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 qualified retiree receiving veterans’ disability compensation for a disability rated as 100 percent. A qualified retiree receiving veterans’ disability compensation at the rate payable for a 100 percent disability by reason of a determination of individual unemployability. In this section, the term “qualifying service-connected disability” means a service-connected disability or combination of service-connected disabilities that is rated as not less than 50 percent disabling by the Secretary of Veterans Affairs. 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 , or at least 20 years of service computed under section 12732 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. 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 , or with less than 20 years of service computed under section 12732 of this title , at the time of the member’s retirement. For a month for which the retiree receives veterans’ disability compensation for a disability rated as total, $750. For a month for which the retiree receives veterans’ disability compensation for a disability rated as 90 percent, $500. For a month for which the retiree receives veterans’ disability compensation for a disability rated as 80 percent, $350. For a month for which the retiree receives veterans’ disability compensation for a disability rated as 70 percent, $250. For a month for which the retiree receives veterans’ disability compensation for a disability rated as 60 percent, $125. For a month for which the retiree receives veterans’ disability compensation for a disability rated as 50 percent, $100. the amount specified in paragraph (1) for that qualified retiree; and 10 percent of the difference between (i) the current baseline offset, and (ii) the amount specified in paragraph (1) for that member’s disability. the amount determined under paragraph (2) for that qualified retiree; and 20 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (2) for that qualified retiree. the amount determined under paragraph (3) for that qualified retiree; and 30 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (3) for that qualified retiree. the amount determined under paragraph (4) for that qualified retiree; and 40 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (4) for that qualified retiree. the amount determined under paragraph (5) for that qualified retiree; and 50 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (5) for that qualified retiree. the amount determined under paragraph (6) for that qualified retiree; and 60 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (6) for that qualified retiree. the amount determined under paragraph (7) for that qualified retiree; and 70 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (7) for that qualified retiree. the amount determined under paragraph (8) for that qualified retiree; and 80 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (8) for that qualified retiree. the amount determined under paragraph (9) for that qualified retiree; and 90 percent of the difference between (i) the current baseline offset, and (ii) the amount determined under paragraph (9) for that qualified retiree. Retired pay determined under this subsection for a qualified retiree, if greater than the amount of retired pay otherwise applicable to that qualified retiree, shall be reduced to the amount of retired pay otherwise applicable to that qualified retiree. A person who is a qualified retiree under this section and is also an eligible combat-related disabled uniformed services retiree under section 1413a of this title may receive special compensation in accordance with that section or retired pay in accordance with this section, but not both. The Secretary concerned shall provide for an annual period (referred to as an “open season”) during which a person described in paragraph (1) shall have the right to make an election to change from receipt of special compensation in accordance with section 1413a of this title to receipt of retired pay in accordance with this section, or the reverse, as the case may be. Any such election shall be made under regulations prescribed by the Secretary concerned. Such regulations shall provide for the form and manner for making such an election and shall provide for the date as of when such an election shall become effective. In the case of the Secretary of a military department, such regulations shall be subject to approval by the Secretary of Defense. The term “retired pay” includes retainer pay, emergency officers’ retirement pay, and naval pension. The term “veterans’ disability compensation” has the meaning given the term “compensation” in section 101(13) of title 38 . a disability, or combination of disabilities, that is rated as total under the standard schedule of rating disabilities in use by the Department of Veterans Affairs; or a disability, or combination of disabilities, for which the scheduled rating is less than total but for which a rating of total is assigned by reason of inability of the disabled person concerned to secure or follow a substantially gainful occupation as a result of disabilities for which veterans’ disability compensation may be paid. the amount of the applicable monthly retired pay of the qualified retiree for that month; and the amount of monthly veterans’ disability compensation to which the qualified retiree is entitled for that month. In subparagraph (A), the term “applicable retired pay” for a qualified retiree means the amount of monthly retired pay to which the qualified retiree is entitled, determined without regard to this section or sections 5304 and 5305 of title 38, except that in the case of such a retiree who was retired under chapter 61 of this title, such amount is 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. Subject to paragraph (2), the amendment made by subsection (a) [amending this section] shall take effect as of December 31, 2004 . Any amount payable for a period before October 1, 2008 , by reason of the amendment made by subsection (a) shall not be paid until after that date.”