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From: Army Times
Rising real estate prices across the country will push the average Basic Allowance for Housing up a notch next year despite new rules that change the methodology for how the tax-free benefit is calculated.
Overall average BAH rates will tick up by 0.5 percent, or about $17 per month, a far smaller rise than last year's 5 percent increase. Individual rates for specific locations and paygrades are available here http://www.militarytimes.com/BAHcalculator
The comparatively small bump is due to two significant changes in the way the Pentagon calculates BAH, both measures that were designed to shave some costs from military compensation.
One, housing officials removed the small slice of the benefit intended to cover renters insurance, which typically accounted for about 1 percent of the overall BAH rates.
And two, Congress on Dec. 12 finalized an annual defense bill that shaved 1 percent from BAH, meaning the tax-free benefit is now intended to cover only 99 percent of estimated housing costs. Individual service members will be expected to pay the remaining 1 percent out of pocket.
Despite a change to the underlying methodology in the way the military housing allowance is calculated, many rates will nevertheless rise somewhat because the Pentagon's annual survey of housing costs showed that rental costs are moving upward.
No service members will see a year-over-year decrease in the real-dollar amount of their BAH because the Defense Department is again extending its rate-protection policy. That ensures that troops who enter into a long-term lease will not be penalized by falling housing prices or reduced benefits. Falling rates will only apply to service members moving into an area in 2015.
Scaling back the BAH rate to cover only 99 percent of housing costs marks the first reduction in the benefit in a generation. But it's a far smaller drop than the one the Pentagon requested in March when it sought to cut it to 95 percent.
And the benefit remains far higher than it was in the 1990s when it was calculated to cover only about 80 percent of housing costs.
For individuals, the rate changes will be modest. For example, an E-6 without dependents at Camp Pendleton, California, will see his or her BAH rate move from this year's monthly rate of $1,764 up $21 to a 2015 rate of $1,785
Or an O-3 with dependents at Fort Campbell, Kentucky, will see his or her BAH rate go from $1,746 per month to $1,830, an $84 rise.
http://www.armytimes.com/story/military/benefits/2014/12/22/bah-rates-2015/20757613/
Rising real estate prices across the country will push the average Basic Allowance for Housing up a notch next year despite new rules that change the methodology for how the tax-free benefit is calculated.
Overall average BAH rates will tick up by 0.5 percent, or about $17 per month, a far smaller rise than last year's 5 percent increase. Individual rates for specific locations and paygrades are available here http://www.militarytimes.com/BAHcalculator
The comparatively small bump is due to two significant changes in the way the Pentagon calculates BAH, both measures that were designed to shave some costs from military compensation.
One, housing officials removed the small slice of the benefit intended to cover renters insurance, which typically accounted for about 1 percent of the overall BAH rates.
And two, Congress on Dec. 12 finalized an annual defense bill that shaved 1 percent from BAH, meaning the tax-free benefit is now intended to cover only 99 percent of estimated housing costs. Individual service members will be expected to pay the remaining 1 percent out of pocket.
Despite a change to the underlying methodology in the way the military housing allowance is calculated, many rates will nevertheless rise somewhat because the Pentagon's annual survey of housing costs showed that rental costs are moving upward.
No service members will see a year-over-year decrease in the real-dollar amount of their BAH because the Defense Department is again extending its rate-protection policy. That ensures that troops who enter into a long-term lease will not be penalized by falling housing prices or reduced benefits. Falling rates will only apply to service members moving into an area in 2015.
Scaling back the BAH rate to cover only 99 percent of housing costs marks the first reduction in the benefit in a generation. But it's a far smaller drop than the one the Pentagon requested in March when it sought to cut it to 95 percent.
And the benefit remains far higher than it was in the 1990s when it was calculated to cover only about 80 percent of housing costs.
