Congress Approves Stop-Loss Pay Extension

Congress is giving Service Members and veterans a little more time — until Dec. 3 — to apply for the extra pay that is owed them if their active service was involuntarily extended between Sept. 11, 2001 and Sept. 30, 2008. The extension is included in the temporary appropriations bill, HR 3081, approved by Congress on Sept. 29. The stop-loss allowance is a $500 payment for every month in which a person was under orders to remain on active duty beyond their separation or retirement date. Retroactive payments covering the period of Sept. 11, 2001, through Sept. 30, 2008, were authorized by Congress last year, with a one-year eligibility period that was set to expire on Oct. 21. But only about 59,000 of the 145,000 people the Department of Defense (DoD) believes are due money have had their payments approved. Click here, to read more: http://www.armytimes.com/news/2010/09/military-stop-loss-deadline-extension-093010w/


Services Stung by Surprise Pop in Retirement Costs

The wartime demands for personnel and record retention rates, due in part to a dismal job market, have left the services with an older, more experienced force -- and a surprise $1-billion-a-year pop in retirement costs. In late July, the Department of Defense's Board of Actuaries overhauled the assumptions used to calculate what the services must annually budget to cover future retirement obligations to the current force. The result is an $800 million jump in accrual retirement costs in which the Army, Navy, Air Force and Marine Corps have to pay starting in 2012 because more Service Members are staying until retirement. Although, a portion of that cost is a projected 40 percent increase in disability retirement, resulting from a crackdown on the low-balling of disability awards by service through stricter compliance using rating practices of the Department of Veterans Affairs (VA). Another $200 million in added yearly retirement costs is attributed to retirees living longer; Death rates are falling -- and sharply. To read Tom Philpott's article in its entirety, please click here: http://www.military.com/features/0,15240,220567,00.html?ESRC=eb.nl


Continuing on Active Duty Program (COAD) or Active Reserve (COAR)

The Army recognizes the skills, strengths and sacrifices that severely wounded, injured and ill Soldiers have contributed to the Army. The Army also recognizes that these Wounded Warriors can continue to contribute their numerous skills and talents to the Army. Soldiers who are severely wounded in action and later found unfit for duty by a Physical Evaluation Board and Medical Evaluation Board may still apply for Continuation on Active Duty (COAD) /Continuation on Active Reserve (COAR) regardless of the extent of their injuries. To be eligible for COAD/COAR, a Soldier must meet at least one of the following requirements: Has served 15-20 years of service for COAD or 15-20 qualifying years of service for non-regular retirement for COAR; is qualified in a critical skill or shortage Military Occupational Specialty (MOS); or has a disability as a result of combat or terrorism. For additional information go to the Army Wounded Warrior Program website: http://www.aw2.army.mil/


TSP Prepares for Launch of Roth Option

The board governing the Thrift Savings Plan is setting aside funds to initiate major changes as it launches a new Roth option as early as January 2012. The Roth option will let participants make taxable contributions to their retirement accounts and then make tax-free withdrawals in retirement. Under the current system, participants make tax-free investments and then pay taxes when they withdraw money. A Roth option is expected to benefit mostly uniformed Service Members and select groups of federal civilian employees, such as federal judges. Most federal employees are likely to have lower incomes and lower taxes in retirement than they do while working and making contributions, and would not benefit from a Roth investment option. To learn more, please go to: http://www.armytimes.com/news/2010/09/tsp-prepares-for-roth-option-092010/