S.25-Military, repeal cut in pension COLA for veterans under 62: Don't be Fooled

[Wayne Humphrey]

Again, Congress is attempting to balance the budget, in part, on the backs of those who protect the rights and provide the security of all Americans both foreign and domestic. Before we consider balancing the budget on their backs, maybe we should be more vocal to our Congressmen and women. We should demand that mandatory payment social programs be trimmed before we start asking men and women in uniform to sacrifice. They have sacrificed enough already!

The legislation waiting for the president to sign only affects those already retired prior to January 1, 2014.

If you have a son, daughter, spouse, friend, neighbor, or the like serving now, this new bill, S.25, does not affect the COLA adjustment by CPI minus 1%.

We that are retired have a responsibility to those still serving to protect their interests while they are serving on far-away shores.

Below is the current form of the law in the United States' Code, Title 10.

Below that are the vehicles that amended it (PL-113-67, PL-113-76 & S.25)

Under those, I have put the code and amendments together as it would appear in Title 10 today.

TITLE 10 USCODE, as of 2012: Black Font

Public Law 113–67: Blue Font

Public Law 113–76: Green Font

S.25: Purple Font

Amendments to TITLE 10 USCODE § 1401a -- Retired Pay Adjustments

TITLE 10 USCODE, as of 2012

§ 1401a. Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index

(a) PROHIBITION ON RECOMPUTATION TO REFLECT INCREASES IN BASIC PAY.—Unless otherwise specifically provided by law, the retired pay of a member or former member of an armed force may not be recomputed to reflect any increase in the rates of basic pay for members of the armed forces. (b) COST-OF-LIVING ADJUSTMENTS BASED ON CPI INCREASES.—

(1) INCREASE REQUIRED.—Effective on December 1 of each year, the Secretary of Defense shall increase the retired pay of members and former members entitled to that pay in accordance with paragraphs (2) and (3).

(2) PERCENTAGE INCREASE.—Except as otherwise provided in this subsection, the Secretary shall increase the retired pay of each member and former member by the percent (adjusted to the nearest one-tenth of 1 percent) by which—

(A) the price index for the base quarter of that year, exceeds

(B) the base index.

(3) REDUCED PERCENTAGE FOR CERTAIN POSTAUGUST 1, 1986 MEMBERS.—If the percent determined under paragraph (2) is greater than 1 percent, the Secretary shall increase the retired pay of each member and former member who first became a member on or after August 1, 1986, and has elected to receive a bonus under section 322 (as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2008) or section 354 of title 37, by the difference between—

(A) the percent determined under paragraph (2); and

(B) 1 percent.

(4) SPECIAL RULE FOR PARAGRAPH (3).—If in any case in which an increase in retired pay that would otherwise be made under paragraph (3) is not made by reason of law (other than any provision of this section), then (unless otherwise provided by law) when the next increase in retired pay is made under this subsection, the increase under paragraph (3) shall be carried out so as to achieve the same net increase in retired pay under that paragraph that would have been the case if that law had not been enacted.

(5) REGULATIONS.—Any increase in retired pay under this subsection shall be made in accordance with regulations prescribed by the Secretary of Defense.

PL-113-67

SEC. 403. ANNUAL ADJUSTMENT OF RETIRED PAY AND RETAINER PAY AMOUNTS FOR RETIRED MEMBERS OF THE ARMED FORCES UNDER AGE 62.

(a) CPI MINUS ONE PERCENT.—Section 1401a(b) of title 10, United States Code, is amended—

(1) in paragraph (1), by striking ‘‘paragraphs (2) and (3)’’ and inserting ‘‘paragraph (2), (3), or (4)’’;

(2) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and

(3) by inserting after paragraph (3) the following new paragraph (4):

‘‘(4) REDUCED PERCENTAGE FOR RETIRED MEMBERS UNDER AGE 62.—

‘‘(A) IN GENERAL.—Effective on December 1 of each year, the retired pay of each member and former member under 62 years of age entitled to that pay shall be adjusted in accordance with this paragraph instead of paragraph (2) or (3).

