STATEMENT OF
THE RETIRED OFFICERS
ASSOCIATION
on
The Future Role
of the Montgomery GI Bill before the Subcommittee on Benefits House Veterans' Affairs Committee May 20, 1999 Presented by Colonel Robert F. Norton, USA (Ret.) Deputy Director of Government Relations The Retired Officers Association Biography of Robert F. Norton, COL, USA (Ret.) Deputy Director, Government
Relations The Retired Officers
Association Colonel Norton is responsible in the TROA national office for
legislative matters concerning veterans' health care and benefits. A native New Yorker, Colonel Norton was born in Brooklyn and raised
on Long Island. Following graduation from
college in 1966, Colonel Norton enlisted in the U.S. Army as a private, completed officer
candidate school, and was commissioned a second lieutenant of infantry in August 1967. He served a tour in South Vietnam (1968-1969) as a
civil affairs platoon leader supporting the 196th Infantry Brigade in I Corps. He transferred to the U.S. Army Reserve in 1969
and pursued a teaching career at the secondary school level. He joined the 356th Civil Affairs Brigade (USAR),
Bronx, NY and served in various staff positions in the unit from 1972-1978. Colonel Norton volunteered to return to active duty in 1978 and was
among the first group of USAR officers to affiliate with the "active Guard and
Reserve" (AGR) program on full-time active duty. He specialized in improving the
readiness and manning of the Army's reserve forces. Assignments
included the Army Staff office of the Deputy Chief of Staff for Personnel; USAR advisor to
the Asst. Secretary of the Army (Manpower & Reserve Affairs); and personnel policy and
plans officer for the Chief, Army Reserve. While assigned to the Office of the Secretary of Defense (Reserve
Affairs), Colonel Norton was responsible for implementing the Reserve Montgomery GI Bill. He served as the senior military assistant to the
Assistant Secretary of Defense for Reserve Affairs from 1989-1994. During his tour in
Reserve Affairs, more than 250,000 National Guard and Reserve component troops were
mobilized for the Persian Gulf War. Colonel
Norton completed his career as special assistant to the Principal Deputy Asst. Secretary
of Defense, Special Operations / Low Intensity Conflict and retired in 1995. Colonel Norton joined Analytic Services, Inc. (ANSER), Arlington, VA
in 1995 as a senior planner. He joined TROA's
National Headquarters as Deputy Director of Government Relations in March 1997. Colonel Norton holds a B.A. in philosophy from Niagara University
(1966) and a Master of Science (Education) from Canisius College, Buffalo (1971). He is a graduate of the U.S. Army Command and
General Staff College, the U.S. Army War College, and Harvard University’s Senior
Officials in National Security course at the Kennedy School of Government. Colonel Norton’s military awards include the Defense Superior
Service Medal, Legion of Merit, Bronze Star, Vietnam Service Medal, Armed Forces Reserve
Medal, Army Staff Identification Badge and Office of the Secretary of Defense
Identification Badge. Colonel Norton is married to the former Colleen Krebs. The Nortons have two grown children and reside in
Derwood, Maryland.
INTRODUCTION The Retired
Officers Association (TROA) is very grateful to the Chairman and distinguished members of
the Subcommittee on Benefits of the House Veterans' Affairs Committee for the opportunity
to express our views on the future -- and future role -- of the Montgomery GI Bill. TROA is the
fourth largest military veterans organization with nearly 400,000 members. Our membership consists of veterans and survivors
who are retired officers, active duty and National Guard / reserve officers of the seven
uniformed services and their surviving spouses. Collectively,
there are 1.67 million military retired veterans who have or are using GI Bill benefits
authorized by Congress since the end of World War II.
