This newsletter is produced and released on a weekly basis by AFSA HQ. To read the full newsletter, as well as archived entries, visit the AFSA On Call Newsletter section of www.hqafsa.org.

LEGISLATIVE UPDATES AND NEWS

Congress in Recess

Congress remained in recess this week. The House and Senate will resume normal legislative activity on Monday, April 16.

Early Retirement Possible for Some Enlisted Airmen

The Air Force on Friday announced that a small number of active duty Staff Sergeants, Technical Sergeants and Master Sergeants in 19 over manned career fields may soon be eligible for early retirement in FY 2012 under the Temporary Early Retirement Authority (TERA).
“The application window for TERA, commonly referred to as the 15-year retirement, will be open April 10-30 in order to shape the force to meet current and future mission requirements,” said Colonel Kenneth Sersun, Chief of Military Force Policy Division. “The current voluntary and involuntary force management programs have enabled the Air Force to continue to size and shape congressionally mandated end strength levels,” said Sersun. “However, we must have the right balance of skills to meet future mission needs, so we will continually assess requirements and force management options.”

The Air Force plans to approve approximately 250 TERA applications this fiscal year and individuals selected must retire by September 1. Initially, approval for early retirement will be based on overmanned specialties, time in service of 15 to 19 years, and grade. If it becomes necessary, additional selection criteria may be considered including active duty service commitment, time in grade, and commander recommendation. Those approved will have their retired pay reduced by 1/12th of 1 percent for each full month by which the number of months of active service are less than 240 as of the date of the member’s retirement.

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LEGISLATIVE UPDATES AND NEWS

HASC Testimony

In written testimony presented to the House Armed Services, Personnel Subcommittee, AFSA and its Coalition partners express concern about current military strength levels and urge lawmakers to make certain that the drawdown does not proceed at a rate which would adversely impact the required dwell time for the troops.  The statement calls on Congress to ensure that the Services maximize the use of voluntary drawdown tools (including the temporary early retirement authority included in the FY2012 National Defense Authorization Act) before resorting to involuntary measures; sustain adequate recruiting and retention resources to enable the uniformed services to sustain their continuing needs for top-quality personnel; and most important, support a defense budget that funds both people and weapons needs.  The 37-page document also cites our opposition to any effort that would “civilianize” the military retirement system, and the BRAC-like review process proposed by the Administration for military retirement reforms.  As previously stated, a BRAC-style review of military compensation would undermine a more proper appraisal by the House and Senate Armed Services Committees.  Other sections in the Coalitions’ testimony discuss cost-of-living increases for active and retired members, Guard and Reserve compensation and educational benefit issues, family support programs, concurrent receipt, the SBP/DIC offset and a host of personnel-related issues.  The HASC has not yet posted it online, but you can view it here.

Legislation Introduced to Make VA COLAs Automatic

Current law requires automatic adjustments to Social Security and military retired pay based on a formula (CPI) that measures the rate of inflation.  However, Veterans benefits like VA disability and Dependency and Indemnity Compensation still require legislation to authorize a similar increase.  Typically the rate authorized is the same as Social Security.  In recent years, increases for Social Security and federal retired pay are known for some time before Congress acts to raise VA payments.  Last year, Social Security announced it’s COLA on October 19 but Congress didn’t agree to legislation authorizing a similar increase for VA recipients until November 2.  On March 5, Representative Jon Runyan (R-NJ) introduced H.R. 4142, the American Heroes COLA Act to make VA’s cost-of-living adjustments automatic like Social Security and military retired pay.  This bill has been referred to the Committee on Veterans’ Affairs and its passage would eliminate the period of uncertainty between the announcement of the Social Security COLA and action by Congress to raise VA’s rates.

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LEGISLATIVE UPDATES AND NEWS

AFSA on the Hill

AFSA was on Capitol Hill in force this week, relaying your concerns to Members of Congress. Included in our visits were talks with the Ranking Member of the House Armed Services Committee (HASC) and the leaders of several key HASC and Veterans’ Affairs Subcommittees. By in large, each congressional Member we visited was sympathetic to the Associations major concerns like protecting earned military and veterans benefits and repealing the SBP/DIC offset. All acknowledged the existing fiscal challenges but pledged to their best to preserve important benefits as congressional discussions on these matters move forward. One thing is clear, the military community is not happy with Administration proposals to raise annual TRICARE or alter the military retirement package and they are letting their members of Congress know how they feel. As a reminder, the AFSA Legislative Staff regularly presents Association priorities directly to Members of Congress but the real strength behind our message lies in the number of calls, letters and emails coming from members in the field. Many more visits to the Hill are scheduled and we urge you to keep your important communications coming.

