2012 Chapter Presidents Symposium Spouse Benefits Brief

Transcription

1 2012 Chapter Presidents Symposium Spouse Benefits Brief Presented by Bud Schneeweis, CFP CAPT USCG (Ret) Director, Benefits Info & Financial Education Department Military Officers Association of America

2 Thank You! to all Military and family members who served our country.

3 10 Years of Wins Major Pay Raises for Currently Serving End Strength Increases Survivor Benefit Upgrades Defeated Major TRICARE Fee Hikes TRICARE For Life/TRICARE Senior Pharmacy Major GI Bill Upgrades (Transferability) Wounded Warrior Protections Caregiver Enhancements Repealed REDUX Retirement Penalties Concurrent Receipt Reserve TRICARE Coverage (& Premium Cut) G/R Rtmt Age Credit for AD Svc (Prospective)

4 But Major Risks on Horizon FY13 Pentagon Budget Proposal Big TRICARE Fee Hikes, Retirement Review Sequestration Impact Eff. Jan 13 Another $500 Billion+ Defense Budget Cut 32% Medicare/TRICARE cut Eff. Jan 13 Cost of fix = $271B over 10 yrs

5 President s Budget Force Reductions Pay Caps (FY15+) Retirement Reform TRICARE Fee Hikes Two more BRAC Rounds

6 President s Budget Force Reductions Budget calls for 124,000 end strength reduction over five years 80,000 Army 6,200 Navy 20,000 Marine Corps 4,200 Air Force 21,500 Reserve Component MOAA position: ensure cuts don t proceed faster than reductions in mission rqmts 6

7 President s Budget Pay Proposal FY2013 = 1.7% pay raise keeps pace with private sector growth FY2014 = comparability-based raise FY2015-FY2017 = abandons comparability standard & limits military raises to: 0.5% for FY15; 1% for FY16; 1.5% for FY17 MOAA position: maintaining tie to private sector pay growth is essential based on past hard lessons learned 7

8 President s Budget Retirement Reform Retirement: Budget calls for BRAC-like commission to recommend changes to military retirement MOAA position: Oppose BRAC-style rules that short-circuit full congressional scrutiny 8

9 President s Budget Health Care Fees DoD Proposes Large Health Fee Hikes for All Retirees, Citing: Need to Restore 1995 Share of DoD Cost Need to Move Toward Market Rates Cost of Legislated Benefit Increases Need to Free Funds for Weapons Shift $51B to Beneficiaries Over 10 yrs 9

10 President s Budget TRICARE Fee Proposal Impact Currently Serving Family of Four (TRICARE Standard) FY 2012 $564 FY 2017 = $ Retiree Under Age 65, Family of Three (TRICARE Prime) FY 2012 $988 FY 2017 = $3, Retiree Over Age 65 and Spouse (TRICARE For Life) FY 2012 $3,154 FY 2017 = $5,

11 MOAA Position Big DoD Fee Hikes Are Bait and Switch After retirees pre-paid huge svc premiums Means-Testing Discriminates Against Military Longer, more successful svc = lower benefit Military Should Have Top-Tier Rx Benefit, not Civilian Median Annual Increase % Shouldn t Exceed COLA % No Enrollment fee for TRICARE Std or TFL DoD Should Fix System, Not Punish Families 11

12 Current Status House passed H.R on 18 May Senate Armed Svcs Cmte version S completed 24 May Expect full Senate action in September House/Senate negotiations: Sep Nov/Dec?? 12

13 What s In/Out Proposal House Senate 1.7% Pay Raise Limits on End Strength Reductions BRAC-like Rtmt Reform Commission No Means-Testing/TFL/Standard Enroll Fee No No DoD s RX fee increases Limits Allows BRAC Rounds No No Space-A Eligibility Expansion Civilian Workforce Cuts Annual Report on Dwell Time 13

14 What Can You Do? Stay Informed Get Active: Contact Your Legislators There Are Plenty of Others Lobbying Congress Against You

15 The Challenges The Budget Deficit Entitlement programs War Costs and Actions DOD Health Care Costs Military People vs. Weapons Costs Electioneering Lack of Military Experience in Cong

16 Declining Military Experience in Congress Senate 68% House 48% %

17 How to Contact Your Legislators

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22 YOU MAKE THE DIFFERENCE! Without Your Grassroots Support and Pressure on Your Legislators By ourselves, we can t be as effective on your behalf!

23 Your Benefits Information and Financial Education Department (BIFE)

24 BIFE Mission Recruit, Retain & Serve MOAA members and families thru accurate, timely, comprehensive communications: Outreach Programs Print / Electronic Media Member Service Benefits Counseling Financial Education

25 Who s Who in the BIFE Dept? Director CAPT Bud Schneeweis, USCG Ret., CFP Deputy Directors CDR Katherine O Neill Tracy, USN Ret. LtCol Shane Ostrom, USAF Ret., CFP LTC Jacqualine Arnold, USA Ret.

