This is of great importance to Retired Disabled Vets.
In example: If I receive $1,000 per month in retired pay and say I have $300 per month in disability, they reduced my retired pay down to $700 per month if I get the VA disability. Neither has anything to do with the other.
I am currently retired and draw about $334 per month in disability. They take that out of my retired pay and reduce it by that amount. Basically, what we save is the taxes due on $334 each month, which I think works out to about #20 bucks. So, I actually get $20 in disability, not the $334. Retired military are the only ones who get hit with this. If say you were in the military for 3 years, had a disability, were drawing the same $334 I am, went to work for the government for 25 years, retired, earned and started receiving a pension, then you would get your full pension and the full VA disability. Only military retirees get screwed. If this holds up, it will be a huge win for military retirees who are also drawing a VA disability.