what’s inside… · pg 9 2014 pmoaa membership renewal form pg 9 scholarship donation form local...
TRANSCRIPT
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
What’s Inside…
pg 1 President's Corner
pg 1 PMOAA November Photos
pg 2 Legislative Affairs
pg 3 Legislative Affairs (Cont)
pg 4 Legislative Affairs (Cont)
pg 4 Member Spotlight
pg 5 Member Spotlight (Cont)
pg 6 November Photos (Cont)
pg 7 Financial Planning - “The Lady Bird Deed”
pg 8 Board of Directors Minutes
pg 9 Auxiliary Corner
pg 9 2014 PMOAA Membership Renewal Form
pg 9 Scholarship Donation Form
PMOAA Beacon is published by UPS Store 2927, proud member of PMOAA 4051 Barrancas Avenue, Suite G Pensacola, FL 32507-3482 Tel (850) 457-1099 Fax (850) 457-1022
1 10
PMOAA Beacon The City of Five Flags-Pensacola Florida
4 Star Chapter Award – 2002 5 Star Chapter Awards — 2003, 2004, 2005,
2006, 2007, 2008, 2009, 2010, 2011, 2012 http://www.pmoaa.org
PRESIDENT’S CORNER
The holidays have arrived with an Arctic Blast of win-ter. No need to stay home because you have already marked your calendar for Thursday, 5 December to attend our December Christmas Dinner Dance at the Pensacola Yacht Club. We will have our very own Major Tom Fitzgerald performing with “The Blend-ers” for your dancing pleasure. Bring an unwrapped gift in support of the U.S. Marine Corps Reserves’ Toys for Tots program.
Pensacola celebrated Veteran’s Day on Monday, 11 November with a parade from Government & Spring Street to Veteran’s Memorial Park. Several thou-sands marched the 1.7 mile route to be enthusiasti-cally greeted by another several thousand spectators along the way, offering their unbridled support of our local military Veterans and families. My thanks go out to Captain Jim Frazier, Major Charlie Booton and wife Jean, who joined me in the parades procession rep-resenting PMOAA. Next year I would like to see PMOAA have a greater participation in the event. Contact us with your ideas on how best to accomplish this goal.
Once again, PMOAA will be contributing to “Wreaths Across America”. The ceremony will be held at Bar-rancas National Cemetery on Saturday, 14 December 2013 at 1100.
Traveling to Colorado Springs, Colorado, 15-17 No-vember 2013, allowed me the opportunity to partici-pate in the 2013 MOAA Annual Meeting. There were many workshops that provided me with legislative updates, 475 Star Levels of Excellence (LOE) “Best Practices” gleaned from this year’s chapter award packages, and most enjoyable was walking the awards stage Saturday night to receive our own elev-enth consecutive 5 Star LOE pennant from MOAA Chairman, General John H. Tilelli, Jr. (USA Ret) and Vice Admiral Norbert R. Ryan, Jr. (USN Ret). The state of Florida was well represented with 20 chap-ters gaining 4 or 5 Star LOE recognition. The Florida Council of Chapters, represented by LtCol COL Jim Connor (USAF-Ret), also received 5 Star status.
Our November Annual Business meeting was a grand success in several ways. First, there was a strong attendance by more than 60 members/guests
Immediate Past President LtCol Walter R. Limbach, USMC (Ret) 850-473-9899 [email protected]
DIRECTORS
MAJ Molly Werner, USA (Ret) 850-474-1291 [email protected] CDR Joe Brewer, USN (Ret) 850-453-9291 [email protected]
LTC Thomas Kuklish USA, (Ret) 251-961-1919 [email protected] Maj Charles Booton, USAF (Ret) 850-936-6311 [email protected]
LtCol Alan Sanders, USMC (Ret) 205-901-0620 [email protected]
President CDR William (Vann) Milheim, USN (Ret) 850-969-9715 [email protected]
1st Vice President LCDR David Wilhite, USN (Ret 850-968-4614 [email protected]
2nd Vice President Maj Tom Fitzgerald, USMC (Ret) 850-206-6873 [email protected]
Secretary RADM Joan M. Engel, USN (Ret) 850-473-9899 [email protected]
Treasurer CAPT Bartholomew Walsh, USN (Ret) 850-712-1126 [email protected]
Chair, Survivor Assistance Committee CAPT Bill Mayer, USN (Ret)
850-932-5999 [email protected]
Nonprofit Org U.S. Postage Paid
Permit No 326 Pensacola, FL
Pensacola Chapter, MOAA P.O. Box 17728
Pensacola, Florida 32501-7728
Return Service Requested
who enjoyed the food and hospitality of Azalea Trace. Second, it was rewarding to know that your Board of Directors did an outstanding job of updating our PMOAA By-laws in clearing written changes and rationale to the membership. This became evident when the floor was open for discussion and there was a pleasant silence followed by a unanimous vote of acceptance to the changes. Lastly, hats off to our Nominating Committee for bringing this talented group of Officer and Auxiliary members together for 2014. There is always a lot of work that must be accomplished by our Board of Directors each year and I am positive next year will be no different.
Finally, from our family to yours, enjoy a very Merry Christmas and the Happiest of New Years!
. Vann Milheim
November MOAA Photos
Photos courtesy of Christine Frazier and Elaine Ciardello
(More Photos on page 6 )
CDR Vann Milheim and USO Director, Heidi Blair
MOAA Chairman, GEN Tileli, Jr, presents 5 Star Chapter
pennant to CDR Vann Milheim at 2013 MOAA Annual Meeting.
Maj Booton and CAPT Fra-zier carry PMOAA banner while CDR Milheim carries PMOAA flag in Veterans
Day Parade (This photo is courtesy of Jean Booton.)
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
2
DONATION FORM Please accept my/our gift of $_______ to support the
PMOAA Scholarship Fund.
This gift is being made in honor of, or, in memory of
____________________________.
Donor Information:
Name ___________________________________
Address _________________________________
Phone______________Email ________________
Please send an acknowledgement to:
Name __________________________________
Address _________________________________
Your gift is tax deductible to the extent allowable by law. Mail your donation payable to:
PMOAA, P.O. Box 17728, Pensacola, FL 32501
Thank you for your support.
AUXILIARY CORNER
MOAA defines auxiliary members as the survivors of for-mer national MOAA members who are deceased or sur-vivors of deceased individuals, who would, if living, be eligible for membership. Auxiliary members can be active chapter members. Understanding both the challenges and sacrifices of military life for servicemembers and their families gives auxiliary members skills and talents that make them valuable assets. Auxiliary members can serve in leadership positions on the board of directors or various committees, plan and manage projects and pro-grams and assist in recruitment and retention initiatives.
The Auxiliary Member Advisory Committee (AMAC) led Storming the Hill event in July introduced many of our younger surviving spouses to MOAA. MOAA has asked all chapters to encourage our auxiliary members to par-ticipate in auxiliary liaison leadership roles. It is impera-tive our younger members be asked to become chapter leaders. This gives them a sense of purpose as well as a reason to attend meetings and be more involved in our organization. The reality is younger officers and auxiliary members are the future of MOAA.
Each year when renewing your membership, there are several blocks that ask if you would be willing to serve as an officer, director or on a committee. This year, why not check one of the one of the blocks in the affirmative?
Elaine Ciardello, Auxiliary Liaison
9
2014 PMOAA MEMBERSHIP RENEWAL FORM Please Print
FULL NAME______________________________________ (Last) (First) (Middle)
RANK/SERVICE: ___________________
Circle: Ret; AD; Reserve; Auxiliary; Guard
SPOUSE/SIGNIFICANT OTHER_____________________
ADDRESS_______________________________________
PHONE NUMBER_________________________________
E-MAIL ADDRESS________________________________
(For Official Chapter Communications/Use)
Circle one: I am OR I am not a member of National MOAA.
MY MOAA number is: ______________________________
Do you want your name, address, phone number, e-mail address published in the PMOAA directory?
Yes____ No _____
Might like to serve as a Chapter Officer or as a Director: Yes___ No ___
Might like to serve on a Chapter Committee: Me: Yes ___ No ___
Spouse: Yes___ No __
_____ Membership Dues: $20.00/person/year
_____ Auxiliary Dues: $20.00/person/year
_____ Social Member: Free but must renew membership
_____ TAX-DEDUCTIBLE SCHOLARSHIP CONTRIBUTION
_____ TOTAL ENCLOSED
Please make check payable to: PMOAA
Mail to: Membership, PMOAA P.O. Box 17728 Pensacola, FL 32501- 7728
Legislative and Benefits Update
Cost Of Living Adjustment (Source: MOAA) Issue: Government retired pay promises must be kept, including annual cost-of-living adjust-ments (COLAs) to prevent erosion of retirees' purchasing power by inflation.
