One longstanding tradition in the military is the benefits Congress has enacted on the behalf of military members and veterans. As any military member can attest, military base pay is nothing to write home about (check out 2009 pay charts). Without the benefits included in the compensation package, most military members would not be able to survive, especially if they have a family.
Congress has passed many benefits packages to help military members live a better life. One such example is the proposed extension of the $8,000 First-Time Homebuyer Credit for military mmbers. The proposal was made to offer military members who spent more than 90 days overseas this year the opportunity to take advantage of the $8,000 First-Time Homebuyer Credit, which they wouldn’t have been able to take advantage of since they were overseas. Sounds fair. But some people disagree.
Disagreeing with special military provisions and benefits
The First-time Home Buyer Credit Extension article for military members was posted on the personal finance blog, Bargaineering.com. It elicited multiple comments, including this reader comment by daemondust, that disagreed with the provision (it can be read in full here).
Yes, actually, I do have a problem with a lot of those programs. What makes military personnel special? They chose the job, they weren’t forced into it. Yes, it’s dangerous, and yes, they have to be away from home for long periods of time, but a lot of other jobs have exactly the same problems but don’t get those benefits.
Don’t misunderstand me, they are doing a service to the country, but I don’t see anything that makes their sacrifice so much more than anyone else’s.
If things were different and they were forced into it, i.e. drafted, then I would be all for compensating them in ways like this. But they weren’t. They chose the job.
Why not extend this benefit to everyone? Even just everyone in the original class? I wasn’t looking for a house when it was first introduced, but financially I’m in a place where I will be soon. Why does it expire for me Nov 30, and these special people have another year? It was their choice to enter a job where they would likely be away for extended periods of time.
Freedom of speech. I love it. As a military veteran I fully support an individual’s right to speak his voice disagree with public policy. And I exercise my right to respond. You see, I believe this is an instance of someone not truly understanding how military benefits work, and why the system is set up the way it is.
In response to the comment
Many military personnel volunteer for military service *because* of those benefits you disagree with. These benefits are considered part of the total compensation package. Again, I will point out the basic military pay chart. The lowest pay grade earns less than $17,000 per year. After 5 years and an average promotion rate, a reasonable salary expectation would be roughly $28,000 per year (E-5 at 5 years). Officers earn more, and require a college degree – lowest rate is just under $32,000 per year and after 5 years it should be around $56,700 (O-3 at 5 years). These numbers represent base pay only. Congress has enacted several different benefots provisions to make life easier on military members, however, these are not included in base pay.
The benefits are kept separate from basic pay for several reasons, but the main reason is that military retirement pay is based off base pay. The lower the government can keep base pay, the lower the retirement pay. Other benefits may change by locale, such as Basic Allowance for Housing BAH), or Cost of Living Adjustment (COLA). COLA is a location pay, which is often found in the civilian world as well. You wouldn’t expect to earn the same amount of money for the same job in Wichita, Kansas as in LA or New York City. Benefits such as BAH, COLA, and other benefits are not included in retirement calculations, and are subject to change.
Additional military benefits
There are dozens of different military benefits, however, not all of them are avilable to all military members or veterans. These are two of the most popular benefits.
GI BIll. The GI Bill actually costs service members $1,200 to join. That money is not refundable if the benefits are not used, including if a military member dies in combat. The majority of eligible participants never use their full GI Bill benefits, even though they paid into them.
VA Loans. VA Loans offer military members a way to buy a home without a down payment and avoid paying PMI. It is also easier for veterans with poor credit to qualify for a VA loan than a conventional loan. However, it is still possible to default or foreclose on a VA Loan. In addition, interest rates for VA loans are often slightly higher than comparable conventional loans because of administration fees that go toward paying for the program.
Is military compensation enough?
Congress has enacted special pay and benefits to entice military personnel to continue serving in jobs that are often more dangerous and often pay substantially less in salary than they could earn in the civilian world (even in government civil service). The benefits that are available make life a little easier for some of the people who put their lives on the line everyday.
