- What the budget agreement means for defense
Key details of the congressional budget legislation headed to the president that deal with Defense Department spending:
It eases across-the-board “sequester” spending cuts by $63 billion over two years, split between defense and domestic programs. In the current fiscal year, defense would be set at a base budget of $520.5 billion and domestic programs at $491.8 billion.
It reduces retirement benefits for working-age military retirees, including those who retire early because of disability. Starting Dec. 1, 2015, the cost-of-living adjustment for pensions received by people younger than 62 would be modified to equal inflation minus 1 percent.
Upon reaching 62, retirees would receive a “catch-up” increase that would restore their pensions to levels as if the cost-of-living adjustment had been the full consumer price index in all previous years. The change would save $6 billion.
The Associated Press
Posted: Thursday, December 19, 2013 4:30 am
Posted on Dec 19, 2013
Military retirees will see fewer cost-of-living adjustments on their retirement pay thanks to the new budget passed by Congress on Wednesday.
In the agreement, any inflation adjustments for military retiree pensions will be reduced by 1 percent for working-age military retirees, to include medically retired service members. The reduction begins Dec. 1, 2015, and affects retirees younger than 62. For example, if the change went into effect immediately, the 2014 adjustment of 1.5 percent would be reduced to 0.5 percent.
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Rose L. Thayer is the military editor for the Killeen Daily Herald. She joined the paper in February 2011 as a health and military reporter. View her complete profile Here. You can contact Rose L. Thayer at firstname.lastname@example.org or (254) 501-7463. Follow her on Twitter at KDHmilitary.
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Thursday, December 19, 2013 4:30 am.