Author: Joel Schofer, MD, MBA, CPE
MOAA Post – BRS Decision Should Consider the Whole Story
Here’s a link to a story from the Military Officers Association of American about the new Blended Retirement System (BRS):
BRS Decision Should Consider the Whole Story
The bottom line…
“When making the difficult decision about whether to switch to the BRS, keep in mind the conflicts of interest regarding the BRS: the government stands to save a significant amount with the BRS and, financial service firms can’t wait to guide members’ seeking investment advice into expensive investment products. Tread lightly.”
Peak of Peak Moving Season: Navy PCS LOIs Issuance Ramping Up
By Suzanna Brugler, Deputy, NAVSUP GLS Office of Corporate Communications
SAN DIEGO (NNS) — Naval Supply Systems Command Global Logistics Support (NAVSUP GLS) Household Goods (HHG) announced that Navy permanent change of station (PCS) letters of instruction (LOIs) will be issued during the “peak of the peak” moving season July 5.
Peak moving season runs from the beginning of May until Aug. 15. “Peak of the peak” moving season lands during late June to early July.
“Budget challenges and PCS funding shortfalls have resulted in significantly compressed orders lead time. Our senior leadership fully understands the impact that this compressed lead time has had on our Sailors and their families as the uncertainty associated with waiting for official orders impacts all aspects of an impending move,” said Paul Brown, director of NAVSUP GLS warfighter family support.
In an effort to mitigate the impact of short notice release of orders, the Navy is expanding the issuance of LOIs in order to enable greater flexibility and to provide greater certainty to an already stressful situation associated with a PCS move.
Currently, Sailors receiving orders to an Overseas or Remote Continental U.S. (CONUS) location are issued LOIs to complete the required overseas screening for the member and their family, to initiate the passport application process, and start any required security clearance investigations. These LOIs are released via message traffic.
Starting in July 2017, Naval Personnel Command (NPC) will begin issuing separate LOIs for most PCS orders not covered by the existing LOIs associated with overseas and remote CONUS assignment.
Sailors will be able to complete operational sea duty screening, update security clearances, take permissive temporary duty (TDY) for residence hunting, begin the entitlement counseling and application processes for the movement of HHG and make reservations for travel with the LOI.
There are some limitations to what can be accomplished with an LOI. An LOI cannot be used to obligate or expend government funds. For example, an LOI cannot be used to receive advance military or travel pay, to charge airline tickets, to secure a pickup date to ship HHG or personally owned vehicles (POV), to place HHG or POVs in storage or to authorize the reimbursement for a personally procured move (PPM).
Upon receipt of the LOI, service members should access the Defense Personal Property System (DPS) and use “NAVYLOI” as the PCS order number when inputting their HHG requirements into the system. The LOI and supporting documents such as a signed DD 1299 (application for shipment and/or storage of personal property) and DD 1797 (personal property counseling checklist) must be digitally scanned and uploaded into DPS.
The LOI shall not be used for actual movement of personnel, dependents, HHG or POVs. It is incumbent on commands to establish successful message traffic receipt and delivery to ensure receipt of LOIs for incoming members.
Depending on the funding environment and the lead time of PCS orders, this may not occur until shortly before the planned move. It is important to note that a moving company cannot be assigned, nor a pickup date guaranteed, until official PCS orders have been released by NPC.
Early application submission of Service members’ HHG requirements into DPS will provide better communication and planning information to industry in order to best serve Navy personnel.
Service members may email questions to householdgoods@navy.mil or call 1-855-HHG-MOVE (444-6683) for assistance. NAVSUP GLS will collaborate with other services to support Navy members who utilize non-Navy Personal Property offices.
Service members are encouraged to visit https://www.navsup.navy.mil/household/ for the schedule of HHG entitlement webinars and other valuable information. This website or the local personal property office will provide families with detailed instructions on completing the online household goods move application in DPS, accessible through www.move.mil.
Commands are requested to proactively encourage members to begin the HHG move application process as early as possible. Additionally, upon receipt of a LOI, service members may request permissive TDY for residence hunting in accordance with MILPERSMAN 1320-210.
The following orders will not receive LOIs: temporary limited duty (TLD), home port changes, pre-commission units, Expeditionary Combat Readiness Center (ECRC), Afghanistan-Pakistan (AFPAK) Hands, pregnancies, accessions, retirements and separations.
Members who move their HHG or POV without funded PCS orders in hand will not be reimbursed for expenses incurred prior to receipt of orders.
