10 U.S.C. § 1414 — Members eligible for retired pay who are also eligible for veterans’ disability compensation for disabilities rated 50 percent or higher: concurrent payment of retired pay and veterans’ disability compensation

(a) Payment of both retired pay^* and compensation. (1) Subject to subsection (b), a uniformed-services member or former member entitled to retired pay and to veterans' disability compensation for a qualifying service-connected disability for the same month—a “qualified retiree”—may receive both without applying sections 5304 and 5305 of title 38. From January 1, 2004 through December 31, 2013, retired pay is subject to subsection (c). For a qualified retiree receiving compensation for a 100-percent disability, or compensation at the 100-percent rate^* because of individual unemployability, subsection (c) applies only during 2004. (2) “Qualifying service-connected disability” means a service-connected disability, or combination, rated at least 50 percent disabling by the Secretary of Veterans Affairs. (b) Special rules for chapter 61 disability retirees. (1) A member retired under chapter 61 with at least 20 years of service creditable under section 1405 or at least 20 years computed under section 12732 remains subject to the title 38 reductions, but only for the amount by which chapter 61 retired pay exceeds the pay the member would have received under another law based on service if not retired under chapter 61. (2) Subsection (a) does not apply to a chapter 61 retiree with fewer than 20 years under either of those service calculations at retirement. (c) Phase-in of full concurrent receipt. For the 2004–2013 period, when subsection (a)(1) makes retired pay subject to this subsection: (1) In 2004, monthly retired pay is any retired pay above the current baseline offset, plus $750 for a total-rated disability, $500 for a 90-percent rating^*, $350 for 80 percent, $250 for 70 percent, $125 for 60 percent, or $100 for 50 percent. (2) In 2005, it is the 2004 amount plus 10 percent of the difference between the current baseline offset and the amount specified for the member's rating. (3) In 2006, it is the 2005 amount plus 20 percent of the difference between the offset and the 2005 amount. (4) In 2007, it is the 2006 amount plus 30 percent of the difference between the offset and the 2006 amount. (5) In 2008, it is the 2007 amount plus 40 percent of the difference between the offset and the 2007 amount. (6) In 2009, it is the 2008 amount plus 50 percent of the difference between the offset and the 2008 amount. (7) In 2010, it is the 2009 amount plus 60 percent of the difference between the offset and the 2009 amount. (8) In 2011, it is the 2010 amount plus 70 percent of the difference between the offset and the 2010 amount. (9) In 2012, it is the 2011 amount plus 80 percent of the difference between the offset and the 2011 amount. (10) In 2013, it is the 2012 amount plus 90 percent of the difference between the offset and the 2012 amount. (11) If the subsection's result is greater than the retired pay otherwise applicable, reduce it to that otherwise applicable amount. (d) Coordination with combat-related special compensation. (1) A person who is both a qualified retiree and an eligible combat-related disabled retiree under section 1413a may receive either special compensation under that section or retired pay under this section, but not both. (2) The Secretary concerned^* must provide an annual “open season” when that person may elect to switch from one benefit to the other. The election must follow the Secretary's regulations, which must state its form, method, and effective date. Regulations of a military-department Secretary require Defense Secretary approval. (e) Definitions. (1) “Retired pay” includes retainer pay, emergency officers' retirement pay, and naval pension. (2) “Veterans' disability compensation” has the meaning of “compensation” in section 101(13) of title 38; this section does not define that term. (3) “Disability rated as total” means (A) a disability or combination rated total under the Department of Veterans Affairs standard schedule, or (B) a disability or combination scheduled below total but rated total because the person cannot secure or follow substantially gainful work due to disabilities for which compensation may be paid. (4)(A) “Current baseline offset” for a qualified retiree is, for a month, the lesser of (i) applicable monthly retired pay and (ii) monthly veterans' disability compensation. (B) “Applicable retired pay” means monthly pay determined without this section or sections 5304 and 5305, except that for a chapter 61 retiree it is the pay the member would have received under another law based on service if not retired under chapter 61. This section does not otherwise define the quoted terms.