Time to reform Congressional pension and benefits ???? Yeah right!

[BigDuke06]

Panel wants to alter retirement plan for ‘under 16’ military

 

 

Military members and retirees have more financial darts to dodge after a second bipartisan task force unveiled a different set of cost-cutting recommendations on Wednesday.

The Debt Reduction Task Force, co-chaired by former Republican Sen. Pete Domenici and economist Alice Rivlin, takes sharper aim at the military community including active duty forces still at war in Afghanistan.

In the unlikely event Congress approves the Domenici-Rivlin plan for cutting military retirement, members who haven’t served more than 15 years would find themselves under a cheaper, “more flexible” and complex plan.

Proponents argue that many more members under the proposed plan would qualify for some retirement, at age 60, if they serve 10 years or more. But completion of a traditional 20-year career no longer would qualify for an immediate annuity on leaving service. Retired pay would begin at age 57.

Debt Panel II began its work in January at the Bipartisan Policy Center, a Washington D.C. think tank founded by four former Senate majority leaders. Like last week’s report from the National Commission on Fiscal Responsibility and Reform this report warns of an approaching debt tsunami that could destroy America prosperity if government spending isn’t slashed and taxes raised.

On retirement, Debt Panel II embraces reforms proposed by the 10th Quadrennial Review of Military Compensation in 2008. The idea is to allow more members to earn some retirement while slashing overall program costs.

Two of four features -- a defined annuity and a government-funded Thrift Savings Plan with vesting after 10 years -- would apply to all members who get pushed under the new plan. The annuity formula is familiar at 2.5 percent of average annual basic pay (but for their highest five earning years not the highest three average) multiplied by total years served. Payments would start at age 60 for those who serve 10 to 19 years and at 57 for those who serve 20 or more.

Critics argue the plan is too complex and would leave members confused as to the real value of their retirement. Yet Debt Panel II proposes transitioning most current members to the new plan.

Recommendations targeting Tricare also, in effect, are pulled off the shelf. That is, they were part of President George W. Bush’s final defense budget request, provisions that Congress simply had ignored.

Domenici and Rivlin note again Tricare fees haven’t been raised since they were set in 1995 and, at the time, covered 27 percent of program costs. Now the frozen fees cover only 11 percent. And Medicare-eligible retirees, the report says, “currently do not share in their Tricare costs.”

So Debt Panel II says Tricare fees for working-age retirees should be raised high enough to again cover 27 percent of costs. A pay expert who worked for the task force said the plan assumes that enrollment fees for Tricare Prime would be raised from $460 a year for families and $230 for individuals and tiered based on gross retired pay.

For example, a married retiree with less than $20,000 in annual retired pay would pay $730 in year one, $900 in year two. These larger incremental raises would stop in year five when the yearly fee hit $1,260. Those with retired pay of $20,000 to $40,000 would pay more. The highest enrollment fees, for those drawing more than $40,000 in retired pay, would top off in year five at $2,460, or $2,000 higher than they pay now.

These rates then would be adjusted to keep pace with inflation. Fees for outpatient visits would more than double, to $28. And working-age retirees using the fee-for-service Tricare Standard plan or Tricare Extra would be charged an enrollment for the first time of $150.

Pharmacy co-pays in Tricare retail network – now $3 for generic, $9 for brand-name drugs on formulary and $22 for non-formulary drugs -- would be reset at zero for generic drugs, $15 for brand names on formulary and $45 for brand names off formulary. Without specifying numbers, the panel also recommends that Medicare-eligible retirees using Tricare for Life as a supplement to Medicare begin paying “minimal cost-sharing” amounts.

Domenici quoted Adm. Mike Mullen, Joint Chiefs chairman, as calling rising U.S. debt “the most serious threat to America’s national security.” ,To comment, send e-mail to milupdate@aol.com or write to Military Update, P.O. Box 231111, Centreville, VA, 20120-1111

[3GeronimoPA]

I suggest congress limit their raises and benefits as well. The physical demands placed on warfighters is so high the pension benefits being drawn at the completion of 20 years is necessary. Additionally, many people who can easily get out of the military (PAs!) remain in the military until the 20 year mark specifically to attain the current retirement benefits. Why would I stay until 20 years in order to not draw a retirement until 57? I'd rather just get out now and start working on 30 years of a career elsewhere and let my 10+ years behind me catch up at age 57. Don't get me wrong I am convinced of two things, one-it's not about the money/retirement; two-it's never been worth the money/retirement. It's about the guys to our left and right. The military has taken its toll on my marriage, my children, and all of my relationships. They want to gank the only two things we give our vets after they destroy their lives for this nation, retirement benefits and TRICARE. This Panel cannot evaluate the effect of America turning its back on its Soldiers. There will be a mass exodus. I have read about this in a few places and with our up coming congress I doubt this will see the light of day.

 

This is the equivalent of saying, "We can save money at home by turning off the electric and cutting the grocery bill out". How about cutting pork-barrel spending, reducing kick backs off of stupid uniform changes, new equipment that no one wants, reducing the first class/private flights congress and their cronies take to do their business, reducing our largest contribution to the anti-American organization known as the UN who live like kings off our dollar, changing conference rooms for the government from the Waldorf Estoria to Comfort Inns and military halls, BAN POWERPOINT from the military so we can cut the number of admin officer slots and secretary jobs, make the Air Force get rid of their active duty towel boys in the gyms and hotel clerks, pull us out of Kyrgyzstan and Korea, Drill/Refine our own oil until we get a suitable replacement source of energy. Stop letting Carlson Wagonlit charge us 300% mark-ups on military flights on civilian aircraft. How about we stop paying $20 for a screwdriver and all of the other mark-ups at SSSC on our military installations, change a military PCS from every 3 years to every 4.

 

These guys asked the wrong question is why we got the wrong answer. They asked, "How can we reduce military spending?". The question should have been, "How can we reduce military spending without taking money out of troops pockets?". Of course the government would never ask a panel to look back at itself and the benefactors of crooked dealings to find ways to reduce spending. It wants to milk it out of its broken war-torn Soldiers. Shameful. I wish I could say I expected more but we don't have statesmen running our country anymore... Just politicians these days.