 ‘‘(B) CPI MINUS ONE.—If the percent determined under paragraph (2) is greater than 1 percent, the Secretary shall increase the retired pay of each member and former member by the difference between—

‘‘(i) the percent determined under paragraph (2); and

‘‘(ii) 1 percent.

‘‘(C) NO NEGATIVE ADJUSTMENT.—If the percent determined under paragraph (2) is equal to or less than 1 percent, the Secretary shall not increase the retired pay of members and former members under this paragraph.

 ‘‘(D) REVISED ADJUSTMENT UPON REACH ING AGE 62.—When a member or former member whose retired pay has been subject to adjustment under this paragraph becomes 62 years of age, the Secretary of Defense shall recompute the retired pay of the member or former member, to be effective on the date of the next adjustment of re16 tired pay under this subsection, so as to be the amount equal to the amount of retired pay to which the member or former member would be entitled on that date if increases in the retired pay of the member or former member had been computed as provided in paragraph (2) or as specified in section 1410 of this title, as applicable, rather than this paragraph.

‘‘(E) INAPPLICABILITY OF CATCH-UP RULE.—Paragraph (5) shall not apply in the case of adjustments made, or not made, as a result of application of this paragraph.’’

(b) RESTORAL OF FULL RETIREMENT AMOUNT AT AGE 62.—Section 1410(1) of title 10, United States Code, is amended by striking ‘‘paragraph (3)’’ and inserting ‘‘paragraph (3) or (4)’’.

(c) EFFECTIVE DATE.—The amendments made by sub8 sections (a) and (b) shall take effect on December 1, 2015.

PL-113-76

SEC. 10001. INAPPLICABILITY OF ANNUAL ADJUSTMENT OF RETIRED PAY FOR MEMBERS OF THE ARMED FORCES UNDER THE AGE OF 62 UNDER THE BIPARTISAN BUDGET ACT OF 2013 TO MEMBERS RETIRED FOR DISABILITY AND TO RETIRED PAY USED TO COMPUTE CERTAIN SURVIVOR BENEFIT PLAN ANNUITIES.

(a) INAPPLICABILITY.—Paragraph (4) of section 1401a(b) of title 10, United States Code, as added by section 403(a) of the Bipartisan Budget Act of 2013, is amended—

(1) in subparagraph (A), by inserting after ‘‘age’’ the following: ‘‘(other than a member or former member retired under chapter 61 of this title)’’; and

(2) by adding at the end the following new subparagraph:

‘‘(F) INAPPLICABILITY TO AMOUNT OF RETIRED PAY USED IN COMPUTATION OF SBP ANNUITY FOR SURVIVORS.—In the computation pursuant to subsection (d) or (f) of section 1448 of this title of an annuity for survivors of a member or person who dies while subject to the application of this paragraph, the amount of the retired pay of such member or person for purposes of such computation shall be the amount of retired pay that would have been payable to such member or person at the time of death without regard to the application of this paragraph.’’.

S.25 113TH CONGRESS - RESTORING MILITARY RETIREE COLA

SEC. 2. INAPPLICABILITY OF REDUCED ANNUAL ADJUSTMENT OF RETIRED PAY FOR MEMBERS OF THE ARMED FORCES UNDER THE AGE OF 62 UNDER THE BIPARTISAN BUDGET ACT OF 2013 WHO FIRST BECAME MEMBERS PRIOR TO JANUARY 1, 2014.

(a) IN GENERAL.—Section 1401a(b)(4) of title 10, United States Code, as added by section 403(a) of the Bipartisan Budget Act of 2013 (Public Law 113–67) and amended by section 10001 of the Department of Defense Appropriations Act, 2014 (Public Law 113–76), is amended by adding at the end the following new subparagraph:

‘‘(G) MEMBERS COVERED.—This paragraph applies to a member or former member of an armed force who first became a member of a uniformed service on or after January 1, 2014.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect on December 1, 2015, immediately after the coming into effect of section 403 of the Bipartisan Budget Act of 2013 and the amendments made by that section.

