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Statement
of the Fleet Reserve Association United States Coast Guard’s FY 2006 Budget submitted
to the by Joseph
L. Barnes March
17, 2005 |
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Certificate of non-receipt of federal funds Pursuant to the requirements of the House Rule XI, the Fleet Reserve Association has not received any federal grant or contract during the current fiscal year or either of the two previous fiscal years. Introduction Madame Chairman and distinguished
members of the Subcommittee, the Fleet Reserve Association (FRA) appreciates
the opportunity to present its recommendations on the United States Coast
Guard’s FY 2006 Budget. Celebrating its 80th Anniversary, the
Association is a Congressionally Chartered non-profit organization
representing the interests of U.S. Coast Guard, Navy, and Marine Corps
personnel with regard to compensation, health care, benefits, and quality of
life programs. Prior to addressing these
issues, FRA wishes to thank Congress for the generous pay, health care and
benefit enhancements enacted in recent years. Of special importance are the
targeted pay increases for senior enlisted personnel, health care access
improvements, higher housing allowances and additional benefits for Reserve
personnel. The Association is also grateful for the passage of legislation
authorizing the Commandant of the Coast Guard the authority to express his or
her personal opinion, if asked, while testifying before Congress. Coast Guard parity with
DoD personnel programs remains a high priority for FRA with regard to the
Coast Guard. Pay Congress has for the past
few years improved compensation that, in turn, enhanced the recruitment and
retention of quality personnel in an all-volunteer environment. Adequate and
targeted pay increases for middle grade and senior petty and noncommissioned
officers have contributed to improved morale and readiness. With a uniformed
community that is more than 50 percent married, satisfactory compensation
helps relieve much of the tension brought on by demanding operational and
personal tempos. For the FY 2006, the
Administration has recommended a 3.1 percent across the board basic pay
increase for members of the Armed Forces. This is commensurate with the 1999
formula to provide increases of 0.5 percentage point greater than that of the
previous year for the private sector. With the addition of targeted raises
authorized by Congress in FY 2001, the formula has reduced the pay gap with
the private sector from 13.5 percent to 5.2 percent following the January 1,
2005, pay hike. FRA, however, is
disappointed that no targeted pay increases are recommended for FY 2006,
particularly for mid-grade and more senior enlisted personnel. FRA, the 9th
Quadrennial Review of Military Compensation (9thQRMC), and even the
Department of Defense have advocated the necessity for additional targeted
pays. In spite of the targeted pay increases authorized in recent years, the
pay of our noncommissioned and petty officers remains compressed, a situation
that has existed since the advent of the all-volunteer force. FRA has recommended the
House and Senate Armed Services Personnel Subcommittees adopt a targeted pay
table for FY 2006, at least proportionate to that of January 1, 2004, and urges
this Subcommittee to support the initiative as it would greatly benefit Coast
Guard personnel and their families. Health Care Due in large part to the
unique range of geographic locations in which they are assigned, Coast Guard
personnel and their families often struggle to find medical providers who
accept the TRICARE Standard benefit. While implementation of TRICARE Prime
Remote alleviated many of these problems, the standard benefit fee for
service option’s low reimbursement rates can still make finding health care
providers a daunting task. Unfortunately, Coast Guard personnel who choose to
receive care at Military Treatment Facilities (MTFs) may have to travel long
distances to receive care. FRA is concerned that low reimbursement rates will
continue to make health care access a challenge for Coast Guard personnel
stationed in remote locations. Dental costs and
associated reimbursement rates are also challenging for Coast Guard
personnel. For example, the orthodontic benefit is capped at $1,500 thereby
causing substantially increased personal expenses to Coast Guard personnel,
especially in high cost areas. Reserve Health Care — FRA
is grateful to Congress for including in the FY 2005 National Defense
Authorization Act language allowing Reservists to continue receiving TRICARE
coverage for up to 180 days following separation from active duty. While the
new provision will aid many Reservists who experience a lapse in coverage
following demobilization, more needs to be done. Some Reservists have coverage
through private employers, others through the Federal government, and still
others have no coverage. Reserve families with employer-based health
insurance must, in some cases, pick up the full cost of premiums during an
extended activation. Although TRICARE "kicks in" at 30 days
activation, many Reserve families prefer continuity of care through doctors
and their own health insurance. Disenrollment from private sector coverage as
a consequence of extended activation adversely affects family morale and
military readiness and is a disincentive for Reservists to reenlist. FRA
recommends that Congress authorize legislation granting permanent authority
for cost-share access to TRICARE for all members of the Selected Reserve and
their families in order to ensure medical readiness and provide continuity of
health insurance coverage. Like their active duty
colleagues, many Reserve families live in locations where it is difficult or
impossible to find providers who will accept new TRICARE Standard patients.
