MILITARY UPDATE
Oklahoma lawmaker says deal near on concurrent receipt

By Tom Philpott

With fewer strings attached this time to avoid the ire of veterans groups, House leaders are nearing a new deal with the Bush administration to end for many military retirees the offset in retired pay that occurs when they draw disability pay from the Department of Veterans Affairs.

The deal would cost an estimated $30 billion over 10 years, says U.S. Rep. Tom Cole (R-Okla.), a freshman lawmaker who serves on the House Armed Services Committee.

At issue is the century-old ban on concurrent receipt of both military retirement and VA disability compensation. Retirees forfeit a dollar of retired pay for each dollar they draw in VA disability compensation.

Here are highlights of how that law would be changed under the tentative deal that Cole was briefed on by House leaders earlier this month:

• Combat-related concurrent receipt — Effective Jan. 1, 2004, military retirees with 20 or more years of service, and disabilities tied to combat or combat-related training, would see offsets in retired pay from those disabilities restored as they continue to draw VA compensation.

• Phase-in period for seriously disabled — Beginning Jan. 1, retirees with disabilities of any kind, rated 50 percent or higher, would begin to see lost retired pay restored in phases, over a set period, perhaps 10 years. Cole cautioned that the length of the phase-in still was being negotiated.

• Concurrent receipt for reservists — Unlike under the Combat-Related Special Compensation program, which took effect June 1, Reserve and National Guard retirees would be eligible for concurrent receipt, too, as described above. There would be no hurdle of 7200 retirement points as under CRSC.

• CRSC, special disability compensation — Individuals eligible for CRSC likely would get the new concurrent receipt deal or CRSC, whichever is greater. But the special disability compensation program, which pays up to $325 a month to retirees given VA disability ratings of 60 percent or higher within four years of retirement, likely would end because the new deal would provide better benefits.

• Presidential commission — Next year, a special commission would be established to study VA and military disability programs and to recommend reforms, which could include tightening disability rules for future generations. Retirees would be grandfathered from any changes to criteria and benefits, Cole said. Veterans groups likely would be represented on the commission.

Cole, whose district includes Fort Sill and thousands of retirees, said, "I'm going to be surprised if we don't get a major step forward" on concurrent receipt. He credited U.S. Rep. Duncan Hunter (R-Calif.), chairman of the House Armed Services Committee, and Rep. Roy Blunt (R-Mo.), majority whip, for a "phenomenal job" negotiating with the Senate and White House.

Cole cautioned that there are hurdles, including the appropriations committees, which control the money; defense officials, who have strongly opposed concurrent receipt; and Office of Management and Budget officials, who are studying the final details.

But he repeated his belief that Senate Republican leaders had agreed to the deal and that final negotiations were in the works with the White House. Other congressional sources said Cole could be wrong about Senate leaders being on board for the plan.

Questions, comments and suggestions are welcomed. Write to Military Update, P.O. Box 231111, Centreville, VA 20120-1111, or send e-mail to: milupdate@aol.com. Or visit Tom Philpott's Web site.