26 Outreach Programs Inform & Educate Conduct 120 Presentations a year: Retiree Appreciation Days A/D Transition Seminars G/R Benefits Seminars Benefits Updates Financial Education Spouse Outreach MOAA Chapter Visits

27 Financial Planning Opening Doors Financial Education Active Duty Transition Seminars Active Duty Career Courses MOAA Chapters Web-based Financial Education Center Provides timely financial information on broad range of topics Joint Seminars Support TOPS Program & Career Fairs Answers Members Inquiries General tax and financial planning topics

28 BIFE: Impact Online & in Print Military Officer Magazine (MOM) Rapid Fire features Ask Bud Column Financial Education & other articles Today s Officer Online Benefits Information Articles Financial Education Articles News Exchange (Bi-weekly online news ltr) Benefits Information Articles Financial Education Articles Publications & Checklists Financial, Benefits, Health Care & Spouse Web Content Financial Blog: Financial Frontlines Health Care Blog: Health Care Happenings

29 Publications

30 Member Services Expertise for AD, G/R, Retired, Survivors & Families in: Military Benefits TRICARE Social Security/Medicare Federal/OPM Issues Veterans Affairs Financial Planning & Education Personal Affairs Research & Publications Spouse and Family Issues

31 Personal Affairs

32 Personal Affairs at the Personal Level Gather Information Today Get the Facts: Use creditable sources Review Annually

33 Personal Affairs at the Personal Level Get Personal Affairs in order Update your Will, Trust, Living Will Gather Documentation Complete Personal Affairs Workbook

34 Personal Affairs at the Personal Level Documentation Readily Available Birth Certificates Marriage Certificates Divorce Decree Changes in name Death Certificate Separation Documents DD Form 214 Retirement Orders

35 Personal Affairs at the Personal Level Money set aside For surviving spouse days Immediate living expenses after sponsor s death

36 Personal Affairs Committees Why PA Committees? Chapter s first response for member care & information Chapter Population is Aging Survivor Assistance is Needed Reference Source Close to Home

37 Personal Affairs Committees Chapter s education & response effort for member information & support Pre-Need Planning Time-of-Need Response Benefits Resource

38 Help Your Survivors Now! Potential Financial Benefits Entitlements Personal Affairs Personal Affairs Workbook Checklist

39 Military Burial Guide Arlington National Cemetery State/Overseas/VA Cemeteries Entitlements to Interment

40 How You Can Help Stay Informed Advocate to improve benefit shortfalls Promote BIDs services, tools & publications Recommend us as Speakers Network w/local AD, G/R, Ret. & Spouse/Family activities Provide personal POC s in local organizations for us to follow-up Provide feedback - let us know: Your questions & concerns How we can improve Support Chapters Personal Affairs Committees Auxiliary Liaisons

41 Let s Talk Military Benefits The Latest Info on Your Benefits

42 Tricare Update

43 TRICARE/TFL The TRICARE Health Plan Serves more than 9.2 million beneficiaries! Standard Fee for service Extra Preferred Provider Prime Managed care (HMO) Prime Remote TRICARE For Life (TFL) Eligible for Medicare Part A Enrolled in Medicare Part B Valid Military ID Card

44 Military Retiree Health Coverage (Under Age 65) TRICARE Standard (Fee For Service) $150/$300 Deductible 20-25% Outpatient Copay $708/Day or 25% Inpatient Copay On Your Own to Find Doctor TRICARE Prime (HMO) $260/$520 Enrollment Fee Copay: $12 Outpatient/$11 Inpatient Guaranteed Access Standards

45 TRICARE -- Pharmacy Benefit Military Treatment Facility (MTF) Tricare Retail Pharmacy (TRRx) Tricare Mail Order Pharmacy (TMOP) Not available if covered by another drug plan Out of Tricare network retail pharmacy

46 Point of Service Generics Rx Co-Pays Brand Name MTF $0 $0 $0 Non- Formulary TMOP (<90 day supply) Retail Network (<30 day supply) $0 $9 $25 $5 $12 $25 Non- Network (Annual Ded. Must Be Met) Greater of $12 or 20% of total cost Greater of $12 or 20% of total cost Greater of $25 or 20%

47 Tricare For Life Issues Tricare is a Medicare Supplement Tricare invisible to health care community Just find a Medicare doctor No need to mention Tricare Additional coverage adds complexities Probably over insured Don t need to show the military ID card

48 2012 Medicare Part B Premiums Single Filer INCOME Married Filing Jointly Member s Portion of Cost Share with Govt. Monthly Premium per Person Below $85,000 Below $170,000 25% $ , , , ,000 35% $ , , , ,000 50% $ , , , ,000 65% $ Above 214,000 Above 428,000 80% $319.70

49 DoD-Proposed Fees (TRICARE Prime Family) Fees Retired Pay Current FY13 FY17 <$22,589 (E-1 to E-6) $22.6K - $45.2K (E-7 to O-4) $45.2K+ (W-4/O-5+) $520 $680 $893 $520 $720 $1,523 $520 $820 $2,048