In 2001, DoD recognized this problem and announced a policy change under
which DoD would pay the premiums for the Federal Employee Health Benefit
Program (FEHBP) for DoD Reservist-employees activated for extended periods.
Since the current program only benefits about ten percent of the Selected
Reserve Force, FRA urges expanding this program to include the authority for
federal payment of civilian health care premiums (up to the TRICARE limit)
for dependents of mobilized Coast Guard Reserve personnel. Housing Standards and Allowances FRA supports revised
housing standards that are more realistic and appropriate for each pay grade.
Many enlisted personnel are unaware of the standards for their respective pay
grade and assume they are entitled to a higher standard than authorized.
Enlisted members, for example, are not eligible to receive BAH for a
three-bedroom single-family detached house until achieving the rank of E-9 —
representing only one percent of the enlisted force — yet many personnel in
more junior pay grades do in fact reside in detached homes. As a minimum, the
BAH standard (single-family detached house) should be extended over several
years to qualifying service members beginning in grade E-8 and subsequently
to grade E-7 and below as resources allow. FRA is pleased that the
Administration’s FY 2006 budget request includes full funding for Coast Guard
military pay and benefits. The Coast Guard also continues to receive strong
support for benefit parity with DoD and is on par with DoD benefits including
requirements to collect Hazardous Duty Incentive Pay (HDIP). The Association
appreciates Congressional support for increased BAH rates for Coast Guard
personnel and enactment of a plan to eliminate average out of pocket housing
costs over several years. The President’s FY2006 budget includes funding to
support these improvements. BAH rates allow Coast Guard members and their
families to maximize housing choices in communities where adequate housing
exists, helping alleviate the need for government housing. That said, with a
large number of Coast Guard personnel stationed in high cost areas, the issue
of ensuring that average out of pocket costs housing expenses are eliminated
needs to be tracked closely. FRA also appreciates
enactment of Coast Guard Housing Authorities legislation, to improve
government housing. As a result of this legislation, the Coast Guard is
proactively exploring the Public Privatization Venture (PPV) program with the
hopes of replicating the successes DoD has experienced. It transferred 318
units in Permanent Change of Station (PCS) Reform Initiatives FRA commends Congress for
authorizing the Families First Program, which upon full implementation will
usher in much needed reforms to the Permanent Change of Station (PCS) process
including the full reimbursement of the cost of lost or damaged household
goods. The Association strongly supports full funding for the program in FY
2006. Dislocation Allowance —
Relocating on government orders is costly and throughout a military career,
service members undergo a number of permanent changes of station. Each move
usually requires additional expenses for relocating to a new area far removed
from the service members’ current location. Dislocation allowances
are authorized for military-ordered moves. To aid service members in
defraying these additional costs, Congress in 1955 adopted the payment of a
special allowance- termed "dislocation allowance" — to recognize
that duty station changes and resultant household relocations reflect
personnel management decisions of the armed forces and are not subject to the
control of individual members. Odd as it may appear,
service members preparing to retire from the Armed Services are not eligible
for dislocation allowances, yet many are subject to the same additional
expenses they experienced when effecting a permanent change of station during
the 20 or more years of active duty spent earning the honor to retire. In
either case, moving on orders to another duty station or to retire are both
reflective of a management decision. Retiring military personnel after
completing 20 years of service is advantageous to the Armed Services. It
opens the ranks to much younger and healthier accessions. FRA recommends amending
37 USC , §407, to authorize the payment of dislocation allowances to members
of the armed forces retiring or transferring to an inactive duty status who
perform a "final change of station" move of 50 or more miles, and urges
the Subcommittee to support such an amendment. Weight Allowances — FRA
also recommends modifying PCS household goods weight allowance tables for
personnel in pay grades E-7, E-8 and E-9 to coincide with allowances for
officers in grades 0-4, 0-5, and 0-6, respectively. These allowances were
recently increased for grades E-1 through E-4, but weight allowance increases
are also needed for service members in other grades, to more accurately
reflect the normal accumulation of household goods over the course of a career.
