Defense Bill Work Ramps Up, But Senate Keeps Debate Out Of Public View
Both the House and Senate Armed Service committees will mark up their annual defense authorization bill drafts this week, but the public will only get to see one of them do their work.
Lawmakers Eyeing Even More Boosts To Junior Enlisted Pay
In the last two weeks, House lawmakers have proposed huge increases to junior enlisted pay, monthly bonuses for those servicemembers to help deal with inflation, and new reforms to boost housing and assistance stipends to ensure their families don’t face financial struggles.
Space Force Could Get A Guard Force And Part-Time Guardians, If House Lawmakers Get Their Way
The Space Force could soon have a Space National Guard -- as well as the addition of part-time Guardians -- if two different legislative proposals are approved by Congress.
Military Retiree COLA May Shrink In 2024. Here’s Why That’s OK.
By: Molly Weisner | Military.com
After the largest cost-of-living adjustment in four decades in 2023, the increase in annuities for retired government workers, military retirees and veterans is projected to be much lower next year — and that’s good news, according to financial advisers.
Under a measure signed into law by President Joe Biden on June 14, military retirees and veterans will see a cost-of-living boost equal to the raise Social Security recipients will receive. The two sets of benefits have been linked for decades, but federal rules still mandate that Congress pass the legislation mirror each year.
In a statement, Senate Veterans’ Affairs Committee Chairman Jon Tester, D-Mont., said pairing veterans’ benefits increases with other federal payouts will protect family finances “at a time when folks are struggling with rising costs, from housing to groceries.”
But those costs aren’t rising as fast as they were just a year ago.
The baseline COLA for next year is estimated to be 2.7%, according to the Senior Citizens League, a nonpartisan advocacy group that seeks to educate Americans on retirement issues. In 2023, the COLA boost surged to 8.7%, giving federal and military retirees and veterans the highest inflation increase in their benefits since the early 1980s. Now, inflation rates are slowly leveling out after reaching, a four-decade high in 2022, and in response, the COLA — which is based on inflation figures from July through September — is projected to be much more modest.
“Having a low COLA is actually a good thing,” said Dallen Haws, a financial planner for Haws Federal Advisers, in an interview with sister publication Federal Times. “It means inflation is relatively low. The moment it starts getting higher, it lags more.”
For federal employees, COLAs apply differently depending on the government retirement plan in which they are enrolled. The Federal Employee Retirement System includes those who entered the civil service beginning in 1984, and itCivil Service Retirement System applies to those working for Uncle Sam before that date.
For military retirees and veterans, and those collecting Social Security and annuities under the CSRS, the COLA is equal to theConsumer Price Index for Clerical Workers — the average change in prices of consumer goods over time. These adjustments, while a helpful buffer against economic instability, were never intended to fully make up for losses in the value of their retirement checks, Haws and others said. COLAs are a reactive adjustment to inflation, meaning that by the time retirees see them in their benefit checks, their money — in reality — is already behind.
“The challenge for people is that we haven’t truly seen a reduction in costs and the thing that people spend most of their money on,” said Thiago Glieger, a private wealth expert forMaryland-based RMG Advisors. “If you look at what grocery bills are, from what they were a year ago, it’s arguably still really, really high.” The CPI-W increased 3.6% in the last 12 months — the lowest increase since March 2021, according to the Bureau of Labor Statistics.
To illustrate that, consider that as of January, the inflation rate of the CPI-W was actually lower than the 2023 COLA, so that difference could mean a retiree with average benefits of $1,694 could get a $52 monthly increase in their buying power, the Senior Citizens League said. On the other hand, that difference may be hardly noticeable since inflation took such a large chunk out of value in the last two years. The average Social Security benefit fell behind by $1,054.
Thrift Savings Plan
For those not ready to retire, experts urge prioritizing a savings account, like the Thrift Savings Plans, to create a stable source of income in times of volatility.
So how can the feds and military members save effectively?
“Sometimes people get a little scared because the markets can be volatile and maybe they don’t invest as aggressively as they should,” Glieger said.
In other instances, as experts have seen in the past few months, the I Fund of the TSP has been outperforming the other investments. Glieger said he has seen hundreds of millions of dollars invested into the I Fund as news of its good returns spread.
However, he warned againstchasing trendsand instead urged federal employees and troops to have a well-informed plan that is more proactive than reactive. Otherwise, they may only take advantage of a hot rate when it’s about to cool off.
Remember, too, that the 2.7% COLA is just an estimate. The actual COLA for 2024 will be determined by how much the CPI-W changed in the third quarter of this year compared with last year. The final number will be announced in October and becomes effective on Dec. 1. Adjustments appear in January checks.