Military compensation is a complicated topic, and one that requires study to truly understand how much, and in some cases, how little, some military members earn. And even with study, you can still ask the question, “Do Military Members Get Paid Enough?” The answer is not an easy one to answer, as it is easy to create a scenario to make it appear as though someone is vastly under or over paid. On the whole, I think the program does a good job of giving military members the opportunity to live a comfortable, but not extravagant life. And I don’t think that is too much to ask.
Related information about military benefits:
- More information about the GI Bill and additional college funding for veterans).
- Military Discounts.
- GI Bill information.
- VA loan information.
Related posts:
- Servicemembers Civil Relief Act – Military Members Can Receive Reduced Interest Rates
- Do Military Members Get Paid Enough?
- Military Members Have it Too Good and Whine Too Much
- Military Pay Raises May be Lower in the Next Few Years
- Legislation Proposed to Enhance GI Bill, VA Home Loans, and Small Business Loans for Veterans
{ 11 comments… read them below or add one }
I understand the commenter’s basic premise that there shouldn’t be a bunch of new perks for military personel but I really don’t see what the big deal is about extending the housing credit to people who were deployed overseas and couldn’t use it.
They should be allowed to use this credit like every other American – it’s not an “extra benefit”.
I’m not military, so my judgment is unbiased. Hell yeah they deserve these benefits! Your article only scratched the surface on why military personnel deserve benefits that others aren’t entitled to. Is it fair that many civil servants only work 25 years and retire with a full pension (yes 100% for life). Is it fair that government employees virtually never face the prospect of a layoff, or have to compete to keep their job? Surely, you can list out hundreds of groups of employees throughout the country that enjoy special privileges that haven’t sacrificed nearly to the degree that our armed forces personnel do – both during their service and then for the rest of their life.
Sounds like the commenter’s just pissed because the administration’s giving away the house and anyone that doesn’t feel they “got theirs” is pissed saying, “where’s mine”? Well, too bad. While Obama’s doing his best to “spread that wealth around”, sorry to tell him, but these benefits were around way before Obama’s agenda. And they should stay.
I’m biased, but I like to think that members of the military deserve the benefits they earn.
The real problem for the government is that adding new benefits does not translate into an increased retention or increase in new recruits for the most part. Large programs like the new GI Bill will without a doubt keep people in the military longer, but extending the Home Buyers credit won’t. The US Government needs to focus on the big benefits that have a payoff to the government and stop wasting time with the little ones that no one really cares about.
I don’t think this was used as a retention tool as much as it was intended to give military members who were overseas the opportunity to take advantage of the $8,000 First-time Home Buyers credit to purchase a home. This is something deployed military members probably couldn’t take advantage of because they were overseas and couldn’t dedicate the time it takes to buy a house. Many military members deploy for 12 months or more, so many military members still may not be able to take advantage of this extension, even if they wanted to.
I disagree that military personnel deserves extra benefits. You are completely biased in your explanation of how “low” their pay rate is. After 4 months in the military, an E-1 will be recieving appx. $30,000/yr in annual salary(This figure includes the value of FREE HOUSING, FREE FOOD, & INCOME TAX ADVANTAGES). An E-6 with 4 kids and 10 yrs. experience will make appx. $55,000/yr. This is WITH NO COLLEGE DEGREE! Comparitively, a person in the civilian life earning minimum wage will earn only $1,160 per mo. ($14,000/yr) ONLY!
You also fail to mention nearly all of the types of extra military allowances and pay. (Currently, the military has over 70 separate types of pay and allowances).
MILITARY.COM states “military retirement pay is “arguably the best deal around” for active duty retirees. This amt. increases each year.
Some benefits/xtra pay/bonuses, etc. that many military personnel get that you fail to mention, that must be factored into consideration:
1. GI bill $37,000 (avg. debt of college grad civilians is $20,000!)
2. Basic housing allowance (in San Diego, military personnel with depenants get $1893-$2847/month!!)
3. Basic allowance for subsistence (food allowance)$223-$323/month
4. Homeowner benefits
5. Dislocation allowance if relocating
6. Cost of living allowance $100-hundreds/mo. (dep.on locat.)
7. Combat compensation (if in active combat)
8. Hazardous duty pay ($150/mo) for hazardous duties ofc.
9. Per diem & Travel pay
10. Clothing allowance ($1,400 initial allowance f/ enlisted, and $350/yr. average thereafter)…I wish I got paid for buying my expensive work clothes and items!
