Hot Issues

Fireman

This page contains information of interest on a variety of topics.  The purpose of the page is to highlight, for a short time, significant information.  After a period of time, the information is moved to the appropriate topic page, such a Money Matters, Health Matters, or one of the other pages.  Some information may also be moved to the U.S. Military Retirees Association Korea area, which contains sub-pages with general information of interest to Korea retirees.  If there are no current high-interest items, the page may be blank.

Medicare Part B Limitations for Korean Spouses and Widows
 2-21-04  In attempts to obtain Medicare Part B coverage for retiree spouses and widows living in Korea, the RAO has learned that Medicare Part B is only granted to U.S. citizens and to those who have resided in the U.S. for five years immediately prior to applying for the coverage.  Requests for Part B coverage have been denied for non-resident alien spouses and widows, including (most recently) a widow who lived in the U.S. for 11 years but who now lives in Korea.  The RAO does not have any specific information yet about the situation where a non-citizen spouse obtains Part B coverage after living in the U.S. for five years and then returns to Korea to live, but believes it likely that once a person qualifies for Medicare Part B, the eligibility is permanent.

What this means is that the only medical insurance available to retiree spouses and widows is the Korean medical insurance, but that insurance is not available to spouses who have the A-3 (SOFA) visa.  This situation has been confirmed by the Yongsan TRICARE office.  Civil service employees have the options of using the Federal Employees Health Benefits Program (FEHBP) insurance.  The other alternative is commercial international health insurance and the RAO has no recommendations for those who might want to consider this option.

Instead of trying to change the law defining Medicare Part B eligibility (thus affecting all non-resident aliens), a more logical solution would be to continue TRICARE Standard coverage beyond age 65 for those who cannot obtain TRICARE for Life because of Medicare Part B ineligibility.  This change would only affect DoD ID card holders eligible for military medical care.  However, this will require retirees and their supporters to make their case to the agencies and offices having the ability to make the modification to TRICARE Standard eligibility.  If you want it, you'll have to fight for it.

Intra-Theater Space Available for Retirees May Change in 2006
2-15-04  A number of retirees live in Korea on a Tourist (C-3) visa.  This requires them to leave Korea every 90 days because that is the maximum length of a stay in Korea with this visa.  Many retirees depend on the Patriot Express either to fly out themselves or to reduce the demand on other space available assets, particularly intra-theater flights.  With the elimination of Patriot Express flights from Korea in 2006, the demand for space available seats will increase for the remaining flights.  With retirees being the lowest priority for space available seats, those retirees who rely on space available flights to Japan may find that seats have become virtually non-existent.  It's not too early now for retirees with C-3 visas to start considering alternate plans for the day that space available seats may dry up for Category VI travel.

TRICARE Rule Change Does Not Affect Korea
1-29-04  DoD recently announced that TRICARE beneficiaries no longer need a non-availability statement from their TRICARE office before seeking civilian medical care.  This change does not affect retirees and their dependents in Korea.  According to the Yongsan TRICARE office, they must still be referred by their local TRICARE office in order to be sure of being reimbursed.  Of course, referrals are not required in bona fide emergency cases.

Concurrent Receipt Update
1-29-04  On Feb. 2, an estimated 150,000 military retirees will see an increase in their pay.  The National Defense Authorization Act, enacted in November 2003, significantly modified a long-standing law preventing retirees from receiving full retired pay if they also received disability pay from the Department of Veterans Affairs.

The new law allows concurrent receipt of military retired pay and VA disability pay for retirees with more than 20 years of service and a disability rating of 50 percent or greater.  This restored pay will be phased in over a 10-year period that began on Jan. 1, 2004.

Retirees are not required to take any action to receive the additional pay. The Defense Finance and Accounting Service has already identified eligible retirees and begun making adjustments to their military retired pay.

The first payments are due the first business day of February for the law change that was effective Jan. 1.  The additional funds will be paid on Feb. 2, 2004 based on entitlement for Jan. 1-31, 2004.  The restored pay is paid on the same schedule as current military retired pay.  Recurring payments will be made on the first business day of each month based on entitlement for the prior month.

For the majority of military retirees, the additional money is taxable income and subject to federal tax withholding.  

One category of military retirees that is eligible for additional funds but will not be paid on Feb. 2, 2004, are those who receive retired pay based on a disability percentage instead of years of service.  Further guidance is needed from the Department of Defense to determine how the law will be applied in these cases.  Once guidance is received, payments will be made retroactive to Jan. 1, 2004.  An estimated 2,800 military retirees fall into this category.  (DFAS News Release, Jan 27)

Department of Veterans Affairs (VA) Compensation Update for 2004
12-21-03  The VA provides compensation to veterans with a disability that is service-connected.  The disability may have occurred as a result of military service, or it might be a pre-existing condition that was worsened by military service.  In either case, the veterans must file a claim with the VA.  Upon receipt of the claim, the VA obtains and reviews the veteran's medical and service records to verify the validity of the claim.  If the disability or disabilities that the veteran is claiming are valid and are within the VA's compensable disabilities, the veteran receives a monthly disability benefit.  If the veteran is also eligible to received military retired pay as a result of years of service, the military retired pay may be partially offset dollar-for-dollar by the tax-free VA compensation.  See "The Road to Concurrent Receipt" item below for details on restoration of retired pay.

