Congress Likely to Restore Retirement Cut

NGAUS Washington Report

NGAUS Washington Report

NGAUS Washington Report

(Dec. 31, 2013) Several members of Congress have indicated a desire to replace the cut in cost-of-living increases for military retirement pay that was part of the Bipartisan Budget passed Dec. 18 and signed into law last week.

The law, which also offers $63 billion in sequester relief, slows retirement pay cost-of-living increases for military veterans under the age of 62, which would save $6 billion over 10 years. The increase would be 1 percentage below the usual cost-of-living hike.

But no sooner was the vote taken in Congress than some members began backing away from that part of the budget compromise.

"I think we need to make the fix right now," said Rep. Rodney Davis, R-Ill., according to The Washington Post. His district includes Scott Air Force Base.

"In my opinion, it should be the first item on the docket for 2014," said Rep. Marty Roby, R-Ala.

NGAUS, too, wants the plan replaced with some other method of saving money. The association believes budget savings should not be taken from men and women who wore the uniform for at least 20 years with certain expectations for their service.

Davis and Rep. Michael G. Fitzpatrick, R-Pa., have introduced legislation that would restore the cuts and find the savings among Americans who file fraudulent claims for child tax credits, the Post reported. Sen. Jeanne Shaheen, D-N.H., has introduced a bill that would find the savings by eliminating a tax loophole for offshore corporations, according to a news release from her office.

A vote in January is possible on getting rid of the controversial provision in the law.