FW: FROM WASHINGTON: NEWS FOR THE ENLISTED

Forwarded from Comrade Walker.

Larry Tobey
Adjutant
Sunrise Mountain
DAV Chapter 13

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From: jazzhnd@cox.net
Sent: 2/2/2015 2:27:00 P.M. Pacific Standard Time
Subj: Fw: FROM WASHINGTON: NEWS FOR THE ENLISTED

Good info.

R. Walker

From Washington News for the Enlisted Monday February 2, 2015 The 114th session of Congress is now going at full speed. The next few months are going to be a very important time for all of you. We will do our best to keep you informed of all the ins and outs and proposals that could affect you and your families' lives. The Military Compensation Commission Releases Report … And the President's FY2016 is Released as Well Go to our website: trea.org for these stories + pictures not shown here. The Military Compensation Commission Releases Report Last Thursday the Military Compensation and Retirement Modernization Commission released its long-awaited report to Congress. The Commission established by the National Defense Authorization Act (NDAA) for FY 2013 to provide the President of the United States and the Congress specific recommendations to modernize pay and benefits of the Uniformed Services. Below we provide for you the 15 recommendations of the commission without comment. Later this week we will issue a special report with our analysis of the recommendations. At first glance we can say that there are some recommendations we agree with and some with disagree with. The Commission's recommendations will be sent to Congress where they have been eagerly awaited as Congress seeks to shape defense budgets for FY2016 and beyond that are subject to the mandatory cuts known as "sequester." However, we emphasize that these are only recommendations, not legislation. TREA will have the opportunity in the next few months to provide to Congress with our position on these recommendations and to lobby and fight to oppose those we disagree with. For reference, in this report "AC" refers to Active Component" and "RC" refers to "Reserve Component." Recommendation 1: Help more Service members save for retirement earlier in their careers, leverage the retention power of traditional Uniformed Services retirement, and give the Services greater flexibility to retain quality people in demanding career fields by implementing a modernized retirement system. Recommendations: The Uniformed Services should modernize the current retirement system by adding a DC element to the DB plan. The DC element should incorporate the following attributes: The DC element should reside entirely in TSP. The Uniformed Services should begin a monthly contribution of 1 percent of members' basic pay to Service members' respective TSP accounts upon their Service entry date. The contribution should continue until Service members reach 20 YOS and should not depend upon their participation in TSP. The Uniformed Services should automatically enroll Service member in TSP upon entry into service at an amount equal to 3 percent of their basic pay. Service members should be allowed to raise or lower their TSP contribution amount or to terminate their participation at any time. Service members who terminate their participation will be re-enrolled automatically the following January at the 3 percent of  basic pay amount. Service members must earn basic pay in a given pay period to make TSP contributions and to receive Government contributions into their TSP accounts. The Uniformed Services should begin matching each Service member'scontribution to TSP, up to a maximum of 5 percent of monthly basic pay, after the completion of each member's second year of service. The matching contribution will continue until the Service member reaches 20 YOS and is dependent upon a Service member's monthly participation in the TSP. Service members should be vested in their TSP after 2 complete YOS (the standard 1 percent contribution and matching contribution provided by the Uniformed Services will belong to the Service member upon that date). The Uniformed Services should provide continuation pay for all Servicemembers who reach 12 YOS and are willing and able to obligate for 4 additional years. All AC Service members should receive basic continuation pay equal to 2.5 times Service members' monthly basic pay. All RC Service members should receive basic continuation pay equal to 0.5 times Service members' monthly basic pay, as if he/she were an AC Service member. Uniformed Services should budget additional funds for continuation pay, in addition to basic continuation pay, to provide midcareer retention incentives as needed. Basic and additional continuation pay should be paid from an authority to be used only for the purpose of continuation pay. Continuation pay should be budgeted in a new budget line item. The Uniformed Services should compute AC Service members' retirement annuity using a 2 percent multiplier times YOS, times the retired pay base. For RC members, the same calculation should be used except YOS should be computed by dividing Reserve points by 360. Both AC and RC members should continue to be eligible for retirement after completing 20 YOS. The Uniformed Services should provide AC Service members the choice to receive their retirement annuity in various forms: a monthly payment beginning at their retirement date; a lump sum amount at  retirement, combined with a reduced monthly payment until eligibility for full social security payments, at which point the full monthly annuity would begin; or a (larger) lump sum payment with no monthly payment until eligibility for full social security payments, at which point  the full monthly annuity would begin. The Uniformed Services should provide RC Service members the choice to receive their retirement annuity in various forms: a lump  sum amount at retirement, combined with a reduced monthly payment until eligibility for full social security payments, at which point the full monthly