Many military veterans are unaware that the Office of Veterans Affairs offers a Veterans Identification Card (VIC) for military veterans who are eligible for VA health care benefits. The official purpose of the Veterans Identification Card is to serve as an ID and to check in to appointments for receiving VA health care benefits. However, many veterans have also reported being able to use this card to prove military service. This can be helpful if you do not have a military ID card or your state doesn’t offer a veterans designation on their drivers licenses.

The good news is that all military veterans are potentially eligible to receive one of these VA ID cards. This card is the preferred form of ID when receiving VA health care, and can be a great way to prove your military service or help secure military discounts from companies that offer discounts to veterans. Let’s take a look at the qualifications to receive a VA issued ID Card:

Veterans Identification Card Eligibility

The Veterans Identification Card (VIC) is only available to military veterans who are eligible to receive VA health care benefits. There are many misconceptions regarding VA health care eligibility, and there are thousands of veterans who are unaware they are eligible for VA medical benefits. You don’t need to have a service connected disability to be eligible to receive VA health care benefits. Eligibility is based on active duty service in the Air Force, Army, Coast Guard, Marines, Navy, or Merchant Marines (in WWII), who have an other than dishonorable discharge. Former members of the Reserves or National Guard may be eligible if they were activated under Federal Executive Orders (this generally excludes activation for training purposes).

Other eligibility factors include active duty service dates, deployments you may have served on, or other criteria, such as being discharged for medical reasons, serving in a war zone (Vietnam War veterans and Persian Gulf veterans who served in theater during certain dates are eligible for VA health care benefits), Former POWs, Purple Heart recipients, and veterans who meet certain household income requirements may be eligible for VA medical care benefits. Here is more information for determining VA health care eligibility.  You can also contact the VA to determine health care eligibility or use this eligibility questionnaire.

Apply for VA Health Care Benefits First

You must be enrolled in the VA health care system in order to receive a VIC. To do this, you must establish eligibility and fill out Form 10-10EZ or Form 10-10EZR (these are also the same forms used to update your personal information). You can fill out this form online, by phone (Call 1-877-222-8387, Mon-Fri, 8:00 am – 8:00 pm EST), by mail, or in person at any VA clinic or medical facility. Here is the VA Directory to find a location near you.

How to Apply for a VA ID Card

After you have enrolled in the VA health care system, you can visit your local VA clinic or medical facility to obtain an ID card. You will need to have your photo taken. The card will then be mailed to you within 7-10 business days. Be sure to verify all the information is correct on the VA ID Card when you receive it.

What you need to know about the VIC Card: The Veterans Identification Card only contains your name and any special benefits designations, such as a mark for a service-connected disability, POW status, or Purple Heart recipient. The cards no longer contain printed Social Security Numbers, date of birth, or other confidential personal information on the front of the card. However, the cards do contain a bar code that could be read by certain cell phone applications. These bar codes contain your name, DOB, SSN, and other personal information, so be sure to safeguard your ID card to reduce the risk identity theft if your card is lost or stolen.

If your Veterans Identification Card is lost or stolen, you should contact the medical facility that issued your card. Photos are maintained on file, so you won’t need to have another photo taken. You will have to verify your personal information to prove your ID.

The VA ID Card is not an insurance card. The only authorized use of the Veterans Identification Card is for verifying ID at VA facilities. It is not an insurance card and cannot be used to pay for medical care at non-VA medical facilities. Though not an official use, many veterans use these cards to prove military service.

Photo source: image 1, VA, image 2, WikiMedia Commons

Many military veterans aren’t aware they are eligible for VA health care benefits. The common misconception is that veterans can only use VA medical care facilities if they have a service-connected disability rating. Veterans with a service-connected disability rating can use VA medical centers, but health care benefits aren’t only limited to those individuals. Let’s dispel some of the myths about VA health care eligibility, and see who is eligible, and learn how you can apply for VA health care benefits.

