Military Retiree Expo Camp Pendleton

Legislative & Benefits Update

September 18, 2010

Presented by

Katherine O’Neill TracyCOMMANDER, USN (Ret)

Deputy Director, Benefits Information and Financial Education Department

Military Officers Association of America

Agenda

Who We Are

The Military Coalition

Current Hill Environment & 2011 Goals

Defense Bill Status

Health Reform

SBP/DIC

Effects of Remarriage

Q & A

MOAA

Founded in 1929

Represents over 370,000 Members

Members include (former and current) Commissioned/Warrant Officers of the Uniformed Services

Focus on Active, Guard & Reserve, Retired & Survivor Issues

Advocates for a Strong National Defense with Congress

The Military Coalition

Organized in 1985

32 Military/Veterans Assns

Represents over 5.5 Million Members

Each With Its Own Programs/Goals

United Purpose: Strong Advocacy

Focus on Active, Guard & Reserve, Retired & Survivor Issues

Operates Under “Rule of 5”

The Military Coalition

AAAA

AFA

AFSA

AFWOA

AMSUS

AMVETS

AUSA

AUSN

COA

CWOA

EANGUS

FRA

GSW

IAVA

JWV

MCA

MCRA

MCL

MOAA

MOPH

NAUS

NCOA

NERA

NGAUS

NMFA

REA

ROA

SMCAF

TREA

USCGPOA

USAWOA

VFW

Military Experience in Congress

103rd 105th 107th 108th 109th 110th 111th

Senate 60% 48% 38% 35% 31% 29% 25%

House 41% 32% 30% 27% 25% 23% 22%

Current Hill Environment

Afghanistan Obligations to Wounded & Survivors Stress on the Force Health Care Reform Implementation Defense Spending

People vs. Weapons Costs

Financial Reform, Economic Recovery, & the Federal Deficit

“Entitlement” Spending Commission

Heard on the Hill

“Health care is eating us alive.”- Robert Gates (SecDef)

"Rising personnel costs could dramatically affect the readiness of the department."

- Dr. Clifford Stanley (USD P&R)

Past Entitlement Commissions

All Govt Programs to be Scrutinized Past Commissions – no Consensus Recommendations/Findings Included:

Cap combined mil retirement & Social Security to 80% of active duty pay

Raise Fed Retirement to age 60 Severely Restrict COLAs on Fed Annuities Means-test Medicare/Raise Eligibility Age Raise Social Security to age 70

Deficit Commission

MOAA Testified June 30

Report Due Dec 1st

14 of 18 Commissioners Must Agree

Issues: Defense Budget; COLAs, TRICARE/TFL Fees;

Social Security; Medicare; Taxes

Key 2011 Goals

• Bar Excess Health Cost-Shifting • Increase End Strength to Match Mission • Fairer Treatment of Wounded & Families• Upgrade Health Care Access• Restore/Sustain Pay Comparability • End VA Offsets to Ret Pay & SBP• Improve Family Support Pgms/Funding• Raise PCS Reimbursements• Improve G/R Health Coverage/Ret.• More Consistent Disability Ret. System

Currently Serving Issues

Issue House Senate

End Strength – USA +7K Pay Raise 1.9% 1.4%

Family Separation Allowance & Imminent Danger Pay Increase

“Fit But Unsuitable” Separations

DoD Report

Bar Them

15-Yr REDUX Decision Education DoD Report

Retiree/Survivor Issues

Issue House Senate

SBP/DIC Offset SSIA for Forgotten Widows

Repeal Offset (Amdt)

Phase Out Disability Offset for Chapter 61 Retirees

Incl. in Tax Extender

Bill

(Amdt)

G/R Rtmt Age – Reduce 3 Mos for each 90 Days Active since 9/11 (Retro to 9/11/01)

(Amdt)

SBP Special Needs Trust for Incapacitated Survivors

(Amdt)

Health Care Issues

Issue House Senate

TRICARE for children to age 26 Bar TRICARE Fee Hike Standard,

Prime, RxBar only Inpt Hike

Caregiver benefits $3,500 Moving Expense

Stipend, Healthcare, Respite

Sense of Congress on TRICARE fees

Amdt Expected

Health Care Reform

What’s Changed?For TRICARE Beneficiaries

Under Age 65? Not much, if anything at all!