annuity would begin; or a (larger) lump sum payment with no monthly payment until eligibility for full social security payments, at which point the full monthly annuity would begin. RC members should receive lump-sum payments upon their retirement from the RC, which will generally be before their retirement annuity begins at age 60. The Uniformed Services should allow any AC, RC, or retired member of the Uniformed Services who is grandfathered in the current retirement     system the opportunity to opt in to the new retirement system. The 75 percent cap on disability retirement when a Service member uses his or her disability rating as the multiplier should be lifted. The multiplier for disability retirement when a Service member uses his or her YOS as the multiplier should be 2.0 times YOS. The Secretary of Defense should be given the authority to modify the years of service requirements to qualify for retirement to either fewer or a greater than 20 years of service. The purpose of these modifications is to facilitate management actions to shape the personnel profile or correct manpower shortfalls within an occupational specialty or other grouping of members, as defined by the Secretary. No modification should involuntarily impose retirement program changes on currently serving members. DoD should provide notice to the Congress regarding any proposed modification of the retirement system and be prohibited from implementing a retirement system modification unless a period of one year has elapsed following the day the Congress was provided notice of the proposed modification. Recommendation 2: Provide more options for Service members to protect their pay for their survivors by offering new Survivor Benefit Plan coverage without Dependency and Indemnity Compensation offset. Recommendations: The existing SBP program should be maintained for Service members who want to elect subsidized coverage that would remain subject to the SBP–DIC offset. A new SBP program should be implemented for which Service members would fully fund SBP costs, but would no longer be subject to offset by DIC payments. With unsubsidized coverage, Service members' retired pay should be reduced by the full cost of the benefit as determined annually by DoD Office of the Actuary. As an example, based on FY 2013 data, the amount would be 11.25 percent of the base amount elected. The base amount should not exceed 100 percent of the member's retired pay consistent with existing statute. Survivors of the Service members who select unsubsidized coverage would receive full SBP and DIC payments without offset. Although this option has a greater out-of-pocket cost to the Service member, it provides a greater overall benefit. The Services should provide retiring Service members and their spouses with an individualized, detailed analysis of the costs and benefits of the alternative SBP options, including potential costs and income from the current and new SBP programs. Those currently participating in SBP should be provided a one-time opportunity during the SBP open period to opt in to the new program. Recommendation 3: Promote Service members' financial literacy by implementing a more robust financial and health benefit training program. Recommendations: DoD should increase the frequency and strengthen the content of financial literacy training. At a minimum, training and counseling should be provided during initial training, upon arrival at the first duty station (upon arrival at each duty station for E4/O3 and below), at the vesting point for the TSP program, on dates of promotion (up to pay grades E5 and O4), for major life events (e.g., marriage, divorce, birth of first child, disabling sickness or condition), during leadership and pre- and post-deployment training, at transition points (e.g., AC to RC, separation, and retirement), and upon request of the individual. DoD should enhance the content of financial literacy training. One-time training should be offered to educate the entire force on implications of this Commission's recommendations. Also, training on health care insurance options and other recommendations from this Commission should be added to existing curriculum. DoD should hire professional training firms to provide financial literacy training. DoD should consider if these professional trainers should be certified financial advisors. Outsourcing training requirements may require additional funding, but would ensure this critical topic is not assigned as a secondary responsibility. Improving financial literacy would also reduce long-term personnel costs, which could defray additional training costs. Messaging from the Secretary of Defense; Deputy Secretary of Defense;Chairman, Joints Chiefs of Staff; and Service Chiefs should reinforce the importance of financial literacy from both readiness and quality of life perspectives, and emphasize the popularity of similar programs in other countries. The Deputy Secretary of Defense should also be assigned responsibility for ensuring financial literacy training in his or her role as DoD's Chief Management Officer. For example, the Australian Defense Force created a similar literacy program in 2006, and 95 percent of participants indicated the sessions they attended met their needs.168 Support and messaging from senior leaders was instrumental in the success of the Australian financial literacy program. DoD should require Defense Manpower Data Center (DMDC) to survey the force on the status of financial literacy and preparedness and use the results as a benchmark from which to evaluate and update the training and education as needed. Results of the initial survey and follow-on surveys should be provided to the Congress. DoD should strengthen partnerships with other federal and nonprofit organizations (e.g., President's Advisory Council on Financial Capability for Young Americans, the Financial Literacy Education Council, and individual Service emergency relief organizations). DoD