Newsbytes 05-02-08

This week in Newsbytes:
Senate Begins Markup of Defense Authorization
DoD Solicits Comments on Employer-Sponsored Group Health Plans
DFAS Preparing for Paid-up SBP
VA Contacting Combat Vets
New Rules for Political Activity for Service Members
FRA Briefs and Hosts USCG Retiree Council

Senate Begins Markup of Defense Authorization
The mark-up (or finalizing) of the respective House and Senate Defense Authorization bills began this week after months of hearings, meetings and interaction with constituents and others, including FRA-presented testimony before Defense subcommittees and meetings with committee staff. The week included closed subcommittee sessions and full committee mark up on the Senate side, which will be followed by floor debate and associated votes. The Senate Armed Services Committee rejected proposed increases to TRICARE fees and unexpectedly approved a 3.9-percent pay raise for military personnel (which reflects an FRA-endorsed increase of 0.5-percent above ECI).

On the House side, the seven subcommittees are set to mark up their portions of the legislation next week, with full committee mark-up set for the following week. Floor debate and votes will follow in mid-May. The annual Defense Authorization Act addresses many important issues for active, Reserve and retired personnel including pay, health care benefits and quality-of-life programs, many of which are part of FRA's 2008 legislative agenda.


DoD Solicits Comments on Employer-Sponsored Group Health Plans
The Department of Defense (DoD) has drafted a proposed rule to clarify a provision (Section 707) of the Fiscal Year 2007 National Defense Authorization Act (NDAA) that prohibits employers from offering financial or other incentives to certain TRICARE-eligible employees who opt out of employer sponsored group health insurance. The provision, which was opposed by FRA, was intended to address employers who were enticing retirees to purchase TRICARE for the purpose of shifting health care costs from the employer to DoD, and ultimately the federal taxpayer.

There are two types of common employer benefit programs that are considered legal - cafeteria plans and supplemental insurance plans. A cafeteria plan permits employees to choose between two or more health care benefits that consist of cash and qualified benefits. Supplemental insurance plans are offered by an employer, but sold by an insurer. They are considered non-employer sponsored plans. These plans use insurance such as TRICARE as primary payer and the supplement as the secondary payer. The key to conforming to the new law is for the incentive to be available to all employees.

The Department of Defense is accepting comments until May 27, 2008. To make a comment, go to: http://www.regulations.gov, the Regulatory Information Number (RIN) is 0720-AB17.

DFAS Preparing for Paid-up SBP
The Defense Finance and Accounting Service (DFAS) is reviewing all military retiree accounts affected by the "Paid-Up SBP" law. Under the law that takes effect 1 October 2008, retirees who are at least 70 years old and have paid at least 30 years (360 months) of premiums will no longer pay SBP (Survivor Benefit Plan) premiums. The change will be reflected in November 2008 pay statements. If a retiree does not meet the eligibility criteria on 1 October, the premiums will stop automatically when the retiree has met both criteria - reached age 70 and paid SBP premiums for 360 months. FRA strongly supported the enactment of this legislation.

VA Contacting Combat Vets
VA began contacting 570,000 recent combat veterans beginning on 1 May 2008 to let them know that they will have access to VA health care for five years. FRA appreciates the FY 2008 Defense Authorization provision that expands VA health care coverage from two to five years after a combat veteran leaves the service. The department will screen combat veterans for signs of post traumatic stress disorder (PTSD) and traumatic brain injury (TBI). The new VA call centers will also contact 550,000 veterans who had been discharged earlier to let them know about VA's benefits and services.

New Rules for Political Activity for Service Members
A revised Defense Department directive provides sharper definition about what service members may and may not do within the political realm, particularly running for political office. The new version of Directive 1344.10, titled, "Political Activities by Members of the Armed Forces," replaces the previous version issued in August 2004, and was formulated with input from all the military services.

The upcoming 2008 general elections will feature a number of former military members, retirees and current military Reservists running for elected office, and the revised directive contains two sections that discuss candidacy and campaigning issues.

Active-duty service members are strictly prohibited from campaigning for political office or actively taking part in a political campaign (even behind the scenes), and are required to be apolitical as they go about their business serving the nation. The revised directive also specifies what active duty members may do regarding political activities. Under certain circumstances, some Reserve-component personnel can run for or hold elective political office.

The directive outlines specific rules pertaining to cases of regular, retired and Reservists holding elective or appointed office within the U.S. government, including elected positions with state, territorial, county or municipal governments. Service members with questions about the rules affecting partisan political activities should talk to their commanders for guidance. A copy of the new directive is available at www.dtic.mil/whs/directives/corres/pdf/134410p.pdf.

FRA Briefs and Hosts USCG Retiree Council
Representatives from FRA and MOAA provided a legislative update brief to the National Coast Guard Retiree Council, which met this week. The briefing was presented on behalf of the Military Coalition (TMC) and addressed priority legislative issues including proposed TRICARE fee increases, concurrent receipt improvements, USFSPA reform, and military retiree benefit changes. In addition, FRA hosted the council for a reception at NHQ during which National President Larry Boudreaux thanked council members for their service and presented each with a new FRA Challenge Coin.

The Coast Guard Retiree Council ensures that members of the retired community are kept informed on legislative issues that impact their lives. The panel is co-chaired by former FRA National Chaplain and former MCPOCG Vince Patton (Ret.) and RADM Fred L. Ames, USCG (Ret.).

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FRA is the oldest and largest association representing the interests of current and former Navy, Marine Corps and Coast Guard personnel. If you are not a member and are eligible, please join FRA at www.fra.org/join . The larger the membership base, the louder your voice is heard on Capitol Hill!