The fiscal ’05 defense authorization act authorized immediate
concurrent receipt, without phase in, for military retirees
with a 100 percent disability rating from the Department of
Veterans Affairs. For those affected, this will eliminate the
“disabled veterans tax,” which refers to a 100-year old
requirement for military retirees to forfeit a dollar of retired
pay for every dollar of VA compensation received. American
Legion commander Thomas P. Cadmus said, “It’s a step in the
right direction. However, The American Legion will not rest
until every retired military veteran with a service-incurred
disability receives his or her just due: retirement pay they
earned through a full military career and compensation for
injuries received while serving their country. Subtracting
one from the other is just plain wrong regardless of the degree
of disability they suffered.”