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Pension cuts to get reassessed

– A cut to military retirement pay in the budget signed Thursday by President Barack Obama has already triggered such a backlash that Congress might vote in January to toss it out.

Some lawmakers who represent districts with a military presence – and who voted for the overall budget – are vowing to overturn the pension change as soon as the House and the Senate reconvene Friday.

Several House and Senate lawmakers in both parties, responding to heavy lobbying from advocates for service members and veterans, already have introduced bills that would restore full cost-of-living increases for military retirees of working age.

Reps. Rodney Davis, R-Ill., and Michael Fitzpatrick, R-Pa., have introduced a bill that would restore the annual cost-of-living adjustment for about 800,000 enlisted troops and officers who retire in their early 40s, then take jobs outside the military. In the budget passed this month, the COLA for working-age retirees was reduced by 1 percentage point; when the retirees turn 62, they go back to receiving the full increase.

The cut is expected to save the government about $6 billion over 10 years, and it is set to be phased in over three years. Davis and Fitzpatrick’s bill would find the savings instead by asking the Internal Revenue Service to crack down on Americans who file fraudulent claims for child tax credits.

“I think we need to make the fix right now,” said Davis, whose Illinois district includes many former service members and employees at nearby Scott Air Force Base.

At a meet-and-greet with constituents in his district recently, many voters were livid at the pension cut, Davis said. To them and him, he said, the federal government is unfairly breaking a promise it made to service members.

“A lot of people joined the military and made huge sacrifices because they were promised a benefit,” he said. “To go back on that is wrong.”

Sen. Jeanne Shaheen, D-N.H., who is up for reelection next year, has introduced a bill to replace the $6 billion saved by the COLA cut by instead “eliminating a tax loophole for offshore corporations,” a news release from her office said.

Republican Sens. Kelly Ayotte, N.H., James Inhofe, Okla., Lindsey Graham, S.C., and others also have come out against the COLA cut.

On Dec. 23, Reps. Julia Brownley, D-Calif., and Ted Poe, R-Texas, introduced similar measures that would repeal the provision.