Research - Rehabilitation - Re-Employment

Sgt. Shaft 04/28/2003

Dear Sgt. Shaft: 
 Congress dealt another blow to military retirees and their families when the House Budget Committee failed to secure funding for legislation that would have eliminated the Social Security offset experienced by Survivor Benefit Plan (SBP) annuitants when they reach age 62.

Enacted in 1972, SBP provides an annuity to surviving spouses equal to 55 percent of the deceased service member's covered military retired pay. The benefit is reduced to 35 percent when the surviving spouse reaches the age of 62 and becomes eligible for Social Security. Representative Jeff Miller (Fla.) introduced legislation (H.R. 548) that would phase out the Social Security offset in increments of five percent per year, over five years. Companion legislation (S. 451) to do the same was introduced by Senator Olympia Snowe (Maine). Both bills enjoyed broad bi-partisan support in Congress.

Early support for H.R. 548 came in the form of a letter from Representative Edward Schrock (Va.) to Budget Committee Chairman Jim Nussle (Iowa) and Ranking Member John Spratt (S.C.) requesting funding for the SBP reform in the House's 2004 budget resolution. The Fleet Reserve Association (FRA) and other Military Coalition (TMC) organizations urged committee members to co-sign the letter. Although a number of members signed on to the letter, funding was not included in the budget resolution.

FRA was instrumental in the enactment of the military SBP program in 1972, which was designed to mirror federal employee's SBP. Participants were responsible for paying 60 percent of the costs, while the government was to subsidize the remaining 40 percent. Today, military retirees pay for more than 80 percent of SBP costs, while the government picks up less than 17 percent of the costs. By way of comparison, the federal government subsidizes its civilian SBP plans - Federal Employees Retirement System (FERS) and Civil Service Retirement System (CSRS) - at 33 percent and 48 percent, respectively.

Probably the greatest disparity between the two plans is that beneficiaries in the federal SBP program do not experience the same offset incurred by military SBP beneficiaries when they reach the age of 62. It is unconscionable that the men and women of our armed forces, who have given up so much in service to and protection of our country, continue to sacrifice at a time when they are in their greatest need.

FRA applauds the efforts of the distinguished Members of Congress noted above and continues to fight to reform SBP and ensure that promises made to military retirees and their families are promises kept.

Sincerely,
Joe Barnes
National Executive Secretary
Fleet Reserve Association, 

Dear Joe,
As our military men and women continue to serve with dignity pride and professionalism, the bucks disappear when it come s to their richly deserved benefit programs. I concur with your sentiment that that promises made to military retirees and their families should be promises kept. I urge the Congress to timely pass this important legislation as justice delayed is justice denied.

Dear Sgt. Shaft,
What is the status of the replacement program for Concurrent Receipt that should go into effect sometime in June 2003? Weren't the people in the Pentagon supposed to send out forms, or announce their availability?

Thanks.
Buster In Maryland

Dear Buster
DoD is still developing all the rules for a planned June 1 start. Once the rules are set, you will hear about them through various veterans and other publication channels. One specific website you may wish to say tuned to is www.moaa.org. It will have the details on it as soon as they are available.............

Shaft Kudos
The Sarge salutes, the Military Officers Association of America (MOAA) for their new support the troops initiative Prompted by the events of September 11, 2001 they established the American Patriot Scholarship Program for the sons and daughters of military personnel (officer and enlisted) who have died in active service. Grants of $2,500 or more are awarded annually and are available for all years of undergraduate study. Tax deductible contributions to the scholarship fund may be made by calling Mrs. Cindy Amos at 800-234-6622 (MOAA), ext. 169. All (100%) of the contributions go directly to assist students in obtaining a college education. MOAA pays all administrative and overhead costs.

The Sarge commends The House Affairs Veterans Affairs Subcommittee on Benefits (Chairman Henry Brown R SC) for holding an oversight hearing on the Troops to Teachers program, a federal program designed to help recruit military veterans become certified to teach in elementary and secondary schools throughout America.

"Troops to Teachers is not just an excellent program for separating servicemembers; the real winners are the students who are fortunate to have a former servicemember as a teacher," said Chairman Brown. "Former servicemembers bring leadership, organizational skills, discipline, and maturity gained from military service into the classroom," he said.

The Troops to Teachers program provides stipends of up to $5,000 for course and teacher certification costs to eligible participants who agree to obtain certification and teach for at least three years under the program. In addition, participants are given assistance in finding employment in high-need local educational agencies or public charter schools and schools with high poverty rates. In lieu of the $5,000 stipend, participants who agree to teach in a school where at least 50 percent of the students are from low-income families may receive up to $10,000.

Send letters to Sgt. Shaft, c/o John Fales, P.O. Box 65900, Washington, D.C. 20035-5900; fax to 301-622-3330; call 202-462-4430 or email sgtshaft@bavf.org.

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