Background: Despite previous prospective changes that reduced future retired pay value by 25% since 1980, and subsequent retention problems that led Congress to repeal those changes in 1999, some government and private sec-tor critics continue to allege the military retirement system is "overly generous." During the 1990's, legislators proposed or enacted multiple changes or delays in annual cost-of-living adjustments (COLA), singling out retired service mem-bers for discriminatory COLA penalties. Too often, critics wrongly equate federal retirement compensation--earned by decades of selfless service and sacrifice--with unearned federal welfare programs. Civilian retirement standards don't apply to the military, which entails far more arduous service conditions: 20 to 30 years of hazardous duty, frequent moves, extended family separations, overseas service, long hours of overtime without extra pay, forfeiture of many per-sonal freedoms most civilians take for granted, and an "up-or-out" promotion system. The vast majority of military mem-bers face forced departure from service before age 50, with no vesting before 20 years. Retaining a high-quality career force over the long term requires a strong reciprocal com-mitment between member and service. Retired pay increas-es, provided for in statute since 1871, are part of the com-mitment. Since 1963, COLAs have been tied to the Con-sumer Price Index (CPI), a Bureau of Statistics metric that measures changes in inflation. Without COLA protection, inflation would erode nearly half of real retired pay value for a 20-year retiree by age 62. The 2009 COLA, announced in October 2008, was an incredible 5.8% for most recipients of military retired pay, VA disability compensation, Survivor Benefit Plan annuities, Social Security, and other federal annuity programs. However, inflation in 2009, 2010 and 2011 (when compared to the 2008 baseline) actually de-clined providing no COLA for 2010, 2011 and 2012. A quick reminder: the law doesn't allow a negative COLA. Modest COLAs of less than 2% followed in 2013 and 2014.
October COLA Released (Source: MOAA) The Consumer Price Index dipped in October to 229.735. This is 0.3 percent below the new FY 2014 COLA baseline of 230.327. There are 11 months to go before we know the FY 2014 COLA, but this is the fifth time in six years that CO-LA started the new fiscal year in the hole.
Defense Bill Stalls (Source: Various) November 22, 2013 - The Senate reached an impasse dur-ing negotiations on the FY 2014 defense authorization bill and won’t take up the bill again until after they return to Washington on December 9. The debate bogged down over two particularly contentious issues – proposals on handling detainees at Guantanamo Bay and combating military sexu-al assault. Senate Majority Leader Harry Reid (D-Nev.) at-tempted to end debate and vote on the bill without consider-ing more than 500 proposed amendments. But his effort to fast track the bill was defeated by senators who wanted to continue debate and consider even more amendments to
the bill. That means the Senate could still consider im-portant amendments on pay, TRICARE, concurrent receipt, the SBP/DIC offset, and more. Send your legislators an MOAA-suggested message in support of these amend-ments now. Negotiations will be rushed when the Senate returns from Thanksgiving recess as it will only have one week to work out its version of the defense bill, and then conference with the House before the holidays. It’s setting up to be a frantic December, and to further complicate mat-ters the White House is again pushing to cap military pay and increase TRICARE fees. MOAA will continue to be the voice of the military and veterans community and in sup-port of the 1.8 percent pay raise amendment MOAA ran a full page ad, on two consecutive days, in The Hill newspa-per this week to urge support on Capitol Hill.
Chipping Away at the Commissary Benefit (Source: MOAA) Last August (2013), when discussing the impact of the se-quester on military readiness, President Barack Obama told a crowd gathered at Camp Pendleton, CA, “Hardworking folks are getting furloughed, families getting by on less, fewer ships available for your training exercis-es, the commissary your families rely on closed a day a week. We can do better than that. That’s not how a great nation should be treating its military and military families.” Not how a great nation should be treating its military and military families.
On Wednesday, Rep. Joe Wilson (R-SC) Chairman of the House Armed Services Subcommittee on Military Person-nel, opened the Military Resale Programs Hearing by reaf-firming his strong support for the commissary and ex-change system, “The military exchanges, the commissary and the Morale, Welfare and Recreation programs are acknowledged as highly valuable and appreciated benefits that support active duty retention, the wellbeing of the mili-tary community, and the readiness of the force.” But Wilson also acknowledged, “The fiscal pressures on the Defense budget have caused the department and services to look at initiatives to reduce appropriated funding for these pro-grams.” One by one the witnesses testified about the ongoing ef-forts to find efficiencies within their respective systems. Regarding the Defense Commissary Agency, Mr. Joseph H. Jeu, Director and Chief Executive Officer, Defense Commissary Agency, bluntly noted, “There is no low-hanging fruit to cut.”
What budget cutting options were discussed at this hearing? Rep. Joe Heck (R-NV) inquired about three proposals under consideration: Increasing the commissary surcharge from 5% to
10%
Raising prices 2 to 3 percent to cover secondary transportation costs (the cost of shipping goods over-seas)
Creation of an enhanced commissary that would sell additional products, such as alcohol, at a higher price
(Continued on page 3)
MILTON WATERFRONT SALE OF LEASE Enjoy life in this exclusive executive neighborhood, watch
spectacular sunsets over Back Water River from front, fish from lake in back. Be in Pensacola or at Whiting Field NAS in minutes. Great Room, cathedral ceiling, fireplace; Kitchen; corian countertops, stainless appliances, tile floors, window over sink, indirect lighting; split bedrooms; Master bedroom; entry to covered deck, walk-in closet, separate shower, whirl-pool tub; 3 BR + loft & two car side entry garage with extra parking, large corner lot. You're gonna love it!
Call now to see -- $185,000 or lease $1200/mo
Christine Frazier, Broker Associate CRS, GRI, DCPE, Notary Public ERA Old South Prop. Inc. 6218 N. 9th Pensacola, Fl. 32504 850-304-7773 Cell/Fax 850-484-9162
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
USO/Sam’s Club Update: Per CAPT Walsh, checks from Sam’s Club and Walmart will probably be delivered before Christmas. No response yet from our request to MOAA/USAA. Other: CDR Milheim asked MAJ Werner to make arrange-ments for him to meet with the PMOAA social members to discuss social member status.
NEW BUSINESS Web Site Training: Three people have volunteered for a PMOAA web site training session. This will be held on Sat-urday, 11 January 2014, at a place and time to be deter-mined. RADM Engel is working with LTC Kuklish on a site. A couple board members indicated they want to audit the training session. Christmas Dinner Dance: Everything is all set for Thurs-day, 5 December at the Pensacola Yacht Club starting at 1730. This is a black tie optional event. Everyone is asked to participate in the Toys for Tots program that evening. Please bring an unwrapped toy (no guns) and place in the designated area. Wreaths Across America: PMOAA purchased 4 wreaths in support of the program. The ceremony will be held on Saturday, 14 December at Barrancas National Cemetery starting at 1100 hours. All members are encouraged to at-tend. PMOAA Advertising at the Naval Aviation Museum: CDR Brewer contacted a member of the museum staff seeking permission to display MOAA and PMOAA chapter brochures in the entrance area/foyer of the Museum. He was advised that there are so many organizations that have similar requests, that the policy is in place to decline those requests. We would be permitted to set up a kiosk in the parking lot on an agreed day to “show our wares”, answer questions, and pass out material. The board agreed to set up a display outside at a time/date to be determined. Online Chapter Dues: The most recent proposal by MOAA to assist chapters by offering an online service for paying chapter dues was discussed at length. It was felt there was no real benefit to PMOAA. The board unanimously agreed not to participate in this program. CAPT Walsh will notify MOAA of our decision. January Installation and Memorial Service: LtCol Jim Conner, President of the Florida Council of Chapters will be the installation officer. The Sons of the American Revolu-tion Color Guard (four people) will participate in the Memori-al Service. We might want to consider inviting Col Barry Wright, Director, Council and Chapter Affairs officer. Other: CDR Brewer inquired if PMOAA ever advertised upcoming events in the Gosport. We used to do it when we had a public relations person. Currently the only item pub-lished in the Gosport is information on the scholarship pro-gram. A simple format could be developed to accommodate monthly notification of our meetings. It would be a good way to get the attention of the active duty personnel. CDR Brewer will consider taking on this endeavor in January.
The deadline for the Beacon is NLT COB on Monday, 25 November. The next board meeting will be Tuesday, 10 December 2013 at 1530 at Azalea Trace. Meeting ad-journed at 1655. Respectfully submitted,
Joan M. Engel, Secretary
PMOAA BOARD OF DIRECTORS MEETING
19 November 2013
President Milheim called the meeting to order at 1530 with the following members present: CDR Milheim, LCDR Wilhite, RADM Engel, CAPT Walsh, CDR Brewer, LtCol Sanders, MAJ Werner and Col Pappas, legislative chair. Absent: Maj Fitzgerald, LTC Kuklish and Maj Booton. A motion was made by LCDR Wilhite, seconded by LtCol Sanders to accept the October 2013 minutes. Motion car-ried.
Treasurer Report: Checking and RSA Savings account balances as of 24 October 2013 were presented. There are two outstanding checks: a check for $400 for The Blenders (band for Christmas Dinner Dance) and $80 for Azalea Trace wait staff at the 14 November member dinner. A $500 check was presented to Heidi Blair for the USO on 14 November. A motion was made by LtCol Sanders, second-ed by Maj Werner that the treasurer report be approved. Motion carried.