50 DoD-Proposed Fees (TRICARE Standard Family) Current FY13 FY17 Ann. Enroll. Fee $0 $140 $250 Deductible $300 $320 $580 Total* $300 $460 $830 *Plus 25% copay for all care

51 DoD-Proposed Fee (Medicare-Eligible Couple) Annual TFL Enroll. Fee Retired Pay Current FY13 FY17 <$22,589 (E-1 to E-6) $22.6K - $45.2K (E-7 to O-4) $45.2K+ (W-4/O-5+) $0 $70 $316 $0 $150 $634 $0 $230 $950

52 DoD-Proposed Rx Copays Retail FY12 FY13 FY17 Generic $5 $5 $9 Brand $12 $26 $34 Non-form. $25 N/A N/A Mail Order Generic $0 $0 $9 Brand $9 $26 $34 Non-form. $25 $51 $66

53 Medicare Part D Benefit Military Retirees and Their Spouses or Survivors DO NOT NEED to Participate in Medicare Part D Programs

54 Survivor Benefit Program (SBP)

55 SBP: Social Security Offset Eliminated SS Offset phased out April 2008 Annuity payment is now: 55%* 55% is the max payout *Of Annuity Base Amount elected at retirement

56 Paid-Up SBP 360 Months of Payments >70 years of Age DFAS Dispute Period from Jan 01, Jun 30, 2009

57 SBP Still Not Fixed The SBP-DIC Offset Social Security Offset was eliminated The SBP-DIC Offset was not Offset is dollar-for-dollar: SBP $ - DIC $ SBP Benefit

58 Congress Admits SBP-DIC Offset Inequity 2008 and 2009 First Legislative Steps Established Special Survivor Indemnity Allowance (SSIA) 2008: Starting 2009, extra $50/mo payment with $10/mo added each yr for 5 yrs (2013) 2009: Extended SSIA ; $150, $200, $275, $310 All SSIA stops in 2018

59 Reserve Component SBP RC-SBP has two premium payments The RC portion for Gray Zone coverage Active portion for after age 60 Both paid at age 60 After member death RC premium stops now recent change

60 Permanent ID Cards FY 2005 Defense Authorization Act Spouses & Survivors 75 & Older Began Sep 05 FY 2007 Disabled dependents Began Jan 07 Strings atchd Financial support statement still required

61 The Effects of Remarriage on Benefits & Programs for Surviving Spouses

62 Military Benefits Upon Death of Military Member Surviving Spouse remains eligible for all benefits (medical care, commissary, exchange, theater, etc.) Except space-available travel

63 Military Benefits Effect of Remarriage (to a non-service member) Upon remarriage All military benefits suspended

64 Military Benefits Remarriage Terminates all benefits except medical will be reinstated (if subsequent marriage ends in death or divorce)

65 Military Survivor Benefit Plan (SBP) Upon Death of Military Member If elected SBP SBP Payments Begin

66 SBP Effect of Remarriage Before Age 55 SBP Payments Suspended Remarriage Terminates SBP Payments Reinstated

67 SBP Effect of Remarriage On or After Age 55 SBP Continues

68 Dependency & Indemnity Compensation (DIC) DIC is awarded to a surviving spouse of a disabled veteran: If the death is attributed to an injury or disease incurred on active duty Or - If the retiree had 100% VA disability rating 10+ years 5 continuous years from release of active duty Or - Former POW rated 100% one year prior to death

69 DIC Effect of Remarriage Before Age 57 DIC Suspended On/After Age 57 DIC continues Remarriage Terminates DIC Reinstated

70 DIC & SBP Offset SBP is reduced One $ for each $ received in DIC SBP premiums reimbursed - IF DIC is applied for within 1 year of service member s death

71 SBP & DIC Effect of Remarriage Before Age 55 SBP & DIC Suspended

72 SBP & DIC Effect of Remarriage On or After Age 55 but Before Age 57 DIC Suspended & SBP Increased*

73 SBP & DIC Effect of Remarriage On or After Age 57 BOTH SBP and DIC Paid In Full Thanks to the Sharp Case

74 Social Security Upon Death of Military Member Can receive Social Security Survivor Benefits Reduced rate Age 60

75 Social Security Effect of Remarriage Before Age 60 Not Eligible on Members Record Remarriage Terminates Eligibility Restored

76 Social Security Effect of Remarriage After Age 60 No Effect on Social Security Entitlements

77 CHAMPVA Family Members of Veterans Permanent & Total disability (service-connected) Service connected death Die while having 100% disability

78 CHAMPVA Effect of Remarriage Lose CHAMPVA Remarriage Terminates CHAMPVA Restored

79 Military Officers Association of America Benefits Information Department 201 N. Washington Street Alexandria, VA x116 BenInfo@moaa.org Web: