I did not serve in the military (big mistake), but I do support those who do and those who did. It seems this nation has a history of giving its veterans the short end of the stick. I guess the attitude is thanks for giving us the best years of your life, now get the hell out and don't come back! Maybe this is because veterans seem to take things in stride, adapt, and overcome. I certainly don't think it is right to short change or change the contracts of those who gave their best for this nation. If it is a breach of contract, then a class action lawsuit may be the best option if your senators and representatives do not shoot this down.
As for the automatic pay raises or even voting themselves a pay raise, I think pay should be based on performance. Who better to judge the performance of their elected representatives? Those who elected them.