Representatives Walz, Maffei Introduce Military Retirement Restoration Act

Press Release

Today, Representative Tim Walz (D-MN) announced that he joined Rep. Dan Maffei (D-NY) to introduce H.R. 3793, the Military Retirement Restoration Act. This bill would repeal the unwarranted cost-of-living adjustment (COLA) cuts for military retiree's under the age of 62 that were included in the Bipartisan Budget Act. This legislation will be fully paid for by closing tax loopholes for corporations that operate and are run from the U.S. but use off-shore tax havens to avoid paying their fair share, footing middle class families and veterans with the bill.

Companion legislation has been introduced in the Senate by U.S. Sen. Jeanne Shaheen (D-NH) and is co-sponsored by Senators Amy Klobuchar and Al Franken. Walz also plans on introducing a bill in 2014 that would find savings by rooting out waste and inefficiencies at the Department of Defense by requiring an audit of the Pentagon.

"Our country needs a budget in order to end the irresponsible governing-by-crisis cycle in Washington, ensure another reckless and costly shutdown does not occur, and to give our local businesses and communities the certainty they need to grow and create jobs," said Representative Walz. "That being said, the budget that passed was far from perfect. I opposed the unwarranted cuts to COLA for military retiree's under age 62 that were included in the bill. That is why I joined Representative Maffei in introducing a bill to restore these cuts. I will continue to push leadership to uphold the promises made to our servicemembers."

Below is a summary of the legislation.

The Military Retirement Restoration Act would replace the cuts to military retiree benefits included in the Bipartisan Budget Act by preventing companies from avoiding U.S. taxes by abusing overseas tax havens. Specifically the bill:

Repeals the provision in the Bipartisan Budget Act (Section 403) that modifies the annual cost-of-living adjustment for working-age military retirees by making the adjustments equal to inflation minus one percent. This provision, which is scheduled to go into effect in December 2015, would result in a benefit cut for working-age military retirees. The Bipartisan Budget Act modifies the annual cost-of-living adjustment for working-age military retirees by making the adjustments equal to inflation minus one percent. At age 62, the retired pay would be adjusted as if the COLA had been the full CPI adjustment in all previous years, and the service members would receive the full COLA from then on. The provision would have saved approximately $6 billion over ten years.
Prevents companies from avoiding paying their fair share of U.S. taxes. The repeal would be fully offset by stopping companies incorporated offshore but managed and controlled from the United States from claiming foreign status and avoiding U.S. taxes on their foreign income. It would require these companies to be treated as U.S. domestic corporations for tax purposes. This provision and is expected to raise over $6.6 billion over ten years.

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