Disabled Veterans Tax Termination Act

This bill amends U.S. Code to allow military retirees with service-connected disabilities rated below 50% to receive both full retired pay and veterans’ disability compensation without pay reduction, regardless of their years of service. It specifically removes the previous requirement that disability retirees must have at least 20 years of service to qualify for concurrent receipt. The key provision adjusts the calculation method for reducing retired pay, ensuring those with fewer than 20 years of service can retain full retired pay when combined with disability compensation. This directly affects military retirees with service-connected disabilities under 50% disability rating who previously faced reduced retired pay. The bill takes effect after enactment, applying to payments for months beginning on or after the effective date.