Two things to remember:  (1) This is only general information. Each case is unique, and final benefits decisions rest with the VA. (2) VA health care eligibility only means you can visit VA medical centers and clinics for health care. It does not necessarily mean all health care is 100% free (some medical care may be free, and cost is dependent upon many factors). There may be limitations on the type of health care you may be eligible for, and some medical care may require a co-pay or other associated cost, depending on the nature of your coverage and the medical care your receive.

How to Establish Eligibility for VA Medical Benefits

VA health care eligibility is based upon active duty military service in the Air Force, Army, Marines, Navy, Coast Guard, or Merchant Marines (during WWII). Members of the National Guard and Reserves may be eligible for VA health care benefits if they were called to active duty on a Federal Executive Order (this generally excludes active duty for training purposes). Other groups of servicemembers may also be eligible for VA medical care.

Misconceptions about VA health care eligibility: It is not a requirement to have served in combat or in a war zone. You do not need a service-connected disability rating. You did not need to be injured or wounded while in the service.

VA health care eligibility factors: VA health care eligibility is based on many issues, including active duty military service, type of military discharge, service-connected disabilities, medical conditions incurred while in the service, location of service, and more. You can be eligible based on your service dates, deployments you served on, or other criteria.

VA Health Care Eligibility Questionnaire

Let’s start by looking at some basic eligibility requirements, based on the VA health care eligibility questionnaire:

1. Are any of these statements true?

• You served in the active military, naval, or air service and were honorably discharged or released
• You were/are a Reservist or National Guard member and you were called to active duty by a Federal Order (for other than training purposes) and you completed the full call-up period

Veterans have the option of selecting yes or no.

If you answer yes, you will be taken to the following question: Are any of these statements true?

• You were discharged or separated for medical reasons, early out, or hardship
• You served in theater of combat operations within the past 5 years
• You were discharged from the military because of a disability (not preexisting)
• You are a former Prisoner of War
• You received a Purple Heart Medal
• You receive VA pension or disability benefits
• You receive state Medicaid benefits
• Served in the Republic of Vietnam from January 9, 1962 to May 7, 1975
• Served in the Persian Gulf from August 2, 1990 to November 11, 1998

If you answer Yes to the second question, you most likely qualify for VA health care. You can skip to the section below, labeled “Applying for VA Health Care Benefits.”

If you answer No to either of the two questions above, you may still be eligible for VA medical benefits based on criteria such as your military service or household income. You will need to submit an application for VA health care benefits to learn more based on your specific information.

Applying for VA Health Care Benefits

Once you have established your eligibility for VA health care benefits, you will need to fill out Form 10-10EZ or Form 10-10EZR to apply for benefits. These forms are also used to update your current information if anything has changed. There are several ways you can fill out or update the 10-10EZ: online, by phone, by mail, or in-person at a VA medical facility. Here is the info you need:

• Online: Visit this link and fill out the form.
• Phone: Call 1-877-222-VETS (8387), Mon-Fri, 8:00 am – 8:00 pm EST. A VA rep will send you a completed form via mail. You will need to verify and sign the form, then return it to the VA.
• Mail: Complete Form 10-10EZ or Form 10-10EZR and mail it to Health Eligibility Center, 2957 Clairmont Road, Suite 200, Atlanta, GA 30329-1647.
• In person: Visit any VA Medical Center or clinic. Here is the VA Directory.

Required Supporting Documentation

You can reduce the application processing time by providing information about your service when you apply. This includes documentation such as your DD-Form 214 or other military discharge paperwork, service records that indicate you were a POW or received a Purple Heart, or records that show you received hostile fire or imminent danger pay or a combat medal.

VA Health Care Enrollment

Applying with for 10-10EZ and providing all relevant information will generally enroll you into the VA medical care system. Most veterans will automatically remain enrolled in the system from year to year. However, some veterans will need to establish eligibility each year to maintain their enrollment priority. This is generally the case for veterans who qualify for VA medical care based on their income or other information that can change from year to year. Other veterans may be eligible based on returning from a combat zone within the last five years. Enrollment priority may change based on the date they returned from the combat zone.The VA will contact you when they need additional information to maintain your enrollment priority.

