,i #aafth ,,congress #b;d ,session ,h4 ,r4 #fjbg ,,in ,,the ,,house ,,of ,,representatives ,february #bh1 #bjbj,mr4 ,gallego 7for himself1 ,mr4 ,de,saulnier1 ,mr4 ,thompson of ,california1 and ,ms4 ,jackson ,lee7 introduced the following bill2 which was referred to the ,committee on ,armed ,services1 and in addition to the ,committee on ,veterans' ,affairs1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend title #aj1 ,united ,states ,code1 to eliminate the recoupment of separation pay1 special separation benefits1 and voluntary separation incentive payments from members of the ,armed ,forces who subsequently receive disability compensation under laws administered by the ,department of ,veterans ,affairs and to impose limitations on the authority of the ,secretary of ,defense to recoup such pay from members who subsequently receive military retired or retainer pay4 #a4 ,short title ,this ,act may be cited as the ,restore ,veterans' ,compensation ,act of #bjbj4 #b4 ,recoupment of separation pay1 special separation benefits1 voluntary separation incentive1 and voluntary separation pay and benefits from members of the ,armed ,forces 7a7 ,separation pay upon involuntary discharge or release from active duty and special separation benefits 7#a7 ,elimination of recoupment from members receiving veterans disability compensation ,paragraph 7#b7 of section #aagd7;h7 of title #aj1 ,united ,states ,code1 is amended to read as follows3 7#b7 7,a7 ,a member who has received separation pay under this section1 or severance pay or readjustment pay under any other provision of law1 based on service in the armed forces shall not be deprived1 by reason of the receipt of such separation pay1 severance pay1 or readjustment pay1 of any disability compensation to which the member is entitled under the laws administered by the ,department of ,veterans ,affairs4 7,b7 ,the amount of disability compensation to which a member may be entitled under the laws administered by the ,department of ,veterans ,affairs may not be reduced on account of the receipt of separation pay1 severance pay1 or readjustment pay4 4 7#b7 ,recoupment from members receiving retired or retainer pay limited to net amount of separation pay ,section #aagd7;h77#a7 of title #aj1 ,united ,states ,code1 is amended by inserting before the period at the end the following3 1 less the amount of ,federal income tax withheld from the separation pay1 severance pay1 or readjustment pay 7such withholding being at the flat withholding rate for ,federal income tax withholding1 as in effect pursuant to regulations prescribed under chapter #bd of the ,internal ,revenue ,code of #aihf74 7#c7 ,percentage limitations on recoupment from members receiving retired or retainer pay and recoupment process ,section #aagd7;h77#a7 of title #aj1 ,united ,states ,code1 as amended by paragraph 7#b71 is further amended-- 7,a7 by inserting 7,a7 after 7#a72 7,b7 by striking shall specify1 taking into account the financial ability of the member to pay and avoiding the imposition of undue financial hardship on the member and member's dependents1 and inserting 7subject to subparagraph 7,b77 shall specify2 and 7,c7 by adding at the end the following new subparagraphs3 7,b7 ,the amount deducted under subparagraph 7,a7 from a payment of retired or retainer pay may not exceed #be percent of the amount of the member's retired or retainer pay for that month unless the member requests deductions at an accelerated rate4 ,the ,secretary of ,defense shall consult with the member regarding the repayment rate to be imposed1 taking into account the financial ability of the member to pay and avoiding the imposition of an undue hardship on the member and the member's dependents4 7,c7 ,the deduction of amounts from the retired or retainer pay of a member under this paragraph may not commence until the date that is #ij days after the date on which the ,secretary of ,defense notifies the member of the deduction of such amounts under this paragraph4 ,any notice under this subparagraph shall be designed to provide clear and comprehensive information on the deduction of amounts under this paragraph1 including information on the determination of the amount and period of installments under this paragraph4 7,d7 ,the ,secretary of ,defense may waive the deduction of amounts from the retired or retainer pay of a member under this paragraph if the ,secretary determines that deduction of such amounts would result in a financial hardship for the member4 4 7b7 ,conforming amendments 7#a7 ,voluntary separation incentive ,section #aage7;e7 of title #aj1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#c77;,a7-- 7i7 by striking the first sentence and inserting the following new sentence3 ,subsection 7h7 of section #aagd of this title shall apply to any member who has received the voluntary separation incentive and who later qualifies for retired or retainer pay under this title or for disability compensation under the laws administered by the ,department of ,veterans ,affairs42 and 7ii7 in the second sentence1 by striking the deduction required under the preceding sentence and inserting the deduction from the member's retired or retainer pay2 and 7,b7 by striking paragraph 7#d7 and redesignating paragraph 7#e7 as paragraph 7#d74 7#b7 ,voluntary separation pay and benefits ,subsection 7h7 of section #aage;a of title #aj1 ,united ,states ,code1 is amended to read as follows3 7h7 ,coordination ,with ,retired or ,retainer ,pay and ,disability ,compensation 7#a7 ,subsection 7h7 of section #aagd of this title shall apply to any member who receives voluntary separation pay under this section and who later qualifies for retired or retainer pay under this title or title #ad or for disability compensation under the laws administered by the ,department of ,veterans ,affairs4 7#b7 ,no deduction shall be made from the disability compensation paid to an eligible disabled uniformed services retiree under section #adac1 or to an eligible combat-related disabled uniformed services retiree under section #adac;a of this title1 who is paid voluntary separation pay under this section4 7#c7 ,the requirement under this subsection to repay voluntary separation pay following retirement from the armed forces does not apply to a member who was eligible to retire at the time the member applied and was accepted for voluntary separation pay and benefits under this section4 4 7c7 ,effective date and application of amendments ,the amendments made by this section shall take effect on the first day of the first month beginning on or after the date of the enactment of this ,act4 ,in the case of deductions to be made from the retired or retainer pay of members of the uniformed services1 the amendments shall apply to that month and subsequent months4