October 25, 2011 (Top Senate Armed Services Committee leaders support annual enrollment fee for TFL.  2013 military pay raise to be determined later this week.  The potential impact of changing the current military retirement system to a 401-k-like system.  Bulletin below courtesy of Div 12 Trustee, CMSgt [Ret] Jim Lokovic);

1.  Key Senators Back $200 Annual TFL Enrollment Fee.  An article by journalist Tom Philpott as reported in the Colorado Springs Gazette relates that Chairman of the Senate Armed Services Committee (SASC) Sen. Carl Levin, D-Mich., and ranking minority member Sen. John McCain, R-Ariz., have endorsed Pres. Obama’s effort to require TRICARE for Life (TFL) beneficiaries to pay a $200 annual enrollment fee for 2012.  They sent their supportive opinions in separate letters to the “Super Committee.”  As bulletin readers know, our most senior retirees are already saddled with paying Medicare Part B in order to qualify for TFL. Under the President’s plan, the annual enrollment fee would climb to $295 in 2013 and would be raised every year thereafter to keep pace with health care inflation.  The two SASC leaders did not comment on the proposed annual increases for 2013 and beyond.  The President is also seeking significant increases in the cost of the prescription drug benefit used by military retirees.  So much for the promise of “free lifetime healthcare” made to millions upon millions of military members.  Now would be a good time to send a very clear message to your elected officials, stating your views on these proposed increases.  You might want to also send separate messages to Senators Levin and McCain (the top SASC leaders).  Remember that every seat in the House of Representatives is up for reelection next year.  Thirty-three of the U.S. senators also face reelection.

To determine the identities and contact information for your two senators and representative, go to www.contactingthecongress.org

SASC Chairman Carl Levin can be reached by various means.  To see these, go to:  http://www.contactingthecongress.org/cgi-bin/newmemberbio.cgi?lang=&member=MISR&site=ctc2011&address=&city=&state=MI&zipcode=&plusfour=

Ranking member Sen. John McCain’s contact information can be found at:  http://www.contactingthecongress.org/cgi-bin/newmemberbio.cgi?lang=&member=AZSR&site=ctc2011&address=&city=&state=AZ&zipcode=&plusfour=

To read Sen. McCain’s letter (very similar to Sen. Levin’s) to the Super Committee (the letters touched on all TRICARE programs and on military pay), go to: http://mccain.senate.gov/public/index.cfm?FuseAction=PressOffice.PressReleases&ContentRecord_id=031a2b87-b8f9-c809-7b81-8c2154604773

To read Philpott’s article, go to:  http://www.gazette.com/articles/endorse-127263-levin-changes.html

To read an Associated Press article on the proposed changes as reported in the Grand Junction Daily Sentinel, go to:  http://hosted2.ap.org/COGRA/e109e277e48c4e219e07a1d4710177b3/Article_2011-10-22-Deficit-Military%20Benefits/id-95393b3ccfb2432cb18de21b31ab7f46

2.  Next Determination will be 2013 Military Pay Raise.  The Bureau of Labor Statistics recently released the data showing its measurement of inflation (through the Consumer Price Index) which dictates that the January 1, 2012, military retiree cost-of-living adjustment will be 3.6 percent.  Later this week, the BLS is scheduled to release its annual measurement of the Employment Cost Index (measures private sector wage growth).  This measurement will determine the military pay raise for January 2013.

3.  More Discussion on Changes to Military Retirement Plan for Future Servicemembers.  DoD Secretary Panetta has assured currently serving members that their military retirement plan is safe.  But what would be the overall impact on the force if the current retirement plan changed for new accessions?  An article in Government Executive takes a look at this along with comments from DoD officials and some congressional members.  To read this article, go to:  http://www.govexec.com/dailyfed/1011/102511kl1.htm  

4.  Bills of Interest Up-to-Date (through October 24). 

H.R. 3167, by Rep. Jeff Fortenberry, R-Neb., would direct the Secretary of Veterans Affairs to establish a program under which certain veterans entitled to educational assistance under the laws administered by the Secretary can use such entitlement to start or purchase a qualifying business enterprise.

S. 1689, by Sen. Pat Toomey, R-Pa., would require a comprehensive policy on reporting and tracking sexual assault incidents and other safety incidents that occur at medical facilities of the Department of Veterans Affairs.

 S. 1707, by Sen. Richard Burr, R-N.C. (and others), would clarify the conditions under which certain persons (within the VA system) may be treated as adjudicated mentally incompetent for certain purposes.

S. 1728, by Sen. Scott Brown, R-Mass., would establish a criminal offense relating to fraudulent claims about military service.

S. 1755, by Sen. Jon Tester, D-Mont., would provide for coverage under the beneficiary travel program of the Department of Veterans Affairs of certain disabled veterans for travel for certain special disabilities rehabilitation.

