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More Equal Than Others
By Thomas D. Segel
April 4, 2005

Many will recall, from their days in the classroom, reading George Orwell's "Animal Farm". It is a classic tale of societal attitudes and can be strongly applied to a political "Animal Farm" called Washington D.C. There is no other place in America where the famed Orwell quote can be better utilized. "All animals are equal but some animals are more equal than others."

To better understand what is being implied by this statement, you must first know that when the National Defense Authorization Act for FY 2005 was passed into law, retired military personnel rated as 100% disabled became entitled to receive their full military retirement pay and their complete Department of Veterans Affairs (VA) disability compensation.

For more than 100 years retired military personnel with service-connected disabilities paid for their own compensation. Though they rated retired pay for more than 20 years of active service, these disabled veterans were still penalized by deducting one dollar of retirement money from each dollar of disability payment they received. Military personnel were the only government retirees so penalized.

In 2004 those retired service men and women with more than 50% disability had their retirement money reinstated by Congress. However, they were to receive it by phasing in "Concurrent Receipt" over a ten-year period.

Since many of these disabled veterans were of World War II and Korean War vintage...and were dying at an alarming rate, it became clear that the intent of the law was to delay payment until only a few remained alive to collect the benefits.

Enough noise was made on this point to bring about additional legislation at the end of 2004. The new legislation grants those retired disabled military personnel who are rated as 100% to now receive their full retirement and their VA disability compensation without phase-in... and without any penalty or dollar per dollar offset.

It is at this point where the Animal Farm clan in Washington decided to apply the ..."some are more equal than others" logic. Though the law does not make any distinction between the 100% disability rated veterans, Game Players at the Pentagon have come up with a way.

It must be noted there are really two types of disability classifications. The first is based on a "rating schedule". This is a guide in the evaluation of disability resulting from all types of diseases and injuries encountered as a result of or incident to military service. The percentage ratings represent as far as can be practically determined the average impairment in earning capacity. An individual given 100% by this method is said to have a scheduled disability rating.

The second type of disability in the 100% category is granted to one, which the VA has determined is individually unemployable (IU). Those 100% disabled retirees with an IU designation are compensated at the same level as those who are granted a 100% scheduled disability rating. New legislation granting immediate full payment of both retired pay and disability compensation makes no distinction between the two types of 100% or total disabilities. The only true distinction is...there is no prohibition against a disabled veteran with a scheduled rating of 100% disability holding down a job, if he or she can find gainful employment. The IU or person with individual unemployability is truly unable to work.

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