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Coast guard retirement pay government shutdown Form: What You Should Know

Over a decade after President Bush signed the Military Compensation and Retirement Modernization Act of 2003, the Department of Defense is still struggling to cope with the fallout from its disastrous implementation while Congress works feverishly to finish off the unfinished business in 2017. The problem is not an easy one to fix and for the military, it can be very costly, according to a draft budget proposal that was circulated on Capitol Hill in late September. Over a decade after president Bush signed the Military Compensation and Retirement Modernization Act of 2003, the Department of Defense is still struggling to cope with the fallout from its disastrous implementation while Congress works feverishly to finish off the unfinished business in 2017. The problem is not an easy one to fix and for the military, it can be very costly, according to a draft budget proposal that was circulated on Capitol Hill in late September. A draft bill that would extend military retiree, annuity and lump-sum pay during a federal government shutdown is expected to be put before Congress early next year, according to Defense Department officials. The proposed legislation would also give retired members an additional week's pay during their final year of service. [...] A similar bill to extend pay and leave in 2023 was the subject of a shutdown that lasted nearly six months, after which Congress ended up cutting benefits and increasing pay for affected troops on both sides of the budget aisle. In December 2012, retired members had received their last pay, lump-sum payments, and lifetime annuities. The new draft, introduced on Oct. 22, would reauthorize those pay raises and more. The bill would also extend retroactive pay and benefits to service members from World War II, Korea and Vietnam who were not at work during the shutdown. The bill would give retiring military members one extra week of leave, and it would pay them retroactively in time for them to receive their monthly military retirement, retroactive pay, and more. The bill would also ensure those with more than five years of service will receive the average of 10 to 12 months of their pay, lump-sum payments, or annuities. The bill would “pay all veterans in a lump sum of 2.5 to 3 times the average amount of monthly military pension for the active duty service” for more than two weeks before their retirement, if they are a veteran or eligible to receive it under the military retirement system. The bill would provide retroactive pay to all the service members who had their final paycheck withheld between October 1 and October 15.

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