Update on Concurrent Receipt for Chapter 61 Medical Retirees
6/4/10 - While the FY2011 National Defense Authoriztion Act (NDAA) passed by the House in May did not include an expansion of concurrent receipt making more disabled retirees (Chapter 61) eligible to receive both military retired pay and veterans disability compensation as was requested by the President and hoped for by NAUS, H.R. 4213, the American Jobs and Closing Tax Loopholes Act, does include a provision to provide concurrent receipt to some Chapter 61 medically retired military personnel. However, because sufficient offsets were not found, the provisions would only be funded for two years. Beginning Jan 1, 2011, medical retirees with less than 20 years of service who are rated 100 percent disabled or Individually Unemployable (IU) by VA would be allowed to receive full veterans disability and military retired pay. Beginning Jan. 1, 2012, and until Sept. 30, 2012, individuals with fewer than 20 years of service who have disabilities rated at 70 percent or greater would receive the concurrent benefit as well. 12,000 retirees would benefit from the change on Jan. 1, 2011, and another 20,000 on Jan 1, 2012. The remaining Chapter 61 retirees, about 100,000 in all, could benefit from this legislation if enough funding is found to continue the plan beyond FY 2012.

Social Security Petitions Delivered to Congress
4/20/10 - NAUS President Bill Matz and Legislative Director Rick Jones visited Justin Gabrielle, the Legislative Director for Rep. Ginny Brown-Waite (D-FL), to discuss the state of the Social Security system. They also delivered representative samples of the more than 30,000 signed petitions collected in support of the Congresswoman ’s Protect Social Security Act (H.R. 236).

The legislation would ensure current Social Security beneficiaries continue to receive the benefits they are now entitled to, even if there are changes to future benefits. NAUS is a strong supoprter of efforts to ensure that Social Security benefits are protected, especially for those retirees who paid into the system their entire careers, and are now dependent on these promised benefits in their retirement.

100,000 Disabled Retirees Owed Back Pay
Approximately 100,000 disabled retirees are due retroactive pay. The underpayment occurred as DoD and VA officials implemented a complex series of laws, starting in 2003, to end the ban on “concurrent receipt” of both military retirement and VA disability compensation. Military columnist Tom Philpott credits discovery of this underpayment to several retirees, including NAUS' own Board of Directors Member Col Win Reither, USAF (Ret). Thanks, Win!

Those eligible for back pay have combat-related injuries and illnesses, or service-connected disabilities that the VA rates as at least 50 percent disabling. All of them also had military careers lasting 20 years or longer. As many as 20,000 recipients of Combat-Related Special Compensation (CRSC) and 78,000 recipients of Concurrent Retirement and Disability (CRDP) are owed back pay. 

No More "Check's in the Mail..."
5/6/10 – The Treasury Department is switching millions of people who receive Social Security and other federal benefits from paper checks sent in the mail to electronic payments. Announced on Earth Day in April, the switch will save more than $300 million each year through 2016, and then $125 million each year thereafter. The switch will start with new enrollees. People already receiving checks in the mail will be shifted beginning in March, 2013. "We want to allow plenty of time to educate benefit recipients," said Dick Gregg, acting fiscal assistant secretary.

A bank account will not be necessary to receive benefits payments electronically, as Treasury will send a debit card preloaded with the money, though currently only one free transacation on the card per month is allowed.

2010 COLA Update
1/10 - The overall change in consumer prices last year was negative (deflation), so there was no COLA increases in military retirement pay or Social Security benefits in 2010 - the first time there has been no COLA since 1975. It’s important to note, however, that even though the inflation index change from July through September (the period used under current law to set the following year’s COLA) was negative, pay and benefits were not reduced – they just did not change from 2009.

Retired Officers Have Edge Over Civilian DoD Employees
The Defense Department is increasingly turning to retired military officers to fill its top civilian ranks. The number of retired servicemembers pursuing civilian jobs in DoD increased after 2003, when former Defense Secretary Donald Rumsfeld waived a rule that made retirees wait six months before they could take a civilian DoD job. In 1999, the so-called dual com-pensation penalty ended, allowing retirees who work for DoD to draw both their full retirement and civilian salaries. In 2003, retired military employees in DoD GS-14, -15 and Senior Executive Service levels ranged from 12-16%. Now they range from 20-26%, nearly doubling in just over 4 years. Retired officers are often viewed as more qualified than career civilians because of their education, training and leadership experience.

Cap Lifted on Military Retired Pay
Retiring military personnel with 30 years or more of service no longer have their retirement pay capped at 75% of base pay because of changes that were enacted in the 2007 National Defense Authorization Act. For example, a member who served 32 years would receive 80% of their base pay and a member who served 42 years would receive 105%. More details about the retirement pay are available from the Defense Finance and Accounting Service.

NOTE: Be sure to check out our TRICARE/Health Care News section for other news affecting uniformed services retirees.