This week in Newsbytes:
FRA Supports for Hearings on VA Testing Drugs on War Veterans
Concurrent Receipt Update
War Supplemental with MGIB Reform Passes the House
Senate Vote on Defense Authorization Bill Delayed
Some Military Retirees may Receive Retroactive Payment  
Retirees: The IRS Wants You!



FRA Supports Hearings on VA Testing Drugs on War Veterans

News reports this week revealed that the Department of Veterans Affairs (VA) is using veterans to test experimental drugs with the potential of severe side effects. In response, FRA National President wrote to leaders of the House and Senate Veterans Affairs Committees stating that the Association "strongly supports the plan to schedule committee hearings in July to obtain additional information on this controversy, and to assure the public and our Nation's veterans."

Unfortunately, some of the test's participants apparently include veterans who have served in Iraq and Afghanistan and are suffering from Post Traumatic Stress Syndrome.  Copies of the letters are available on www.fra.org on the legislative agenda page under the agenda item: "Monitor Benefits and Programs Administered by the Department of Veterans Affairs."

Concurrent Receipt Update
Payment of Concurrent Retirement and Disability Pay (CRDP) for military retirees rated less than 100-percent Individual Unemployable (IU) was originally scheduled to be phased-in gradually through 2013. However, an FRA-supported amendment in the FY 2008 Defense Authorization bill eliminated the phase-in and made benefits payable on 1 October 2008 and retroactive to January 2005. Defense Finance and Accounting Service (DFAS) has indicated the enhancements will take effect on schedule and will be included in 3 November 2008 retired pay checks.

FRA is currently supporting a pending Senate floor amendment sponsored by Senate Majority Leader Harry Reid (Nev.) that would eliminate the phase-in for all CRDP recipients (see story above). FRA continues its strong advocacy for the immediate payment of concurrent receipt of full military retired pay and veteran's disability compensation for all disabled retirees.  

War Supplemental with MGIB Reform Passes the House
After a long stalemate House Republicans and Democrats worked with White House staff to create a compromise FY 2008 emergency war supplemental funding bill. The measure, which passed the House this week and is expected to pass the Senate next week, now also includes disaster relief for the flooding in the Midwest. The White House indicated that if the funding bill is not passed by the end of July the Department of Defense "will no longer be able to pay the troops - including those serving in Iraq and Afghanistan."  

Significant to the legislation is the authorization of significantly improved education benefits for service members who have served since 11 September 2001, including VEAP-era personnel. The measure includes the following enhancements and is virtually identical to "The Post 9/11 Veterans Educational Assistance Act" (S.22) sponsored by Senators Jim Webb (Va.), and includes an FRA-supported transferability provision from "The Enhancement of Recruitment, Retention, and Readjustment through Education Act" (S. 2938) sponsored by Senator Lindsey Graham (S.C.).

·  Four years of full-time college after serving 36 months or more on active duty;

·  Elimination of the current $1,200 enrollment fee;

·  Payment equivalent to tuition at an in-state university issued directly to the school;

·  Transferability of education benefits (50 percent after 6 years of service and 100 percent after 12 years of service) to spouse and children.

·  A monthly housing allowance of $1,000-$2,700 per month based on BAH rates, and a $1,000 annual stipend for books;

·  Proportional eligibility of benefits for Reservists after 90 days of active duty; and

·  Access provided up to 15 years after service.  


The importance of MGIB reform has been repeatedly referenced in FRA's congressional testimony, NBOD Hill visits, and meetings with congressional staff.

Senate Vote on Defense Authorization Bill Delayed
Senate debate on its FY2009 Defense Authorization bill (S. 3001) is being delayed until after the Independence Day recess. The Senate will consider numerous floor amendments which address accelerating the phase-in of concurrent receipt for Concurrent Retirement and Disability Payments (CRDP) recipients from 31 December 2013 to 30 September 2008; declaring that military personnel already pay for their future health care coverage with in-kind sacrifices, and therefore future fee increases should not exceed the annual percentage increase in military retired pay; eliminating the Survivor Benefit Plan (SBP) offset experienced by those who receive Dependency and Indemnity Compensation (DIC);  reducing the Reserve retirement age (age 60) by three months for each cumulative 90-days ordered to active duty for active duty service after 11 September 2001; and providing "gray area retirees" and their immediate family members the option of maintaining continual health care coverage within the TRICARE system. Additional details on these amendments were included in the 6 June 2008 NewsBytes.

FRA strongly supports these amendments and shipmates are encouraged to use the FRA Action Center on www.fra.org to contact their senators to request their support.

Some Military Retirees may Receive Retroactive Payment      
Service members who retired in January or February of this year may receive a retroactive payment based on the FY 2008 National Defense Authorization Act (NDAA). The legislation was not enacted before 1 January 2008, preventing the Defense Finance and Accounting Service (DFAS) from computing the final active duty pay rates for members retiring in these months. These personnel had their retired pay computed on a 3-percent active duty increase formula rather than the final 3.5 percent level, retroactive to 1 January.

As a result, DFAS will recompute the additional 0.5-percent increase on accounts impacted by this legislation. A Retiree Account Statement detailing the increase will be mailed to the effected retiree's address of record and will also be available for viewing online at www.mypay.gov. No action is required by the retiree to receive the retroactive payment which should be received within 30 days. Payments on or after 1 March 2008 reflect the 3.5 percent increase.

Retirees: The IRS Wants You!
The Internal Revenue Service (IRS) launched a campaign to reach seniors and veterans who qualify for the economic stimulus payment that was signed into law last February. IRS statistics indicate that approximately 5.2 million potential recipients have not filed a claim.

A special stimulus category includes recipients of certain benefits from Social Security and VA who are not normally required to file a tax return. However, these individuals must file a tax return before 15 October 2008 to receive their economic stimulus payments.  Later this summer, the agency will send potential recipients a special letter explaining stimulus payment eligibility and how to claim it. The letter will include a sample tax form and an actual tax form that people can complete and mail to the IRS. This will be the second special mailing to reach of those individuals.

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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!

NewsBytes is FRA's weekly legislative update. If you received this through a forward and would like to subscribe, please e-mail newsbytes@fra.org  with "Subscribe" in the subject line and your name and address in the body.  If you are a member of FRA or LA FRA, please include your member number as well.