NewsBytes September 16, 2022
In this issue:
Concurrent Receipt Update
Six More States Exempt/Partially Exempt Retired Pay from Taxation
New Master Chief Petty Officer of the Navy
Concurrent Receipt Update
The FRA signed onto a letter from The Military Coalition (TMC) urging House and Senate leadership to fast track pending concurrent receipt legislation in the House (H.R.1282), and an amendment to the Senate National Defense Authorization Act (NDAA S.4543). The FRA is a founding member of The Military Coalition, which is comprised of 35 organizations representing more than 5.5 million members of the uniformed services--active, reserve, retired, survivors, veterans--and their families.
The coalition letter notes that currently, combat-injured (and often seriously disabled) veterans are subject to a cost-saving offset where their retirement pay is reduced for every dollar of VA disability received. Retired pay is for completed years of service paid by DoD, while disability compensation is for lifelong injury paid by the VA. These two benefits, established by Congress for entirely different reasons, are nonetheless subject to an unjust statutory offset. To reduce retirement pay because of a combat disability is an injustice.
Members can weigh in on this issue online.
Six More States Exempt or Partially Exempt Retired Pay from Taxation
This year six states exempted, or partially exempted, military retirement pay from state their income tax. According to Military.com state legislators in New Mexico, Oklahoma, Rhode Island, South Carolina, Vermont, and Virginia passed laws giving retirees in those states tax breaks based on their military service. These tax changes include:
• New Mexico: Beginning in 2022, up to $10,000 of military retirement is tax free. That amount increases to $20,000 in 2023, and to $30,000 until at least 2026.
• In Oklahoma, Rhode Island, and South Carolina military retirement income is fully tax-free beginning in 2022.
• Vermont: Beginning in 2022, up to $10,000 in retirement income is tax free for those with a gross income less than $50,000 for single filers or $65,000 for joint filers.
• Virginia: In 2022, up to $10,000 in retirement pay is tax free for retirees ages 55 and older. That amount increases by $10,000 each year until 2025, when up to $40,000 is deductible.
This leaves only California and the District of Columbia fully taxing military retirement income.
New MCPON
As first reported in the March, 25 NewsBytes, Chief of Naval Operations Admiral Mike Gilday selected Fleet Master Chief James Honea to become the 16th Master Chief Petty Officer of the Navy (MCPON). Honea, a sailor for 35 years, previously served as the Fleet Master Chief for U.S. Pacific Fleet. He was sworn in on Sept. 8, 2022. Honea enlisted in the Navy in 1987 and advanced through the ranks as a boatswain’s mate. Honea will replace MCPON Russell Smith, who took on the job in August 2018.
Honea served as the Command Master Chief at Naval Support Activity South Potomac as well as Command Master Chief, U.S. Naval Forces Korea, U.S. Naval Forces Central Command and U.S. Fifth Fleet. His personal awards include the Legion of Merit Medal, Meritorious Service Medal (five awards), Navy and Marine Corps Commendation Medal (three awards), and Navy and Marine Corps Achievement Medal (four awards) as well as numerous unit, and campaign awards. He's a graduate of the U.S. Air Force Senior Non-Commissioned Officer Academy, Command Master Chief Course and Senior Enlisted JPME Keystone Course from the National Defense University.
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