As a founding
member of The Military Coalition (TMC), TROA works closely with the 29 other veterans and
military organizations in The Coalition, representing the collective interests of over 5
million current and former members of the seven uniformed services, plus their families
and survivors. TMC's Committee structure
includes a Veterans' Committee which works veterans issues for The Coalition. This Statement, however, represents the views of TROA alone. TROA does not receive any grants or contracts from
the federal government. ROLE OF THE MONTGOMERY
GI BILL The Montgomery
GI Bill serves two broad purposes: attract talented young Americans to military service
and enable them after separation to obtain the training and skills needed to make a
successful transition to civilian life. The
original post-World War II GI Bill was enacted to accomplish only the second objective,
since recruitment incentives were not needed during the draft era and, more importantly, the readjustment of the huge veteran population
back then was a major social and economic goal. The
Montgomery GI Bill's dual purposes need to be re-calibrated or balanced from time to time
to achieve optimum effectiveness in serving the armed forces' manpower requirements as
well as encouraging the use of the benefit for individual and societal benefit. From this
perspective, TROA is pleased to offer some general observations on the future role of the
Montgomery GI Bill. The subject of today's hearing and the two bills (H.R. 1182 and H.R.
1071) under the Subcommittee's consideration are largely the result of the work of The
Congressional Commission on Servicemembers and Veterans Transition Assistance
("Principi Commission"). The
Commission submitted its Report to the Chairmen and Ranking Members of the House and
Senate Committees on Veterans' Affairs and Armed Services on January 14, 1999. TROA commends
the Honorable Tony Principi, Chairman of the Commission, Vice Chairman Kim Wincup, the
Commissioners and professional staff for their contribution to the well-being of all
veterans including military retirees as well as the larger society. The Report constitutes the most comprehensive
examination of veterans benefits programs since World War II. TROA was pleased to testify before Commission
roundtables on a number of topics and to provide background information to the Commission
on a range of issues. Before
addressing MGIB improvements, TROA would like to make it clear that we feel very strongly
that the Subcommittee should address the VEAP Conversion problem as the first order of
business in updating the education benefits package for servicemembers and veterans. VEAP Conversion -- The First Order
of Business Over the past
two and one-half years, TROA has heard from many career active duty servicemembers who
have been "left behind" with a fourth class education benefit. As the backbone of today's fighting force, they
were surprised to learn that the Senate had incorporated a number of the Principi
Commission recommendations for the MGIB in S. 4, the Soldiers', Sailors', Airmen's and
Marines' Bill of Rights Act, with one exception being "VEAP Conversion." They find it hard to believe that Congress would
be willing to authorize huge increases in education benefits for new recruits and first or
second termers, but leave them behind with a benefit that is woefully inadequate. The current situation stems from bad advice that
the Defense Department and Service counselors gave to VEAP participants. The
Post-Vietnam Era Veterans Educational Assistance Program (VEAP) permitted individuals who
first became members of the armed forces during the VEAP era (1977-1985) to contribute up
to $2,700 to a personal education account matched 2 for 1 by the Department of Defense. Aside from Service "kickers," the
maximum education benefit from VEAP is $8,100, of which one-third ($2,700) is paid by the
member. Compared to the current MGIB
basic rate of $528 per month, VEAP users would exhaust the government-funded portion of
the maximum benefit in only 10 months or about one academic year. But the
greater problem is that for years Service counselors advised VEAP participants to cash out
of their VEAP accounts and invest the money for their education in the belief that they
could make a VEAP contribution before separating. When
Congress enacted VEAP conversion legislation in 1996, a legal ruling determined that only
those with a balance in their VEAP accounts were eligible for conversion to the MGIB. The Principi Commission report states that there
are approximately 103,000 VEAP-era participants eligible for benefits. The Commission recommended that they be allowed
to become eligible for the MGIB by agreeing to pay the $1,200 entry premium. The cost of this initiative is estimated to be
about $200-300 million, but this figure may not take into account the substantial offset
savings to the Department of Veterans Affairs by lowering and terminating at an earlier
date the overhead costs for administering VEAP. As a matter of fairness and morale
for the active duty career force and to enhance their readjustment opportunities, The
Retired Officers Association strongly supports "VEAP Conversion" as recommended
by the Principi Commission. TROA urges
passage of the conversion provision in H.R. 1071, and, to reduce the cost of this measure
the Association would not object to
requiring payment of the $1,200 premium as endorsed by the Commission. Below is a
chart that captures major elements of the two legislative proposals -- H.R. 1182 and H.R.
