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FPCD-77-20 1 (1977-08-01)

handle is hein.gao/gaobaacmp0001 and id is 1 raw text is: 




DOCUMENT RESUME


02873 - [A2153253]

Military Compensation Should Be Changed to Salary Systen.
FPCD-77-20; B-163770. August !, 1977. 34 pp. + 6 appendices (13
pp.).

Report to the Congress; by Elmer B. Staats, Comptroller General.

Issue Area: Personnel Management and Compensation (300).
Contact: Federal Personnel aid Compensation Div.
Budget Function: National Defense: Department of Defense -
    Military (except procurement , contracts) (051); Veterans
    Benefits and Services: Income Security for Veterans (701).
Organization Concerned: Department of Defense; Office of
    Management and Budget.
congressional Relevance: House Committee on Armed Services;
    Senate Committee on Armed Services; Congress.
Authority: Career Compensation Act of 1949 (63 Stat. 802).
    Federal Salary Act of 1967, title II (P.L. 90-206; 81 Sta'.
    642).  (P.L. 89-12-2, sec. 2; 79 Stat. 545, 546; 37 U.S.C.
    1008(b)) . (P.L. 113-155; 87 Stat. 605) .  5  U,S.C.  5308.  37
    U.S.C. 1009. S. Ret. 94-446.

         Military compensation should help the services
successfully compete with other employers for the personnel they
require. Study groups and commissions have repeatedly pointed
out that the base pay and allowances system is an inefficient
way to support this objective and have recommended that it be
replaced by a salary systrem. Findings/Conclusions: Measuring
regular military compensation is complicated, and even those
individuals being compensated cannot easily determine their pay.
The base pay and allowances system is also inequitable. The
regular military compensation is greater for married members
than for single uembers of the same grade and length of service.
The base pay and allowances system conceals the cost of military
personnel through the provision of goods rather than cash and
particularly through tax advantage. A salary system would
increase members' awareness of their pay; remove inequities in
pay; and make the cost of military personnel easier to identify.
Suggested methoas of converting to a salary system include: (1)
d veloping salaries based on the pay af a designated segment of
civilian employees, or (2) developing salaries based on current
levels of regular ilitary compensation. Recommendations: The
Congress should replace the military base pay and allowances
system with a salary system. (Authcr/SC)

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