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Panel:Make Changes to Military Benefits01/29 06:37

   WASHINGTON (AP) -- U.S. officials say an independent commission is 
recommending broad changes to the military's retirement and health care systems 
that could save more than $20 billion over the next four years.

   But the proposals, which would allow some of the programs to operate more 
like existing federal employee systems, are likely to face an uphill battle 
from members of Congress who vigorously protect military benefits and have so 
far resisted change.

   According to officials familiar with the report, the panel is recommending 
that the military's TRICARE health care system largely be replaced, giving 
families the ability to choose from a wider menu of insurance plans, similar to 
those used by federal employees.

   The Military Compensation and Retirement Modernization Commission plans to 
unveil its report Thursday. Officials described the recommendations on 
condition of anonymity because they were not authorized to discuss them 
publicly before the report's release. Recognizing how difficult it is to make 
changes to the entrenched systems, in many cases the panel grandfathers in 
current service members, allowing them to keep existing programs.

   Under the proposed changes, service members would still get free health care 
and would go through military treatment facilities. Military family members and 
retirees would be able to choose from a variety of insurance plans and would 
receive an allowance to offset any premiums or co-payments required.

   Advocates for change have long argued that military families often have 
limited health care choices, particularly in more remote locations. And they 
say families could benefit from more choices as they seek out physicians and 

   Recommended changes to the retirement benefits would also mirror what has 
gone on in the federal government and private industry. Military members could 
continue to get their defined pension benefit, but they would also be allowed 
to enroll in a thrift savings plan, like a 401(k), that would include some 
matching contributions from the government.

   Officials said the change would allow troops to receive a least some 
retirement pay even if they don't stay on for 20 years, the minimum length of 
service required to receive a pension.

   While the retirement and health care proposals are just two of 15 major 
recommendations by the panel, they are sure to receive the most debate. 
Pentagon leaders have complained for years that the cost of military benefits 
has been growing exponentially and taking a larger bite out of the budget. The 
growth, they have said repeatedly, is not sustainable and changes will have to 
be made.

   Members of Congress, however, have been reluctant to do anything that 
appears to cut benefits or create new costs for troops, particularly as they 
have been fighting and dying in two long wars. Just last year, lawmakers 
opposed Pentagon proposals to trim military housing benefits and commissary 
subsidies and efforts to impose slight increases in out-of-pocket costs for 

   But as budget woes grow, some lawmakers may be more open to limited changes.

   On Wednesday, Sen. Lindsey Graham, R-S.C., told military leaders during a 
hearing of the Senate Armed Services Committee that "we need to look at 
reforming pay and benefits, be generous but sustainable."

   The three service chiefs agreed.

   "If we don't, regardless of sequestration, we would have to take significant 
cuts in our capacity," Gen. Raymond Odierno, chief of staff of the Army, told 

   Other panel recommendations touch on a number of benefits, ranging from 
child care and commissaries to education programs.

   The panel recommends merging the office and some management activities for 
base commissaries and exchanges that could bring some property savings over 
time. And it also recommends giving military leaders the authority to use 
funding to add child care facilities and staff where needed.

   The bulk of the cost savings over the next four years would come from the 
TRICARE changes, officials said.


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