washingtonscene
We again commend these brave survi- But as federal budgets tighten and defi -
vors for their tenacity. This important case cits deepen in the years ahead, it’s virtual-
can only help in our continuing crusade to ly certain we’ll have to contend with
repeal the SBP/DIC offset. renewed threats to pay raises, COLAs,
commissaries, and TRICARE benefi ts —
CBO Offers
and more — down the road.
New Options FSA Ban
Book lists benefi t cutbacks.
Hurts Military
L
ast fall, the CBO put out a book of Families
budget options to cut spending on
Accounts would help save
health care issues, including new
fees for TRICARE For Life benefi ciaries.
on health care.
In the end, the president’s budget didn’t
include any of those options.
In September, the CBO issued Vol. 2 of
its options book, outlining ways to hike F
or years, MOAA has urged the
Pentagon to give servicemembers
and their families the same access
or cut other spending categories. Here’s to fl exible spending accounts (FSAs)
a summary of selected options: other federal employees have.
Army manpower: One option would add FSAs let employees put aside their own
23,000 soldiers to “fully staff the active money on a pretax basis (exempt from
Army,” as recommended in the Senate’s FY state and federal income tax and payroll
2010 Defense Authorization Bill (S. 1390). taxes) to pay for out-of-pocket expenses
Another would cut 74,000 troops. they incur for health or dependent care.
military pay raise: Cap military pay raises Premium conversion, an FSA cousin,
0.5 percent below private-sector pay growth allows pretax payment of premiums for
for fi ve years, and substitute bonuses. employer health and dental insurance.
commissaries and exchanges: Consoli- FSA-covered expenses include day care
date commissaries and exchanges, increase for children or parents; eye exams, glasses,
prices 5 percent, and provide active duty and contact lenses; deductibles and copay-
servicemembers (but not retirees or reserv- ments for health and dental insurance and
ists) a grocery allowance of $600 a year. pharmaceuticals; OTC medications; dental
retired pay/VA/Social Security COLAs: copayments; and more.
Change the index for annual COLA adjust- If you have one or more doctors who
ments in a way that would depress COLAs don’t accept TRICARE, those excess
by about 0.3 percent a year. charges can be paid with FSA funds.
VA disability compensation: Reduce VA How much is an FSA worth?
disability compensation by any Social Se- Let’s assume you’re in the 25-percent tax
curity Disability Insurance received. bracket (roughly the $34,000 to $82,000 in-
For perspective, the CBO publishes come range, a conservative estimate for the
options books for each new Congress, typical dual-income family; use 28 percent
but the ideas rarely are enacted. At this for joint income above $82,000).
late stage of the legislative year, we don’t Putting money in an FSA saves 25 per-
expect them to get serious consideration cent for federal income tax. If you live in a
for FY 2010. state with a state income tax (say, 5 percent),
36 MILITARY OFFICER NOVEMBER 2009
NNov_scene.indd 36ov_scene.indd 36 110/5/09 6:00 PM0/5/09 6:00 PM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96