Question: is the concept of disability pay one of reward and/or "apology" pay for the unfortunate outcomes of war? If so, it seems to me that a veteran should be entitled to both the disability and the pension, as each is a separate covenant.
BUT...if the concept of disability pay is one of just compensation in lieu of the regular compensation one may receive over the course of a career, I've changed my mind. In that case, it would appear to be double-dipping. One does not continue to receive their salary when they begin to draw a pension.
So, there's my question: What is the rationale behind paying vets disability?
Your first concept is the correct one. We pay vets disability above and beyond the pension they have received for their life of service to the country, to compensate them for the injuries received in service. As it is right now, if a disabled Vet receives $200 a month for therapy due to having his legs blown off, see that additional money deducted from his retirement pay.
In any case, EVERY single other federal agency allows concurrent receipt. Military vets are the ONLY ones who are enduring this unjust system.