COMMITTEE REPORTS Legislative: Col Pappas will address the Affordable Care Act and identify some of the items as they pertain to the mil-itary. Proposed budget cutting options for concurrent re-ceipt will also be addressed. A question was posed as to moving COLA from 1.8% to 1% - is this correct? Membership: No official report. Who is reporting new members to MOAA? MOAA is reporting we have 13 new members to date. LCDR Wilhite has requested information from the data base manager regarding the exact number of new members. Once this information is received, he will follow the MOAA reporting procedures. Survivor Assistance: No report but CAPT Mayer has sub-mitted an article for the December Beacon. Hospital Liaison: Next Services Consumer Council meet-ing is Thursday, 5 December at 1430 at Mustin Beach Offic-ers Club. RADM Engel will represent PMOAA. Scholarship: CDR Milheim will be the new chair of this committee. He will schedule a time to meet with CAPT Fra-zier for turnover.
OLD BUSINESS MOAA Level of Excellence Award: CDR Milheim accept-ed the PMOAA 5 Star award at the MOAA Colorado Springs meeting last weekend. Command Chaplain: The position description and format for the annual Memorial Service were given to LtCol Sand-ers for action. Member Spotlight: LtCol Sanders will have a featured arti-cle in the December Beacon. Veteran’s Day Parade: It was a beautiful day for a parade but the PMOAA showing was poor. Thanks to CDR Milheim, CAPT Frazier and Maj Booton for participating. Considering the size of our chapter, we should have more participants. Suggestions were offered on how to stimulate interest next year. Better planning is needed for future events. November Annual Business Meeting: Revisions to the Bylaws and the proposed slate of officers/board members were approved by the membership. CDR Milheim over-looked committee reports. A check in the amount of $500 was presented to Heidi Blair (USO).
8
Legislative and Benefits Update (Continued from page 2)
Jeu responded that all options have “direct impacts” and that they would shift the cost burden onto the military family. Gordy noted, “We would be taxing military families for their own benefit.” Heck, a commissary patron himself, retorted, “If the shift allows the program to function, why not?”
Colonel Pappas Comment: Representative Heck’s simplis-tic comment suggests that the alternative to increasing fees would be the demise of military commissaries. Such an im-plication is clearly without serious merit but may well be, or become, conventional wisdom. Commissaries have been a vital component of military operations from the outset. The troops had to be fed and thus commissaries were estab-lished to storehouse foodstuff for mess halls. With the pas-sage of time, married military members were authorized to make at-cost purchases from the commissaries for them-selves and their families and were granted an allowance comparable to the cost of food for a troop who resided in barracks. The at-cost benefit thus accrued to military fami-lies as a collateral benefit of the member’s service. There-fore, it is given that food service is vital to military opera-tions and the commissary is a vital component that is fund-ed in part by appropriated funds. The fact that members and retirees benefit is a low or insignificant cost collateral benefit that accrues to those who do. As it is, commissaries are in part funded with existing fees that are already in place paid by patrons. Appropriated funds cover overhead costs such as:
(1) Salaries and wages of employees of the United States, host nations, and contractors supporting commissary store operations. (2) Utilities. (3) Communications. (4) Operating supplies and services. (5) Second destination transportation costs within or outside the United States. (6) Any cost associated with above-store-level management or other indirect support of a commissary store or a central product processing facility, including equipment mainte-nance and information technology costs.
But these costs are significantly offset by the value of re-
demption coupons offered by suppliers.
The fundamental question is how much of the cost of mili-tary commissaries should service members be required to bear in addition to the fractional share of Federal taxes they pay that are attributed to commissaries? This is reminis-cent of a proposal made during the Vietnam War which would have required military members to pay taxes on the cost of transportation from their home base to Vietnam and return. That idea came under fire and was buried but not before it received serious consideration.
So there you have it! - The plan? - Chip away at this valuable earned benefit.
There are rumors out there. The solution discussed at Wednesday’s hearing to save this earned, valuable, non-pay compensation benefit? Charge us more! This is only the beginning!
3
Collateral Effect of Obama Care on Military Health Care (Source: Military.Com) On Monday (November 18th, 2013), the White House pressed the Pentagon to rein in Tricare costs and begin a new round of base closings as the Senate took up the National Defense Authorization Act on the military’s 2014 budget.
There are a number of areas of agreement with the initial markup of the Senate Armed Services Committee on the NDAA, but the administration "has serious concerns with certain provisions," Office of Management and Budget officials said in a lengthy response to the markup. OMB called on SASC to control Tricare costs at the Depart-ment of Defense "while keeping retired beneficiaries' share of these costs well below the levels experienced when the Tricare program was implemented in the mid-1990s."
Slowing the growth of Tricare costs would result in sav-ings of $902 million in fiscal year 2014 and $9.3 billion
through fiscal year 2018. Those savings were needed to offset projected increases in personnel costs, OMB said.
President Obama has proposed slowing this growth by introducing a new set of enrollment fees and higher co-pays to retirees under the age of 65. The Pentagon pro-posed an annual enrollment fee based on a percentage of retired pay for Medicare-eligible retirees in the Tricare For Life Program. Working age retirees in the Tricare Stand-ard and Tricare Extra programs also would face new an-nual enrollment fees phased in over five years.
The White House also proposed an increase to the current enrollment fee for working age retirees in the Tricare Prime program phased in over the next four years. As for co-pays, the White House has proposed increasing Tricare Prime co-pays for retirees and their beneficiaries by $4 for medical visits not related to mental health.
Pentagon leaders have said that spiraling personnel costs, to include healthcare, are eating up too much of the military's annual budgets and putting training and readiness missions at risk.
"Without serious attempts to achieve significant savings in this area, which consumes roughly half of the DoD budget and is increasing every year, we risk becoming an unbal-anced force," Secretary of Defense Hagel said.
The official Statement of Administration Policy in re-sponse to the initial Senate markup wasn't limited to Tri-care. OMB officials also "strongly objected" to the markup's proposal for a major review of the infrastructure at overseas facilities before considering another round of the Base Realignment and Closure Commission proce-dure for bases in the U.S.
"Without authorization for a new round of BRAC, DoD may not properly align the military's infrastructure with the needs of the evolving force structure, which is critical to ensuring that limited resources are available for the high-est priorities of the Armed Forces," the OMB statement said.
(Continued on page 4)
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
4
FINANCIAL PLANNING – “THE LADY BIRD DEED”
Among the goals of a good financial plan are the avoid-ance of Federal Estate Tax and the avoidance of Probate Court involvement in the settlement of your estate.
FEDERAL ESTATE TAX: Now that the exclusion level for the Federal Estate Tax is at $5.250 million (and indexed for future inflation), tax is no longer a problem for most of us with moderate estates, so we’ll skip this one for now.
PROBATE: Probate however, remains a major issue for all of us and eliminating Probate Court involvement can save your estate considerable monetary expenses as well as significantly reduce the time it takes to settle your es-tate.
The cost of probate itself is not all that expensive. The cost of probate generally results from the legal expenses of hiring an attorney to take your case through probate. Flori-da statutes require the services of an attorney to represent the estate through the probate process if there is more than a single beneficiary. And, even if there is but a single beneficiary, the process is confusing enough so that you will want to engage a qualified Probate Attorney to handle your case if you need to take it through probate. Florida statutes also set the attorney fee at 3% of the value of the Probate Estate.
With regard to probate, it is important to remember that ANYTHING titled in a deceased persons own individual name MUST go through probate before title can be changed or assets distributed to a designated beneficiary. Assets with joint ownership or titled in the name of a trust or assets with designated beneficiaries are NOT subject to probate. Accordingly, for most married couples, it is not too difficult to title your assets so as to escape pro-bate. However, when one of you passes away and the survivor takes title in his or her own name, the estate again becomes subject to probate.
In situations like this, there still are legitimate ways to title your accounts to avoid the probate problem. Of course, you can name one of your children as joint owner, but this alternative is so replete with other problems that naming a joint owner is not recommended. Instead, for monetary accounts such as bank accounts, naming a “Pay on Death” (POD) beneficiary is much preferred whereupon your demise, any balance in your accounts will be distribut-ed to your named beneficiaries instead of to your estate. For brokerage accounts this process is called a “Transfer on Death” (TOD). In you have a Trust, and have titled all of your assets in the Trust, you will again avoid probate. This leaves real estate as one of the major issues in devel-oping a plan to avoid probate. All too often, real estate is titled in the name of the survivor (or allowed to remain titled in joint name with the deceased joint owner). This makes the property subject to probate upon the demise of the sur-vivor. Here too, there are actions you can take to eliminate your real estate from the probate process.
Again, you can name a child (or children) as joint owner, but as with other accounts, this action is replete with prob-lems. For one, such action would trigger a gift tax for the
amount of the portion “gifted” to the new joint owners as well as making the value of their share subject to any judgment against them or, God forbid, they are involved in a divorce in which case their share would be up for grabs by a divorcing spouse. So, joint own-ership would not be a good idea. Putting the property into a revocable living trust would be a great idea, but somewhat expensive unless you already have a trust in place.
As an alternative, the State of Florida recognizes an ENHANCED LIFE ESTATE DEED (commonly known as a “Lady Bird Deed”) that allows property to pass automatically to one or more designated recipients at death, without the need for probate. A Lady Bird Deed allows you to name someone to receive the property at your death while reserving the right to use the property during your lifetime. Unlike a Life Estate Deed, you are able to deal with the property during your lifetime without the consent of the remaindermen beneficiaries.
