Now Hear This

November 2009 Navy

by Tom McAtee

Two Highlights of Conference Report on NDAA 2010

2010 Pay Raise for Military

Effective 1 January 2010, the military pay scales will increase by 3.4 percent. This is 0.5 percent above the Administration’s budget request.

Gray-Area Reserve TRICARE

Reserve and Guard “gray-area” retirees—those who have not reached age 60 to qualify for full retiree benefits—will be able to buy into TRICARE Standard coverage at full premium cost for themselves and their families. Given that this is an older population, premiums are expected to be higher than those set for TRICARE Reserve Select which, for 2009, was $47.51 a month for member-only coverage and $180.17 for family coverage. The effective date in the bill is 1 Oct. 2009; but for practical purposes, it could take Defense officials many months to write regulations and set rates for the gray-area retiree program. Only a guess estimate but monthly premiums could range from $150 to $200 for member and $650 to $750 for family.

No Retiree COLA for 2010

Economic forecasts from the government still indicate consumer prices have dropped 2.1 percent. Since retiree COLA is connected to the Consumer Price Index, a measure of the cost of goods and services over the past 12 months, the negative trend means deflation rather than inflation. Some forecasts predict that a no-COLA situation could last until 2013.

Navy Reserve JOY for FY 2009 Nominations

Nominations for the Reserve JOY for FY 2009 are due to Navy Reserve Forces Command by 29 January 2010.

E-7/8/9 Board Correspondence Submission Deadlines

• Active E-9 - 12 Feb 10
• Reserve E-8/9 - 12 Feb 10
• Active E-8 05 - Mar 10
• Reserve E-7 - 02 Apr 10
• Active E-7 - 07 May 10

The Big Do-Over

If you opted for early social security benefits and are at or near 70, some financial planners say it may be wise to investigate paying back the social security you received and reapply for the higher income level of full social security. This plan may not fit every social security receipent because there is a recoupment period and you are betting on living long enough to make it profitable. Check your local Social Security Office for more details.

Upcoming Board Schedule Through February

The Association’s Record Review Program is a great way to get your service record ready for promotion selection and advancement boards.