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"President Barack Obama Monday hinted at support for the Military Compensation and Retirement Modernization Commission’s recommendation in January to cut military pensions by 20 percent. One of the suggested reforms is to slash military pensions by 20 percent, and to end Tricare, the existing military healthcare system, replacing it with private insurance."
Anyone here getting a military pension? Would the proposed 20 percent cut be for new members of the military, current members of the military who haven't retired yet, or everybody including current military retirees receiving a pension?
From looking at news article in Stars and Stripes it looks like it will replace the pension plan with a 401k type so that military personnel who don't serve 20 years have some type of retirement savings. This is like what many companies did in the late 1990s. When companies did this they offered a cash out option to employees who did not meet the pension tenure requirements. Retirees pensions were not effected. This was a recommendation of a bipartisan committee and has support
We have a military pension and Tricare. I need to read this and will respond later.
The bill being discussed here was actually passed by Congress last December.
This was taken up with inputs from many departments including thePentagon.
Maybe this link will give you more information about this bill..as the OP included a very narrow version..and painting BO as the only one wanting this. A lot of these cuts are being suggested..due that Sequester Bill which was allowed to go forward because, as Many may forget..about the fiscal cliff fight to get a budget done..stalemate..thus prior Sequester Budget held over Congress Heads, designed to force them to come together) ended up being implemented. Also that Sequester Bill had huge Military cuts proposed included....I'll try to locate that original Sequester Bill.. see below please.
In the meantime here's a more informational link~~
snip~
Budget Control Act of 2011[edit]
See also: Sequester (2013)
In 2011, sequestration was used in the Budget Control Act of 2011 (Pub. L. 112-25) as a tool in federal budget control.[2] This 2011 act authorized an increase in the debt ceiling in exchange for $2.4 trillion in deficit reduction over the following ten years. This total included $1.2 trillion in spending cuts identified specifically in the legislation, with an additional $1.2 trillion in cuts that were to be determined by a bipartisan group of Senators and Representatives known as the "Super Committee" or officially as the United States Congress Joint Select Committee on Deficit Reduction. The Super Committee failed to reach an agreement. In that event, a trigger mechanism in the bill was activated to implement across-the-board reductions in the rate of increase in spending known as "sequestration".[14]
The Sequestration Transparency Act of 2012 (Pub. L. 112-155) requires the president to submit a report to Congress on a potential sequestration which may be triggered by the failure of the "Super Committee" to propose and for Congress to enact, a plan to reduce the U.S. Federal Budget by $1.2 trillion as required by the Budget Control Act.[15] The report – which was issued September 14, 2012, and was close to 400 pages long – provided the warning that "sequestration would be deeply destructive to national security... and core government functions".[16]
The bill being discussed here was actually passed by Congress last December.
This was taken up with inputs from many departments including thePentagon.
Maybe this link will give you more information about this bill..as the OP included a very narrow version..and painting BO as the only one wanting this. A lot of these cuts are being suggested..due that Sequester Bill which was allowed to go forward because, as Many may forget..about the fiscal cliff fight to get a budget done..stalemate..thus prior Sequester Budget held over Congress Heads, designed to force them to come together) ended up being implemented. Also that Sequester Bill had huge Military cuts proposed included....I'll try to locate that original Sequester Bill.. see below please.
In the meantime here's a more informational link~~
snip~
Budget Control Act of 2011[edit]
See also: Sequester (2013)
In 2011, sequestration was used in the Budget Control Act of 2011 (Pub. L. 112-25) as a tool in federal budget control.[2] This 2011 act authorized an increase in the debt ceiling in exchange for $2.4 trillion in deficit reduction over the following ten years. This total included $1.2 trillion in spending cuts identified specifically in the legislation, with an additional $1.2 trillion in cuts that were to be determined by a bipartisan group of Senators and Representatives known as the "Super Committee" or officially as the United States Congress Joint Select Committee on Deficit Reduction. The Super Committee failed to reach an agreement. In that event, a trigger mechanism in the bill was activated to implement across-the-board reductions in the rate of increase in spending known as "sequestration".[14]
The Sequestration Transparency Act of 2012 (Pub. L. 112-155) requires the president to submit a report to Congress on a potential sequestration which may be triggered by the failure of the "Super Committee" to propose and for Congress to enact, a plan to reduce the U.S. Federal Budget by $1.2 trillion as required by the Budget Control Act.[15] The report – which was issued September 14, 2012, and was close to 400 pages long – provided the warning that "sequestration would be deeply destructive to national security... and core government functions".[16]
I'm not a military retiree but I am a federal retiree. My reason for asking was not politically motivated. I just wanted to know if they could cut the pensions of those already retired or could only do it to people who either hadn't retired yet or apply the changes only to those just joining the military. My thought was that if they could do a 20% cut to the already retired military, then they could do the same thing to me, a non-military retired fed, down the road.