HOW A LADY BIRD DEED WORKS
Lady Bird Deeds are used to avoid probate. Here’s how it works:
You sign a deed transferring your real estate to a person (or group of people) called remaindermen or remainder beneficiaries at your death, but retain-ing the right to sell, use, and otherwise deal with the property during your lifetime.
If you decide to sell, mortgage, or otherwise deal with the property during your lifetime, you are able to do so without the consent of the remainder-men.
Upon your death, your remainder beneficiaries simply file your death certificate in the land record’s office to serve as proof of your death and this allows the property to be transferred to the remaindermen without the need for probate.
A Lady Bird Deed will cost approximately $300 – a far cry from the thousands of dollars required to probate your estate.
The bottom line here is that if you have taken steps to eliminate probate for all of your estate except for the real estate, you may want to consider completing ac-tion to execute a FLORIDA ENHANCED LIFE DEED available through the offices of most Probate Attor-neys.
Captain Bill Mayer, USN (Ret), Chairman, Survivor Assistance Committee
This column is designed to provide accurate and au-thoritative information in regard to subject matter cov-ered. It is published with the understanding that the author is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, services of a competent professional person should be sought.
7
Legislative and Benefits Update (Continued from page 3)
The administration objected to several other provisions in the markup while commending the Committee for working to offer stronger protections for sexual assault victims in the ranks.
The SASC markup would amend Article 60 of the Uniform Code of Military Justice to limit the authority of a convening authority to modify the findings of a court-martial on speci-fied sexual offenses, and also require automatic higher-level review of any decision by a commander not to prose-cute a sexual assault allegation.
However, the markup would not take sexual assault cases and other major crimes out of the chain of command as proposed by Sen. Kirsten Gillibrand, D-N.Y. Gillibrand's proposed amendment to the NDAA on stripping command-ers of their courts martial authority was expected to be de-bated later this week.
Colonel Pappas comment: I provided extensive remarks on the Senator’s recommendation in the June Commentary. In introducing the markup, Sen. Carl Levin, D-Mich., the SASC chairman, said the "bipartisan bill provides for our nation's defense and upholds our obligations to our men and women in uniform and their families."
Levin, who opposes the Gillibrand amendment, said "an important part of keeping faith with service members is ad-dressing the plague of sexual assaults in our military, and the bill includes the strongest, most effective approach to combating sexual assault."
The SASC markup authorizes an FY 2014 active duty end strength for the Army of 520,000; the Navy, 323,600; the Marine Corps, 190,200; and the Air Force, 327,600.
The Committee also authorized a one percent across-the-board pay raise for all members of the uniformed services in fiscal year 2014, a proposal backed by OMB.
Colonel Pappas Commentary: The Chinese Proverb, “May you live in interesting times” is in full bloom in contemporary America…and for that matter the world. My comments re-garding the potential for additional charges at military com-missaries is symptomatic of wider issues confronted by an administration hell-bent on “spreading the wealth around.” The notion that everyone deserves a standard of living is ludicrous at best and potentially destructive to the nation. People came to this nation to build a better life not for a handout. But handout or receiving some of the “spread around wealth” reflects the attitudes of significant numbers of contemporary Americans.
The problem is: where does the wealth come from to do that? Income must be generated in order to pay taxes and thus have funds available to spread around. I have fre-quently written that there are two kinds of wealthy people: those who make it; and, those who take it. I have a serious problem taking from those who make it and no problem whatever heavily taxing those who take it. There is one kind of low income taker, and all right thinking people should eschew, taking for career politicians want your vote in ex-change.
Sequestration has been blamed as responsible for current economic difficulties, in a phrase, “Bovine Scatology.” The source of contemporary economic difficulties lies with those who are killing the goose that laid the golden egg. That the government would consider funding give- away projects on the backs of those who earn, i.e. workers, business owners or pro-tect those who do, i.e. military members, is upside down thinking and is destined to damage if not de-stroy the economy. At some point everyone will have to work or be confronted with the old axiom, “no work, no eat.” That point has two potential and divergent basis, either the free market economy will be encour-aged and thrive, thus creating jobs and providing a means of individual self support; or the government will take over the economy and the literal result will be slave labor, wherein everyone must work in order to eat, but they will be working for the “single payer,” i.e. the Government. That will be the ultimate result if not the objective of those who want to “spread the wealth around.” Semper Fidelis, Happy Thanksgiving and Peace,
Col Bob Pappas Colonel Pappas’ opinions expressed herein do not necessarily reflect the official positions of MOAA or the Pensacola Chapter of MOAA.
Member Spotlight: “Where Would We Be?”
Ron and Bunny Cummins wonder what their lives would have been like if they had decided on a career other than the Navy; or if they had not met some of the role models they encountered in the Navy (including our own CAPT Bart Walsh): or if they had allowed others’ expectations (especially of a “woman’s place”) to limit their choices. This is the story of some of those what-ifs.
After high school, Ron went to work at the Boeing air-craft plant in Everett, WA. In 1962, when Boeing laid him off in a major draw-down, he had choices: trans-fer to Boeing’s facility in Seattle, find another job in his hometown or see the world in the Navy. Travel sounded pretty good, especially when enlisting in the Navy might be a good way to avoid being drafted into the Army. It had happened to Elvis four years earlier, so it could happen to anyone.
Originally, he signed up for the standard four years active, two years reserve. Ron’s naval career could have been short-lived; twice he was incarcerated in
the brig, but he says he would later “own” the brig. Describing that first tour, Ron says, “I didn’t have a lick o’ sense back then. Didn’t go out the front door with a full box of tools, if you know what I mean.” Once he was in, he couldn’t WAIT to get out. But once he was OUT, he did everything in his power to get back IN.
(Continued on page 5)
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
5
Member Spotlight: “Where Would We Be?” (Continued from page 4)
Later he realized he had to choose between two potential role models: his division officer, LT Amor, an Academy grad who later retired as a Commander, or Ron’s immediate supervisor, whom Ron described as “about as smart as a 100 pound box of rocks.” Which one would he emulate? He eventually made the right decision, but until he did, it seemed obvious to every-one that Ron Cummins was not career Navy material.
After a few years on the straight and narrow, Ron applied to become an officer. He thought the interview went pretty well until the interviewer said, “You don’t remember me, do you?” It was his former division officer. At that moment, Ron gave up any hope of being an officer. But three months later, he got a call, he made the cut. LT Amor believed in him and the changes Ron had made in his life, Years later, when Ron and Bunny’s son Michael graduated from the Naval Academy, CDR Amor joined them for the celebration.
Ron met Bunny at Western Washington State College in Bel-lingham. After graduation, Ron served as a recruiter at NAS Seattle, so they saw each other frequently.. Her dad, a retired Army officer, told Bunny, “We know you’re gonna flunk out because you’re seeing Ron so much, but we’re not worried because we know you can type.” Bunny knew she could do a lot more than type -- she graduated in June 1970, almost a month after their wedding. Bunny soon discovered the chal-lenges of married Navy life as they moved to Hawaii before Ron deployed to Southeast Asia. She was on her own for 18 months handling all the household chores – from paying the bills to changing oil filters to mowing with a “bread-burner” – a motor-less, rotary-type push mower. Ron was seeing the world while Bunny was mowing the lawn.
Bunny took a job in the credit department of the Caterpillar Company. While Ron was deployed to Guam – where his CO had issued strict orders for the men NOT to bring their wives – Bunny’s boss needed her to collect a $250,000 debt from a company on Guam. Bunny told the CO (who wasn’t there to hear it) “You’re not the boss of me.” Off she went to collect her debt, and spend some time with her husband. Ron said Bunny never thought about what that did to his fitness reports.
In 1971, Ron was a victim of the Reduction in Force (RIF) as the military drew down from the long ordeal in Vietnam. Back in Seattle, Ron became a school teacher and returned to the reserves, flying in P-2 patrol aircraft out of Whidbey Island, not far from his hometown. As the squadron transitioned to P-3s, Ron applied for the TAR program (reservists serving in full-time billets) but he didn’t get it. However, Congress had passed legislation appropriating funds for additional reserve stations, more officers were needed and Ron was recalled to active duty at NAS Dallas.
Ron’s career again hit a roadblock when he was not selected for “augmentation” which allows reserve officers to remain on active duty. During this time, Bunny volunteered to help at a conference. Her post was just outside a meeting room where she heard several admirals say that due to the RIF, the Navy was short on personnel from a particular year group – Ron’s.
The conference culminated in a dinner attended by Fred Da-vidson, Deputy Secretary of the Navy for Reserve Affairs, and John Lehman, Secretary of the Navy. Bunny wrote a letter to
the Honorable Mr. Lehman that said (among other things), “I don’t believe this hogwash; my husband is in that year group.” She placed the letter on Mr. Lehman’s plate just before the dignitaries arrived.
