Hawaii's congressional delegation supports measures that would allow military retirees with a disability to receive their pension along with their compensation payments. Pay cut repeal urged
for military retireesBy Gregg K. Kakesako
gkakesako@starbulletin.comCurrently, the law requires retirees who receive tax-free disability pay from the Department of Veterans Affairs for injuries or illnesses tied to service to forfeit a matching amount of retirement pay.
The controversy was heightened by a recent threat by the Office of Management and Budget that President Bush should veto any measure that allows career military retirees, who served at least 20 years, to receive their retirement pay along with their VA disability payments.
The issue is headed for a conference committee later this month between the House and Senate, who are working on separate versions of the 2003 defense authorization bill.
Paul Cardus, spokesman for U.S. Sen. Daniel Akaka, said yesterday the Senate approved on June 19 an unfunded amendment of its version of the authorization bill that would immediately restore full military retirement pay to an estimated 500,000 career retirees who draw VA disability compensation.
The House's version of the defense spending bill would restore full retirement pay over five years, but only for retirees with VA disability ratings of 60 percent or higher.
Some estimate that 90,000 retirees would be affected by the House's version, which carries an appropriation to pay for the change.
Bill Daves, president of the Oahu Veterans Council, said the current law "penalizes you if you were in the military."
"When you serve for 20 years, you are entitled to your retirement," he said. "If you got a disability, they take it away from your retirement pay."
Hawaii's congressional members all support the concept of "concurrent receipt," which Bush may veto.
The OMB sent a memo earlier this month to the Senate Armed Services Committee that granting military retirement pay and full VA compensation benefits would raise federal spending by $18 billion over 10 years.
U.S. Sen. Dan Inouye, a Medal of Honor recipient who lost his right arm fighting in Italy during World War II, and Akaka were the original co-sponsors of legislation that would enable military retirees to receive their military retirement and disability compensation concurrently.
The ban on concurrent pay was imposed by Congress in 1891 and last modified in 1944.
However, disabled veterans have argued that their VA compensation is not affected if they worked for the federal government and applied their military service toward their civil service pension.
"This is one of the hottest issues that I encounter in every place I visit," American Legion National Commander Richard J. Santos said.
"A military career is filled with hardships, family separations, personal sacrifices and all too often being placed in harm's way," Santos said. "Denying a military retiree an earned benefit -- his or her military retirement pay -- is unconscionable."