Fix the Retirement System
January 27th, 2012
In a couple of weeks, President Obama will be releasing his budget proposal for fiscal year 2013. The proposal is expected to announce a plan to cap the amount of raises to basic pay starting in 2015; also, as reported here on October 28, 2011, you can expect the 2013 pay raise to be based on the provision in Title 37 of the US Code – just as the recently realized 2012 pay raise.
Do we need to make adjustments to how those in the military are compensated? Maybe so, but let us do it with our eyes wide open, and let us not rewrite history in an attempt to justify any changes.
First, let’s go back to the why.
From 1982 to 2000, military pay raises were capped and did not track at all with the amount of increases in pay that our civilian counterparts enjoyed. During that period, the gap in military to civilian pay grew to as large as 13.5 percent.
Starting early in the new millennium, congress decided to close the gap by adding one-half of one percent to proposed pay increases. The practice of adding the half-percent continued until the 2011 raise which was strictly based on ECI alone. It was also during this time that studies were released which indicated (Read the rest of the article…)
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Navy SRB Guidance as of 06JAN2012
January 6th, 2012
Below is the latest Selective Re-enlistment Bonus (SRB) guidance update for FY-12. Released January 6, 2012 via NAVADMIN 013/12.
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Pay Raise Forgotten?
November 28th, 2011
For the first time in over a decade, the bill that is being considered in the Senate for the fiscal year defense authorization makes no reference to a military pay raise.
The House’s version of the National Defense Authorization Act for Fiscal Year 2012 (NDAA) sent over to the Senate, HR1540, clearly has it listed in SEC. 601(b), “Increase in Basic Pay- Effective on January 1, 2012, the rates of monthly basic pay for members of the uniformed services are increased by 1.6 percent.” But the NDAA version the Senate is currently debating, S1867, has the 1.6% pay raise omitted, erased – gone.
What gives!?
Don’t worry, the United States Code, Title 37, Chapter 19 ยง 1009 to be exact, has it covered. The Title states, (Read the rest of the article…)
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Private Sector W&S at 1.7%
October 28th, 2011
Today, the United States Employment Cost Index (ECI) was released; whereas this is a normal quarterly event, this quarter’s result is the one of most importance to the members of our military. It is the quarterly release that presidents have used to make a proposal for the military pay increases for over a decade in order to ensure our military member’s compensation keeps pace with that of the private sector. Specifically, the private industry worker’s wage and salary series of the ECI. This year’s increase is a reported, 1.7% for the 12 month period ending September 2011.
Expect President Obama to announce a military pay raise of 1.7% sometime in February 2012 as part of his budget proposal for FY-2013.
Well, that is the way in normally works, (Read the rest of the article…)
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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. (Read the rest of the article…)
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Navy SRB Guidance as of 22AUG2011
August 22nd, 2011
Below is the latest Selective Re-enlistment Bonus (SRB) guidance for the remaining portion of FY-11 and start of FY-12. Released August 22, 2011 via NAVADMIN 253/11.
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Military Retirement Under Fire
August 3rd, 2011
In 1986, the Department of Defense implemented the REDUX retirement plan for all those who joined the military after 01 August of that year. REDUX retirement provides a 2% per year for the first 20 years of service (Final Pay and High Three retirements provide 2.5%) which means if you decide to retire at 20 years of active service, you get 40% of your base pay in a monthly check for the rest of your life with a yearly adjustment (based on the CPI, same indicator used for Social Security adjustments) for cost of living. But with the REDUX retirement system, you get an increase to 3.5% for each additional year passed 20 and can get to 100% for 40 years. When REDUX was first implemented, those under the program did not have the option of choosing the High Three program like they can today.
I was a recruiter in New Jersey in 1986 when the REDUX plan was being implemented. Most applicants were oblivious to the change, as a matter of fact, most applicants didn’t know there was a retirement program of any sort, let along the details of it, but some did and the change mattered to them.
Recruiting in the mid-1980′s was about as tough as it could be. The parents of the applicants we sought were draft eligible during the Vietnam War – the last thing most wanted was to see their child join the military, but when the REDUX change was announced, Veterans were dragging (Read the rest of the article…)
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Why August 2nd?
July 11th, 2011
For the next couple of weeks, it appears the only thing our government will do is posture over how and who should be taxed, and how much and what for our tax dollars should be spent with the impeding doom of reaching the debt ceiling the catalyst for whatever change will happen.
Reaching the debt ceiling means the Treasury can no longer borrow funds to pay for appropriations set by congress. I think I read somewhere that 44% of spending would have to be stopped, immediately. Not being able to borrow more would leave only enough revenue to pay the interest on the current debt with a little left over to ensure Veteran’s, Medicare and Social Security programs continue (must keep the number one voting block in America, the Seniors, as happy as possible), but just about everything else will go unfunded, (Read the rest of the article…)
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Navy SRB Guidance as of 18May2011
May 18th, 2011
Below is the latest Selective Re-enlistment Bonus (SRB) guidance that was released May 18, 2011 via NAVADMIN 166/11. This page contains updates 1-4.
NAVADMIN 166/11 Update 1 of 4
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Child Care and DOD Education Increases For 2012
February 14th, 2011
Today, December 15, 2011, the Department of Defense released the 2012 Basic Allowance for Housing (BAH) rates, which take effect Jan. 1, 2012. Overall rates will increase an average of 2 percent this year; regrettably, the 2% average raise in BAH is over two percent less than first proposed by President Obama in his initial budget proposal for 2012.
Note for those attending school utilizing the Post 9/11 GI Bill: According to the Veteran’s Administration, if your housing rate decreased for 2012, you will continue to receive the higher 2011 rate unless you change schools or have more than a six month break in school attendance.
14 Feb 2011, President Obama released his “Budget of the United States Government, Fiscal Year 2012.” I have taken the liberty to extract the portion within the Defense budget overview that related to our members and families.
Also in the budget, it is projected that Basic Allowance for Housing (BAH) will increase an average of 4.2 percent, and Basic Allowance for Subsistence (BAS) will increase 3.4 percent.
DoD schools and child care are to receive roughly $3.6billion.
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