Saturday, February 1, 2014

Big changes are in the works for BAH

A new allowance could be a combination of housing and food expenses, and discontinue the higher "with-dependents" pay rate.

The Department of Defense is considering very seriously to...
ditch the famous Basic Allowance for Housing entitlement, widely known as BAH, in favor of a brand new and fresh allowance, which is being reffered to as "locality allowance". The visage of this "locality allowance" is already completed, but officials are still discussing whether they are going to launch it or not. More specifically they are trying to compare the benefits and drawbacks of such a change in the housing allowances sector.

But before continuing with the story, let's try to enumerate all the factsabout this new allowance, that have become known to the public. Firstly, this fresh allowance would be only linked to the general cost of living in the locations where each individual troop is assigned. That's something new as the amount you get using our BAH calculator, is linked to the average costs of housing rental in each military base area.

Also, the officials working on this project are currently considering the removal of the dependency status parameter, which currently exists on BAH. This parameter would be replaced by a flatter benefit of dependency in an effort to minimize or even eliminate the distinction between single and married military personnel.

This new locality allowance is only one of many measures that the government is working on in order to reduce the $20 billion spent annually in order to cover the needs of the military. Stay tuned for more info as the officials are working hard to finalize this new promising allowance.

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