Chapter Leaders’ Symposium Legislative Chair … · Chapter Leaders’ Symposium Legislative Chair Workshop Outbrief & ... retirees and currently serving entrants before 1 Jan 14

Chapter Leaders’ Symposium

Legislative Chair Workshop Outbrief &

Legislative Update

September 12, 2015

Chapter Advocacy Importance • Grassroots Support of MOAA Legislative Goals

– Largest single group we can mobilize on important issues

– Legislators listen to you first • Leverage during Storming the Hill

• MOAA Ambassadors in the Community – Community and Business Leaders – Give Back – Bridge military to civilian divide – Chapters are the face of MOAA

• Chairs/Liaisons key to advocacy efforts – link btw chapter advocacy mission & MOAA national legislative agenda

• Personalizes chapter/legislator relationship • Provides legislative focal point in every district • Goal – have chapter chair or liaison in every

Congressional District (435) • Roughly 82% coverage now – assumes some

chapters cover more than one district

Chapter Legis Chair/Liaison Role

What Works For You?

• Two sessions: – Morning = Legislative tools – Afternoon = brainstormed best practices

• How have you/your chapter influenced national-level issues?

• How have you/your chapter influenced state-level issues?

• What tools would you like MOAA to provide to make your advocacy efforts more successful?

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Presenter

Presentation Notes

Breakout session Thank you for taking the time to be a part of our first legislative training session. We’ve given you a the fire hose treatment when it comes to information today, but now we want to hear from you. What challenges do you face in terms of legislative advocacy? What resources from MOAA would you want? What have we missed? What would you like to see more of? This is our chance to hear from you.

Workshop Take-A-Ways (Influencing National-level Issues)

• Build personal relationship with local staff • Establish/leverage MOAA credibility • Do your homework – know legislator’s

background, military experience, etc. • Avoid complaint session, bring issues with

possible solutions • See if legislator has a military advisory

committee (prevalent with mil installations)

Workshop Take-A-Ways (Influencing State-level Issues)

• Build coalitions with other associations • Engage and develop relationships with state

legislators and their staffs • Network with governor’s military advisory

committee • Participate in state legislator-sponsored

events (town halls, coffees, discussion panels)

Workshop Take-A-Ways (Tools for Success)

• Provide one-stop shop on MOAA website that highlights state-level SMEs – Identify/Post key POCs on specific issues (e.g.

veterans courts, tax exemptions, coalition building, state STH, etc.)

– Post successful legislative language from other states

• Negotiate lower price for a state-level Capwiz used by multiple state councils

Legislative Update

September 12, 2015

Current Hill Environment

• Military Experience in Congress • Decade of Wins following 9-11 • Major Risks are Here • Slow the growth • Key Issues

– FY 16 Budget / Defense Bill Status – VA Health Care

Presenter

Presentation Notes

In mid December, FY14 funding battles were brewing and a solution, the Bipartisan Budget Act, was pushed through in the eleventh hour to alleviate sequestration impacts, debt limit, and borrowing authority. Hidden in the BBA was a change to the military retirement system for working-age retirees – a COLA cut by 1% each year. The change impacted existing retirees and currently serving as well as medically retired personnel & survivors – no “grandfather” clause Hill firestorm followed: MOAA developed slide that highlighted the financial impact of the change. The Military Coalition stormed the Hill; participated in three press conferences; sent over 297,000 msgs. Congress reacted with 17+ repeal bills introduced. MOAA Chairman testified before full SASC hearing. Result: partial repeal – grandfathers current retirees and currently serving entrants before 1 Jan 14

Military Experience in Congress

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10%

20%

30%

40%

50%

60%

70%

80%

1983 -1984

1989 -1990

1995 -1996

2001 -2002

2007 -2008

2013 -2014

SenateHouse

Decade of Wins • Major pay raises for currently serving* • End strength increases* • Survivor Benefit upgrades • Defeated major TRICARE fee hikes* • TRICARE For Life/TRICARE Senior Pharmacy* • Post-9/11 GI Bill and transferability • Wounded Warrior protections • Caregiver enhancements • Repealed REDUX retirement penalties* • Major compensation increase for disabled retirees • Reserve TRICARE coverage • G/R retirement age credit for active duty service • Added protections for spouses/children

