2015 COLA THE 1.7 PERCENT INCREASE BEGINS IN DECEMBER
Te 2015 Cost-of-Living Adjustment (COLA) for mili- tary retired pay and survivor annuities will be 1.7 percent, with some exceptions; for example, individuals who retired this year will receive partial COLAs based on the calendar quarter in which they retired. COLAs for 2015 will begin Dec. 1 and will show up in January checks. Te 1.7 per- cent increase also applies, as of Dec.1, 2014, to the rates of Veterans’ disability compensation, additional compensation for dependents, the clothing allowance for certain disabled adult children, and dependency and indemnity compensa- tion for surviving spouses and children.
FY2015 LEGISLATION MANY KEY BILLS AND PROVISIONS STILL PENDING
At press time, members of the House and Senate were in their home states for a recess that will last through November 12. Lawmakers made little progress prior to the break and many important defense and Veterans-related decisions are still on hold. Tese include the Defense Authorization, Defense Appropriations, and VA/Military Construction bills. Up until the recess, AFSA and its Coalition partners continued to meet with key congressional leaders to promote the range of quality- of-life issues that are important to our members. During the recess, lobbying continued at the staff
level, with particular emphasis on the unfinished National Defense Authorization Act (NDAA), which establishes funding levels and sets the policies under which money will be spent. Policies defined under the NDAA include salary and benefit guidelines for all service members, including health care for active personnel and retirees.
F DEFENSE AUTHORIZATION Y2015 BILL PASSAGE EXPECTED SOON
Congress is expected to pass a FY2015 defense authoriza- tion bill this year, although it’s unlikely it will occur through regular order with the Senate passing its version before it goes to a House-Senate conference. Absent an agreement to limit amendments, there simply isn’t enough time for the Senate to complete its own version in the lame-duck session. As we reported in our last issue, the staffs of both Armed Services Committees were directed in August to “pre-conference” a single bill using the House-approved
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measure and a Senate Armed Services Committee draft. Tis “fallback measure” is what we expect to see presented to the two chambers in November or December. In early October, AFSA and its Military Coalition partners out- lined a number of provisions we would like to see retained in the final bill in letters to the Chairmen and Ranking Members of the Armed Services Committees. Copies of the letter were also sent to every member of Congress. Te Coalition praised the House and the Senate Armed
Services Committees for rejecting many of the proposals by the Pentagon and the administration in the FY2015 budget to cut costs on the backs of those who serve, including a plan to consolidate TRICARE options and make cuts to commissaries. Te Senate was urged to follow the lead of the House and block the proposed active-duty pay raise cap of 1 percent, as well as a reduction in housing allowance compensation and an increase in TRICARE pharmacy fees. A number of key legislative priorities were included in
only one version of the bill, so the Coalition highlighted these issues in the hopes that both chambers would adopt the fixes in the conference committee report. Tey include: • Full Future COLAs: Te Senate version of the
defense bill would provide full Cost-of-Living Adjust- ments (COLAs) to new entrants in the military through Jan. 1, 2016. Tanks to the Coalition’s advocacy efforts, current service members, retirees, and survivors have been grandfathered from cuts to COLA originally included in the Bipartisan Budget Act of 2013, but new recruits since Jan. 1, 2014, are not protected. • Guard/Reserve Retirement Credit: Te Senate bill
includes a provision to provide early retirement rollover credit for Guard/Reservists who serve 90 days on active duty during two fiscal years. Currently, the 90-day clock resets at the start of a new fiscal year. • SBP Special Needs Trust: Te Senate bill also includes
a provision to allow for Survivor Benefit Plan annuities to be paid into a Special Needs Trust for adult dependent children. Current law prohibits SBP from being paid into a trust. Tis can result in disabled dependent children being ruled ineligible for essential needs-based government aid because of their SBP income. Last but not least, the Coalition urged Congress to reach
a bipartisan solution to repeal sequestration. Te automatic, across-the-board cuts in government funding have had a disproportionate effect on DoD. Te arbitrary cuts have led to a “butter versus bullets” debate that is placing readiness and the future of the all-volunteer force at risk. Again, we are confident there will be an approved FY15 NDAA as soon as some variables are resolved; how it will be prepared, when it will be addressed, and, of course, what it contains remain unknown. We continue to monitor its progress and will report the outcome in future AFSA media.
LEGISLATIVE NEWS AND UPDATES FROM CAPITOL HILL EYE ON WASHINGTON
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