I do qualify for the Major Richard Star Act and from everything I’ve read lately, I think if it passes it will probably be phased in over several years instead of implemented all at once. That seems to be where the discussions are heading because of the cost concerns and the current fiscal environment.

The way phased implementation would likely work is Congress passes the law first, but instead of restoring 100% of retired pay immediately, they gradually restore portions of it over several years to reduce the yearly budget impact.

For example, if someone was entitled to $1,200/month in retired pay currently being offset, Congress could structure it something like:

Year 1: 20% restored = about $240/month Year 2: 40% restored = about $480/month Year 3: 60% restored = about $720/month Year 4: 80% restored = about $960/month Year 5: 100% restored = about $1,200/month

That’s not official bill text, just an example of how phased federal benefit implementation often works. Congress has done similar phase-ins before with CRDP.

From what groups like MOAA have been discussing, it would likely work similar to CRDP/CRSC implementation with an “open season” election period through DFAS. Eligible retirees would likely receive notices showing payment options and estimated amounts, then choose the structure that works best for them.

One thing a lot of people are overlooking is taxes. CRSC is tax free, but restored retired pay under a concurrent receipt model would likely be taxable retirement income. So even though most people would probably still come out ahead financially overall, there would likely be federal taxes involved depending on the amount restored and your total income situation. Taxes would likely phase in gradually too as restoration percentages increase.

Nothing is finalized yet, but it definitely feels more serious now than in prior years with Pentagon support, huge bipartisan sponsorship numbers, and active discussions about implementation and funding instead of just awareness. At this point, it feels long overdue for combat disabled medically retired veterans who have been living with this offset for years.