1071 -- under the Subcommittee's consideration, alongside the Principi Commission
recommendations. Montgomery GI Bill Enhancements
Tuition,
Fees / Books and Supplies. Both bills
would cover most or all education and training programs for which a veteran could qualify. In other words, enactment of tuition and related
expense coverage would bring back the "buying power" of the original GI Bill
used by millions of veterans after World War II. None
of the succeeding GI Bill programs offered tuition / fees payments. In a hearing before the Senate Armed
Services Committee on September 29, 1998, the Chairman of the Joint Chiefs, General Hugh
Shelton, and the Service Chiefs testified that in their view a strengthened MGIB would
help recruiting. TROA agrees. As a practical matter, there may not be much
difference in recruiting between the full tuition and fees in H.R. 1071 or the 90%
level in H.R. 1082. Compared to the current benefit level, however, and the goal of making
military service a student's first option, the proposals should greatly help recruiting. The Services may have concerns over
whether volunteer force reenlistment and retention goals would be helped or hindered a few
years down the road by a full or near-full tuition and fees education benefit. Reenlistment and exit surveys should be used to
further explore the relationship between a full or near-full tuition benefit and
reenlistment behavior, assuming the legislation is enacted.
The departure of mid-career professionals in critical specialties is a matter of
increasing urgency from a military readiness perspective.
Adjustments to the MGIB must be carefully evaluated to ensure the right mix of high
quality servicemembers is encouraged to remain for a full career. As a transition tool for veterans, there
should be little doubt that a full tuition benefit would help reverse the steady decline
in MGIB usage and is likely to raise usage to historically favorable levels. The Principi Commission pointed out that the MGIB
usage rate between 1987 and 1997 is only 37.3%. By
comparison, the Vietnam-era GI Bill usage rate for the first ten years was 63.6%. The Commission found that "payment of tuition
improves participation." The
Retired Officers Association endorses as its top priority for the two bills (H.R. 1182 and
H.R. 1071) the provisions that would authorize full
or near full tuition, fees, books and supplies under an enhanced MGIB. Speeding
Delivery and Access to MGIB Benefits. 60% of servicemembers are married when they
separate. Many have dependent children. Consequently, most are required to seek full-time
employment immediately after separation to make ends meet.
Even if many would prefer to go to school or training full time, they are often
forced to pursue their goals on a part-time basis. TROA
agrees with the Principi Commission's view that more needs to be done to speed delivery of
MGIB benefits to veterans (including military retirees) to encourage usage even on a
part-time basis. For example, the Commission
recommended that Congress authorize accelerated payments of MGIB benefits. We believe Congress should direct the Department
of Veterans Affairs to exploit the potential of financial and technological innovations to
speed access to earned MGIB benefits. TROA
believes that improving delivery systems will stimulate greater use of the MGIB. TROA believes that today's
technology-literate veterans could take advantage of MGIB "smart card" accounts,
on-line verification of coursework, accelerated payments of benefits for specialized,
high-cost, short-duration training as well as traditional academic work. Unfortunately,
the VA's delivery system is anchored in a paper-based system and outmoded approval
processes. Much more needs to be done in this
area if other proposed enhancements are to realize their full potential. The
Retired Officers Association recommends that MGIB enhancement legislation include
authorization for accelerated payments (H.R. 1071) of benefits and rapid exploitationt of
modern delivery vehicles such as on-line MGIB accounts and benefit "credit
cards". Repeal
of Pay Reduction. H.R. 1182 and H.R. 1071
would implement the Principi Commission recommendation to eliminate the $1,200 pay
reduction that is required for eligibility for the MGIB.
The effect of this initiative is unknown on both the front and back ends of the
recruitment and readjustment phases of military service.