Later, Ron heard Mr. Davidson tell his wife, “Bunny, that was quite a letter you wrote.” He was shocked but it worked; Ron was selected for augmentation, allowing him to stay on active duty. His next assignment was to the Na-vy Yard in Washington, DC, as CO of the Armed Forces Police, DC – remember the brig?
Ron and Bunny had been married 13 years, with Bunny faithfully following her sailor from one duty station to the next. She worked everywhere they went but it was frus-trating; she could never build up seniority in this vagabond existence. Then one day, Ron’s boss urged Bunny to join
the Navy as a reservist. As a college graduate, Bunny could have become an officer but the officer age cut-was 35 and Bunny was almost 36. So she enlisted and started a career as an over-qualified yeoman.
At the Navy Yard, Bunny and Ron both crossed paths with two living legends: RADM Grace Hopper, pioneer of Naval computing, and ADM Hyman Rickover, pioneer of the nu-clear Navy. One day RADM Hopper, upset that some of her computers had vanished, came storming into CDR Cummins’ office which happened to be directly below hers. She thought the head of Armed Forces Police could prevent the loss of her hardware. (Actually he had no juris-diction over anything INSIDE the building.)
As she entered the room, “Amazing Grace” was yelling something to the effect of, “You’d think the head of police could stop my computers from walking away, when his office is directly below mine!” As six foot plus CDR Cum-mins started to respectfully rise, the diminutive Hopper (whom Bunny said came up to her elbow) stopped him with an abrupt gesture and a curt: “Sit down Sonny; I wan-na look you in the eye.” Bunny recalls an encounter at a “dining out” at the Navy Yard. Since they were in uniform, the legendary computer genius was well aware that Bunny was enlisted. She asked Bunny what she did, and then why she wasn’t an officer. Bunny replied that, “They told me I was too old.” ADM Hopper replied, “Dearie, it’s best someone tell you at 35 that you’re too old, so that later it doesn’t come as such a shock.”
Toward the end of our conversation, Ron grew philosophi-cal and asked, “Where would I be…?” Many of us have asked the question in light of sometimes improbable be-ginnings to our military careers. “Where would I be if I hadn’t joined the Navy to avoid being drafted into the Ar-my? Still teaching school? Maybe working for Boeing all those years right there in Everett? What experiences would our kids have missed if we had stayed [between stints in the Navy] in Castle Rock, WA, 31 miles from Mt. St Helens – before it blew its top off?” He stopped as he contemplated more dire consequences of that timeline. Where would we be indeed? Bunny and Ron both smile with great satisfaction as they compare where they might have been with where they HAVE been and are today.
Alan Sanders
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
6
November MOAA Photos (Continued from page 1)
Photos courtesy of Elaine Ciardello and Christine Frazier
RADM Engel and Mrs. Martha Simpkins
LCDR Ray and CDR Paula
Judd LtCol El and Norma Reichert,
Martha Simpkins
Hal Boyles and Gary Hauver,
Bartenders Millie Gregg and Jim Williams
Col Jack Stenger and Kathy CAPT and Mrs. Barney Walsh Col Susan Morgan LtCol Walter Limbach
CDR and Mrs. Henry Buckley LCDR and Mrs. RIchard Litzinger,
LtCol and Mrs. Albert Stumpe Maj George and Judy
Gilbert
CPT and Mrs. Bernard Wachter
USO Director Heidi Blair, CAPT James Frazier
LCDR Trumin Brown, new member
CDR Mike McCrabb, new member
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
4
FINANCIAL PLANNING – “THE LADY BIRD DEED”
Among the goals of a good financial plan are the avoid-ance of Federal Estate Tax and the avoidance of Probate Court involvement in the settlement of your estate.
FEDERAL ESTATE TAX: Now that the exclusion level for the Federal Estate Tax is at $5.250 million (and indexed for future inflation), tax is no longer a problem for most of us with moderate estates, so we’ll skip this one for now.
PROBATE: Probate however, remains a major issue for all of us and eliminating Probate Court involvement can save your estate considerable monetary expenses as well as significantly reduce the time it takes to settle your es-tate.
The cost of probate itself is not all that expensive. The cost of probate generally results from the legal expenses of hiring an attorney to take your case through probate. Flori-da statutes require the services of an attorney to represent the estate through the probate process if there is more than a single beneficiary. And, even if there is but a single beneficiary, the process is confusing enough so that you will want to engage a qualified Probate Attorney to handle your case if you need to take it through probate. Florida statutes also set the attorney fee at 3% of the value of the Probate Estate.
With regard to probate, it is important to remember that ANYTHING titled in a deceased persons own individual name MUST go through probate before title can be changed or assets distributed to a designated beneficiary. Assets with joint ownership or titled in the name of a trust or assets with designated beneficiaries are NOT subject to probate. Accordingly, for most married couples, it is not too difficult to title your assets so as to escape pro-bate. However, when one of you passes away and the survivor takes title in his or her own name, the estate again becomes subject to probate.
In situations like this, there still are legitimate ways to title your accounts to avoid the probate problem. Of course, you can name one of your children as joint owner, but this alternative is so replete with other problems that naming a joint owner is not recommended. Instead, for monetary accounts such as bank accounts, naming a “Pay on Death” (POD) beneficiary is much preferred whereupon your demise, any balance in your accounts will be distribut-ed to your named beneficiaries instead of to your estate. For brokerage accounts this process is called a “Transfer on Death” (TOD). In you have a Trust, and have titled all of your assets in the Trust, you will again avoid probate. This leaves real estate as one of the major issues in devel-oping a plan to avoid probate. All too often, real estate is titled in the name of the survivor (or allowed to remain titled in joint name with the deceased joint owner). This makes the property subject to probate upon the demise of the sur-vivor. Here too, there are actions you can take to eliminate your real estate from the probate process.
Again, you can name a child (or children) as joint owner, but as with other accounts, this action is replete with prob-lems. For one, such action would trigger a gift tax for the
amount of the portion “gifted” to the new joint owners as well as making the value of their share subject to any judgment against them or, God forbid, they are involved in a divorce in which case their share would be up for grabs by a divorcing spouse. So, joint own-ership would not be a good idea. Putting the property into a revocable living trust would be a great idea, but somewhat expensive unless you already have a trust in place.
As an alternative, the State of Florida recognizes an ENHANCED LIFE ESTATE DEED (commonly known as a “Lady Bird Deed”) that allows property to pass automatically to one or more designated recipients at death, without the need for probate. A Lady Bird Deed allows you to name someone to receive the property at your death while reserving the right to use the property during your lifetime. Unlike a Life Estate Deed, you are able to deal with the property during your lifetime without the consent of the remaindermen beneficiaries.
HOW A LADY BIRD DEED WORKS
Lady Bird Deeds are used to avoid probate. Here’s how it works:
You sign a deed transferring your real estate to a person (or group of people) called remaindermen or remainder beneficiaries at your death, but retain-ing the right to sell, use, and otherwise deal with the property during your lifetime.
If you decide to sell, mortgage, or otherwise deal with the property during your lifetime, you are able to do so without the consent of the remainder-men.
Upon your death, your remainder beneficiaries simply file your death certificate in the land record’s office to serve as proof of your death and this allows the property to be transferred to the remaindermen without the need for probate.
A Lady Bird Deed will cost approximately $300 – a far cry from the thousands of dollars required to probate your estate.
The bottom line here is that if you have taken steps to eliminate probate for all of your estate except for the real estate, you may want to consider completing ac-tion to execute a FLORIDA ENHANCED LIFE DEED available through the offices of most Probate Attor-neys.
Captain Bill Mayer, USN (Ret), Chairman, Survivor Assistance Committee
This column is designed to provide accurate and au-thoritative information in regard to subject matter cov-ered. It is published with the understanding that the author is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, services of a competent professional person should be sought.
7
Legislative and Benefits Update (Continued from page 3)
The administration objected to several other provisions in the markup while commending the Committee for working to offer stronger protections for sexual assault victims in the ranks.
The SASC markup would amend Article 60 of the Uniform Code of Military Justice to limit the authority of a convening authority to modify the findings of a court-martial on speci-fied sexual offenses, and also require automatic higher-level review of any decision by a commander not to prose-cute a sexual assault allegation.
However, the markup would not take sexual assault cases and other major crimes out of the chain of command as proposed by Sen. Kirsten Gillibrand, D-N.Y. Gillibrand's proposed amendment to the NDAA on stripping command-ers of their courts martial authority was expected to be de-bated later this week.
Colonel Pappas comment: I provided extensive remarks on the Senator’s recommendation in the June Commentary. In introducing the markup, Sen. Carl Levin, D-Mich., the SASC chairman, said the "bipartisan bill provides for our nation's defense and upholds our obligations to our men and women in uniform and their families."
Levin, who opposes the Gillibrand amendment, said "an important part of keeping faith with service members is ad-dressing the plague of sexual assaults in our military, and the bill includes the strongest, most effective approach to combating sexual assault."
The SASC markup authorizes an FY 2014 active duty end strength for the Army of 520,000; the Navy, 323,600; the Marine Corps, 190,200; and the Air Force, 327,600.
The Committee also authorized a one percent across-the-board pay raise for all members of the uniformed services in fiscal year 2014, a proposal backed by OMB.
Colonel Pappas Commentary: The Chinese Proverb, “May you live in interesting times” is in full bloom in contemporary America…and for that matter the world. My comments re-garding the potential for additional charges at military com-missaries is symptomatic of wider issues confronted by an administration hell-bent on “spreading the wealth around.” The notion that everyone deserves a standard of living is ludicrous at best and potentially destructive to the nation. People came to this nation to build a better life not for a handout. But handout or receiving some of the “spread around wealth” reflects the attitudes of significant numbers of contemporary Americans.
The problem is: where does the wealth come from to do that? Income must be generated in order to pay taxes and thus have funds available to spread around. I have fre-quently written that there are two kinds of wealthy people: those who make it; and, those who take it. I have a serious problem taking from those who make it and no problem whatever heavily taxing those who take it. There is one kind of low income taker, and all right thinking people should eschew, taking for career politicians want your vote in ex-change.
Sequestration has been blamed as responsible for current economic difficulties, in a phrase, “Bovine Scatology.” The source of contemporary economic difficulties lies with those who are killing the goose that laid the golden egg. That the government would consider funding give- away projects on the backs of those who earn, i.e. workers, business owners or pro-tect those who do, i.e. military members, is upside down thinking and is destined to damage if not de-stroy the economy. At some point everyone will have to work or be confronted with the old axiom, “no work, no eat.” That point has two potential and divergent basis, either the free market economy will be encour-aged and thrive, thus creating jobs and providing a means of individual self support; or the government will take over the economy and the literal result will be slave labor, wherein everyone must work in order to eat, but they will be working for the “single payer,” i.e. the Government. That will be the ultimate result if not the objective of those who want to “spread the wealth around.” Semper Fidelis, Happy Thanksgiving and Peace,
Col Bob Pappas Colonel Pappas’ opinions expressed herein do not necessarily reflect the official positions of MOAA or the Pensacola Chapter of MOAA.
Member Spotlight: “Where Would We Be?”
Ron and Bunny Cummins wonder what their lives would have been like if they had decided on a career other than the Navy; or if they had not met some of the role models they encountered in the Navy (including our own CAPT Bart Walsh): or if they had allowed others’ expectations (especially of a “woman’s place”) to limit their choices. This is the story of some of those what-ifs.
After high school, Ron went to work at the Boeing air-craft plant in Everett, WA. In 1962, when Boeing laid him off in a major draw-down, he had choices: trans-fer to Boeing’s facility in Seattle, find another job in his hometown or see the world in the Navy. Travel sounded pretty good, especially when enlisting in the Navy might be a good way to avoid being drafted into the Army. It had happened to Elvis four years earlier, so it could happen to anyone.
Originally, he signed up for the standard four years active, two years reserve. Ron’s naval career could have been short-lived; twice he was incarcerated in
the brig, but he says he would later “own” the brig. Describing that first tour, Ron says, “I didn’t have a lick o’ sense back then. Didn’t go out the front door with a full box of tools, if you know what I mean.” Once he was in, he couldn’t WAIT to get out. But once he was OUT, he did everything in his power to get back IN.
(Continued on page 5)
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
USO/Sam’s Club Update: Per CAPT Walsh, checks from Sam’s Club and Walmart will probably be delivered before Christmas. No response yet from our request to MOAA/USAA. Other: CDR Milheim asked MAJ Werner to make arrange-ments for him to meet with the PMOAA social members to discuss social member status.
NEW BUSINESS Web Site Training: Three people have volunteered for a PMOAA web site training session. This will be held on Sat-urday, 11 January 2014, at a place and time to be deter-mined. RADM Engel is working with LTC Kuklish on a site. A couple board members indicated they want to audit the training session. Christmas Dinner Dance: Everything is all set for Thurs-day, 5 December at the Pensacola Yacht Club starting at 1730. This is a black tie optional event. Everyone is asked to participate in the Toys for Tots program that evening. Please bring an unwrapped toy (no guns) and place in the designated area. Wreaths Across America: PMOAA purchased 4 wreaths in support of the program. The ceremony will be held on Saturday, 14 December at Barrancas National Cemetery starting at 1100 hours. All members are encouraged to at-tend. PMOAA Advertising at the Naval Aviation Museum: CDR Brewer contacted a member of the museum staff seeking permission to display MOAA and PMOAA chapter brochures in the entrance area/foyer of the Museum. He was advised that there are so many organizations that have similar requests, that the policy is in place to decline those requests. We would be permitted to set up a kiosk in the parking lot on an agreed day to “show our wares”, answer questions, and pass out material. The board agreed to set up a display outside at a time/date to be determined. Online Chapter Dues: The most recent proposal by MOAA to assist chapters by offering an online service for paying chapter dues was discussed at length. It was felt there was no real benefit to PMOAA. The board unanimously agreed not to participate in this program. CAPT Walsh will notify MOAA of our decision. January Installation and Memorial Service: LtCol Jim Conner, President of the Florida Council of Chapters will be the installation officer. The Sons of the American Revolu-tion Color Guard (four people) will participate in the Memori-al Service. We might want to consider inviting Col Barry Wright, Director, Council and Chapter Affairs officer. Other: CDR Brewer inquired if PMOAA ever advertised upcoming events in the Gosport. We used to do it when we had a public relations person. Currently the only item pub-lished in the Gosport is information on the scholarship pro-gram. A simple format could be developed to accommodate monthly notification of our meetings. It would be a good way to get the attention of the active duty personnel. CDR Brewer will consider taking on this endeavor in January.
The deadline for the Beacon is NLT COB on Monday, 25 November. The next board meeting will be Tuesday, 10 December 2013 at 1530 at Azalea Trace. Meeting ad-journed at 1655. Respectfully submitted,
Joan M. Engel, Secretary
PMOAA BOARD OF DIRECTORS MEETING
19 November 2013
President Milheim called the meeting to order at 1530 with the following members present: CDR Milheim, LCDR Wilhite, RADM Engel, CAPT Walsh, CDR Brewer, LtCol Sanders, MAJ Werner and Col Pappas, legislative chair. Absent: Maj Fitzgerald, LTC Kuklish and Maj Booton. A motion was made by LCDR Wilhite, seconded by LtCol Sanders to accept the October 2013 minutes. Motion car-ried.
Treasurer Report: Checking and RSA Savings account balances as of 24 October 2013 were presented. There are two outstanding checks: a check for $400 for The Blenders (band for Christmas Dinner Dance) and $80 for Azalea Trace wait staff at the 14 November member dinner. A $500 check was presented to Heidi Blair for the USO on 14 November. A motion was made by LtCol Sanders, second-ed by Maj Werner that the treasurer report be approved. Motion carried.
COMMITTEE REPORTS Legislative: Col Pappas will address the Affordable Care Act and identify some of the items as they pertain to the mil-itary. Proposed budget cutting options for concurrent re-ceipt will also be addressed. A question was posed as to moving COLA from 1.8% to 1% - is this correct? Membership: No official report. Who is reporting new members to MOAA? MOAA is reporting we have 13 new members to date. LCDR Wilhite has requested information from the data base manager regarding the exact number of new members. Once this information is received, he will follow the MOAA reporting procedures. Survivor Assistance: No report but CAPT Mayer has sub-mitted an article for the December Beacon. Hospital Liaison: Next Services Consumer Council meet-ing is Thursday, 5 December at 1430 at Mustin Beach Offic-ers Club. RADM Engel will represent PMOAA. Scholarship: CDR Milheim will be the new chair of this committee. He will schedule a time to meet with CAPT Fra-zier for turnover.
OLD BUSINESS MOAA Level of Excellence Award: CDR Milheim accept-ed the PMOAA 5 Star award at the MOAA Colorado Springs meeting last weekend. Command Chaplain: The position description and format for the annual Memorial Service were given to LtCol Sand-ers for action. Member Spotlight: LtCol Sanders will have a featured arti-cle in the December Beacon. Veteran’s Day Parade: It was a beautiful day for a parade but the PMOAA showing was poor. Thanks to CDR Milheim, CAPT Frazier and Maj Booton for participating. Considering the size of our chapter, we should have more participants. Suggestions were offered on how to stimulate interest next year. Better planning is needed for future events. November Annual Business Meeting: Revisions to the Bylaws and the proposed slate of officers/board members were approved by the membership. CDR Milheim over-looked committee reports. A check in the amount of $500 was presented to Heidi Blair (USO).
8
Legislative and Benefits Update (Continued from page 2)
Jeu responded that all options have “direct impacts” and that they would shift the cost burden onto the military family. Gordy noted, “We would be taxing military families for their own benefit.” Heck, a commissary patron himself, retorted, “If the shift allows the program to function, why not?”
