Pending Legislation as of September 2007

by CW5 Poyas Haynes, Director, Legislative Affairs & Business Development

 

After failing to reach any consensus, the Senate suspended further action on the FY2008 Defense Authorization Bill until after the month-long August recess. This week (Sept. 17th), the Senate is picking up deliberations again on the defense bill.

 

There are several key issues, tied to the amendments in the Defense Authorization Bill, which should be of concern to the military community at large.  Noteworthy are those including military pay raises, retiree TRICARE fee protections, Survivor Benefit Plan improvements, concurrent receipt upgrades, and improvements in retirement benefits & Montgomery GI Bill benefits for the Guard and Reserve.

 

Listed below are the other House and Senate bills related to military, veterans, and military retirees benefits that USAWOA supports:

 

Bills In Consideration By The House of Representatives

 

Military Pay Improvement Act of 2007: Bill # H.R.2027                                 

Original Sponsor: Gus Bilirakis (R-FL 9th)                                                 

Cosponsor Total: 10 (Democrats-5 Republicans)                                                                                

Provides an additional 0.5 percent increase in the rates of military basic pay for members of the uniformed services above the pay increase proposed by the Department of Defense to ensure at least a minimum pay increase of 3.5 percent for service members and would narrow the "pay gap" that exists between the military and private sector.

 

Total Force G.I. Bill: Bill # H.R.1102
Original Sponsor: Vic Snyder (D-AR 2nd)                                                   

Cosponsor Total: 69 (48 Democrats -21 Republicans)
Since September 11, 2001, reserve Montgomery GI Bill rates have risen only 13.6%, while active duty rates have gone up 60%.This bill would consolidate active duty and Selected Reserve MGIB programs under one jurisdiction and ensure that Selected Reserve MGIB benefits rise in proportion with active duty MGIB rate increases. Additionally H.R. 1102 would provide a 10-year period after leaving service to use these benefits and allow mobilized members of the Selected Reserve to accrue active duty level benefits on a month-by-month basis during the time they’re mobilized.

 

Tax Credit for Employers of National Guard/Reserve: Bill # H.R.843
Original Sponsor: Gus Bilirakis (R-FL 9th)
Cosponsor Total: 2 (2 Republicans)                                                               

Amends the Internal Revenue Code of 1986 to provide employers a tax credit for compensation paid during the period employees are performing service as members of the Ready Reserve or the National Guard. Provides employers with a tax credit of 50% for any compensation paid to employees who are serving on active duty.
 

The Military Retiree Survivor Equity Act: Bill # H.R.1927
Original Sponsor: Solomon Ortiz (D-TX 27th)
Cosponsor Total: 66 (58 Democrats-8 Republicans)                                                      

This corrects two inequities in the Survivor Benefit Plan (SBP). First, the dollar-for-dollar deduction of VA benefits for service-connected deaths from the survivors' SBP annuities and second, the 2008 effective date of 30-year paid-up SBP coverage, which imposes undue financial penalties on the earliest SBP enrollees. This  would repeal the Survivor Benefit Plan-Dependency and Indemnity Compensation offset and move up the effective date of paid-up SBP to 1 Oct. 2007.
 

SBP-DIC Offset: Bill # H.R.1589
Original Sponsor: Henry Brown (R-SC 1st)
Cosponsor Total: 68 (31 Democrats-37 Republicans)
Under current law, the surviving spouse of a retired military member who dies from a service connected disability is entitled to Dependency and Indemnity Compensation (DIC) paid by the Veteran's Administration. If the military retiree was also enrolled in the Survivor Benefit Plan (SBP), the surviving spouse's benefits are offset by the amount of DIC ($1067 per month). A pro-rated share of SBP premiums is refunded to the surviving spouse in a lump sum but without interest. H.R. 1589 repeals the provisions of Title 10 which require the offset of DIC payments from SBP annuities.

 

Paid Up SBP: Bill # H.R.784
Original Sponsor: Jim Saxton (R-NJ 3rd)
Cosponsor Total: 114 ( 58 Democrats-56 Republicans)
Moves up the current 2008 implementation date for 30-year paid-up Survivor Benefit Plan (SBP) coverage. Current law provides that members who have paid SBP premiums for at least 360 months and who also have attained age 70 will be able to stop paying SBP premiums while retaining SBP coverage for their survivors. Because of budget constraints at the time of its enactment in1998, Congress delayed the effective date of this provision until October 1, 2008. This legislation would make the effective date October 1, 2007.

 

Military Retiree Survivor Comfort Act: Bill # H.R.657
Original Sponsor: Walter Jones (R-NC 3rd)
Cosponsor Total: 37 (22 Democrats-15 Republicans)
Would require the United States to forgive any overpayment of military retired pay after the death of the service member  for any period through the last day of the month in which such death occurs, if such payment is electronically deposited into a joint account bearing the name of the decedent and the decedent's designated beneficiary.

