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For most Americans, the idea that a veteran who was medically retired due to combat injuries would have their military retirement pay reduced because they also receive VA disability compensation sounds absurd. Yet that is exactly what happens to approximately 54,000 combat-injured veterans every month under current law. These are service members who were forced to medically retire before reaching 20 years of service, often because of injuries sustained in combat. They receive military retirement pay for their years of service and VA disability compensation for their injuries, but current law requires that their retirement pay be reduced dollar-for-dollar by the amount of their VA disability payment. The Major Richard Star Act is the legislative effort to correct this inequity.
To understand why this gap exists, you need to understand how concurrent receipt works. Before 2004, all military retirees who also received VA disability compensation had their retirement pay offset. Congress addressed this by creating two programs: Concurrent Retirement and Disability Pay (CRDP) for retirees with 20 or more years of service and a VA disability rating of 50 percent or higher, and Combat-Related Special Compensation (CRSC) for retirees with combat-related disabilities. However, neither program covers Chapter 61 medical retirees who served fewer than 20 years. These veterans fell through the cracks, and they have remained there for over two decades.
Chapter 61 medical retirees are service members who were retired from the military due to a medical condition that rendered them unfit for continued service. Under 10 U.S.C. Chapter 61, if a service member is found unfit by a Physical Evaluation Board and has fewer than 20 years of service, they receive a disability retirement. The retirement pay is calculated based on their years of service and disability percentage. However, because they did not complete 20 years, they are excluded from CRDP eligibility. This means their retirement pay is still subject to the VA disability offset that was eliminated for longer-serving retirees.
The Major Richard Star Act is named after Army Reserve Major Richard A. Star, a decorated combat veteran from prior service as an enlisted soldier who was diagnosed with inoperable lung cancer linked to toxic exposure from burn pits during his deployments. Major Star advocated passionately for ending the concurrent receipt gap, speaking before Congress and rallying fellow veterans to the cause. He passed away on February 14, 2021, from his cancer. His legacy lives on through this legislation, which would finally extend concurrent receipt protections to veterans like him who gave their health in service to the nation.
The scope of the problem is significant. Roughly 54,000 veterans are directly affected by this offset. Many of these veterans were severely wounded in combat. Some lost limbs, sustained traumatic brain injuries, or developed debilitating conditions from toxic exposures. They were medically separated precisely because their injuries were too severe to continue serving. The offset means that for many of them, their VA disability payment effectively replaces their retirement pay rather than supplementing it. A veteran receiving $2,000 per month in military retirement pay and $2,000 per month in VA disability compensation does not receive $4,000. They receive $2,000, because the VA payment offsets the retirement pay entirely.
Congressional support for the Star Act has been overwhelming. In the current session, the bill has garnered 313 cosponsors in the House of Representatives and 77 cosponsors in the Senate, making it one of the most broadly supported veterans bills in Congress. Despite this near-universal backing, the bill has repeatedly been blocked from advancing through the Senate. Procedural objections, primarily focused on the $11 billion price tag over 10 years, have prevented it from reaching a floor vote. Critics argue that the cost must be offset by cuts elsewhere, while proponents counter that the nation has an obligation to fully compensate veterans who were injured in its service.
The $11 billion cost estimate comes from the Congressional Budget Office. Spread over 10 years, this amounts to roughly $1.1 billion per year to ensure that 54,000 combat-injured veterans receive both the retirement pay they earned through their service and the disability compensation they are owed for their injuries. Supporters of the bill note that this represents a fraction of the overall defense and veterans affairs budget and argue that the moral obligation to these veterans should take precedence over budget scoring concerns.
For veterans who are currently affected by this offset, the financial impact is real and often severe. Many Chapter 61 retirees were injured early in their careers and receive relatively modest retirement pay based on a small number of years served. When that modest pay is further reduced by the VA offset, some veterans are left with significantly less income than their peers who either completed 20 years or who were never medically retired. This disparity can create genuine financial hardship, particularly for veterans dealing with the ongoing costs of managing severe disabilities.
It is important to understand the difference between CRDP, CRSC, and what the Star Act would provide. CRDP allows military retirees with 20 or more years of service and a VA disability rating of 50 percent or higher to receive both their full retirement pay and their VA disability compensation. CRSC allows military retirees (regardless of years of service, but they must be eligible for retired pay) to receive tax-free compensation for the portion of their disability that is combat-related, without offset. However, CRSC has its own limitations and does not fully close the gap for all Chapter 61 retirees. The Star Act would specifically address the veterans who are excluded from CRDP because they served fewer than 20 years.
Veterans who believe they are affected by the concurrent receipt offset should verify their status. If you were medically retired under Chapter 61 with fewer than 20 years of service and you receive both military retirement pay and VA disability compensation, check your pay statements. If your retirement pay is being reduced by the amount of your VA disability, you are experiencing the offset that the Star Act would eliminate. Understanding your own situation is the first step toward effective advocacy.
The most impactful action veterans can take right now is to contact their elected officials. While the House has demonstrated overwhelming support, the Senate remains the bottleneck. Veterans should call or write their senators and urge them to support bringing the Star Act to a floor vote. Personal stories from affected veterans carry significant weight in congressional offices. Organizations like the Military Officers Association of America (MOAA), the National Military Family Association, and numerous VSOs are actively lobbying for the bill and can provide resources for grassroots advocacy.
Disclaimer: This article is for educational and informational purposes only. It does not constitute legal, medical, or VA claims advice. VA regulations, fee structures, and enforcement actions are subject to change. Always verify current requirements at VA.gov or consult with an accredited VSO, attorney, or claims agent before making decisions about your benefits.
Written by Claim Recon Editorial