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Retired Activities Office Bulletins

The following bulletins are furnished to ANA as important information to retirees by LT EMO Tichacek, USN (Ret) who is the Retired Activities Director in Baguio, P.I. and are used with his permission.  If you have questions about the articles, please direct them to the cited reference in the bulletin and NOT to ANA or LT Tichacek.

30 Jul 04
CRSC Update 22 (Payment of IU in AUG)
SBP Offset Update 05 (DoD sabotage effort)
COLA 2005 (Projection)
Medicare Late Enrollment Penalty Update 03
S-DVI Update 01 (Application online now available)
DFAS Reserve/Guard Pay Center
VA Dental Treatment (Eligibility)
Military One Source Update 01 (ID Code & passwords)
Travel Registration w/State Dept (Online)
Air Force Pharmacy Policy Change
Legislation of Interest Update 03
VA Home Loan Update 02
TRICARE Delphi Council (Looking for Volunteers)

CRSC Update 22:  DoD officials have indicated that, barring unforeseen problems, retirees receiving Combat-Related Special Compensation who are eligible for Individual Unemployability (IU) payments should start receiving prospective IU payments in August. Retroactive payment of IU for months of previous eligibility (back to June 1, 2003) may take a few weeks longer, but they hope these lump-sum retroactive payments can be made before the end of August. The Defense Finance and Accounting Service (DFAS) which manages pay for nearly 2.2 million military retirees and annuitants, plans to notify potential eligible payees by mail prior to issuing these payments. Bear in mind that the eligibility criteria dictate that a retiree must have a CRSC disability rating of 60 percent or greater in order to have IU included in his or her CRSC compensation. DoD is also hoping to be able to begin payments to CRSC-eligibles for applicable dependent allowances in August. Special Monthly Compensation payments for special disability circumstances pose a greater challenge, but the Finance Center hopes to be able to make those payments by the end of September.  [Source: MOAA's Leg Up 16 JUL 04]

SBP Offset Update 05:  Not deterred by votes in both the House and the Senate to phase out the military widows tax that cuts Survivor Benefit Plan (SBP) annuities by one-third for survivors age 62 and older, Defense Department leaders are trying new ways to sabotage this effort. Reportedly, a package of Pentagon "appeal documents" sent to the Senate Armed Services Committee on July 7th proposed two feeble alternatives.

  * One would merely delay the annuity reduction until full retirement age-between 65 and 67, depending on the survivor's year of birth.

  * Alternatively, the letter proposed lowering the SBP premium by an unspecified amount rather than eliminating the annuity reduction altogether.

     Changing the age for the benefit cut would be purely cosmetic, since the vast majority of survivors are already over 65. Changing the premium helps retirees, not survivors. A prospective change for retirees fails to address the basic problem--that the benefit for older widows is disproportionally small for the premiums retirees have already paid. Premiums were already reduced for retirees in 1991. The government provides every other category of federal survivors 50 percent or 55 percent of retired pay for life, with no benefit reduction at any age. It's incredibly insensitive that DoD leaders keep trying to justify singling out military widows to pay a military widows tax, particularly as the number of military deaths in Iraq has just passed 900. We have a strong majority of support in both the House and the Senate to get rid of the widows tax. Defense leaders need to stop fighting against survivors' interests and get on board. If you'd like to support these efforts and press for a real SBP fix, you can use the MOAA Action Alert at  http://capwiz.com/moaa/home/  or their toll-free Capitol Hill hotline for members at (877) 762-8762 to communicate with your Senators and Representatives. [MOAA's Leg Up 23 JUL 04]