11. Extremely generous retirement benefits! There is NO “vesting” percentages like civilians are required to follow. -Lucky military personnel! It is complicated how retirement is calculated, but a general estimation is appx. 55% of basepay after 20-30 years. (some military retire at 37!)…must be nice! A lot better than waiting till 65 and getting social security’s whopping $700/mo. I am projected to make at 67! (If I even live that long!)
12. Death Gratuity = $100,000 paid to the military’s survivors (spouse, etc.)
13. Dependency compensation (payable to survivors of deceased veterans) $1,154/mo -add $286/mo for EACH child under 18 years…pretty darn good death benefits!
14. Combat special compensation (for those who qualify)
15. Special pay (sea pay, flight pay, aviation career incentive pay, enlisted flyer incentive pay, submarine pay, wounded warrior pay, diving duty pay, ETC.) for those who perform certain jobs.
16. concurrent retirement & Disability pay (f/ those discharged with disabilities related to military work)
* FREE or Govmt. Subsidized Medical and Dental f/ active duty, retired, and dependents. Free Eyecare coverage for active duty, subsidized for dependents.
*Airline Tickets FREE for wounded/sick Military personnel (travel entitlement for military and their dependents)
* Beneficial treatment by federal employers, which entitle veterans to get preferential treatment (xtra points) if they are vets. (easier to get government jobs, harder to get fired, and first to be rehired, last to be laid off).
ETC, ETC, ETC.
So don’t try to pull the wool over people’s eyes whining that military personell get horrible pay and benefits, because that just isn’t so! Especially for active duty who have NO COLLLEGE DEGREE, and LITTLE OR NO EXPERIENCE, they get GREAT PAY and BENEFITS! you have to combine pay with benefits, which many Americans say benefits are as important, and often more important than pay levels.
Actually, you guys have it TOO GOOD! So quit your whining!
tim tom, MPH, DrPH, I have responded to your comment with a full length article regarding military pay and benefits.
Oh and Mr. MPH – when was the last time you strapped on a kevlar jacket and bdus and a weapon, kissed your wife and two kids, one of which you weren’t around for the birth because you were deployed, and went off to your 2nd or 3rd deployment, stood guard or led on-point to protect the rights of others and fought for the right for you to complain about how much we in the military get paid. When was the last time you stood in the doorway and watched your husband or wife or mom or dad go off to war for the 3rd time…. worse yet, when was the last time you saw a military sedan pull up to your house … and watched a Chaplain and a Casualty Notification Officer walked up to the door … and you stood there … not wanting to open the door …. because if you did, your whole world was going to change….
A retired military officer / military spouse
Oh … Mr. MPH .. I forgot… how many times have you packed up your family and moved across the country or to another country.. there are families out there that move once a year… and are proud to wear the uniform…
You have no idea… of what you speak.. and until you have put on a uniform and lived our life… you have no right to complain… It’s a damn shame when you see military soldiers using food stamps.. just to get their kids some milk and cheese… you have no right….
Retired military Officer / military spouse
JN,
He also forgot…
#17 – Family Separation Allowance. That $250 per month (only after you have been gone for 30 days…those 2-3 week field exercises don’t count) makes up for all the missed childhoods, births, school events, sports games, separations, etc. etc. (Can you hear the sarcasm dripping out?)
Interesting side note…do you know that when the 82nd Airborne sent Paratroopers to New Orleans to help the victims of Hurricane Katrina, that over 95% of them were away from their families exactly 29 days. Coincidence? No…
Well in many ways you are correct regarding the pay and benefits afforded to Military Personnel. Life in the DOD from a financial standpoint isnt all that bad. On the other hand, go ahead and sign yourself up, jock up your full kit, make sure you have enough ammo and water and head out across the wire. See how you feel about all of this after you get your shit pushed in by a propane tank full of HME on your way to some little town where you plan to talk to the village elders about how you can help fix their sick kids or build a damn school. Shut your hole.. armchair QB.
to jn you signed up for it so its ur fault u are not with ur family