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H.R. 2302, The Military Retired Pay Fairness Act of 2009 (33 comments ↓ | 3 wiki edits)
H.R. 2302 would amend title 10, United States Code, to limit recoupments of separation pay, special separation benefits, and voluntary separation incentive from members of the Armed Forces subsequently receiving retired or retainer pay.
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Visitor Comments
Rick
(logged in user) May 13, 2009, 7:32am (report abuse)I can give you 1,786 reasons every month why this bill is more equitable to Armed Forces retirees. Thank you to all the people that have made this law possible.
Andy
May 26, 2009, 10:01am (report abuse)Rick, I can relate, but I have 4000 reasons, every month. I've been paying back since last November, and have already repaid the gross amount for 2 years of VSI.
Ken in New Mexico
May 27, 2009, 12:44pm (report abuse)My brother got 1 weeks notice that his military retired pay would be recouped at about 80% of his pay. God Bless the people who researched and submitted HR 2302. My brother like many others served in combat during Viet Nam and Desert Storm, always answered the call to duty, and then was stabbed in the back by the very country he faithfully served for over 35 years. Our faith in the "system" has been renewed by the Democractic Party (I am formerly a 30 year mbr of the Republican Party). I thank each of you veterans for your service and ask that you keep the faith!
L in San Antonio
June 9, 2009, 8:47am (report abuse)This is an outstanding resolution. I have been trying to find answers on this for 9 years in preparing to retire. Confusion has reigned supreme. Thank you for all sponsors of this bill. Please do no let it die. One other thing. There are serious tax questions that would be great if addressed in this legislation. But don't let it kill the bill. We all have already payed taxes on the Gross amount. So how about payback the Net. Thanks for listening.
Indiana Joe
June 10, 2009, 9:45am (report abuse)I almost wept when I saw that this bill was introduced. Every month I lose about 75% of my retirement to recoupment. This does not affect a lot of people and I'm glad to see our representatives looking out for the little guys.
John b.d. holmes
June 11, 2009, 7:44pm (report abuse)Your right its time to help the little guy who busted their rear end off for this country. They helped the banks who robbed this country. Now its time to the little guy.
Angela D. Palmer
June 15, 2009, 4:03pm (report abuse)I separated from the USAF in 1994, I was suppose to receive $71-thousand,but I only got $50-thousand after taxes. I am 100% disabled thru Social Security, and 20% thru the military. When the military awarded me the 20%, I was told that I would not receive any money for my 20% thru the military, because I have to pay the whole $71-thousand back. This is causing a hardship on me because I bearly have enough to live on, and I could really use the $230 that the military is taking away to pay for the $50-thousand that I got back in 1994, and I don't understand why I have to pay $71-thousand back, when I only got $50-thousand, please, please can someone help me I am truly struggling, a sincere dedicated USAF Veteran for 18yrs, 9 mos.
S JACKSONVILLE
June 18, 2009, 7:06pm (report abuse)Concur with L of San Antonio. The taxes already paid need to be considered. Also, look at 5 USC 5514. That sets a standard of 15% of disposable pay when ...a member of the Armed Forces or Reserve of the Armed Forces in indebted to the US for debts to which the US is entitled to be repaid.... Pentagon/DFAS argues this situation is not a "debt" to be dealt with under this law. I have requested my House Representative to speak with the legislative staff on this.
But even a less than perfect bill would be better then the mess out there now.
L of San Antonio
June 18, 2009, 10:28pm (report abuse)To everyone interested in this bill. Please write your Representatives and Senators and also respond on the Senate side of this blog. S 1008 is going at the same time. This is great news, however, we must all voice our opinions. This is a great opportunity and it obviously has some momentum. Don't let it die.
GQ of Texas
July 2, 2009, 10:20pm (report abuse)Finally, there is some movement towards a fair recoupment of separation pay. You would think that this should be a slam dunk, but great ideas die in commitee all the time. Make you opinions heard, especially to your representatives on the hill.
Indiana Joe
July 14, 2009, 7:32am (report abuse)Concur with S Jacksonville. Sadly, I think we fulfilled our obligation for receiving a separation incentive. I had to maintain a reserve status and continue to meet military standards. I faithfully did this and was eventually recalled and restored to full active duty. After completing my 21 years and earning a pension, DFAS and the Pentagon conveniently determined that my separation incentive was not a "debt," but some other animal that no one ever heard of. When you owe someone money, what else can it be, other than a debt? Keep the faith!
MiG in NoVA
July 23, 2009, 5:32pm (report abuse)My Congressman's office just informed me that he was unsuccessful in striking paragraph (h) from 10 U.S.C. Section
1174 regarding reouping seps pay because a staffer said that would cost the gov $1.5 BBBillion. According to my calculations, if each of us received ~$50,000 seps pay in the 1990s - there are 3 million service members that continued to serve and achieved retirement. What's wrong with my math?
Indiana Joe
July 28, 2009, 8:05am (report abuse)MiG in NoVA,
That is terrible news. How can it be costing that much? We would still have to pay the separation back, just at a less aggressive payback schedule.
jess
July 28, 2009, 8:47pm (report abuse)Indiana Joe
Your correct! This will not cost our Uncle a penny. We are just paying it back at a less aggressive rate. Our Uncle always gets their money back from veterans who served their country. Oh snap! what about the big banks do they have to pay back tarp? Probably not.
Indiana Joe
July 29, 2009, 10:00am (report abuse)Jess,
It will really frost me if this doesn't go through, especially in view of the bailouts given to the banks and auto industry. Will really be a telling story about how much our politicians care for the little guy. I am sure that any cost associated with this bill is mere crumbs when compared to TARP and the other bailouts.