should provide an online budget planner with archival history capability for each Service member. As changes in pay occur (e.g., promotion, arrival at duty station with different BAH rate, dependent status), the budget planner should update automatically and prompt the Service member to complete it. The Leave and Earnings Statement (LES) should be restructured to reflect changes to compensation made as a result of this Commissions' recommendations, to include TSP balances (current value and projected value at 20-year point), and also to provide a more accurate accounting by displaying the value of benefits paid by the Government for the Service member (similar to a Federal civilian employee's LES). Recommendation 4: Increase efficiency within the Reserve Component by consolidating 30 Reserve Component duty statuses into 6 broader statuses. Recommendations: The Congress should replace the 30 current Reserve Component duty statuses with six broader statuses (see Table 4). This new RC status structure should principally focus on Active Duty, Inactive Duty, and full-time National Guard Duty as the three primary statuses. The Congress should stipulate that, in this new system, orders should be issued only when an authority changes. When a duty status, purpose, or funding source changes, orders need only be amended, accordingly. This change would allow uninterrupted RC service. Recommendation 5: Ensure Service members receive the best possible combat casualty care by creating a joint readiness command, new standards for essential medical capabilities, and innovative tools to attract readiness-related medical cases to military hospitals. Recommendations: The Secretary of Defense, together with the Chairman of the Joint Chiefs of Staff, should seek to improve the oversight of joint medical readiness through the creation of newly established Joint Readiness Command led by a four-star general/flag officer, as well as transitioning the Joint Force Surgeon (J4) office to the J10 Medical Readiness Directorate in the Joint Staff. The JRC should be a functional unified command led by a four-star military officer with broad responsibilities for readiness across DoD. Much of the required structure for this new command can be harvested from the Joint Staff which has grown in recent years to provide oversight of many of the functions that would be the responsibility of this new command. The JRC should include a subordinate joint medical function whose primary responsibilities include advising the JRC commander on the readiness status of the medical force, determining joint medical doctrine and requirements,305 and advising joint sourcing of medical assets with Joint Staff J3 and J10. The J10 Medical Readiness Directorate should be led by a three-star military medical officer whose primary responsibilities include advising the Chairman of the Joint Chiefs of Staff on medical readiness issues, advising the Joint Requirements Oversight Council, validating joint medical readiness requirements, chairing the JMROC, and participating in the PPBE process. The Congress should establish the statutory requirement for DoD to maintain EMCs to promote and maintain certain medical capabilities within the military. Figure 12 shows components of EMCs, and Table 6 outlines roles and responsibilities regarding EMCs. EMCs should be defined as a limited number of critical medical capabilities that must be retained within the military for national security purposes. These capabilities are vital to effective and timely health care during contingency operations. EMCs should include clinical and logistics capabilities necessary to accomplish operational requirements such as combat casualty care; medical response to and treatment of injuries sustained from chemical, biological, radiological, nuclear, and explosives incidents; diagnosis and treatment of infectious diseases; aerospace medicine; and undersea medicine. EMCs also include a limited number of SMCs not primarily performed in theater but commonly associated with military operations (e.g., therapy for post-traumatic stress disorder).306 EMCs should not include medical missions or specialties not commonly associated with operational military medicine or SMCs. The Congress should require the Secretary of Defense and GAO to report annually on EMCs and their associated readiness metrics. The Secretary of Defense should approve the capabilities designated as EMCs and establish policies to maintain them, including standards for the mix and volume of medical cases based on widely accepted metrics of the medical profession and the unique readiness requirements of the military. The JRC should measure adherence to the Secretary's EMC policies and standards using information pertaining to personnel, training, and MTFs provided by the Services. The JRC should participate in the PPBE process to advise on appropriate funding levels for military medical readiness and the allocation of such funds to best maintain EMCs. Upon identifying a shortfall in maintaining EMC standards, the JRC should recommend employing the following tools based on local market conditions, some of which relate to the commercial insurance benefit described in Recommendation 6: Adjustments to procedure prices for EMC-related cases that MTFs charge to insurance carriers. Adjustments to beneficiary copayments to incentivize use of the MTFs. The JRC should coordinate with the DHA on DoD's annual recommendations to the Office of Personnel Management (OPM) and the insurance carriers, as required with implementation of Recommendation 6 of this report. Authority to allow veterans and civilians with cases that are needed for EMC skill maintenance to be treated in MTFs.307 Permanent Change of Station assignments of the medical force to civilian hospitals or VA facilities to offer alternative venues for skill maintenance. The Services should develop the means for adhering to EMC policies and clinical skill maintenance standards. The