VA Identification Card

Sample VA ID Card

Veterans who are eligible for VA health care are also eligible to receive a Veterans Identification Card which is used to access VA medical care. These cards have a designation on them indicating a service-connected disability, Purple Heart, or former POW status if applicable. The only official use of the card is to receive medical care at VA Medical Facilities, but many veterans also like to show this card as proof of military service if they no longer have a military ID or do not have a state issued ID card with a veterans designation. This card is only available to veterans who are eligible for VA medical care.

Eligible veterans can apply for a VA ID Card at any VA medical facility. They must fill out the 10-10EZ and have their picture taken. The VA then verifies eligibility and sends out the card within 7-10 business days.

Photo source: WikiMedia Commons

The 2013 military budgets have been proposed, but as of yet, have not been finalized. We have included the following military pay charts as a reference for what we expect the 2013 military pay scale to be. These pay charts are based on the 2012 military pay rates, with the addition of an accross-the-board raise of 1.7%. These are the numbers that were included in the most recent DoD budgets, and will likely to the final numbers. Once approved, the 2013 pay charts will take effect on January 1, 2013.

Notes: To make these tables more legible, we rounded each payment to the nearest dollar. Please keep in mind these pay scales are for reference only and are not official until approved by the government and signed into law. We have included additional explanations where applicable. These charts only include base pay, and do not include BAS, BAH, special duty pay, or other forms of military compensation.

2013 Military Pay Chart – Officers

Here are the pay charts for officers with less than two years of service, up to 18 years of service. Officers with more than four years of active duty enlisted service may qualify for Prior Enlisted Officer Pay, which will be covered in the charts below.

Notes: Basic pay for an O-7 to O-10 is limited by Level II of the Executive Schedule. Basic pay for O-6 and below is limited by Level V of the Executive Schedule.

2013 Prior Enlisted Officer Pay Chart

Prior enlisted officers may be eligible for a higher pay rate based on time in service and other criteria. The pay scale offers the following note: *Applicable to O-1 to O-3 with at least four years & one day of active duty or more than 1460 points as a warrant and/or enlisted member. See Department of Defense Financial Management Regulations (DoDFMR) for more detailed explanation on who is eligible for this special basic pay rate.

2013 Warrant Officer Pay Scale

2013 Enlisted Pay Table

Notes: For the Master Chief Petty Officer of the Navy or Coast Guard, Chief Master Sergeant of the AF, Sergeant Major of the Army or Marine Corps or Senior Enlisted Advisor of the JCS, basic pay is $7,489.80. Basic pay rate for Academy Cadets/Midshipmen and ROTC members/applicants is $974.40.

When President Obama signed the The Honoring America’s Veterans and Caring for Camp Lejeune Families Act (H.R. 1627) into law in August, the bill included a host of upgrades to VA Loan benefits. The VA Home Loan Guaranty Program offers military veterans the ability to buy a home with no money down and get a guaranteed loan at an attractive interest rate, provided the veterans qualify for the loan. The recent improvements to the VA Loan program offer veterans more flexibility with how they use this benefit. Let’s take a look at these new rules.

Increased Eligibility for Military Widows and Dependents

Previous to H.R. 1627, surviving spouses were only eligible for VA Loan benefits for a short time period. HR. 1627 extends benefits to surviving spouses of veterans, veterans with a service-connected disability, and POWs for up to 10 years after the death of the servicemember (disability thresholds apply).

The intent of VA Loans is to serve as a primary residence. This becomes difficult for certain service members, including dual military couples and single parents. The new law allows a dependent to occupy the home to satisfy owner occupancy requirements, provided certain criteria are met.

Increased VA Loan Limits – up to $1 Million

Until recently, the largest loan the VA would guarantee was up to $625,000. That is a lot of money for a house, but it doesn’t reflect the current home prices in some expensive housing markets, such as those found on the coasts, or in some other high-cost locations. The law was changed to increase VA backed mortgages for up to $1 million in high-cost housing markets. Of course, the member would still need to be able to qualify for the mortgage based on their income and other factors. This increase in limits is currently set to last through 2014 unless extended.