COLA 2005:  This week, the Bureau of Labor Statistics announced the monthly Consumer Price Index (CPI), which is the metric used to calculate the annual cost-of-living adjustment (COLA) for military retired pay, VA disability compensation, survivor annuities, and Social Security. After a decline in the CPI during the last few months of 2003, inflation has rebounded as the year has progressed. The June CPI is 0.3 percent above the May tally, and 2.8 percent above last year's COLA baseline. If the June inflation rate continues for the next three months, we could see the 2005 COLA to be in the neighborhood of 3.4 percent. In the interim, this week the House passed HR 4175, which will provide a 1.7% cost of living increase for veterans disability compensation and pension if no changes are made by the Senate or the conference committee.
[Source: MOAA's Leg Up 16 JUL 04 & VFW Washington Weekly 23 JUL 04 ]

Medicare Late Enrollment Penalty Update 03:  Many military beneficiaries living overseas declined Medicare Part B when they became eligible to sign up because it could not be used overseas. Also, many who lived near a military base chose not to take Part B when they became Medicare eligible, thinking they would be able to continue using the military health care system. When the base subsequently closed or space was no longer available these retires were left out in the cold. With the implementation of TRICARE for Life in 2001, retirees who had not previously signed up were forced to pay a 10% penalty to enroll in Part B for every year over age 65 to be eligible for TFL. Many never enrolled because of the penalty. This problem was resolved with the passing of Medicare Prescription Drug, Improvement and Modernization Act of 2003. The new law affects uniformed services beneficiaries who are TRICARE and Medicare eligible in one of the following ways:

  * Military medical beneficiaries who are entitled to Medicare Part A but are not enrolled in Medicare Part B will be automatically enrolled in
Medicare Part B without a premium penalty during a special enrollment period that will continue through 31 DEC 2004. The current regular premium is $66.60 a month, which will be deducted from their SS payments. Anyone not receiving SS payments large enough to cover the premium will have to contact SSA and make arrangements to make quarterly advance payments to be eligible for TFL. In early fall, these beneficiaries will receive a form in the mail, providing them the option of selecting any month in 2004 as their Medicare Part B entitlement date. They may also refuse Part B altogether.

  * Beneficiaries whose current Medicare Part B entitlement began between JAN 01 and DEC 04 who are paying a premium penalty in addition to
the $66.60 per month charge for Medicare Part B will have their Part B premium reduced to the 2004 rate of $66.60 beginning JAN 04, or if later,
their Part B entitlement date. Medicare beneficiaries, who were eligible for TRICARE for Life and enrolled late, were forced to pay a premium
penalty of 10% per year. In early fall, these beneficiaries will receive a refund for any excess premium surcharges they paid beginning in January 2004.

  * Beneficiaries who enrolled in Medicare Part B between January and March of 2004 (the Medicare general enrollment period) will have the option to retain their July 2004 entitlement date or change their entitlement date to any other month within 2004.

     It has taken some time for the program to be implemented. If notices are mailed in early Fall retirees will only have 3 to 4 months to verify
enrollment and there is no indication that the 31 DEC 04 date for late enrollment without penalty will be changed. The first indication of
implementation has now been seen with changes to the TRICARE Management Activity Fact Sheet and information posted on the Medicare web site regarding eligibility and procedures. If you believe you are eligible and do not receive a letter in the next few months recommend you contact your local SSA office to ensure you are able to enroll without penalty and obtain TFL benefits.

[Source: NAUS Update for 16 JUL 04 ++]

S-DVI Update 01:  The Department of Veterans Affairs (VA) has expanded its online benefits applications to include Service-Disabled Veterans Insurance. VA’s Web site already provides 7/24 online convenience for applications for compensation, pension, health care and vocational rehabilitation benefits as well as education enrollment certification. The addition of Service-Disabled Veterans Insurance (S-DVI) means veterans can be assured their application is transmitted to the VA Insurance Center in Philadelphia without mailing delay. The application can be accessed through the online applications link at VA’s main Web page at  http://www.va.gov  or through the insurance Web pages at  http://www.insurance.va.gov  Eligible veterans can initiate the process through a secure Web site by clicking on “Apply for S-DVI Insurance Online Using Our Autoform Application.” The online application process guides applicants through each step of the application with easy-to-use help screens and tools. The first steps of the process will allow veterans to immediately determine if they are eligible for the insurance. They will also be able to learn about the different types of insurance plans and premiums available to them. Once transmitted, applications are immediately processed. However, veterans who are uncomfortable submitting their application online may also print their application from the Web site and mail or fax it, just as they may do now with the paper version of the application. The 29-8485 application form from can also be download at  http://www.va.gov/FORMS/default.asp  

