February Meeting: Tuesday, February 3, 2015 at 11:30 AM at Bluewater Grill, 4 Marina Street, Wrightsville Beach

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Military Officers Association of America SENCLAND Chapter P.O. Box 15207 Wilmington, NC 28408 www.sencland.org February 2015 Editor: Steve Mannell, steve.mannell@gmail.com, (910)723-6168 February Meeting: Tuesday, February 3, 2015 at 11:30 AM at Bluewater Grill, 4 Marina Street, Wrightsville Beach 28480. Menu: Greek Salad with Chicken, Fish and Chips, Blue Water Cheeseburger, or Turkey Cranberry Sandwich with Pasta, and Apple Annie s Cookies for dessert, with soft drinks, coffee, and tea. Price: $15 per person payable at door when entrée selection is made. Cocktails, beer and wine available for purchase. Program: WWII Veterans will be honored with a special tribute to all who served. Three SENCLAND Chapter members will share service and combat memories. They are Maj. Tom Townsend, US Army Air Corps B-17 Navigator with the 8th Air Force; CDR Donald Gray USN, Naval Aviator who flew in the Pacific during the Battle of Midway; and MAJ Durwood Baggett, US Army Infantry during the Battle of the Bulge. Many others WWII Veterans from our Chapter will be honored by name for their service during this special tribute. RSVP: Please RSVP by February 1st to JoAnn Doleman at jdoleman522@gmail.com or 910-540-8459. Next Meeting: Save the date March 3 rd at Bluewater on your calendars! Message from our President, John Stewart Our speaker for the January meeting was our own Capt Bob Philpott, USCG (Ret), who spoke to us on the veterans center established at the Cape Fear Community College. Bob was instrumental in establishing the center and many of our members volunteer to aid the veteran students. The talk was even more meaningful as we broaden our outreach programs to assist these veterans as well. As we mentioned in our last newsletter, we will provide $6500 in scholarship assistance next year with $5000 going to our JROTC winners and $1500 to a veteran in one of the community colleges in our area. We will provide an additional $2000 for other veteran or military related assistance.

The next meeting will be on the 3rd of February at the Bluewater. This will be a deviation from our past speaker system as we recognize the WWII veterans in our organization. We will have some remembrances from members as we recognize and honor all. Plan to come to the meeting and visit with the WWII members. The legislative season, if there is such a thing, is heating up and there are several initiatives to check. The update on legislative items is on our website at www.sencland.org. Check into the site to keep up with status of current issues such as 1) military pay increases; 2) TRICARE increases; 3) a $1 billion reduction in the subsidy to the commissary system; 4) concurrent receipt of military retired pay and VA disability compensation; and 5) the Survivor Benefit Plan/Dependency and Indemnity Compensation (SBP/DIC) offset. Not all of these issues affect all of us, but we need to understand the issues on the table and add our voices to the calls to our representatives to protect these items. We hope to see you in February at the Bluewater as we honor our own. Member Updates Invite an eligible friend to lunch on February 3rd! Make sure to complete the cover page of this newsletter for them! Their 2015 dues are free! We expect to learn of several new members at the meeting. For now, please welcome LTC David R. Harris, USA, of 45 N. Kingfisher Lane, Hampstead, NC 28442, and his spouse, Linda. Capt Gene Palmer, USAF, of 158 Partridge Ridge Rd., Wilmington, NC 28412, and his spouse, Martha. COL Peter Harrington, USA, of 6101 Leeward Lane, Wilmington, NC 28409, and his spouse, Elizabeth. Annual Chapter Dues are Due January Annual Chapter membership payments are due in January of each year. We are pleased to report that over half of our members have already submitted payments and we sincerely appreciate their timeliness. Dues are waived for the following two categories of members: All members 90 years of age or older New chapter members for the remainder of the calendar year in which they join. Thus, if a member joins in January dues are waived for the entire year! Our Chapter derives its funding for Chapter activities almost exclusively through membership dues. The annual dues ($15 for members and $10 for surviving spouses) are the lowest in the State. Chapter dues pay for representational items at military and veteran functions, MOAA logo gifts for luncheon speakers, membership in the North Carolina MOAA Council of Chapters, website maintenance, mailing costs and other operational expenses. Page 2 of 6

As you make your payment, please also consider including a donation to the Chapter s Outreach Programs Fund, which provides the funds for the Junior ROTC Scholarships as well as support for local veterans and military members and their families. Print the following form and mail to: SENCLAND Chapter (MOAA) PO Box 15207 Wilmington, NC 28408 You may also bring the completed form and payment to the monthly luncheon. Name: Dues Mailing address: Donations Total Email Address: Telephone number: Indicate where there are changes such as phone number or a new address. If you have a question about payment status please contact Al Schroetel at downeast@bellsouth.net or 910-686-6905. Are Donationsto the SENCLAND Outreach Program Tax Deductible? The general answer is "YES because the SENCLAND Chapter is recognized by the IRS as a 501(c)(19) nonprofit veterans organization. Here is a passage from IRS Publication 557 that addresses this issue: Tax treatment of donations. Donations to war veterans' organizations are deductible as charitable contributions on the donor's federal income tax return. At least 90% of the organization's membership must consist of war veterans. The term war veterans means persons, whether or not present members of the U.S. Armed Forces, who have served in the U.S. Armed Forces during a period of war (including the Korean and Vietnam conflicts, the Persian Gulf War, and later declared wars). Source: http://www.irs.gov/publications/p557/ch04.html#en_us_2013_publink1000200395 This general information is provided as educational background on this issue. Chapter members should consult their tax or legal advisors for specific guidance pertaining to their personal situation. Page 3 of 6

