New BAH rates are out.

[Lawman]

Up 100-200 depending on rank in the JBLM footprint. My mortgage is finally less than my total BAH.


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[Fuzz]

https://www.aetc.af.mil/News/ArticleDisplay/tabid/5115/Article/1038676/fy-17-ndaa-impact-on-airmen.asp

"For personnel compensation and benefits, effective Jan.1, the monthly basic pay will increase by 2.1 percent, and while there will not be any changes made to the administration of the housing allowance the NDAA directs the defense department to begin planning for a transition to a single-salary pay system no later than Jan. 1, 2018. The goal is to create a system that better aligns the payment with the DOD’s use of the housing allotment as compensation rather than as an allowance."

[hispeed7721]

So all pay will be taxable...and no change in pay based on location I presume


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[Booj]

That will be especially brutal for dudes who are OCONUS getting OHA and COLA

[Duck]

Thanks congress. Preciate' that.


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[NKAWTG]

I wonder if my retirement pay calculation will include the housing "compensation."  May make those last 3 years in DC suck a tiny bit less. 

[Booj]

My rough math shows that the gov't will get an extra 10k from me a year because if we move to a single salary

[Duck]

I wonder if my retirement pay calculation will include the housing "compensation."  May make those last 3 years in DC suck a tiny bit less. 

In no way will they let this benefit us. But that would be a nice incentive!


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[pawnman]

8 hours ago, NKAWTG said:

I wonder if my retirement pay calculation will include the housing "compensation."  May make those last 3 years in DC suck a tiny bit less. 

Part of the plan that is required includes no changes to retirement payouts...so no, you won't get extra money because BAH is now part of your salary.

One idea I've seen floated (on the bro level, not from any officials) is moving towards what the civil service does with locality adjustments as part of your pay.  Live in a low cost area, your locality adjustment might be 10% of your base pay.  Move somewhere with a high cost of living, it could be 30% of your base pay. (Rough numbers).

[ThreeHoler]

"To begin planning to move..." hopefully no one starts planning until 31 Dec 17. No deadline one when the move had to be made.


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[MooseAg03]

My decision to leave just keeps getting easier and easier.


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[Fuzz]

4 hours ago, ThreeHoler said:

"To begin planning to move..." hopefully no one starts planning until 31 Dec 17. No deadline one when the move had to be made.


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I read that as begin the planning to be at single payer by 2018. I hope I'm misreading that but also considering how slow bureaucracy works I'll be surprised if that actually happens if that is the deadline. Also I'd probably hoard a couple pay checks next year because finance will find some way to fuck this up.

[nunya]

That would have added ~$5,376 to my last Active Duty income tax bill.  Wow. 

[ViperMan]

9 hours ago, pawnman said:

Part of the plan that is required includes no changes to retirement payouts...so no, you won't get extra money because BAH is now part of your salary.

One idea I've seen floated (on the bro level, not from any officials) is moving towards what the civil service does with locality adjustments as part of your pay.  Live in a low cost area, your locality adjustment might be 10% of your base pay.  Move somewhere with a high cost of living, it could be 30% of your base pay. (Rough numbers).

So is the idea basically +up everyone's basic pay by like 80% of the 'average' BAH out on the street and then give you a 'kicker' to make those individuals in high cost of living areas able to make ends meet?

If that's the case, I'll take the extra "BAH" as part of my salary cause it'll be nice having the extra amount increase my retirement check. Always thought the idea of BAH/BAS was a way for the DOD to get around having to pay larger retirements, under the guise of "look, you get to pay less taxes!". I'm sure I'm misreading something though.

[Duck]

So is the idea basically +up everyone's basic pay by like 80% of the 'average' BAH out on the street and then give you a 'kicker' to make those individuals in high cost of living areas able to make ends meet?

If that's the case, I'll take the extra "BAH" as part of my salary cause it'll be nice having the extra amount increase my retirement check. Always thought the idea of BAH/BAS was a way for the DOD to get around having to pay larger retirements, under the guise of "look, you get to pay less taxes!". I'm sure I'm misreading something though.

Doubtful. More than likely they call it Basic Housing PAY and then you are taxed on it. It wouldn't be a flat rate pay increase across the board nor would it change your base pay, therefore no increase in your retirement. Just lube up bro, they are only trying to fvck you.

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[Muscle2002]

I read that as begin the planning to be at single payer by 2018. I hope I'm misreading that but also considering how slow bureaucracy works I'll be surprised if that actually happens if that is the deadline. Also I'd probably hoard a couple pay checks next year because finance will find some way to this up.

Negative, OSD has to report on the actions behind and the repercussions of implementing a single-salary system by 1 Jan 18, so then Congress may deliberate. I would expect a change, if one occurs, NET the 2018 NDAA.

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[HU&W]

12 hours ago, pawnman said:

Part of the plan that is required includes no changes to retirement payouts...so no, you won't get extra money because BAH is now part of your salary.

