Panel calls for overhaul of military benefits

A military commission on Thursday recommended an overhaul of troop retirement pay and healthcare benefits that would save the Pentagon $20 billion over the next four years.

Lawmakers could adopt the changes as early as this year, but the proposals are likely to face scrutiny from military advocacy groups.

{mosads}The most far-reaching of the 15 recommendations from the nine-member, congressionally-appointed panel was a change to retirement pay for troops serving 20 years.

Instead of receiving an annuity equal to 50 percent of their base pay after 20 years, retiring service members could opt for a lump-sum payment. The payment would equal the value of an annuity for those leaving the service and receiving Social Security benefits at 62.

Lower-ranking troops could receive a 401(k)-style plan they could invest in, with matching government funds. They could also receive a retention bonus after 12 years of service.

Any retirement changes adopted into law by Congress would not apply to current troops or retirees unless they wanted to opt in, the commission members said at a press briefing Thursday. However, changes to healthcare benefits would affect current troops and retirees.

The recommendations would also eliminate Tricare, the current military healthcare system.

Active-duty troops would continue receiving healthcare from their military treatment facility, but future retirees, dependents and reserve members would be moved to a plan provided to federal civilian workers.

Congress created the commission in 2013 to look into ways to cut personnel costs that the Pentagon says eat up its budget.

The Pentagon for years has pushed to cut military compensation, but lawmakers have rejected those calls under pressure from military advocacy groups.

The recommendations now head to the White House and Congress, which could enact them as early as this year if lawmakers adopt them.

“I greatly appreciate the hard work and proposals offered by the members of the Commission. They have tackled a difficult and very important issue,” said House Armed Services Committee Chairman Mac Thornberry (R-Texas).

However, he added that pay and benefits “must compete with the private sector for talent.”

“Our people are our most valuable resource, and the Committee will want to thoroughly study the Commission’s proposals to understand how they will affect our ability to recruit and retain the top quality individuals we need,” he said.

“Congress has struggled to address military pay and benefits for years, and I am hopeful that, after careful review, the commission’s recommendations will present Congress with an opportunity to finally begin to address this issue,” added committee ranking member Adam Smith (D-Wash.).

Veterans groups responded tentatively, saying they would study the commission’s recommendations.

“The report does contain recommendations to increase military retiree Tricare fees, as well as to alter the military retirement program for future enlistees, but the devil is always in the details,” said John W. Stroud, the national commander of the Veterans of Foreign Wars. “[T]he VFW will now review the entire report in detail and address our concerns with the United States Congress.

“We thank the Commission for their hard work in preparing this report and providing these recommendations. We now look forward to carefully reviewing each one, with the health, welfare and readiness of the All Volunteer Force as our top priority,” said John Stovall, national security director for The American Legion.