As a recap, to get started creating your application in DPS without orders, follow the below guidelines:
– Access DPS online by going to www.move.mil;
– Select “Yes” when asked if you have hard copy orders;
– Use “NAVYLOI” for the Order Number;
– Use the current date as the Order Date;
– Upload LOI into DPS as the Orders;
– Upload signed DD Form 1299;
– Upload signed DD Form 1797;
– Submit application in DPS.
Service members may contact the DPS System Response Center, or help desk, over the phone at 800-462-2176, 24 hours a day, seven days a week for DPS web site related issues. For all others concerns, service members should email questions to householdgoods@navy.mil or call 1-855-HHG-MOVE (444-6683) for assistance.
NAVSUP GLS provides global logistics for a global Navy. The organization is made up of approximately 6,300 military and civilian logistics professionals operating from 105 locations worldwide, providing an extensive array of integrated global logistics and contracting services to Navy, Marine Corps, joint operational units and allied forces across all warfare enterprises.
MODS GME Application Website Open and Tips to Get Selected for GME
The GME application site opens today and can be found here:
https://education.mods.army.mil/navymeded/UserLogon/userlogon.htm
Here is a post I previously wrote with tips on how to get selected for GME:
Navy to Issue Letters of Intent for Most PCS Moves
From Chief of Naval Personnel Public Affairs
WASHINGTON (NNS) — The Navy announced Friday in NAVADMIN 159/17 that beginning July 5, most Sailors will receive a Letter of Intent (LOI) that will help them coordinate a Permanent Change of Station (PCS) household good shipment much earlier, as well as complete other necessary screenings.
These mitigation efforts and innovative process changes will now allow most Sailors to complete operational (sea duty) screenings, update security clearances, take permissive Temporary Duty (TDY) to find a residence, and begin the entitlement counseling and application processes for the movement of Household Goods (HHG) before receiving funded orders.
“We understand the impact that compressed PCS lead times have had on Sailors and their families preparing to move,” said Chief of Naval Personnel Vice Adm. Robert Burke. “That is why we have been working hard to develop and implement solutions within our control that minimize the impact to our Sailors. Our focus and priority remains on manning the Fleet, and taking care of Sailors and their families.”
Previously, only Sailors receiving orders to an overseas duty location were issued LOIs to start the process of completing overseas and medical screenings, dependent entry approval, passport applications and security clearance requests. Now, most Sailors will receive an LOI.
“While we are working hard to ultimately provide Sailors six months of orders lead time, these are tangible changes that will help Sailors prepare for their upcoming move several months in advance,” said Burke. “We believe these changes will enable greater flexibility and help alleviate some of the challenges of the already stressful situation associated with a PCS move.”
Upon receipt of an LOI, Sailors should access the Defense Personal Property System (DPS), accessible through http://www.move.mil. If not in receipt of funded PCS orders, “NAVYLOI” should be entered as the PCS order number to begin the process of shipping their HHG. When funding is received and PCS orders are issued, NPC will provide the HHG offices with a copy of the Sailor’s PCS orders for upload into DPS and send the moving request to industry. Additionally, Personnel Support Detachments can make reservations for travel with the LOI.
However, because an LOI does not contain a line of accounting, it cannot be used to issue tickets, receive advanced military and/or travel pay, ship HHGs and Privately Owned Vehicles (POV) or place them in storage, or used to reimburse for a personally procured move.
While most Sailors will receive an LOI for their PCS orders, the following types of orders are not eligible to receive one: Temporary Limited Duty (TLD), Home Port Changes, Pre Commission units, Expeditionary Combat Readiness Center (ECRC), Afghanistan-Pakistan (AFPAK) Hands, pregnancies, accessions, retirements and separations. These types of orders have defined release timelines well in advance, making an LOI unnecessary.
Service members are encouraged to visit https://www.navsup.navy.mil/household/ for the schedule of Household Goods Entitlement Webinars and other valuable information. This website or the local Personal Property Office will provide families with detailed instructions on completing the online household goods move application. Commands are requested to proactively encourage members to begin the HHG move application process as early as possible.
Commander Navy Installations Command (CNIC) provides the following reminders to facilitate other aspects of PCS move planning:
Those Sailors applying for Navy family housing can be placed on the housing waitlist according to the date of detachment from the Sailor’s prior permanent duty station based on their PCS orders, provided that a housing application is submitted within 30 days of the reporting date. Advance applications will be accepted. However, placement on the list will not occur until the Sailor reports to the gaining Command. This ensures Navy family housing waitlists are independent of orders receipt date.
