With the proposed Ryan-Murray budget deal being voted on this week, military retirees are being urged to let their Congressional Members know how the Cost-of-Living-Adjustments (COLA) cap on military retired pay will adversely affect them over the course of their retirement. But this is only one part of the Congressional attack on compensation aimed at both the currently-serving and retirees.
Let’s not forget that the other deal announced recently — the National Defense Authorization Act for Fiscal Year 2014 (NDAA) — inflicts some pay pain on those currently-serving, which will translate to more pain when they retire. Our active duty service members should be getting a 1.8 percent pay raise, but the NDAA provides only a 1 percent raise.
And, oh by the way, in 2014, retirees will receive their full 1.7 percent COLA. The phase-in of the reduction in the COLA for retirees ages 62 and under, called for in the budget bill, doesn’t start until 2015 and will happen over 3 years. Projections on active duty pay call for smaller raises than the civilian wage increase during that time. So even if the phase-in of the reduced retired pay goes into effect, those currently serving will probably receive a few smaller pay increases than retirees. And remember, smaller active duty pay raises translate into lower retiree pay when that active duty member retires.
Congressional decisions are spreading the pain to all military people in a way disproportionate to the rest of the Nation. We firmly believe the changes in pay and retirement should not have been done piecemeal by Congress without waiting for the recommendations of the Military Compensation and Retirement Modernization Commission, established to study compensation and retirement.
We can’t talk about the harm to one group of our community without talking about the damage long term to the folks serving now if they’re denied the pay raises equal to civilian wage growth. The families of our future retirees are getting a double whammy–one punch is the lower pay raise now and the other is the lower retiree COLAs in the future. At least there will be a catch-up for the retirees when they turn 62. There’s no catch-up on active duty pay losses.
Let’s make our leaders understand the effects these deals AND continued sequestration are having on all military people.
Let Congress know that budgets should not be balanced on the backs of those who have already given so much. Despite the urgency on the budget bill, we need to focus on the effects to entire life cycle of service – from currently serving to retired. Write your Members of Congress and let them know how you feel.
And, on another note, with these hits to military families’ wallets, commissary savings become even more important! We continue to urge the Department of Defense to preserve the commissary system and the savings it provides.