Increased Eligibility for VA Loan Funding Fee Waivers

The VA charges a funding fee when they fund a new loan. How much the military member or veteran pays depends upon several factors, including how many times they have used the VA Loan, and whether or not they have a service-connected disability. The funding fee is currently waived if the veteran has a VA disability rating. H.R. 1627 will waive funding fees for certain disabled servicemembers who are transitioning to a veteran status. The funding fee waiver will also apply to some and surviving spouses. Current servicemembers and surviving spouses must receive appropriate paperwork from the VA to have the funding fee waived, or apply for a funding fee reimbursement after they have closed on their home.

VA Loans to Continue to Accept ARMs and Hybrid Loans

Before H.R. 1627 was passed, the end of 2012 was set to bring an end to Adjustable Rate Mortgages (ARMs) and Hybrid loans as an option for VA Loan funding. The new act extends the availability of these funding options. These funding options are now a permanent part of the VA Loan legislation.

Other Changes in H.R. 1627

The Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 did more than make some improvements to VA Loans. Some other benefits include:

Title 1: Healthcare. Healthcare benefits for Camp Lejeune Veterans and Families (see report), improvements to health care for rural veterans, the creation of a plan to enter service contracts in all 50 states to improve health care for elderly veterans, improved access to VA health care facilities, and plans to improve care for traumatic brain injuries and for the prevention of sexual assault.

Title 2: Housing. This section covers the above changes for the VA Loans, and adaptive housing loans and grants for wounded warriors.

Title 3: Homeless Veterans. Improved care and housing for America’s homeless veterans.

Title 4: Education Benefits. Increased accountability for the VA and DoD in regard to veterans’ education benefits, and enhanced educational benefits to surviving dependents.

Title 5: Benefits. Improvements to service-connected VA disability benefits, and streamlining the disability claims process to reduce backlogs and approve claims more quickly.

Title 6: Memorial, Burial, and Cemeteries. Creates restrictions for protesting military funerals, awards Presidential Memorial Certificates to honor military members who die while on active-duty, and removes the ability to place reservations for more than one gravesite at Arlington National Cemetery, and will not honor reservations until time of death, except under extraordinary circumstances. The changes at Arlington National Cemetery are due to limited space; estimates are that Arlington National Cemetery will be full by 2050.

Title 7: Other. This section includes changes to law covering VA benefits availability during natural disasters, oversight and transparency regarding VA operations, the establishment of a “VetStar” program to recognize companies that have made significant contributions to veteran employment, and an extension of the Servicemembers’ Civil Relief Act to prohibit banks from foreclosing on military servicemembers until 12 months after they leave military service.

You can read more information about the bill here, and here.

A few months ago, the Supreme Court shot down the Stolen Valor Act as unconstitutional on the grounds that it violated the First Amendment right to free speech. The rejection of the Stolen Valor Act was a blow to many who believe military awards should never be taken lightly, and should never be used for personal or monetary gain. Unfortunately, many people have done just that – claiming military experience or decorations they had never earned.

The good news is the House of Representatives worked quickly to draft and pass a new version of the law. Within three months of the Supreme Court overturning the Stolen Valor Act, the House drafted and passed a new version of the law designed to work within the ruling of the Supreme Court.

In this new iteration, the House recognizes the importance of the First Amendment and modified the law to make it illegal to claim military awards or decorations for the purpose of claiming payment or other veterans benefits. It would still be legal to make a verbal claim of military service or awards, but it would be illegal to do so for personal or monetary gain. Let’s take a look at the history of the Stolen Valor Act and the details of what it covers.

What is Stolen Valor?

The Stolen Valor Act of 2005 was passed by President Bush, and it made it a federal misdemeanor to make false claims about having been awarded a US military medal or decoration. In addition to making it illegal to make false claims of having been awarded decorations, the law made it illegal for unauthorized persons to wear, buy, sell, barter, trade, or manufacture “any decoration or medal authorized by Congress for the armed forces of the United States, or any of the service medals or badges awarded to the members of such forces.” Source.

