Operation Just Cause... ...for as long as it takes
Sent in by Veterans News and Information Services
From:
"Willie G. Dougherty"
The enclosed information is provided for use by Veterans Service
Representatives in answering inquires concerning this new law. More
details about the implementation of this new law will be provided
shortly under separate cover.
What is Section 658, PL 106-65?
Section 658 of the National Defense Authorization Act for Fiscal Year
1999, Public Law 106-65, dated October 5, 1999, (Title 10 U.S.C.1413)
provides a "special compensation" for severely disabled length of
service retirees of the Uniformed Services. This benefit will be
administered by the Department of Defense (DoD). This benefit is not
paid by VA.
Who is eligible?
Length of service retirees who became severely disabled (70%, 80%, 90%,
100% or Individual Unemployability (IU)) within four years from their
date of retirement are eligible for this benefit. Those retired for
disability are not eligible.
Who will determine entitlement?
DoD will determine who is entitled to this payment based on data
provided by the Department of Veterans Affairs (VA). The eligible
retiree is entitled to this monthly benefit on or after October 1, 1999.
How much is this "Special Compensation?"
The amount of Special Compensation will be determined according to the
current disability rating (for the month of entitlement) as reported by
the VA to DoD:
$100 for a disability rating of 70 or 80 percent. Do I have to file a claim?
No. DoD will automatically start paying eligible retirees identified
electronically. However, retirees may be contacted by DoD if additional
information is required to determine entitlement.
When will this new benefit be paid?
VA, Defense Finance and Accounting Service (DFAS), Coast Guard and
National Oceanic and Atmospheric Administration, and Public Heath
Service are currently working together to match electronic records and
develop a current and ongoing list of potentially eligible veterans.
DoD has projected that the first payments will be made in early 2000.
The awards will be retroactive to October 1, 1999.
Is this new benefit taxable?
Yes. Special Compensation paid under 10 USC 1413 is taxable income
within the meaning of section 61 of the Internal Revenue Code.
Will there be an adjustment to my VA award?
There will be no adjustment of VA awards. Special Compensation paid
under 10 USC 1413 is provided under chapter 71, title 10, USC,
"Computation of Retired Pay." However, it is NOT RETIRED PAY. It is to
be paid from funds appropriated for pay and allowances of the recipient
member's branch of service. Eligible retirees in receipt of VA
disability compensation may receive this benefit in addition to their VA
disability compensation.
Robert J. Epley, Director
$200 for a disability rating of 90 percent, and
$300 for a disability rating of 100 percent or (IU).
Compensation and Pension Service
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