Military members get pay raise; some vets see boost in retirement benefits

Military personnel will get at least a 4.1 percent pay raise in 2003, and some disabled military retirees will see a boost in pension benefits under the $393 billion Defense Authorization bill passed by Congress this week.

The legislation (H.R. 4546) includes a minimum 4.1 percent pay raise for military personnel in 2003, the figure proposed by President Bush. Lawmakers from the Washington area are still trying to secure a 4.1 percent pay raise for civil service employees. The Bush administration fiscal 2003 budget proposal included a 2.6 percent average pay raise for civil service workers.

The bill also includes a special compensation that allows military retirees with 20 or more years of service who are recipients of the Purple Heart or have a serious combat-related disability to receive both disability and retirement pay. Prior to the bill's passage, a 19th century law barred disabled military retirees from receiving full pensions and full disability benefits at the same time. Earlier versions of the bill included a "concurrent receipt," plan, which allowed disability pay on top of retirement pay for all disabled military retirees, but the Bush administration had threatened to veto the bill if that provision was included, angering veterans' groups and some legislators.

"Unfortunately, under pressure from the Bush White House, the bill's conferees dropped the ball when it came time to help our disabled retirees," said Rep. Ciro Rodriguez, D-Texas, who serves on the House Armed Services Committee and the House Veterans' Affairs Committee. "Though the bill includes nominal changes to the current restrictions on 'concurrent receipt' of disability benefits and retirement pay, the changes won't really help. It's truly a shame that we again missed this opportunity to do the right thing by our disabled retirees."

Other provisions of H.R. 4546 include:

  • $10.4 billion to build new military facilities and housing.
  • $2 billion for force protection improvements. Defense Department officials must also develop a plan for terrorism preparedness at military installations.
  • Two new positions at the Defense Department: a new undersecretary for intelligence and an assistant secretary for homeland defense.
  • A $375 million increase for the Defense science and technology budget.
  • A National Call to Service enlistment program, which will allow volunteers to join the military and serve on active duty for 15 months. Those enlisting under this program would receive one of several incentives at the end of their active duty service, including a $5,000 bonus, educational assistance or student loan repayment.
  • A quadrennial review of employees' quality of life.
  • An increase in the housing allowance.
  • An assignment incentive pay of up to $1,500 to encourage military personnel to apply for hard-to-fill jobs.
  • A requirement for adopting control measures to help root out waste, fraud and abuse in the Defense Department's purchase and travel card programs.

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