Thailand Live Saturday 12 October 2024

[55Jay]

Think there are a few mil rets on TV.

Retirees below age 62 now on a CPI minus 1% for COLA calculations in the 2014 budget.

CIV/GS employees will have a slightly higher % input into retirement plan, although my understanding is this impacts new hires, not current emps.

Took a break from Thai political drama and watched House sessions on CSPAN on-line yesterday, with many Reps and Dems slapping each other on the back and giving bi-partisan foot massages for actually coming up with a budget bill. Found this reflective piece in Stars and Stripes this morning, so there's still traction out there. //

http://www.stripes.com/news/us/lawmakers-promise-review-of-military-pension-cuts-1.257493

[Suradit69]

...one percent cut in annual cost-of-living increases for non-disabled veterans under 62 years old ...

The Military Officers Association of America has estimated it will cost a retiring Army Sergeant first class about $3,700 a year and a typical retired officer more than $124,000 over 20 years.

A 1 percent cut in cost of living increases = $3700 to $6200 a year?? Wow.

[rakman]

...one percent cut in annual cost-of-living increases for non-disabled veterans under 62 years old ...

The Military Officers Association of America has estimated it will cost a retiring Army Sergeant first class about $3,700 a year and a typical retired officer more than $124,000 over 20 years.

A 1 percent cut in cost of living increases = $3700 to $6200 a year?? Wow.

Those numbers seems a bit odd, but the whole story is the COLA will be inflation minus 1% for non-disabled retirees under age 62. After age 62, full COLA increases resume.

Now if a Sergeant first class retired on $37,000 per year, the reduction in COLA adjustment would be $370/yr, $3,700+ over 10 years, plus annual accruals. But, keep in mind, many retirees enlist at 19, and retire at 42. Then when retired, they can work in the private sector making more money and then qualify for social security. There will be various age spans of retirees, but this is what the government will be doing more of as the money runs out, especially in Social Security.

The "leaders" of the government claim banks are "too big to fail", but how about the Government? Hasn't it become "too big to fail"? What other entity has annual 3.9 Trillion in spending and and 2.9 Trillion in revenue and growing, annually.

Edited December 14, 2013 by rakman

[55Jay]

Read a number of ideas on mil ret system overhauls from think tank groups over the past few years. Figured something was going to change but held out hope that Fleet Reserve, MOAA and others could bend enough ears to keep current retirees in safe harbor. This immediate system change took me and, reportedly, a few politicians by surprise.

I understand they needed to wheel and deal for real cuts right now vs. a change to the system that doesn't deliver actual "savings" until 20 years down the road as new recruits pass through the new system and start retiring. The door has been cracked on this sacred cow, so I suspect they'll keep massaging until "they" get it where they really want it - no payments at all until age 62.

[Pib]

It's low hanging fruit...allows the politicians to delay the day such similar COLA reduction will need to be applied to Social Security pensions....lot fewer military retiree voters than civilian voters. And of course the politicians inserted this COLA reduction into backroom budget negotiations which didn't have any public hearings and are in a rush to pass before their own self imposed deadline and the holidays. But hey, the bill hasn't passed the Senate yet so maybe the COLA reduction will be taken out...but when setting aside the typical political talk about how some politicians are against the bill it sure sounds like it will indeed pass the Senate when they vote on it this week. Then Barry's signature makes it law.

With strong bipartisan support Washington D.C. wishes Happy Holidays to military retirees under 62.. And in a few years maybe we'll do the same for military retirees 62 and older as that would once again delay having to touch social security pensions...don't want to do it next year as it's an election year.

[55Jay]

Senators Vow COLA Cap Repeal

Jan 30, 2014

Democrats and Republicans on the Senate Armed Services Committee vowed Tuesday to clear with unusual speed a bill to roll back the cap on cost-of-living adjustments for military retirees under age 62, long before it can ding anyone's retired pay or cause more damage to troop morale.

"It is our intention and belief that it should be immediately repealed, and as soon after (saying) ‘immediately' as is humanly possible in a legislative body," said Sen. Carl Levin, committee chairman.

"You guys have already won," Sen. James Inhofe (Okla.), ranking Republican, assured military association leaders who testified against the recent devaluation of military retirement as part of the Bipartisan Budget Act.

At the same hearing, senior Defense officials said for the first time since the COLA cap became law that they too want all retirees and the current force protected from it and any future changes to retirement.

Christine H. Fox, acting deputy defense secretary, and Navy Adm. James A. Winnefeld, vice chairman of the Joint Chiefs, clarified DoD support for full repeal of the cap. Defense Secretary Chuck Hagel had not yet done so, telling journalists and troops only that the cap should be modified to protect medically retired and survivors, which Congress has done.

But Fox said if Congress elects to retain the COLA cap for other younger military retirees, "we strongly recommend it be modified to include grandfathering."

Winnefeld said COLA caps one percent below inflation, set to start January 2016, have caused "considerable and understandable anxiety" among retirees and careerists. It also ignores past guidance from military leaders who have said current retirees and members already in service should be protected from any changes to retirement.

Rep. Paul Ryan (R-Wis.), chairman of the House Budget Committee, has defended the cap since he and Sen. Patty Murray (D-Wash.), chairman of the Senate Budget Committee, included in their December budget deal, which has otherwise been hailed for avoiding another government shutdown and easing automatic cuts of sequestration, particularly for defense.