Shipment of Privately
Owned Vehicles — Expanding the number of privately owned vehicles a military
family can ship during a PCS from one to two for personnel assigned to Alaska
and Hawaii is another FRA supported initiative which falls into the category
of family readiness as well as PCS reform. This is an issue of particular
concern to Coast Guard personnel stationed in these locations as it is
becoming increasingly difficult to commute to the workplace of the now
common, two working adults, and would greatly benefit from the Subcommittee’s
support. Family Readiness It is often said that the
military recruits the service member, but retains a family. As our nation
asks its all-volunteer force, at least 50 percent of whom are married, to
deploy into harms way, family readiness has never been more important. FRA wholeheartedly
supports initiatives to enhance survivor benefits to include increasing the
death gratuity to $100,000 and the amount of Service members Group Life
Insurance (SGLI) coverage from $250,000 to $400,000 at no additional cost to
the service member. The Association also maintains that eligibility for death
benefit enhancements should include dependents of any service member who dies
in the line of duty regardless of whether or not the death was combat
related. Another effective method
of maintaining a high level of family readiness is through the effective and
consistent communication of existing programs and resources available to
active and Reserve personnel and their families. The increased use of Reserve
units to serve along side active duty components has caused considerable
challenges for certain individual Reservists. Not only has their mobilization
placed a strain on employment and income, but on the family as well. Benefits information,
spouse employment assistance, options for child care and guidance on
utilizing the TRICARE benefit are just a few issues that are constantly being
updated, creating a need for easily accessible and current information. DoD
services have worked to enhance the lines of communication via its Military
One Source web sites, and the Coast Guard provides family members with a
multitude of resources on its Availability and
Affordability of Child Care — The availability and accessibility of
affordable childcare is a very important quality of life issue for Coast
Guard personnel and their families. There are approximately 700 children in
Coast Guard childcare facilities and the program operates under the same
standards for care as that of DoD. High cost childcare can
often be attributed to the fact that most of the unit locations preclude
access to DoD and Coast Guard child development centers. As in the past, FRA
stresses the importance of adequately funding this important program. The Coast Guard continues
to explore ways to defer childcare costs to members in remote, high cost
areas. This includes exploring possible partnerships with GSA and private
industry. FRA strongly supports these initiatives and encourages timely
research and implementation for the benefit of personnel and their families. Education Benefits Increased funding for
personnel benefits in the President’s FY2006 budget will enable the Coast
Guard to adequately support its education programs, specifically the Tuition
Assistance Program. This enables the service to maintain parity with DoD.
Tuition Assistance is a high priority for the active and Reserve forces and
is a key element associated with successful recruiting initiatives.
Enhancements to this program and Montgomery GI Bill (MGIB) have significantly
impacted recruiting and retention efforts. FRA advocates the
creation of a benchmark for the MGIB so its benefits will keep pace with the
cost of an average four year college education. Even with the October 1, 2004
increases in basic rates, the MGIB only covers about 60 percent of current
tuition expenses. Coast Guard personnel are
among the 61,000 senior enlisted personnel who entered service during the
Veterans Education Assistance Program (VEAP) era (1977-1985), and have not
had the opportunity to sign up for the MGIB. FRA urges authorization of an
open enrollment period giving enlisted leaders the opportunity to sign up for
increased educational benefits provided by the GI Bill. The Montgomery GI Bill is
often characterized as a form of compensation or as a "recruiting
tool." However, FRA would argue that it would be more appropriate to
consider the benefit an investment in our nation’s future. Military personnel
can use the MGIB on active duty to aid in their professional development,
giving them the tools to become better leaders, mentors and representatives
of their respective service. Many veterans who leave the military and use the
GI bill to further their education have become more productive members of our
society. From the offensive backfield of the Denver Broncos to the halls of
Congress to several Fortune 500 Companies to small businesses in Main Street,
America, there are college graduates who used the MGIB stipend to help pay
for their education. These veterans pay taxes, returning more in revenue to
the Treasury than what they might have contributed without a degree. (Persons
with Bachelor Degrees earn 70 percent more on average than those with a high
school diploma.) Our nation has a
responsibility to ensure the MGIB investment remains a relevant supplement to
completing one’s education. We must give our veterans the tools to excel in
an academic environment. MGIB-SR — The Selected
Reserve MGIB has failed to maintain a creditable rate of benefits with those
authorized in Title 38, Chapter 30. Other than cost-of-living increases, only
two improvements in benefits have been approved since 1985. In that year MGIB
rates were established at 47% of active duty benefits. This past October 1,
the rate fell to 27% of the Chapter 30 benefits. While the allowance has
inched up by only 7% since its inception, the average cost of tuition at a
4-year university increased by 10.5 percent in the 2004-2005 school year
alone. FRA stands four square in
