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LEGISLATIVE NEWS THAT AFFECTS YOU Markup Begins

The defense bill markup from the House Armed Services personnel subcommittee rejects DoD proposals to cut military pay and benefits but includes controversial retirement reform proposals.

O

n April 23, the House Armed Services personnel subcom- mittee released its markup of

H.R. 1735, the FY 2016 National Defense Authorization Bill. None of DoD’s propos- als to cut pay and benefits were included. “The mark provides our warfight- ers [and] retirees and their families the care and support they need, deserve, and earned,” said panel chair Rep. Joe Heck (R-Nev.).

The subcommittee rejected DoD’s

request to decrease the commissary sub- sidy, which would have led to reduced hours and operating days. Before mak- ing changes to the commissary system, subcommittee members are waiting for a congressionally mandated study on the effects of price markups in commissaries, which is due in September. The subcommittee also advanced mea-

sures requiring DoD to improve sexual assault response and prevention efforts for male servicemembers. Additionally, the bill included continued funding for local schools with significant numbers of military dependents.

Although the personnel subcommittee

rejected DoD’s budget-driven proposals, it did include controversial aspects of the Military Compensation and Retirement Modernization Commission’s proposals to overhaul military retirement. As this issue went to press, the House Armed Services Committee was begin- ning its markup of the defense bill and

the Senate was expected to begin work on the bill a few weeks later.

MOAA Testifies I

on Proposals Drastic changes to military benefits require careful analysis.

n late March, MOAA and other military advocacy groups testified about the Military Compensation and

Retirement Modernization Commission’s (MCRMC’s) proposals, and panelists split over proposals that would dramatically alter retirement benefits. Speaking before the House Armed Services Committee, MOAA Director of Government Relations Col. Mike Hayden, USAF (Ret), questioned whether MCRMC proposals to shift servicemembers into a 401(k) retirement system will encourage more people to leave or stay. “We are very concerned that the new system lacks the drawing power to sustain servicemembers to 20 years of service,” Hayden said. Under the MCRMC’s retirement propos- al, servicemembers will receive a 20-per- cent reduction in military retired pay, in addition to matching government contribu- tions in the federal Thrift Savings Plan. The success of the commission’s propos- al is completely dependent on the financial literacy of the force. Unfortunately, by the commission’s admission, only 12 percent

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Take Action Keep up-to-date on legislation affecting the military community, read about MOAA’s legislative initiatives, and find and contact your elected of- ficials at www.moaa.org/ takeaction.