Services should closely manage the preservation of core skills that are directly required for each EMC approved by the Secretary of Defense. The Services should carefully regulate the manning requirements and personnel fill rates, by medical specialty that directly fulfills each EMC. Services should not substitute medical specialties required for EMCs. The Services should submit to the JRC a description of these core skills and the actions taken to achieve the Secretary's skill maintenance standards. The Services should submit to the JRC these medical personnel requirements and fill rates. The Congress should adjust the flow of funding to better align DoD medical programs with their purpose and operations. - Funding for active-duty family, retiree, and Reserve Component health care should be contained in Services' Military Personnel (MILPERS) budget accounts. - The MERHCF should be expanded to cover the health care and pharmacy programs for non-Medicare-eligible retirees. Non-Medicare-eligible retiree health care should be accrual funded, similar to how Medicare-eligible retiree health care is today. - To finance the new health care program for active-duty families, RC members and families, and non-Medicare-eligible retirees (see Recommendation 6), funds should be transferred as follows: For active-duty families and RC members and families, funds should be transferred from the MILPERS accounts to the Employee Health Benefits Fund managed by OPM. For non-Medicare-eligible retirees, funds should be transferred from the MERHCF to the Employee Health Benefits Fund managed by OPM. - To finance the existing pharmacy and dental programs for families and RC members and families and pharmacy, dental, and health care for active-duty Service members, a new trust fund should be created and managed by DoD for health care expenditures appropriated in the current year. - The MTFs should be funded through a revolving fund using the reimbursements they receive for care delivered. - In the case of MTF operations that are deemed required for EMC skill maintenance, costs that exceed the revenue generated from the delivery of care should be paid by the Services' Operations and Maintenance (O&M) accounts. This amount would be a necessary cost of readiness of the medical force. - The Congress should eliminate the Defense Health Program budget account because health care should be funded from MILPERS accounts for transfer to the trust funds referenced above and readiness costs should be resourced from Services' O&M accounts. Catchment areas around MTFs should be rescinded, allowing MTFs to attract cases unrestricted by geographic vicinity. Recommendation 6: Increase access, choice, and value of health care for active-duty family members, Reserve Component members, and retirees by allowing beneficiaries to choose from a selection of commercial insurance plans offered through a Department of Defense health benefit program. Recommendations: Active-duty Service members, for reasons related to operational readiness, should continue to receive their health care through their units or the direct care system (MTFs). As is the case today, some specialist care will be attained in the private sector. When active-duty Service members are referred to the private sector for care, they should have access to an unlimited network of providers at no cost to the Service member. For AC families, RC members, retirees not eligible for Medicare, and their families, survivors, and certain former spouses, the Congress should establish a new health care program that offers beneficiaries a selection of commercial insurance plans to replace TRICARE. This new health benefit should: Offer an array of health plan options that vary in type (e.g., preferred provider organizations and health maintenance organization), coveredbenefits, and price. Offer a selection of plans that broadly represents what is available in the commercial market without unnecessary restrictions, meets or exceeds a baseline of health plan quality, and continuously advances with the health care industry. Present several choices in any geographic region. Include dental and vision coverage. The TRICARE Dental Program and the TRICARE Retiree Dental Program should remain in place. Additionally, the new health care program should contain some health plans that include partial dental coverage.487 Beneficiaries also should have access to standalone vision plans under the new health care program, which they currently do not have under TRICARE. Allow beneficiaries to continue to have access to MTFs as a venue of care. Insurance companies should include MTFs in their networks and reimburse MTFs for the care delivered as they do any other provider. Allow beneficiaries to change plans during the annual open season or at a life-changing event such as a permanent change of duty station. Ensure insurance plans include catastrophic caps to alleviate large, unplanned health bills. Active-duty Service members should receive BAHC, a nontaxable allowance, to offset health care cost shares for their family members. BAHC should be based on the costs of average plans available in the family's location. DoD should use BAHC to transfer directly to the insurance carrier the premium for the plan the family has selected. The remainder of the BAHC should be available for the family members to pay copayments, deductibles, and coinsurance. DoD should make available to active-duty families an account for the accumulation and future use of unused BAHC. BAHC should be set at a level that sufficiently offsets or completely covers costs, or even affords families a surplus each month after costs are paid. Families should be able to use their BAHC to purchase health care through a spouse's employer if desired. When AC families struggle with a high-cost chronic condition or a catastrophic event or illness, there should be a DoD program available to assist them with medical expenses until they reach their