 Note:  Those interested can view the text and/or status of the above bills at www.thomas.gov

(end)

October 8, 2011 (“Supercommittee” may address military pay/benefits.  Commissary director defends appropriations for commissaries as a good national investment.  NDAA delay could affect important programs.  Bulletins below posted a little late, but great information from our friend, CMSgt[Ret] Jim Lokovic);

 1.  “Supercommittee” May Seek Commission on Pay and Benefits.  According to several sources, the Supercommittee ( a group of 12 legislators, 3 from each party from the House and Senate) may form a commission to examine federal/military pay, pensions, and health care benefits.  A Bloomberg article wrote, “The U.S. congressional supercommittee charged with cutting the deficit may consider whether cuts in federal pensions, pay and health-care benefits should be drafted by an independent commission.  The panel might operate similarly to the 2005 Defense Base Closure and Realignment Commission, which presented Congress with a plan it had to either accept or reject without changes, according to two congressional staff members who weren’t authorized to speak on the record. . .The Defense Department faces cuts of at least $450 billion from its 10-year spending plans, even before the supercommittee makes its recommendations.  If Congress fails to act on the recommendations by Dec. 23, the August budget bill signed by President Barack Obama calls for automatic cuts, including an additional $500 billion from defense spending over a decade, not including interest.”  To read more, go to:  http://www.bloomberg.com/news/2011-10-05/supercommittee-may-seek-pay-commission.html

 2.  Commissary Director Defends Commissaries.  Quoted in a Stars and Stripes article, the director of the Defense Commissary Agency (DeCA) defended DoD’s investment in the commissary system.  He said, “In return for the $1.3 billion that we get in appropriations support’ annually, we are providing nearly $2.7 billion in savings to patrons.”  That more-than “two-for-one return on investment” is “something people don’t think about.  It’s really an excellent investment for taxpayers.”  He made these comments in light of recent discussions of ways to balance the federal budget by possibly cutting defense programs such as commissaries and exchanges.  You can read the entire article at:  http://www.stripes.com/commissary-director-says-critics-overlook-the-efficiencies-1.157108

 3.  NDAA Delay Could Affect Important Programs.  In the previous bulletin, we reported that Senate Majority Leader Harry Reid, D-Nev., is refusing to bring the Senate Armed Services Committee’s (SASC) version of the FY 2012 NDAA, S. 1253, to the full Senate floor for debate because of a terrorist detainee provision.  While there is little chance the January 1 military pay raise (1.6 percent) will be delayed, the provision that would limit annual TRICARE Prime fee increases, for military retirees, to no more than the same percentage as the annual military retiree cost-of-living adjustment cannot be enacted without passage of the bill.  Also, a major overhaul of the military transportation/travel regulation and stronger sexual assault prevention provisions are in the bill.  SASC Ranking Member, Sen. John McCain, R-Ariz., has said that while he considers the detainee provisions in S. 1253 fair and equitable, he is ready to work with SASC Chairman Sen. Carl Levin, D-Mich., to work out a compromise.  Those wanting to view the text and status of S. 1253 can do so at:  http://www.govtrack.us/congress/bill.xpd?bill=s112-1253

 (end)

October 5, 2011 (House passes continuing resolution to fund the government through November 18.  FY 2012 NDAA still at an impasse.  ”Super Committee” may drop the ball on identifying further budget cuts.  Assistant Secretary of Defense for Health Affairs comments on TRICARE Prime fee increases for military retirees.  Bulletin below is posted to Div 5 website by President Blodgett and provided to us by our friend in Div #12, CMSgt [Ret] Jim Lokovic);

 1.  House Passes Continuing Resolution through November 18.  By a vote of 352 to 66, the House has passed a continuing resolution, passed earlier by the Senate, to fund government programs through November 18.  Despite the fact that the new fiscal year began last Friday, none of the 12 appropriations bills are finished.  While the House has passed six of the bills, the Senate has passed just one.

 2.  FY 2012 NDAA Stalled Again due to Politics.  Several months ago, the House of Representatives passed its version of the FY 2012 National Defense Authorization Act (NDAA).  The Senate Armed Service Committee also passed its version several months ago, but the full Senate has yet to take up the measure.  While Senate Majority Leader Sen. Mitch McConnell, R-Ky., has been urging Senate Majority Leader Sen. Harry Reid, D-Nev., to bring the bill to the floor, Reid has refused to do so until a provision related to the detention of terrorist suspects is stripped from the bill (a provision which the Obama Administration objects to).  Months ago when the Senate Armed Services Committee (SASC) passed its bill, SASC Chairman Sen. Carl Levin, D-Mich., and SASC Ranking member Sen. John McCain, R-Ariz., stated they felt the committee-passed bill was a good one.  The provision that Reid objects to would direct terror suspects into military, rather than civilian, custody.  The McConnell camp maintains the bill should be brought to the Senate floor with the detention provision and all other provisions subject to debate.  Reid maintains the bill simply will not advance until that provision is removed.  So, the impasse continues.

