10 U.S.C. § 1414 — Members eligible for retired pay who are

Page 1333 TITLE 10—ARMED FORCES § 1414 effect as of October 1, 2003. The Secretary of Defense shall provide for such administrative adjustments as necessary to provide for payments made for any period during fiscal year 2004 before the date of the enactment of this Act [Nov. 24, 2003] to be treated as having been made in accordance with such amendments and for the provisions of such amendments to be implemented as if enacted as of September 30, 2003.’’ Pub. L. 108–136, div. A, title VI, § 642(f), Nov. 24, 2003, 117 Stat. 1517, provided that: ‘‘The amendments made by subsections (a), (b), and (c) [amending this section] shall apply to payments under section 1413a of title 10, United States Code, for months beginning on or after January 1, 2004. The amendment made by subsection (d) [amending this section] shall take effect on January 1, 2004.’’ EFFECTIVE DATE Pub. L. 107–314, div. A, title VI, § 636(a)(2), Dec. 2, 2002, 116 Stat. 2576, provided that: ‘‘Section 1413a of title 10, United States Code, as added by paragraph (1), shall take effect not later than 180 days after the date of the enactment of this Act [Dec. 2, 2002].’’ CLARIFICATION OF ELIGIBILITY OF MEMBERS OF THE COAST GUARD FOR COMBAT-RELATED SPECIAL COM- PENSATION Pub. L. 114–120, title II, § 221, Feb. 8, 2016, 130 Stat. 48, as amended by Pub. L. 117–263, div. K, title CXIV, § 11404(c), Dec. 23, 2022, 136 Stat. 4110, provided that: ‘‘(a) CONSIDERATION OF ELIGIBILITY.— ‘‘(1) IN GENERAL.—Not later than 90 days after the date of the enactment of this Act [Feb. 8, 2016], the Secretary of the department in which the Coast Guard is operating shall issue procedures and criteria to use in determining whether the disability of a member of the Coast Guard is a combat-related dis- ability for purposes of the eligibility of such member for combat-related special compensation under sec- tion 1413a of title 10, United States Code. Such proce- dures and criteria shall include the procedures and criteria prescribed by the Secretary of Defense pursu- ant to subsection (e)(2) of such section. Such proce- dures and criteria shall apply in determining whether the disability of a member of the Coast Guard is a combat-related disability for purposes of determining the eligibility of such member for combat-related special compensation under such section. ‘‘(2) DISABILITY FOR WHICH A DETERMINATION IS MADE.—For the purposes of this section, and in the case of a member of the Coast Guard, a disability under section 1413a(e)(2)(B) of title 10, United States Code, includes a disability incurred during aviation duty, diving duty, rescue swimmer or similar duty, hazardous service duty onboard a small vessel (such as duty as a surfman), or a duty in which chemical or other hazardous material exposure has occurred (such as during marine inspections or pollution response activities)— ‘‘(A) in the performance of duties for which spe- cial or incentive pay was paid pursuant to section 301, 301a, 304, 307, 334, or 351 of title 37, United States Code; ‘‘(B) in the performance of duties related to a statutory mission of the Coast Guard under section 888(a) of the Homeland Security Act of 2002 (6 U.S.C. 468(a)); or ‘‘(C) while engaged in a training exercise for the performance of a duty described in subparagraphs (A) and (B). ‘‘(b) APPLICABILITY OF PROCEDURES AND CRITERIA.— The procedures and criteria issued pursuant to sub- section (a) shall apply to disabilities described in that subsection that are incurred on or after the effective date provided in section 636(a)(2) of the Bob Stump Na- tional Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2574; 10 U.S.C. 1413a note) [See Effective Date note above]. ‘‘(c) REAPPLICATION FOR COMPENSATION.—Any member of the Coast Guard who was denied combat-related spe- cial compensation under section 1413a of title 10, United States Code, during the period beginning on the effective date specified in subsection (b) and ending on the date of the issuance of the procedures and criteria required by subsection (a) may reapply for combat-re- lated special compensation under such section on the basis of such procedures and criteria in accordance with such procedures as the Secretary of the depart- ment in which the Coast Guard is operating shall speci- fy.’’ § 1414. Members eligible for retired pay who are also eligible for veterans’ disability com- pensation for disabilities rated 50 percent or higher: concurrent payment of retired pay and veterans’ disability compensation (a) PAYMENT OF BOTH RETIRED PAY AND COM- PENSATION.— (1) IN GENERAL.