From looking at news article in Stars and Stripes it looks like it will replace the pension plan with a 401k type so that military personnel who don't serve 20 years have some type of retirement savings. This is like what many companies did in the late 1990s. When companies did this they offered a cash out option to employees who did not meet the pension tenure requirements. Retirees pensions were not effected. This was a recommendation of a bipartisan committee and has support
"President Barack Obama Monday hinted at support for the Military Compensation and Retirement Modernization Commission’s recommendation in January to cut military pensions by 20 percent. One of the suggested reforms is to slash military pensions by 20 percent, and to end Tricare, the existing military healthcare system, replacing it with private insurance."
Anyone here getting a military pension? Would the proposed 20 percent cut be for new members of the military, current members of the military who haven't retired yet, or everybody including current military retirees receiving a pension?
If it's the latter, I think that's horrible.
I have a military pension. you retire with the pension you agreed to on your contract.
They have been changing the pension plan for years. This is nothing new.
I missed the straight 50% pension by a few months. When I retired it was the average of your last three years base pay.
When I left 10 years ago, I think it was at 40% and you had to decide at your ten year mark if you wanted a regular pension or savings plan. I might have the details wrong cuz it was so long ago, but like I said, nothing new.
I have a military pension. you retire with the pension you agreed to on your contract.
They have been changing the pension plan for years. This is nothing new.
I missed the straight 50% pension by a few months. When I retired it was the average of your last three years base pay.
When I left 10 years ago, I think it was at 40% and you had to decide at your ten year mark if you wanted a regular pension or savings plan. I might have the details wrong cuz it was so long ago, but like I said, nothing new.
Define "new." Both my wife and I were military brats. Our fathers both retired in the early 60s at 50% pay with military healthcare benefits and CHAMPUS depending on your proximity to a base, commissary and PX/BX privileges.
I entered the military in the mid-60s and had I retired would have had the same retirement package but I left eight years later.
One thing both our parents' generation and mine groused about was the degradation of benefits and access which now seem miniscule compared to what has occurred and been proposed. In a word, I find it disgraceful. The pay is way up from those early days but that's about it.
"President Barack Obama Monday hinted at support for the Military Compensation and Retirement Modernization Commission’s recommendation in January to cut military pensions by 20 percent. One of the suggested reforms is to slash military pensions by 20 percent, and to end Tricare, the existing military healthcare system, replacing it with private insurance."
Anyone here getting a military pension? Would the proposed 20 percent cut be for new members of the military, current members of the military who haven't retired yet, or everybody including current military retirees receiving a pension?
If it's the latter, I think that's horrible.
I looked at some articles but could not find any specifics. As others pointed out, the proposal is to replace the military pension with a reduced defined benefit and a TSP with some matching similar to FERS. One article identified the matching as 6% of salary. Currently military can contribute to TSP but there is no matching except for certain critical specialty positions that are on active duty. It is highly unlikely that this would apply to current retirees as they can no longer contribute to TSP.
The Tricare changes could be phased in. One article stated that the premiums would be less than that currently paid by federal employees which is 25-30% of the premium costs. Based on what co-workers with Tricare have told me, this would be an improvement (assuming that you have health issues). In my area, Tricare has been contracted out to the same health organization that handles the area Medicaid patients. It is very institutional clinic type care and you can wait 1-2 hours for a simple appointment. You are allowed to see other doctors but the tests that they prescribe will not be covered.
Last edited by ABQ2015; 04-04-2015 at 03:17 PM..
Reason: Clarified TSP matching
Define "new." Both my wife and I were military brats. Our fathers both retired in the early 60s at 50% pay with military healthcare benefits and CHAMPUS depending on your proximity to a base, commissary and PX/BX privileges.
I entered the military in the mid-60s and had I retired would have had the same retirement package but I left eight years later.
One thing both our parents' generation and mine groused about was the degradation of benefits and access which now seem miniscule compared to what has occurred and been proposed. In a word, I find it disgraceful. The pay is way up from those early days but that's about it.
I still have all those benefits, but I don't use them. Too far to drive to the closest base. It's 30 miles. I know some people wouldn't consider that far, but I have a store three blocks away and Amazon delivers in two days.
I do use the Exchange online service. No tax and free shipping!
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