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Military Families Military Families

Someone explain the military pay cut that just passed the house

Posted by on Dec. 12, 2013 at 4:56 PM
  • 14 Replies
What is cola for retirees and how exactly will a 40 year old retired e7 lose 83,000 over a 20 year period?

Does that mean they're reducing retired checks or ? I don't get it.
by on Dec. 12, 2013 at 4:56 PM
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Replies (1-10):
DvlDogWfe
by Stella on Dec. 12, 2013 at 5:10 PM
COLA is cost of living allowance. My guess that part of the retirement pension is no longer being paid.
chrlstoncharmed
by Melissa on Dec. 12, 2013 at 5:16 PM
Retirees younger than 62 will get their COLA cut 1% point below inflation until they reach the age of 62. At that age, they would receive a one-time annuity to make up for what they lost.
Anonymous
by Anonymous 1 on Dec. 12, 2013 at 9:25 PM
jas_momof2
by アニメの雌犬 on Dec. 13, 2013 at 8:22 AM

ugg...

darbyakeep45
by Darby on Dec. 14, 2013 at 6:40 AM

My thoughts exactly...

Quoting jas_momof2:

ugg...


KateKashman
by Bronze Member on Dec. 14, 2013 at 4:17 PM

Where have you seen this?  I've not seen anything about catch-ups.  There is a catch-up provision in the Redux/CSB retirement plan.  This would be a lot less frustrating if there were the same provision.

Quoting chrlstoncharmed: they would receive a one-time annuity to make up for what they lost.


Kate Kashman

Anonymous
by Anonymous 2 on Dec. 14, 2013 at 4:27 PM

It's in this article.

http://www.military.com/benefits/2013/12/11/ryan-murray-deal-hits-retirees.html

Quoting KateKashman:

Where have you seen this?  I've not seen anything about catch-ups.  There is a catch-up provision in the Redux/CSB retirement plan.  This would be a lot less frustrating if there were the same provision.

Quoting chrlstoncharmed: they would receive a one-time annuity to make up for what they lost.

 

 

KateKashman
by Bronze Member on Dec. 14, 2013 at 4:32 PM

After retirement, retirees get a Cost of Living Adjustment (COLA) every year.  It is tied to the consumer price index and has historically ranged from 0% to 14%.  So, if your retirement pay was $1000 per month, and the COLA was 5%, then next year your retirement pay would be $1050 per month.

This legislation would decrease military retirees COLA until they reach the age of 62.  The new "working age" military retirement pay COLA would be 1% less than the regularly calculated COLA.    In my example above, the new retirement pay would be $1040 per month.

It isn't much at first, but it is cumulative from year to year.  If the same example above would continue, that $10 monthly difference in the first year would be $128 monthly after 10 years, and $420 monthly after 20 years.

For me, it is just wrong to change the retirement formula for troops that are currently serving or already retired.  In the past, when they've changed retirement plans, it went into effect for new entries to the military and did not impact those currently serving.  And to change the formula for people who have already retired?  How messed up is that?

http://paycheck-chronicles.military.com/2013/12/14/retirement-benefits-at-risk/


chrlstoncharmed
by Melissa on Dec. 15, 2013 at 10:33 PM
1 mom liked this
Well, except for the statistics that show a 20+ year veteran's life expectancy is shorter. It would be nice to have the money sooner than later. :-\

Quoting KateKashman:

Where have you seen this?  I've not seen anything about catch-ups.  There is a catch-up provision in the Redux/CSB retirement plan.  This would be a lot less frustrating if there were the same provision.

Quoting chrlstoncharmed: they would receive a one-time annuity to make up for what they lost.


chrlstoncharmed
by Melissa on Dec. 17, 2013 at 3:37 PM

http://www.foxnews.com/politics/2013/12/17/sen-tries-to-undo-cuts-to-military-retiree-benefits-ahead-senate-budget-vote/

(I don't normally read Fox News, but I happened to see this article on FB)

Republican senators were making a last-ditch bid to undo cuts to military retiree benefits in the House-passed budget deal ahead of a crucial test vote Tuesday morning in the Senate.

Alabama GOP Sen. Jeff Sessions filed an amendment late Monday to restore money that was cut from veteran and military retiree pension benefits by closing a loophole that allows illegal immigrants to qualify for child tax credits.

His move comes after several GOP senators voiced complaints about the budget package, which sailed out of the House last week on a strong bipartisan vote. Those senators were also calling on their colleagues Tuesday morning to spare military retirees from the cuts.

However, late-breaking endorsements from several GOP senators could help lift the budget bill over the finish line, and it's unclear whether changes to the military retiree provision will be considered.

Republicans opposed to that provision say it unfairly forces veterans to pick up the cost of new spending. The provision generating heated opposition from Veterans of Foreign Wars and allied lawmakers would cut retirement benefits for military retirees by $6 billion over 10 years.

"It's unacceptable to single out our men and women in uniform in this way," said Sen. Kelly Ayotte, R-N.H., who has already expressed her intention to vote against the proposed budget.

Democrats need to hold most of their caucus of 55 senators together and pick up a handful of GOP senators in order to reach the 60-vote threshold to advance the bill on Tuesday.

The prospect that the budget would clear the cloture hurdle brightened Monday, when three GOP senators -- Orrin Hatch of Utah, Johnny Isakson and Saxby Chambliss of Georgia -- announced that they would vote yes. A fourth, Sen. Ron Johnson of Wisconsin, expressed his support on Sunday. Sens. John McCain and Jeff Flake of Arizona also said they would vote in favor of cloture last week.

But unlike in the House, where Speaker John Boehner aggressively battled conservative groups trying to kill the bill, GOP leaders in the Senate are signaling opposition, or at least resistance, to the package.

Senate Minority Leader Mitch McConnell of Kentucky has not said which way he will vote Tuesday, but he is widely expected to oppose the measure. Similarly, Senate Minority Whip John Cornyn of Texas announced his opposition Monday morning on his campaign's website -- a step his Senate office was unwilling to take. It was later deleted after reporters from The Associated Press asked for confirmation of a Cornyn quote that appeared on the Internet site Breitbart.com.

"Senator Cornyn opposes this budget deal because it breaks previously set spending caps and goes in the 'wrong direction' with regards to entitlement spending," according to the post. His Senate spokeswoman, Kate Martin, would only say that Cornyn would take "a close look" at the measure and is "concerned" that it reverses some of the spending cuts won in a hard-fought 2011 budget pact.

The third-highest ranking Republican in the Senate, conference chairman John Thune of South Dakota, announced Friday that he opposes the deal because it breaches spending caps put in place by a 2011 budget deal "and doesn't include meaningful spending reforms that address our debt and deficit."

Ayotte, Sessions and other senators focused largely on the cuts to veterans and military retirees.

Sessions’ amendment would restore the funding by requiring applicants for a particular child tax credit to submit their Social Security numbers. Federal law bars illegal immigrants from collecting tax benefits but that particular tax credit is often claimed by undocumented residents, according to recent watchdog reports.

Sessions' office has estimated that closing the tax credit loophole would save the government approximately $4.2 billion, the amount the Treasury Inspector General for Tax Administration reported that illegal immigrants received due to the credit in 2010.

Congress faces a Jan. 15 deadline to pass a budget bill or risk another partial government shutdown. The debt-ceiling deadline is expected to hit sometime in February.

The Associated Press contributed to this report.

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