Presenter

Presentation Notes

Congress has been very supportive. Decade of fixes now being used as a reason to gut military pay and benefits. Major Pay Raises for Active/Guard/Reserve - 11% Above Private Sector over decade Increases in ground troop end strength Fee-based TRICARE Eligibility for all Selected (Drilling) Guard/Reserve Members Full Housing Allowance for Guard/Reserve Members Activated 30+ Days Continuation of Combat-Zone Pays During Hospitalization of Wounded Troops Limited Income Replacement Plan for Mobilized Guard/Reserve Raise Hardship Duty Pay from $300 to $750 Traumatic Injury Disability Insurance Rider to SGLI Increased Death Gratuity to $100,000 for All Active Duty Deaths Increase Maximum SGLI Coverage to $400,000 for All Members Retroactive SGLI and Death Gratuity Payments to Oct 7, 2001 Improved Impact Aid to School Districts with Military Children Affected by BRAC Further Commissary Privatization Studies Barred Through 2008

Environment on Capitol Hill

• After decade of fixes, DoD “must slow the growth” • Undoing previous decade of legislative wins • DoD rhetoric emboldened Congress: COLA -1% • FY16 budget continues cutbacks to pay and benefits • And that’s just a drop in the bucket:

• FY16 budget rehash of FY15

• Military Compensation and Retirement Modernization Commission (MCRMC) recommendations

• Sequestration still looms

FY16 Budget Details

• Seven straight years of active duty pay caps • Continues BAH cuts, increases out-of-pocket to 5% • Reduces commissary funds: patrons lose 66% savings • TRICARE consolidation:

• Higher deductibles and copays

• 10-year Rx fee increase plan

• Eliminates Prime for working-age retirees

• Working age retirees to pay at MTFs

• New enrollment fees (means testing) for TFLers (grandfathers those currently over 65)

President’s Budget Currently Serving Impact

*FY 2014 - 2016 aggregate loss

Annual loss of purchasing power from FY 2016 budget proposal (active duty family of four with 10 years of service)

E-5 O-3 Loss of Basic Pay* $979 $1,867

Basic Allowance for Housing $1,224 $1,584

Commissary $2,970 $2,970

Total Annual Loss $5,173 $6,421

FY16 Defense Bill Status

• Divide between House and Senate on DoD proposals • Both bills have many of the MCRMC recommendations • Big changes to military retirement:

• Blended system: pension and Thrift Savings Plan

• Pension multiplier reduced by 20%

• Govt match up to 5% with 1% base pay contribution

• Fully vests after 2 years

• Conference started in July – delays over Rx fees & retirement

What’s in the FY16 Defense Bill

Proposal House Senate Final Retirement reform Yes Yes Yes

Means testing TRICARE fees No No No

TRICARE consolidation No No No

Active duty pay raise 2.3% 1.3% TBD

Cuts to housing allowances No Yes TBD

Cuts to commissaries No Yes TBD

TRICARE Rx fee increases No Yes TBD

Blended Retirement Proposals Proposal House Senate Pentagon MOAA

Pension multiplier reduction Yes Yes Yes Concerned

Disability multiplier 2% 2% 2.5% 2.5%

Government contribution 1% 1% 1% 1%

Government match Up to 5% Up to 4% Up to 5% Up to 5%

Match begins 2 YOS 2 YOS 4 YOS 1st term

Match ends Retirement 20 YOS Retirement Retirement

Continuation pay at 12 YOS Yes Yes 8-16 YOS Needs floor

Lump sum retirement option No Yes No No

COLA -1% Remain Remain Repeal Repeal

Grandfather current force Yes Yes Yes Yes

Veterans/Health Care Issues

• Wins:

• Sustainable Growth Rate (Doc Fix): 21% cut in Medicare & TRICARE payments averted

• Veteran Choice Program: driving distance rule change

• Concerns: • TRICARE: mandatory mail-order begins Oct 1

• VA budget shortfall: VA to use internal funding to address sharp rise in demand/Hep C treatment and consolidate purchased care program – MOAA recommendation

• TRICARE budget shortfall: non-MTF funding

Presenter

Presentation Notes

Late April, at the urging of MOAA and several partners in The Military Coalition, the VA changed eligibility criteria for the Choice Program. Veterans who live more than 40 miles away from the closest VA health care facility and have wait times of more than 30 days to see a VA physician are eligible. Previously, the VA used a straight-line determination to measure distance from a veteran’s home of record to the closest VA facility. Now the VA uses a more appropriate factor of driving distance. The change allows twice as many veterans to become eligible for the program. At an June 25, HVAC Hearing on the State of VA Health Care Budget, Deputy Secretary of the VA told lawmakers the department needs the money to bridge the gap of the projected shortfall. The budget deficit is largely a result of increased demand for care outside of VA facilities and the rising costs of expensive hepatitis C treatments. VA is also experiencing funding shortfalls as a result of ongoing delays/cost overruns of its Regional Denver, CO medical center project that now costs about three-times its original budget--Lawmakers authorized an additional $150M through Sept 2015. 2015 Warrior-Family Symposium (WFS—September 8, Ronald Reagan Building and International Trade Center, Washington, DC). The theme for the 9th Annual WFS is, “Our Nation’s Military: Caring For Our Own,” and this year’s event is co-sponsored by the Military Officers Association of America and the Wounded Warrior Project.

Looking Ahead

• Force of the Future study • Overhaul of “antiquated” and “oppressive bureaucracy”

• Focus on recruiting/retaining millennials

• Looking at flexibility in assignments, developing talent, dual-track careers, promotion structure, length of service, etc

• Implementation in 18 months

• Expect more TRICARE changes in FY17 • Graham: “TRICARE’s eliminating itself. We’re going to replace

TRICARE with more choice.”

• VA Commission on Care: review VA health care delivery

Questions?

Military Compensation and Retirement Modernization Commission (MCRMC)

15 recommendations to change pay and benefits: • Military retirement (adopted) • Health care (rejected)

• Eliminate TRICARE and replace with FEHBP-like program: TRICARE Choice

• New Basic Allowance for Health Care

• Retirees under 65: 15 year phase-in of increasing cost shares from MCRMC estimated 5% to 20%

• TFL and pharmacy benefit remain intact

Presenter

Presentation Notes

The nine person commission was tasked with reviewing military compensation and making recommendations to ensure the long-term viability of the all-volunteer force, provide a quality of life that fosters recruitment and retention, and modernizing retirement pay to achieve savings for DoD and the VA. The biggest change to the retirement system is a 401k-like program that vests servicemembers after two years. This provides a portable retirement benefit for the majority of troops that never serve a career in uniform. The program would come at the expense of folks who serve 20 or more years of service in uniform. The government provides a 1 percent match of TSP contributions up to 20 years. After that, the government would not match contributions. Other pay and retirement recommendations include: - eliminating the SBP-DIC offset by changing to calculation of servicemember contributions - providing additional financial education for transitioning servicemembers - consolidating reserve component duty statuses from 30 to 6 Other QOL recommendations include: - consolidating GI Bill options and increasing eligibility requirements for transferring GI Bill benefits - consolidating commissaries and exchanges while maintaining the 5% surcharge on goods - giving base commanders the option of providing on-base child care facilities

Documents

Chapter Leaders’ Symposium Legislative Chair … · Chapter Leaders’ Symposium Legislative Chair Workshop Outbrief & ... retirees and currently serving entrants before 1 Jan 14