Disabled Veteran 'Lost' $158,000 as Change to Benefits Stalls in Congress

A disabled veteran said he lost more than $150,000 over nearly two decades because of how the federal government calculates retirement benefits, as legislation to address the issue stalls in Congress.

Last June, the Major Richard Star Act, which was introduced by Senator Jon Tester, a Montana Democrat who chairs the Senate Veterans' Affairs Committee, advanced out of the House Armed Service Committee. But no congressional action has been taken since.

The bill would help nearly 50,000 veterans by allowing those with a combat-related disability who served fewer than 20 years to receive both retirement pay and disability compensation without any reductions.

Currently, for veterans to get their full retirement pay and full disability benefits without any reductions, they must have 20 or more years of service and a Veterans Affairs disability rating of 50 percent or more. A disability rating is given based on the severity of the service-related conditions.

A U.S. Department of Defense spokesperson further explained in an email to Newsweek on Friday: "A veteran who retires from the military with at least 20 years of service [including disability retirees] but whose VA disability rating is 40 percent or less or veterans who are retired under the disability retirement system with fewer than 20 years of service will have their retired pay offset dollar-for-dollar by the amount of VA disability compensation they receive.

"However, the amount offset [up to the amount computed based on their years of service] may be eligible to be restored to the extent that the VA service-connected disabilities are the result of combat-related injuries."

Navy veteran Bob Carey, the executive director of the National Defense Committee, a military personnel and veterans' advocacy organization, said that given how the law works now, he loses out on $723 a month.

"I've had my disability rating since 2005. So that's $158,000 I've lost over the years because the federal government says, 'You don't need all that money,'" he said, according to the Military Times website. "And we're the only federal employees who have our retirement reduced that way."

The bill, which was named after an Army veteran who died from lung cancer in 2021, has been stalled because of concerns over government spending and just simple inaction in Congress. The Congressional Budget Office estimated that the bill could cost $9.75 billion in mandatory spending over the next decade.

However, Lieutenant Colonel Mark Belinsky, USA (Ret.), who is director of government relations for currently serving and retired affairs for the Military Officers Association of America (MOAA), said that the Military Service Organizations (MSO) and Veterans Service Organizations (VSO) communities disagree with this figure and that the communities "believe the real cost is less than half."

Advocates of the bill, however, have remained hopeful, gathering at a rally outside the U.S. Capitol on Tuesday to show their support for the legislation.

"This is long past time," Tester told the crowd. "We need to make sure leadership puts this on the floor."

Tester told Newsweek on Thursday: "I was proud to help draft this legislation with Major Richard Star before he lost his battle to cancer, and I won't stop fighting like hell on his behalf until we get it over the finish line to finally fix this injustice facing our combat-injured veterans."

The senator previously said in a press release that the current law regarding veterans' benefits, is "flat wrong."

Tonya Star, the wife of the late Richard Star, thanked people for their support, saying at the rally's news conference: "By far, Richard's greatest goal was to pass this. These men and women, who earned their retirements the hard way, and Richard made myself, along with many of you, promise that we would not stop until we get this done."

Senator Mike Crapo, an Idaho Republican who co-sponsored the bill, said at the rally: "The Major Richard Star Act would correct a severe injustice by providing combat-wounded veterans with less than 20 years of service both their disability compensation and retirement pay without reduction."

"We're not going to rest until we pass the Richard Star Act," Representative Gus Bilirakis, a Florida Republican and House sponsor of the bill, said at the rally. "This is a righteous cause."

Jack Du Teil, president of the Military Coalition (TMC), told Newsweek: "The Major Richard Star Act will support our combat-injured and is a national, moral imperative. This continues to be the number one priority across our military community."

He said the TMC's 35 organizations represent more than 5.5 million service members, veterans and their families. "More than two-thirds of Congress support H.R.1282/S.344 for good reason. Our wounded warriors earned every penny of their [Defense Department] retirement pay in the crucible of battle.

"Docking this pay is as unconscionable as it is foolhardy, particularly in light of our current recruiting crisis," Du Teil continued. "They fought for us, and it is time for Congress to authorize this legislation in the 2025 National Defense Authorization Act, thereby earning back trust."

The bill has over 70 co-sponsors in the Senate and more than 320 co-sponsors in the House. Supporters of the legislation hope to have it included in the National Defense Authorization Act for the 2025 fiscal year. The NDAA is an annual bill that allocates funds to the Department of Defense.

Bilirakis told Newsweek on Thursday: "With overwhelming bipartisan support in both chambers, we are pushing for a vote on this important legislation. These heroes have waited long enough for this injustice to be rectified. I call on both the House and Senate leadership to include the bill in the FY25 NDAA."

Brian Kelly, the MOAA president and CEO, told Newsweek on Friday: "Reducing [Defense Department] retirement pay due to a combat injury for the group of veterans that should be the most protected breaks faith with those who serve and will serve in the future. Concerns over injury [are] a significant barrier to recommending service for parents and influencers."

He said the Major Richard Star Act has broad bipartisan support and is critical to addressing the nation's recruiting challenge.

"This year, leaders in Congress can authorize the Star Act in the National Defense Authorization Act and work to restore confidence in national service," Kelly said. "There is no shortcut for the all-volunteer force when it comes to taking care of our most precious resource, our people. "

Newsweek reached out to Crapo's office via email for comment.

Update 3/22/24, 12:54 p.m. ET: This story has been updated with comment from the U.S. Department of Defense.