1. Military Retiree Expo Camp Pendleton Legislative & Benefits Update September 18, 2010 Presented by Katherine O’Neill Tracy COMMANDER, USN (Ret) Deputy Director, Benefits Information and Financial Education Department Military Officers Association of America

2. Agenda  Who We Are  The Military Coalition  Current Hill Environment & 2011 Goals  Defense Bill Status  Health Reform  SBP/DIC  Effects of Remarriage  Q & A

3. MOAA  Founded in 1929  Represents over 370,000 Members  Members include (former and current) Commissioned/Warrant Officers of the Uniformed Services  Focus on Active, Guard & Reserve, Retired & Survivor Issues  Advocates for a Strong National Defense with Congress

4. The Military Coalition  Organized in 1985  32 Military/Veterans Assns  Represents over 5.5 Million Members  Each With Its Own Programs/Goals  United Purpose: Strong Advocacy  Focus on Active, Guard & Reserve, Retired & Survivor Issues  Operates Under “Rule of 5”

5. The Military Coalition AAAA AFA AFSA AFWOA AMSUS AMVETS AUSA AUSN COA CWOA EANGUS FRA GSW IAVA JWV MCA MCRA MCL MOAA MOPH NAUS NCOA NERA NGAUS NMFA REA ROA SMCAF TREA USCGPOA USAWOA VFW

6. Military Experience in Congress 103 rd 105 th 107 th 108 th 109 th 110 th 111th Senate 60% 48% 38% 35% 31% 29% 25% House 41% 32% 30% 27% 25% 23% 22%

7. Current Hill Environment  Afghanistan  Obligations to Wounded & Survivors  Stress on the Force  Health Care Reform Implementation  Defense Spending  People vs. Weapons Costs  Financial Reform, Economic Recovery, & the Federal Deficit  “Entitlement” Spending Commission

8. Heard on the Hill “Health care is eating us alive.” - Robert Gates (SecDef) "Rising personnel costs could dramatically affect the readiness of the department." - Dr. Clifford Stanley (USD P&R)

9. Past Entitlement Commissions  All Govt Programs to be Scrutinized  Past Commissions – no Consensus  Recommendations/Findings Included:  Cap combined mil retirement & Social Security to 80% of active duty pay  Raise Fed Retirement to age 60  Severely Restrict COLAs on Fed Annuities  Means-test Medicare/Raise Eligibility Age  Raise Social Security to age 70

10. Deficit Commission  MOAA Testified June 30  Report Due Dec 1 st  14 of 18 Commissioners Must Agree  Issues:  Defense Budget; COLAs, TRICARE/TFL Fees; Social Security; Medicare; Taxes

11. Key 2011 Goals Bar Excess Health Cost-Shifting Increase End Strength to Match Mission Fairer Treatment of Wounded & Families Upgrade Health Care Access Restore/Sustain Pay Comparability End VA Offsets to Ret Pay & SBP Improve Family Support Pgms/Funding Raise PCS Reimbursements Improve G/R Health Coverage/Ret. More Consistent Disability Ret. System

12. Currently Serving Issues IssueHouseSenate End Strength – USA +7K Pay Raise1.9%1.4% Family Separation Allowance & Imminent Danger Pay Increase “Fit But Unsuitable” SeparationsDoD Report Bar Them 15-Yr REDUX Decision EducationDoD Report

13. Retiree/Survivor Issues IssueHouseSenate SBP/DIC Offset SSIA for Forgotten Widows Repeal Offset (Amdt) Phase Out Disability Offset for Chapter 61 Retirees Incl. in Tax Extender Bill (Amdt) G/R Rtmt Age – Reduce 3 Mos for each 90 Days Active since 9/11 (Retro to 9/11/01) (Amdt) SBP Special Needs Trust for Incapacitated Survivors (Amdt)

14. Health Care Issues IssueHouseSenate TRICARE for children to age 26 Bar TRICARE Fee Hike Standard, Prime, Rx Bar only Inpt Hike Caregiver benefits $3,500 Moving Expense Stipend, Healthcare, Respite Sense of Congress on TRICARE fees Amdt Expected

15. Health Care Reform

16. What’s Changed? For TRICARE Beneficiaries  Under Age 65?  Not much, if anything at all!  Over Age 65?  Cuts in Medicare Advantage HMOs  Cuts in Rural Hospitals  Crack down on abuse of DME

