[Decision Concerning Reduction of Retired Marine Corps Member's Pay]

The Marine Corps requested a decision concerning whether it should base its reduction of a retired member's military retired pay on the full amount of his veterans disability compensation or the lesser amount that he actually received because of his civil service disability compensation. GAO held that: (1) military retirees must waive their retired pay in an amount equal to any veterans disability compensation they receive; and (2) there was no basis for requiring a waiver of military retired pay in excess of the amount the Veterans Administration determined would duplicate the civil service disability compensation. Accordingly, the Marine Corps should base the pay reduction on the rate of veterans disability compensation actually paid.