Another Year With No Social Security Increase and Another Year of DOD Increases and Military Bonuses for the Perpetual Global War on Terror
Medicare Rise Could Mean No Social Security COLA
March 27, 2011AP - Millions of retired and disabled people in the United States had better brace for another year with no increase in Social Security payments.
The government is projecting a slight cost-of-living adjustment for Social Security benefits next year, the first increase since 2009. But for most beneficiaries, rising Medicare premiums threaten to wipe out any increase in payments, leaving them without a raise for a third straight year.
About 45 million people — one in seven in the country — receive both Medicare and Social Security. By law, beneficiaries have their Medicare Part B premiums, which cover doctor visits, deducted from their Social Security payments each month.
When Medicare premiums rise more than Social Security payments, millions of people living on fixed incomes don't get raises. On the other hand, most don't get pay cuts, either, because a hold-harmless provision prevents higher Part B premiums from reducing Social Security payments for most people.
David Certner of AARP estimates that as many as three-fourths of beneficiaries will have their entire Social Security increase swallowed by rising Medicare premiums next year.
It's a tough development for retirees who lost much of their savings when the stock market collapsed, who lost value in their homes when the housing market crashed and who can't find work because the job market is weak or they are in poor health."You just don't have the words to say how much this impacts a person," said Joyce Trebilcock, a retired legal secretary from Belle, Mo., a small town about 100 miles west of St. Louis.
Like most U.S. retirees, Trebilcock, 65, said Social Security is her primary source of income. She said a back injury about 15 years ago left her unable to work, so she applied for disability benefits. Now, she lives on a $1,262 Social Security payment each month, with more than $500 going to pay the mortgage.
"I've cut back on about everything I can, and I take the rest out of my savings," Trebilcock said. "Thank God I've got that. That's going to run out before long, at the rate I'm going. ... I have no idea what I'm going to do then."
Medicare premiums are absorbing a growing share of Social Security benefits, leaving retired and disabled people with less money for other expenses, according to a report by the Congressional Research Service.
Social Security recipients spend, on average, 9 percent of their benefits on Medicare Part B premiums, plus 3 percent on premiums for the Medicare prescription drug program. By the time someone retires in 2078, he or she will spend nearly one-third of their benefits on premiums for both Medicare programs, the report said. Also, when premiums for the prescription drug program increase, as they do almost every year, they can result in a pay cut for Social Security recipients.
"We could very well be entering a period where we're all stuck with flat benefits because of the growth in health care costs," said Mary Johnson, a policy analyst at The Senior Citizens League.
By law, Social Security cost-of-living adjustments, or COLAs, are determined each year by a government measure of inflation. When consumer prices go up, payments go up. When consumer prices fall, payments stay flat until prices rebound.
There had been a COLA every year from 1975 through 2009, when a spike in energy prices resulted in a 5.8 percent increase, the largest in 27 years. Since then, the recession has depressed consumer prices, resulting in no COLA in 2010 or 2011.
Older people might feel they are falling behind because they haven't had a raise since 2009, but many are benefiting, said Andrew Biggs, a former deputy commissioner of the Social Security Administration who is now a resident scholar at the American Enterprise Institute.
Consumer prices dropped, but Social Security benefits didn't drop, Biggs said [Editor's Note: The Consumer Price Index does not include food and energy prices]. At the same time, health care costs went up, but Part B premiums stayed the same for most beneficiaries.
"They are better off because of that," Biggs said. "Somebody else is paying for a greater share of their health care. This will get me hate mail, obviously. But it is what it is."
Next year, the trustees who oversee the Social Security project a 1.2 percent COLA. President Barack Obama, in his spending proposal for the budget year that begins Oct. 1, projects a COLA of 0.9 percent. The average monthly payment is $1,077, so either way, the typical increase is projected to be between $10 and $13.
The current spike in energy prices could boost next year's COLA, if it lasts through September, when the increase for 2012 will be calculated. The COLA will be announced in mid-October.
