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HomeMy WebLinkAboutDocument (243)A two-tier system for SBP was passed by P.L. 99- 145 effective March 1, 1986. All Military personnel who are retirement eligible after October 1, 1985, are under this two-tier system SBP system. However, current retirees, current retirees, current SBP benefi- ciaries and military personnel who were retirement eligible on or before October 1, 1985 also are affected by the two-tier SBP system. Title VII of P.L. 99-485 in effect establishes only one SBP annuity, and that annuity is computed by utilizing the two-tier system (55% of thee base amou- nt until age 62 and 35% thereafter). However, the original SBP law (P.L. 92-425) enacted on September 21, 1972, established an SBP annuity based solely on 55% percent of the base amount (together with any Social Security offset applicable). Many retirees are enrolled in the SBP law. The basic question is: Will the SBP annuity for these retirees be paid under the provisions of the original SBP law or the two-tier system? For military personnel who were retirement eligible on or before October 1, 1985, and their future survivors, or military personnel retired on or before October 1, 1985, and their future survivors and current beneficiaries, "grandfathering" of their SBP annuity will apply is their survivors or beneficiaries would have been subject to the Social Security offset. Under grandfatbering, surviving or (current benefici- aries will receive the annuitymost financially favorable to them, either under the law as it was before March 1. 1986, or the new two-tier system. The Defense Finance and Accounting Service Center (DFAS) will compute this after the retiree's death. Know Your Medications Keep a list of all medicines you take. Tell your doctor and pharmacist about the medicines you take, including all over-the-counter medicines such as aspirin, ibuprofen and dietary supplements like vitamins and herbals. Tell them about any drug allergies you have. Ask the pharmacist about any side effects and what food or other things to avoid while taking the medicine. When you get your medicine, read the label, including the warnings. and make sure it's what the doctor ordered, and know bow to use it. If the medicine looks different than expected, ask your pharmacist about it. Discuss your choices; talk to your doctor and health care team about your options if you need hospital care. If you have more than one hospital to choose from, ask your doctor which one has the best care and results for your condition. Understand your surgery. Make sure you under- stand what will happen if you need surgery. Ask your doctor and surgeon: * Who will take charge of my care while I'm in the hospital? * Exactly what will you be doing? * How long will it take? * What will happen after the surgery? * How can I expect to feel during recovery? Social Security Beneficiaries Due Make Up Checks Many Social Security Beneficiaries and Supplemen- tal Security Income beneficiaries should have received small make-up checks in mid July. According to the Social Security Administration Officials, SSA was to issue one-time payments to about 45 million Social Security beneficiaries and approximately 6 million Supplemental Security Income beneficiaries. If you have an out of balance in your check book, chances are your refund has been mailed to your bank account; Capitol Flashes "Issue: G.I. Bill Increase Background: House Veterans' Committee Chairman, Christopher Smith (R-N.J.) introduced legislation (H.R. 9291) in March to raise G.I. Bill benefits 70%n in three stages over the next three years. TROA testified in favor of H.R. 9291 in May. Status: Smith worked with House Budget Committee Chairman Jim Nussle (R-Iowa) to earmark funds for the benefit increase. The House unanimously passed the bill June 19, and it has been referred to the Senate. Issue* COLA Update Background: The Consumer Price Index (CPI) rose approximately 2.35% for the first eight months of FY 2001. CPI drives cost-of--living adjustments (COLAs) for federal annuity programs. Status: If inflation continues at this pace, the 2002 COLA for military retirees,. Social Security annuitants and the federal COLA recipients will be in the 3.5% range. Issue* TRICARE For Life (TFL) Documentation of Beneficiaries' Other Health Insurance Background: In late July, DoD was expected to mail Medicare-eligibles a TFL benefits package along with a questionaire requesting their information on their intent to keep or drop any existing Medigap supple- menal insurance coverage. Status: Supplemental insurers should complete and return the questionaire. Not doing so could cause recoupment of duplicate payments to doctors (which would lead to increased reluctance to take TFL patients) or cause TFL claim rejection. Call (888) 363- 5433 for information. Health Care I Legislators Warn Against Forced Choices Testimmony was heard on the Hill by experts on VA and DoD health concerns. Neither witness addressed a proposal in the Administration's FY 2002 budget that would require military retirees to choose between DoD or VA for their health care source. Rep. Vic Vic Snyder (D-ARK), the subcommittee's ranking minority member and a Marine Vietnam veteran emphasized that the VA and DoD must "preserve choice" (i.e.,, access to both both health systems.) for military retirees. TROA believes that improved VA and DoD partnering can yield added benefits but opposes initiatives that would disrupt retirees' right and need to use both systems or combine them into one system. What Are Your Legislators' Positions? Senate Cosponsorship Sen. Gramm (R-TX) - SBP Upgrade Document Receipt Keep Promises Flag Amendment Reserve Tax Credit Absentee Voting Sen. Huchinson (R-TX) -SBP Upgrade Docu- ment Receipt Keep Promises Flag Amend- ment Reserve Tax Credit Absentee Voting House Cosponsorship Rep. Brady (R-Tex) - SBP Upgrade Document Receipt Keep Promises Flag Amendment Former Spouse Home Tax Note* means the legislator has signed on as at least one of the bills indicated. Note 2* means the legislator has not signed on as a cosponsor of any of the bills. Former Spouse legislation would update retired pay division rules to end division upon a former spouse's remarriage and base divisible pay on the members' grade and service upon divorce. A indicates a House cosponsor of OH.R.1983 (Ballenger, R-N.C. Home Tax legislation would omit time reassigned on ilitary orders from counting against the capital gains requirement for two years occupancy in the five years preceding the sale of a home. A indicates a House cosponsor of H.R. 1596 (Houghton, R-N.Y.) or H.R. 356 (Jones, R-N.C.) Survivor Benefit Plan (SBP) Grandfather- ing Clarification Melanie Wiggins, Author and Artist, speaker at July meeting recieives award from CDR Reddish, USN, Rex. A Devoted member relishing the moment when he one the HAROA 50150 drawing.