December 23, 2013
year budget deal recently approved by Congress will reduce working age
retirees’ annual cost-of-living adjustment (COLA) by one percentage point until
they reach the age of 62.
provision disproportionately punishes current and future military retirees by
failing to grandfather existing retirees and currently serving members who plan
to serve a 20-plus year career.
who retire at the 20 year point will feel the full negative financial impact of
the provision by experiencing a near 20 percent reduction in their retired pay
by the time they reach age 62.
example, an E-7 retiring this year with 20 years of service would see an
average loss of over $3,700 per year by the time he/she reaches age 62 –
overall impact: $83,000 loss by age 62.
though the bill includes a COLA “catch-up” clause at age 62 that recalculates
the follow-on retiree’s annual pay base, the financial loss of the years
between retirement and age 62 are permanently lost.
to the fast-track nature of this bill it's imperative that we let our
legislators know how this provision breaks faith with retirees and the
currently serving, and its potentially devastating impact on retention.
are home for holiday recess and will be in their states/districts meeting with
constituents. This is a great opportunity for you to visit your legislators'
local offices and advise them of your and MOAA's concerns on these matters.
assist you in preparing for these meetings, we’ve developed fact sheets and
talking points on issue above.
don’t feel like you have to be an expert on the issue. That’s why we designed
the package as we have – to include a one-page fact sheet on the issue
that you can print and leave with the legislators and/or their staffs.
One of the reasons MOAA has been successful on Capitol Hill is that we have
members who are willing to contact their legislators and express their views on
issues that are important to them. Leaders who can say “We represent _____ MOAA
members in our state” help convey that they’re speaking for a substantial group
And the grassroots support of our Council and Chapter leaders has never been as
important as it is now.
You can locate legislators’