The Senate Armed Services Committee marked up its version of the 2016 defense-spending bill, which includes a 1.3-percent pay raise for those in uniform beginning next Jan. 1. The measure calls for $612 billion in funding, and includes provisions that affect key retirement and health-care benefits. It allows the Pentagon to circumvent spending cuts under sequestration, and reshape strength of the total force as well. The Fleet Reserve Association reported that the bill would:
* Alter the current military retirement system. Instead of authorizing retirement pay and benefits for those who serve at least 20 years, the new plan would offer a smaller percentage of retired pay – ranging from 40 percent to 50 percent of basic pay. Other changes affect Thrift Savings Plan participation, and provision of a bonus for service members who opt to stay in four more years once they reach the 12-year point in their career.
* Increase copayments for retirees under age 65, for prescription drugs they receive through pharmacies at military treatment facilities. It also rejects the Obama administration proposal to merge TRICARE entities under one umbrella and increase annual enrollment fees, and an independent panel’s proposal to scrap TRICARE altogether and replace it with coverage through commercial providers.
* Require the Office of the Secretary of Defense to cut funding and personnel by 7.5 percent over the next four years.
