Pentagon: Budget cuts affect veteran survivor benefits

http://hamptonroads.com/2014/01/pentagon-budget-cuts-affect-veteran-survivor-benefits

Pentagon: Budget cuts affect veteran survivor benefits
By Donna Cassata
The Associated Press
© January 13, 2014

WASHINGTON

A pension cut for military retirees in last month's budget agreement that riled veterans groups and several lawmakers extends to survivors' benefits and special compensation for combat, the Pentagon told Congress on Monday.

Responding to questions from Sen. Kelly Ayotte, the Pentagon outlined the impact of the budget pact's 1 percentage point cut to annual cost-of-living increases. The adjustment would save $6 billion over the next decade, money that the federal government plans to use to ease cuts to the military budget this year.

The Pentagon said the cost-of-living change would affect all military retirees, including active duty, reserve and disabled, and change payments under the combat-related special compensation program. That program provides extra benefits to some retirees injured in combat.

The change also affects annuity payments under the Survivor Benefit Plan, the Pentagon said in a memo to Ayotte, a member of the Armed Services Committee and fierce opponent of the pension cut.