     S-DVI is a VA program of life insurance that provides $10,000 of coverage to veterans who have received a service-connected disability
rating for a new condition from VA within the past two years; were separated from service on or after April 25, 1951, under other than
dishonorable conditions; and are in good health except for their service-connected conditions. Veterans who are totally disabled may apply
for a waiver of premiums for initial coverage up to $10,000. For those veterans who are eligible for this waiver, additional supplemental coverage
of up to $20,000 is available but they must pay the premiums for the additional coverage. [Source: VA News Release 14 JUL 04]

DFAS Reserve/Guard Pay Center:  The Defense Financing and Accounting Service (DFAS) officially opened the Reserve/Guard Pay Center as a centralized location for DFAS services for reserve component personnel. A key feature of the Center, which is housed within the Cleveland-based DFAS Military and Civilian Pay Services operation, is "surge capability." The cross flow of expertise residing there will allow pay technicians to support more than one service without adversely affecting other customers. Pay and customer service operations went "live" for some services in May with other branches to be included soon. For additional information on the Reserve/Guard Pay Center, visit  http://www.dfas.mil  [Source: FRA News Bytes 1 JUL 04]

VA Dental Treatment:  Outpatient dental treatment provided by the VA includes examinations and the full spectrum of diagnostic, surgical ,
restorative and preventive procedures. Veterans eligible to receive dental care include the following:

     1.  Veterans having service connected and compensable dental disabilities or conditions.

     2.  Former prisoners of war.

     3.  Veterans with service connected non-compensable dental conditions as a result of combat wounds or service injuries.

     4.  Veterans with service connected non-compensable dental conditions determined by the VA to be aggravating a service connected medical problem.

     5.  Veterans having service connected rated as permanently and totally disabled or rated 100% by reason of individual unemployability.

     6.  Veterans participating in a vocational rehabilitation program under chapter 31 of title 38.

     7.  Certain enrolled homeless veterans participating in specific health care programs.

     8.  Veterans with non-service connected dental conditions for treatment which was begun while the veteran was an inpatient in a VA facility when it is necessary to complete such treatment on an outpatient basis.

     9.  Veterans requiring treatment for dental conditions clinically determined be complicating a medical condition currently under treatment.

     Veterans may receive one-time dental treatment for service connected and non-compensable dental disabilities if the following conditions are met:

  * The dental condition can be shown to have existed at the time of discharge.
  * The veteran served on active duty for 180 days or 90 days during the Gulf War Era.
  * The veteran applied for VA dental care within 90 days of discharge or release from active duty.
  * The certificate of discharge does not include certification that all appropriate dental treatment had been rendered prior to discharge.

[Source: VA Pamphlet 80-04-01 Edition 2004]

Military One Source Update 01:  Military One Source is the one stop place to go 7/24 whenever service members or family members need assistance with any kind of problem. When accessing Military One on the internet it is necessary for you to enter an ID word and password in order to enter the site. These words are:  

http://www.armyonesource.com  ID: army, password: onesource

http://www.navyonesource.com  ID: navy, password: sailor

http://www.mccsonesource.com  ID: marines, password: semperfi

http://www.airforceonesource.com  ID: airforce, password: ready

[Source: - Austin TX VA Requirements Analyst Naomi Gilbert msg 19 JUL 04]

Travel Registration w/State Dept:  Millions of Americans travel abroad every year and encounter no difficulties. However, U.S. embassies and consulates do assist nearly 200,000 Americans each year who are victims of crime, accident, or illness, or whose family and friends need to contact them in an emergency. When an emergency happens, or if natural disaster, terrorism, or civil unrest strikes during your foreign travel, the nearest U.S. embassy or consulate can be your source of assistance and information. By registering your trip, you help the embassy or consulate locate you when you might need them the most. Registration is voluntary but it should be a part of your travel planning and security. This free service is available to U.S. citizens who are traveling to or living in a foreign country. Registration allows you to record information about your upcoming trip abroad that the Department of State can use to assist you in case of an emergency. Registration on the website is NOT considered proof of U.S. citizenship. If you apply for any American citizen services from the embassy or consulate while abroad, you will be asked by the consular staff to provide proof of U.S. citizenship, such as a U.S. passport or American birth certificate.
     Registration on line can be accomplished at  https://travelregistration.state.gov/ibrs/home.asp  If desired, can create a password and update your personal information on this website at any time. All personal information you provide is secure and protected by the Privacy Act of 1974. When registering you have the option of selecting:

  * Short Term Traveler: If you are traveling outside the United States and plan to return after a brief time (usually less than six months), you
should select the short-term option. Tourists and business travelers are examples of travelers selecting the short-term option. While you travel,
your information will be available to U.S. consular officers should they need to contact or locate you in an emergency.

  * Long-Term Traveler/Overseas Resident: If you reside in a foreign country, or will stay in a foreign country for an extend period of time,
you should select the long-term option. If you make frequent trips to the same country, you may also wish to use the long-term option. Long-term
travelers and overseas residents have their information registered directly at the U.S. embassy or consulate nearest their foreign residence or travel destination.. You may add information about travel companions or members of your household, as well as your business address and additional ways to contact you. This will help U.S. consular officers provide you with emergency and routine services. U.S embassies and consulates often distribute important security information to Americans residing in their regions.

  * Travel Agent or Organizational Representative: If you are organizing a trip for other travelers and are not traveling yourself, your
organization's information should be filled out.

     While abroad U.S. consular officers can assist Americans who encounter serious legal, medical, or financial difficulties. Although consular
officers cannot act as your legal counsel or representative, they can provide the names of local attorneys and doctors, provide loans to destitute Americans, and provide information about dangerous conditions affecting your overseas travel or residence. Consular officers also perform
non-emergency services, helping Americans with absentee voting, selective service registration, receiving federal benefits, and filing U.S. tax
forms. Consular officers can notarize documents, issue passports, and register American children born abroad. Most embassies and consulates have web sites with more information. You don't have to register to get travel information from the Department of State. A current listing of all Travel Warnings, Public Announcements, and Consular Information Sheets can be found at  http://travel.state.gov  If you would like to sign up to get updated information sent to you by email for any country, use the "Travel Info" link at the top of this page.

[Source: Margarita Station Angeles City News JUL 2004 &  http://www.state.gov ]

Air Force Pharmacy Policy Change:  In a memorandum recently sent by the Assistant Surgeon General for health-care operations Maj. Gen. (Dr.) Joseph E. Kelley to all Air Force pharmacies he directed them to no longer distribute some high-use, but expensive medications. Budget considerations were cited as the reason because of more expensive drugs coming to market this year plus a 8% price increase in the approximately 150 high-use medications contained on the DoD and VA contract list. To assist in meeting the medical service fiscal parameters, changes will be made in dispensing non-sedating antihistamines, some arthritis medications and insulin. For patients requesting refills on the medications being deleted, a 30-day supply will be provided to allow them enough time to obtain a new prescription for another medication. Patients seeking medications not contained on the pharmacy formulary have two options:

     1. The Tricare mail-order pharmacy will mail up to a three-month supply of medication directly to the patient's home for a small co-pay --
$3 or $9 depending on generic or brand-name medication.

     2. The (retail) managed care support contract pharmacies will provide up to a 30-day supply of medication for a $3 or $9 co-pay.