The Bottom Line New SecDef, New Congress, Old Problems January 13, 2015 By Col. Mike Hayden, USAF (Ret) The 114th Congress is now in office, and secretary of defense nominee Ashton Carter awaits confirmation. Many observers in the press are speculating what this turnover in congressional and Pentagon leadership means for the military community. You can color me interested, too. Carter is known within Pentagon circles as a reformer on acquisition costs, while incoming Armed Services Committee Chairs Sen. John McCain (R-Ariz.) and Rep. Mac Thornberry (R-Texas) also have signaled plans to tackle acquisition reform. But acquisition will not be the only item these three will face. There are several issues over the coming months that will drive the discussion. By Feb. 1, the Military Compensation and Retirement Modernization Commission (MCRMC) will issue its anticipated report detailing proposals to overhaul military compensation and personnel programs. At the same time, the White House will release its FY 2016 budget request. The request must grapple with the budget caps established by sequestration that return in full force Oct. 1. Somehow Congress will need to address the conflict between the budget submission, which is expected to exceed sequestration s limits, and the caps established by the law. Can Congress find cost-saving reforms in time? Acquisition reform can take years to yield savings. Sequestration s budget rules limit where money can be cut to the point where Congress has forced itself to make the false choice between people programs or weapon systems. But infrastructure and weapons programs are political hot buttons that often generate not in my backyard cries from legislators. What s the quickest way to show savings in the accounting books? Draw down troop levels and shift personnel costs onto the backs of servicemembers and their families. The next few months will include a flood of activity for the new secretary of defense, Congress, and MOAA, with political posturing and the formulation of defense bills. The question is whether the MCRMC recommendations will affect the FY 2016 defense bill process. The first year of a new Congress provides greater opportunity to implement sweeping reforms. Legislators arrive in Washington emboldened by a sense of popular mandate in their first year, without the fear of an upcoming election. It s unlikely any MCRMC recommendations will be included in the White House budget submission, as budget planners have been working for months on the FY 2016 proposal. However, this won t stop members of Congress from trying to include them in the defense bill markup process, especially if the proposals come with a blessing from Pentagon leadership. Page 4 of 6

That endorsement might come quickly. The Military Times already has reported Pentagon leaders plan to take a month to review the MCRMC recommendations and finalize a position for the new secretary all in advance of the markup timelines. MOAA s biggest concern is that the new Congress will look at the Pentagon and the MCRMC proposals with the purpose of saving money or cutting the budget and will make decisions based on arbitrary budget caps, without considering how compensation and benefits are necessary to recruit and retain a high-quality allvolunteer force. The bottom line: The next few months will be very busy, and we will need all hands on deck to make sure your voice on the pay and benefits needed to sustain the all-volunteer force is heard by legislators. We ask that you pay close attention to the report in early February and participate in MOAA s grassroots efforts to ensure shortsighted budget savings don t come at the expense of the health of the all-volunteer force. - See more at: http://www.moaa.org/main_article_mb.aspx?id=15612#sthash.zsu0hlhy.dpuf Our Sponsors We appreciate the generous support of our sponsors, which helps defray the cost of publishing this newsletter, and supports SENCLAND MOAA military and veteran outreach activities in our local community. Would you like to highlight your business, church, or favorite community organization; congratulate a friend; or simply use the space to share your message with the chapter and know that your sponsorship will support the mission of MOAA SENCLAND? Let us know, and we ll make more room for you. Thanks! 837 S Kerr Ave Wilmington, NC (910) 799-9023 1121-1 Military Cutoff Rd Wilmington, NC (910) 256-6585 If you would like to discuss MOAA SENCLAND sponsorship opportunities, please email steve.mannell@gmail.com. Page 5 of 6

THE SENCLAND CHAPTER of the MILITARY OFFICERS ASSOCIATION OF AMERICA P.O. BOX 15207 WILMINGTON, NC 28408 RETURN SERVICE REQUESTED February 2015 SENCLAND Chapter (MOAA) Membership Application Form Date of Application: Active Duty Active Reservist Retired Former Officer Name: Rank Service Street Address: City State Zip+4 Date of Birth MM/DD/YYYY: Spouses Name: Home Phone: Email: Are you a National MOAA member? Annual Life Member Note: It is not necessary that you be a member of National MOAA in order to join the local chapter although we strongly encourage you to become a National MOAA member. Your National MOAA membership number (on magazine label): Annual chapter dues of $15.00 are waived for the current calendar year for new members! Please complete this form and mail to the return address above. Call CO Al Schroetel, Membership Chairman, at 910-686-6905 or email downeast@bellsouth.net if you have any questions. We look forward to meeting you! Page 6 of 6