financial forum
Benefits’ Value
Many military and veterans’ benefits can have a significant financial impact on members of the military community.
By Lt. Col. Shane Ostrom, USAF (Ret), CFP®
In honor of Veterans Day, let’s take a look at the evolution of several military and veterans’ benefits from a financial point of view.
Here is a selection of benefit changes since 2001 and their resulting financial impact on the military community:
TRICARE For Life (TFL). TRICARE now acts as the military’s Medicare supplement. Most beneficiaries rarely see a doctor’s bill because of the Medicare/ TRICARE partnership. Compared to before TFL, beneficiaries save substantial money on medical bills and by not having to buy a Medicare supplement plan. Combined with the TRICARE Pharmacy plan, TFL saves retired veterans’ families thousands of dollars. For more information on TFL, visit
www.moaa.org/tfl. MOAA Premium and Life members can download a free copy of the Aging Into Medicare and TRICARE guide at
www.moaa.org/infoexchange.
Post-9/11 GI Bill. Active duty servicemembers can transfer this education benefit to family members. The program pays for tuition, fees, books, and housing. This benefit is worth the value of a college degree and more. Learn more at
www.gibill.va.gov.
Currently serving pay increases. MOAA estimates currently serving troops get 14 percent more income now versus what they would have received with no lobbying efforts. Higher currently serving income translates to greater retirement pay later. Urge your legislators not to cut the troops’ pay raise. Visit
http://capwiz.com/moaa/issues to send your elected officials a message.
Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC). CRDP and CRSC restore earned service retired pay from years of service that used to be denied to retirees who accepted VA compensation for disabilities. In other words, it replaces some or all of what the VA waiver takes away. Visit
www.moaa.org/crdp for more information. TRICARE Prime, TRICARE Standard, and TFL fee stability. MOAA continues to fight on Capitol Hill so servicemembers don’t have to pay the substantially higher fees for TRICARE Prime, TRICARE Standard, and TFL that DoD would have them pay.
Survivor Benefit Plan. Military survivors no longer are denied benefits because of Social Security retirement eligibility. Survivors with the VA’s Dependency and Indemnity Compensation also get the Special Survivor Indemnity Allowance. Visit
www.moaa.org/sbp for more information.
MO
— Lt. Col. Shane Ostrom, USAF (Ret), is a CFP® and benefits information expert at MOAA. To speak with a financial planner, contact USAA at (877) 913-6622 or
www.usaa.com/moaa. Visit
www.moaa.org/financialcenter for other resources. Email specific benefit and finance inquiries to
beninfo@moaa.org.
Benefits Guide Check out MOAA’s Benefits and Financial Planning Guide. MOAA Premium and Life members can download it for free at
www.moaa.org/financialplanningguide.
48 MILITARY OFFICER NOVEMBER 2013
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