Housing also provides a tool that allows Sailors and their families to engage with Housing Service Center staff at one or more Navy installations worldwide earlier in the PCS process. The Housing Early Assistance Tool (HEAT) can be accessed at http://www.cnic.navy.mil/HEAT, even before PCS orders are issued. No CAC is required to access the website.
Additionally, MilitaryChildCare.com provides a single online gateway for families to access military-operated or military-subsidized child care options worldwide across all Services. Due to the standardized request process and waitlist management tools, the DoD site offers a more streamlined approach for finding and requesting care and providing Anticipated Placement Time (APT) estimates. This allows families to submit requests for care at programs with an APT that most closely fulfills their needs. Since APT estimates may change, families are advised to review all their options on a regular basis and submit requests for all DoD child care operations that may meet their requirements.
For more information on PCS orders lead times and LOI issuance, read NAVADMIN 159/17.
Sailors can also contact the Navy Personnel Customer Service Center at: (866) U-Ask-NPC (827-5672), or via email at: UASKNPC@NAVY.MIL.
Senior Medical Officer, USS BONHOMME RICHARD (LHD6) – O5/O6
The Senior Medical Officer position on the USS BONHOMME RICHARD (LHD6) in Sasebo, Japan is available for an OCT 2017 report. Of note, the ship is changing home port to San Diego:
- O5 to O6 Medical Corps position, overseeing a department of two physicians and 24 medical support staff with an augmented 20 member Fleet Surgical Team during deployments.
- The ship will be in Sasebo, Japan until early spring 2018 with normal off duty travel available in Japan.
- Early spring 2018, the ship will have short patrols with numerous port calls throughout South East Asia.
- The second half of spring 2018 will consist of a return to San Diego for a home port change with multiple island port calls along the way.
- During the 18 month yard period in San Diego, medical care will be conducted in a local naval clinic on an abbreviated schedule. This schedule will allow time to continue specialty competence/experience/activity and training at Naval Medical Center San Diego, as desired.
- The command will have completed all routine certifications and inspections in early fall 2017 and will not require certification or inspection until fall 2019.
- This billet provides a great opportunity to demonstrate senior leadership experience and earn a warfare device.
If you are interested, contact your Detailer and/or Specialty Leader.
Uniformed Services University Chair of Military and Emergency Medicine
Here is the solicitation for nominations for USU Chair, Military & Emergency Medicine. The ideal candidate is likely board certified in Emergency Medicine, but per memo they will consider other operationally relevant specialties if they meet the remaining requirements. Requirements for the position are contained in the PDF, and the report date is no later than 1 May 2018. Any applications need to be returned to BUMED via your Specialty Leader by 17 July. Applications must contain CV/BIO/LOI (letter of intent) with three references. The Navy nominee will come from the Surgeon General so self nomination is not allowed.
Uniformed Services University – Associate Dean, Recruitment and Admissions
Here is the solicitation for nominations for USU Associate Dean, Recruitment and Admissions. Requirements for the position are contained in the PDF, and the report date is no later than 1 July 2018. All applications must be routed through your Specialty Leader to BUMED by 17 July. Applications must contain CV, BIO, and a letter of intent (LOI) with three references. The Navy nominee will come from the Surgeon General to USU, so self-nomination directly to USU is not allowed.
Questions and Answers about Opting into the Blended Retirement System (BRS)
Here is the latest PDF for those facing this decision (if you will have served for fewer than 12 years on December 31, 2017):
Questions and Answers about Opting into the Blended Retirement System (BRS)
MOAA Post – FY18 Defense Bill Kickoff
This article from the Military Officers Association of America (originally found here) has some interesting medicine related comments:
June 23, 2017
The House Armed Services Committee (HASC) subcommittees released their markups of the FY 2018 defense authorization bill this week, providing milder recommendations than in years past.
The active duty pay raise will match the Employment Cost Index at 2.4 percent. This is a welcome change from the president’s budget request of a 2.1-percent raise, which would have widened the existing pay gap between the military and private sector.
For the first time in many years, the mark includes a provision aimed at supporting military spouse employment. It would allow for reimbursement of up to $500 in expenses when a military spouse must acquire a new license or certification as a result of a PCS to a new state.
On the TRICARE front, unlike the budget the DoD recently proposed, the HASC bill proposes no changes for TRICARE For Life, TRICARE Prime, or last year’s new TRICARE Select, and it maintains the current grandfathered fee structure. The new fee structure begins only for those future service entrants after Jan. 1, 2018. This bill would continue to grandfather currently serving and retired servicemembers and families against the large fee hikes proposed in last year’s defense authorization bill.