     Both of these options provide a broader range of medications than normally found at the MTF pharmacy. Patients who have questions regarding their pharmacy benefit can contact their local pharmacy. [Source: Air Force Retiree News Service Release No. 07-08-04 dtd 23 JUL 04]

Legislation of Interest Update 03:  The Senate Veterans Affairs Committee made quick action of pending legislation by approving the following legislation, which now moves to the full Senate:

  * S. 1153, allowing Medicare-eligible veterans to purchase prescription drugs from VA.

  * S. 2483, provides a 1.7% cost of living increase to veteran’s disability and compensation.

  * S. 2484, reforms pay and work schedules for VA physicians, dentists, nurses, and other health-care personnel.

  * S. 2486, expands GI Bill educational benefits to servicemembers and Guard and Reservists serving more than two years on active duty, and
increases the maximum VA home loan guaranty.

  * S. 2485, includes portions of various VFW supported bills. Some of the provisions would repeal the home loan funding fee for recently
separated servicemembers, increase GI Bill education benefits and designate a POW/MIA National Memorial at Riverside National Cemetery in California. Those bills are S.2133, S.1745, S.2296, S.2486, S.2327, S.2417, S.2524, and S.2063.

  * The House and Senate approved the FY 2005 Defense Appropriation Conference report. The bill provides $416 billion in funding for defense
programs. It now heads to the President’s desk for signature. This is the FY2005 Defense Appropriations Act that just provides funding. The House and Senate have yet to vote on a Conference report on the Defense Authorization bill which contains provisions for full concurrent receipt payment for 100% disabled, elimination of the SBP social security offset, and Enhanced TRICARE Coverage for the National Guard and Reserve. The Conference Committee will likely meet sometime after the August recess.

     Congress adjourned July 26 - September 6 for a six-week summer recess. Both Houses will return to Washington on September 7 with an expected adjournment date on or around October 1. For info on any congressional bill refer to  http://thomas.loc.gov/  and type the bill number into the box at the left that will appear after opening the site.

[Source: VFW Washington Weekly 23 JUL 04 ]

VA Home Loan Update 02:  Normally, Guardsmen and reservists have to serve six years before becoming eligible for a VA home loan. But, when they're called to active duty during wartime, they're subject to the same eligibility requirements as a regular active duty service Member. During wartime, you only have to serve for 90 days to become eligible for a VA home loan. Those with less than 90 days who are discharged with a service-connected disability are also eligible. [Source: Armed Forces News 23 JUL 04]

     Service members, veterans, and surviving spouses that have not remarried who decide to buy a house are eligible for a home loan guarantee
offered by the Department of Veterans Affairs. A surviving spouse who remarries will regain eligibility for the program if the subsequent
marriage ends. This program does not apply to property located outside the United States. The VA does not make the loans. Rather, it guarantees the loans, which minimizes lender’s risks and reduces their losses in the event of foreclosure. The money comes from private lenders who volunteer to participate in the VA program. Because of the guaranty, lenders are willing to offer mortgage loans larger than for what service members might otherwise qualify. A VA loan can be used to buy a house, townhouse or condominium, or one under construction; a mobile home, with some restrictions; or a mobile home lot and a farm but not farm-related items such as long as the loan has been paid in full. Eligibility can be
restored if the person buying the home is an eligible veterans who assumes the loan and substitutes his entitlement for that of the original veteran.
Funding fees Recipients of VA home loans pay a funding fee similar to user fees or origination fees paid by civilian borrowers. Funding fees offset losses that occur when borrowers default on loans. VA borrowers are not required to pay an up-front funding fee in order to secure a loan, but can
include the fee as part of the loan amount. The funding fee for loans with a down payment of less than 5% is 2% or 2.75% for those qualifying based on service in the reserve or National Guard. It is lower for veterans making down payments of 5% percent or more. The VA also charges a funding fee to second-time users of the loan program. The so-called multiple-use fee is 3% percent of the loan amount unless the veteran makes at least a 5% percent down payment. In that case, the fee drops. Veterans who have a service-connected disability for which they receive compensation are exempt from any funding fee. Under the laws of some states, disabled veterans also may qualify for a waiver of property taxes. There is an additional option for those who already hold VA-approved home loans the Interest Rate Reduction Refinancing Loan. The funding fee is 0.5 percent.
     Maximum loan VA does not establish a maximum loan amount. However, lenders generally will lend to qualified veterans up to four times the basic maximum entitlement. This means a typical ceiling for a loan with no down payment is $144,000 (4 x $36,000). In certain cases for loans above $144,000, the maximum entitlement can be increased to $60,000. That would enable a person to borrow four times that amount, or $240,000, without a down payment.
     Refinancing a VA loan can be used to refinance an existing mortgage or to improve, repair or alter a dwelling owned and occupied by a veteran. On loans to refinance an existing VA loan to lower the interest rate, closing costs including up to two discount points can be included in the loan. [Source Military times Handbook for Military Life May 2002]