 

Retired Pay Restoration Act:  Bill # H.R.1436
Original Sponsor: Gus Bilirakis (R-FL 9th)
Cosponsor Total: 5 (1 Democrat-4 Republicans)
Permits certain retired members of the uniformed services who have a service-connected disability to receive both disability compensation from the Department of Veterans Affairs for their disability and either retired pay by reason of their years of military service or Combat-Related Special Compensation. This eliminates the phase-in period for retirees who are rated 100% due to unemployability.  

 

Lower Reserve Retirement Age: Bill # H.R.1428
Original Sponsor: Tom Latham (R-IA 4th)
Cosponsor Total: 27 (11 Democrats-16 Republicans)
This reduces the age for receipt of retirement pay by three months, counting backwards from age 60, for every 90 days a Guard or Reserve member spends on active duty in support of a contingency operation. Also includes time spent on active service for purposes of responding to a national emergency declared by the president or supported by federal funds including mobilization or deployment within the continental U.S. The maximum reduction would be down to age 50. Those in a volunteer status as well as those involuntarily activated are covered. If passed this provision would be retroactive to 9/11/01. This is a Companion bill to Senate Bill 648.  

 

Age-55 Reserve Retirement: Bill # H.R.690
Original Sponsor: Jim Saxton (R-NJ 3rd)
Cosponsor Total: 103 (64 Democrats-39 Republicans)
This reduces the minimum age for receipt of military retired pay for non-regular service from age 60 to age 55. This to compensate based on the premise that those Reserve and National Guard members who serve for a full career will spend 20-25% of their prime working years on full time active duty. Companion bill to Senate 1243.

 

Disabled Veterans Tax Termination Act: Bill # H.R.333
Original Sponsor: Jim Marshall (D-GA 8th)
Cosponsor Total: 54 (39 Democrats-15 Republicans)
Permits retired service members who have a service-connected disability rated less than 50 percent to receive concurrent payment of both retired pay and veterans' disability compensation; this also eliminates the phase-in period and extends eligibility for concurrent receipt and combat-related special compensation to chapter 61 disability retirees with less than 20 years of service.

 

Full Concurrent Receipt: Bill # H.R.303
Original Sponsor: Gus Bilirakis (R-FL 9th)
Cosponsor Total: 137 (77 Democrats-60 Republicans)
Authorizes full concurrent receipt of retired pay and veterans' disability compensation for retirees with regular or Guard/Reserve retirements. This is a companion bill to Senate 439.  

 

Combat-Related Special Compensation Act: Bill # H.R.89
Original Sponsor: Gus Bilirakis (R-FL 9th)
Cosponsor Total: 38 (20 Democrats-18 Republicans)
Extends eligibility for combat-related special compensation paid to certain uniformed services retirees who are retire with less than 20 years of creditable service.  

 

Social Security Fairness Act of 2007: Bill # H.R.82
Original Sponsor: Howard Berman (D-CA 28th)
Cosponsor Total: 323 (206 Democrats-117 Republicans)
This bill would repeal the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). Changes to Social Security law passed in 1977 and 1983 resulted in unintended reductions to the social security and survivor benefits of federal retirees. This is a companion bill to Senate 206.

 

To Establish a Mail-Order Pharmacy Pilot Program: Bill # H.R.2319
Original Sponsor: Gus Bilirakis (R-FL 9th)
Cosponsor Total: 3 (3 Republicans)
Directs and authorizes the Secretary of Defense two conduct a two year pilot program to encourage beneficiaries to voluntarily increase their use of the TRICARE mail-order pharmacy.  

 

Keeping Faith with the Greatest Generation Military Retirees Act: Bill # H.R.1223
Original Sponsor:  Chris Van Hollen (D-MD 8th)
Cosponsor Total: 74 (64 Democrats-10 Republicans)
This would waive Medicare Part B premiums for retirees who entered service before December 7, 1956; and provide drug reimbursement at TRICARE network rates to beneficiaries who do not have access to a pharmacy in the TRICARE retail network.  

 

Pretax Health Care Premiums: Bill # H.R.1110
Original Sponsor: Thomas Davis (R-VA 11th)
Cosponsor Total: 229 (139 Democrats-90 Republicans)
This would let uniformed services retiree beneficiaries, their family members and survivors pay TRICARE Prime enrollment fees and TRICARE Standard supplemental insurance premiums with pre-tax dollars. It would also allow federal retirees to purchase their Federal Employee Health Benefits (FEHBP) premiums in pre-tax dollars. As this benefit already is available to many private sector employees, this bill would extend the same privilege to all active and retired service members and federal civilians. This is a companion bill to Senate 773.

