SEC. 203. FULL PAYMENT OF BOTH RETIRED PAY AND COMPENSATION TO DISABLED
MILITARY RETIREES.
(a) RESTORATION OF FULL RETIRED PAY BENEFITS- Section 1414 of title 10,
United States Code, is amended to read as follows:
`Sec. 1414. Members eligible for retired pay
who are also eligible for veterans' disability compensation: payment of
retired pay and veterans' disability compensation
`(a) PAYMENT OF BOTH RETIRED PAY AND COMPENSATION- Except as provided in
subsection (b), a member or former member of the uniformed services who
is entitled to retired pay (other than as specified in subsection (c))
and who is also entitled to veterans' disability compensation
is entitled to be paid both without regard to
sections 5304 and 5305 of title 38.
`(b) Special Rule for Chapter 61 Career Retirees- The retired pay of a
member retired under chapter 61 of this title with 20 years or more of
service otherwise creditable under section 1405 of this title at the
time of the member's retirement is subject to reduction under sections
5304 and 5305 of title 38, but only to the extent that the amount of the
member's retired pay under chapter 61 of this title exceeds the amount
of retired pay to which the member would have been entitled under any
other provision of law based upon the member's service in the uniformed
services if the member had not been retired under chapter 61 of this
title.
`(c) EXCEPTION- Subsection (a) does not apply to a member retired under
chapter 61 of this title with less than 20 years of service otherwise
creditable under section 1405 of this title at the time of the member's
retirement.
`(d) DEFINITIONS- In this section:
`(1) The term `retired pay' includes retainer pay, emergency
officers' retirement pay, and naval pension.
`(2) The term `veterans' disability compensation' has the meaning
given the term `compensation' in section 101(13) of title 38.'.
(b) REPEAL OF COMBAT-RELATED SPECIAL COMPENSATION PROGRAM- Section 1413a
of such title is repealed.
(c) CLERICAL AMENDMENT- The table of sections at the beginning of
chapter 71 of such title is amended by striking the items relating to
sections 1413a and 1414 and inserting the following:
`1414. Members eligible for retired pay who are also eligible for
veterans' disability compensation: payment of retired pay and
veterans' disability compensation.'.
SEC. 204. EFFECTIVE DATE; PROHIBITION ON RETROACTIVE BENEFITS.
(a) IN GENERAL- The amendments made by section 202 shall take effect
on--
(1) the first day of the first month that begins after the date of
the enactment of this Act; or
(2) the first day of the fiscal year that begins in the calendar
year in which this Act is enacted, if later than the date specified
in paragraph (1).