Disabled Veterans Tax Termination Act

This bill aims to significantly expand the eligibility for concurrent receipt of military retired pay and veterans' disability compensation. Currently, many retired service members with service-connected disabilities face a reduction in their retired pay if they also receive disability compensation. The proposed changes seek to eliminate this offset for a broader group of veterans, ensuring they receive both benefits without penalty. Specifically, the legislation amends title 10 of the United States Code to allow retired members with a service-connected disability rated less than 50 percent to receive both their full retired pay and disability compensation concurrently. This removes a significant barrier for many disabled veterans who previously did not meet the higher disability rating threshold. Furthermore, it extends concurrent receipt eligibility to those retired under chapter 61 for disability with fewer than 20 years of creditable service . The bill also includes conforming amendments to update existing law by removing outdated references to the concurrent receipt phase-in period, ensuring the statute accurately reflects current policy.