support of the Nation’s Reservists. To provide an incentive for young
citizens to enlist and remain in the Reserves, FRA recommends that Congress
enhance the MGIB-SR rates to the intended level for those who choose to
participate in the program. Academic Protection for
Reservists — There are cases where Reservists, attending higher institutions
of learning, called to active duty in the defense of the Nation and its
citizens, lose credits or pre-paid tuition costs because they did not
complete the course of instruction. FRA believes Congress should adopt
legislation requiring colleges and universities to retain and reactivate the
credits and prepaid costs for the Reservists upon demobilization. Other Reserve Initiatives Eliminate BAH II — To
ensure Reservists’ compensation reflects the duties our Nation has asked them
to perform, FRA recommends a policy change authorizing Reservists activated
30 days or more to become eligible for locality based Basic Allowance for
Housing (BAH). Current policy requires Reservists serving less than 140 days
to receive "BAH-II," which is generally a flat-rate amount based on
pay grade and marital status rather than the market-influenced,
geographically driven allowance that active duty personnel receive. Training and End Strengths FRA fully supports the
Coast Guard’s professional development enhancements including the placement
of a senior enlisted cadre within the U.S. Coast Guard Academy Corps of
Cadets for the purpose of providing an enlisted perspective, mentorship and
experienced physical guidance. Other initiatives include the successful
launch of an Enlisted Professional Military Education Program, increased
participation in the Coast Guard’s Leadership and The Coast Guard’s focus
on developing opportunities for, and encouraging participation in,
professional development is a clear indicator of the service’s commitment to
retaining quality personnel. Not only does it better prepare enlisted and
commissioned leaders for negotiating an oftentimes rigorous operations tempo,
but it helps the Coast Guard continue to define itself as an "employer
of choice" for prospective recruits. Recruiting and Retention FRA is pleased that the
President’s FY2006 budget fully supports all Coast Guard recruiting
initiatives and incentives. The Coast Guard exceeded its active duty
recruiting mission and the current retention rate within its enlisted
workforce is at impressive 89.6 percent. Increased visibility and a robust
recruiting system coupled with enlistment bonuses is enabling the Coast Guard
to maintain a steady flow of new recruits. The Coast Guard has also
opened new recruiting offices to target diversity rich communities. Increased
opportunities for advancement, improved sea pay and selected reenlistment
bonuses contributed to the aforementioned retention rates. Recent officer
continuation legislation as well as steadily increased promotion selection
opportunities for mid-grade officers has also helped contribute to a better
officer retention rate. The Coast Guard continues the always-difficult
recruiting challenge to meet the diversity and skill sets required to best
fill the future workforce. USSBP Reform With an average age of 68
on its membership roll, reform of the Uniformed Services Survivor Benefit
Plan (USSBP) remains a legislative priority for the Association. The FRA
commends Congress for passing legislation to eliminate the social security
offset, ending an unfair policy that adversely affected nearly 1.7 military
retirees and survivors alike, and views changing the effective date for
paid-up coverage from 2008 to 2005 as the next step in reforming the plan. There are three
compelling reasons to amend the Plan. One, the cost of participating in USSBP
has increased from 60% for the military retiree to more than 80% allowing the
Department of Defense to renege on its original charge to provide 40% of the
cost. Two, the USSBP was fashioned from the survivor program for retired
federal employees, yet the military retiree on the average will pay more for
participating in his or her Plan. Three, the military retiree on the average
will pay into the USSBP over a longer period than the federal retiree.
Although Congress has adopted a time for USSBP participants to halt payments
of premiums (when payments of premiums equal 30 years and the military
retiree is 70 years of age) the date is more than three years away. Military
retirees enrolling on the initial enrollment date (1972) will this September
be paying premiums for 33 years, by 2008, thirty-six years. FRA recommends
and urges Congress to restore the value of participating in the program by
adopting legislation to change the date 2008 to 2005. Exchange/MWR Programs The Coast Guard relies
heavily on vital non-pay compensation programs to provide for the health and
well-being of its personnel and their dependents, and to ensure good morale
as well as mission readiness. The Coast Guard’s Morale,
Welfare, and Recreation (MWR) program and the Coast Guard Exchange System
(CGES) provide important services to members and their families. Proceeds
from CGES sales generate funds for MWR programs including retail stores,
fitness centers, gymnasiums, libraries, and child development centers. All
indirectly support the Coast Guard’s mission while helping ease the
challenges and rigors of often demanding duty assignments. FRA is closely tracking
the development of DoD’s Unified Exchange Task Force’s proposal for shared
services among military exchanges, and asks that Congress provide appropriate
funding support for CGES and MWR programs to ensure the well-being and morale
of all Coast Guard personnel and their families. Conclusion Madame Chairman, FRA
appreciates the opportunity to submit its views for the record on pay, health
care and other programs important to Coast Guard personnel. The Association
salutes you and members of your distinguished Subcommittee for effective
oversight of our Nation’s all-important fifth Armed Service, and for your
untiring commitment to the men and women serving so proudly in our United
States Coast Guard. |