Other proposed changes to health care include clarifying the roles of the services’ surgeons general, placing greater emphasis on their responsibility for the provision of readiness training at their respective military treatment facilities (MTFs), and prohibiting DoD from reducing inpatient capacity at overseas MTFs.
All in all, MOAA supports the HASC’s balanced approach to reforming military personnel policies and especially appreciates the committee’s rejection of the large TRICARE fee increases proposed in the FY 2018 DoD budget.
I Paid Off My Mortgage – Should You?
(Here is a pdf of this article, one of my personal finance columns I write for a national Emergency Medicine newsletter. Find more of them here.)
I cut a check and paid off my mortgage in February, making me debt-free. It cut my living expenses by about a third and ensured that in four years, at the age of 45, I’ll be financially independent and eligible for military retirement. What a glorious feeling! Should you pay off your mortgage as soon as you can?
Benefits of Paying Off Your Mortgage
You have one less thing to worry about! You’ve got food. You’ve got water. Now you’ve locked in your shelter and may be debt-free on top of that. You can move from “safety” to “love and belonging” on Maslow’s hierarchy of needs.
It reduces your fixed monthly expenses, which goes a long way toward setting you up for retirement, fewer shifts, or even an alternative career path. Housing is usually a large percentage of your monthly expenses, and everyone who decides to purchase their primary domicile should make being mortgage-free a major goal by the time of retirement.
It saves you money, since you’ll likely save tens of thousands of dollars in interest you otherwise would have paid. In addition, if you no longer have a mortgage you should be able to reduce the amount of life and disability insurance you are paying for each month.
Without a mortgage, you can save and invest more money every month. Before I paid off my mortgage I saved 30% of my gross income. I’m not sure how much I’ll save now, but it’ll be more than 30%.
When you pay off your mortgage, you are getting a guaranteed rate of return on the investment. In my case, the rate on my mortgage was 3%. I’m usually in the 33% tax bracket, which means that every dollar I put toward paying off my mortgage earned me a guaranteed return of 2%. This is a remarkably similar return when compared to most low-risk bond yields in recent years. In fact, this is exactly why I paid off my mortgage. I wanted to have a small portion of my retirement savings in bonds, but it made no sense to own bonds that would pay me 3-4% while paying 3% on my mortgage. Paying down your mortgage is a reasonable substitute for buying bonds.
There can be asset protection benefits to paying off your home loan. Some states provide unlimited asset protection for home equity, which makes it nearly impossible to lose your home if a lawsuit doesn’t go your way. Other states, however, protect very little of your home equity. If you want to see what your state protects, go to this link and look for each state’s “homestead exemption”:
http://www.assetprotectionbook.com/forum/viewtopic.php?f=142&t=1566
If you are paying a financial advisor who charges you a fee based on a percentage of your assets under management, by taking some of those assets and using them to pay off your house you reduce your investment expenses.
Benefits to Keeping Your Mortgage
When you make your mortgage payment, some of it goes toward principle and increases the equity in your home. For me this was about $2000/month of forced savings. If you are not financially disciplined, making a mortgage payment will ensure that every month you are squirreling away at least a little bit of money.
Mortgage rates are still near their all-time lows. If you can borrow money at 3-4% and invest it in something that will give you a higher net return, it makes sense to invest the money instead of paying off the mortgage. That said, you have to make sure that you actually invest the money. In addition, there are very few investments that guarantee a return greater than your mortgage. Actually, there probably aren’t any, because of the word “guarantee.” Yes – stocks, high-yield or corporate bonds, real estate, etc. will probably make more than 3-4%, and you can protect yourself by diversifying – but that is certainly not guaranteed.
The after-tax mortgage rate you are paying may be below inflation. For example, my after-tax mortgage rate was 2%. If inflation had been above 2%, I would have been getting paid (in real terms) to borrow money!
The value of real estate tends to rise with inflation but your mortgage payment is fixed, so when inflation increases the value of your house but your mortgage payment remains the same, you are paying the loan back with dollars that are worth less and less as time goes on. When your mortgage is paid off, you give up this benefit.
What Should You Do?
Like most financial decisions, situations vary and this decision can be complicated. The best on-line article I could find that goes through all the complexities of the issue, which my brief article does not, can be found here:
https://financialmentor.com/financial-advice/pay-off-mortgage-early-or-invest/7478
You should always maximize contributions to your retirement accounts, pay off all non-mortgage debt that has a higher interest rate, and save for your children’s education before you consider paying your mortgage off early. But if you find yourself having taken care of all of this, and weighing investing in bonds versus paying off your mortgage, you can’t beat the peace of mind that comes with being mortgage-free!
Joel Schofer's Career Planning Blog 