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LEGISLATIVE NEWS THAT AFFECTS YOU Deep Divides

The House and Senate versions of the FY 2016 defense bill have major differences, including proposals to reform military retirement and cut housing and commissary benefits.

T

he House and Senate have completed their versions of the FY 2016 defense bill. The House

passed its version of the defense bill in late May, while the Senate completed its version in June. The two bills show divides on military compensation and benefits. Lawmakers now must meet in conference to iron out the differences be- tween the two bills. House bill: In a major MOAA victory,

the House bill rejects most of the ad- ministration’s proposals to shift costs to servicemembers and military retirees and their families in the form of mili- tary pay caps, in- creased TRICARE fees, and higher out-of-pocket housing costs. The bill in- cludes a provision prohibiting DoD from replacing or consolidating the commissary and exchange systems until Congress receives a report, due later this year, on commissary management and pricing options. Lawmakers also included a provi-

sion that overhauls military retirement. The proposal combines the existing defined benefit — a cliff-vested 20-year retirement plan — with a portable retirement device. The proposed change allows servicemem- bers to receive a government match on contributions in the Thrift Savings Plan. Government matching would be available for troops serving more than 20 years. How- ever, the provision cuts the existing military retirement annuity by 20 percent. Senate bill: Senate lawmakers took a

different approach in their version of the defense bill.

Proposal

Retirement reform TRICARE

consolidation

Means-testing TRICARE fees

Active duty pay raise

Cuts to housing allowances

commissaries

TRICARE Rx fee increases

Cuts to

House Yes No No

2.3% No No No

Senate Yes No No

1.3% Yes Yes Yes

Final Yes No No

TBD TBD TBD TBD

Visit Your Legislators With Congress on August recess and legislators in their home offices, now is the time to pay them a visit to discuss MOAA’s legislative priorities. Visit www.moaa.org/augustre cess for fact sheets to help you prepare.

AUGUST 2015 MILITARY OFFICER 29