Colonel Pappas Comment: Representative Heck’s simplis-tic comment suggests that the alternative to increasing fees would be the demise of military commissaries. Such an im-plication is clearly without serious merit but may well be, or become, conventional wisdom. Commissaries have been a vital component of military operations from the outset. The troops had to be fed and thus commissaries were estab-lished to storehouse foodstuff for mess halls. With the pas-sage of time, married military members were authorized to make at-cost purchases from the commissaries for them-selves and their families and were granted an allowance comparable to the cost of food for a troop who resided in barracks. The at-cost benefit thus accrued to military fami-lies as a collateral benefit of the member’s service. There-fore, it is given that food service is vital to military opera-tions and the commissary is a vital component that is fund-ed in part by appropriated funds. The fact that members and retirees benefit is a low or insignificant cost collateral benefit that accrues to those who do. As it is, commissaries are in part funded with existing fees that are already in place paid by patrons. Appropriated funds cover overhead costs such as:
(1) Salaries and wages of employees of the United States, host nations, and contractors supporting commissary store operations. (2) Utilities. (3) Communications. (4) Operating supplies and services. (5) Second destination transportation costs within or outside the United States. (6) Any cost associated with above-store-level management or other indirect support of a commissary store or a central product processing facility, including equipment mainte-nance and information technology costs.
But these costs are significantly offset by the value of re-
demption coupons offered by suppliers.
The fundamental question is how much of the cost of mili-tary commissaries should service members be required to bear in addition to the fractional share of Federal taxes they pay that are attributed to commissaries? This is reminis-cent of a proposal made during the Vietnam War which would have required military members to pay taxes on the cost of transportation from their home base to Vietnam and return. That idea came under fire and was buried but not before it received serious consideration.
So there you have it! - The plan? - Chip away at this valuable earned benefit.
There are rumors out there. The solution discussed at Wednesday’s hearing to save this earned, valuable, non-pay compensation benefit? Charge us more! This is only the beginning!
3
Collateral Effect of Obama Care on Military Health Care (Source: Military.Com) On Monday (November 18th, 2013), the White House pressed the Pentagon to rein in Tricare costs and begin a new round of base closings as the Senate took up the National Defense Authorization Act on the military’s 2014 budget.
There are a number of areas of agreement with the initial markup of the Senate Armed Services Committee on the NDAA, but the administration "has serious concerns with certain provisions," Office of Management and Budget officials said in a lengthy response to the markup. OMB called on SASC to control Tricare costs at the Depart-ment of Defense "while keeping retired beneficiaries' share of these costs well below the levels experienced when the Tricare program was implemented in the mid-1990s."
Slowing the growth of Tricare costs would result in sav-ings of $902 million in fiscal year 2014 and $9.3 billion
through fiscal year 2018. Those savings were needed to offset projected increases in personnel costs, OMB said.
President Obama has proposed slowing this growth by introducing a new set of enrollment fees and higher co-pays to retirees under the age of 65. The Pentagon pro-posed an annual enrollment fee based on a percentage of retired pay for Medicare-eligible retirees in the Tricare For Life Program. Working age retirees in the Tricare Stand-ard and Tricare Extra programs also would face new an-nual enrollment fees phased in over five years.
The White House also proposed an increase to the current enrollment fee for working age retirees in the Tricare Prime program phased in over the next four years. As for co-pays, the White House has proposed increasing Tricare Prime co-pays for retirees and their beneficiaries by $4 for medical visits not related to mental health.
Pentagon leaders have said that spiraling personnel costs, to include healthcare, are eating up too much of the military's annual budgets and putting training and readiness missions at risk.
"Without serious attempts to achieve significant savings in this area, which consumes roughly half of the DoD budget and is increasing every year, we risk becoming an unbal-anced force," Secretary of Defense Hagel said.
The official Statement of Administration Policy in re-sponse to the initial Senate markup wasn't limited to Tri-care. OMB officials also "strongly objected" to the markup's proposal for a major review of the infrastructure at overseas facilities before considering another round of the Base Realignment and Closure Commission proce-dure for bases in the U.S.
"Without authorization for a new round of BRAC, DoD may not properly align the military's infrastructure with the needs of the evolving force structure, which is critical to ensuring that limited resources are available for the high-est priorities of the Armed Forces," the OMB statement said.
(Continued on page 4)
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
2
DONATION FORM Please accept my/our gift of $_______ to support the
PMOAA Scholarship Fund.
This gift is being made in honor of, or, in memory of
____________________________.
Donor Information:
Name ___________________________________
Address _________________________________
Phone______________Email ________________
Please send an acknowledgement to:
Name __________________________________
Address _________________________________
Your gift is tax deductible to the extent allowable by law. Mail your donation payable to:
PMOAA, P.O. Box 17728, Pensacola, FL 32501
Thank you for your support.
AUXILIARY CORNER
MOAA defines auxiliary members as the survivors of for-mer national MOAA members who are deceased or sur-vivors of deceased individuals, who would, if living, be eligible for membership. Auxiliary members can be active chapter members. Understanding both the challenges and sacrifices of military life for servicemembers and their families gives auxiliary members skills and talents that make them valuable assets. Auxiliary members can serve in leadership positions on the board of directors or various committees, plan and manage projects and pro-grams and assist in recruitment and retention initiatives.
The Auxiliary Member Advisory Committee (AMAC) led Storming the Hill event in July introduced many of our younger surviving spouses to MOAA. MOAA has asked all chapters to encourage our auxiliary members to par-ticipate in auxiliary liaison leadership roles. It is impera-tive our younger members be asked to become chapter leaders. This gives them a sense of purpose as well as a reason to attend meetings and be more involved in our organization. The reality is younger officers and auxiliary members are the future of MOAA.
Each year when renewing your membership, there are several blocks that ask if you would be willing to serve as an officer, director or on a committee. This year, why not check one of the one of the blocks in the affirmative?
Elaine Ciardello, Auxiliary Liaison
9
2014 PMOAA MEMBERSHIP RENEWAL FORM Please Print
FULL NAME______________________________________ (Last) (First) (Middle)
RANK/SERVICE: ___________________
Circle: Ret; AD; Reserve; Auxiliary; Guard
SPOUSE/SIGNIFICANT OTHER_____________________
ADDRESS_______________________________________
PHONE NUMBER_________________________________
E-MAIL ADDRESS________________________________
(For Official Chapter Communications/Use)
Circle one: I am OR I am not a member of National MOAA.
MY MOAA number is: ______________________________
Do you want your name, address, phone number, e-mail address published in the PMOAA directory?
Yes____ No _____
Might like to serve as a Chapter Officer or as a Director: Yes___ No ___
Might like to serve on a Chapter Committee: Me: Yes ___ No ___
Spouse: Yes___ No __
_____ Membership Dues: $20.00/person/year
_____ Auxiliary Dues: $20.00/person/year
_____ Social Member: Free but must renew membership
_____ TAX-DEDUCTIBLE SCHOLARSHIP CONTRIBUTION
_____ TOTAL ENCLOSED
Please make check payable to: PMOAA
Mail to: Membership, PMOAA P.O. Box 17728 Pensacola, FL 32501- 7728
Legislative and Benefits Update
Cost Of Living Adjustment (Source: MOAA) Issue: Government retired pay promises must be kept, including annual cost-of-living adjust-ments (COLAs) to prevent erosion of retirees' purchasing power by inflation.
Background: Despite previous prospective changes that reduced future retired pay value by 25% since 1980, and subsequent retention problems that led Congress to repeal those changes in 1999, some government and private sec-tor critics continue to allege the military retirement system is "overly generous." During the 1990's, legislators proposed or enacted multiple changes or delays in annual cost-of-living adjustments (COLA), singling out retired service mem-bers for discriminatory COLA penalties. Too often, critics wrongly equate federal retirement compensation--earned by decades of selfless service and sacrifice--with unearned federal welfare programs. Civilian retirement standards don't apply to the military, which entails far more arduous service conditions: 20 to 30 years of hazardous duty, frequent moves, extended family separations, overseas service, long hours of overtime without extra pay, forfeiture of many per-sonal freedoms most civilians take for granted, and an "up-or-out" promotion system. The vast majority of military mem-bers face forced departure from service before age 50, with no vesting before 20 years. Retaining a high-quality career force over the long term requires a strong reciprocal com-mitment between member and service. Retired pay increas-es, provided for in statute since 1871, are part of the com-mitment. Since 1963, COLAs have been tied to the Con-sumer Price Index (CPI), a Bureau of Statistics metric that measures changes in inflation. Without COLA protection, inflation would erode nearly half of real retired pay value for a 20-year retiree by age 62. The 2009 COLA, announced in October 2008, was an incredible 5.8% for most recipients of military retired pay, VA disability compensation, Survivor Benefit Plan annuities, Social Security, and other federal annuity programs. However, inflation in 2009, 2010 and 2011 (when compared to the 2008 baseline) actually de-clined providing no COLA for 2010, 2011 and 2012. A quick reminder: the law doesn't allow a negative COLA. Modest COLAs of less than 2% followed in 2013 and 2014.
October COLA Released (Source: MOAA) The Consumer Price Index dipped in October to 229.735. This is 0.3 percent below the new FY 2014 COLA baseline of 230.327. There are 11 months to go before we know the FY 2014 COLA, but this is the fifth time in six years that CO-LA started the new fiscal year in the hole.