 

TITLE 10 USCODE AMENDED

§ 1401a. Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index

(a) PROHIBITION ON RECOMPUTATION TO REFLECT INCREASES IN BASIC PAY.—Unless otherwise specifically provided by law, the retired pay of a member or former member of an armed force may not be recomputed to reflect any increase in the rates of basic pay for members of the armed forces. (b) COST-OF-LIVING ADJUSTMENTS BASED ON CPI INCREASES.—

(1) INCREASE REQUIRED.—Effective on December 1 of each year, the Secretary of Defense shall increase the retired pay of members and former members entitled to that pay in accordance with paragraph (2), (3), or (4).

(2) PERCENTAGE INCREASE.—Except as otherwise provided in this subsection, the Secretary shall increase the retired pay of each member and former member by the percent (adjusted to the nearest one-tenth of 1 percent) by which—

(A) the price index for the base quarter of that year, exceeds

(B) the base index.

(3) REDUCED PERCENTAGE FOR CERTAIN POSTAUGUST 1, 1986 MEMBERS.—If the percent determined under paragraph (2) is greater than 1 percent, the Secretary shall increase the retired pay of each member and former member who first became a member on or after August 1, 1986, and has elected to receive a bonus under section 322 (as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2008) or section 354 of title 37, by the difference between—

(A) the percent determined under paragraph (2); and

(B) 1 percent.

(4) REDUCED PERCENTAGE FOR RETIRED MEMBERS UNDER AGE 62.—

(A) IN GENERAL.—Effective on December 1 of each year, the retired pay of each member and former member under 62 years of age (other than a member or former member retired under chapter 61 of this title) entitled to that pay shall be adjusted in accordance with this paragraph instead of paragraph (2) or (3).

(B) CPI MINUS ONE.—If the percent determined under paragraph (2) is greater than 1 percent, the Secretary shall increase the retired pay of each member and former member by the difference between—

(i) the percent determined under paragraph (2); and

(ii) 1 percent.

(C) NO NEGATIVE ADJUSTMENT.—If the percent determined under paragraph (2) is equal to or less than 1 percent, the Secretary shall not increase the retired pay of members and former members under this paragraph.

(D) REVISED ADJUSTMENT UPON REACH ING AGE 62.—When a member or former member whose retired pay has been subject to adjustment under this paragraph becomes 62 years of age, the Secretary of Defense shall recompute the retired pay of the member or former member, to be effective on the date of the next adjustment of re16 tired pay under this subsection, so as to be the amount equal to the amount of retired pay to which the member or former member would be entitled on that date if increases in the retired pay of the member or former member had been computed as provided in paragraph (2) or as specified in section 1410 of this title, as applicable, rather than this paragraph.

(E) INAPPLICABILITY OF CATCH-UP RULE.—Paragraph (5) shall not apply in the case of adjustments made, or not made, as a result of application of this paragraph.

(F) INAPPLICABILITY TO AMOUNT OF RETIRED PAY USED IN COMPUTATION OF SBP ANNUITY FOR SURVIVORS.—In the computation pursuant to subsection (d) or (f) of section 1448 of this title of an annuity for survivors of a member or person who dies while subject to the application of this paragraph, the amount of the retired pay of such member or person for purposes of such computation shall be the amount of retired pay that would have been payable to such member or person at the time of death without regard to the application of this paragraph.

(G) MEMBERS COVERED.—This paragraph applies to a member or former member of an armed force who first became a member of a uniformed service on or after January 1, 2014.

(5) SPECIAL RULE FOR PARAGRAPH (3).—If in any case in which an increase in retired pay that would otherwise be made under paragraph (3) is not made by reason of law (other than any provision of this section), then (unless otherwise provided by law) when the next increase in retired pay is made under this subsection, the increase under paragraph (3) shall be carried out so as to achieve the same net increase in retired pay under that paragraph that would have been the case if that law had not been enacted.

(6) REGULATIONS.—Any increase in retired pay under this subsection shall be made in accordance with regulations prescribed by the Secretary of Defense.