Below are the campaigns that are currently located on our Action Center. Please take no more than 5-10 minutes to scan through each of the campaigns and click on the custom links provided below.
The Military Spouse Hiring Act would encourage companies to employ military spouses, who frequently face disproportionate impediments in the job market, by extending the Work Opportunity Tax Credit (WOTC) to include them.
Intends to help military spouses find better work opportunities.
Support the Disabled Veterans Tax Termination Act!
Authorizes veterans with a service-connected disability of less than 50% to concurrently receive both retired pay and disability compensation.
Makes qualified disability retirees with less than 20 years of retirement-creditable service eligible for concurrent receipt, subject to specified reductions in retired pay.
Qualify approximately 42,000 military retirees with combat-related injuries to concurrently receive both military retired pay and Veterans Affairs (VA) compensation.
Provide total offset relief to veterans who suffered combat injuries or illnesses who were medically retired with less than twenty years of service.
Allowsthe receipt of both military retired pay and veterans' disability compensation with respect to any service-connected disability.
Extends full concurrent receipt eligibility to individuals who were retired or separated after at least 20 years of military service due to a service-connected disability.
Support the Military Family Nutrition Access Act of 2023!
The Military Family Nutrition Access Act was created to aid military families with active duty members who are facing food insecurity.
By eliminating Basic Allowance for Housing (BAH) from the income calculations used to establish eligibility for the Supplemental Nutrition Assistance Program (SNAP), the bipartisan bill will combat food insecurity.
Military personnel risk their life to protect our nation; they shouldn't have to worry about providing for their families.
The Not Just a Number Act would oblige the VA to look into how veterans use their benefits in their yearly report on suicide prevention in order to assess the connection between VA benefits and suicide outcomes.
In its fight against veteran suicides, the VA evaluates which VA benefits have the best impact on preventing suicide and requires the Department to submit recommendations for an increase in such benefits.
If you have any questions, please reach out to AFSA's Military and Government Relations team at milgov3@hqafsa.org.
AFSA Professional Education, Personal Development Symposium Registration isLIVE!!!
THE SUMMIT23/AFSA International Convention Registration is LIVE!!! This year’s Summit/AFSA International Convention will convene Friday, August 4, through Wednesday, August 9,2023,(Departures: Thursday, August 10, 2023) in Dallas, Texas, at the Hilton Anatole Resort, 2201 North Stemmons Freeway, Dallas, Texas. For more details, please click on the link below:
THEME:The Theme for THE SUMMIT 23/AFSA International Convention is“Back to Basics and Beyond.”
NOTE:Main arrival and registration is on Friday, August 4, 2023.
THEME PARTY/ICE BREAKER:THE SUMMIT23/AFSA International Convention Theme Party/Ice Breaker is on Saturday, August 5, 2023.The Theme for the Theme Party/Ice Breaker is “Super Heroes & Sheroes.” The Dress Code for the Theme Party/Ice Breaker is:
Dust off your Cape!
WELCOMING CEREMONY: The Welcoming Ceremony is on Saturday, August 5, 2023. The Dress Code for the Welcoming Ceremony is:
Business Casual, Military Personnel on Funded TDY orders: OCPs.
AFSA PRESIDENT’S DINNER & AWARDS CEREMONY. The AFSA President’s Dinner and Awards Ceremony is on Sunday, August 6, 2023. The Dress Code for the President’s Dinner and Awards Ceremony is:
AFSA Members: Gentlemen: Tuxedo or Dark Suit, Ladies: Dress evening wear (long or short);
Military Personnel on Funded TDY Orders: Mess Dress or Semi-Formal Uniform;
Top Performer Club members (Formerly TwinFLIER, SKYHIGHER and/or HighFLIER Club members): Wear the AFSA blue blazer. If they are active-duty military members, they may wear the AFSA blue blazer, but are highly encouraged to wear their service dress uniform.
AIR & SPACE HONORS BANQUET AND CMSAF AWARDS CEREMONY. The Air & Space Honors Banquet and CMSAF Awards Ceremony is on Wednesday, August 9, 2023. The Dress Code for the Air & Space Honors Banquet and CMSAF Awards Ceremony is:
Gentlemen: Tuxedo or Dark Suit,
Ladies: Dress evening wear (long or short);
Military Personnel on Funded TDY Orders: Mess Dress or Semi-Formal Uniform
THE SUMMIT23/AFSA International Convention
REGISTRATION FEE: The registration fees are as follows:
AFSA International Convention
Complete Early Registration (1 April - 31 May)$275.00
Use Promo Code: AFSAEarly to save. Expires April 30, 2023
Complete Registration (1 June - 31 July)$300.00
Complete Late Registration (1 August - 4 August) $325.00
AFSA International Convention Plus PEDs and Air & Space Honor’s Banquet
Complete Early Registration (1 April - 31 May)$325.00
Use Promo Code: AFSAEarly to save. Expires April 30, 2023
Complete Registration (1 June - 31 July)$350.00
Complete Late Registration (1 August - 4 August) $375.00
On Monday, August 7-9, there will be a full day of Professional Development. All Professional Development Forums are open to all military members on Active Duty and DoD civilian personal at no cost.
