S.Amdt. 4637

SA 4637. Ms. HIRONO (for herself and Mr. Sullivan) submitted an
amendment intended to be proposed by her to the bill S. 2943, to
authorize appropriations for fiscal year 2017 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:

On page 249, between lines 12 and 13, insert the following:
(a) Report on Military Compensation Package.--
(1) Report required.--Not later than one year after the
date of the enactment of this Act, the Secretary of Defense
shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a report on the full
array of the military compensation package, including--
(A) the adequacy of Regular Military Compensation to
sustain all aspects of the All-Volunteer Force;
(B) the modernization of the military retirement system to
be accomplished by part I of subtitle D of title VI of the
National Defense Authorization Act for Fiscal Year 2016
(Public Law 114-92; 129 Stat. 842);
(C) indirect compensation that accrues by reason of
military service, including commissary and exchange benefits,
child care, health care, military life insurance, education
benefits, and veterans benefits;
(D) the value of providing greater transparency to members
of the Armed Forces, prospective members of the Armed Forces,
and the public by providing an annual statement to members of
the total value of their military compensation packing,
including the value of the compensation described in
subparagraph (C);
(E) the impacts of the matters in subparagraphs (A) through
(D) on recruitment, retention, and compensation of the All-
Volunteer Force.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) A review of all the components of Regular Military
Compensation, defined by the Department of Defense as the
following:
(i) Basic pay.
(ii) Basic allowance for housing.
(iii) Basic allowance for subsistence
(iv) The tax treatment of pay and allowances.
(B) An analysis of Regular Military Compensation with
respect to the following:
(i) Members of the Armed Forces who are married to other
members.
(ii) Members who reside with other members.
(iii) Members who share accommodations to achieve improved
financial standards.
(C) A review of--
(i) the ability of members to contribute toward military
retirement under the modernized military retirement system
described in paragraph (1)(B), including a review of the pay
and allowances required to contribute under the current
Regular Military Compensation structure and under any
proposed changes to Regular Military Compensation; and
(ii) the adequacy of the modernized system to contribute to
the successful recruitment and retention of individual to and
in military service.
(D) A review of indirect compensation, including commissary
and exchange benefits, child care, health care,
Servicemembers'

[[Page S3741]]

Group Life Insurance (SGLI), education benefits, and veterans
benefits, and the manner in which such compensation impacts
the total military compensation package.
(E) A robust analysis of, and a proposal for reform of, the
personal statement of military compensation issued annually
to each member, including its accuracy, its currency with
current and proposed changes to military compensation, and a
requirement for the clear statement of both ``Total Direct
Compensation'' and ``Service-Estimated Indirect
Compensation''.
(F) An assessment of the adequacy of Regular Military
Compensation, the modernized military retirement system, and
indirect compensation for the recruitment and retention of
the All-Volunteer Force (including the readiness and combat
effectiveness of the Force) and for overall military
compensation.
(G) A review and assessment of any other matters the
Secretary considers appropriate to produce recommendations on
the means by which to best recruit, retain, and reward the
All-Volunteer Force with a competitive compensation and
benefits package.
(3) Form.--The report required by paragraph (1) shall be
submitted in unclassified form, but may include a classified
annex.
(4) Surveys.--Each annual status of forces survey conducted
by the Defense Manpower Data Center (DMDC) after fiscal year
2017 shall include questions on the value of the total
military compensation package, including basic allowance for
housing, to members of the Armed Forces, with such questions
designed to determine the following:
(A) The value of the total military compensation package to
members.
(B) The impact of the current total military compensation
package on the retention of members, and on the recruitment
of individuals to military service in the All-Volunteer
Force.
After section 604, insert the following:

SEC. 604A. DELAY IN EFFECTIVE DATE AND IMPROVEMENT OF REFORM
OF BASIC ALLOWANCE FOR HOUSING.

(a) Delay.--
(1) In general.--Notwithstanding any provision of section
403a of title 37, United States Code (as added by section
604(a) of this Act), or subsection (p) of section 403 of
title 37, United States Code (as added by section 604(b) of
this Act), the reform of basic allowance for housing provided
for in such section 403a shall take effect on January 1,
2019.
(2) Construction of certain dates.--Any reference to
``January 1, 2018'' in section 403a of title 37, United
States Code (as so added), or subsection (p) of section 403
of title 37, United States Code (as so added), shall be
deemed to be a reference to ``January 1, 2019''. Any
reference to ``December 31, 2017'' in subsection (m) of such
section 403a shall be deemed to be a reference to ``December
31, 2018''.
(b) Inclusion of Cost Utilities in Determination of Amount
Payable.--
(1) Inclusion.--Subsection (b)(2) of section 403a of title
37, United States Code (as so added), is amended by striking
subparagraphs (A) and (B) and inserting the following new
subparagraphs:
``(A) A maximum amount of the allowance shall be
established for each military housing area, based on the
costs of adequate housing and utilities in such area, for
each pay grade and dependency status.
``(B) The amount of the allowance payable to a member may
not exceed the lesser of--
``(i) the actual monthly cost of housing of the member plus
an amount equal to the estimated average amount paid for
utilities in the military housing area concerned during the
preceding year; or
``(ii) the maximum amount determined under subparagraph (A)
for members in the member's pay grade and dependency
status.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date of the enactment of this Act
immediately after the coming into effect of the amendment in
section 604(a) of this Act adding section 403a of title 37,
United States Code, to which section 403a the amendment made
by paragraph (1) relates.
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