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| December 2002 |
P.O. Box 712, Dover, NH 03820 |
Volume 23, No. 5
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Excerpt from TROA website In essence, the deal establishes a new form of “special compensation”
for certain disabled retirees who have at least 20 years of active duty
or a combination of active duty time and Reserve points comprising the
equivalent of 20 years of full-time active duty (unfortunately, very few
Reserve retirees qualify under this strict criterion).
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The amount of the special compensation will
be the full amount of retired pay forfeited due to receipt of VA compensation
for a qualifying disability. Unlike the special compensation already in
law (which provides $50 to $300 per month for certain severely disabled
retirees), the new version won’t be capped at a specific dollar amount,
and will rise each year as the offset rises. Unlike the current $50 to
$300 special compensation, which requires that a qualifying disability
must have occurred within 4 years after retirement, eligibility for the
new version will not be restricted by any time limit. Qualifying members
will be eligible to receive either the “new” or the “old” special compensation
amount, whichever is higher.
The effective date for the new program will be six months from the date the President signs the Defense Authorization Act into law (so the effective date should be sometime in May or June). The six-month delay will allow the Pentagon time to determine which retirees and which disabilities qualify for the new payments (see below) and establish application procedures (the language passed by the House indicates qualifying retirees will have to apply for the new special compensation). There will be no phase-in or ramp-up period. Qualifying payments will be paid as of the effective date. (Continued on page 9)
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