 |
|
|
|
Congress takes up cause of military spouses
|
By Larry Wheeler
|
Pensacola News Journal, February 5th, 2004
|
WASHINGTON -- For years, military spouses, many of them widows, have received a nasty surprise when they reach the age of 62.
Their military survivor benefits are cut by one-third just as they enter retirement and find themselves in the greatest need of financial help.
Congress and a coalition of military retiree groups say the benefit cut, which has been around since 1972, is wrong and they hope to eliminate it this year.
"We need to step up and deliver what the aging survivors of our 'Greatest Generation' retirees were promised," said Rep. Jeff Miller, a Florida Republican leading the drive to fix the military Survivor Benefit Plan.
"We need to provide the proper level of protection necessary for future generations of retirees."
Throughout the 1970s and 1980s, thousands of active-duty military signed up for the Survivor Benefit Plan. They had been told the simple annuity plan would pay a surviving spouse 55 percent of accrued retirement pay for life.
Instead, surviving spouses collecting annuity payments found that once they turn 62, the payments are reduced to 35 percent of their deceased spouse's retirement pay.
The reduction is known as the Social Security offset and was actually written into the original law and revised in 1985.
Veterans and their advocates say military personnel officials did not make that clear when they signed up.
"We call this a terrible widows tax," said retired Vice Adm. Norbert Ryan Jr., president of the Military Officers Association of America.
Because the majority of military personnel who signed up for the benefit were men, the spousal benefit effects mostly women.
Miller's legislation would restore survivor payments to the 55 percent level.
The bill was rewritten to overcome complaints that similar legislation introduced last year was too expensive.
The new proposal would cost an estimated $2.6 billion as the benefit is increased gradually over the next decade. The original version would have cost an estimated $8.5 billion over five years.
Lawmakers and supporters hope the lower cost will make the bill more likely to succeed.
The legislation would seek to partially offset costs by re- opening the annuity plan to new enrollees for a limited period.
A popular proposal with Republicans and Democrats, Miller's legislation was officially introduced Wednesday with 217 co- sponsors.
Sen. Mary Landrieu, D-La., has introduced a matching bill in the Senate
|
| |
|
|
|
|
|