| Issue 1 |
Concurrent Receipt Votes Next Week?
Senate leaders now plan to begin action on the FY2007 Defense Authorization Bill next week, including two concurrent receipt amendments sponsored by Sen. Harry Reid (D-NV). Your help is needed to urge your senators to vote for these key amendments. |
| Issue 2 |
MOAA Meets with House Leaders.
Yesterday, representatives from MOAA and other military and veterans associations met with House Majority Leader John Boehner (R-OH) and Veterans Affairs Committee Chairman Steve Buyer (R-IN) to discuss legislative priorities and ways to address the theft of veterans' personal data from the VA. |
| Issue 3 |
DACMC Publishes Military Retirement Recommendations.
The Defense Advisory Commission on Military Compensation has published its final report, including recommendations for early vesting of military retirement, implementation of a contributory plan, and delay of retired pay eligibility until age 60, among other things. |
Issue 1 Concurrent Receipt Votes Next Week?
In a striking reversal from last year's delays -- and contrary to speculation in recent weeks that it could be delayed again -- Senate leaders now plan prompt action on the FY2007 Defense Authorization Bill (S. 2766). Debate is scheduled to begin Monday, June 12, with votes on amendments following through the rest of the week, and maybe longer.
MOAA is gratified to see Senate leaders of both parties cooperating to ensure timely action on a bill the troops need. Last year, the Senate didn't get serious on the defense bill until November, and it wasn't passed until almost three months into the fiscal year - a sorry state of affairs in wartime.
We expect the Senate to consider a number of amendments on issues of importance to MOAA members. Key among these will be two amendments sponsored by Sen. Harry Reid (D-NV).
The first Reid amendment would authorize combat-related special compensation for disabled members whose combat wounds forced them into medical retirement before attaining 20 years of service. Under current law, a 10% combat-disabled retiree with 20 years of service can receive combat disability compensation in addition to retired pay, but a 100% disabled member forced out of service by combat wounds at 19 years, 11 months has his full VA disability compensation deducted from his earned, service-based retired pay. MOAA believes strongly that combat-disabled servicemembers whose wounds force them from service should be "vested" in their service-earned retired pay (2.5% of pay times years of service).
The other amendment would end the "disabled veterans tax" on military retirees deemed "unemployable" by the VA. These members are certified as being unable to work because of their service-related disabilities and compensated by the VA at the 100% disabled rate. But unlike all other 100% disabled retirees, they still have a large share of their VA disability compensation deducted from their service-earned retired pay. Last year, Congress agreed to end this unfair practice - but not until 2009. Fair is fair. They deserve their full earned retired pay now.
Visit MOAA's website to send your senators a message urging them to vote for the Reid amendments.
In addition, we're working with two other senators on amendments affecting Guard/Reserve retirement and education benefits.
Sen. Saxby Chambliss' (R-GA) amendment would reduce the Reserve retirement age (age 60) by three months for each 90 days a member has been mobilized since the start of the current war in Afghanistan/Iraq. This is proper recognition that the extensive and repeated mobilization of our Guard and Reserve forces is hurting their civilian careers and ability to build a civilian retirement. This small accommodation is the minimum we can do for those who are bearing such a disproportional share of wartime sacrifice.
Sen. Blanche Lincoln's (D-AR) amendment would let Guard and Reserve members use their GI Bill educational benefits after they complete their service and separate. Current law (which never envisioned the extent of active duty service being required of today's Guard/Reserve forces), terminates their GI Bill benefits if they leave Guard/Reserve service. So their ability to use the benefits while serving is curtailed because of repeated deployments, and denied entirely once they finish their service. This is grossly unfair treatment for members who have seen more combat than most GI Bill-eligible veterans in previous years. They've earned an unqualified education benefit through service and sacrifice.
Visit MOAA's website to urge your senators to vote for the Chambliss and Lincoln amendments.
Issue 2 MOAA Meets with House Leaders.
MOAA's Col. Steve Strobridge (USAF-Ret) and COL Bob Norton (USA-Ret) joined representatives of several other associations at a June 8 meeting with House Majority Leader John Boehner (R-OH) and Veterans Affairs Committee Chairman Steve Buyer (R-IN).
This was Boehner's first meeting with military and veterans association leaders since his recent election as Majority Leader. Boehner promised to be up front and honest with the military and veterans community. "What you see with me is what you get," he said. "I believe in working together with all parties to get things done...I support improving benefits for those who served. But we can't do everything for everybody."
Boehner and Buyer assured the group that they intend to take legislative action to protect military members and veterans whose personal data was stolen recently from the home of a VA employee. One option Buyer discussed was the creation of a claims adjudication process within the VA to provide an avenue to compensate members who actually suffer identity theft damages without having to go through the courts.
In discussions of priorities, Strobridge summarized MOAA's goals for health care, disabled retirees and survivors, and expressed particular concern about size of the defense budget and the current situation - even in wartime - where defense leaders are pushing to cut spending on military people programs (e.g., force levels and health care) to fund weapons programs. Buyer added comments on his efforts to ensure that TRICARE For Life funding wouldn't have to compete with other programs in the defense budget. Boehner said he thinks "the defense budget is big enough, but we need to spend that money smarter."
Issue 3 DACMC Publishes Military Retirement Recommendations
The Defense Department announced this week the release of the Defense Advisory Committee on Military Compensation (DACMC) final report, "Completing the Transition to an All-Volunteer Force."
The DACMC, chartered in March 2005, was tasked to review the current military pay and benefits structure and identify ways to better sustain recruitment and retention of a high-quality, cost-effective, and ready military force.
The DACMC report describes the existing military compensation system as "outdated and inflexible" and says its recommendations would "complete the transition to the volunteer era and could result in greater flexibility for force managers, providing a more effective and efficient force."
MOAA believes some of the DACMC recommendations make good sense, including consolidating and simplifying special and incentive pays and offering Guard and Reserve members subsidies to help maintain civilian insurance coverage for their families when they're mobilized
But we have reservations about the potential consequences of implementing civilian-style changes to the military retirement system such as:
- Providing earlier vesting for military retirement at 10 years of service;
- Implementing a "401(k)-like" contributory plan; and
- Delaying retirement annuity that begins at age 60.
DACMC members emphasize that their retirement proposals would only apply to new service entrants, not to anyone currently serving or already retired. But less significant changes enacted two decades ago for post-1986 entrants had to be repealed in 1999 because they were hurting retention.
Pentagon officials emphasize that the Defense Department has taken no position on these proposals, and that they will be turned over to the 10th Quadrennial Review of Military Compensation (QRMC) for further study.
But we expect to hear lots more on the issue in the year ahead.
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