—Subject to subsection (b), a member or former member of the uniformed services who is entitled for any month to re- tired pay and who is also entitled for that month to veterans’ disability compensation for a qualifying service-connected disability (hereinafter in this section referred to as a ‘‘qualified retiree’’) is entitled to be paid both for that month without regard to sections 5304 and 5305 of title 38. During the period begin- ning on January 1, 2004, and ending on Decem- ber 31, 2013, payment of retired pay to such a qualified retiree is subject to subsection (c), except that payment of retired pay is subject to subsection (c) only during the period begin- ning on January 1, 2004, and ending on Decem- ber 31, 2004, in the case of the following: (A) A qualified retiree receiving veterans’ disability compensation for a disability rated as 100 percent. (B) A qualified retiree receiving veterans’ disability compensation at the rate payable for a 100 percent disability by reason of a de- termination of individual unemployability. (2) QUALIFYING SERVICE-CONNECTED DIS- ABILITY.—In this section, the term ‘‘qualifying service-connected disability’’ means a service- connected disability or combination of serv- ice-connected disabilities that is rated as not less than 50 percent disabling by the Secretary of Veterans Affairs. (b) SPECIAL RULES FOR CHAPTER 61 DISABILITY RETIREES.— (1) CAREER RETIREES.—The retired pay of a member retired under chapter 61 of this title with 20 years or more of service otherwise creditable under section 1405 of this title, or at least 20 years of service computed under sec- tion 12732 of this title, at the time of the mem- ber’s retirement is subject to reduction under sections 5304 and 5305 of title 38, but only to the extent that the amount of the member’s retired pay under chapter 61 of this title ex- ceeds the amount of retired pay to which the member would have been entitled under any other provision of law based upon the mem- ber’s service in the uniformed services if the member had not been retired under chapter 61 of this title. (2) DISABILITY RETIREES WITH LESS THAN 20 YEARS OF SERVICE.—Subsection (a) does not apply to a member retired under chapter 61 of this title with less than 20 years of service Page 1334 TITLE 10—ARMED FORCES § 1414 otherwise creditable under section 1405 of this title, or with less than 20 years of service com- puted under section 12732 of this title, at the time of the member’s retirement. (c) PHASE-IN OF FULL CONCURRENT RECEIPT.— During the period beginning on January 1, 2004, and ending on December 31, 2013, retired pay payable to a qualified retiree that pursuant to the second sentence of subsection (a)(1) is sub- ject to this subsection shall be determined as follows: (1) CALENDAR YEAR 2004.—For a month during 2004, the amount of retired pay payable to a qualified retiree is the amount (if any) of re- tired pay in excess of the current baseline off- set plus the following: (A) For a month for which the retiree re- ceives veterans’ disability compensation for a disability rated as total, $750. (B) For a month for which the retiree re- ceives veterans’ disability compensation for a disability rated as 90 percent, $500. (C) For a month for which the retiree re- ceives veterans’ disability compensation for a disability rated as 80 percent, $350. (D) For a month for which the retiree re- ceives veterans’ disability compensation for a disability rated as 70 percent, $250. (E) For a month for which the retiree re- ceives veterans’ disability compensation for a disability rated as 60 percent, $125. (F) For a month for which the retiree re- ceives veterans’ disability compensation for a disability rated as 50 percent, $100. (2) CALENDAR YEAR 2005.—For a month during 2005, the amount of retired pay payable to a qualified retiree is the sum of— (A) the amount specified in paragraph (1) for that qualified retiree; and (B) 10 percent of the difference between (i) the current baseline offset, and (ii) the amount specified in paragraph (1) for that member’s disability. (3) CALENDAR YEAR 2006.—For a month during 2006, the amount of retired pay payable to a qualified retiree is the sum of— (A) the amount determined under para- graph (2) for that qualified retiree; and (B) 20 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (2) for that qualified retiree. (4) CALENDAR YEAR 2007.—For a month during 2007, the amount of retired pay payable to a qualified retiree is the sum of— (A) the amount determined under para- graph (3) for that qualified retiree; and (B) 30 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (3) for that qualified retiree. (5) CALENDAR YEAR 2008.—For a month during 2008, the amount of retired pay payable to a qualified retiree is the sum of— (A) the amount determined under para- graph (4) for that qualified retiree; and (B) 40 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (4) for that qualified retiree. (6) CALENDAR YEAR 2009.