The law called for up to 6 months in jail for most false claims, and up to one year in jail for claiming to have been awarded the Medal of Honor. There were dozens of jail cases within the first year of the law being passed. One of these cases eventually escalated to the recent Supreme Court case, United States v. Alvarez, which led to a portion of the law being overturned on the grounds of freedom of speech. While it is no longer illegal to claim awards that haven’t been earned, it is still a federal crime to wear medals and decorations which one hasn’t earned, or to manufacture or sell medals without federal authorization.

The New Stolen Valor Act Bridges the Gap

The new version recently passed by the House of Representatives is a good step to protecting the integrity of the military awards system. Our nation was founded on the principal of free speech, and as military members and veterans, we have to respect that right we have worked so hard to defend, regardless of whether we agree with the message being given. And I assure you that I am not alone in saying that the majority of military veterans believe making false claims about military service is reprehensible. It cheapens the memory of those who gave all.

As a veteran, I understand why the Supreme Court ruled in the manner they did. I don’t like it, but I respect the ruling. And as a veteran, I applaud the recent act passed by the House. Here’s hoping this is approved by Congress and the President and soon finds its way into public law.

On August 6, 2012, President Obama signed Janey Ensminger Act into law, which recognizes that Camp Lejeune water contamination may be responsible for health problems for military veterans and their family members. This law will help provide medical care to some of those affected by the toxic water. Let’s take a look at the Act, who and what it covers, and where to learn more about your eligibility for health care coverage.

Health Care Eligibility for Camp Lejeune Water Problems

Studies have shown that the Camp Lejeune water had high levels of toxins, including industrial solvents, trichloroethylene, vinyl chloride, benzene, and other chemicals, during the time period between Jan. 1, 1957 and Dec. 31, 1987. You may be eligible for VA health care benefits if you served on active duty, or lived on Camp Lejeune for at least 30 days during this time frame. This also covers babies who were in utero of their mother lived on the base during this time frame.

There are 15 medical conditions which are currently covered under this act. They include: leukemia, non-Hodgkin’s lymphoma, multiple myeloma, myleodysplasic syndromes, renal toxicity, hepatic steatosis, female infertility, miscarriage, scleroderma, neurobehavioral effects, or cancer of the lung, breast, bladder, kidney, or esophagus.

How to Receive Health Care

Health care benefits are provided by the VA health care system, not TRICARE. If you are a veteran who is already enrolled in the VA health care system, you will need to contact your local VA health care facility to receive care. If you are not currently enrolled, you may do so online. If you are not a veteran, you may need to contact the contact the Enrollment Coordinator at your nearest VA health care facility.

Must exhaust all other health care options first. Veterans are covered under the VA Health care system. However, family members of veterans must prove they have exhausted all other health care options before putting in a claim with the VA Health care system. This includes the use of employer sponsored or individual health insurance.

When you can receive health care. The act was only recently signed into law, and it did not set a deadline for the VA to begin providing health care to Camp Lejeune water contamination victims. It may be several months before the regulations are written and go into effect.

This is Not Disability Compensation

Even though the health care is provided by the VA health care system, this is not automatically considered a service-connected disability. Service connected disability claims can be made at any time after you leave the service, so if you feel strongly that Camp Lejeune water contamination contributed to an illness or other health problem, then you should contact your VA representative or a service agency such as the American Legion or VFW about filing a new or updated disability claim with the VA. You can also appeal a VA disability claim. Each claim is determined on a case by case basis, so you will need to prove your residency and how it may have affected your health.

Where to Get More Information

The US Marine Corps set up a registration site where you can find more information about the contaminated water at Camp Lejeune. You can find the link here.

Download the law. For more information, you can download and read the law (pdf).

Photo credit: grytr

The long standing assumption is that military members have long been paid less than their civilian counterparts. For a long time, this was true – stories of military members receiving food stamps were common, as were military members and their families living in sub-standard housing because that was all they could afford. But the government has come a long way in recent years to bring pay and benefits up to par with civilian standards. Now, some groups are wondering if they have gone too far, leading some to question whether the government should slow the pay raise cycle, or even put a one year freeze on military pay raises.

