003 NDAA (P.L. 107-314), is known as "Combat Related Special Compensation" (CRSC), although it applies also to those people injured in military operations and training generally, as distinct from those whose injuries are unrelated to military service but incurred while in service. CRSC provides for payments that are the financial equivalent of concurrent receipt.
The FY2004 NDAA (P.L. 108-136, November 24, 2003), for the first time provided the concurrent receipt or its practical and financial equivalence to large numbers of military retirees. The law, effective January 1, 2004, (1) authorized the payment of CRSC to all otherwise eligible military retirees, regardless of their percentage of disability; (2) authorized a 10-year phase-in of concurrent receipt for all military retirees whose disability is 50% or greater, regardless of the origins of their disability; and (3) included (hitherto almost completely excluded) reserve retirees. The FY2005 NDAA (P.L. 108-375, October 28, 2004; 118 Stat. 1811) expanded concurrent receipt eligibility by authorizing the immediate (rather than a 10-year phase-in) concurrent receipt for military retirees with a 100% service-connected disability.
In its first session, the 110th Congress extended the Combat Related Special Compensation program to include those who were medically retired prior to completing 20 years of service rather than a normal longevity retirement. These individuals are generally referred to as "Chapter 61" retirees. In addition those with a 100% VA Unemployability rating were granted full concurrent receipt, retroactive to December 31, 2004.
It is anticipated that the second session will continue work on these issues. This report will be updated as needed.