Indeed Ryan told "CBS This Morning" in mid-December that the cap was a reform "asked for by the defense folks, by DoD…This is a part of their budget that is squeezing all the readiness, all the things they want to buy."

Though not mentioning Ryan by name, several senators asked Fox and Winnefeld whether they or anyone in DoD had proposed, consulted on or supported the COLA cap. Both answered no.

"To my knowledge," Winnefeld said, "there were no DoD officials consulted. We heard about it in the end game, as other people did."

A spokesman for Ryan declined comment on the discrepancy.

Sen. John McCain (R-Ariz.) gave the budget committee a verbal slap for the cap, suggesting members are "not renown for their expertise on military personnel issues."

"This didn't come out of the budget committee," Sen. Roger F. Wicker (R-Miss.), who serves on that committee, shot back. "It came from behind closed doors and was authored by two individuals and presented to us as a package, take it or leave it."

Wicker also rejected Fox's recommendation that Congress delay repealing the COLA cap until after the Military Compensation and Retirement Modernization Commission delivers its report next February.

That "doesn't make any sense if we're all in agreement" on repeal, Wicker told her. "Unless you want to hold out the possibility that we may stick with this."

Wicker reminded any colleagues inclined to delay COLA cap repeal, perhaps to avoid a near-term fight over how to pay for it, that Defense officials gave assurances over and over for more than a year that budget sequestration wouldn't happen. And it did.

The COLA cap represents a broken promise, Wicker said. "And now we are being told, ‘Let's just wait 13 months before we fix that.' I can't go along with that," he said. Committee colleagues soon became a chorus for swift repeal.

The next panel of witnesses added to it. Retired Gen. Gordon Sullivan, former Army chief of staff and president of the Association of the U.S. Army, told senators that in 36 years of service he never had to worry about the safety of his retirement. The COLA cap, however, has this force worried.

Sullivan urged swift repeal too so soldiers "sitting around a stove in Afghanistan in the middle of the night will not be talking about this issue."

[Pib]

I hope they repeal it, but the fact remains our elected representatives (Representatives and Senators from both parties) "clearly knew" the COLA reduction was in the budget bill they overwhelming passed with bipartisan support with only a token effort by a few to strip out the COLA reduction before passing. I expect most really thought the military retirees would bitch for a while but then salute smartly and move on....but to the dismay of our elected representatives it didn't happen that way. Now many of our elected representatives are up-in-arms over the COLA reduction because of the backlash they are getting from military retirees and veterans groups...and oh yea, the majority are up for re-election this November. Any of our elected representatives that play dumb on that are just being a hypocrite (a.k.a., a politician).

[55Jay]

I hope they repeal it, but the fact remains our elected representatives (Representatives and Senators from both parties) "clearly knew" the COLA reduction was in the budget bill they overwhelming passed with bipartisan support with only a token effort by a few to strip out the COLA reduction before passing. I expect most really thought the military retirees would bitch for a while but then salute smartly and move on....but to the dismay of our elected representatives it didn't happen that way. Now many of our elected representatives are up-in-arms over the COLA reduction because of the backlash they are getting from military retirees and veterans groups...and oh yea, the majority are up for re-election this November. Any of our elected representatives that play dumb on that are just being a hypocrite (a.k.a., a politician).

Yes, interesting to see the back peddling. This 1% was a compromise, on the way to complete revamp. Thought it was pretty shady the way it went down, like the ACA.

[55Jay]

Watching CSPAN, Senate session on bill for complete repeal of the 1% COLA reduction.

Harry Reid started with a few words supporting, then launched into unrelated BS. Other speakers came, blabbering on about totally irrelevant topics.

I found interesting was Senator Jeff Sessions' eye opening presentation, which begins at the 1 hour 14 minute mark and runs about 30 minutes. IMO, worthwhile time spent watching this portion of the session. Not sure if I got the imbed code right below, but hopefully the link is visible.

http://www.c-span.org/video/?317682-1/SenateSession5388

http://www.c-span.org/video/?317682-1/SenateSession5388

Edited February 11, 2014 by 55Jay

[Pib]

I expect many of our elected representatives make lip movement that they want to get rid of what they just voted into law...words are cheap...hopefully they will follow through with action.

[Pib]

They did follow through but "very quietly." The COLA reduction repealed except for new folks entering the military on or after 1 Jan 14. All done in a separate bill quietly while the debt ceiling bill was being passed. Why quietly?...because our elected representatives didn't want to admit they were wrong 6 weeks early in passing the COLA reduction.

http://blogs.rollcall.com/wgdb/senate-quietly-clears-military-cola-fix-after-debt-limit-suspense/

[Berkshire]

They did follow through but "very quietly." The COLA reduction repealed except for new folks entering the military on or after 1 Jan 14. All done in a separate bill quietly while the debt ceiling bill was being passed. Why quietly?...because our elected representatives didn't want to admit they were wrong 6 weeks early in passing the COLA reduction.

http://blogs.rollcall.com/wgdb/senate-quietly-clears-military-cola-fix-after-debt-limit-suspense/

Good news for retired military folks. Would have hated to see vets being singled out for punishment due to the incompetence of the politicians.