Vets' hopes ride on pension bill

LLou Rothenstein didn't notice at first, but as years passed, the disabled Vietnam veteran detected an unsettling trend: As his military disability benefit got bigger, his pension from 30 years in the Army got smaller in like increments.

"It was about 14 years ago that I realized how the increases in my disability were offsetting my retirement pay, and it really hit home how strikingly unfair that was," Rothenstein, 62, said. "I called my congressman (years ago), but nothing was done about it."

This Memorial Day Rothenstein says he has greater hope that something will be done -- and soon -- to correct the inequity in the system that allows other federal workers to receive both pension and disability compensation in their full amounts.

Sen. Harry Reid, D-Nev., for a year and half year has pushed his bill -- the Retired Pay Restoration Act -- to allow disabled military retirees to collect full benefits. The measure would raise the retirement pay of 560,000 retired military personnel, including 7,400 partially and totally disabled Nevadans.

"We have 60 sponsors in the Senate, and I think it will pass in June or July as part of the Defense Authorization Bill," Reid, the assistant Democratic leader, said. "When I talk about this bill to nonveterans, they just can't believe such a thing is happening to our veterans."

Meanwhile, Nevada legislation -- Senate Bill 156 -- has passed in both chambers and awaits Gov. Kenny Guinn's signature. It would double veterans' exemptions on property and vehicle-privilege taxes.

That measure would put about $72 more per year in the pockets of Nevada veterans from their property taxes or, if applied to the vehicle tax, would represent about $100 more in annual savings. It is the first such increase in 84 years.

Rothenstein, who served three tours of duty in Vietnam from 1961-70, suffers from service-connected injuries that over the years have taken him from being partially disabled to totally disabled. Among the injuries are complications from a bullet wound in his leg, a degenerative back condition, respiratory problems and hypertension.

"If this (benefits bill) passes, I will receive about $2,000 more a month -- so yes, it will be significant enough to change my life," said Rothenstein, a psychologist in a Veterans Affairs facility in Oakland, Calif., until his retirement in 1995.

"I'd buy a bigger home and otherwise invest it in the economy," Rothenstein, now a Las Vegas resident, said. "Many veterans would. And it is only fair because we veterans should be treated the same as other government employees who get both pensions and disability."

Steve Long, 57, Nevada Office of Veterans Services deputy executive director, is in the same boat as Rothenstein -- disabled and a retired Air Force pilot.

"Passage of the bill would, in effect, double my income, but I am skeptical of it getting passed," said Long, one of the "Laos Nine" who were held captive at the infamous "Hanoi Hilton" POW camp in North Vietnam at a time the American government denied involvement in Laos. "I'm keeping my powder dry on this one."

Rothenstein and Long agree that the bill's timing is good. As congressmen are returning to their home districts for the Memorial Day break, they could get an earful of reasons why Reid's bill should pass.

"Any opportunity for veterans to get the ear of a legislator is welcomed," Long said. "Veterans need to be heard, especially on this issue. Our four-member delegation has listened to us and has done excellent work for veterans, and we appreciate that."

Reid had hoped to get the bill passed before Memorial Day. In a speech on the Senate floor 100 days ago, he urged his colleagues to support the legislation. Reid also has asked President Bush to support the act and to ensure the resources are available to properly fund it.

"Given the tax and budget debate, I am gravely concerned that we will not have the resources that will be needed to properly fund this legislation and honor those who served our nation," Reid told the Senate in February.

The inequity has long existed. Shortly after the Civil War, Congress passed a law to prohibit the concurrent receipt of military retirement pay and veterans' disability compensation. Ironically, disabled veterans who take civil service jobs have been able to receive disability benefits and full retirement benefits concurrently, while those who continue to serve in the military have not.

Reid's bill would benefit all disabled veterans with 20 or more years of service and those who served 15 to 19 years and were asked to take advantage of early retirement at the end of the Cold War.

Ed Gobel, a local vocal advocate of veterans rights, said the compensation bill and the property tax exemption are the two most important money issues that Nevada veterans talk about.

"(The Nevada bill) got through the Senate taxation committee for the first time in 48 years -- and that shows how this measure is long overdue," said Gobel, Council of Nevada Veterans Organizations president and head of the Lowden Veterans Center and Museum in Las Vegas.

"(Seventy-two dollars) may not seem like a lot of money, but a number of veterans are on fixed incomes, and every little thing that reduces what has to be paid out of pocket helps a little."

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