Medicare Part B premiums must be set each year to cover 25 percent of program costs. By law, they have been frozen at 2009 levels for about 75 percent of beneficiaries because there has been no increase in Social Security. That means the entire premium hike has been borne by the remaining 25 percent, which includes new enrollees, high-income families and low-income beneficiaries who have their premiums paid by Medicaid, the federal-state health care program for the poor.
The 2009 premium levels, which are still paid by about three-fourths of beneficiaries, are $96.40 a month. Most of those who enrolled in the program in 2010 pay $110.50 a month and most of those who enrolled in 2011 pay $115.40.
The Medicare trustees project a Part B premium of $113.80 a month for next year. Obama's budget projects a monthly premium of $108.20, said Donald McLeod, a spokesman for the Centers for Medicare and Medicaid Services. McLeod cautioned that the projections could change significantly by September, when 2012 premiums are calculated.
Under either projection, a small share of beneficiaries would get lower premiums. The vast majority would get higher premiums that could swallow their Social Security COLA.
"That little raise helps us," said Estelle Jones, 66, of St. Paul, Minn. "Food, heating bills, water bill, all that stuff has gone up. ... All my medicines are very expensive, and every month I have to figure out how I am going to pay for them."
DoD 2011 Budget Increases $18 Billion for a Total of $708 Billion
February 1, 2010DOD Press Release - President Barack Obama today sent to Congress a proposed defense budget of $708 billion for fiscal 2011. The budget request for the Department of Defense (DoD) includes $549 billion in discretionary budget authority to fund base defense programs and $159 billion to support overseas contingency operations (OCO), primarily in Afghanistan and Iraq.
“The fiscal 2011 budget request builds on the reforms begun in last year's defense budget,” said Defense Secretary Robert Gates. “These substantial changes to allocate defense dollars more wisely and reform the department’s processes were broadened and deepened by the analysis and conclusions contained in the Quadrennial Defense Review.”The fiscal 2011 base budget request represents an increase of $18 billion over the $531 billion enacted for fiscal 2010. This is an increase of 3.4 percent, or 1.8 percent real growth after adjusting for inflation. The DoD needs modest real growth to maintain, train, and equip the forces that sustain our wartime efforts.
The fiscal 2011 OCO request will provide additional resources needed to sustain U.S. forces in Operation Enduring Freedom – in Afghanistan and elsewhere – and Operation Iraqi Freedom. Included are funds for pay and benefits, logistics and other support, force protection, continuing efforts to counteract improvised explosive devices, as well as funding to fully support the buildup in Afghanistan and to carry out a responsible drawdown in Iraq.
“The choices made and priorities set in these budget requests and strategic defense reviews reflect America's commitment to succeed in the wars we are in while making the investments necessary to prepare for threats on or beyond the horizon,” said Gates.Also accompanying the 2011 budget proposal is a fiscal 2010 supplemental request of $33 billion to support the added costs of the President's new strategy in Afghanistan and strengthen U.S. force levels with approximately 30,000 additional troops.
“To make sure we have the resources needed to support our troops deploying to the Afghanistan theater, I will be asking the Congress to enact the supplemental by spring 2010,” said Gates.Key highlights of the proposed DoD budget are outlined in the attached summary and charts. For more information and to view the entire fiscal 2011 budget proposal, please visit http://www.budget.mil and download the "FY 2011 Budget Request Overview Book."
Military Pay and Benefits Are at All-time Highs
Even in times of military budget cuts and economic downturn, the military continues to offer a variety of military bonuses, including cash signing bonuses of $15,000, reenlistment bonuses of $15,000, special services bonuses up to $40,000, and education incentives up to $73,000. The Army offers more enlistment incentives than any other branch of the US military services; the bonus or bonus combination cannot exceed $40,000 per active duty service member. In addition to free medical care at military facilities, clothing allowances, discounted groceries at military commissaries, and discounts at other military exchanges, uniformed service members are provided a 'basic allowance for housing (BAH)' based on geographic duty location, pay grade, and dependency status. The intent of BAH is to provide uniformed service members 'accurate and equitable housing compensation based on housing costs in local civilian housing markets, and is payable when government quarters are not provided.' According to the DoD, BAH rates now make it possible for service members to have zero out-of-pocket expense -- for service members living in civilian rented housing.
