Saturday, July 11, 2015

VFW Action Alert: Military Compensation and Retirement



---------- Forwarded message ----------
From: Ann Markel <amarkel@vfw.org>
Date: Friday, July 10, 2015
Subject: VFW Action Alert: Military Compensation and Retirement
To: Sean Eagan <sean.eagan@gmail.com>


Military Compensation and Retirement

Take Action!

 

Background: Congress established the Military Compensation and Retirement Modernization Commission in 2013 to provide the President and Congress with recommendations to modernize the military's compensation system. One of the Commission's recommendations is to provide all service members with a 401(k)-style retirement plan with a government match, and provide retirees with a blended retirement plan – one that has both a defined pension and 401(k)-style plan. Both the House and the Senate have included some version of this plan in their version of the National Defense Authorization Act (NDAA) legislation. The differences between these bills are being compromised through a conference committee and will be voted on in the near future.

Prior to the Commission's recommendations, Congress authorized a 1-percent reduction in the annual cost-of-living adjustment (COLA) for working-age military retirees who enter service after December 2015. This retirement cut would cost service members 10s of thousands of dollars between military retirement and traditional retirement age. This is nothing more than a cost saving measure that will negatively affect future retirees and it must be repealed.

Take Action: Contact your Members of Congress and urge them to support an NDAA that provides a retirement plan that will grandfather all currently serving service members in the existing plan if they choose, provide an immediate 1-percent employer contribution to a 401(k)-style retirement plan that can be matched up to 5-percent after two years of service, allows reserve retirees options to receive some portion of their pension at the point of retirement, and does away with the 1-percent COLA penalty.

 
 If you no longer wish to receive e-mail from us, please click here.





--


 

 Sean Eagan


 Life Member VFW NY Post 53
 American Cold War Veterans, Inc.
Web: http://americancoldwarvets.org/
Blog: Cold War Veterans Blog
Email: Sean.Eagan@gmail.com
Phone:  716 720-4000 
Network: My Fast Pitch! Profile
LinkedIn