Introduction Of The Military Pay Compatibility Act Of 2003
Mr. Speaker, I rise today to introduce the Military Pay Compatibility Act of 2003. Joining me is my dear friend and colleague Representative Ike Skelton, the ranking Member of the House Armed Services Committee. He is a man of great wisdom…
Mr. Speaker, I rise today to introduce the Military Pay Compatibility Act of 2003. Joining me is my dear friend and colleague Representative Ike Skelton, the ranking Member of the House Armed Services Committee. He is a man of great wisdom and preeminence with respect to all things military and I appreciate his guidance and support.
In short, this legislation will ensure that military pay raises keep pace with civilian pay growth.
Please allow me to explain why this is important. Military pay tables were overhauled in 1971, with the advent of the all-volunteer force, and basic pay was set to provide reasonable pay comparability with private sector pay for civilian workers with similar skills, education and experience.
But military raises were capped for budgetary reasons during the 1970's, and serious retention and readiness shortfalls followed. These problems were addressed with double-digit raises in 1981 and 1982, after which it was generally acknowledged that military pay was reasonably comparable with private sector pay.
Despite this hard-learned lesson, the extended retention rebound of the 1980's, coupled with rising budget deficits, led multiple Administrations and Congress to continue capping military raises below private sector pay growth in 12 of the next 16 years.
In 1999, the cumulative military pay raise shortfall since 1982 had reached 13.5 percent--predictably accompanied by a new retention and readiness crisis.
Congress responded by enacting provisions in the FY 2000 Defense Authorization Act specifying that, for years 2000 through 2006, each year's military pay raise is to exceed the civilian pay growth, as measured by the Bureau of Labor Statistics' Employment Cost
Index, or ECI, by \1/2\ percent per year. The 2001, 2002 and 2003 pay raises actually exceeded this standard and cut the gap from 13.5 percent to 6.4 percent.
In May 2002, the Department of Defense released its Ninth Quadrennial Review of Military Compensation (QRMC), which acknowledged that current pay structure lags considerably behind pay for civilians of comparable age and education. And, the Department of Defense has been supportive of increased raises to restore a new comparability standard.
In summary, the capping of military pay raises below private sector pay growth for extended periods during the past 30 years has led to significant retention problems among second-term and career members of the Armed Forces.
Such retention problems cost the United States more in terms of lost military experience, decreased readiness, and increased training costs than maintaining the principle of pay comparability.
The remaining so-called pay comparability gap should be eliminated as quickly as possible, and military pay increases must sustain full comparability with increases in the Employment Cost Index.
My bill would ensure that military pay raises never again lag civilian pay raises. Existing authority to close the pay gap expires in 2006. This legislation adds to that authority by specifying that military pay raises must be at least at the level of civilian wage growth beginning in 2007.
I have been asked if I am doing this because of our troops returning from the Middle East and the war in Iraq. The answer is no and yes. No because this legislation builds on the legislation I offered in the 107th Congress and addresses the same problem of the pay gap with a different approach. This issue is not new to me.
The answer is also yes because I can think of no better way to show continued support for our troops than to send them a clear signal that the Congress and the nation value their service and sacrifice, both today and in the future.
This measure has the full endorsement of the Fleet Reserve Association and the Military Coalition, and I have attached their letter of endorsement.
Mr. Chairman, I urge my colleagues to cosponsor this important legislation and work to ensure its quick passage. Nearly identical legislation was introduced in the Senate yesterday. Working together with our Senate colleagues, I urge my colleagues on the House Armed Services Committee to include this legislation as a provision of the National Defense Authorization Act for Fiscal Year 2004.
The Military Coalition,
Alexandria, VA, April 30, 2003.
Hon. Susan A. Davis,
House of Representatives,
Washington, DC.
Dear Representative Davis: The Military Coalition (TMC), a
consortium of nationally prominent uniformed services and
veterans' organizations representing more than five and one
half million current and former members of the seven
uniformed services, plus their families and survivors,
strongly supports legislation you are preparing to introduce
that would amend title 37, United States Code, concerning
future military pay raises and their comparison with private
sector pay growth. Under the provisions of your proposal,
increases in pay for members of the uniformed services would
match the growth in the Employment Cost Index (ECI).
This is a priority issue, and the Coalition strongly
supports the introduction of such legislation. The Office of
Management and Budget (OMB) already recommended that future
military pay raises be based on the Consumer Price Index
(CPI). If that were adopted, military personnel would not
receive comparable pay increases with those in the private
sector, thus halting progress in closing the pay gap between
military and civilian pay levels. In addition, the
Administrations budget request would cap FY2004 pay increases
for NOAA and PHS personnel at the CPI level.
The ECI measures private-sector wage increases, while the
CPI is an inflation gauge to preserve the purchasing power of
retired pay, veterans' benefits and other programs. Retaining
the ECI will ensure that pay increases for all seven of the
uniformed services mirror those in the civilian economy. This
is important to maintaining adequate recruiting and retention
within the services and subsequently to our Nation's military
readiness.
The Coalition appreciates your leadership on this issue and
will work toward the enactment of this legislation into law.
Sincerely,
The Military Coalition.