Three aviation boatswain's mates (handling) from the amphibious assault ship USS Wasp (LHD 1) and USS Bataan (LHD 5) conduct a chock and chain evolution with an SH-60 Sea Hawk aboard Wasp.

Three aviation boatswain's mates (handling) from the amphibious assault ship USS Wasp (LHD 1) and USS Bataan (LHD 5) conduct a chock and chain evolution with an SH-60 Sea Hawk aboard Wasp. U.S. Navy photo by Mass Communication Specialist 3rd Class Rawad Madanat

Military Pay and Benefits in Limbo As Obama Weighs Veto

The defense bill includes a 1.3 percent pay raise for troops in 2016, an overhaul of the retirement system, and money for basic housing allowances.

This story has been updated.

The pay and benefits of troops and their families next year remain in limbo as President Obama weighs a veto of the fiscal 2016 Defense authorization bill.

The massive Defense bill includes a 1.3 percent pay raise in 2016 for troops, an overhaul of the military’s retirement system, and money for basic housing allowances, among other provisions affecting service members’ finances. Obama has to decide whether to send the legislation back to Congress to fix “a number of provisions” he opposes, most significantly one that allows Defense to sidestep sequestration caps by increasing the “emergency” Overseas Contingency Operations fund.

The president has 10 days (excluding Sundays) to sign or reject a bill passed by Congress. The Senate passed the final version of the fiscal 2016 Defense authorization bill on Oct. 7 (the House passed it on Oct. 1), but Congress hasn't sent Obama the bill yet. Congress returns from recess next week, and is expected to send it to the president then, when the countdown clock will begin.

The president has threatened to veto the last six defense authorization bills, but ultimately he signed them into law.

A veto override in Congress is unlikely because the House doesn’t have the votes. While the Senate passed the legislation 70-27, Minority Leader Harry Reid, D-Nev., has said Democrats will sustain the veto if Obama nixes the bill.

Some of the most significant pay and benefits provisions in the bill affect the military’s retirement system, phasing in changes that would allow non-career military service members to boost their retirement nest eggs. The changes, based on recommendations from the Military Compensation and Retirement Modernization Commission, would automatically enroll new troops into the Thrift Savings Plan at 3 percent of their pay with a 1 percent government deposit. Also, the government can match up to 5 percent of any additional contributions service members make. 

In addition, service members who stay in the military for 20 years, and are thereby entitled to a retirement pension, would receive a less generous calculation for their annuity. To encourage members to stay in the military, they would receive “continuation pay” after 12 years of service.

The new blended retirement system would only affect new service members. Current service members are grandfathered into the current system, but could opt into the new one.

The fiscal 2016 Defense bill also:

  • Continues providing two basic housing allowances to dual-military married couples and unmarried service members living together.
  • Covers 95 percent of estimated housing expenses, reducing the monthly amount of the BAH through a phased decrease of 1 percent (which began in fiscal 2015) per year over four years.
  • Requires “modest” increases to TRICARE pharmacy drug co-pays for many enrollees.
  • Requires the Defense Department to reduce its workforce by 25 percent over the next five years. Savings already realized by the Pentagon’s self-initiated cuts implemented in recent years would count toward the final reduction goal, which must be met in fiscal 2020.
  • Preserves cuts to per diems for service members and Defense civilian employees on long-term government travel.
  • Maintains the current structure of the commissary system.

If Obama decides to veto the bill, service members will need to keep an eye on Dec. 11. That’s when the current continuing resolution funding the government expires. If Congress can’t agree on a long-term spending plan or another stop-gap funding measure by then, the government will shut down and troops’ paychecks (as well as the pay of federal civilian employees) will be delayed.

Rep. Mike Coffman, R-Colo., has introduced the Pay Our Military Act, which mandates that all active-duty, reservists, National Guard troops, as well as any civilians and contractors working in support of those forces, be paid on time regardless of the shutdown’s duration.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.