 3.  “Super Committee” has until November 23^rd to Identify Cuts.  As explained earlier, in addition to the cuts imposed by the budget reform legislation signed in August, a “super committee” has been tasked with identifying at least $1.2 trillion in additional cuts by November 23^rd.  If they do not do so, the new budget law mandates that the cuts would be automatically “triggered,” with half coming from defense and half from domestic programs other than Medicaid, Social Security, veterans benefits, military pay, and other sensitive programs.  As reported earlier, Defense Secretary Panetta and several top generals have voiced the opinion of the Administration that further defense cuts (if “triggered”) would lead to a “hollow military,” and our nation would not be able to meet its national defense objectives.  This, of course, puts Congress in a bind.  On the one hand, the Obama Administration signed the legislation.  On the other, the Administration is now warning Congress that implementing it could be destructive.  For these reasons, several analysts are predicting that (1) the super committee may well be unable to reach a viable plan to impose the $1.2 trillion in cuts, and (2) that the deal forged in the August legislation may be significantly altered or “gutted.”     

 4.  DoD Health Care Official Speaks about TRICARE Changes.  As military retirees know, the cost of TRICARE Prime for “working age military retirees” went up on October 1^st.  Although Congress has not yet approved the increase, their work on the FY 2012 Defense Bill (not yet passed) signaled to DoD that Congress would not oppose the increase; so DoD ran with it.  The scripted word of the day on the increase, used throughout DoD is “modest.”  The increase this year is “modest.”  An Armed Forces Press Service (DoD) news release quotes Assistant Secretary of Defense for Health Affairs Dr. Jonathan Woodson as saying, “We understand, particularly in the current economy and set of fiscal realities, any increase in [out-of-pocket] costs would cause some concern,” he said. “But I would remind everyone there have been no fee increases since 1994.”  Woodson said two groups of TRICARE beneficiaries would not experience any increases:  people who are medically retired and survivors of deceased active duty sponsors.  He also said no decisions have been made on future TRICARE Prime increases for military retirees.  However, what he did not address was DoD’s request to Congress earlier this year that future annual increases be tied to civilian healthcare inflation (which has been running from 8 to 14 percent per year).  Both the House and Senate versions of the FY 2012 National Defense Authorization Act, while allowing the just-imposed “modest” increases, would limit any future annual increases to the same percentage as that of the annual military retiree cost-of-living adjustment.  To read the entire article, go to:  http://www.defense.gov/news/newsarticle.aspx?id=65534

 5.  Not on the Backs of Veterans.  In late August, President Obama addressed the annual national convention of the American Legion.  At that time he made a well-received statement he has since repeated numerous times:  “We cannot, we must not, and we will not balance the budget on the backs of veterans.”  In more recent times, several analysts have indicated that future cuts in the Defense budget will allow the administration to ensure full funding for Department of Veterans Affairs programs.  What is left out of this discussion, however, is a point that this Association has made many times:  Every military retiree is a veteran in every legal and moral sense of the word, and the commitment to them should also be that their health care will not be used as a tool to help balance the federal budget.  Editor’s note:  I just sent letters to my two senators and my district representative and asked them to work to protect military health care benefits and to make sure the Administration understands the relationship between military veterans and retirees.

 (end)

October 3, 2011 (President signs short-term CR; House debates a longer one tomorrow.  An analysis of the military retirement system and changes to it.  General Dempsey now Chairman of the Joint Chiefs.  Expanded GI Bill changes take effect – Bulletin below courtesy of Div #12 Legislative Trustee, CMSgt [Ret]Jim Lokovic!)

 1.  President Signs Short-term CR.  At the end of last week, President Obama signed a short-term continuing resolution to avoid a government shutdown by funding government programs through tomorrow.  At that time, the House of Representatives will take up another CR that would provide funding through November 18.  Such CRs continue basic funding for government agencies at the same levels as the previous fiscal year.