—For a month during 2009, the amount of retired pay payable to a qualified retiree is the sum of— (A) the amount determined under para- graph (5) for that qualified retiree; and (B) 50 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (5) for that qualified retiree. (7) CALENDAR YEAR 2010.—For a month during 2010, the amount of retired pay payable to a qualified retiree is the sum of— (A) the amount determined under para- graph (6) for that qualified retiree; and (B) 60 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (6) for that qualified retiree. (8) CALENDAR YEAR 2011.—For a month during 2011, the amount of retired pay payable to a qualified retiree is the sum of— (A) the amount determined under para- graph (7) for that qualified retiree; and (B) 70 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (7) for that qualified retiree. (9) CALENDAR YEAR 2012.—For a month during 2012, the amount of retired pay payable to a qualified retiree is the sum of— (A) the amount determined under para- graph (8) for that qualified retiree; and (B) 80 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (8) for that qualified retiree. (10) CALENDAR YEAR 2013.—For a month dur- ing 2013, the amount of retired pay payable to a qualified retiree is the sum of— (A) the amount determined under para- graph (9) for that qualified retiree; and (B) 90 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (9) for that qualified retiree. (11) GENERAL LIMITATION.—Retired pay deter- mined under this subsection for a qualified re- tiree, if greater than the amount of retired pay otherwise applicable to that qualified re- tiree, shall be reduced to the amount of re- tired pay otherwise applicable to that quali- fied retiree. (d) COORDINATION WITH COMBAT-RELATED SPE- CIAL COMPENSATION PROGRAM.— (1) IN GENERAL.—A person who is a qualified retiree under this section and is also an eligi- ble combat-related disabled uniformed serv- ices retiree under section 1413a of this title may receive special compensation in accord- ance with that section or retired pay in ac- cordance with this section, but not both. (2) ANNUAL OPEN SEASON.—The Secretary concerned shall provide for an annual period (referred to as an ‘‘open season’’) during which a person described in paragraph (1) shall have the right to make an election to change from receipt of special compensation in accordance with section 1413a of this title to receipt of re- Page 1335 TITLE 10—ARMED FORCES § 1414 tired pay in accordance with this section, or the reverse, as the case may be. Any such elec- tion shall be made under regulations pre- scribed by the Secretary concerned. Such reg- ulations shall provide for the form and manner for making such an election and shall provide for the date as of when such an election shall become effective. In the case of the Secretary of a military department, such regulations shall be subject to approval by the Secretary of Defense. (e) DEFINITIONS.—In this section: (1) RETIRED PAY.—The term ‘‘retired pay’’ in- cludes retainer pay, emergency officers’ retire- ment pay, and naval pension. (2) VETERANS’ DISABILITY COMPENSATION.— The term ‘‘veterans’ disability compensation’’ has the meaning given the term ‘‘compensa- tion’’ in section 101(13) of title 38. (3) DISABILITY RATED AS TOTAL.—The term ‘‘disability rated as total’’ means— (A) a disability, or combination of disabil- ities, that is rated as total under the stand- ard schedule of rating disabilities in use by the Department of Veterans Affairs; or (B) a disability, or combination of disabil- ities, for which the scheduled rating is less than total but for which a rating of total is assigned by reason of inability of the dis- abled person concerned to secure or follow a substantially gainful occupation as a result of disabilities for which veterans’ disability compensation may be paid. (4) CURRENT BASELINE OFFSET.— (A) IN GENERAL.—The term ‘‘current base- line offset’’ for any qualified retiree means the amount for any month that is the lesser of— (i) the amount of the applicable monthly retired pay of the qualified retiree for that month; and (ii) the amount of monthly veterans’ dis- ability compensation to which the quali- fied retiree is entitled for that month. (B) APPLICABLE RETIRED PAY.—In subpara- graph (A), the term ‘‘applicable retired pay’’ for a qualified retiree means the amount of monthly retired pay to which the qualified retiree is entitled, determined without re- gard to this section or sections 5304 and 5305 of title 38, except that in the case of such a retiree who was retired under chapter 61 of this title, such amount is the amount of re- tired pay to which the member would have been entitled under any other provision of law based upon the member’s service in the uniformed services if the member had not been retired under chapter 61 of this title. (Added Pub. L. 107–107, div. A, title VI, § 641(a), Dec. 28, 2001, 115 Stat. 1149; amended Pub. L. 108–136, div. A, title VI, § 641(a), Nov. 24, 2003, 117 Stat. 1511; Pub. L. 108–375, div. A, title VI, § 642, Oct. 28, 2004, 118 Stat. 1957; Pub. L. 109–163, div. A, title VI, § 663, Jan. 6, 2006, 119 Stat. 3316; Pub. L. 110–181, div. A, title VI, § 642(a), Jan. 28, 2008, 122 Stat. 157; Pub. L. 113–76, div. C, title X, § 10001(b)(2), Jan. 17, 2014, 128 Stat. 151; Pub. L. 114–92, div. A, title VI, § 631(d)(2), Nov. 25, 2015, 129 Stat. 845.) Editorial Notes AMENDMENTS 2015—Subsec. (b)(1). Pub. L. 114–92, § 631(d)(2), which was approved Nov. 25, 2015, provided that the amend- ment made by Pub. L. 113–76, § 10001(b)(2), which was ef- fective Dec. 1, 2015, would not take effect. See 2014 Amendment note below. 