Defense Bill Stalls (Source: Various) November 22, 2013 - The Senate reached an impasse dur-ing negotiations on the FY 2014 defense authorization bill and won’t take up the bill again until after they return to Washington on December 9. The debate bogged down over two particularly contentious issues – proposals on handling detainees at Guantanamo Bay and combating military sexu-al assault. Senate Majority Leader Harry Reid (D-Nev.) at-tempted to end debate and vote on the bill without consider-ing more than 500 proposed amendments. But his effort to fast track the bill was defeated by senators who wanted to continue debate and consider even more amendments to
the bill. That means the Senate could still consider im-portant amendments on pay, TRICARE, concurrent receipt, the SBP/DIC offset, and more. Send your legislators an MOAA-suggested message in support of these amend-ments now. Negotiations will be rushed when the Senate returns from Thanksgiving recess as it will only have one week to work out its version of the defense bill, and then conference with the House before the holidays. It’s setting up to be a frantic December, and to further complicate mat-ters the White House is again pushing to cap military pay and increase TRICARE fees. MOAA will continue to be the voice of the military and veterans community and in sup-port of the 1.8 percent pay raise amendment MOAA ran a full page ad, on two consecutive days, in The Hill newspa-per this week to urge support on Capitol Hill.
Chipping Away at the Commissary Benefit (Source: MOAA) Last August (2013), when discussing the impact of the se-quester on military readiness, President Barack Obama told a crowd gathered at Camp Pendleton, CA, “Hardworking folks are getting furloughed, families getting by on less, fewer ships available for your training exercis-es, the commissary your families rely on closed a day a week. We can do better than that. That’s not how a great nation should be treating its military and military families.” Not how a great nation should be treating its military and military families.
On Wednesday, Rep. Joe Wilson (R-SC) Chairman of the House Armed Services Subcommittee on Military Person-nel, opened the Military Resale Programs Hearing by reaf-firming his strong support for the commissary and ex-change system, “The military exchanges, the commissary and the Morale, Welfare and Recreation programs are acknowledged as highly valuable and appreciated benefits that support active duty retention, the wellbeing of the mili-tary community, and the readiness of the force.” But Wilson also acknowledged, “The fiscal pressures on the Defense budget have caused the department and services to look at initiatives to reduce appropriated funding for these pro-grams.” One by one the witnesses testified about the ongoing ef-forts to find efficiencies within their respective systems. Regarding the Defense Commissary Agency, Mr. Joseph H. Jeu, Director and Chief Executive Officer, Defense Commissary Agency, bluntly noted, “There is no low-hanging fruit to cut.”
What budget cutting options were discussed at this hearing? Rep. Joe Heck (R-NV) inquired about three proposals under consideration: Increasing the commissary surcharge from 5% to
10%
Raising prices 2 to 3 percent to cover secondary transportation costs (the cost of shipping goods over-seas)
Creation of an enhanced commissary that would sell additional products, such as alcohol, at a higher price
(Continued on page 3)
MILTON WATERFRONT SALE OF LEASE Enjoy life in this exclusive executive neighborhood, watch
spectacular sunsets over Back Water River from front, fish from lake in back. Be in Pensacola or at Whiting Field NAS in minutes. Great Room, cathedral ceiling, fireplace; Kitchen; corian countertops, stainless appliances, tile floors, window over sink, indirect lighting; split bedrooms; Master bedroom; entry to covered deck, walk-in closet, separate shower, whirl-pool tub; 3 BR + loft & two car side entry garage with extra parking, large corner lot. You're gonna love it!
Call now to see -- $185,000 or lease $1200/mo
Christine Frazier, Broker Associate CRS, GRI, DCPE, Notary Public ERA Old South Prop. Inc. 6218 N. 9th Pensacola, Fl. 32504 850-304-7773 Cell/Fax 850-484-9162
Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America Pensacola Chapter Newsletter - December 2013 - Military Officers Association of America
What’s Inside…
pg 1 President's Corner
pg 1 PMOAA November Photos
pg 2 Legislative Affairs
pg 3 Legislative Affairs (Cont)
pg 4 Legislative Affairs (Cont)
pg 4 Member Spotlight
pg 5 Member Spotlight (Cont)
pg 6 November Photos (Cont)
pg 7 Financial Planning - “The Lady Bird Deed”
pg 8 Board of Directors Minutes
pg 9 Auxiliary Corner
pg 9 2014 PMOAA Membership Renewal Form
pg 9 Scholarship Donation Form
PMOAA Beacon is published by UPS Store 2927, proud member of PMOAA 4051 Barrancas Avenue, Suite G Pensacola, FL 32507-3482 Tel (850) 457-1099 Fax (850) 457-1022
1 10
PMOAA Beacon The City of Five Flags-Pensacola Florida
4 Star Chapter Award – 2002 5 Star Chapter Awards — 2003, 2004, 2005,
2006, 2007, 2008, 2009, 2010, 2011, 2012 http://www.pmoaa.org
PRESIDENT’S CORNER
The holidays have arrived with an Arctic Blast of win-ter. No need to stay home because you have already marked your calendar for Thursday, 5 December to attend our December Christmas Dinner Dance at the Pensacola Yacht Club. We will have our very own Major Tom Fitzgerald performing with “The Blend-ers” for your dancing pleasure. Bring an unwrapped gift in support of the U.S. Marine Corps Reserves’ Toys for Tots program.
Pensacola celebrated Veteran’s Day on Monday, 11 November with a parade from Government & Spring Street to Veteran’s Memorial Park. Several thou-sands marched the 1.7 mile route to be enthusiasti-cally greeted by another several thousand spectators along the way, offering their unbridled support of our local military Veterans and families. My thanks go out to Captain Jim Frazier, Major Charlie Booton and wife Jean, who joined me in the parades procession rep-resenting PMOAA. Next year I would like to see PMOAA have a greater participation in the event. Contact us with your ideas on how best to accomplish this goal.
Once again, PMOAA will be contributing to “Wreaths Across America”. The ceremony will be held at Bar-rancas National Cemetery on Saturday, 14 December 2013 at 1100.
Traveling to Colorado Springs, Colorado, 15-17 No-vember 2013, allowed me the opportunity to partici-pate in the 2013 MOAA Annual Meeting. There were many workshops that provided me with legislative updates, 475 Star Levels of Excellence (LOE) “Best Practices” gleaned from this year’s chapter award packages, and most enjoyable was walking the awards stage Saturday night to receive our own elev-enth consecutive 5 Star LOE pennant from MOAA Chairman, General John H. Tilelli, Jr. (USA Ret) and Vice Admiral Norbert R. Ryan, Jr. (USN Ret). The state of Florida was well represented with 20 chap-ters gaining 4 or 5 Star LOE recognition. The Florida Council of Chapters, represented by LtCol COL Jim Connor (USAF-Ret), also received 5 Star status.
Our November Annual Business meeting was a grand success in several ways. First, there was a strong attendance by more than 60 members/guests
Immediate Past President LtCol Walter R. Limbach, USMC (Ret) 850-473-9899 [email protected]
DIRECTORS
MAJ Molly Werner, USA (Ret) 850-474-1291 [email protected] CDR Joe Brewer, USN (Ret) 850-453-9291 [email protected]
LTC Thomas Kuklish USA, (Ret) 251-961-1919 [email protected] Maj Charles Booton, USAF (Ret) 850-936-6311 [email protected]
LtCol Alan Sanders, USMC (Ret) 205-901-0620 [email protected]
President CDR William (Vann) Milheim, USN (Ret) 850-969-9715 [email protected]
1st Vice President LCDR David Wilhite, USN (Ret 850-968-4614 [email protected]
2nd Vice President Maj Tom Fitzgerald, USMC (Ret) 850-206-6873 [email protected]
Secretary RADM Joan M. Engel, USN (Ret) 850-473-9899 [email protected]
Treasurer CAPT Bartholomew Walsh, USN (Ret) 850-712-1126 [email protected]
Chair, Survivor Assistance Committee CAPT Bill Mayer, USN (Ret)
850-932-5999 [email protected]
Nonprofit Org U.S. Postage Paid
Permit No 326 Pensacola, FL
Pensacola Chapter, MOAA P.O. Box 17728
Pensacola, Florida 32501-7728
Return Service Requested
who enjoyed the food and hospitality of Azalea Trace. Second, it was rewarding to know that your Board of Directors did an outstanding job of updating our PMOAA By-laws in clearing written changes and rationale to the membership. This became evident when the floor was open for discussion and there was a pleasant silence followed by a unanimous vote of acceptance to the changes. Lastly, hats off to our Nominating Committee for bringing this talented group of Officer and Auxiliary members together for 2014. There is always a lot of work that must be accomplished by our Board of Directors each year and I am positive next year will be no different.
Finally, from our family to yours, enjoy a very Merry Christmas and the Happiest of New Years!
. Vann Milheim
November MOAA Photos
Photos courtesy of Christine Frazier and Elaine Ciardello
(More Photos on page 6 )
CDR Vann Milheim and USO Director, Heidi Blair
MOAA Chairman, GEN Tileli, Jr, presents 5 Star Chapter
pennant to CDR Vann Milheim at 2013 MOAA Annual Meeting.
Maj Booton and CAPT Fra-zier carry PMOAA banner while CDR Milheim carries PMOAA flag in Veterans
Day Parade (This photo is courtesy of Jean Booton.)