What does active duty personnel have to worry about in the National Defense Authorization Act?

LCpl Timothy McCain — Fri, 10 Jun 2016 18:08:55 -0400

There are four things you should be concerned about. 1. You will be getting a 1.3% pay increase on January 1. 2. There will be a 5% cut in housing allowance. 3. More of your care will be done by the local veterans hospital. 4. The retirement system has been changed, weather not it's for the better you have to decide. However if your retirement is near and you didn't opt in to the new retirement system you are okay.

A correction to an earlier post.
Senator Rounds office said that it doesn't see any reason why the Senator wouldn't support the American Heroes COLA Act and the changes we are asking for if cost offsets could be found. I mistakenly wrote that he did already support the bill and the changes.

Response by PO1 William "Chip" Nagel made Jun 10 at 2016 6:16 PM

PO1 William "Chip" Nagel — Fri, 10 Jun 2016 18:16:15 -0400

You can bet though that the Defense Contractors will get their Cut. Now the ones that have to operate those weapons systems are a whole nother matter.

Response by SFC Joe S. Davis Jr., MSM, DSL made Jun 10 at 2016 6:16 PM

SFC Joe S. Davis Jr., MSM, DSL — Fri, 10 Jun 2016 18:16:30 -0400

LCpl Timothy McCain good read and share! Thanks

Response by MCPO Roger Collins made Jun 10 at 2016 6:45 PM

MCPO Roger Collins — Fri, 10 Jun 2016 18:45:17 -0400

There is sufficient money available for reasonable pay increases and the cut in housing is not warranted. We have nearly $2B to fight Zika in countries that a small minority is effected and is here because it was transported here. We have billions for refugees that won't stay home and fight for their country. And the list goes on. Screwing over the military usually takes place when there is peace. But, rest assured you will be thanked for your service, that is free.

Response by TSgt Joe C. made Jun 10 at 2016 8:19 PM

TSgt Joe C. — Fri, 10 Jun 2016 20:19:33 -0400

Great share LCpl Timothy McCain

Response by MGySgt James Forward made Jun 10 at 2016 10:00 PM

MGySgt James Forward — Fri, 10 Jun 2016 22:00:25 -0400

On #2 you miss a key fact, the 5% cut will be phased in over a few years, not all at once. #3. More care by the VA for active duty? That one won't fly very far. VA is running behind, I don't see very many active duty folks going to VA unless it is something seriously highly specialized. #4. The upcoming changes to the retirement system will mean that EVERYONE who serves leaves with something in their nest egg after an enlistment. Yes, It less than now, But I expect that the TSP will make up the difference. Semper Fi.

Response by CAPT Kevin B. made Jun 11 at 2016 11:06 AM

CAPT Kevin B. — Sat, 11 Jun 2016 11:06:36 -0400

"Cost offsets could be found". That's political speak for "no because I'm not going to look hard". That's a typical virtual hope pill. I'm retired but see some interesting dynamics here. Housing should have been going down starting about 7 years ago, bottomed out, and then should be starting to go back up at a moderate rate this year. This stuff is always "lagging", hence is a good deal some years and pucker factor other years. 1.3% is still close to flat but it's been typical for the past 12 years and overall is a bit better than the really flat in the commercial sector service industries.

Mandatory TSP is what I'd call tough love that reduces future liabilities. Forcing investment for age 60+ benefits will help keep people off the dole later on. I've posted before that people need 4-5 income streams for which your annuity and TSP (401) are two of them. You do a mixture of the two following your MIL life. You then do Social Security at the right time and probably throw some VA disability in there somewhere. You want to be in the position where the financial advisor says "do it this way otherwise you'll be in the really high tax bracket". I didn't get on the TSP bandwagon early because it didn't exist. But when I did in '86 (10%) on the Civil Service side, it turned out to be worth high six digits when I punched out in '13.

BTW if you're considering Civil Service while you finish off MIL on the reserve side, take a hard look at buying FERS retirement credit. I bought 10 years for $10K in '86 and it is paying me $13K a year now. Turned out to be a no brainer. The longer I live the more no brainer it is and the survivor benefit is larger too.