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Revised deficit plan may take out military pay freeze
Thursday - 12/2/2010, 3:58pm EST
Military Times reports the panel is strongly considering a revised plan that takes out specifics about what to cut from the defense budget. Earlier proposals included a freeze of military pay and cuts in pay to retirees.
The new plan would still require defense spending to be cut by the same percent as domestic spending. And, the Times says it doesn't mean military pay and benefits are completely off the hook. They say it means a final decision would be made later - and probably with more input from the Defense Department.
Discretionary spending - including defense - would be capped at 2008 levels for two years. Then it would be allowed to increase by no more than half the rate of inflation.
The Commission also recommends that a federal task force look at reforming government retirement. That means retirees might have to wait until the age of 62 before they receive their first cost-of-living adjustment.
Members of the National Commission on Fiscal Responsibility and Reform will be voting on a final plan on Friday. Fourteen of the 18 commissioners will have to vote "yes" on the full report for the measures to go forward.
Pension, health care programs could be cut next
This story is part of Federal News Radio's daily DoD Report. For more defense news, click here.