The disability compensation ranges from 0% (non-compensable disability) to 100% in ten percent increments.  Veterans who are rated at 30% or more may also receive additional compensation for dependents, and that can include spouse, children and parents.   The chart below shows the amount of compensation for different situations.   This information was obtained from the VA web site via the Internet at http://www.vba.va.gov/bln/21/Rates/comp01.htm.   Additional information and access to the full rate tables can be obtained there.

Dependent Status 100% 90% 80% 70% 60% 50% 40% 30% 20% 10%
Veteran alone $2,239 $1,344 $1,195 $1,029 $817 $646 $454 $316 $205 $106
Veteran and spouse 2,366 1,458 1,296 1,117 893 709 504 354    
Veteran with spouse and child2,458 1,541 1,370 1,182 948 755 541 381    
Veteran with child only 2,325 1,421 1,263 1,089 868 689 488 341    
Each addtl child under 18 65 58 53 45 39 32 26 19    
Each addtl schoolchild over 18 202 181 161 141 121 101 80 60    
Veteran with one parent 2,342 1,436 1,277 1,101 878 697 495 346    
Veteran with two parents 2,445 1,528 1,359 1,173 939 748 536 376    
Addtl aid/attendance for spouse 114 102 91 80 68 57 46 34    

Department of Veterans Affairs Survivor Compensation for 2004
 12-21-03  A widow whose husband's death was determined to be service-connected is eligible to receive the VA Dependency and Indemnity Compensation (DIC).  In 2004, the DIC is $967 per month.  If at the time of the veteran's death the veteran was in receipt of or entitled to disability compensation rated as totally disabling for a continuous period of eight years and the widow was married to the veteran for the same eight years, the widow is entitled to an additional $208 per month.  For each child under 18, an additional $241 per month is allowed.  If the widow is entitled to Aid & Attendance, this allowance is $241.  If the widow is housebound, a Housebound allowance of $115 per month is provided.  These rates apply to widows when the veteran's death occurred on or after Jan 1, 1993.  For information on rates prior to Jan 1, 1993, go to http://www.vba.va.gov/bln/21/Rates/comp03.htm.

Widows not eligible to receive DIC may be eligible for the Improved Death Pension of $552 per month (in 2004).  This allowance is subject to income limitations.  For more information about additional entitlements with this pension, go to http://www.vba.va.gov/bln/21/rates/pen02.htm.

Divorce and VA Disability Compensation
12-21-03   Military retirees who receive part of their retired pay as disability compensation from the Department of Veterans Affairs (VA) may find their pay threatened by divorce action.  A supreme court ruling noted that state courts only have jurisdiction on pay as permitted by the Uniformed Services Former Spouse Protection Act (USFSPA).  Disability benefits are specifically not divisible by the USFSPA.   Combat-Related Special Compensation is categorized as special pay resulting from disability and is treated the same as disability pay, i.e., it cannot be divided.  Concurrent Receipt is considered the same as retired pay and can be divided.

The Road to Concurrent Receipt
12-13-03  A scripted briefing on implementation of Concurrent Receipt (restoring retired pay that has been offset by disability pay) is available as an on-screen presentation or downloadable as a PowerPoint presentation (395KB PPT, right click to save).  A one-page handout comparing Combat-Related Special Compensation and the 10-year phase in of Concurrent Receipt is available in Adobe Acrobat format < (50KB PDF) or in Microsoft Word format (173KB DOC).

Medicare Part B Late Enrollment Penalty Waived
12-13-03 TRICARE for Life requires that military retirees be enrolled in Medicare Part B when they reach age 65.  Some over-65 retirees were subject to a late enrollment penalty (10% per year for each missed year) when they signed up for Medicare Part B to qualify for TRICARE for Life.  The new Medicare Prescription Bill removes the late enrollment penalty for those who signed up in 2001-2003.  Also, there is a one-year open enrollment period for over-65 military retirees to sign up for Medicare Part B without the late enrollment penalty.  The monthly cost for Part B in 2004 is $66.

As a reminder, to Korea retirees approaching age 65, you should apply for Medicare Part B about three months before your 65th birthday.  This will allow uninterrupted transition from TRICARE Standard to TRICARE for Life.  Contact the Osan AB Retiree Activities Office (DSN 784-1441, e-mail retact@osan.af.mil) or click on Applying for ... at the left for the application form and mailing address.

Retiree Activities Office at New Location
11-20-03  Due to continuing construction on Building 936, the Retiree Activities Office has temporarily relocated to Building 781.  See the attached PowerPoint map for details on how to find the RAO.

