Armed Services COLA Reform Law
Public Law 113-82
Long Title As Enacted – To ensure that the reduced annual cost-of-living adjustment to the retired pay of members and former members of the Armed Forces under the age of 62 required by the Bipartisan Budget Act of 2013 will not apply to members or former members who first became members prior to January 1, 2014, and for other purposes.
Pub. L. 113–82; 128 Stat. 1009; Feb. 15, 2014; S. 25 (113th Congress)
Summary
CRS Summary – Amends the Balanced Budget and Emergency Deficit Control Act of 1985, with respect to the implementation of direct spending reductions, to require the President to order a sequestration for FY2024 on the date the Office of Management and Budget (OMB) issues its sequestration preview report for such fiscal year.
Makes the reduction in annual cost-of-living adjustments of military retired pay for armed forces members under age 62 enacted by the Bipartisan Budget Act of 2013 inapplicable to those who first became members before January 1, 2014. (That Act reduced the cost-of-living adjustments from the full Consumer Price Index [CPI] to the CPI less 1%.)
Amends title XVIII (Medicare) of the Social Security Act to replace the requirement to establish a Medicare Improvement Fund with one that requires the Secretary of Health and Human Services (HHS) to establish a Transitional Fund for Sustainable Growth Rate (SGR) Reform, available to provide funds to pay for physicians’ services under part B (Supplementary Medical Insurance) to supplement the conversion factor for 2017 if the conversion factor for that year is less than that for 2013. Makes $2.3 billion available to the Fund from the Federal Supplementary Medical Insurance Trust Fund for expenditures during or after 2017.
General Information
Public Law: Pub. L. 113–82
Stat. At Large: 128 Stat. 1009
Enacted: Feb. 15, 2014
Bill Number: S. 25 (113th Congress)
Sponsor: Sen. Hatch, Orrin G. [R-UT]
Note: The short title of the bill used as a vehicle for this Act was the South Utah Valley Electric Conveyance Act. The long title of the bill as enacted reflects its main subject matter, which was to reverse a policy enacted in the Bipartisan Budget Act of 2013: “To ensure that the reduced annual cost-of-living adjustment to the retired pay of members and former members of the Armed Forces under the age of 62 required by the Bipartisan Budget Act of 2013 will not apply to members or former members who first became members prior to January 1, 2014, and for other purposes.”
The Act did include other provisions related to Medicare and the sequestration ordered in order to offset the cost of the bill due to reversing the COLA policy.
Applicable Text of Statute
SECTION 1. EXTENSION OF DIRECT SPENDING REDUCTION FOR FISCAL YEAR 2024.
Paragraph (6)(B) of section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) is amended by striking “and for fiscal year 2023” and by inserting “, for fiscal year 2023, and for fiscal year 2024”.
SEC. 2. INAPPLICABILITY OF REDUCED ANNUAL ADJUSTMENT OF RETIRED PAY FOR MEMBERS OF THE ARMED FORCES UNDER THE AGE OF 62 UNDER THE BIPARTISAN BUDGET ACT OF 2013 WHO FIRST BECAME MEMBERS PRIOR TO JANUARY 1, 2014.
(a) In General.—Section 1401a(b)(4) of title 10, United States Code, as added by section 403(a) of the Bipartisan Budget Act of 2013 (Public Law 113-67) and amended by section 10001 of the Department of Defense Appropriations Act, 2014 (Public Law 113-76), is amended by adding at the end the following new subparagraph:
“(G) Members covered.—This paragraph applies to a member or former member of an armed force who first became a member of a uniformed service on or after January 1, 2014.”.
(b) Effective Date.—The amendment made by subsection (a) shall take effect on December 1, 2015, immediately after the coming into effect of section 403 of the Bipartisan Budget Act of 2013 and the amendments made by that section.
SEC. 3. TRANSITIONAL FUND FOR SUSTAINABLE GROWTH RATE (SGR)
REFORM.
Section 1898 of the Social Security Act (42 U.S.C. 1395iii) is
amended—
(1) by amending the heading to read as follows: “transitional fund for sustainable growth rate (sgr) reform”‘;
(2) by amending subsection (a) to read as follows:
“(a) Establishment.—The Secretary shall establish under this title a Transitional Fund for Sustainable Growth Rate (SGR) Reform (in this section referred to as the ‘Fund’) which shall be available to the Secretary to provide funds to pay for physicians’ services under part B to supplement the conversion factor under section 1848(d) for 2017 if the conversion factor for 2017 is less than conversion factor for 2013.”;
(3) in subsection (b)(1), by striking “during—
” and all that follows and inserting “during or after 2017, $2,300,000,000.” ; and
(4) in subsection (b)(2), by striking “from the Federal” and all that follows and inserting “from the Federal Supplementary Medical Insurance Trust Fund.”.
