FY 17 NDAA impact on Airmen

The new NDAA dropped the dual-mil BAH cuts and came up with a 2.1% pay increase...but under the radar, something far more troubling was inserted into the language. Congress directed the DoD to "...begin planning for a transition to a single-salary pay system no later than Jan. 1, 2018. The goal is to create a system that better aligns the payment with the DOD’s use of the housing allotment as compensation rather than as an allowance." This should worry you if you're currently getting BAH. All that tax free money will now become taxable income, effectively eroding your take-home pay. In a different part of the NDAA, congress directed the DoD to keep retirement payments stable, so you won't get a bigger retirement check just because BAH (and BAS) are now part of your basic pay. No word on how the DoD plans to adjust for PCSing from a low cost of living to a high cost of living area.