For individuals, the rate changes will be modest. For example, an E-6 without dependents at Camp Pendleton, California, will see his or her BAH rate move from this year's monthly rate of $1,764 up $21 to a 2015 rate of $1,785
Or an O-3 with dependents at Fort Campbell, Kentucky, will see his or her BAH rate go from $1,746 per month to $1,830, an $84 rise.
http://www.armytimes.com/story/military/benefits/2014/12/22/bah-rates-2015/20757613/
BAH
Housing
Edited >1 y ago
Posted >1 y ago
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Information is vital and is an absolute. Without the full knowledge of the rules and changes it can have an adverse effect on moral which can drastically impact a command. So one important fact I thought should be dispersed throughout the ranks if I were still on active duty would be:
Despite a change to the underlying methodology in the way the military housing allowance is calculated, many rates will nevertheless rise somewhat because the Pentagon's annual survey of housing costs showed that rental costs are moving upward.
No service members will see a year-over-year decrease in the real-dollar amount of their BAH because the Defense Department is again extending its rate-protection policy. That ensures that troops who enter into a long-term lease will not be penalized by falling housing prices or reduced benefits. Falling rates will only apply to service members moving into an area in 2015.
This would have an immediate impact on service members and their families. Congress always seems to be thinking member and not family. This is the error of lack of prior service in Congress. Many do not realize the difference in the job-skill / pay ratio difference there is between the military and the civilian world. The ones who do are the ones who take full advantage of it and the ones who do not are the ones serving. It is time for Congress to stop playing with the wages of the services and begin to treat us as a part of society that deserves respect and dignity. If many of you think the majority of the elite have us as part of their "To Do List". Wow! Gullible! So does the DOD and the VA properly compensate their employees / members for their service?
Not only are the poor neglected in this country, but I know we are trained to accept what we get as acceptable. But, you need to look past military standards when you leave the service and realize we veterans are really dealt a short stick. If you have no disabilities, then bless you. You have a good shot at moving forward and up school, etc. If you are disabled, etc. then you may get school which helps, but if you are 100% then you are bound to the constraints of a system of numbers. So is your family, and so is your future. How is this taking care of a fellow comrade? Hoping an organization will help his family more than the VA, because of location, education, family size, etc.
If the Congress was more in tune with the daily sacrifices made for our Country, our pay would be far higher and more respectful than it is now. Not only is it so obvious, but when you see civilians performing the same tasks in the exact same location as us and they are receiving a huge sum of pay, with very little risk. Don't tell it is because I volunteered. That is the biggest copout and deflection there is in an answer because the answer is known. We may have volunteered, but like civilians we signed a contract for a job and our employer is beginning to neglect her employees. There are millions of employees who do not say anything out of respect. There are thousands of civilian employees who do not speak out of fear of reprisal. There is such an awful pattern here that it shames me, but I have nothing to lose, but all to gain. Because awareness for my fellow brothers and sisters in all branches of services and all veterans, do not fear the keeper. Speak up when there is problem or it will never be fixed. Speak up if someone does something wrong so they know to change it next time. Speak up if someone is breaking the law, people we have to be leaders and moral.
People see us as protectors of the country, yet we are not worthy of proper compensation. The more things that are needed to be cut is when it is from us , the people that serve not other things. The higher ranking individuals are safe, smaller numbers and better compensated - how interesting. Just because of college and time, or skill? Ask many enlisted of higher rank and time who feel unequally compensated.
Having all of this information at hand, I feel there is a great divide between civilian pay and military pay. The largest reason by far is the fact we are on the job 24/7 , 365 and if so deemed then 8 years or beyond. As if you signed a contract in blood. This is not saying we did not join to defend our country, but at the same time one must admit, we did not join so our country could allow the Congress, lawmakers and upper echelon to degrade our services and the VA. An example, I have 2 medical insurance policies, yet I still go to the VA. This means they get the full pay from the 2 insurance companies, I am not a burden to the system yet the care remains the same and this is not reflected in the VA's statistical numbers that I have seen. Because, I am sure many veterans have some sort of medical insurance the VA claims. So, is there a shell game afoot? Cooking the books? It would never happen in the government, right? These are the things which happen and people cannot speak of daily.
I only speak for those who cannot or will not. If you see or hear wrong report it, not one, but several times to ensure it has been delivered. If it of a sensitive nature of course follow procedures or be discreet. If it is illegal, then there is only 1 thing to do then, stiffen that spine and get the COPS!
