TO THE CONGRESS OF THE UNITED STATES:

 My Administration fully supports the underlying objectives of the recommendations that the Military Compensation and Retirement Modernization Commission (the “Commission”) offered in January.  These recommendations represent an important step forward in protecting the long-term viability of the All-Volunteer Force, improving quality-of-life for service members and their families, and ensuring the fiscal sustainability of the military compensation and retirement systems.

As I directed in my letter of March 30, my team has worked with the Commission to further analyze the recommendations and identify areas of agreement.  At this time I am prepared to support specific proposals for 10 of the Commission’s 15 recommendations, either as proposed or with modifications that have been discussed among the Department of Defense, other agencies, and the Commission.  These include the following:

• Survivor Benefit Plan
• Financial Education
• Medical Personnel Readiness
• Department of Defense and Department of Veterans Affairs   Collaboration
• Child Care
• Service Member Education
• Transition Assistance
• Nutritional Financial Assistance
• Dependent Space-Available Travel
• Report on Military Connected Dependents 

In some instances, the Department of Defense is already taking actions to implement these recommendations, and I will direct the Department to develop plans to complete this implementation.  In those areas where legislation is required, I expect the Secretary of Defense to transmit to the Congress on my behalf the relevant legislative proposals, which I recommend be enacted without delay.

With respect to the remaining recommendations, given their complexity and our solemn responsibility to ensure that any changes further the objectives above, we will continue working with the Commission to understand how the following proposals would affect the All-Volunteer Force:

• Blended Retirement System
• Reserve Component Duty Statuses
• Exceptional Family Member’s Support
• Commissary and Exchange Consolidation

I believe there is merit in all of these recommendations and that they deserve careful consideration and study.  I will ensure that the Congress is kept apprised of this ongoing work.

Finally, I agree with the Commission that we need to continue to improve the military health care system.  The health care reforms proposed in my Fiscal Year 2016 Budget are a good first step and offer service members, retirees, and their families more control and choice over their health care decisions.  This remains a critical issue, and my Administration will work with the Commission and interested Members of Congress in the coming months to develop additional reform proposals for consideration as part of my Fiscal Year 2017 Budget.

BARACK OBAMA