The sign-up rate for the MGIB for new entrants into the service has held steady at
about 98%. Thus, the enlistment rates might
not increase appreciably with the repeal of the pay reduction. In theory, veterans who have invested in their own
benefits should be more encouraged to recoup their investment and more. TROA agrees with the Commission
recommendation to repeal the $1,200 pay reduction. However,
if cost considerations drive the level of planned MGIB enhancements down, we would
reluctantly support retaining the pay reduction in favor of tuition coverage and
increasing the monthly stipend. In this
regard, TROA recommends that the Subcommittee direct the CBO, the Department of Defense
and the Secretary of Veterans Affairs to develop estimates on the separate costs of each
of the initiatives proposed in the two bills. This
would help stakeholders to assess the trade-offs associated with proposed MGIB
enhancements. The
Retired Officers Association supports repeal of the MGIB pay reduction upon entry into
service to the extent that the costs are not used to downgrade other essential MGIB
enhancements such as tuition coverage and an increase of the monthly stipend. Transferability. In March, TROA testified that it favored the
Commission recommendation to permit a Service Secretary to permit a MGIB participant to
transfer the benefits to a spouse or dependent children.
We recommended, however, that the transfer authority should be used as a career
incentive for those with about 15 years service. We
continue to believe that the transfer option has merit, but recommend further study on the
cost and policy implications of the initiative. Absence
of Selected Reserve MGIB Enhancements. Mr.
G.V. Sonny Montgomery championed inclusion of National Guard and Reserve forces' members
in his landmark legislation for the MGIB, recognizing their growing contribution to the
national defense. We believe that if
Mr. Montgomery were invited to testify before the Subcommittee he would express great
dismay, if not alarm, that there are no Selected Reserve MGIB enhancements in H.R. 1182
and H.R. 1071. This is unacceptable from the
perspective of the nation's "total force" policy.
It is also politically unwise. Three separate Presidential Selected
Reserve Call-Up Authorities are simultaneously in use today. The most recent is the call-up of the Guard and
Reserve to augment the forces committed to the Kosovo crisis. Reserves also have been activated for support of
ongoing operations in Bosnia and under a separate authority, operations in South West Asia
to contain Saddam Hussein. As full partners,
Guard and Reserve members -- a majority of whom are active duty veterans -- deserve
comparable enhancements to Selected Reserve MGIB programs.
MGIB benefits are available to members of
the Selected Reserve under two separate authorities.
Active duty members who agree to a four year commitment in the Selected Reserve
after successfully completing their active duty commitment are authorized certain enhanced
MGIB benefits under Section 3012 of Title 38. Individuals
who join the Selected Reserve directly are authorized educational assistance under
Chapter 1606 of Title 10. To encourage
recruitment of experienced high-quality active duty veterans into Guard and Reserve units,
the benefits authorized under Section 3012 should be enhanced along the lines proposed in
H.R. 1182 and 1071. The Subcommittee staff
should work with the Military Personnel Subcommittee of the House Armed Services Committee
to develop similar adjustments to the Title 10 MGIB program for members of the Selected
Reserve. As a minimum, members of the
Selected Reserve should be authorized accelerated MGIB benefits on the same basis as
proposed in H.R. 1071; in addition, the delimiting date for MGIB usage should be extended
for members entitled to MGIB benefits who successfully complete their service commitments. The
Retired Officers Association recommends that MGIB enhancement legislation be amended to
include appropriate enhancements for members of the Selected Reserve. CONCLUSION The Retired
Officers Association deeply appreciates the Chairman and distinguished members of the
Subcommittee on Veterans Benefits for holding a hearing on the future of the Montgomery GI
Bill. In a volunteer force era, the MGIB
serves not only the needs and potential of America's veterans but also the broader
national security, economic, and social needs of the country as we look to the 21st
Century. The Subcommittee has taken a bold
step by looking into the future role and potential of the Montgomery GI Bill. TROA will do all that it can to advance
legislative initiatives that will further enhance the
MGIB. |
