Military Officer - December 2006 - (Page 36)

washingtonscene Seniority Pays New law increases pay, retirement for some currently serving members. What’s Good for the Goose ■ MOAA has no problem with senior leaders getting proper pay and retirement credit for lengthy service but finds it highly ironic that Congress saw no inconsistency in capping the pay raise at 2.2 percent for junior members bearing the brunt of combat. C ertain senior servicemembers with more than 30 years of service will be happy to be on active duty in 2007, thanks to several provisions in the new FY 2007 Defense Authorization Act that increase pay and retirement credit. The improvements don’t apply to servicemembers who retired before the effective dates indicated below, but members currently serving with more than 30 years of service will get special raises in April and extra retirement credit as of Jan. 1. First, new longevity raise “fogies” will go into effect April 1, 2007, for certain senior ofﬁcers and enlisted servicemembers: ■ 30 years of service: “top 2” NCOs, W-4s, W-5s, and O-6s and above; ■ 34 years of service: E-9s, W-5s, and O-8s and above; and ■ 38 years of service: E-9s, W-5s, and O-9s and above. Second — and much more signiﬁcant for the long term — servicemembers retiring on or after Jan. 1, 2007, who have more than 30 years of service will be awarded retirement credit for that extra service. Under current law, retired pay can’t exceed 75 percent of basic pay (2.5 percent x 30 years of service = 75 percent). As of Jan. 1, each year of extra service will add another 2.5 percent of pay. Therefore, a servicemember who had 10 years of enlisted time and 30 years as an ofﬁcer will qualify for 100 percent of basic pay in retirement. Finally, a small number who retire on or after Oct. 1, 2006 (the most senior general ofﬁcers (O-10s), whose past pay raises have been capped below the overall military pay raise percentage) will have their retired pay calculated on the regular “uncapped” rate shown on the military basic pay table. MOAA has no problem with senior servicemembers being awarded proper pay and retirement credit for their lengthy and valuable service. But we ﬁnd it highly ironic that the same Congress that felt the need to provide such signiﬁcant, positive changes for the most senior personnel also chose to limit the pay raise to only 2.2 percent for junior servicemembers bearing the brunt of combat. Adding More $22 Drugs Two cholesterol medications will cost you more. A panel of beneficiary advisors has concurred with a DoD pharmacy panel’s recommendation to move Crestor and Caduet, which lower bad cholesterol (LDL), to TRICARE’s third tier of medications (which carries a $22 copayment). The change could affect about 44,000 beneﬁciaries. TRICARE will continue to cover 12 other cholesterol-lowering drugs (including the popular Lipitor and Zocor) at the lower $3 (generic) or $9 (brand name) copayment. MOAA’s Cmdr. John Class, USN-Ret., objected to the proposed plan to implement the change within 90 days. MOAA thinks 90 days is not enough time to notify beneﬁciaries and allow them to discuss alternatives with their doctors. DoD provides beneﬁciaries no notice at all of such changes but depends on military associations to spread the word. Associations typically have 60- to 90-day lead times for their magazines, making timely notiﬁcation impossible for most beneﬁciaries, even if they belong to an association. 36 MILITARY OFFICER DECEMBER 2006

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From the Editor From the President Your Views MOAA Directory Rapid Fire Washington Scene Financial Forum Ask the Doctor Chapter Activities Cover Story: How to Fund the Future Martial Lore Good Night, Sleep Tight Mixed Review Information Exchange Advertising Index Member Books MOAA Calendar Sounding Taps MOAA Member Services

Military Officer - December 2006

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