Monday, February 10, 2014

Retirement Perks for Generals and Admirals Questioned in Light of COLA Decrease for Military Retirees

One of the provisions of the Ryan-Murray budget deal was to slash a percentage point off the Cost of Living Allowance (COLA) provided to veterans at the end of each year. So if the cost of living is 3% in a given year the veterans COLA is only increased to 2%. Over the course of time this adds up to a lot of lost money. Hopefully members of Congress will change this over the next few weeks. Congress saw the veterans as an easy target. Less than 1 per cent of the population ever serves in the military; so recognizing a weak voting block they saw an opportunity to save $6 billion. Of note, is the silence of our senior general officers on this matter. It would appear that they care more about weapons systems (airplanes, ships, and tanks) than about the people that operate them. Of special note is a perk that generals and admirals receive if they retire with more than 40 years service. These individuals receive more than the base pay they would have received while on active duty. Read more on this in "Senator Questions Retirement Perks for Generals and Admirals", POGO.org, February 5, 2014.

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