Over Age 65? Cuts in Medicare Advantage HMOs Cuts in Rural Hospitals Crack down on abuse of DME

Qualifying Coverage?

Yes TRICARE Medicare VA Health Care

All qualify under the new Health Care Legislation

Survivor Benefit Program(SBP)

SBP Still Not Fixed

• Paid Up SBP is in place

• Social Security Offset was eliminated…

• But the SBP-DIC Offset was not

• Offset is dollar-for-dollar:

SBP $ - DIC $SBP “Benefit”

Concurrent Receipt

Full Payment ofRetired Pay and VA Compensation

Congress Has Fixed For Some

CRSC CRDP (Cmbt (Non-

Cmbt Related)

Related)

20+ Yrs/100% Disability Yes Yes20+Yrs/50+% Disability Yes Phasing

In

20+ Yrs/0-40% Disability Yes NoUnder 20 Yrs—Med Retire Yes No

Concurrent ReceiptHaves vs. Have-nots

HAVESHAVES

Have-notsHave-nots553k553k

270k270k

How to Contact Your Congressional

Representatives

Send a Letter…

MOAA Made It Easy -

Go to:

Print, Sign, & Mail the Letters Addresses Are on the Letters

www.moaa.org/tearoutletters

OR use email…

WWW.MOAA.ORG

WWW.MOAA.ORG

The Effects of Remarriage

on Benefits & Programs

for

Surviving Spouses

Military Benefits

Upon Death of Military Member

Surviving Spouse remains eligible for all benefits

(medical care, commissary, exchange, theater, etc.)

Except space-available travel

Military Benefits

Effect of Remarriage (non-service member)

Upon remarriage lose All

military benefits

Military Benefits

Remarriage Terminates

all benefits

except medicalwill be reinstated

(if subsequent marriage ends in death or divorce)

Military Survivor Benefit Plan (SBP)

Upon Death of Military Member If elected SBP

SBP Payments Begin

SBP

Effect of Remarriage Before Age 55

SBP Payments Suspended

Remarriage TerminatesSBP Payments Reinstated

SBP

Effect of Remarriage On or After Age 55

No Effect on SBP

Dependency & Indemnity Compensation (DIC)

DIC is awarded to a surviving spouse of a disabled veteran:

If the death is attributed to an injury or disease incurred on active duty

Or - If the retiree had 100% VA disability rating

– 10+ years – 5 continuous years from release of active duty

Or - Former POW rated 100% one year prior to

death

DIC & SBP

SBP is reduced One $ for each $ received in DIC

SBP premiums reimbursed - if DIC is applied for within 1 year of service member’s death

SBP & DIC

Effect of Remarriage Before

Age 55 SBP & DIC Suspended

DIC

Effect of Remarriage Before Age 57

DIC Suspended

Remarriage TerminatesDIC Reinstated

SBP & DIC

Effect of Remarriage On or After

Age 55 but before Age 57

DIC Suspended&

SBP Increased *

SBP & DIC

Effect of Remarriage On or After Age 57

You get to keep both!SBP & DIC

Social Security

Upon Death of Military Member Can receive Social Security Survivor

Benefits Reduced rate

Age 60

Social Security

Effect of Remarriage Before Age 60

Not Eligible on Military Members Record

Remarriage Terminates

Eligibility Restored

Social Security

Effect of Remarriage After Age 60

No Effect on Social Security Entitlements

CHAMPVA

Family Members of Veterans Permanent & Total disability

(service-connected) Service connected death Die while having 100% disability

CHAMPVA

Effect of Remarriage Lose CHAMPVA

Remarriage Terminates CHAMPVA Restored

Permanent ID Cards

FY 2005 Defense Authorization Act Spouses & Survivors 75 & Older Began Sep 05

FY 2007 Disabled dependents Began Jan 07

Questions?

Military Officers Association of America

Benefits Information Department &Financial Education Department

201 N. Washington StreetAlexandria, VA 22314-2539

1 800 234-6622

Email: BenInfo@moaa.orgWeb: www.moaa.org