The Commission made 15 formal recommendations. The complete final report can be found here: http://www.mcrmc.gov/index.php/reports. Without going into massive detail or legislative language, below is a synopsis of the majority (but not all) of the recommendations:
Thrift Savings Plan (TSP) participation.
Provides TSP matching contributions for certain members up to 5%, requires annual automatic enrollment in TSP, fully vests contributions at 2 years service, and changes default investment fund to age-appropriate fund. Upon separation, members can roll their TSP contributions into future employer 401(k) plan. Upon military retirement, TSP funds are included in pension determination (assuming not rolled into civilian plan).
Update the retirement system.
Continues present defined benefit plan with 20 year vest for those who elect it. Also provides option (for active duty and reserve component) to receive TSP matching contributions of up to 5%, accept reduced retirement multipliers, and receive lump sum retirement payments—larger lump sum amount with no monthly payments, or smaller lump sum amount with larger monthly payments until Social Security eligible.
Continuation payment.
Proposes continuation payment (think bonus) of 2 ½ % times monthly basic pay to those who have 12 years of service and agree to 4 additional years of service.
Survivor Benefit Plan (SBP).
Proposes receipt of Survivor Benefit Plan coverage that is not offset by Dependency and Indemnity Compensation (DIC) at a higher monthly cost (11.25% vs. current 6.7%).
Duty Status Reform.
Replaces current 30 Reserve Component duty statuses with 6 broader duty statuses—3 title 10 statuses, 2 title 32 statuses, and one title 14 status (USCGR).
Expanded Military Treatment Facility (MTF) care. Allows veterans or civilians to be treated at MTFs to maintain the military’s essential medical capabilities.
Medical cross-training.
Proposes allowing military medical personnel to train in VA facilities or civilian facilities to maintain the military’s essential medical capabilities.
Health insurance.
Proposes establishment of new health insurance program (TRICARE Choice) to replace current three TRICARE programs for health insurance coverage to certain dependents of active duty members, reserve component members, non-Medicare eligible members or former members entitled to retired or retainer pay, dependents of such non-Medicare eligible members or former members, and Medal of Honor recipients and their dependents. The new program would be similar to Federal Employees Health Plans and would also include MTFs in their network. Treatment at MTFs would require a co-pay. Working-age military retirees and families would have to pay five percent of health plan premiums. That cost share would grow by one percentage point a year over 15 years so that retirees under age 65 eventually pay 20 percent of health insurance costs. The costs would stop when eligible for Medicare and TRICARE for Life. TRICARE for Life would remain unchanged. TRICARE Reserve Select replaced by TRICARE Choice with premium reduction from 28% to 25%. TRICARE Young Adult would cease. TRICARE Retired Reserve would fold into TRICARE Choice with retirees paying the full premium. TRICARE dental programs would remain the same. Prescription services remain the same.
Basic Allowance for Health Care (BAHC).
Proposes providing a two-part non-taxable basic allowance for health care to active duty members. One part will be used to defray the 28% employee premium cost share for the new health insurance program or to enroll in spouse’s health insurance program and would be paid directly from DFAS to OPM or the insurance company. The second part will be used to pay co-pays and deductibles and is payable from DFAS to the individual. BAHC is not payable to retirees.
Defense resale system.
Proposes consolidating commissary and exchange systems into one defense resale system and eliminate individual service specific exchanges. It also proposes using appropriated funds for commissary operating expenses and combining the operation and administration into one defense agency, disestablishing DeCA and establishing the Defense Resale Activity (DeRA).
Educational benefits.
Proposes the sunset of Montgomery GI Bill (MGIB) and Reserve Education Assistance Program (REAP) 4 years after enactment of empowering legislation. It also proposes changing transfer of unused Post-9/11 GI Bill benefits to family members after completing 10 years of service and agreeing to serve 2 more years (vice requiring 6 years of service and extending 4 years). Additionally, it proposes service secretaries more selectively permit transferability. It proposes termination of BAH payments for dependents using transferred benefits after 1 July 2017.
Unemployment Insurance.
Proposes prohibiting former service members from receiving unemployment insurance compensation for any period in which the individual receives educational assistance allowance.
Supplemental Nutrition Assistance Program (SNAP).
Proposes canceling the Family Subsistence Supplemental Allowance (FSSA) for stateside military families. FSSA is a cash replacement for food stamps, known as SNAP. Families can receive a larger payout under the SNAP program and they are duplicative. Proposes clarifying only military members serving outside CONUS, Hawaii, Puerto Rico, US Virgin Islands, and Guam may receive FSSA. Members using SNAP are also eligible to use WIC (Women Infants and Children) program.
The Commission’s report was submitted to Congress on Thursday, January 29, 2015. Congress now has the onus to accept each of the recommendations, accept some of the recommendations, or reject the recommendations. These recommendations are NOT included as part of the President’s Fiscal 2016 budget submission (which was submitted to Congress today). With new Republican control of the House of Representatives and Senate, and the influence of Military and Veterans Service Organizations, it’s hard to predict what Congress will do with these recommendations and the Fiscal 2016 DOD budget.
