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Senate votes to boost retiree pay, GI Bill

The Senate agreed Friday to eliminate offsets in military retired and survivor payments, to spend more money on services for low-vision and blinded veterans, and to increase GI Bill education benefits in a series of votes to set budget priorities.

Senators also voted to make low-interest loans available to veterans and to extend until 2012 the option for mobilized National Guard and reserve members to use pre-tax retirement savings without penalty if they need the money for living expenses.

None of the votes is binding. They came as the Senate amended and passed its version of the 2008 concurrent budget resolution, which sets spending and revenue goals to be followed as Congress approves specific agency budgets and tax-related legislation. For lawmakers pushing for benefits increases, such as the GI Bill improvements proposed by Sen. Jim Webb, D-Va., it helps if the budget resolution sets aside money for their plan, but a mention in the budget resolution does not guarantee passage.

The House of Representatives will debate its version of the budget this week.

In a statement, Webb said he was happy that the Senate passed by voice vote a budget amendment agreeing to pay for increases in veterans’ education benefits from a reserve fund.

“I am very pleased that the Senate passed a budget that makes educational opportunities and training a priority for our service members,” said Webb, crediting Sen. John Warner, R-Va., for helping to get the amendment passed.

“This bill is a tangible expression of the value that our nation places on the service and sacrifices of our men and women in uniform,” Webb said.

Webb’s amendment does not contain a specific dollar figure to pay for GI Bill increases, but he is proposing a potentially expensive overhaul of the veterans’ benefits program, called the Post-9/11 Veterans Educational Assistance Act of 2007. It would increase benefits to fully cover the cost of tuition and fees, plus pay a monthly stipend for active-duty veterans, restoring benefits to their levels at the end of World War II.

Sens. Harry Reid, D-Nev., and Bill Nelson, D-Fla., secured amendments to pay for legislation that would end an offset in military retired pay for those who are eligible for military and veterans’ benefits.

Reid’s amendment would apply to the offset in military retired pay required of many veterans who also receive disability compensation from the Department of Veterans Affairs. Nelson’s amendment would apply to the offset between in military survivor benefits required of survivors who also receive VA dependency and indemnity compensation. Their proposals are high on the agenda of major military associations, but, like Webb’s GI Bill plan, their budget amendments do not set aside a specific amount of money to pay for their proposals.

There is $1 million a year set aside by Sen. Elizabeth Dole, R-N.C., to extend a law expiring in 2007 that gives Guard and reserve members six months or longer to withdraw, without penalty, money from individual retirement accounts and pre-tax savings accounts. Dole wants to extend the penalty-free access through 2012.

“Our National Guardsmen and reservists always stand ready to put their lives on hold and answer the call of duty,” she said. “These outstanding men and women should continue to have penalty-free access to their retirement savings if they find themselves in a deployment-related financial crunch.”