STATEMENT OF

COMMAND SERGEANT MAJOR JOHN MUENCH, USA (Ret), M.P.W.

NATIONAL EXECUTIVE DIRECTOR

THE RETIRED ENLISTED ASSOCIATION (TREA)

PRESENTED TO

SUBCOMMITTEE ON VETERANS AFFAIRS, HOUSING AND URBAN DEVELOPMENT AND INDEPENDENT AGENCIES APPROPRIATIONS

FISCAL YEAR 1999

UNITED STATES HOUSE OF REPRESENTATIVES

APRIL 23, 1998

DISCLOSURE OF FEDERAL GRANTS OR CONTRACTS

The Retired Enlisted Association does not currently receive, has not received during the current fiscal year or either of the two previous years any federal money for grants or contracts. All of the Association’s activities and services are accomplished completely free of any federal building.

On behalf of The Retired Enlisted Association’s (TREA) National President, Technical Sergeant Dave Pahl, U.S. Air Force (Ret) and Auxiliary President Ethel Hale, and over 100,00 members and auxiliary, we appreciate the opportunity to present testimony to this subcommittee concerning FY 1999 Department of Veterans Affairs Appropriations. TREA is a federally chartered organization representing retired, active, guard, reserve and family members who are serving (career military) or have served (and are now retired) in every component of the Armed Forces of the United States: Army; Marine Corps; Navy; Air Force; and Coast Guard.

I am Command Sergeant Major John Muench, USA (Ret), TREA’s National Executive Director. I have included my biography on page two.

VA SUBVENTION:

Increased access to health care for military retirees is TREA’s greatest concern. The majority (sixty-one percent) of our members are over the age of 65 and have been disenfranchised from their "earned" military retiree health care benefit. That is why TREA supports legislation authorizing the Department of Veterans Affairs to receive payments from Medicare to serve Medicare-eligible veterans (including military retirees). The VA Subvention program, as defined in House Resolution 1362, would be a good step in direction of improving retirees access to health care.

Due to the fact that Medicare Part "B" would be a requirement of VA Subvention, TREA supports legislation (H.R. 598/S. 912) which would eliminate the penalty for military retirees that did not elect Medicare Part "B" and now wish to enroll. Unfortunately, many military retirees were counseled by active duty hospital representatives not to enroll in Medicare Part "B" stating that their care at military health care facilities would continue for the rest of their lives. Today, however, we have seen several rounds of base closures which have left hundreds of thousands of military retirees without quality health care. Waiver of the Medicare Part "B" penalty and opening VA Hospitals to Medicare-eligible retirees will help correct this situation.

CONCURRENT RECEIPT

Presently, military retirees pay is being off-set based on the percentage of VA disability they receive. As such, military retirees are the only class of American citizen required to waive their earned retired pay, dollar-for-dollar, to receive VA compensation for service connected disability. There are numerous bills pending in the House of Representatives to eliminate this off-set. TREA supports any legislation which would address this disparity which exists. We support the same treatment of military retirees as U.S. citizens with service connected disabilities.

TOBACCO RELATED ILLNESSES

House Concurrent Resolution 249 States the Sense of the Congress that substantial amounts of the proceeds received by the United States under any congressionally approved tobacco settlement should be allocated to the Department of Veterans Affairs. The use of tobacco products in the Armed Forces was not only condoned, but encouraged. Prior to World War II, Congress passed legislation stating that members of the military would have their pay automatically deducted for the cost of cigarettes (Attachment #1). Today, thousands of veterans from that era suffer from the effects of smoking. Now, the Department of Veterans Affairs does not want to recognize these illnesses as service connected. This decision is based solely on the fact that the cost of awarding disability to these veterans would be "too much to handle." (Attachment #2) The fact that the government of the United States is unwilling to compensate these veterans is unconscionable considering no cost was too high when these men and women were fighting for our nation’s freedom.

VETERANS PREFERENCE

TREA would like to thank the members of the House of Representatives that supported House Resolution 240, the Veterans Employment Opportunities Act. This important legislation is presently before the Senate Veterans Affairs Committee and it is our hope that S. 1021 will soon be passed and signed into law.

BULLETS AND BILLETS VERSUS VETERANS

For years, programs that would benefit veterans, and military retirees inparticular, have been competing for funds with the Department of Defense’s other programs. Unfortunately, people have been losing the battle against hardware and personnel strength. Retirees and veterans cannot compete with lucrative military construction projects and the needs of the active duty members of the Armed Forces. Our benefits are being "held hostage." Therefore, we suggest that the Congress consider the transfer of all military retiree affairs from the Department of Defense to the Department of Veterans Affairs. This transfer would include the pay system and the providing of health care. This transfer makes sense because the Department of Veterans Affairs is in the business of serving people while the Department of Defense is in the business of ensuring our national security.

FISCAL YEAR 1999 BUDGET

"PAY GO" is an expression which TREA and the other military associations have heard for years. If one program was going to be funded, its cost would have to be offset by taking money away from another program. Now, we have come to find that this is not always the case. The infamous "Highway Bill" is slated to be offset by taking $10 billion from, among other agencies, the VA. Our members ask, why does "Pay Go" not apply to the Transportation Bill like it does to the VA and DoD Appropriations Bills? All our members see in this legislation is election year politics at its worst. The $10 billion being stolen from the VA could go to fund several programs which would help veterans. It could be used to solve the Concurrent Receipt debate or to ensure every veteran can receive the burial they are entitled. These funds can be used to start the VA Subvention program or to increase the Montgomery G.I. Bill.

GULF WAR ILLNESS

The effort to find a cause for illnesses which have afflicted thousands of Gulf War Veterans must continue at all possible speed. The ground campaign into Kuwait was launched over seven years ago. Today, we still see veterans suffering the effects of their time served. Many of these illnesses continue to go diagnosed and the debate about what to do continues to go on.

CONCLUSION

Mr. Chairman, distinguished Subcommittee members, we are at an interesting time in history. For the first time in 29 years we have the opportunity, through a balanced budget, to correct nearly three decades worth of injustice on our nation’s veterans. We have been told in the past that once the budget situation is resolved, our issues would be addressed. Today, the budget issue is resolved and we are here asking that our needs be met. The Department of Veterans Affairs must receive full funding, be authorized to begin the VA Subvention program and continue to treat veterans fairly and justly.

Mr. Chairman, I would like to thank you for giving The Retired Enlisted Association the opportunity to speak today on this important issue.