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LEGISLATIVE AND BENEFIT UPDATES

Credit: Architect of the Capitol Legislative and Benefit Updates

By Michael P. Hughes, OSC, USNR (ret.)

Disability Compensation

Disability compensation is Major Richard Star Act (H.R. 1282, S.344)
a monetary benefit deter-
mined by the Department The Concurrent Retirement and Disability Pay (CRDP) is
of Veterans Affairs (VA) for a Department of Defense (DoD) program that allows eli-
service-connected injury or gible individuals with combat related disabilities to receive
illness incurred or aggra- both retired pay and VA disability pay. The determination
vated during active-duty of eligibility is coordinated between VA and DoD. The
military service. Major Richard Star Act would allow concurrent receipt
of military retired pay based on years of service and grade
achieved and VA disability pay and eliminates the require-
Veterans discharged under dishonorable conditions are
not eligible for disability compensation. Disability com- ment of a minimum 50% disability rating with no offset
pensation payments are exempt from federal and state of retired pay regardless of the percent of disability rating.
income tax. This bill has been introduced for the last 2 years and was
reintroduced in March 2023. It has a majority of spon-
sors/supporters in both the House and Senate, but has not
Currently any retired military member receiving disability
compensation and rated less than 50% disabled has their been put to a floor vote because of cost concerns.
retired pay reduced by the amount of disability pay each
month. Those rated 50% or more disabled have no reduc- NOTE: This legislation only applies to those with combat
tion in their retired pay. NERA and our partner military related disabilities, not those veterans with non-combat
associations have objected to this enacted law as unjust related compensated disabilities who are rated below 50%
and unfair to those who have sacrificed and incurred ser- disabled. NERA continues to advocate for eliminating the
vice-connected injuries while serving and earned their offset penalty for all retired disabled service-connected mili-
retirement benefits. tary members regardless of the percentage of disability rating.

Reservist Pay Equity Act H.R. (3253)
This legislation has been introduced in the House to wages when deployed. It should be noted that there is no
encourage employers to pay members of the Reserves and mandated requirement for employers to pay differential
National Guard while they are activated. It would increase wages, but raising the tax credit for those that do will
the tax credit for employers from 20% to 50% for paying hopefully encourage employers to do so.
their Reservist and National Guard employees differential

HASC STARTS THE FY 2024 NDAA PROCESS
The House Armed Services Committee (HASC) has begun below during economic downturns, flexibility in Basic
drafting the FY 2024 National Defense Authorization Act Allowance for Housing to meet market conditions and no
(NDAA). An early draft includes a notable proposed 5.2 longer using housing allowance for income calculations in
% military pay raise. If enacted this would be the largest determining stipends and benefits.
military pay raise since 2002, over two decades ago. This
proposed raise is in agreement with the Presidents pro- This is still a long way from being enacted. It still has to
posed budget submission for FY 2024. Other areas under go through committee and subcommittee review, pas-
consideration in the NDAA are bonuses for E-6 and sage by the House, passage by the Senate, typically a joint

4 The Mariner • 2023 SUMMER Edition • Volume 66 • Issue 2

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