washington scene

However, the markup includes an active duty pay-raise cap below private-sector pay growth for the second consecutive year, increases out-of-pocket housing costs for military families, and increases pharmacy copayments for prescriptions filled outside of military treatment facilities.

A number of notable provisions in the Senate markup include:

authorizing payment of the Survivor Benefit Plan annuity to a special needs trust;
providing $30 million in impact aid for military schools; and
grandfathering those who join the military before Jan. 1, 2016, from reduced retirement COLAs (future service entrants still are affected by the COLA-minus-1-percent cut passed in December 2013).

Committee members expressed their view that including provisions to “slow the growth of personnel costs” is undesirable but necessary based on congressionally mandated budget levels.

MOAA thinks these proposals reverse much of Congress’ hard work between 2000 and 2010, when Congress eliminated a 13.5-percent military pay gap with the private sector and zeroed-out the 18-percent out-of-pocket housing costs that led to serious retention problems in the late 1990s.

MOAA Counters Joint Chiefs

Association board chair debunks Pentagon rhetoric.

On May 6, the Joint Chiefs of Staff made a rare unified appearance before the full Senate

Armed Services Committee in support of the Pentagon’s FY 2015 budget proposals to “slow the growth” in personnel costs in pay and benefits. Chair of MOAA’s Board of Directors

Gen. John H. Tilelli Jr., USA (Ret), provided the counterargument to the Pentagon’s proposals during a second panel that included representatives from the Association of the United States Army (AUSA), the Association of the United States Navy, and the Air Force Association (AFA). Tilelli explained that while debt reduction is a national priority, a disproportionate share of the burden of reducing it must not be placed on the backs of servicemembers and military families.

Annual Loss of Purchasing Power from FY 2015 budget proposal (active duty family of four with 10 years of service)

E-5; O-3

Loss of Basic Pay*; $593; $1,130

Basic Allowance for Housing; $1,224; $1,584

Commissary; $2,970; $2,970

TRICARE; $206; $206

Total annual loss; $4,993; $5,890

*FY 2014 and FY 2015 aggregate loss