August 24, 2018

In this issue:
NED Meets with VA Secretary
Senators Concerned about Limits on CFPB
July 2018 CPI at 2.9 Percent

NED Meets with SecNav Retiree Council and VA Secretary
National Executive Director Tom Snee met with members of the Secretary of the Navy Retiree Council. NED Snee and staff from several other associations provided a legislative update to the Council. He stressed the need to pass the “Blue Water Navy Vietnam Veterans Act” (H.R.299) this year.  The original proposal would clarify that service members serving off the coast of the Republic of Vietnam during the Vietnam conflict have a presumption for filing disability claims with the Department of Veterans Affairs (VA) for ailments associated with exposure to the Agent Orange herbicide.

During the committee markup in the House, the legislation was amended to extend the presumption of herbicide exposure for veterans who served on or near the Korean DMZ between September 1, 1967 and August 31, 1971. As amended, the legislation will now also extend health care, vocational training & rehabilitation and monetary allowance to a child who was born with spina bifida if at least one of the child’s parents served in Thailand between January 9, 1962 and May 7, 1975 and the VA determines that at least one of the parents had been exposed to a herbicide agent during that period. The bill also now includes improvements to VA’s home loan program. The bill passed the House by a unanimous vote (382-0) and has had a hearing in the Senate Veterans Affairs Committee (SVAC). As of yet, no committee vote has been scheduled. Members are strongly urged to use the FRA Action Center located on the website to urge their Senators to support the bill. 

Other issues discussed include:
• The possibility for more TRICARE fee increases for military retirees;
• SBP/DIC offset repeal legislation;
• Discussing efforts to reduce veterans suicide;
• OTH discharges being reviewed due to PTSD;
• Burn pit exposure legislation (H.R.5671); and
• Lack of financial literacy for active duty personnel making investment decisions with the new Blended Retirement System.

In related news NED Tom Snee met with the new VA Secretary Robert Wilkie, confirmed in July, to discuss veteran’s issues. This off-the-record meeting included a discussion of the pending “Blue Water Navy Vietnam Veterans Act” (H.R.299), and VA efforts to reduce the frequency of veteran’s suicide.  

Senators issue Letter of Concern to President about Limits on CFPB Military Office.
In response to a report on National Public Radio (NPR) that the Administration is considering scaling back enforcement of the Military Lending Act (MLA) by the Consumer Finance Protection Bureau (CFPB), 49 Senators signed a letter to President Trump urging him not to relax MLA oversight over predatory lenders. The MLA was an FRA-support measure that passed in 2006 as part of the FY2007 National Defense Authorization Act (NDAA). It had bipartisan support to help safeguard active-duty military members and their families from financial fraud, predatory loans and credit gouging. The law caps the annual interest rate for an extension of consumer credit to a service member or his or her dependents at 36 percent.

According to NPR and other news sources, the Trump administration is planning to suspend routine examinations of lenders for violations of the MLA. FRA has argued that recognizing U.S. troops face unique financial challenges and their financial steadiness is directly tied to military readiness and security clearances. 

July 2018 CPI at 2.9 Percent
The Consumer Price Index (CPI) is used to calculate the annual cost-of-living adjustment (COLA) for military retired pay, VA benefits for disabled veterans, survivor annuities, and Social Security benefits for the next year. According to the Bureau of Labor Statistics (BLS), the CPI inflation rate for July 2018, was 2.9 percent and the rate of year-over-year growth is up 0.2 percent from last month. Last year’s COLA was 2 percent. Since 2008, the annual COLA has been above two percent only once and has been at 0 three times. This year’s COLA will be announced in October. 

The Consumer Price Index (CPI) is an indicator of the general level of prices. CPI is a benchmark to determine the cost of a “basket of goods” for the average American.  Components in the “basket of goods” include gasoline, electricity, food and beverages, housing, apparel, transportation, medical care, and entertainment. When the consumer price index goes up, it is an indication that consumers have to pay more for the same amount of goods and services.