BEAUTIFUL EVENT LOCATION- Book your rooms now!The Summit 23/AFSA International Conventionis held at the Hilton Anatole, 2201 North Stemmons Freeway, Dallas, Dallas, Texas where you'll find an entertainment complex designed to relax and delight you and your family. We've partnered with the Hilton Anatole to offer special AFSA/SUMMIT ROOM RATES at $154+ tax a night.
NOTE: Please identify that you are with the Air Force Sergeants Association group.
(This special rate includes the outdoor Jade Water Pool Complex with slides and a lazy river, the Verandah Fitness Club & V-Spa, dining options, and much more.)
NOTE:The last date to make hotel reservations at the AFSA contracted room rate is July 14, 2023.
Have You Read The Latest AFSA Magazine?
This edition features Port Mortuary and America’s Missing Heroes, Living with Bipolar Disorder in the Military, Fly-By Wire Defense and AFSA’s American Award Recipient – Don Ward. Read, download, print and share: https://www.hqafsa.org/fallmagazine.html
Greetings AFSA Division and Chapter Leadership,
We are pleased to share the AFSA Set-It-Forever/Auto Pay procedures and marketing materials to help share the process with our members, your membership and potential new recruits.
The Set-It-Forever/Auto Pay program creates an opportunity to JOIN AFSA or RENEW a membership by making a $36 once-a-year/every-year auto payment, or a $4-each-month/every- month auto payment. The $36 once-a-year option is set at $36, and the $4-a-month option includes a bank processing fee of $1 each month.
Review the two ways to enroll, the benefits to using the auto-pay option, and the marketing materials to help share the details of this program and ensure its success.
For questions, please contact AFSAHQ Member & Field team at 800-638-0594 x 288.
Please Update Your Contact Information Today!
Dear Air Force Sergeants Association Member,
In order for the AFSA to effectively communicate with our members, it is essential to ensure we have your current and / or valid e-mail address. We are in the process of updating our records and need your help! Please take a moment to ensure that we have your most current mail and email address (no .mil's); and accurate membership listing information.
We've made it easy, as you can update your information in either one of three ways:
Call Member & Field Relations team directly at 800-638-0594 x 288 (Mon. - Fri. 8:00 am to 5:00 pm (EST)
Email to: msvcs@hqafsa.org
Visit www.hqafsa.org and select the UPDATE button on the right
We thank you in advance for your support and prompt updates.
In sum, the high-stakes defense policy discussions will continue to be conducted behind closed doors by Senate legislators. The main committee meeting and all subcommittee meetings are closed to the public, with the exception of the personnel subcommittee, which will hold a public hearing on Wednesday. This prevents the public from learning where senators stand on the issues that will affect the Defense Department for years to come.
On the other hand, the House Armed Services Committee will openly mark up its proposed legislation on Wednesday. More than 14 hours of work are anticipated for the project. Only twice in the previous 11 years have the marathon races been completed before midnight.
In addition, according to Rep. Don Bacon, R-Neb., the group's chairman, the House Armed Services Committee's new quality of life panel, which was established at the beginning of the year, is scheduled to start public hearings and site visits next month. With a view to making policy recommendations early next year, the 11-member panel is anticipated to work throughout the summer and fall on a variety of issues affecting military people and their families.
This week, during a sit-down with reporters, Bacon stated that the panel's primary focus would be an investigation of junior enlisted pay and if the compensation received by those soldiers is sufficient to maintain stability and morale for their families.
And lastly, in the upcoming year, the House's proposed military authorization bill seeks to create a Space National Guard from more than a dozen Air National Guard units. This is the third year that the change has been made to the annual policy bill, but it is the first time that it has been incorporated directly into the draft rather than as a separate amendment.
The proposed legislation would also permit part-time active duty for Guardians, replacing the traditional concept of a reserve force as a means of providing flexibility in service. It is one of the service's main priorities to have it approved into law.
And that's the way it is for Tuesday, June 20, 2023.
Stay tuned for our next M&G-B, where we will continue to keep you in the loop on all things pertinent to the coronavirus, veterans, active-duty members, guards and reservists, and military family members. Stay happy, and stay healthy!
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