17. Qualifying Coverage?  Yes  TRICARE  Medicare  VA Health Care  All qualify under the new Health Care Legislation

18. Survivor Benefit Program (SBP)

19. SBP Still Not Fixed Paid Up SBP is in place Social Security Offset was eliminated… But the SBP-DIC Offset was not Offset is dollar-for-dollar: SBP $ - DIC $ SBP “Benefit”

20. Concurrent Receipt Full Payment of Retired Pay and VA Compensation

21. Congress Has Fixed For Some CRSC CRDP (Cmbt (Non-Cmbt Related) Related) 20+ Yrs/100% Disability Yes Yes 20+Yrs/50+% Disability Yes Phasing In 20+ Yrs/0-40% Disability Yes No Under 20 Yrs—Med Retire Yes No

22. Concurrent Receipt Haves vs. Have-nots HAVESHAVES Have-notsHave-nots 553k553k 270k270k

23. What’s Next?  COLA Watch  Pending Challenges  What’s in our Crosshairs?

24. COLA Watch 2007 2008 2009 2010 2011 3.3% 2.3% 5.8% 0% ??

25. Pending Challenges  Economic Downturn Impact  “Peace Dividend” Threat to Def. Budget  “Entitlement Reform” Threats – Commission on Fiscal Responsibility and Reform  HC Reform & Medicare/TRICARE Payment Formula

26. Legislative Priorities in our Crosshairs  Keep Commitment to “America’s Team”  Currently Serving (AD, Guard, Reserve), Wounded Warriors, Veterans, Retirees  Keep Health Care Affordable & Accessible  Fight for Pay Equity  Defend Earned Benefits

27. How to Contact Your Congressional Representatives

28. Send a Letter…  MOAA Made It Easy -  Go to:  Print, Sign, & Mail the Letters  Addresses Are on the Letters www.moaa.org/tearoutletters OR use email…

29. WWW.MOAA.ORG

31. The Effects of Remarriage on Benefits & Programs for Surviving Spouses

32. Military Benefits Upon Death of Military Member  Surviving Spouse remains eligible for all benefits (medical care, commissary, exchange, theater, etc.)  Except space-available travel

33. Military Benefits  Effect of Remarriage (non-service member) Upon remarriage lose All military benefits

34. Military Benefits  Remarriage Terminates all benefits except medical will be reinstated (if subsequent marriage ends in death or divorce)

35. Military Survivor Benefit Plan (SBP)  Upon Death of Military Member  If elected SBP SBP Payments Begin

36. SBP  Effect of Remarriage Before Age 55 SBP Payments Suspended  Remarriage Terminates SBP Payments Reinstated

37. SBP  Effect of Remarriage On or After Age 55 No Effect on SBP

38. Dependency & Indemnity Compensation (DIC) DIC is awarded to a surviving spouse of a disabled veteran:  If the death is attributed to an injury or disease incurred on active duty  Or -  If the retiree had 100% VA disability rating –10+ years – 5 continuous years from release of active duty  Or -  Former POW rated 100% one year prior to death

39. DIC & SBP  SBP is reduced  One $ for each $ received in DIC  SBP premiums reimbursed - if  DIC is applied for within 1 year of service member’s death

40. SBP & DIC  Effect of Remarriage Before Age 55 SBP & DIC Suspended

41. DIC  Effect of Remarriage Before Age 57 DIC Suspended  Remarriage Terminates DIC Reinstated

42. SBP & DIC  Effect of Remarriage On or After Age 55 but before Age 57 DIC Suspended & SBP Increased *

43. SBP & DIC  Effect of Remarriage On or After Age 57 You get to keep both! SBP & DIC

44. Social Security  Upon Death of Military Member  Can receive Social Security Survivor Benefits  Reduced rate Age 60

45. Social Security  Effect of Remarriage Before Age 60 Not Eligible on Military Members Record  Remarriage Terminates Eligibility Restored

46. Social Security  Effect of Remarriage After Age 60 No Effect on Social Security Entitlements

47. CHAMPVA  Family Members of Veterans  Permanent & Total disability (service-connected)  Service connected death  Die while having 100% disability

48. CHAMPVA  Effect of Remarriage Lose CHAMPVA  Remarriage Terminates CHAMPVA Restored

49. Permanent ID Cards  FY 2005 Defense Authorization Act  Spouses & Survivors 75 & Older  Began Sep 05  FY 2007  Disabled dependents  Began Jan 07

50. Questions?

51. Military Officers Association of America Benefits Information Department & Financial Education Department 201 N. Washington Street Alexandria, VA 22314-2539 1 800 234-6622 Email: BenInfo@moaa.org Web: www.moaa.org