2. We are THE premier professional service organization for all
Sailors of the Navy & its Veterans!
AUSN provides professional Member and Veteran services to all AUSN
members
AUSN advocates for Navy equipment and benefits for all members of
the Navy family
AUSN assists its members with career information, and post-military
career/Veteran planning and services
3. Concurrent Receipt (legislation)
Retroactive Retirement (legislation)
Annual National Defense Authorization Act
(NDAA) and Appropriation Bills
Military Compensation and Retirement
Modernization Commission (MCRMC)
4. Concurrent Retirement and Disability Pay (CRDP)
• CRDP program began 1 January 2004
• Allows military retirees to receive both military retired pay and
Veterans Affairs (VA) compensation
• Phases out VA disability offset
Eligibility
• Must be eligible for retired pay to qualify
• Regular retiree with VA disability rating of 50% or greater
• Reserve retiree with 20 qualifying years of service & VA disability
rating of 50% or higher with retirement age
Problem
• Retirees forfeit part of military retired pay for VA disability
6. S. 234- The Retired Pay Restoration Act, introduced
7 February 2013
• Sponsor: Senator Harry Reid (D-NV)
• Cosponsors: 23
An amendment expected to be offered during NDAA
Senate floor debate this fall
7. Reserve Retroactive Retirement Credit
• Provide retirement benefits to Reservists who served after 11 September
2001
Requirements
• The Fiscal Year 2008 National Defense Authorization Act (NDAA) (P.L.
110-181) took an important first step by reducing the age at which a
member of the Ready Reserve can draw retired pay (normally 60) by 3
months for every aggregate 90 days of active duty performed after 28
January 2008. Thus, current law requires that 90 days be served in a
single fiscal year in order to be counted toward early retirement.
Overview & Problem
• The authority limits active duty credit only to aggregate tours of 90
days served within any fiscal year, however the retirement credit is
applied only to active service beginning on or after 28 January 2008.
8. H.R. 2907- National Guardsmen and Reservists
Parity for Patriots Act, introduced 1 August 2014
• Sponsor: Representative Joe Wilson (R-SC-02)
• Cosponsors:37
The associated $2 billion cost of the bill, however,
makes prospects for enactment in the current
budget environment unlikely
10. House Version of FY15 NDAA
• H.R. 4435, SEC. 641. Anonymous Survey o Members of the Armed
Forces for preferences regarding military pay and benefits
Congress is not including major retirement
provisions because the Military Compensation and
Retirement Modernization Commission (MCRMC)
is still working on its final report, due February
2015
11. The MCRMC was established by Congress in the
FY13 NDAA to review current military compensation
and benefits system (http://www.mcrmc.gov/)
Chaired by Honorable Alfonso Maldon, Jr., former
Assistant Secretary of Defense for Force
Management
On 3 July 2014, MCRMC released Interim Report
detailing current compensation and benefits
• Three areas of compensation focused on:
• 1.) Payment and Retirement 2.) Health benefits and 3.) Quality of life
benefits
12. Overview of Military Retirement
• The military retirement system is a funded, noncontributory defined
benefit plan that includes non-disability retired pay, disability retired
pay, retired pay for Reserve service, survivor annuity programs, and
compensation programs for certain disabled retirees.
• The Military Retirement Fund (MRF) accumulates funds to finance
the liabilities of the Department of Defense (DOD) under military
retirement and Survivor Benefit Programs (SBP). The amount DOD
must contribute each year to cover future retirement costs are
determined by the independent DOD Board of Actuaries. The
estimated future retirement costs are projected based on the past
rates at which Active Duty military personnel stayed in the service
until retirement.
13. Problems Identified: In the report, the Commission
noted the need to improve retention and cost
effectiveness as well as provide more flexibility through
modernization.
• Fiscal difficulties are expected to place downward pressure on the
budgets of Armed Services
• Demographic changes, rising health-care costs, national net interest
payments causing mandatory and interest payments to increase
• Additional burdens placed on remaining servicemembers
• Broader discussion of Federal spending levels needed to ensure viability
of the military
14. Interim report appears vague on solutions, but does
present comprehensive summary of ongoing needs and
current situations
Recommends modernization that protects overall value
of benefits package and quality of life
The Commission’s final recommendations will be
presented to the President and Congress in 2015
15. AUSN has appeared before the Commission 3 times
through our Vice-Chairman of the Board, MCPON
Jim Herdt, USN (Ret)
AUSN expressed concerns on behalf of Sailors and
Veterans and the potential impact the Commission’s
findings could have upon a Navy community facing
an uncertain budget environment.
Recommends Commission look at:
• Past mistakes, correct information vs. misinformation,
and the promises made to men and women in uniform
16.
17. AUSN open to thoughtful dialog on retirement,
recognizes need to ‘modernize’ the current system
AUSN believes effective modernization would need
to ensure that military careers are competitive with
other opportunities in the job market
AUSN suggests providing more retirement options
and/or a tiered system for certain retirement
‘packages’
AUSN recommends that change as long as current
servicemembers are grandfathered
18. • AUSN remains involved in these discussions
• AUSN’s Executive Director, VADM John Totushek,
USN (Ret.) spoke before SASC in May 2014 on subject
of military compensation
• Contact Information:
Anthony A. Wallis, Legislative Director
anthony.wallis@ausn.org
phone: (703) 548-5800
