Why Air Force Pensions are the Way They Are

  • August 7, 2021

By JOE KRAUTHAMMER | APRIL 23, 2018 | 8:30 p.m.

ET Air Force pensions are among the most generous in the U.S. Military, but the federal government is taking steps to reform the system.

Air Force Secretary Deborah Lee James said Friday that the Air Force would be “moving toward a system of fully indexed, indexed, and indexed-for-tax purposes that would not impact our ability to provide our personnel with the very best possible value.”

She did not say how the Air National Guard plans to do this.

The Defense Department, however, is taking a different approach.

It is proposing to begin rolling out a plan by 2020 to index its retirement plans for inflation and allow the military to adjust benefits for inflation.

This plan would make Air Force and Marine retirees eligible for a 10 percent reduction in taxable income over a decade.

The proposal is modeled on an indexation plan that was adopted in the military’s civilian pensions, but would not affect the retirement benefits of airmen in the Reserve or National Guard.

Airman retired with $142,955 in retiree health benefits in 2016, compared with $133,944 in 2020.

The Air Force has the third-highest retirement benefits for active-duty personnel in the country, and a plan that is supposed to take effect in 2020 would be the first major reform of this nature.

James has said that she is also proposing to phase out the Air Guard’s 401(k) plan, which currently pays only half the value of a military pension.

The retirement benefits are supposed to be indexed for inflation, so the change would be a boon to retirees.

The plan, however the Air Forces plan, would also allow for changes to the way the military calculates taxable income for retired members, such as adjusting how they pay for their retirement benefits.

“As we continue to focus on a new plan for Air Force retirees, we want to make sure that the benefit levels are consistent with inflation, and not a consequence of how the market rates are,” James said.

Air force retirees will get the benefit reductions for the first time in 2028.

Currently, retired airmen are entitled to the full benefit of the government-mandated 10 percent tax reduction over five years.

The reduction would reduce their retirement contributions by $2,000.

But a new Air Force pension plan would reduce that amount by $1,500 for each year they are in the service.

The change would affect all retirees, but military retirees would get the largest benefit reduction.

The Pension Benefit Guaranty Corp. would replace the current fund management system that provides financial backing to military retirees, including the Air force.

It has long been criticized for its reliance on military retirees to manage their pensions.

The move would be welcomed by the Air forces retirees who have taken to the streets protesting the plan.

“We have seen this kind of pension plan fail in the past.

It does not reflect our commitment to our servicemembers, our military personnel, or our retirees,” said retired Air Force Lt.

Col. Robert Fauci, the current president of the Airmen’s Retirement System Association.

“Our servicemember has sacrificed more to ensure the safety and well-being of our nation, and we need to take steps to improve our pensions,” Faulli said.

The pension system was designed by the Defense Department to protect Air Force retirement and medical benefits, and has been criticized by retired service members and their advocates.

It was designed with military retirees in mind.

James said the Airforce’s plan would address the problems that some service members have with the current system.

She said that the proposal would also “ensure that those in uniform are able to retire and retire the way they have always wanted to, in retirement and with their loved ones.”

The Air Forces Pension Fund, a separate retirement plan for active and reserve members, is scheduled to open for business on July 1, 2019.

How NFL’s salary cap could hurt the NFL’s finances

  • July 18, 2021

In January 2018, the NFL announced it would pay out $100 million to settle lawsuits from former players alleging they were cheated by the league and that the payments were made under duress.

It also agreed to pay $5 million to each of the six players who sued the league.

Those players include Michael Sam, Chris Borland, Joe Thomas, and Charles Johnson.

The former players sued the NFL and NFLPA after the league decided not to award them a guaranteed $1 million per year in future salary increases and instead required the players to earn $6 million each year.

NFLPA attorney David Boies said the NFLPA has been in discussions with the league since then about the payment, but has not yet received any indication from the league that it is prepared to agree to the settlement.

Boies noted the NFL has “a pretty good track record” of paying out settlements in the past.

Australia to reduce pension costs, pensions to rise

  • July 5, 2021

Pensioners in Victoria and New South Wales will have to pay more for their pensions, the Victorian Government has announced.

The decision is part of a $30 billion package announced by Prime Minister Daniel Andrews on Monday, but will come with some significant cuts to some public sector pensions.

Mr Andrews said there was no way to pay for them with less revenue.

The Government is also looking to reduce the number of public sector workers it has, and will announce a new pay scale and a new pension scheme early next year.

Mr Scott said that in order to ensure the Government can continue to deliver its promised savings and boost the economy, he would also seek to improve funding for the ABC, which has been hit by budget cuts.

The ABC will lose around $10 million a year in 2018-19.

The broadcaster has also been under pressure over the past year to reduce its workload, with the number and types of shows being curtailed.

Mr Swan said that was why he would increase the number, as well as look at ways of ensuring the ABC was “better prepared to meet the needs of future generations”.

He said the Government was committed to making Australia the “most digitally connected country in the world”.

He called for the “gold standard” of the ABC to be the Digital Media Awards, to be held in November next year, in a bid to attract the highest-rated programming.

“That’s the most prestigious award the country can get,” Mr Swan told the ABC.

“It’s a celebration of the work the ABC has done, and it’s something we’re committed to delivering.”

The ABC was once the envy of the nation, with more than 10 million people subscribing to the channel, and with the network making billions of dollars in advertising.

It was also a major source of revenue for the Government.

The number of hours it broadcast has decreased by about 50 per cent over the last 10 years.

How Nicholas Pensions plans to help pensioners save for their retirement

  • July 4, 2021

The pensions of pensioners in Australia are facing a significant overhaul as a result of a controversial proposal by Nicholas Pills, the company that runs the Australian Government’s pension scheme.

The pension fund’s chief executive, Tony Loughton, has been in the public eye since last week’s release of a report commissioned by the company which said there was no guarantee the Government’s $12 billion plan would be funded and that the plan would “fail in its original funding plan”.

“We have been clear about our commitment to ensure that the funding provided by the Australian government will continue and that there will be no reduction in funding for pensions in Australia,” Mr Loughston told the ABC.

“The plan has been designed to be able to sustain its financial viability, to be funded by an even higher level of contribution from the Australian public.”

The report commissioned for the $12.6 billion Newstart Allowance scheme also found the plan could fail if the Government does not “immediately and dramatically reduce the projected increase in unemployment from its current forecast of 1.3 per cent to 1.5 per cent”.

While Mr Lighton has not yet provided a timeframe for when the plan will be funded, the Treasurer said it would be “imperative” to start work on the plan in the first half of next year.

Mr Loughson has previously said the plan was not in danger of collapse.

Key points:AAP: “There is no guarantee” the plan “will survive the funding plan review”Nicholas Pills says there is “no guarantee” it will survive the “fundamental review”The Federal Government has committed to delivering the Newstart Guarantee and other income support benefits to all Australians by the end of the year.

However, it is understood that the new plan will now be “reviewed” by the Pills plan, which will look at its “fundamentals”.

“It will take a detailed look at the plan’s viability and the way it is operating to determine whether there is a realistic expectation that it will be able or able to survive the fundamental review of the plan,” Mr Treadwell said.

Mr Lighson told the Senate this week the plan is not in jeopardy of failing because the Government “is committed to making sure that our funding plan remains funded.”

He said he has been “deeply involved” in the review process, but said he “can’t discuss” details of the review “due to the sensitivity of the subject”.

“The Pills Plan is a critical part of Australia’s economic recovery, and this review is the right way forward for it,” Mr Mr Laughton said.

Topics:government-and-politics,government-election,wealth-and.abstinence,pensions,australia,aussie-politics-and

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