[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3489 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 3489
To amend title 10, United States Code, to eliminate the recoupment of
separation pay, special separation benefits, and voluntary separation
incentive payments from members of the Armed Forces who subsequently
receive disability compensation under laws administered by the
Department of Veterans Affairs and to impose limitations on the
authority of the Secretary of Defense to recoup such pay from members
who subsequently receive military retired or retainer pay.
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IN THE HOUSE OF REPRESENTATIVES
May 18, 2023
Mr. Gallego (for himself, Mr. Bilirakis, and Mr. DeSaulnier) introduced
the following bill; which was referred to the Committee on Armed
Services, and in addition to the Committee on Veterans' Affairs, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend title 10, United States Code, to eliminate the recoupment of
separation pay, special separation benefits, and voluntary separation
incentive payments from members of the Armed Forces who subsequently
receive disability compensation under laws administered by the
Department of Veterans Affairs and to impose limitations on the
authority of the Secretary of Defense to recoup such pay from members
who subsequently receive military retired or retainer pay.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Restore Veterans' Compensation Act
of 2023''.
SEC. 2. RECOUPMENT OF SEPARATION PAY, SPECIAL SEPARATION BENEFITS,
VOLUNTARY SEPARATION INCENTIVE, AND VOLUNTARY SEPARATION
PAY AND BENEFITS FROM MEMBERS OF THE ARMED FORCES.
(a) Separation Pay Upon Involuntary Discharge or Release From
Active Duty and Special Separation Benefits.--
(1) Elimination of recoupment from members receiving
veterans disability compensation.--Paragraph (2) of section
1174(h) of title 10, United States Code, is amended to read as
follows:
``(2)(A) A member who has received separation pay under this
section, or severance pay or readjustment pay under any other provision
of law, based on service in the armed forces shall not be deprived, by
reason of the receipt of such separation pay, severance pay, or
readjustment pay, of any disability compensation to which the member is
entitled under the laws administered by the Department of Veterans
Affairs.
``(B) The amount of disability compensation to which a member may
be entitled under the laws administered by the Department of Veterans
Affairs may not be reduced on account of the receipt of separation pay,
severance pay, or readjustment pay.''.
(2) Recoupment from members receiving retired or retainer
pay limited to net amount of separation pay.--Section
1174(h)(1) of title 10, United States Code, is amended by
inserting before the period at the end the following: ``, less
the amount of Federal income tax withheld from the separation
pay, severance pay, or readjustment pay (such withholding being
at the flat withholding rate for Federal income tax
withholding, as in effect pursuant to regulations prescribed
under chapter 24 of the Internal Revenue Code of 1986)''.
(3) Percentage limitations on recoupment from members
receiving retired or retainer pay and recoupment process.--
Section 1174(h)(1) of title 10, United States Code, as amended
by paragraph (2), is further amended--
(A) by inserting ``(A)'' after ``(1)'';
(B) by striking ``shall specify, taking into
account the financial ability of the member to pay and
avoiding the imposition of undue financial hardship on
the member and member's dependents,'' and inserting
``(subject to subparagraph (B)) shall specify''; and
(C) by adding at the end the following new
subparagraphs:
``(B) The amount deducted under subparagraph (A) from a payment of
retired or retainer pay may not exceed 25 percent of the amount of the
member's retired or retainer pay for that month unless the member
requests deductions at an accelerated rate. The Secretary of Defense
shall consult with the member regarding the repayment rate to be
imposed, taking into account the financial ability of the member to pay
and avoiding the imposition of an undue hardship on the member and the
member's dependents.
``(C) The deduction of amounts from the retired or retainer pay of
a member under this paragraph may not commence until the date that is
90 days after the date on which the Secretary of Defense notifies the
member of the deduction of such amounts under this paragraph. Any
notice under this subparagraph shall be designed to provide clear and
comprehensive information on the deduction of amounts under this
paragraph, including information on the determination of the amount and
period of installments under this paragraph.
``(D) The Secretary of Defense may waive the deduction of amounts
from the retired or retainer pay of a member under this paragraph if
the Secretary determines that deduction of such amounts would result in
a financial hardship for the member.''.
(b) Conforming Amendments.--
(1) Voluntary separation incentive.--Section 1175(e) of
title 10, United States Code, is amended--
(A) in paragraph (3)(A)--
(i) by striking the first sentence and
inserting the following new sentence:
``Subsection (h) of section 1174 of this title
shall apply to any member who has received the
voluntary separation incentive and who later
qualifies for retired or retainer pay under
this title or for disability compensation under
the laws administered by the Department of
Veterans Affairs.''; and
(ii) in the second sentence, by striking
``the deduction required under the preceding
sentence'' and inserting ``the deduction from
the member's retired or retainer pay''; and
(B) by striking paragraph (4) and redesignating
paragraph (5) as paragraph (4).
(2) Voluntary separation pay and benefits.--Subsection (h)
of section 1175a of title 10, United States Code, is amended to
read as follows:
``(h) Coordination With Retired or Retainer Pay and Disability
Compensation.--(1) Subsection (h) of section 1174 of this title shall
apply to any member who receives voluntary separation pay under this
section and who later qualifies for retired or retainer pay under this
title or title 14 or for disability compensation under the laws
administered by the Department of Veterans Affairs.
``(2) No deduction shall be made from the disability compensation
paid to an eligible disabled uniformed services retiree under section
1413, or to an eligible combat-related disabled uniformed services
retiree under section 1413a of this title, who is paid voluntary
separation pay under this section.
``(3) The requirement under this subsection to repay voluntary
separation pay following retirement from the armed forces does not
apply to a member who was eligible to retire at the time the member
applied and was accepted for voluntary separation pay and benefits
under this section.''.
(c) Effective Date and Application of Amendments.--The amendments
made by this section shall take effect on the first day of the first
month beginning on or after the date of the enactment of this Act. In
the case of deductions to be made from the retired or retainer pay of
members of the uniformed services, the amendments shall apply to that
month and subsequent months.
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