Will the Military Reduce or Stop Pay Raises?

Of course, it is way too early to give a definitive answer now, but this is something to track. Military pay and benefits are taking up an increasingly large part of the military budget each year, and the Department of Defense is looking at all possibilities available to reduce costs across the board, and this includes things like ay and benefits, less frequent permanent changes of station, and cutting weapons systems acquisitions. The government has also recently discussed changes to the military retirement system as well as possible changes to Guard and Reserve drill pay.

How Could Military Pay Change?

This article is based upon a study from the Rand Corp, and independent think tank. They were tasked with examining the military pay system and comparing it to various factors such as civilian pay, retention numbers, force strength, future military needs, and other internal and external factors. What they discovered was that the military pay system has grown quickly over the last decade plus (basic pay is up 45 percent since 2000), and many military members are now compensated more than civilians with comparable education and experience (there will of course, always be outliers, depending on which job someone does in the military vs. the civilian world; the study is based upon a total overview of the military, not individual jobs).

Some of the options they proposed include:

• Setting the basic pay increase at half a percentage point below the ECI for one year
• Freezing basic pay for one year
• Instituting a series of below-ECI increases, such as ECI minus half a percentage point for four years.

When Would Changes Take Place?

Secretary of Defense Leon Panetta made recommendations to Congress to ”provide more limited pay raises beginning in 2015.” Keep in mind, this is only a recommendation, and no actual legislation has been introduced. The Department of Defense is in a tough spot, as they have been tasked to help reduce our nation’s deficit by cutting hundreds of billions of dollars from their budgets in the coming years. Reducing pay rate increases would only be a small part of the necessary cuts, along with possible cuts to health care, retirement benefits, National Guard and Reserve Drill Pay, and other benefits.

Will These Pay Raise Reductions Happen?

The study isn’t just running numbers and recommending cuts. They are taking other factors into account. They recognize there could be backlash from the military and civilian communities if these pay raise cuts take place, and they note there could be political aspects to consider (I know I wouldn’t want to be the Congressman who puts a proposal like this together!).

Here are some observations from the report:

Choosing among these options requires balancing two effects of any rollback in pay, whether brief or prolonged. The first is the amount of money saved. The second is the level of concern that might be voiced in Congress, in the military, and in the public at large over what may be perceived as a devaluing of military service or a failure to appreciate the sacrifices of service members during a time of war. Thus, policymakers will need to weigh the advantages and disadvantages of each option before deciding on a course of action.

Here is another link to the report.

What are your thoughts about these potential changes to military pay raises? Fair, or too much?

The military is continually looking at ways to stretch its budget, and one of the largest expenses is personnel – including pay, benefits, and the cost of supporting personnel through deployments, permanent changes of station, training, and facilities. Two of the major areas the military is looking to save money is by overhauling the military retirement system for active duty military, and by overhauling Guard and Reserves drill pay.

Military pay and benefits represent a huge portion of the defense budget each year. This figures to continue over the coming decades are the cost of paying for retirees continues to increase at a rapid rate.  The major concerns center around the cost of retiree and dependent health care which continue to increase, along with the increases in retiree pensions through the Cost of Living Adjustments (COLA).

As we mentioned, the military is looking at changing the active duty retirement system, but they are also taking a strong look at changing the National Guard and Military Reserve pay and retirement system, starting with the possibility of slashing drill pay and retirement points across the board – but it’s not all doom and gloom. In fact, there could be some benefits to a reduction in how drill and retirement points are calculated.

Will the Military Overhaul Guard and Reserve Drill Pay?

Congress has commissioned a study, the 11th Quadrennial Review of Military Compensation (QRMC), to look at ways to reduce long term expenses, and one of the aspects they are studying is Reserve and National Guard pay and benefits. One of the recommendations is reducing the number of drill pay days and annual retirement points awarded to Guard/Reserve members, in exchange for starting retirement pay earlier than age 60, as current law dictates. From the report:

The QRMC recommended modernizing the reserve compensation system by transitioning the reserve components to a total force pay structure under which a member receives full pay and allowances for each day of duty regardless of the type or purpose of duty.  Further, the QRMC recommended transitioning the reserve components to a retirement system that is more closely aligned with the active duty system with guard and reserve members receiving retired pay upon reaching their 30th anniversary of military service, having completed 20 qualifying years.

