Feb. 11 (Bloomberg) — Representative Adam Smith, the top Democrat on the House Armed Services Committee, said U.S. troop readiness for future wars will suffer unless politically unpopular cuts are made to military pensions.
Smith of Washington said he holds a minority view even within his own party in supporting modest reductions of cost-of-living adjustments for payments to military retirees.
Lawmakers in the House and Senate are working on proposals to reverse all or part of the cut in benefits that was included in the budget deal reached in December. Smith said the cut was necessary so that Congress isn't forced to further reduce the defense budget and hurt the military's ability to train and buy equipment.
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"You can take $7 billion by taking a small amount out of the pensions of people between 42 and 62, working age, or you can cut $7 billion out of readiness," Smith said today at a Bloomberg Government breakfast in Washington. "That is our choice."
Smith said that "in an era of tight budgets," an increase in benefits can't always be provided. The budget deal reached between Senator Patty Murray, a Washington Democrat, and Paul Ryan, a Wisconsin Republican, calls for a 1 percent cut in cost of living raises for retirees age 62 and younger starting in December 2015.
"Yes, when you take a job you have an expectation," Smith said. "Frequently that expectation is not met for most people."
Smith said that Congress in the last decade already has "upped" the expectations by updating the G.I. education bill and increasing military pay and combat pay.
Congressional Proposals
The Democratic-led Senate is considering a measure sponsored by Senator Mark Pryor of Arkansas that would repeal the December budget decision on retiree pay.
Senate Republicans are poised to offer their own proposals to do so by finding a way to pay for the repeal. One option championed by Senator Kelly Ayotte, a New Hampshire Republican, would prevent undocumented immigrants from claiming a child tax credit, a move she said would save about $20 billion over 10 years.
House Republicans are planning to vote later today on legislation that would let current members of the military plan on receiving larger yearly pension adjustments. Under that proposal, the cuts would affect only those who enter the service this year.
Tight military budgets could offer the Pentagon and Congress an opportunity to make smarter decisions on spending, Smith said, citing the ability to buy technology "better" by speeding up the procurement process and trimming the bureaucracy.
Pryor's bill is S. 1963. The House plans to vote on a version of S. 25.
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