Legislators Announce Concurrent Receipt Deal
 10-18-03  House Majority Whip Roy Blunt (R-MO), Armed Services Committee Chairman Duncan Hunter (R-CA),Veterans Affairs Committee Chairman Chris Smith (R-NJ) and concurrent receipt champion Rep. Mike Bilirakis (R-FL) met with the Military Officers' Association of America (MOAA) and other military and veterans associations today to announce a final concurrent receipt agreement with Senate leaders and the White House.

The proposal will benefit as many as 200,000 disabled retirees in two ways:

  • First, all retirees with at least 20 years of service and VA disability ratings of 50% or higher will see their military retired pay offsets phased out over a ten-year period starting January 1, 2004.
  • Second, the recently enacted Combat Related Special Compensation (CRSC) will be expanded to include all combat- or operations-related disabilities from 10% to 100% ratings, also effective January 1, 2004. Currently, only those with qualifying disabilities rated 60% or higher or who have a disability associated with a Purple Heart are eligible.

In both cases, Guard and Reserve retirees with 20 qualifying years of service (including those with less than 7,200 retirement points) will be eligible.

CRSC payments are in the amount of the VA disability compensation paid for whatever percentage of the members disability rating is due to combat-related disabilities, as determined by the parent service. Retirees must apply to their parent service for CRSC payments, but there is no phase-in period for CRSC. DoD is discouraging all those not currently eligible for CRSC from applying until this provision is signed into law.

Disabled retirees rated 50% and higher who do not elect CRSC payments should start seeing their retired offset phased out automatically, starting January 1, 2004. No application is expected to be required. For 2004, qualifying retirees should see their retired pay increase by a flat amount, depending on disability, as follows:

$750 for 100% disabled;
$500 for 90%;
$350 for 80%;
$250 for 70%;
$125 for 60%; and
100 for 50%.

The remaining retired pay offsets would then be phased out over the following nine years. In 2005, they would get back another 10% of any remaining offset; in 2006, they would get back 20% of the remaining offset; in 2007, 30% of the remaining offset; and so on. By January 2014, disabled retirees with 50% and higher ratings will be entitled to full concurrent receipt of military retired pay and VA disability compensation.

Disabled retirees who qualify for both programs would have to choose one or the other. Because the CRSC program provides full payment immediately vs. the 10-year phase-in for concurrent receipt, legislators plan to allow an annual election option for CRSC-eligibles. This recognizes that a retiree who is 100% disabled, but only 60% of that is due to combat-related conditions, may find it advantageous to elect full CRSC payments for a few years until the concurrent receipt payment rises to a level that exceeds the CRSC payment. Because CRSC payments are tax-free and nondisability retired pay is not, this could also figure into qualifying retirees election decisions.

Designing specific procedures for retirees to make such elections is but one of the many administrative challenges the Defense Department will have to address in implementing the new authority.

The new agreement also calls for the formation of a special commission to review the VA disability system and recommend any needed changes. Of its 13 commissioners, at least seven will have to be highly decorated veterans. Four will be appointed by the House, four by the Senate, and five by the Pentagon and/or the VA.  (MOAA  Legislative Update, Oct 16)

MyPay Fraudulent Site
10-5-03 All personnel are warned to beware of a site called www.mypay.com.  This is a bogus site that is attempting to get you to enter personal information which could be used for identity theft.  The correct site for the Defense Finance and Accounting Service is via secure connection  to https://mypay.dfas.mil

Osan Main Gate Closed for Renovation
 9-21-03  The main gate of Osan AB at the Shinjang Shopping Mall will be closed to vehicle traffic starting Monday, September 22.  Pedestrians will continue as normal.  The renovation is expected to increase security and is scheduled for completion in seven months.  Drivers are requested to use the Doolittle Gate or the ROKAF AFOC Gate.

Retiree Mailing Ban to Be Lifted for Prescription Orders
4-21-03  Current DOD policy imposes a 16-ounce weight limit for first-class mail to and from military retirees residing in oversea areas served by the Military Postal Service Agency (MPSA) and in which Status of Forces Agreements (SOFA) permits their use.   In January 2003, NAUS initiated action with the Executive Director of the MPSA to lift the weight restriction.  Our action was in response to reports we received that often a 90-day supply of prescription medications mailed from DOD's Mail Order Pharmacy exceeded the weight limitation and were being returned to the mail order pharmacy contractor. Thereby, causing the situation of a DOD policy was denying some beneficiaries a major portion of their military health care benefit.  Joining the battle for lifting the weight restrictions were the Army and Navy Military Retiree Councils that were reported in last week's Update.

We are pleased to report, pending an official notification, DOD has approved the lifting of the weight limitation for pharmaceuticals shipped to retirees under the TRICARE Mail Order Pharmacy Program.   Obviously, we are pleased that soon, military medical beneficiaries will be able to get their DOD mail order prescription medications.  However, we are disappointed that getting DOD postal officials to agree to change a policy that had adverse health care implications required a major combined effort.
 (from the National Association of the Uniformed Services Update for April 18, 2003)