 

The Medicare Access to Rehabilitation Services Act: Bill # H.R.748
Original Sponsor: Xavier Becerra (D-CA 31st)
Cosponsor Total: 148 (90 Democrats-58 Republicans)
This legislation would repeal the Medicare payment cap for outpatient physical therapy services. Currently, an exception can be granted by providing proof of medical necessity. However, if no further action is taken this exception will expire on December 31, 2007. This is a companion bill to Senate 450.  

 

Military Retirees Health Care Protection Act: Bill # H.R.579
Original Sponsor: Chet Edwards (D-TX 17th)
Cosponsor Total: 177 (130 Democrats-47 Republicans)
This would establish principle of Congress's responsibility, not DOD, to establish timing and amount of military health fee increases. This would eliminate Secretary of Defense's current authority to make unlimited increases in four specific areas: (1) enrollment fees for retired members and survivors in TRICARE Prime, the military managed care plan; (2) pharmacy co-payments; (3) enrollment fees for the TRICARE Reserve Select program that helps maintain health coverage continuity for Guard and Reserve families; and, (4) retiree and survivor co-payments for inpatient care.  

 

Disabled Veterans Tax Fairness Act of 2007: Bill # H.R.2234
Original Sponsor: Sam Farr (D-CA 17th)
Cosponsor Total: 77 (65 Democrats-12 Republicans)
Amends Internal Revenue Code to provide a special period of limitation when service members retirement pay is reduced as result of awarded disability compensation. This allows disabled retirees to file amended returns for more than three tax years in cases where the VA approval is retroactive for more than that time. This is a companion bill to Senate 326.

 

Veterans Timely Access to Health Care Act: Bill # H.R.92
Original Sponsor: Ginny Brown-Waite (R-FL 5th)
Cosponsor Total: 9 (1 Democrat-8 Republicans)                                    

Establishes new standards of access to care for veterans seeking health care from the Department of Veterans Affairs.

 

Bills In Consideration By The Senate

 

Total Force G.I. Bill: Bill # S.644
Original Sponsor: Blanche Lincoln (D-AR)
Cosponsor Total: (13 Democrats-4 Republicans)                                            

Since September 11, 2001, reserve Montgomery GI Bill rates have risen only 13.6%, while active duty rates have gone up 60%.  This bill would consolidate active duty and Selected Reserve MGIB programs under one jurisdiction and ensure that Selected Reserve MGIB benefits rise in proportion with active duty MGIB rate increases. Additionally this would provide a 10-year period after leaving service to access these benefits and allow mobilized members of the Selected Reserve to accrue active duty level benefits on a month-by-month basis during the time they’re mobilized.

 

Active Duty Military Tax Relief Act of 2007: Bill # S.455
Original Sponsor: John Kerry (D-MA)
Cosponsor Total: 3 (2 Democrats-1 Republican)                                             

This legislation would provide tax relief to small business employers of active duty military personnel by granting tax credits related to employees being called up for active duty. This tax credit would offset the cost of paying a salary differential to employees that are called up for active duty.

 

Extending Traumatic Injury Protection Coverage: Bill # S.225
Original Sponsor: Larry Craig (R-ID)
Cosponsor Total: 4 (3 Democrats-1 Republican)                                       

Expands the number of individuals qualifying for retroactive benefits from traumatic injury protection coverage under SGLI Insurance.

 

The Military Retiree Survivor Equity Act: Bill # S.935
Original Sponsor: Bill Nelson (D-FL)
Cosponsor Total: 40 (28 Democrats-1 Independent-11 Republicans)                 

This corrects two inequities in the Survivor Benefit Plan (SBP). First, the dollar-for-dollar deduction of VA benefits for service-connected deaths from the survivors' SBP annuities and second, the 2008 effective date of 30-year paid-up SBP coverage, which imposes undue financial penalties on the earliest SBP enrollees. This  would repeal the Survivor Benefit Plan-Dependency and Indemnity Compensation offset and move up the effective date of paid-up SBP to 1 Oct. 2007. Companion bill to HR 1927.
 

Age-55 Reserve Retirement: Bill # S.1243
Original Sponsor: John Kerry (D-MA)
Cosponsor Total: 7 (7 Democrats)                                                                    

This reduces the minimum age for receipt of military retired pay for non-regular service from age 60 to age 55. This to compensate based on the premise that those Reserve and National Guard members who serve for a full career will spend 20-25% of their prime working years on full time active duty. Companion bill to HR 690.

 

Combat-Related Special Compensation Act of 2007: Bill # S.986
Original Sponsor: Harry Reid (D-NV)
Cosponsor Total: 4 (3 Democrats-1 Independent)                                             

This legislation would extend eligibility for Combat-Related Special Compensation to service members who are medically retired for combat-or operations-related conditions before attaining 20 years of service. Currently, these members must forfeit $1 of their military retired pay for each $1 they receive in VA disability compensation.  

