Good news! After weeks and weeks of deadlock, Members of Congress are confident that they will pass the 2008 Military Authorization Act by December 21, when Congress breaks for Christmas. The bill has been stalled in the House/Senate Compromise Committee due mostly to democrat insistence that an unrelated "hate crimes" provision be tacked onto the bill.
If signed by the President before the end of the year, this means that the troops will receive an across-the-board pay raise of 3.5 percent, effective January 1. Without the legislation, military personnel would only receive a 3.0 percent pay raise (a minimum automatic adjustment, mandated by previous law). Additionally, the services will have the authority to continuing paying enlistment, reenlistment, and other bonuses. The current authorization to pay bonuses would otherwise expire on December 31.
Other major provisions of the bill agreed upon by members of the conference committee include:
Combat-Related Special Compensation. Military members who are forced to separate short of 20 years of service due to combat-related injuries will be eligible for monthly CRSC payments, in addition to monthly VA Disability Compensation. The monthly payments will be computed using the same formula as military retirement. The cost of this program is projected to be $678 million over the next 10 years. In adopting this provision, the committee rejected the House proposal which would have limited CRSC payments to those with more than a 50% disability who had served for at least 15 years. This new provision will be effective on January 1, 2008.
Special Survivor Indemnity Allowance. The military Survivor Benefit Plan (SBP) provides an annuity for the survivors of those who die while serving in the Armed Forces and those who have retired from the Armed Forces. For the surviving spouses of those who die of injuries or illness suffered in the line of duty, the Department of Veterans Affairs provides a monetary benefit known as Dependency and Indemnity Compensation or DIC. However, under current law, if a surviving spouse or former spouse is eligible to receive both benefits, the SBP benefit is offset on a dollar-for-dollar basis. Members of the committee agreed on a provision to authorize a monthly survivor indemnity allowance "equal to $50 or the same amount of the SBP annuity subject to the DIC offset should it be a lesser amount." These payments become effective October 1, 2008, and would terminate if not reauthorized by Congress in 2016. The allowance would increase to $100 per month in 2014. The cost of this program is projected to be $477 million through 2016.
Reserve G.I. Bill.Under the current Selective Reserve Montgomery G.I. Bill, members of the National Guard and Reserve forces must use their education benefits before they separate from the Guard/Reserves. Additionally, the benefits expire 10 years after completing initial entry training (basic training and job training). The committee agreed upon a provision to change the expiration date of SRMIG education benefits to 10 years following separation from the Reserves. This mirrors the Active Duty MGIB. Former members of the Guard or Reserve who have previously separated will be able to rejoin and reclaim their previously earned educational benefits and use them for 10 years following their subsequent separation.
Individual Umployability Retirees. When Congress eliminated concurrent receipt for retirees who were rating 100 percent disabled in 2005, excluded were retirees who had a lower disability rating, but were rated 100 percent unemployable. Conferees accepted a Senate provision to grant IU retirees full concurrent receipt, retroactive back to January 1, 2005.
Update: December 31, 2007:
In a surprise move, the President has vetoed HR 1585, the 2008 Defense Authorization Act. This means that U.S. Military personnel will not receive the 3.5 percent raise in military pay authorized by the act on January 1. Instead, troops will receive a raise of 3.0 percent, which is an automatic adjustment for inflation required by previous law. See related article.
Update: January 21, 2008:
The House of Representitives passed the revised pay bill (vote of 369-46) on January 16. The new bill, HR 4986 should be voted on this week by the Senate. This means the revised bill could be sent to the President for signature next week.
As requested by the Administration, the new bill makes the 3.5 percent pay raise retroactive to January 1, meaning the Department of Defense Accounting and Finance Service can make backpayments at any time after the bill is signed into law.
The new bill also provides for a 120-day sanctuary period for enlistment, re-enlistment, or commitment bonuses. Those who enlist, re-enlist, or sign a commitment after December 31, when the services lost permission to make new bonuses payments, would be paid the bonus that would have otherwise been authorized at the time of their commitment. Also, under the new bill, if the person re-enlisted in a combat zone during that period, their bonus would still be tax-free, even if they are no longer serving in a combat zone when the bonus is paid.
Update January 24, 2008:
On January 22, the Senate passed the revised military pay bill, with a vote of 91-3, allowing a 3.5 percent pay raise for troops, backdated to Jan. 1. The new bill has been sent to the President for signature -- expected any day.
Update January 28, 2008:
The President has signed the new version of the bill into law.