L of San Antonio
August 1, 2009, 9:17am (report abuse)MiG in NoVA,
It sounds like your congressman is talking about the cost associated with forgiving the debt. (This is not what the Act is asking for) That is what the specific section of the code is talking about.
A fairer computation of repayment really has no cost.
Am I missing something?
Indiana Joe
August 6, 2009, 7:29am (report abuse)There has been a step in the right direction. The Supplemental Defense Appropriation bill has been passed. This gives the DoD the ability to set the monthly payback and no longer be bound by the rigid forumula. This measure will hopefully provide some relief while the Military Retired Pay Fairness Act is debated.
James Adams
August 8, 2009, 11:19pm (report abuse)Except for a short break, I have been involved with the military since 1968. I received an involuntary seperation pay in 1990 and retired from the reserves in 2004. When I retiree, I received a certificate of appreciation from president Bush for my service. I believe that my military service since the involentary seperation pay in 1990 more than compensates for any money that I will have to pay back to the government.
Bob
August 9, 2009, 6:35pm (report abuse)Perhaps a fair way to repay would be to be given a time table of recoupment equal to the number of years and months the member served before getting the separation benefit, with the total recoupment being minus the income taxes paid on the initial benefit.
Jess
August 10, 2009, 12:52am (report abuse)INDIANA Joe
I have not seen anything approved at this time. In your comments August 6, 2009 you stated the supplemental defense appropriation bill as passed, and this gives DOD to set rates on VSI payback. Could you post the site whick states this has been passed please. Thanks Jess
Indiana Joe
August 17, 2009, 6:50am (report abuse)I just learned that the Military Retired Pay Fairness Act DID NOT make it into the Defense Authorization Act of 2010. Bad news.
Jess, Google the Defense Supplemental Bill and scroll through the text. I can tell you for sure that the Defense Secretary now has the discretion to set up a recoupment schedule and is not completely bound by a rigid formula.
Indiana Joe
August 17, 2009, 10:06am (report abuse)http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_public_l... />
I pasted the link to the bill. The Secretary of Defense now has the authority to set a repayment schedule that will not cause the member or dependents undue financial hardship. I imagine that DFAS will probably be the reviewing authority, but don't know that for sure.
Jess
August 17, 2009, 5:15pm (report abuse)Indiana Joe
Thanks I did read it, and the way I understand it is Secretary of Defense can set the rate P.L 111-32 Google that Public Law it went into effect 21 May 2009. This is the same day DFAS stop recoupment. God Bless America!
Indiana Joe
August 18, 2009, 8:40am (report abuse)Jess,
Let's hope that SECDEF or DFAS doesn't blindside us with some new and horrible recoupment formula. I feel like I am on shaky financial ground until I know what my monthly retirement will be. The last few months have been great, but I fear that one day I'll open up the mail and find out that some new and terrible recoupment formula has been worked out for me. Let's keep our fingers crossed.
Jess
August 18, 2009, 1:36pm (report abuse)Indiana Joe
I'm in the same boat as you Joe. Have faith! I hope its what was proposed 25% rate recoupment. Although I believe I should pay it all back even though I'm hurting financially, just at a less agressive rate.
Indiana Joe
August 19, 2009, 9:41am (report abuse)Jess,
I can't deny that I knew I would have to pay it back if I ever managed to get my pension. No where in my wildest dreams did I think they would take 75% of my pension away. At the time I got out in 1993, nobody really understood or could explain what the payback formula was--certainly not the guys I checked out with at Personnel.
I did some rough calculations and figured that if I had gotten a reserve retirement instead of the active duty one, they would be taking over 90% of my pension to pay it back. Can you imagine? I have to think that there are going to be some very disheartened reserve retirees when they see their first retired paycheck.
Hopefully, we'll get a fair repayment plan. Let's keep the faith!
MRB
September 9, 2009, 6:10pm (report abuse)You have to be proactive when it comes to your money/retirement. Don't rely on anyone, make them show you in black and white. Volume 7A Military Pay... explains the formula for recoupment. This is a great bill, hope it passes.
EDN
September 21, 2009, 12:10pm (report abuse)Does anyone know when they will make the decision on the new formula for repaying the VSI? I, along with you all, hope for the 25%...
Indiana Joe
September 29, 2009, 6:54am (report abuse)EDN,
This is the scary part. Not sure when the new formula will come out or how they will determine financial hardship. Very hard to do any financial planning with this much uncertainty in the air.
Pete in Midlothian, Virginia
October 31, 2009, 7:00pm (report abuse)My yeoman or personnelmen did explain when I received my separation pay in Feb 97 that if I ever earned a military retirement, I would have the payback, so I have no excuses. In 2000, I went back on active duty as a FTS (or AGR for the Army types) and earned an active duty retirement with a retirement date of 1 Oct 09. I should have set aside $400-$500 per month over the last 9-12 years. Now I have a daughter in college, a son in high school, and two more daughters close behind. I'm praying that they allow me to negotiate the payback, but I will also contact my Congressman through his local office. I am tempted to ask for a "bailout" like the banks but what about HONOR? I will contact DFAS as well. They should have an inside track on this.
JBDH
November 7, 2009, 12:01am (report abuse)Pete
We are Veterans thy shall not want!
Indiana Joe
November 14, 2009, 10:00am (report abuse)Pete,
Keep the pressure on your Congressman and Senator. Before they suspended the recoupment, I was losing nearly 75% of my retirement. Don't let your guard down!
Don Piersall
November 22, 2009, 12:48pm (report abuse)By the time I reach 60 I will have a total of 43 years active duty and active reserve time and still looking to pay back 85% of my retirement pay. We all need to speak out and contact our representatives