BHA

[Casey]

Some jobs have an adjustment based on location, based on a percentage of your salary. It's also taxed and doesn't increase with dependents.

Some jobs don't.

Maybe they should just ditch the tax free BAH and do something like that? Get ready for the rude awakening of a 100% of your paycheck being taxed.

Stop BAH and dependent pay and make locality factored in as a percentage of the base salary?

And you're not talking about "government decisions," you're talking about military decisions...

Good thoughts, and maybe it wouldn't be a bad way to go ultimately. Personally, I don't have a problem with paying taxes at the rate MA or federal government charges. I'm a product of public schools and a service academy in addition to many other of the benefits taxpayers have contributed to, might as well pay my share. As long as I know up front what the deal is, I have the planning ability to manage my own money as I see fit to set my family up long term.



Fair to the gov vs military decisions comment although same sentiment applies. It would still save money for the government if the Army enforced a policy of living on post where space was available across the board. You give up your BAH completely living on your own as a O1/O2 on post, covers your housing and utilities. If you have a roommate, they give you back a little under half.

 

[AF6872]

So as I read the above' if I am a E-whatever or a O-whatever and I am stationed in Boise Idaho and my counterpart is stationed at Andrews both with horrible CO's (same job, same duty requirements and description) they get more Basic Pay at Andrews? What a nightmare to figure that one out. Put another xmillion dollars in Finance and put another xmillion more bean counters in the Remington Raider Pipeline. I think Kodiak is required for on base and they get temporary Hotel accommodation until Base housing is available and they are required to take the first available home. My choice was DEW Line or SEA for remote. I chose SEA. I hate the cold.

 

[raimius]

Ending bah and increasing base pay would cost the government more money, so it defeats their purpose. Retirement is based off your base pay. As soon as you retire, that BAH part of your pay vanishes, and your pension is 50% of base pay (if you did 20yrs). In the end, this is about how to pay people less without inciting too much anger.

 

[LineInTheSand]

Ending bah and increasing base pay would cost the government more money, so it defeats their purpose. Retirement is based off your base pay. As soon as you retire, that BAH part of your pay vanishes, and your pension is 50% of base pay (if you did 20yrs). In the end, this is about how to pay people less without inciting too much anger.

So don't increase the base pay, just add on a locality based percentage (which changes, but is also taxed, and is independent of dependents).

 

[Day-Tripper]

Ending bah and increasing base pay would cost the government more money, so it defeats their purpose. Retirement is based off your base pay. As soon as you retire, that BAH part of your pay vanishes, and your pension is 50% of base pay (if you did 20yrs). In the end, this is about how to pay people less without inciting too much anger.

Apart from the increased retirement costs (and how many service members stay in long enough to qualify for a 20 or 30 year pension? 10% at most would be my guess) there is the issue of bureaucratic administrative confusion. For example, all federal civilian employees are subject to COLA (cost of living allowances) if they live in high-costs regions. But most federal employees stay in the same place for their entire careers. If they're real bigshots they might to move to DC (and stay there). But the military? They move constantly. Often, annually. How difficult would it be for the administrative bureaucracy to catch up with all those moves? Even with computerized files and whatnot.

Right now the average federal retiree waits 3-6 months before starting to receive their permanent pensions. And those numbers are pretty easy to calculate.

I can imagine a young lieutenant getting transferred from Louisiana to Hawaii and waiting eight months before getting their COLA for the 50th state to kick in (and having to live on Louisiana BHA in Oahu in the interim).