Let’s break this down: Basically, the QRMC wants to simplify how Guard and Reserve members are compensated, including how they earn drill pay and retirement points.

Current law compensates members of the Reserve Component (Guard and Reserve members) for 4 days salary and 4 Drill Points per drill weekend (2 working days). In addition, Reserve Component members can earn 14 points for the two weeks they serve per year, and 15 participation points per year. In most cases, Guard and Reserve members earn around 75 retirement points per good year of participation, not counting any additional active duty time they may incur.

The proposal would limit members of the Reserve Components to a total of 53 retirement points per year – one point for each weekend drill day, 14 points for the two weeks of summer training, and 15 annual participation points. Instead of paying members of the Reserve Component for 4 days of service per weekend drill, Guard and Reserve members would receive the same pay and benefits as active duty personnel, regardless of their status. This would simplify the pay system, but have the net effect of reducing the number of retirement points Guard and Reserve members could earn in any given year.

In exchange, the board proposes to allow retirees from the Reserve Component to begin receiving retirement pay 30 years from the date they began military service, or age 60, whichever comes first. In this example, and enlisted person who joined at age 18 out of high school could begin receiving retirement pay at age 48 (30 years after joining the service), provided they have completed their 20 years of service.

Thoughts on this Proposal

Members of the Guard and Reserve have a complicated pay system that rewards them more for drill weekends than working on active duty status. Additionally, members who are activated for less than 30 days earn less than their active duty counterparts, while members who are activated for 31 days or longer are compensated at the same rate as their active duty counterparts. There are several other factors affecting Guard and Reserve pay which can complicate matters (including the purpose of activation, duration of activation, etc.).

The purpose of this proposal is to simplify Reserve Component pay, eliminating much of the confusion, and putting Guard and Reserve members on equal footing with their active duty counterparts. In exchange for being awarded fewer retirement points per year, members of the Reserves and National Guard would be able to receive their retirement benefits much earlier than the current standards allow – 30 years from the date they entered military service, or age 60, whichever comes first.

Guard and Reserve members have long wanted retirement pay and benefits to start before age 60, though not at the expense of cutting drill pay and retirement points. But in the long run, this proposal is not a huge detriment to total compensation, depending on the situation of the service member. (see page 154 of the report for some examples).

Who will this affect? Keep in mind this is just a proposal, and not law. If enacted, there are two options – one which would grandfather all Guard and Reserve members into the old system, and an option that would grandfather those with 18 years of service or more, and move everyone else into the new system. Those who are grandfathered into the old system would continue earning their points and pay as they previously have.

My thoughts. I read through chapters 6-8 of the report (the sections which pertain to the Guard and Reserves), and overall, this appears to be a positive proposal for many Guard and Reserve members. Each situation will be unique, of course, and those who have been in the Guard or Reserves with a lot of service time may be better off under the old system. But others would do better under the proposed changes. Though members would end up earning fewer retirement points and lower pay while they are serving, many members serving in the Reserve Component would be able to retire much sooner than they otherwise would, giving them many additional years of retirement pay and benefits.

Though I didn’t specifically read this in the report, it appears as though the retirement that starts at 30 years after entering the service would be full retirement with the pension based on retirement points, grade, and time in service, and with health care. (someone please chime in with a comment if health care is not included until age 60). If the earlier retirement option includes health care starting at 30 years from entering the service, then this is a great deal for many prior service members and others who would be able to begin receiving TRICARE at a much earlier age. For many Guard and Reserve members, TRICARE is more valuable in the long run than the actual pension they receive, and starting this earlier would be a huge benefit.

The full report is 290 pages long, and can be found here (pdf).

What are your thoughts on these proposed changes?