Congress is not in session right now, but when they get back they’ll still be battling over the military budget for 2011. Fortunately for us, the continuing resolution will keep our paychecks coming in as always. What is unknown, right now, is if active duty military members will receive a 1.9% or a 1.4% increase in their base pay in 2011. The Military Times family of newspapers reported that the Department of Defense will begin the calendar year paying the lower amount, and then retroactively increase the pay if the higher amount is approved.
So, for planning purposes, I’m banking on a 1.4% increase in pay, and will update the 2011 TSP allotment to contribute the full $16,500 by the end of the calendar year.
More on that soon!