     Veterans Education and Benefits Expansion Act of 2001 VA’s direct loan program for Native Americans assists those vets buying on trust land. VA issues the loan, not a private lender, so the program’s different from regular guaranteed home loans. It’s strictly for veterans living on
reservations because it’s difficult to get lenders to make loans in those areas. The 2001 Act extended the nine-year-old program for four years to
Dec. 31, 2005. The program’s loan ceiling is $80,000, except in certain high-cost areas where VA has approved up to $120,000. Loan interest rates are competitive with the mortgage market. So far, VA has only made about 30 loans on trust lands in the continental United States. The act also increases specialty-housing grants from $43,000 to $48,000 for severely disabled veterans who need homes built to accommodate wheelchairs. The grant pays for such things as wider hallways, lowered kitchen appliances and counter tops, and bigger bathrooms. Veterans can use both a grant and a regular VA guaranteed loan to cover the total cost of their home purchase. Another grant program for housing adaptations for less seriously disabled vets had its ceiling raised to $9,250 -- up from $8,250. The money is for some blinded veterans and amputees who need extra help.

The law also extended housing loans for National Guard and Reserve personnel with at least six years of service from September 2007 to Sept. 30, 2009. Reserve component personnel are authorized the same home loan guarantees as active duty personnel.

[Source American Forces Press Service 10 JAN 02]

TRICARE Delphi Council:  The TRICARE Delphi Council is chartered by the TRICARE Management Activity (TMA), to assist it in accomplishing its mission. The Council is a worldwide group of 250 volunteers representing active duty, Reserve component, and retired members of all the uniformed services, as well as their family members and their survivors who receive health care services through the TRICARE Prime, TRICARE Extra, TRICARE Standard, or TRICARE For Life options. The Council uses the Delphi Technique, a non face-to-face procedure, for aggregating group members' opinions. Communication is via the Council members' choice of either mail or the Internet. Council members answer TMA questionnaires seeking beneficiary feedback on TRICARE patient education products, services, and communication strategies.
     Feedback is identified to the group demographically, but without revealing the identity of individual participants, thus keeping their individual
answers confidential and candid. The Delphi Technique is especially useful for obtaining insight from large groups, geography is not a factor, and it can be useful when conflicts or status differences exist among group members. Delphi Council activities relate exclusively to global TRICARE
communication products, services, and strategies. The Council does not serve as a conduit for referral of local issues. Problems with individual
episodes of care or that are region-specific should be referred directly to the local military treatment facility commander or regional lead agent.
     As of July 13th there were 206 council members. Based on these findings, TMA would like to recruit additional representation, especially
spouses of junior enlisted (E-1 to E-4), and especially from the Marine Corps and Air Force. Also, TMA needs about 50 more TRICARE for Life and TRICARE Standard volunteers. If you know someone within those categories  willing to serve refer them to the registration Web site at  
http://www.tricare.osd.mil/evaluations/evaluate.aspx?id=47&pass=801886507   [Source: NAUS Leg Up 33 JUL 04]

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