health plan's catastrophic caps and are no longer required to pay OOP costs. Active-duty families should apply to this program for additional funding to cover copayments that substantially exceed their BAHC. An annual total of $50 million should be budgeted for this catastrophic and chronic condition assistance. All RC members should be able to purchase a plan from the DoD program at varying cost shares. Members of the Selected Reserve should have a reduced cost share of 25 percent to encourage RC health and dental readiness and streamline mobilization of RC personnel. Other RC members new to the benefit should have higher cost shares corresponding to their category of service. When mobilized, RC members should receive active-duty health care. Under this new benefit, RC members with families should receive the BAHC and either selects a plan from DoD's program or remains on their current (civilian) plan and applies the BAHC to those costs. Medicare-eligible retirees should continue to receive health care to supplement Medicare benefits consistent with TRICARE for Life. The cost contribution for non-Medicare-eligible retirees should gradually increase over many years, but remain lower than the average civilian employee cost share as recognition of military members' service. To ensure affected Service members and beneficiaries can navigate the new insurance program with ease, DoD should institute a program of education and benefits counseling (see Recommendation 3). The proposed health care program should be administered by OPM in a way that incorporates the experience and knowledge of both the DoD and OPM to achieve the best health care benefit possible, with the greatest amount of flexibility and industry innovation, and in the most efficient manner available. DoD should develop and provide to OPM recommendations on the unique needs of the eligible Uniform Services beneficiary population. DoD should also make recommendations to OPM on matters involving MTFs, namely the inclusion of MTFs in carriers' networks, copayments levels at MTFs, and adjustments to procedure reimbursement rates for EMC-related care delivered in MTFs. Details of the benefit, as well as contract negotiations, should be the responsibility of OPM. DoD should not exclude from the program any benefits that OPM determines are commonly available in FEHBP. DoD should retain the budget authority for the health care provided to AC dependents, members of the RC, and non-Medicare-eligible retirees and transfer funds to OPM for insurance operations, as it does today for DoD civilian employees. The Congress should leverage OPM's experience in administering similar health care programs to manage the routine business operations of the program, such as the contracts with and distribution of funds to insurance carriers. This arrangement should include managing annual "evergreen" contracts, performing a strict evaluation of financial solvency of carriers, transmitting annual call letters to carriers, reviewing potential plans against DoD requirements, and managing the trust fund and its associated payments. All health care programs should be financed through trust funds. To finance the new health care program for active-duty families, RC members and families, non-Medicare eligible retirees, and all other eligible beneficiaries, the Departments of Defense, Homeland Security, Commerce, and Health and Human Services should transfer funding to the Employee Health Benefits Fund managed by OPM. OPM should keep the funding for FEHBP and the new health care program segregated in the trust fund. The Medicare-Eligible Retiree Health Care Fund (MERHCF) should be expanded to cover the health care and pharmacy programs for non-Medicare eligible retirees. The health care for non-Medicare eligible retirees should be accrual funded, similar to how Medicare-eligible retiree health care is today. A portion of the outlays from the MERHCF should be paid to the OPM Employee Health Benefits Fund to purchase insurance plans for non-Medicare eligible retirees. To finance the existing pharmacy and dental programs for active-duty families and RC members and families and pharmacy, dental, and health care for active-duty Service members, a new trust fund should be created and managed by DoD for health care expenditures appropriated in the current year. Catchment areas around MTFs, an element of TRICARE Prime today, should be rescinded, allowing MTFs to attract cases unrestricted by geographic vicinity. Recommendation 7: Improve support for Service members' dependents with special needs by aligning services offered under the Extended Care Health Option to those of state Medicaid waiver programs. Recommendations: Services covered through ECHO should be increased to more closely align with state Medicaid waiver programs, to include allowing for consumer-directed care.532 Expanded services should be subject to the ECHO benefit cap of $36,000 per fiscal year, per dependent. Specific examples include, but are not limited to: expanding respite care hours to align more closely with state offerings as well as allowing families to access those hours without receiving another ECHO benefit during the same month the respite care is received providing custodial care providing adult diapers where necessary and appropriate Recommendation 8: Improve collaboration between the Departments of Defense and Veterans Affairs by enforcing coordination on electronic medical records, a uniform formulary for transitioning Service members, common services, and reimbursements. Recommendations: The JEC should be granted additional authorities and responsibilities to standardize and enforce collaboration between DoD and VA, including: Defining common services that will regularly be jointly conducted throughout DoD and VA health care systems. Creating standard terms for RSAs on common services that can quickly and efficiently be implemented by local commanders. Monitoring planned expenditures for