September 23, 2010
Comments from Michael J. Smith, M.P.A., GovExec.com - The US taxpayer in today's national economy is being positioned to fund the surmised 'housing' costs of two married active duty personnel stationed in San Diego functioning in CLERICAL support roles of some sort. And yes, there are legions of CLERICAL support Navy staff of all ranks currently stationed in San Diego. Think about that fact for a moment. THIS COUPLE gets handed greater than $4,100 PER MONTH (OR $49,200 PER YEAR) TAX FREE FOR SO-CALLED "HOUSING," WHICH IS ABOVE AND BEYOND THEIR COMBINED NEAR $100,000 BASE SALARY. First: Why should the US taxpayer pay these volunteers ANYTHING for surmised 'housing' when they are already being given $100,000 each year in salary alone? Second: Why shouldn't these volunteers use at least some of their combined $100,000 salary to pay for their own housing just like the rest of the American population? Third: Why should the US taxpayer pay BOTH of these volunteers a tax free monthly surmised 'housing' allowance when they both live in the same residence?
This couple, these THIRTY-SOMETHING volunteers, EACH WITH NO MORE THAN A HIGH SCHOOL DIPLOMA, have been in the Navy for 16 years. Each has risen to the ENLISTED rating/rank of E-7. Each are provided with a generous base annual BASE salary of circa $48,000. But they are also currently handed, each of them, even for the very same household in which they both reside, a tax-free monthly 'housing' (and I'll call it for levity a US taxpayer 'hosing') allowance of precisely $4,107. According to current military policy, one volunteer gets $2,208 (BAH with the dependent rate), and the other gets handed $1,899 without the dependent rate.
Several points:
If the GOP is sincere about cutting fed expenditures, which is is NOT, they ought to consider the following:
Fact 1: The majority of DOD expenditures are for pay and benefits for active duty members.
Fact 2: Military pay and benefits are at all-time highs. O-5/ O-6 compensation, when greater than 20 years, commonly reaches $175,000 per year, $40,000 and more of which is in fully tax free 'housing.'
Fact 3: All members of the military are volunteers.
Fact 4: Most members enlist to serve and serve in non-combatant fields and specialties.
Fact 5: Only a small percentage of active duty volunteers (when viewed DOD-wide) served in Iraq or Afghanistan, and an even smaller percentage of those that did serve overseas never set a foot outside of the wire in either geographic location.
Fact 6: The VAST majority of active duty members are stationed stateside or on safe overseas bases.
Fact 7: According to recently published peer-reviewed studies, military direct compensation (salary and 'housing' allowances, amongst others) is now HIGHER than their demographic counterparts in the private sector. Note: This has NEVER EVER occurred in the Nation's history. NEVER!
Fact 8: The monthly tax free 'housing' allowances are excessively high. Many reach upwards of $3,000 - $4,000 per month.
Fact 9: No receipts are required to prove that these funds are even used on 'housing.' And as a result, many members pocket huge windfalls each and every month.
Fact 10: Other than the PHS and NOAA (both of which are miniscule in comparision to DOD, and both of which are full of MDs, PHDs, and public health scientists, there is no other public sector organization on the planet that hands its de facto employees between $3,000 - $4,000 (and above) tax free for so-called 'housing' above and beyond their salaries.
Fact 11: The majority of the American public, millions of who are struggling to even locate employment, are FULLY UNAWARE of these 'housing/hosing' windfalls.
You want something to cut, GOP, cut here!
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