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Military Pay and Benefits: Key Questions and Answers (CRS Report for Congress)

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Release Date Revised March 14, 2006
Report Number IB10089
Authors Charles A. Henning, Foreign Affairs, Defense, and Trade Division
Source Agency Congressional Research Service
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Summary:

In the late 1990s, the military services were facing considerable recruiting and career retention problems. In responding, Congress was mindful of how inadequate pay had contributed to decreased recruit quality in the late 1970s. It authorized larger pay raises, increased special pays and bonuses, provided more recruiting resources, and repealed planned military retired pay reductions for future retirees. In the midst of these efforts, the terrorist attacks of September 11, 2001, took place, providing a sense of national unity and military purpose. The 9/11 attacks and the programmatic changes noted above initially helped recruiting substantially in the early 2000s. However, the grueling pace of deployments to and from Iraq and Afghanistan, combined with the dangers of combat, have finally begun to cause long-anticipated recruiting problems. In 2005, the Army, Army National Guard, and Army Reserve all fell short of their recruiting goals. Career retention is difficult to measure, due to the suspended separation and retirement of many personnel since September 11, 2001, but so far retention has been more than satisfactory. […] Based upon the September, 2004 to September, 2005 Employment Cost Index (ECI), a 2007 pay raise of 2.2% is anticipated without further congressional action. In addition, DOD has announced tentative plans for a midyear targeted pay raise in 2007.
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