 

Lower Reserve Retirement Age: Bill # S.648
Original Sponsor: Saxby Chambliss (R-GA)
Cosponsor Total: 15 (7 Democrats-8 Republicans)                                          

This reduces the age for receipt of retirement pay by three months, counting backwards from age 60, for every 90 days a Guard or Reserve member spends on active duty in support of a contingency operation. Also includes time spent on active service for purposes of responding to a national emergency declared by the president or supported by federal funds including mobilization or deployment within the continental U.S. The maximum reduction would be down to age 50. Those in a volunteer status as well as those involuntarily activated are covered. If passed this provision would be retroactive to 9/11/01. This is a Companion bill to H.R. 1428

 

The Retired Pay Restoration Act of 2007: Bill # S.439
Original Sponsor: Harry Reid (D-NV)
Cosponsor Total: 27 (21 Democrats-2 Independents-4 Republicans)             

Authorizes full concurrent receipt of retired pay and veterans' disability compensation for retirees with regular or Guard/Reserve retirements. This is a companion bill to hr 303.  

 

Social Security Fairness Act of 2007: Bill # S.206
Original Sponsor: Dianne Feinstein (D-CA)
Cosponsor Total: 34 (27 Democrats-1 Independent-6 Republicans)                  

This bill would repeal the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). Changes to Social Security law passed in 1977 and 1983 resulted in unintended reductions to the social security and survivor benefits of federal retirees. This is a companion bill to HR 82.

 

Pretax Health Care Premiums: Bill # S.773
Original Sponsor: John Warner (R-VA)
Cosponsor Total: 45 (26 Democrats-19 Republicans)                                        

This would let uniformed services retiree beneficiaries, their family members and survivors pay TRICARE Prime enrollment fees and TRICARE Standard supplemental insurance premiums with pre-tax dollars. It would also allow federal retirees to purchase their Federal Employee Health Benefits (FEHBP) premiums in pre-tax dollars. As this benefit already is available to many private sector employees, this bill would extend the same privilege to all active and retired service members and federal civilians. This is a companion bill to HR 1110.

 

Military Health Care Protection Act: Bill # S.604
Original Sponsor: Frank Lautenberg (D-NJ)
Cosponsor Total: 19 (16 Democrats-3 Republicans)                                            

Bars increases in the TRICARE Prime enrollment fee and TRICARE pharmacy co-pays in any year by a percentage that exceeds the percentage increase in military retired pay and bars TRICARE Reserve Select premiums from being increased by a percentage that exceeds the most recent basic pay increase. Also bars any enrollment fee for TRICARE Standard and any increase in the TRICARE Standard inpatient co-pay.

 

Medicare Access to Rehabilitation Services Act: Bill # S.450
Original Sponsor: John Ensign (R-NV)
Cosponsor Total: 32 (18 Democrats-2 Independents-12 Republicans)                  

This legislation would repeal the Medicare payment cap for outpatient physical therapy services. Currently, an exception can be granted by providing proof of medical necessity. However, if no further action is taken this exception will expire on December 31, 2007. This is a companion bill to HR 748.  

 

Tax Incentives for Guard-Reserve Employers: Bill # S.384
Original Sponsor: Mary Landrieu (D-LA)
Cosponsor Total: 6 (5 Democrats-1 Republican)                                              

Entitles federal employees who are absent from their jobs for a period of more than 90 days for the purpose of performing active duty service in the uniformed services to receive the full amount of basic pay that they would have received if there had been no such interruption in their federal employment. Amends Internal Revenue Code to allow employers a business tax credit for 50 percent of the actual compensation paid to Ready Reserve-National Guard employees while on active duty or hospitalized incident to such duty; to allow employers a tax credit for wages paid to temporary employees hired to replace Ready Reserve-National Guard employees while on active duty;  to provide for withholding of tax on differential wage payments to active duty members of the uniformed services; and to treat such differential wage payments as employee compensation for retirement plan purposes, including the deductibility of contributions to individual retirement accounts.

 

Disabled Veterans Tax Fairness Act of 2007: Bill # S.326
Original Sponsor: Blanche Lincoln (D-AR)
Cosponsor Total: 29 (22 Democrats-7 Republicans)                                          

Amends Internal Revenue Code to provide a special period of limitation when service members retirement pay is reduced as result of awarded disability compensation. This allows disabled retirees to file amended returns for more than three tax years in cases where the VA approval is retroactive for more than that time. This is a companion bill to HR 2234.

 

Assistance Act of 2007: Bill # S.22
Original Sponsor: James Webb (D-VA)
Cosponsor Total: 20
(20 (19 Democrats-1 Independent)                                                                    

Establishes a program of educational assistance for members of the Armed Forces who serve in the Armed Forces after September 11, 2001.

 

---

 

| Top | Home | Legislative News | Legislative Process |Site Map |

 

USAWOA Online 10/4/2007