Senate Committee on Armed Services Completes Markup of the National Defense Authorization Act for FY2015

The bottom line of the mark-up includes:

• Includes the Department’s proposals concerning the pay raise (1 percent rather than the 1.8 percent under current law), the housing allowance (allowing the Department to increase BAH at a rate below inflation), and increased pharmacy copays for prescriptions filled outside of military treatment facilities.

• Does not include the Department’s proposals to establish enrollment fees for TRICARE for Life beneficiaries, the reorganization of the TRICARE program, or the cut to the commissary subsidy (although it does authorize the commissaries to purchase and sell generics).

• Expresses the view of the committee that inclusion of provisions proposed by the Department to slow the growth of personnel costs – proposals relating to the pay raise, housing allowance, and pharmacy – are undesirable but necessary to produce a defense budget that provides sufficient funding to address readiness and modernization deficits, authorizes a sufficiently sized and trained force to meet national defense objectives, and adheres to congressionally-mandated budget levels.

• Authorizes the payment of the Survivor Benefit Plan annuity to a special needs trust for the sole benefit of a disabled dependent child incapable of self-support because of mental or physical incapacity.

• Expresses the view of the committee that inclusion of provisions proposed by the Department to slow the growth of personnel costs – proposals relating to the pay raise, housing allowance, and pharmacy – are undesirable but necessary to produce a defense budget that provides sufficient funding to address readiness and modernization deficits, authorizes a sufficiently sized and trained force to meet national defense objectives, and adheres to congressionally-mandated budget levels.

• Authorizes $25 million in supplemental impact aid to local educational agencies with military dependent children and $5 million in impact aid for schools with military dependent children with severe disabilities.

• Reinstates the cap on retired pay of general and flag officers at the monthly equivalent of level II of the Executive Schedule, and ensures the equitable treatment of those officers serving on or after the date of enactment of this Act that would be affected by this change.

• Establishes a new defense agency with overall responsibility for the POW/MIA accounting community.

• Includes numerous provisions to enhance sexual assault prevention and response in the military.

• Grandfathers those who join the military prior to January 1, 2016, from the reduced annual cost of living adjustment applicable to military retired pay (CPI minus 1 percent). Current law grandfathers those who first join prior to January 1, 2014.