personnel and readiness personnel and readiness current issues dr. david s. c. chu under secretary...

3 Military Compensation 9 th QRMC: identified significant gap in military member’s regular military compensation Goal: ensure military pay would be equal to the 70 th percentile of earnings for private sector employees with comparable education and experience FY2000/2001/2002: Congress makes annual pay raises equal to ECI + 1/2% / targeted raises are introduced / President adds $1B to mil pay FY : officer pay gap closed and 73% of enlisted gap eliminated (benchmark: 70% percentile) 2006: 97% of enlisted pay gap closed Combination of increase in basic pay (ECI + ½) & substantial increases in BAH 2007 raise eliminated the gap 2.2% across-the-board pay raise Targeted pay raises for mid-grade and senior enlisted as well as warrant officers. Expanded military basic pay table from 30 to 40 years of service 2008: 3.5% basic pay raise equals ECI + 0.5% 2009: 3.4% proposed base pay increase