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TRANSCRIPT
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?
4
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
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
Military Experience in Congress
0%
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
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
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
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