H.R. 333 — Disabled Veterans Tax Termination Act

This section expands eligibility for concurrent receipt of military retired pay and Department of Veterans Affairs (VA) disability compensation under the Concurrent Retirement and Disability Pay (CRDP) program (10 USC 1414) by (1) including retirees with any service-connected disability (from previously limited to disabilities rated 50% or higher); and (2) including chapter 61 disability retirees with fewer than 20 years of creditable service, whose retired pay remains subject to offset under 38 USC 5304 and 5305 only by the amount exceeding 2.5% of their years of creditable service multiplied by their retired pay base (previously, such retirees were fully excluded from concurrent receipt). The section further eliminates the CRDP phase-in provisions (which ended December 31, 2013), makes conforming and clerical amendments to section headings and cross-references, and applies these changes to payments for months beginning on the first day of the first month after enactment. (Thus, all military retirees receiving VA disability compensation for a service-connected disability—regardless of rating or years of service—may now receive both payments without full offset, subject to the longevity floor for certain chapter 61 retirees.)