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thedrifter
08-27-07, 02:41 PM
More pay on the way
Senate, House plans both back 3.5 percent all-ranks increase
By Rick Maze - Staff writer
Posted : Monday Aug 27, 2007 11:32:43 EDT

The 2008 military pay plan taking shape in Congress would set a course for bigger military pay raises for the next five years — and tries, in modest ways, to keep some unfulfilled promises.

Considerable work remains to be done before a final military budget for 2008 is approved, but similarities between the House and Senate versions of the defense authorization bill, HR 1585, provide a basic outline of the pay and benefits upgrades in store for service members and their families.

One sure thing is a 3.5 percent all-ranks pay raise Jan. 1 that was strongly opposed by the White House as “unnecessary.” The Bush administration wanted a 3 percent raise.

That 2008 raise would be the start of a five-year plan likely to be approved by lawmakers for pay raises through 2012 that are one-half percentage point above average hikes in the private sector. This would bind the Bush administration and whatever administration follows it to a course of increasing the competitiveness of military raises and reducing the perceived gap between military and civilian pay from today’s 3.9 percent to about 1.4 percent by 2012.

The Bush White House has openly opposed the bigger raises, but congressional aides who will work on the compromise defense bill said lawmakers are unmoved.

“If anyone in Congress wanted to fight against bigger military raises in time of war, they would just be providing free ammunition to their political opponents,” said one aide.

The chief congressional negotiators for pay and benefits initiatives wll be Sen. Ben Nelson, D-Neb., and Rep. Susan Davis, D-Calif., who head the military personnel panels of their respective armed services committees.

They will be aided by the senior Republican members of the personnel panels, Sen. Lindsey Graham, R-S.C., and Rep. John McHugh, R-N.Y. Nelson, Graham and McHugh have experience in previous negotiations, but Davis, who became the personnel panel’s chairwoman July 1, has no experience in this area.

While several major issues must be resolved, the biggest question hanging over the policy bill is when it might pass, which has significant bearing on when changes might occur.

The House passed its version of the bill in May, but the Senate, after a week of debate, has delayed further consideration of its version, leaving about 300 amendments, some involving military pay and benefits, pending until after Labor Day because of widening disagreement over the administration’s strategy in Iraq. Negotiations on a final bill cannot begin until the Senate passes its version.

Here are major pay and benefits issues, and our predictions for what Congress ultimately will decide when a final compromise bill is passed.
Sure things2008 pay raise

What: A 3.5 percent pay raise for all ranks is included in the House and Senate versions of the bill. This is 0.5 percentage points more than the administration had sought and 0.5 percentage points more than last year’s increase in average private-sector pay. The bigger raise is intended to reduce the estimated 3.9 percent gap between average military and civilian wages.

Who: Applies to all service members, active and reserve.

When: Effective Jan. 1 and first appearing in mid-January paychecks.
Future pay raises

What: Military pay increases for 2009 through 2012 would be 0.5 percentage points greater than average private-sector pay hikes under the House bill.

Based on current economic forecasts, the 2009 raise would be 3.4 percent, and raises for 2010 through 2012 would be about 3.3 percent. The Senate has no similar proposal, although an amendment might be offered later this year to make the same change in law.

When combined with the 2008 raise, the proposal, which is strongly opposed by the Bush administration, would reduce the 3.9 percent pay gap — measured by comparing military and private sector raises since 1982 — to about 1.4 percent by 2012.

Who: Applies to all active and reserve members.

When: Effective each Jan. 1 through 2012.
Critical skills bonus

What: Service members with 25 or more years of service could get a critical skills retention bonus in return for staying in, under a Pentagon proposal included in both bills. Under current law, those people are ineligible.

Who: Most likely special operations and other experienced service members in high-demand fields.

When: Effective as early as Oct. 1.
Reserve re-enlistment bonus

What: The House and Senate bills would simplify conditions for the service re-enlistment bonus, capping the payment at $15,000 for an obligation of at least three years. This would eliminate a tiered bonus structure.

Who: Like those for active-duty forces, reserve re-enlistment bonuses typically go only to reservists in undermanned or critically needed skills.

When: Would apply to bonuses provided after the bill becomes law.
Thrift Savings Plan

What: Payroll deductions for contributions to the Thrift Savings Plan could be made twice a month instead of once under a Pentagon proposal included in the House and Senate bills. The change could provide more stability in paychecks.

Who: Open to all service members.

When: Effective when the bill becomes law.
Medical bonuses

What: The House and Senate bills present similar plans to boost bonuses for medical skills. The maximum special pay for dental officers — now $4,000 or $6,000, depending on length of service — would rise to $10,000 for those with up to three years of service and up to $12,000 for those with three to 10 years of service.