 2.  Heritage Foundation Analysis of the Current Military Retirement System.  Baker Spring, while writing for the Heritage Foundation, provides an interesting analysis of the current military retirement system and the need to change it.  He said any such changes must be made to be able to achieve three main objectives:

1. Ensuring continued recruitment and retention of the top-quality personnel the armed forces need,

2.  Honoring the country’s obligations to members of the armed forces, and

3.  Applying taxpayer resources devoted to the nation’s defense effectively.

 The article emphasizes that any such changes should be “grandfathered” and that those currently serving should continue with the current system, but have the option of moving to a Thrift Savings Plan-type system.  Mr. Spring posits that any reformed system should take the following factors into account:

• Cover all who serve.  This expanded TSP-based system should apply to reserve component service members as well as active-duty service members.
• Provide tax-deferred savings for retirement.  The more individuals and families save, the lower their taxes.  Taxes would be paid on savings only when savings are used to pay for goods and services.
• Provide special bonus packages for contributions to retirement accounts.  To maximize recruitment and retention, the military should be free to offer incentives to incoming service members in the form of payments into retirement accounts.  Bonus packages should vary in term to allow for targeted recruitment for short-term and potential full-career recruits.
• Provide disability retirement coverage through the Department of Veterans Affairs, if necessary, and a reformed Social Security system.  Proposed reforms would allow disabled service members to obtain quick and accurate decisions on their benefit applications.  While disability military retirement would be eliminated for new entrants, Veterans Affairs programs would offset this cut, and new recruits would also have access to a reformed Social Security.
• Give the option to “grandfather” currently serving military personnel under the existing retirement system.  Grandfathered personnel would be allowed to retain the accrued benefits built up during their service under the existing system in addition to being able to join the new system.
• Provide for survivors.  Upon death, the balances in the TSP account would become part of one’s estate and be transferred to a service member’s heirs. 

 The entire article can be viewed at:  http://www.heritage.org/research/reports/2011/09/military-retirement-system-strengthen-benefits-and-entitlements

 3.  Army General Martin E. Dempsey Now CJCS.  General Martin E. Dempsey has succeeded Navy Admiral Mike Mullen as the 18^th Chairman of the Joint Chiefs of Staff.  His biography is available at:  http://www.jcs.mil/biography.aspx?ID=135

His letter to the Joint Force can be read at:  http://www.dodlive.mil/index.php/2011/10/general-dempseys-letter-to-the-joint-force/

 4.  Expanded Post-9/11 GI Bill Changes in Effect Now.  In past bulletins we have explained the changes coming into effect for the Post-9/11 GI Bill as a result of legislation passed in the 111^th Congress.  You can take a look at the actual features of the new program at:  http://www.gibill.va.gov/benefits/post_911_gibill/index.html

An opinion piece in the New York Times highlights these change which include, “. . . military veterans pursuing an education under the G.I. Bill have many more choices.  The money for tuition, books and housing used to be just for study at colleges and universities, but now the G.I. Bill also covers non-degree institutions like vocational and technical schools, flight schools, and licensing and apprenticeship programs.”  However as the article points out, a recent Senate committee report   http://harkin.senate.gov/documents/pdf/4e7b5d0253b75.pdf  shows that a “disproportionate amount of the taxpayer money spent on veterans’ education has already been snapped up by private, for-profit colleges.  These schools often cost much more than public institutions yet have dismal graduation rates and dubious curriculums.”  The article posits that “strong controls will be needed as “fly-by-night” schools may take advantage of the changes.  To read more, go to:  http://www.nytimes.com/2011/10/03/opinion/a-broader-gi-bill.html?_r=1

 5.  VA Overbilling Continues According to GAO.  The Government Accountability Office (GAO) recently released a report after reviewing the Department of Veterans Affairs’ (VA) 56 million copayment bills in 2010.  While the review showed the VA had an accuracy rate of 96 percent, that still amounted to inaccuracy in about 2.3 million copayment amounts.  The mistakes often resulted in overbilling the veterans.  The VA collects payment from veterans or their insurance companies for treatment and prescriptions for conditions not related to military service.  According to a recent Army Times report, “The 4 percent of errors that did occur in appropriate copayment billings resulted from a number of factors, the GAO said, including multiple reviews of charges that had already been billed and incorrect applications of reimbursements received from third-party insurers.  GAO recommended that the VA establish performance measures for determining payment accuracy and procedures for checking the accuracy of charges.”  To read more, go to:  http://www.armytimes.com/news/2011/09/military-gao-says-4-percent-of-va-copayments-inaccurate-093011w/

 6.  CBO Report on the “Veterans’ Benefits Act of 2011.”  H.R. 2349, the “Veterans’ Benefits Act of 2011,” would modify the eligibility requirements for veterans’ pension awards. The bill also would require the VA to undertake a pilot program to assess the skill level of claims processing personnel, and would make several other administrative changes to veterans’ benefits programs.

 On September 30, 2011, the Congressional Budget Office (CBO) “scored” this bill.  Scoring is the process of estimating the cost or savings of a particular piece of legislation.  In the case of H.R. 2349, scoring shows that the bill will actually save money over time by requiring the VA to more accurately assess the income levels of those who are receiving VA pensions.  The CBO estimates the bill would decrease direct spending by $11 million over 2012-2016 and by $16 million over the 2012-2021 period.  Those interested can read the CBO report at:  http://www.cbo.gov/ftpdocs/124xx/doc12459/hr2349.pdf

 (end)