This is MOAA's LEGISLATIVE UPDATE for Friday, August 6, 2004

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Since 08-06-04


Issue 1 Veterans Benefits Bills Advance.
Just prior to the summer recess, the House and Senate Veterans Affairs Committees endorsed legislation to adjust the COLA for veterans' disability payments, expand GI Bill education benefits, and strengthen financial and legal protections for mobilized Guard and Reserve members and their families.

Issue 2 Member Action Needed for Final Defense Bill Push.
During the August recess, please visit your Congressman to push for MOAA's most important Defense Bill issues. If you can't find the time to visit, use our Action Alerts to make your voice heard.


Issue 1 Veterans Benefits Bills Advance.

On July 22, the House Veterans Affairs Committee (HVAC) favorably reported a number of veterans' benefits bills. The Committee approved a cost-of-living adjustment (COLA) for veterans receiving VA disability compensation, as well as to surviving spouses and dependents of disabled veterans who receive monthly Dependency and Indemnity Compensation (DIC). The COLA is tied to any adjustment to Social Security benefits and is projected to be in the range of 3.4%. The VA COLA will take effect on December 1 and be reflected in January 2005 checks.

The HVAC also endorsed a bill (strongly supported by MOAA) that would strengthen reemployment rights as well as financial and legal protections for mobilized reservists and National Guard members and their families. The "Servicemembers and Veterans Legal Protection Act of 2004" (H.R. 4658) includes provisions to:

Clarify that dependents as well as servicemembers are covered by the residential and motor vehicle lease termination protections on joint leases under the Servicemembers Civil Relief Act (SCRA);

Prohibit double taxation of servicemembers when the laws of a tax jurisdiction do not provide credit against certain taxes the servicemember previously paid in another jurisdiction;

Increase from 18 to 24 months the maximum period of employer-provided health coverage that an employee may elect to continue under the Uniformed Services Employment and Reemployment Rights Act (USERRA);

Require employers to provide notice to employees of their rights and obligations under USERRA; and

Reinstate a requirement for the Labor Department to report annually to Congress on the disposition of cases filed under USERRA. MOAA testified before the HVAC on these issues on June 23; the testimony is available at: www.moaa.org/Legislative/Testimony/Default.asp.

The Senate Veterans Affairs Committee was also busy in July before Congress recessed for the month of August. The Committee endorsed an omnibus veterans' benefits bill (S.2486) that would enhance education and other benefits for veterans and surviving spouses. S.2486 includes provisions to:
Permit mobilized reservists who serve an aggregate 24 months active duty within a five year period (since Sept. 11, 2001) to become eligible for the active duty Montgomery GI Bill (MGIB);

Open MGIB benefits to pay for admission exams and college credit exams;

Extend the usage period for surviving spouses' educational assistance benefits if the servicemember died on active duty from 10 to 20 years after the member's death (MOAA supports extending or eliminating the usage period for all MGIB programs); and

Raise home VA home loan guaranty rates and authorize the use of Adjustable Rate Mortgages (ARM) for VA home loans. These and related veterans' benefits legislation will come before the full House and Senate for consideration when Congress returns to work after Labor Day. With the nation at war, we expect final action on many of these legislative initiatives before the 108th Congress adjourns.

Issue 2 Member Action Needed for Final Defense Bill Push.

The House and Senate have only a few more weeks left in their annual August recess. This means that most lawmakers should be out and about in your area through Labor Day weekend. During this time, they will be making personal appearances, hosting town meetings, and appearing on call-in shows to interact with constituents in the home state/district. If possible, please try to contact them at these events, or make a visit to their district offices in support of MOAA's critical Defense bill issues.

Our top issue continues to be ending the SBP Widows Tax. Ask your Congressman or Senator to back the Survivor Benefit Plan (SBP) proposal in the House version of the 2005 National Defense Authorization Act. This is particularly important if your legislator is a member of either the House or Senate Armed Services committees, as conferees from the HASC and SASC will be meeting shortly after their return to Washington to hammer out the final version of the Defense bill. The House version would phase out the age-62 benefit cut in 3.5 years, and offer a fair shake to those retirees who wish to newly enroll in the program or increase their election. The Senate bill, by contrast, would take ten years to end the offset, and would put in place extremely burdensome barriers to new or increased coverage.

Please also urge your Representatives and Senators to push for inclusion of Sen. Reid's concurrent receipt amendment. This measure would eliminate the phase-in period from the concurrent receipt benefit for 100% disabled retirees, allowing them to collect their full retired pay along with their full VA compensation beginning in 2005. Our contacts on Capitol Hill feel this proposal stands a good chance; however, it does not have a companion measure in the House bill, so a strong show of support is needed to secure final passage.

Other key issues to address with your legislator include National Guard and Reserve healthcare, permanent ID cards for spouses and survivors over age 70, and increased Army and Marine Corps end-strength. If you are unable to make personal contact with the members of your Congressional delegation, you can continue show your support by sending legislative alerts on SBP, concurrent receipt, and National Guard and Reserve healthcare from our website at http://capwiz.com/moaa/home/.
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Contributed,
YNCS Don Harribine, USN(Ret)