Concurrent Receipt Deal Finally Made
Kimberlee D. Vockel
Director of Legislative Affairs

After almost two decades of hard work and repeated disappointments, NCOA stood shoulder to shoulder with House Republicans at a Capitol Hill press conference on October 16, 2003 to announce that the most substantial concurrent receipt deal in the issue’s history has finally been reached. With the pressure on, House and Senate Republicans worked with the White House to include a $22 billion provision concerning concurrent receipt in the Fiscal Year 2004 National Defense Authorization bill. The politics leading up to this compromise have been ugly and highly partisan for the first time since H.R. 303 was first introduced, but the outcome is one that both sides of the aisle can undoubtedly agree will substantially benefit the brave men and women of the Armed Forces who have suffered injuries as a result of their selfless service to their country.

Effective January 1, 2004, a 10-year phase-in of full concurrent receipt for all disabled retirees (20 or more years of service) with a VA disability rating of 50 percent or more will begin. Disabled veterans from 50 to 100 percent will begin receiving substantial amounts of the offset as soon as the program begins, with a gradual decline in the offset between 2005 and 2013 (see chart below).

The offset will be reduced each year between 2005 and 2013 by the difference between the amount of retired pay received the previous year and full concurrent receipt according to the following plan:

In 2014, all disabled retirees with 50 percent or higher ratings will receive their entire retired pay and VA disability compensation. Those disabled retirees eligible for payments under the Combat Related Special Compensation (CRSC) program and concurrent receipt would be given the option to choose the program that provides the greatest benefits.

This deal also expands the current CRSC program, which only allows those with 60 percent or higher VA disability ratings to apply, to all disabled retirees including reservists who were previously excluded due to a DoD interpretation. When the DoD implemented CRSC, reservists were required to have 7200 points to be eligible, which excluded many reservists from applying for benefits under the new program. This provision fixes that by extending coverage to reservists with 20 or more years of service.

In an effort to not close the door on the remaining disabled retirees with 10 to 40 percent VA disability ratings that are not determined to be combat-related, the provision establishes a bipartisan commission of 13 members to study disability and death benefits by the end of 15 months after being empanelled. The "Blue Ribbon Commission" will evaluate the appropriateness of the type of benefits, the level of benefits, and the standards under which they are awarded. Congress also expects the commission to report on whether or not the remaining percentages should be covered under concurrent receipt. The commission will be composed of two members chosen by the Speaker of the House, two by the minority leader of the House, two by the majority leader of the Senate, two by the minority leader of the Senate, and five chosen by the President. Of the members chosen by the House and Senate leadership, at least one of the two appointments in each case shall be a veteran who received the Silver Star or a higher combat decoration for gallantry. Of the President’s appointments, three of the five must be veterans meeting this criterion.

NCOA has worked with Republicans and Democrats alike over the years to ensure the best possible outcome on concurrent receipt. The Association would especially like to extend our deepest gratitude to the longtime concurrent receipt champion Congressman Michael Bilirakis (FL-9th) for his tireless dedication to this issue even when its future did not seem so bright. Without his tenacity, NCOA and its fellow military and veteran association colleagues would not have seen this level of progress.

The conference report on the defense bill must still be completed and passed in both chambers before being sent to the President for his signature. Once this is done, payments should begin as scheduled on January 1, 2004. House Armed Services Committee Chairman Duncan Hunter said he is confident that conference should be completed on the defense bill and sent to the President by November.

NCOA President Gene Overstreet, 12th Sergeant Major of the Marine Corps (Ret), said "This is a pivotal moment in NCOA’s efforts to eliminate the unfair offset of retirement pay by VA disability compensation. Disabled retirees have been financially punished for too long, and Congress and the White House are only a few steps away from righting their wrongs. The Association looks forward to working with the Blue Ribbon Commission to ensure that no further injustices are forced upon the nation’s veterans."

Home / President's Letter / About NCOA / Legislative Action/ Today's Services /Employment Assistance /Chapters