2014—Subsec. (b)(1). Pub. L. 113–76, § 10001(b)(2), which directed insertion of ‘‘(but without the application of section 1401a(b)(4) of this title)’’ after ‘‘under any other provision of law’’, did not take effect pursuant to Pub. L. 114–92, § 631(d)(2). See 2015 Amendment note above. 2008—Subsec. (a)(1). Pub. L. 110–181 substituted ‘‘ex- cept that payment of retired pay is subject to sub- section (c) only during the period beginning on January 1, 2004, and ending on December 31, 2004, in the case of the following:’’ for ‘‘except that in the case of a quali- fied retiree receiving veterans’ disability compensation for a disability rated as 100 percent, payment of retired pay to such veteran is subject to subsection (c) only during the period beginning on January 1, 2004, and ending on December 31, 2004, and in the case of a quali- fied retiree receiving veterans’ disability compensation at the rate payable for a 100 percent disability by rea- son of a determination of individual unemployability, payment of retired pay to such veteran is subject to subsection (c) only during the period beginning on Jan- uary 1, 2004, and ending on September 30, 2009.’’ and added subpars. (A) and (B). 2006—Subsec. (a)(1). Pub. L. 109–163 inserted ‘‘, and in the case of a qualified retiree receiving veterans’ dis- ability compensation at the rate payable for a 100 per- cent disability by reason of a determination of indi- vidual unemployability, payment of retired pay to such veteran is subject to subsection (c) only during the pe- riod beginning on January 1, 2004, and ending on Sep- tember 30, 2009’’ before period at end. 2004—Subsec. (a)(1). Pub. L. 108–375, § 642(a), inserted before period at end ‘‘, except that in the case of a qualified retiree receiving veterans’ disability com- pensation for a disability rated as 100 percent, payment of retired pay to such veteran is subject to subsection (c) only during the period beginning on January 1, 2004, and ending on December 31, 2004’’. Subsec. (c). Pub. L. 108–375, § 642(b), inserted ‘‘that pursuant to the second sentence of subsection (a)(1) is subject to this subsection’’ after ‘‘a qualified retiree’’ in introductory provisions. 2003—Pub. L. 108–136 amended section generally. Prior to amendment, section related to members eligible for retired pay who had service-connected disabilities: pay- ment of retired pay and veterans’ disability compensa- tion; and contingent effectiveness based on enactment of offsetting legislation. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–76 effective Dec. 1, 2015, immediately after the coming into effect of section 403 of Pub. L. 113–67 and the amendments made by that sec- tion, see section 10001(c) of Pub. L. 113–76, set out as a note under section 1401a of this title. Amendment did not take effect pursuant to section 631(d)(2) of Pub. L. 114–92, set out as a Repeal of Reduced Cost-of-living Ad- justments for Members Under the Age of 62 note under section 1401a of this title. EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–181, div. A, title VI, § 642(b), Jan. 28, 2008, 122 Stat. 157, provided that: ‘‘(1) IN GENERAL.—Subject to paragraph (2), the amendment made by subsection (a) [amending this sec- tion] shall take effect as of December 31, 2004. ‘‘(2) TIMING OF PAYMENT OF RETROACTIVE BENEFITS.— Any amount payable for a period before October 1, 2008, by reason of the amendment made by subsection (a) shall not be paid until after that date.’’ Page 1336 TITLE 10—ARMED FORCES § 1415 EFFECTIVE DATE OF 2003 AMENDMENT Pub. L. 108–136, div. A, title VI, § 641(e), Nov. 24, 2003, 117 Stat. 1516, provided that: ‘‘The amendments made by subsections (a) and (b) [amending this section and repealing section 1413 of this title] shall take effect on January 1, 2004, and shall apply to payments for months beginning on or after that date.’’ PROHIBITION OF RETROACTIVE BENEFITS Pub. L. 107–107, div. A, title VI, § 641(d), Dec. 28, 2001, 115 Stat. 1150, provided that: ‘‘If the provisions of sub- section (a) of section 1414 of title 10, United States Code, becomes [sic] effective in accordance with sub- section (f) of that section, no benefit may be paid to any person by reason of those provisions for any period before the effective date specified in subsection (e) of that section.’’ § 1415. Lump sum payment of certain retired pay (a) DEFINITIONS.—In this section: (1) COVERED RETIRED PAY.—The term ‘‘cov- ered retired pay’’ means retired pay under— (A) this title; (B) title 14; (C) the National Oceanic and Atmospheric Administration Commissioned Officer Corps Act of 2002 (33 U.S.C. 3001 et seq.); or (D) the Public Health Service Act (42 U.S.C. 201 et seq.). (2) ELIGIBLE PERSON.—The term ‘‘eligible person’’ means a person who— (A)(i) first becomes a member of a uni- formed service on or after January 1, 2018; or (ii) makes the election described in section 1409(b)(4)(B) or 12739(f)(2) of this title; and (B) does not retire or separate under chap- ter 61 of this title. (3) RETIREMENT AGE.—The term ‘‘retirement age’’ has the meaning given the term in sec- tion 216(l) of the Social Security Act (42 U.S.C. 416(l)). (b) ELECTION OF LUMP SUM PAYMENT OF CER- TAIN RETIRED PAY.— (1) IN GENERAL.—An eligible person entitled to covered retired pay (including an eligible person who is entitled to such pay by reason of an election described in subsection (a)(2)(A)(ii)) may elect to receive— (A) a lump sum payment of the discounted present value at the time of the election of an amount of the covered retired pay that the eligible person is otherwise entitled to receive for the period beginning on the date of retirement and ending on the date the eli- gible person attains the eligible person’s re- tirement age equal to— (i) 50 percent of the amount of such cov- ered retired pay during such period; or (ii) 25 percent of the amount of such cov- ered retired pay during such period; and (B) a monthly amount during the period described in subparagraph (A) equal to— (i) in the case of an eligible person elect- ing to receive an amount described in sub- paragraph (A)(i), 50 percent of the amount of monthly covered retired pay the eligible person is otherwise entitled to receive dur- ing such period; and (ii) in the case of an eligible person electing to receive an amount described in subparagraph (A)(ii), 75 percent of the amount of monthly covered retired pay the eligible person is otherwise entitled to re- ceive during such period. (2) DISCOUNTED PRESENT VALUE.—The Sec- retary of Defense shall compute the dis- counted present value of amounts of covered retired pay that an eligible person is otherwise entitled to receive for a period for purposes of paragraph (1)(A) by— (A) estimating the aggregate amount of re- tired pay the person would receive for the period, taking into account cost-of-living ad- justments under section 1401a of this title projected by the Secretary at the time the person separates from service and would oth- erwise begin receiving covered retired pay; and (B) reducing the aggregate amount esti- mated pursuant to subparagraph (A) by an appropriate percentage determined by the Secretary— (i) using average personal discount rates (as defined and calculated by the Sec- retary taking into consideration applica- ble and reputable studies of personal dis- count rates for military personnel and past actuarial experience in the calculation of personal discount rates under this para- graph); and (ii) in accordance with generally accept- ed actuarial principles and practices. (3) TIMING OF ELECTION.—An eligible person shall make the election under this subsection not later than 90 days before the date of the retirement of the eligible person from the uni- formed services. (4) SINGLE PAYMENT OR COMBINATION OF PAY- MENTS.—An eligible person may elect to re- ceive a lump sum payment under this sub- section in a single payment or in a combina- tion of payments. (5) COMMENCEMENT OF PAYMENT.—An eligible person who makes an election under this sub- section shall receive the lump sum payment, or the first installment of a combination of payments of the lump sum payment if elected under paragraph (4), as follows: (A) Not later than 60 days after the date of the retirement of the eligible person from the uniformed services. (B) In the case of an eligible person who is a member of a reserve component, not later than 60 days after the earlier of— (i) the date on which the eligible person attains 60 years of age; or (ii) the date on which the eligible person first becomes entitled to covered retired pay. (6) NO SUBSEQUENT ADJUSTMENT.—An eligible person who accepts payment of a lump sum under this subsection may not seek the review of or otherwise challenge the amount of the lump sum in light of any variation in cost-of- living adjustments under section 1401a of this title, actuarial assumptions, or other factors used by the Secretary in calculating the amount of the lump sum that occur after the Secretary pays the lump sum. (c) RESUMPTION OF MONTHLY ANNUITY.—