washingtonscene The Senate once again includes an ac-
tive duty pay cap below private-sector pay growth. This would be the third consecu- tive year of pay caps. The Senate’s proposal includes major changes to the basic allowance for hous- ing (BAH) benefit. In addition to reducing BAH by up to 5 percent for military fami- lies, servicemembers who live together would see a reduction in their allowance. For married servicemembers living to- gether, BAH would be restricted to the spouse of higher rank. Unmarried troops living together would face a 25-percent cut in BAH (see next article, “86 the Mili- tary Housing Benefit,” for more details). In a big win for military families, the Senate bill allows TRICARE beneficia- ries to use urgent care up to four times a year without preauthorization. However, the Senate bill also accepts proposals to double TRICARE pharmacy copayments over 10 years. Like their House counterparts, Senate
lawmakers included significant changes to military retirement. Both the House version and the Senate’s proposal begin matching contributions to Thrift Savings Plan ac- counts after two years of service. However, the Senate’s retirement reforms stop gov- ernment matching at 20 years.
Annual Cost of “Marriage Tax”
Location San Antonio Norfolk, Va.
San Diego *Source: Defense Travel Management Office E-5
$14,760 $15,336 $23,112
MOAA thinks this latter proposal
provides little incentive to serve after that point, and we remain concerned over the ability to retain mid-grade NCOs and officers in the career force. The Senate also included DoD’s re-
quested $322 million cut to the com- missary subsidy, which will result in increased costs for goods, longer lines, and reduced hours and days of operation. Now that both chambers have passed
their respective versions of the defense bill, House and Senate lawmakers will go to conference to reconcile the differ- ences. Leadership from the Armed Ser- vices committees announced they hope to complete their work before the start of the August recess.
86 the Military I
Housing Benefit? Servicemembers living together could see significant cuts.
$19,476 O-3
$20,232 $28,728
n a proposal approved by the Senate, servicemembers married to other servicemembers living off base no longer would receive two basic allow- ance for housing (BAH) benefits. This contentious new proposal would cut housing allowances for more than 40,000 servicemembers. How much will this “marriage tax” cost a married couple annually? Regardless of where they live, it will cost them a lot (see chart, left).
The housing pro- posal has received
30 MILITARY OFFICER AUGUST 2015
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