washingtonscene
Civics 101 Every year, Congress works on two major types of legislation: authoriza- tion bills and appropria- tions bills. Authorization bills tell federal depart- ments (such as DoD) and agencies what to do. Appropriations bills fund federal agencies.
contributions to retirement accounts, lump-sum proposals, and COLA-reduc- ing measures. One of MOAA’s earliest concerns with
retirement reform proposals was their effect on disabled retirees. Changing the multiplier used to calculate military retirement could diminish a disabled retiree’s pension. DoD officials asked Congress to grandfather disabled retirees under the current system. “This prevents more senior members from receiving less in a disability retirement annuity than the current system,” according to DoD. Defense planners agreed with MOAA that Congress should continue contribu- tions to retirement accounts throughout military service. The Senate’s retirement proposal stops government matching at 20 years. MOAA thinks ending govern- ment contributions at 20 years will deter continued service. DoD also agreed with MOAA’s criti- cisms on potential lump-sum retirement benefits. This option provides a dis- counted, small lump sum while forgoing significant lifetime annuity payments. In a memo to Congress, DoD officials said a lump-sum payment at retirement is a “smart financial decision in very limited circumstances.” MOAA took a stronger stance, equating the payments to unscru- pulous payday lending practices. In exchange for comprehensive retire-
ment reform, DoD also asked Congress to eliminate an unfair penalty on work- ing-age military retirees. Under current law, military entrants who joined after Jan. 1, 2016, will have their future COLAs reduced by one percentage point until age 62. The military said that even by restoring full COLAs, DoD could achieve savings with the new retirement system. “Thankfully, the Pentagon provided
its recommendations in time for House and Senate leaders to consider them
36 MILITARY OFFICER AUGUST 2015
in conference,” says MOAA Director of Government Relations Col. Mike Hayden, USAF (Ret). Though DoD addressed some of
MOAA’s concerns, we’re still worried a 20-percent reduction in retired pay will fail to draw servicemembers to 20 years of service and beyond.
Congress Splits T
on Commissaries Senate bill could slash funding and lead to increased prices.
he Senate took aim at the com- missary system in its version of the National Defense Authoriza-
tion Bill. Senate lawmakers cut $322 million from the commissary budget. A cut this big will lead to increased prices, reduced operating hours and days of op- eration, and a reduction in store staff. Also tucked inside the bill was language allowing DoD to increase prices in stores to cover costs. Sen. Barbara Mikulski (D-Md.) spon-
sored an amendment to restore the $322 million funding and to strike language that would allow DoD to adjust commis- sary prices, but her amendment did not come to a vote. However, as vice chair of the Senate Appropriations Committee, Mikulski rejected the commissary cut and provided full funding. In its version of the defense bill, the
House rejected cuts to commissary funding and included full funding for the commis- sary in the defense appropriations bill. What’s next? The Senate currently
is working on its version of the defense appropriations bill. Once passed, it will go to conference, where differences be- tween the House and Senate bills must be resolved.
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