Defense

Obama backs plan to overhaul military benefits

President Obama is endorsing the proposal by a blue-ribbon panel to revamp military pay and benefits. 

“I believe the recommendations are an important step forward in protecting the long-term viability of the All-Volunteer Force, improving quality-of-life for service members and their families, and ensuring the fiscal sustainability of the military compensation and retirement systems,” Obama said Monday in a letter to House Speaker John Boehner (R-Ohio) and Vice President Biden.

{mosads}He said his administration “fully supports the underlying objectives of each of the [Military Compensation and Retirement Modernization] Commission’s 15 recommendations.”

The commission was appointed by Congress in 2013 to examine the politically divisive issue of overhauling military pay and benefits.

The Pentagon in recent years has sought to cut troop compensation, citing ballooning costs at a time of shrinking defense budgets. However, lawmakers have roundly rejected any reductions.

The panel’s new recommendations though have received a positive reception from lawmakers since being unveiled at the end of January.

The most controversial proposal would essentially abolish Tricare, the healthcare system for service members.

The commission’s recommendations would allow nearly 5 million active-duty family members, reservists and retirees who are not yet old enough to receive Medicare to leave the Tricare system and sign up for a private insurance plan.

The panel also called for overhauling the existing retirement system, which benefits troops who have served for a minimum of 20 years.

Those changes though have received a mixed response from groups representing veterans and military families who worry the reforms go too far to save costs.

In his letter, Obama said he would send a report to Congress on April 30 detailing “proposals that I recommend be enacted without delay.” But he added that “subsequent analysis may be needed for some of the recommendations.”

The leaders of the Senate and House Armed Services committees have hinted that some, or all, of the commission’s recommendations could be wrapped into their annual defense policy bills.