common services by both DoD and VA, comparing these expenditures to the JEC's strategic plan, and certifying whether the planned expenditures are consistent with that strategic plan. Approving in advance any new capital assets acquisition, or sustainment, restoration, and modernization of capital assets, of either DoD or VA medical components. Reporting quarterly to the Congress on DoD and VA expenditures, their consistency with the JEC's strategic plan, and reasons for any inconsistent expenditures. Overseeing EHR compliance with the Office of the National Coordinator for Health Information Technology standards across both DoD and VA, ensuring health care data can be quickly and easily shared between the departments. Ensuring that the DoD and VA immediately begin the process of establishing a health care record within the VA EHR system for all current military Service members. The VA should also immediately begin the process of establishing a health care record within the VA EHR system for all military service members who complete Service-specific enlisted and officer accession programs. Monitoring and reporting on the percentage of the military force that is represented with a health care record in both DoD and VA EHR systems. Creating a uniform formulary to include all the drugs identified as critical for transition by the JEC beginning immediately with the pain and psychiatric classes of drugs. The JEC should determine classes of drugs critical to ensuring seamless and smooth transition of Service members from the Military Health System to VA Health System. The JEC should review its list of critical drug classes periodically and as the need arises. The JEC must mandate, oversee, and report to the Congress on employment of all joint procurement options, for example joint contracts and prime vendor contracts, to maximize cost savings for the strategic uniform formulary. Establishing a standard reimbursement methodology for DoD and VA provision of services to each other. Reimbursements should be real time and automated to the extent possible. The JEC should establish policies under which DoD and VA do not consider reimbursement rates when determining where to send patients, because the reimbursement rates represent only transfer prices within the Federal Government. Recommendation 9: Protect both access to and savings at Department of Defense commissaries and exchanges by consolidating these activities into a single defense resale organization. Recommendations: A single organization should be established that consolidates DoD's commissaries and three exchange systems into a single defense resale system, herein referred to as the Defense Resale Activity (DeRA) A DeRA Executive Director should be appointed who reports to a consolidated and simplified BOD. The BOD should replace the boards that currently oversee each of the separate exchange systems and DeCA. The consolidated DeRA BOD should also assume the responsibilities of the Executive Resale Board and the Cooperative Efforts Board and should incorporate expertise from private-sector retail. Supporting committees should be established and empowered as needed. A DeRA executive team, along with operational advisors from the current organizations, should immediately be established to define the key attributes of the new organization and plan the transition. This discussion should include a consideration of the recommendations made in this Report and in other consolidation studies. Creation of a single organization should facilitate consolidation of many back-end operation and support functions, alignment of incentives and policies across commissaries and exchanges, as well as consistent implementation of best practices for aligning with the needs of Service members and the Military Services. Core commissary and exchange benefits should be maintained at military installations around the world by continuing the sale of groceries and essential items at cost (plus a surcharge) and other merchandise at a discount. Under the combined organization, some or all commissary staff could be converted from APF to non-appropriated funds (NAF) employees to reduce commissary employee costs. The branding of the current exchange systems and commissaries initially should be retained. A director for each of these branded exchange systems and the commissaries should be appointed under the DeRA Executive Director. These directors should oversee operation of these systems as needed to represent the unique needs of each military service. Personnel evaluations for these executives should be cosigned by the DeRA executive director and appropriate Service representatives. Branding and organizational structure can be modified over time by the BOD. DeRA should assume responsibility for the operation of exchanges but not the other organizations currently managed by NEXCOM and MCCS. If approved by the BOD, the current points of integration and shared resources can be maintained through liaison positions and formal memoranda of agreement. For example, if it is mutually advantageous to share support staff between DeRA and Marine Corps MWR, options are available to continue the arrangement that currently exists with the MCX. A portion of Military Service MWR programs should continue to be funded from DeRA profits. The BOD should approve the amount of net revenue to be contributed as MWR dividends and should ensure an equitable distribution among the Military Services. Laws and policies should be updated to reflect this consolidated structure and allow greater flexibility related to how products are sourced, where they are sold, and how they are priced, as noted below: Allow the sale of convenience items in commissaries at a profit, including products and services typically found in commercial grocers. Food and other essential items should continue to be sold at cost when sold in commissaries or combined commissary and exchange stores (excluding convenience stores). This