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Yet Another Commission?
October 15th, 2011
Congress has a difficult task – cut spending to get our financial house in order, introduce programs and decrease regulation in the support of job creation, all while keeping an eye on the 2012 elections. Everybody in congress seems to have varying opinions about how they should move forward, except when it comes to defense spending, but both sides of the isle know defense will feel the axe – just how much and what programs.
The only thing that seems sure in the defense bill is the pay raise for 2012. No proposals have been put forward that would change the 1.6 percent that was submitted by President Obama back in February, as a matter of fact, congressional leaders have voiced their support for it when they returned from their most recent recess.
Whereas Tricare changes won’t affect those currently on active duty, Retirees might not be so lucky.
(AP)WASHINGTON — The top lawmakers on the Senate’s defense panel on Friday recommended that a special committee searching for ways to slash the deficit consider some of President Barack Obama’s proposed changes to health and retirement benefits for the military.
In separate letters to the bipartisan panel, Sen. Carl Levin, D-Mich., chairman of the Armed Services Committee, and Sen. John McCain, R-Ariz., signaled they were open to cost-saving steps in military benefits, recommendations that have already attracted fierce opposition from powerful groups of retired officers and veterans resistant to change.
The Pentagon’s health care costs have skyrocketed from $19 billion in 2001 to $53 billion, but lawmakers and various groups argue that members of the military and their families sacrifice far more than the average American, with a career that includes long and dangerous deployments overseas that overshadow civilian work. Health and retirement benefits help attract service members to the all-volunteer force.
Levin and McCain said they would support establishing an annual enrollment fee for TRICARE for Life, the health care program that has no fee for participation. Obama had proposed an initial annual fee of $200.
“This proposal would be the first such change since Congress established this program in 2001, a period during which national health care costs have risen significantly,” McCain wrote.
Levin said future increases in fees should be tied to the same index used to determine hikes in the TRICARE Prime program, which has the lowest out-of-pocked expenses.
“Whichever benchmark is ultimately agreed upon, annual fee increases for retirees over the age of 65 should be the same as annual fees for working age-retirees,” Levin wrote.
McCain also urged the so-called supercommittee to consider restricting working-age military retirees and their dependents from enrolling in TRICARE Prime, which has the lowest out-of-pocket expenses. The retirees could still enroll in other TRICARE programs. McCain pointed out that the Congressional Budget Office has estimated that such a move would save $111 billion over 10 years.
So, what does the future hold for military compensation? Yup, another commission.
Levin also backed creation of a commission, but suggested that it look at all elements of military compensation, including basic pay, allowances such as housing, incentive pay and the tax structure for military pay. He said current service members should be grandfathered in “to avoid breaking faith with the force.”
I have lost count at the number of times congress has commissioned a study to determine the best way to compensate our Servicemembers, but hey, paying for another group to sit around and produce similar rhetoric nobody will act on has its advantage – it kicks the can far enough down the road where it won’t be an issue during the 2012 elections.
Powerful, influential groups, like the VFW and the MOAA, are watching the proceedings closely.
“Some in Washington want to make those who sacrifice and serve the most, sacrifice more,” Joe Davis, a spokesman for the Veterans for the 2 million-member Veterans of Foreign Wars, said Friday. “It infuriates us when they talk about military benefit programs as entitlements. They’re something you absolutely paid for up front through your service and sacrifice to the country.”
Davis said VFW members are being urged to contact their congressmen and senators.
From Webster’s – Entitlement n. guaranteeing certain benefits to a specific group: entitlement program.
I understand the position and I agree with Joe, but a military benefit program is an entitlement. The issue is that the entitlement was bought and paid for, earned, through service as promised at enlistment or induction. Make that point very clear when you call your representative.
Lastly, a military retirement pay raise for 2012, based on CPI and not congressional action, is expected to be 3.6% – it is the such first raise since 2009. The raise should be reflected in January’s payment.
For the full CBS article, go here.
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