One idea I've seen floated (on the bro level, not from any officials) is moving towards what the civil service does with locality adjustments as part of your pay.  Live in a low cost area, your locality adjustment might be 10% of your base pay.  Move somewhere with a high cost of living, it could be 30% of your base pay. (Rough numbers).

Well, here's what congress has in mind.  Sounds very much like what you're describing.

"a new pay structure for members of the Armed Forces, including new pay tables, that uses a single-salary pay system (as adjusted by the same cost-of-living adjustment that the Department of Defense uses worldwide for civilian employees" -SEC 604.b.1

Edited December 31, 2016 by HU&W

[pawnman]

12 hours ago, ViperMan said:

So is the idea basically +up everyone's basic pay by like 80% of the 'average' BAH out on the street and then give you a 'kicker' to make those individuals in high cost of living areas able to make ends meet?

If that's the case, I'll take the extra "BAH" as part of my salary cause it'll be nice having the extra amount increase my retirement check. Always thought the idea of BAH/BAS was a way for the DOD to get around having to pay larger retirements, under the guise of "look, you get to pay less taxes!". I'm sure I'm misreading something though.

You missed the part when this new plan is supposed to include a way to keep retirement payouts at the same level, and not increase them by increasing base pay.

[HU&W]

25 minutes ago, pawnman said:

You missed the part when this new plan is supposed to include a way to keep retirement payouts at the same level, and not increase them by increasing base pay.

The language is actually significantly more complicated than that.  It reads: "Necessary modifications to the military retirement system, including the retired pay multiplier, to ensure that members of the Armed Forces under the pay structure are situated similarly to where they would otherwise be under the military retirement system that will take effect on January 1, 2018, by reason part I of subtitle D of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 842), and the amendments made by that part."

That 1 Jan 18 retirement system is the new one that includes TSP contributions.  Clearly they want to modify the multiplier.  I hope us old guys will still be grandfathered as we were supposed to be with the new system, but that will be very complicated with a mass multiplier adjustment based on an entire new pay structure.  Might by time to buy stock in KY.

Edited December 31, 2016 by HU&W

[NKAWTG]

Anyone know which congressman seems to to think military personnel are scamming the housing allowance?  This feels like it is in the same vein as cutting benefits for dual military spouses.  

End game of this new change appears to be the DOD pays the same amount in housing costs, but military members have less in their paychecks after taxes.  Lose/lose all the way around.  

[Spartacus]

2 hours ago, NKAWTG said:

Anyone know which congressman seems to to think military personnel are scamming the housing allowance?  This feels like it is in the same vein as cutting benefits for dual military spouses.  

End game of this new change appears to be the DOD pays the same amount in housing costs, but military members have less in their paychecks after taxes.  Lose/lose all the way around.  

I emailed my congressman about this and a couple of other things. Of course one of his staff members replied and not him, but the answers were interesting. I'd have to go dig up the email but in response to BAH they said something along the lines of, "Congress is committed to make sure that BAH is accurate and not being abused." I actually called the office about this and asked what they meant by that. They did some serious back peddling when I started hitting them on BAH. I kind of assume that someone briefed or testified to Congress about this and that is their general thought about BAH now. I doubt Congress actually understands the issue at all.

[SurelySerious]

Too much time campaigning and fund raising with too little time legislating.

[ViperMan]

4 hours ago, NKAWTG said:

Anyone know which congressman seems to to think military personnel are scamming the housing allowance?  This feels like it is in the same vein as cutting benefits for dual military spouses.  

End game of this new change appears to be the DOD pays the same amount in housing costs, but military members have less in their paychecks after taxes.  Lose/lose all the way around.  

How is it even possible to "scam" BAH besides something obvious, like misrepresenting your dependent status or something like that. You either live on base and get BAH which goes to a contractor, or live off base, and get BAH which goes into your bank account, right? Doesn't seem to me to be a system that is ripe for abuse.

[magnetfreezer]

6 hours ago, ViperMan said:

How is it even possible to "scam" BAH besides something obvious, like misrepresenting your dependent status or something like that. You either live on base and get BAH which goes to a contractor, or live off base, and get BAH which goes into your bank account, right? Doesn't seem to me to be a system that is ripe for abuse.

Their perception of "scamming" BAH includes guys/gals with roommates, cheap places, etc who bank BAH. Dual mil couples were viewed in the debate a few months ago as "working the system" as well. The term housing allowance does obscure the fact that it's part of the pay package for each member - no matter how they choose to use it. All the BAH cut proponents forget that the DoD pays the same base pay wherever you live, unlike company X which has to offer significantly higher salary in Seattle vs Stillwater to be competitive.

[SurelySerious]

McCain could pick any number of actual monetary abuses in the DOD, but instead picks one that will impact compensation for the military members. It's as if he's so senile as to have forgotten that he was once in these shoes.