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Benefits boost for retirees, survivors blocked

The House Armed Services Committee blocked Republican efforts to provide big boosts in retiree and survivor benefits because there was no way of covering the costs over the next 10 years.

Rep. Ike Skelton, D-Mo., the committee chairman, said there might be a partial solution that covers some expanded benefits by the time the full House takes up the 2010 defense authorization bill in a few weeks, but “it is not for sure.”

Blocked were some long-time top initiatives for military and veterans groups, including a more generous military retirement benefit for National Guard and reserve benefits and elimination of the so-called “widow’s tax” for survivors and “disability tax” for veterans retired from the military on disability with less than 20 years of service

Skelton said the widow’s tax and disability tax initiatives could cost $36 billion over the next decade. No specific estimate was provided for the reserve retired pay proposal.

Rep. Joe Wilson, R-S.C., who proposed the amendments, tried to tap into a reserve fund created by the 2010 federal budget plan so specifically cover the two benefits. Skelton and Rep. John Spratt, D-S.C., the House Budget Committee chairman, said the reserve fund has no money. The reserve fund was supposed to be fueled by cuts in federal entitlements, most likely from getting other congressional committees to cut benefits.

“In our committee, we do not play games,” Skelton said. “We do not accept legislation that we cannot pay for ourselves, and we don’t try and gain political points by raising the hopes of the men and women who sacrificed so much for our country.”

Skelton accused Wilson and other supporters of the amendment of playing politics with benefits. “The authors of this amendment know these rules and choose to ignore them, hoping no one would notice their lack of sincerity at truly solving the problem.”

Supporters of the benefits increases said they weren’t playing games but trying to deliver on old promises that year-after-year get rejected for exactly the same reason, strict budgeting rules make it impossible to fund.

“We have to find the money to do this. We find billions for other things. We have to find it,” said Rep. Roscoe Bartlett, R-Md.

Skelton said he agreed. “If you have a way to pay for it, tell us.”

Skelton’s staff said because of budgeting rules, the only way the committee could cover the cost of Wilson’s amendment would be to ravage other military entitlements, like retired pay, health care benefits for older retirees and Montgomery GI Bill benefits for reservists.

Rep. Howard “Buck” McKeon, ranking Republican on the armed services committee, said he thinks Republicans “could find the money” if they were in charge, saying billions spend on economic stimulus and economic bailouts included some projects he considered less important than retiree benefits.

“We have not been sleeping on this issue,” Skelton said. “It has been very, very difficult for us.”