House Hearing on Military Awards

On Wednesday, the House Committee on Oversight and Government Reform, National Security, Homeland Defense, and Foreign Operations Subcommittee held a hearing to discuss ways to better protect military service records and awards. Lawmakers heard testimony from several DoD offices responsible for issuing and tracking military awards and decorations, much of which focused on the capabilities of existing systems. AFSA’s Coalition partner, the VFW, and Mr. C. Douglas Sterner, Curator of the Military Times “Hall of Valor” both urged Congress to establish a national database that will be used to identify the recipients of the military’s top awards, including the Medal of Honor. The new database would serve two purposes: honor legitimate award recipients and maintain the integrity of all military awards and decorations. There has been a noticeable uptick of congressional interest on the issue of “Stolen Valor” after a pair of federals appeals courts issued entirely different opinions (1 for; 1 against) on the “Stolen Valor Act,” a 2006 law which makes it a crime to lie about receiving certain military medals. As reported last week, the issue is in the hands of the Supreme Court and they are expected to render a final decision on the matter by summer.

• Governors Speak Out Against ANG Cuts
• No More Military Base Closures
• Military Experience of Elected Officials
• American Soldier Comes Home From Iraq War
• VA, DoD Secretaries Meet

VETERANS NEWS

• Get Your Questions Answered on VA’s GI Bill Page
• 300 Vet Centers Here for Vets Who Served in Combat Zones

HEALTHCARE

• Dental Benefits for Separating Guard and Reserve Component Members

AFSA MEMBER BENEFITS

• AFSA Insurance: Life and Health
• Hyatt Hotels Discount

LEGISLATIVE UPDATES AND NEWS

Congress in Recess

Congress is in recess this week and most lawmakers are working out of their local district and State offices. Both chambers scheduled pro forma sessions (brief sessions where no business is conducted) for Tuesday and Friday this week, and plan to resume normal legislative activity at 2:00 pm on Monday, February 27.

“Doc Fix” Legislation Clears Congress

Last Friday, lawmakers approved legislation blocking a 27.4 percent cut in payments made to doctors who treat Medicare and TRICARE patients through the remainder of this year. The provision is part of a larger deal aimed at continuing a payroll tax break and extending unemployment insurance. The bill, H.R. 3530, The Middle Class Tax Relief and Job Creation Act of 2012, now awaits the President’s signature. According to a summary document from theHouse Waysand Means Committee, a number of healthcare-related cuts were used to help offset the delay in reimbursement cuts. They include:

• $11.6 billion in funding from the Patient Protection and Affordable Care Act, including $5 billion from the prevention fund
• $9.6 billion from Medicare bad debt and clinical laboratory payments
• $4.1 billion from theMedicaidDisproportionateShareHospitalpayments
• $2.5 billion in enhanced Medicaid funds earmarked forLouisiana

A permanent fix to Medicare’s sustainable-growth-rate (SGR) formula used to calculate reimbursement payments to doctors continues to elude Congress, primarily because of the costs involved. Earlier this year, the Congressional Budget Office (CBO) estimated that freezing Medicare rates for 10 years would cost $316 billion and the 10-month delay provided by H.R. 3630 is expected to add about another $25 billion to that tab. Though a permanent fix is ideal, the new temporary moratorium on cuts is welcome. It also means Congress must revisit the issue prior to January 1, 2013, at which time an even greater cut in payments is expected.

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LEGISLATIVE UPDATES AND NEWS

FY 2013 Budget Released; DoD Funding Cut As Expected

President Obama’s $3.8 trillion, FY 2013 budget proposal was delivered to Congress on Monday.  The request for the Department of Defense (DoD) includes $525.4 billion in discretionary budget authority to fund base defense programs and $88.5 billion to support Overseas Contingency Operations (OCO), primarily in Afghanistan.  The total, $613.9 billion, is about $33 billion less than the current year’s budget.  It allows a military pay raise of 1.7 percent; will increase the basic housing allowance by 4.2 percent and basic allowance for subsistence by 3.4 percent; and provide $8.5 billion for family support programs.  According to the budget documents we reviewed, increases in pays and allowances will keep pace with expected increases in private-sector compensation for the next couple of years.  But in FY 2015 and beyond, basic pay raises will be held down in an effort to slow the growth in compensation costs.

The Air Force portion is $154.3 billion, a reduction of nearly five percent as compared to the $162.5 billion the service received in FY 2012.  As previously reported the department has plans in place to eliminate nearly 300 aircraft and reduce overall personnel end strength by 9,900 Airmen in the coming years.  In addition to higher pay and allowances, the Air Force budgeted more than $700 million for family programs including child development centers, and the family housing budget was increased by $93 million to meet a service goal of 53,000 privatized housing units by the end of the next fiscal year.

Other provisions in DoD’s proposed budget will increase TRICARE premiums and fees, direct a review of military compensation and retired pay and call for more base realignment and closure rounds.  We cover them briefly below and will provide more details on these and other budget-related items in future AFSA publications. 

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