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Congressional Budget Office Pending Considerations

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Mandatory SpendingOption 7 Function 600 - Income Security Eliminate Concurrent Receipt of Retirement Pay and Disability Compensation for Disabled Veterans
Billions of dollars 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015-2019 2015-2024 Change in Outlays 0 -10 -10 -10 -12 -13 -13 -15 -15 -14 -42 -112

Note: This option would take effect in October 2015. Estimates are relative to CBO’s August 2014 baseline projections.

Two groups of retired military personnel are allowed to receive their full retirement pay from the Department of Defense without having such pay reduced dollar for dollar by the receipt of any disability compensation from the Department of Veterans Affairs (VA)—a benefit often called concurrent receipt. The first group consists of those whose disabilities arise from combat; they are eligible for combat-related special compensation. The second group consists of those who have a longevity-based retirement and have received a VA disability rating of at least 50 percent; they are eligible for what is termed concurrent retirement and disability pay. Under this option, those forms of concurrent receipt would be eliminated.

Mandatory SpendingOption 19 Function 700 - Veterans Benefits and Services Narrow Eligibility for Veterans' Disability Compensation by Excluding Certain Disabilities Unrelated to Military Duties
Billions of dollars 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015-2019 2015-2024 Change in Outlays 0.0 -2.5 -2.3 -2.1 -2.3 -2.2 -2.2 -2.4 -2.2 -2.1 -9.1 -20.3

Note: This option would take effect in October 2015. Estimates are relative to CBO’s August 2014 baseline projections.

Veterans may receive disability compensation from the Department of Veterans Affairs for medical conditions or injuries that occurred or worsened during active-duty military service (excluding those resulting from willful misconduct). Some medical conditions and injuries that are deemed to be service-connected disabilities were incurred or exacerbated in the performance of military duties, but others were not. According to the Government Accountability Office (GAO), seven qualifying medical conditions that are generally neither caused nor aggravated by military service are chronic obstructive pulmonary disease, arteriosclerotic heart disease, hemorrhoids, uterine fibroids, multiple sclerosis, Crohn’s disease, and osteoarthritis.

This option would cease veterans’ disability compensation for the seven medical conditions identified by GAO. Under the option, veterans currently receiving compensation for those conditions would have their compensation reduced or eliminated following a reevaluation, and veterans who applied for compensation for those conditions in the future would not be eligible for it.

Mandatory SpendingOption 20 Function 700 - Veterans Benefits and Services Restrict VA's Individual Unemployability Benefits to Disabled Veterans Who Are Younger Than the Full Retirement Age for Social Security
Billions of dollars 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015-2019 2015-2024 Change in Outlays 0.0 -1.0 -1.9 -1.9 -1.9 -1.9 -1.9 -1.9 -1.9 -1.9 -6.7 -16.3

Note: This option would take effect in October 2015. Estimates are relative to CBO’s August 2014 baseline projections.

The Department of Veterans Affairs (VA) supplements regular disability compensation payments with Individual Unemployability (IU) payments for low-income veterans that it deems unable to engage in substantial work. To qualify, veterans’ wages or salaries cannot exceed the federal poverty guidelines for a single person, and applicants generally must be rated between 60 percent and 90 percent disabled. A veteran qualifying for the IU supplement receives a monthly disability payment equal to the amount that he or she would receive with a 100 percent disability rating.

Under this option, VA would no longer make IU payments to veterans who were past Social Security’s full retirement age, which varies from 65 to 67, depending on a beneficiary’s birth year. Therefore, at the full retirement age, VA disability payments would revert to the amount associated with the disability rating.

You may want to contact your Congressman on these issues.

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There is plenty to cut in the federal budget before getting to veterans, but that doesn't mean they won't do it.

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  • Moderator

In My Opinion I Don't Think This Bill Will Ever Pass,!

Where is the HONOR for taking care of Americas Freedom & The men & women who gave there life for it and the millions that were wounded or became disable for SERVING there country when ASK by there country!

These are the same people that want to take away a veterans earned and well deserved benefits Not so much to reduce the deficit but to make sure there pay check is not reduced! (THEY NEED TO TAKE A GOOD LONG LOOK IN THE MIRROR)....That Bill is UN- ACCEPTABLE to even be on the agenda and a Dis -Honor to all US Military Veterans Past Present and Future.

Yes there are many other ways to reduce the Federal Deficit Without Cutting Veterans Benefits.

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I mentioned to my Congressman's office when I spoke with them, If a Vet could work until full retirement age their SS benefits would be larger. If they have not been able to continue working due to their scd, they would be penalized by cutting them off at full retirement age. Clerk who I spoke with said "Good point, I had not thought of that."

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Because I had to retire due to SC conditions at age 51 I probably lost many thousands of bucks in pension, SSA and my contribution to FERS Thrift Savings. I used to contribute 15% of my before tax pay to Thrift Savings. All that lost due to SC conditions. Back in 2001 I was making about $25 an hour. To me that was a lot of money. Because investments I made I think I broke even, but if I lost TDIU at age 65 that would knock me back to 90% rating and wife would lose ChampVA.

That would cost me and dislocate my plans for the future for me and my wife. She would lose possible DIC unless I died from one of the AO conditions. I have five. These budget hawks don't consider all these complications to doing away with TDIU for older vets. How much do they think we get from SSDI anyway? I think the average is about $1300 a month.


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