Bill Overview
Title: Overseas Military Pay Protection Act of 2022
Description: This bill prohibits the reduction of the cost-of-living allowance for a member of the Armed Forces assigned to a duty station located outside the United States, except in connection with a permanent change of station. The allowance may be increased at any time. The Department of Defense (DOD) must notify Congress before modifying a table used to calculate living allowances. Additionally, DOD must brief Congress regarding the effects of this bill on living allowances.
Sponsors: Rep. Bacon, Don [R-NE-2]
Target Audience
Population: Active duty military personnel stationed overseas
Estimated Size: 125000
- The bill affects members of the Armed Forces who are assigned to duty stations outside the United States.
- The population directly impacted are those who receive a cost-of-living allowance, which correlates to service members stationed overseas.
- Cost-of-living adjustments are significant financial considerations for those living abroad due to fluctuating expenses such as housing and goods and services.
- Approximately 9% to 10% of active duty military personnel are stationed overseas at any given time based on historical data.
- The legislation aims to protect the financial welfare by preventing allowance reductions unless it's due to a permanent change of station.
Reasoning
- This policy directly impacts approximately 125,000 active duty military personnel stationed overseas who receive a cost-of-living allowance.
- The policy aims to provide financial stability by preventing reductions in this allowance except in cases of station change.
- Military personnel often live on budgets that are significantly affected by fluctuations in cost-of-living rates. Thus, ensuring a stable allowance can enhance their financial well-being.
- Although the policy's budget is limited to $1,295,000,000 over 10 years, this is spread among a sizeable population, implying a need for strategic management to ensure maximum utility.
- The policy will not impact individuals within the US directly, but may have indirect effects on families reliant on these allowances.
Simulated Interviews
U.S. Air Force Pilot (Germany)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This policy will provide a layer of economic security for my family while stationed abroad.
- It's crucial to have financial stability, especially with kids, as unexpected expenses are frequent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 3 | 2 |
Marine Corps Logistics Operator (Japan)
Age: 24 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- The policy reassures me that my living standard won't drop unexpectedly apart from agreed assignments.
- It makes me feel more secure about future financial planning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 3 | 2 |
Army Engineer (United Kingdom)
Age: 40 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 7.0 years
Commonness: 8/20
Statement of Opinion:
- With kids back home, controlling my cost-of-living allowance is essential for sustaining my payments.
- This policy secures a part of my financial planning which was vulnerable to external changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 5 | 2 |
| Year 20 | 3 | 1 |
Navy Communications Specialist (South Korea)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- The assurance of cost-of-living support impacts decisions like starting a family or pursuing further education.
- The policy removes uncertainty and allows better focus on duties.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 4 | 2 |
Coast Guard Officer (Italy)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 13/20
Statement of Opinion:
- The policy benefits living with a local citizen, ensuring my finances contribute properly to the household.
- It helps to know there won't be unexpected financial disruptions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 3 | 2 |
Air Force Mechanic (Guam)
Age: 27 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 17/20
Statement of Opinion:
- Consistent living allowance protects against fluctuating island costs.
- Policy allows us to plan for savings and future expenses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 3 | 2 |
Army Infantry (South Korea)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 19/20
Statement of Opinion:
- This policy gives peace of mind with expenses while adjusting to deployment abroad.
- It provides stability during the initial cultural and financial adjustments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 4 | 3 |
| Year 10 | 2 | 2 |
| Year 20 | 1 | 1 |
Navy Medical Officer (Italy)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 14/20
Statement of Opinion:
- Secure allowances allow better support for my parents back home.
- Focus can be fully applied to my medical role without worry of financial instability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 3 | 2 |
Air Force Intelligence Analyst (Japan)
Age: 31 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 16/20
Statement of Opinion:
- This policy permits better management of personal finances.
- It reduces the disruption potential of external economic factors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 3 | 3 |
| Year 20 | 1 | 2 |
Marine Corps Infantry (Germany)
Age: 28 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- Fixed living allowance means better budgeting for travel and leisure.
- The policy provides a more enjoyable overseas experience.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 4 | 2 |
| Year 20 | 3 | 1 |
Cost Estimates
Year 1: $100000000 (Low: $80000000, High: $120000000)
Year 2: $110000000 (Low: $90000000, High: $130000000)
Year 3: $120000000 (Low: $100000000, High: $140000000)
Year 5: $130000000 (Low: $110000000, High: $150000000)
Year 10: $150000000 (Low: $130000000, High: $170000000)
Year 100: $500000000 (Low: $400000000, High: $600000000)
Key Considerations
- Prohibiting reductions in allowances may constrain the Department of Defense's financial flexibility.
- Economic conditions overseas can change rapidly, affecting the real value of the allowances.
- The fixed nature of allowance adjustments could increase military personnel's purchasing power abroad, despite reducing fiscal efficiency.