Accession Number : ADA489432


Title :   Assessing Compensation Reform: Research in Support of the 10th Quadrennial Review of Military Compensation


Descriptive Note : Monograph


Corporate Author : RAND NATIONAL DEFENSE RESEARCH INST SANTA MONICA CA


Personal Author(s) : Asch, Beth J. ; Hosek, James ; Mattock, Michael ; Panis, Christina


Full Text : http://www.dtic.mil/get-tr-doc/pdf?AD=ADA489432


Report Date : 2008


Pagination or Media Count : 141


Abstract : Military retirement reform has been a central element of the policy debate regarding why and how to restructure the system for compensating members of the U.S. armed forces. Concerns about the compensation system, and the retirement system specifically, include the rising cost of military compensation and the need for greater efficiency in the provision of compensation, the greater need for flexibility to reshape the force as missions change in ways that challenge the current compensation system, and issues related to the equity of military retirement benefits of active versus reserve personnel, junior versus senior personnel, and military personnel versus their civilian counterparts. Active members can claim retirement benefits before reservists can; junior members who leave prior to completing 20 years of service do not qualify for retirement benefits, unlike their more senior counterparts; and the 20-year vesting rule is outside the civilian vesting norm of 5-7 years of service, under the Employee Retirement Income Security Act of 1974 (ERISA). The 10th Quadrennial Review of Military Compensation (QRMC), building on previous studies and commission reports, including the 2006 report of the Defense Advisory Committee on Military Compensation (DoD, 2006) and the 2000 report of the Defense Science Board Task Force on Human Resources Strategy, has proposed an alternative military retirement system that addresses concerns regarding the current system while still sustaining the force. The defined benefit (DB) and defined contribution (DC) plans are the foundation of the alternative system considered in this analysis. RAND was asked to develop a modeling capability to assess compensation alternatives, such as the QRMC proposal, in terms of their effects on military retention, retirement behavior, vesting, cost, reserve participation, and the value of compensation from the perspective of the member leaving active duty. This monograph presents the results of that study.


Descriptors :   *RETIREMENT(PERSONNEL) , *PERSONNEL RETENTION , *BENEFITS , *COMPENSATION , *ACTIVE DUTY , *MILITARY FORCES(UNITED STATES) , *MILITARY RESERVES , OFFICER PERSONNEL , MILITARY SEPARATION , COSTS , ENLISTED PERSONNEL , CIVILIAN PERSONNEL


Subject Categories : PERSONNEL MANAGEMENT AND LABOR RELATIONS
      MILITARY FORCES AND ORGANIZATIONS


Distribution Statement : APPROVED FOR PUBLIC RELEASE