From the Daily Kos: Washington Plans to "Screw" Veterans?

Mon Dec 16, 2013 at 08:20 AM PST

How Washington plans to screw military veterans

by brooklynbadboyFollow

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attribution: Gary Cameron/REUTERS

If you think the most recent "embrace the suck" passed in the House that screws military veterans' pension benefits is just one step in the effort to screw vets, you'd be wrong. In fact, these ideas and worse have been brewing in Washington for a few years now. I first covered this issue in 2011, when the Obama Administration first began proposing 85 percent cuts in military pension plans. I noted later that year that a big battle was brewing over it, and then again in 2012 when some of the proposed cuts became part of Grand Bargain negotiations. Each time, military families have fought back, including our very own angelajean, MilitaryTracy, and others who are part of the Daily Kos Military Group. First and foremost, join their campaign to fight this cut in military benefits. Make no mistake, the Administration and Congress have big plans for military veterans and their retirement and none of them are good.
Among the changes being considered:

The Department should establish a new structure for the military retirement system, based on annual contributions. One model for this new structure is the existing Uniformed Military Personnel Thrift Savings Plan (TSP).

The TSP operates in much the same way as a 401(k) plan, which is the largest scam ever perpetrated in the history of finance. Money is taken out of your meager military pay and then invested in mutual-type funds. They work just like a 401(k) plan, in that you can take the money out before you retire, borrow against it, or play around in high-risk securities with it. One of the funds invests in government securities and is managed by the Plan's trustees. Those funds will not ever lose money, so long as there is never a default. But, you guessed right, the rest of the funds are invested in Wall Street securities. Those funds are managed by Larry Fink's BlackRock, a spin-off of Steven Schwartzman's Blackstone Group. Management fees are, of course, paid to BlackRock. How nice is that? Please read below the fold for more on military benefits.

So, first things first: End pensions for military members, and instead, throw them into 401(k)-type plans managed by Wall Street firms. Which, I'm sure you all know, are just overflowing with happy retirees.
Next, this little turd:

DoD contributions could vary depending on the needs of the services, such as larger contributions at certain retention gates, specific Military Occupational Specialty, or other demands to assist in force shaping.  

Under the current deal, it does not matter what your rank or billet is. If you serve your 20 years, you get your pension for life. You put your life on the line, you get this promise in return for you and your family. It's that simple. But under the new plan, how much the Pentagon contributes to your market-sensitive 401(k) plan will depend on your rank and billet! How much would you guess that top brass will be deemed "essential to force shaping" and enlisted grunts get the shaft? That would be a sure bet because it's in the recommendations. 

Now, one of the things the government needs to address is this problem: If you serve less than 20 years, you don't get a military pension. Yes, that is the deal, you know that going in. If you want to go to the private sector after a 4-year stint, well ... good on you. But what of someone who serves 15 or 19 years? Well, those folks should be taken care of, obviously. A graduated pension system makes sense. Your pension amount should start quite low and increase over time served, obviously. That is the obvious, sensible solution. Turn the retirement cliff into a slope.

The Administration and Congress, however, aren't proposing that as a simple solution. They propose to do away with military pensions altogether and put in a 401(k) system instead. I can't think of a greater insult to those whose jobs involve so much sacrifice for them and their families. Sometimes their very limbs. The current budget agreement passed in the House is just a first step, cutting the cost of living adjustment. The next step is junking the military pension system altogether.

There is no way President Obama and members of Congress can support this and claim with a straight face that they are keeping America's promise to our veterans.

Originally posted to Triple-B in the Building on Mon Dec 16, 2013 at 08:20 AM PST.

Also republished by Military Community Members of Daily Kos and Daily Kos.

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