FY 2011 National Defense Authorization and Appropriations Update

August 2010 Navy

by CAPT Ike Puzon, USN (Ret)

The FY-2011 National Defense Authorization Act (NDAA) is currently awaiting Senate floor action after passage in the House. The original defense budget proposed a $549 billion base budget (a 3.4% increase) and $159 billion more to support war operations in Iraq and Afghanistan. The FY 2011 Defense Appropriations Bill or War Supplemental have still not been passed at this time. Some highlights follow which have not passed at this writing;

Pay Raise – A military pay increase of only 1.4%. This would be the lowest military raise since 1963. We have been successful at this time in increasing the pay raise to 1.9%. Several military and defense leaders and OMB oppose this pay raise hike. This is perplexing since military pay still lags 2.4% behind civilian pay.

Concurrent Receipt – The President’s budget again proposes a five-year plan to phase out the disability offset to military retired pay for all members whose servicecaused conditions forced them into medical retirement. The House version of the NDAA has addressed this in a phased in method.

Health Care – The budget proposes $50.7 billion to fund fully the Defense Health Program without any TRICARE fee increases for retirees. Congress refused to make the increases offered by DoD due to voter involvement in the issue.

End-Strengths – At this writing, both the Navy and Navy Reserve end-strengths have not been cut, which is a welcomed change. For years, AUSN has been lobbying that end-strengths need to be frozen during a time of war. DoD and OMB ignored pleas not to cut end-strengths and made cuts based solely on budgetary issues. In recent writing and press, Navy officials are saying they do not have enough end-strength, which is exactly what we indicated would happen. We hope Congress and others will freeze endstrengths for war time. Navy has about 14,000 Sailors ashore in OIF-OEF.

DADT – Repeal of the Don’t Ask, Don’t Tell law was inserted in the House NDAA and the Senate NDAA over the objection of civilian and military leaders at the Pentagon. The repeal appears imminent. Military leaders asked that they be allowed to research and submit the results to the President and Congress before the repeal. Please consider e-mailing or writing Congress to let them know your position on this issue.

Defense Appropriations Update – AUSN recently testified at Senate Appropriations Defense Subcommittee in support of increased Navy shipbuilding which the House appears to be supporting, and of increased Navy Reserve, National Guard, and Reserve equipment account. Navy and Navy Reserve have to reconstitute equipment that is wearing out due to increased usage in OIF and OEF. Please see our Web site, www.ausn.org, to support increased Navy and Navy Reserve equipment accounts.

Update on Reserve Retirement Issue – An amendment to make this provision apply to all those activated since 9-11- 2001 is pending. However, many questions still surround the new Reserve retirement provision from the FY 2008 NDAA that allows three-month reduction in receipt of Reserve retired pay for each cumulative 90 days of active duty. The following are the orders that qualify for this provision. Service on active duty performed under one or more of the following sections of Title 10 U.S. Code qualify for reduced Reserve retirement age credit:

• 101(a)(13)(B): “Contingency operation” service on active duty 688: retiree recall.
• 12301(a): Call-up of the Reserve Components during a time of war or national emergency declared by Congress.
• 12302: Call-up of the Ready Reserve in time of national emergency declared by the President.
• 12304: Augmentation of the Active force under the President’s authority by the Selected Reserve or Individual Ready Reserve to perform any operational mission or in response to certain emergencies.
• 12305: Period of active duty service by Reserve Component members during which the President is authorized to suspend laws related to promotion, retirement, and separation.
• 12406: Call of the NG into Federal service to repel an invasion or suppress a rebellion.
• Service on active duty under Chapter 15, 10 USC, Insurrection, also qualifies.
• Voluntary active duty service, including active duty for training performed under Section 12301(d), will receive credit for all days served “regardless of the nature of the duties performed (e.g., whether performing training or operational support duties)” [emphasis added] according to the Defense Department Instruction in support of war.
• Full-time NG duty performed under Section 115 or 502 of Title 32 USC counts, provided the duty is under a governor’s authority and authorized by the President or the Secretary of Defense for the purposes of responding to either a national emergency declared by the President or a national emergency supported by Federal funds.

Our readers, members, and friends of the Navy should view the advocacy issues on our Web site, www.ausn.org, and use our CAPWIZ system to let Congress know your stand on the issues, or send a note to ike.puzon@ausn.org.