God Bless each and every one of you serving, and those who have served.
Despite a change to the underlying methodology in the way the military housing allowance is calculated, many rates will nevertheless rise somewhat because the Pentagon's annual survey of housing costs showed that rental costs are moving upward.
No service members will see a year-over-year decrease in the real-dollar amount of their BAH because the Defense Department is again extending its rate-protection policy. That ensures that troops who enter into a long-term lease will not be penalized by falling housing prices or reduced benefits. Falling rates will only apply to service members moving into an area in 2015.
This would have an immediate impact on service members and their families. Congress always seems to be thinking member and not family. This is the error of lack of prior service in Congress. Many do not realize the difference in the job-skill / pay ratio difference there is between the military and the civilian world. The ones who do are the ones who take full advantage of it and the ones who do not are the ones serving. It is time for Congress to stop playing with the wages of the services and begin to treat us as a part of society that deserves respect and dignity. If many of you think the majority of the elite have us as part of their "To Do List". Wow! Gullible! So does the DOD and the VA properly compensate their employees / members for their service?
Not only are the poor neglected in this country, but I know we are trained to accept what we get as acceptable. But, you need to look past military standards when you leave the service and realize we veterans are really dealt a short stick. If you have no disabilities, then bless you. You have a good shot at moving forward and up school, etc. If you are disabled, etc. then you may get school which helps, but if you are 100% then you are bound to the constraints of a system of numbers. So is your family, and so is your future. How is this taking care of a fellow comrade? Hoping an organization will help his family more than the VA, because of location, education, family size, etc.
If the Congress was more in tune with the daily sacrifices made for our Country, our pay would be far higher and more respectful than it is now. Not only is it so obvious, but when you see civilians performing the same tasks in the exact same location as us and they are receiving a huge sum of pay, with very little risk. Don't tell it is because I volunteered. That is the biggest copout and deflection there is in an answer because the answer is known. We may have volunteered, but like civilians we signed a contract for a job and our employer is beginning to neglect her employees. There are millions of employees who do not say anything out of respect. There are thousands of civilian employees who do not speak out of fear of reprisal. There is such an awful pattern here that it shames me, but I have nothing to lose, but all to gain. Because awareness for my fellow brothers and sisters in all branches of services and all veterans, do not fear the keeper. Speak up when there is problem or it will never be fixed. Speak up if someone does something wrong so they know to change it next time. Speak up if someone is breaking the law, people we have to be leaders and moral.
People see us as protectors of the country, yet we are not worthy of proper compensation. The more things that are needed to be cut is when it is from us , the people that serve not other things. The higher ranking individuals are safe, smaller numbers and better compensated - how interesting. Just because of college and time, or skill? Ask many enlisted of higher rank and time who feel unequally compensated.
Having all of this information at hand, I feel there is a great divide between civilian pay and military pay. The largest reason by far is the fact we are on the job 24/7 , 365 and if so deemed then 8 years or beyond. As if you signed a contract in blood. This is not saying we did not join to defend our country, but at the same time one must admit, we did not join so our country could allow the Congress, lawmakers and upper echelon to degrade our services and the VA. An example, I have 2 medical insurance policies, yet I still go to the VA. This means they get the full pay from the 2 insurance companies, I am not a burden to the system yet the care remains the same and this is not reflected in the VA's statistical numbers that I have seen. Because, I am sure many veterans have some sort of medical insurance the VA claims. So, is there a shell game afoot? Cooking the books? It would never happen in the government, right? These are the things which happen and people cannot speak of daily.
I only speak for those who cannot or will not. If you see or hear wrong report it, not one, but several times to ensure it has been delivered. If it of a sensitive nature of course follow procedures or be discreet. If it is illegal, then there is only 1 thing to do then, stiffen that spine and get the COPS!
God Bless each and every one of you serving, and those who have served.
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Upwards? BAH in my area fell by about 9%. Over $100/month for an O-3 with dependents.
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I am glad BAH rates for active service members is being increased. I wish there was a factor for BAH in retired pay. Only because I would enjoy not need another job!
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