expanded commissary product line would include beer and wine, but those sales must align with DoD's efforts to deglamorize alcohol and reduce its abuse. Allow for the payment of second destination transportation costs with NAF. Allow significant flexibility on local sourcing overseas, particularly when it is beneficial to the Service member. Allow more flexibility in the creation of combined stores, as currently controlled by Section 2488 of Title 10 of the U.S. Code. Allow the use of the commissary 5 percent surcharge for similar expenses in the exchanges. Conversely, allow the use of exchange profits to cover commissary costs currently covered by the surcharge. Adjust policies on the sale of "brand name" groceries in commissaries to better accommodate the sale of private-label products. Recommendation 10: Improve access to child care on military installations by ensuring the Department of Defense has the information and budgeting tools to provide child care within 90 days of need. Recommendations: DoD should immediately establish mandatory, standardized monitoring and reporting of child care wait times, disaggregated by age groups, across all types of military child care. This reporting is needed to evaluate performance against the DoD goal of providing care within 90 days of need. DoD should implement the changes contained in the proposed rule for Background Checks on Individuals in DoD Child Care Services Programs, published in the Federal Register on October 1, 2014. The Secretary should direct that APF and NAF child direct care and professional staff are exempt from future departmental hiring freezes and furloughs. DoD should revise child and youth direct care staff position descriptions for staff in CC-2 through CC-5 positions to more accurately describe the requirements and responsibilities of these positions. The Congress should reestablish the authority to use operating funds for minor construction projects when creating new, expanding, or modifying CDP facilities serving children from birth to 12 years of age with an emphasis on adding spaces for children age's birth to 3. This authority should allow projects up to $15 million. This proposal has no direct effect on APF as this legislation only grants the associated authority. A budgetary impact would only occur if the Military Services chose to fund construction projects under this Recommendation 11: Safeguard education benefits for Service members by reducing redundancy and ensuring the fiscal sustainability of education programs. Recommendations: MGIB-AD should be sunset on October 1, 2015. REAP should be sunset restricting any further enrollment and allowing those currently pursuing an education program with REAP to complete their studies. Service members who switch to the Post-9/11 GI Bill should receive a full or partial refund of the $1,200 they paid to become eligible for MGIB benefits. The refund should be proportional to the amount of the Post-9/11 GI Bill benefit used. Eligibility requirements for transferring Post-9/11 GI Bill benefits should be increased to 10 YOS plus an additional commitment of 2 YOS. This change strengthens transferability as a true retention tool and aligns transferability eligibility to the Commission's Recommendation on retirement. The housing stipend for dependents should be sunset on July 1, 2017. Eligibility for unemployment compensation should be eliminated for anyone receiving housing stipend benefits under the Post-9/11 GI Bill. DoD should track the education levels of Service members leaving the Service, as well as the education levels of Service members who transfer their Post-9/11 GI Bill to their dependents. The VA should collect information related to, but not limited to, graduation rates, course competition rates, course dropout rates, course failure rates, certificates and degrees being pursued, and employment rates after graduation, and include that information in an annual report to the Congress. Educational institutions should be required to provide non-personally identifiable information on students who receive Post-9/11 GI Bill and TA benefits, when requested by DoD or VA. Recommendation 12: Better prepare Service members for transition to civilian life by expanding education and granting states more flexibility to administer the Jobs for Veterans State Grants Program. Recommendations: DoD should require mandatory participation in the Transition GPS education track for those planning to attend school after separation or those who have transferred their Post-9/11 GI Bill benefits. This track is currently an optional portion of the program. DoD should ensure these classes provide vital information regarding education benefits for Service members during the education track such as information regarding types of institutions of higher learning, tuition and fees, admission requirements, accreditation, transferability of credits, credit for qualifying military training, time required to complete a degree, and retention and job placement rates; information that addresses important questions that veterans should consider when choosing an institution of higher learning; and information about the Postsecondary Education Complaint System.920 The Congress should require DoD, VA, and DOL to review and report on the core curriculum for Transition GPS to reevaluate if the current curriculum most accurately addresses the needs of transitioning Service members. This report should include review of the current curriculum; the roles and responsibilities of each Department and whether they are adequately aligned; and the distribution of time between the three departments in the core curriculum and whether it is adequate to provide all information regarding important benefits that can assist transitioning Service members. This review should indicate whether any of the information in the three optional tracks should be addressed instead in mandatory tracks. It should also include a standard implementation