The maximum special pay for medical officers, which is currently paid to three specialties but could be applied more widely, would jump by $25,000, to a new cap of $75,000.

Also in both bills is a proposed $20,000 accession bonus for students in Health Professional Scholarship and Financial Assistance Programs, on top of other scholarship benefits.

Who: About 1,350 dentists, 300 neurologists, radiologists or anesthesiologists, 750 medical students.

When: Effective as early as Oct. 1, but probably not until the bill becomes law.
Income replacement

What: At the Pentagon’s urging, both bills include a clarification of eligibility criteria for reserve income replacement payments.

A mobilized reservist whose monthly military salary is at least $50 less than his civilian wages could receive a monthly payment of up to $3,000 to make up for the loss if he qualifies for one of these situations:

* A full month of service after 18 months of continuous duty.

* 730 cumulative days of involuntary service in a 1,826-day period.

* An involuntary mobilization of 180 days or more that falls within 180 days of a previous mobilization.

Also, income replacement would be allowed for reservists whose active service has been extended while being treated or while awaiting a physical evaluation for combat-related injuries or illness.

Who: Up to one-third of mobilized reservists receive less money from the military than their civilian jobs, but very few of those who lose money will meet the eligibility thresholds, even with the changes.

When: Effective when the bill is signed, but the income replacement program ends Dec. 31, 2008, unless extended.
Referral bonuses

What: Two programs providing up to $2,000 for recruit referrals would be extended through 2008 under the Senate bill.

One is an Army-only program for enlistment referrals. The second would be a new, defensewide bonus of up to $2,000, paid in two installments, for referring someone for appointment as an officer in a health profession.

Who: Active and reserve members, retirees and civilian employees could get the bonuses, though the Army enlistment referral is available only to those affiliated with the Army and its components. Recruiters and family members of those being referred are ineligible.

When: The Army’s recruit referral program already exists. The health profession bonus would be authorized when the bill becomes law but would not be paid until a formal program is established.
Sea pay

What: Career sea pay would be authorized for the off-crews of multicrew ships under the House and Senate bills. The change, sought by the Navy, is considered important to provide guaranteed pay levels for the crews of new classes of ships.

Who: Crews of the Littoral Combat Ship.

When: Effective as early as Oct. 1.
Vehicle shipment

What: Service members accompanied by dependents who are of driving age would be allowed to ship an additional vehicle at government expense to duty stations in Alaska, Hawaii and Guam, under provisions in the House and Senate bills.

Who: About 10,000 families a year would benefit.

When: Applies to movement orders received after the bill is signed.
Hardship-duty pay

What: The House and Senate bills would raise maximum monthly hardship duty pay to $1,500 — 10 times the current limit — and allow lump-sum payments instead of traditional monthly payments.

Who: The Army plans on using this to support its new Warrior Pay program.

When: Authorized when the bill becomes law, but each service would determine whether or when to provide increased payments or to allow lump-sum payments.
Reserve electronic screening

What: An allowance of up to $50 a year could be paid to an Individual Ready Reservist who, at least once a year, checks in electronically to provide an update on his location, health and other issues, under a Pentagon proposal in both bills.

The stipend is thought to be less expensive than requiring IRR members to muster once a year to a base for screening and likely would be used to track recently separated troops with critical skills.

Who: More than 258,000 people could be eligible, but far fewer are likely to be screened.

When: Effective when the bill is signed, but it’s a discretionary program that would be used, or not used, as the services wish.
Likely candidatesBAH for reserve recruits

What: National Guard and reserve members attending initial military training who do not have dependents would be eligible for military housing allowances if they are making either mortgage or rent payments on off-base housing, under a provision of the House bill. The Senate bill has nothing similar.

Current law, which the Defense Department asked to have changed, prevents people without dependents from getting BAH during accession training.

When: Effective as early as Oct. 1.

Who: About 30,000 people a year are expected to be helped by receiving payments averaging $840 a month for the 4½ months of initial training.
Obstetric travel

What: The Senate bill proposes to provide travel allowances to pregnant dependents on accompanied assignments with service members in remote areas outside the U.S. The allowances would help the dependents travel to the U.S. so they could give birth near their families.

The House bill does not include the new benefit. Current rules allow travel to Germany or Japan for childbirth, but not to the U.S.

Who: Only a handful of military families a year would need the benefit.

When: Would apply to travel after the bill becomes law.
Drill travel allowance

What: The House bill proposes providing up to $300 in travel expenses for reservists whose monthly drills are outside normal commuting distances. The services would determine eligibility. The Senate bill has no similar provision at the moment, but an amendment authorizing a similar program is possible.

Who: Expected to be limited to people in critical skills.

When: Would not take effect until Oct. 1, 2008, and would expire on Dec. 31, 2014. Likely to pass but may never be used.
Concurrent receipt

What: The House and Senate bills take different approaches to expanding concurrent receipt benefits for disabled retirees who received disability retired pay from the military and did not complete the 20 years of service needed to qualify for Combat-Related Special Compensation.

So-called Chapter 61 retirees have been left out of changes in law that allow concurrent receipt of military retired pay and veterans’ disability compensation.

The Senate bill would make disabled retirees with less than 20 years of service eligible for concurrent receipt if they have combat or combat-related conditions. The House bill is more limited, covering those with 15 to 20 years of service and combat-related disabilities rated at 60 percent or higher.

Who: About 13,000 people would benefit under the Senate bill, 8,000 under the House bill.

When: Effective when the compromise bill becomes law. Some plan is likely to pass but only after a compromise.
Special Survivors Indemnity Allowance

What: The House bill creates a new allowance of up to $40 a month for those eligible for both military survivor benefits and veterans’ dependency and indemnity compensation.

Payments are intended to partly offset the cut in military benefits required of those also receiving veterans’ benefits as a result of a service-connected death of a military spouse, commonly called the “widow’s tax.” The Senate could have its own proposal to eliminate the offset.

Who: Surviving spouses and ex-spouses of deceased military retirees could qualify.

When: Payments begin Oct. 1, 2008, and end Feb. 28, 2016, unless extended in the future. Some new benefit will pass, but it might not be the House initiative.
Tuition assistance

What: The Senate bill would clarify that drilling National Guard and reserve members are eligible for tuition assistance if they agree to serve for four years after their courses are completed.

It would also make members of the nondrilling Individual Ready Reserve eligible for tuition assistance if they are in military specialties deemed critical by their service. Nothing similar is in the House bill.

Who: Potentially, more than 2 million people could receive tuition help. But the services would decide who, if anyone, is eligible for help. Eligibility is likely to be severely limited.

When: Authorized when the bill becomes law, but nobody would receive money until the services prepare guidance. Very likely to pass.
Long shotsAssignment incentive pay

What: Reservists who served in a combat zone from January 2005 to January 2007 could receive $1,000 for each month beyond 22 months that they were deployed in a combat zone since 2003, under the House bill. The Senate bill includes a one-year extension of assignment incentive pay, without any eligibility change.

Who: About 3,700 people, mostly Army Guard and Army Reserve members, would qualify, with average payments of about $4,000. Not likely.

When: Retroactive payments would be authorized, but not paid until the bill is signed.
Leave carry-over

What: The Senate bill would let service members carry up to 90 days of leave from one year to the next and allow them to sell accumulated leave in excess of 120 days back to the government.

Each day of leave would be worth, on average, $155 per person per day. Current law allows carry-over of 120 days of leave for those who have recently served on a contingency operation and allows 60 days for all others.

Current law allows up to 60 days of leave to be sold back to the government either when re-enlisting or separating from service.

Who: About 150,000 personnel sell back leave each year.

When: Effective when the bill becomes law. Not likely.
Bonus consolidation

What: The House bill includes a Pentagon proposal to combine more than 60 bonuses and special and incentive pays into eight categories and increase maximum possible payments.

The idea is to give the services more flexibility to tailor bonuses and to raise and lower amounts without needing congressional approval.

The Senate bill has no similar provision.

Who: The majority of service members receive some bonus or incentive, including everyone deployed to a combat zone.

When: Would take effect in 2009. Unlikely.
Free postal benefit

What: The House bill proposes to have the government pay for mailing one package every other month to a service member deployed in a combat zone. Deployed troops would receive a voucher for the free mailing that they could give to family or friends.

The Senate has no similar provision, but an amendment is pending to the Senate bill that would create a similar program.

Who: Troops in Afghanistan and Iraq or those hospitalized for combat-related injuries or illness.

When: Effective when the bill becomes law, but it would take time to implement. Not likely.
Reserve retired pay

What: Under the Senate bill, reservists who are mobilized will receive future retired pay three months sooner than age 60 for every three months of active service, down to a minimum retirement age of 50. The House bill includes no similar proposal.

Who: Unless massive mobilizations of Guard and reserve members are ordered, few people are expected to qualify.

When: Only service after the bill becomes law would count. Unlikely.

Ellie