News Release 12/12/13

MOAA Warns Budget Deal Penalizes Current and Future

Military Officers Association of America (MOAA) said the one percent annual reduction to uniformed service retired pay Cost of Living Adjustment (COLA) could have disastrous unintended consequences.  For those who retire at the 20 year point in their career, it will result in reducing retired pay by nearly 20 percent between the age at retirement and 62. 

“A 20 percent reduction in retired pay and survivor benefit values is a very substantial cut in military career benefits and does not represent good faith to our men and women in uniform,” MOAA President Vice Adm Norb Ryan said.  “About one percent of the nation’s population is currently serving, but they bear 100 percent of the responsibility for our national security requirements. Retirement benefits have been earned through 20 or more years of arduous military service and sacrifice.”

Furthermore, Congress mandated the Military Retirement and Modernization Commission (MCRMC) in the FY 2013 National Defense Authorization Act and wisely removed the “BRAC-like”, fast-tracking rule so appropriate committees would appropriately study recommendations that could significantly impact retention and readiness.  The MCRMC recommendations are supposed to honor commitments made to military personnel by their leadership and have not yet been provided. 

“This proposal actually eliminates the appropriate assessment process and does not take long-term readiness and retention outcomes into account,” Ryan said.  “A deadline will have been met, but at a terrible price for our existing force and retirees.

“Currently serving members look at how they, their families, retirees, and survivors have been treated when making career choices.  If Congress arbitrarily cuts the retirement benefit for those who have served their country for over 20 years, there could be an unintended impact on uniformed service career retention, and ultimately, national security,” Ryan stated.
Take action! Reject Military Retirement COLA Cuts.