plan of long-term outcome measures for a comprehensive system of metrics. This review should identify any areas of concern regarding the program and recommendations for addressing those concerns. The Congress should amend the relevant statutes to permit state departments of labor or their equivalent agencies to work directly with state Veterans Affairs directors or offices to coordinate implementation of the JVSG program. The Congress should encourage One-Stop Career Centers to have employees attend Transition GPS classes, to ensure personal connections between veterans and One-Stop Career Centers. The Congress should require DOL to track when and where its employees attend Transition GPS classes, and the number of veterans they interact with and follow up with after separation. This information should be included in DOL's annual report to the Congress. DOL should require One-Stop Career Centers to track the number of job fairs their employees participate in and the number of veterans they connect with at each job fair. This information should be included in each state's annual report to the DOL, and provided to the Congress. The Congress should require a one-time joint report from DoD, VA, and DOL to the Senate and House Committees on Armed Services and Veterans' Affairs regarding the challenges employers face when seeking to hire veterans. The report should identify the barriers employers face gaining information identifying veterans seeking jobs. It should also include recommendations addressing barriers for employers and improving information sharing between Federal agencies that serve veterans and separating Service members, so they may more easily connect employers and veterans. The report should also review the Transition GPS career preparation core curriculum and recommend any improvements that can be made to better prepare Service members trying to obtain private-sector employment. Recommendation 13: Ensure Service members receive financial assistance to cover nutritional needs by providing them cost-effective supplemental benefits. Recommendations: The FSSA program should be retained for Service members in overseas locations where no SNAP assistance is available. The FSSA program should be sunset in the United States, Puerto Rico, Guam, and other U.S. territories where SNAP or similar programs exist, thereby reducing the administrative costs of a duplicative program. Based on the unavailability of data on Service member households using SNAP, states and counties should provide this data to DoD on a regular basis. DoD should analyze the data to determine if there are systemic issues related to location or pay that should be rectified to provide for adequate nutrition for Service member households. Recommendation 14: Expand Space-Available travel to more dependents of Service members by allowing travel by dependents of Service members deployed for 30 days or more. Recommendations: DoD should allow unaccompanied dependents of Service members deployed for 30 days or more to use Space-A travel, under priority category IV. Recommendation 15: Measure how the challenges of military life affect children's school work by implementing a national military dependent student identifier. Recommendations: A national military dependent student identifier should be implemented by requiring school data systems and processes that serve as sources for ESEA reporting to identify students who have parents or guardians who are active duty members of the Uniformed Services. This identifier would enable consistent reporting on the attendance and academic performance of military dependent students across the United States, a capability that is not available today. This identifier should create a report-only subgroup in ESEA data sets and should also identify the branch(es) of the Uniformed Services for the active-duty parent(s) or guardian(s) of the military dependent student. … And the President's FY2016 is Released as Well Today we are going to see the President's proposed budget. Unless there are startling surprises from what the White House been talking about and the leaks we have been hearing the DoD budget is expected to look a great deal like the Administration's proposed budget for last year. The major difference is that this year the proposed budget proposes to break the sequestration caps. According to POLITICO the Pentagon's budget proposes to: Will consist of $534.3 billion for the base budget and $50.9 billion for the supplemental Overseas Contingency Operations account to fund the war in Afghanistan and other counterterrorism operations. Making the base line a $38 billion from last year's budget. But that will only occurs if Congress agrees to have a deal to end (or at least postpone) sequestration. (The sticking point here will surely be the approx $38 billion increase that is also proposed for domestic programs.) Includes a request of $209.8 billion in operations and maintenance funding in the base budget, "an increase of $14.5 billion from this fiscal year. The proposal would also boost procurement spending by $14.1 billion to $107.7 billion and research and development funding by $6.3 billion to $69.8 billion" The request includes three new Littoral Combat Ships as part of an $11.6 billion nine-ship procurement package that will also fund two Virginia-class attack submarines, according to the highlights. There's also $55 million for LCS capabilities improvements. And asks for $678 million for "refueling "the air craft carrier USS George Washington as included last year by Congress. While all of this is being proposed it is reported that the Administration will once again propose saving money by requiring TRICARE beneficiaries to pay more in fees; cutting the BHA and dramatically cutting commissaries support. This week we will learn much more about the Administration's proposals concerning DoD and the VA and will send them on to you

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