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GAO-10-561R 1 (2010-04-01)

handle is hein.gao/gaobaanru0001 and id is 1 raw text is: 


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        Accountabihly I Integrity * Relabiity
United States Government Accountability Office
Washington, DC 20548





          April 1, 2010

          Congressional Committees

          Subject: Military Personnel: Military and Civilian Pay Comparisons Present Challenges
          and Are One of Many Tools in Assessing Compensation

          The Department of Defense's (DOD) military compensation package, which is a myriad of
          pays and benefits, is an important tool to attract and retain the number and quality of active
          duty servicemembers it needs to fulfill its mission. Compensation can be appropriate and
          adequate to attract and retain servicemembers when it is competitive with civilian
          compensation. However, comparisons between military and civilian compensation present
          both limitations and challenges. As we noted in 1986, exact compensation comparisons are
          not possible because no data exist which would allow an exact comparison of military and
          civilian personnel with the same levels of work experience.' Also, nonmonetary
          considerations complicate military and civilian pay comparisons because their value cannot
          be quantified. Specifically, military service is unique in that the working conditions for
          active duty service carry the risk of death and injury during wartime and the potential for
          frequent, long deployments unlike most civilian jobs.

          Additionally, there is variability among past studies in how compensation is defined (e.g.,
          pay or pay and benefits) and what is being compared. Most studies, including those done by
          the Congressional Budget Office (CBO) and RAND Corporation (RAND), have compared
          military and civilian compensation but limited the comparison to cash compensation-
          using what DOD calls regular military compensation-and did not include benefits.2 DOD
          also has done studies comparing military and civilian compensation as part of its
          Quadrennial Review of Military Compensation (QRMC)-a review required by law, every 4
          years, of the principles and concepts of the compensation system for members of the
          uniformed services.3 The 2008 QRMC (the 10h) focused its attention on seven
          compensation-related areas, including the adequacy of compensation, and recommended,
          among other things, including both cash and some benefits, for example health care, when
          assessing military compensation. As a result, the DOD-sponsored review found that military
          compensation compares approximately with the 80th percentile of comparable civilian
          compensation (i.e., that 80 percent of the comparable civilian population made less than the


          'GAO, Military Compensation: Comparisons with Civilian Compensation and Related Issues,
          NSIAD-86-131BR (Washington, D.C.: June 5,1986).
          2Regular military compensation is the sum of basic pay, allowances for housing and subsistence, and
          the federal income tax advantage-which is the value a servicemember receives from not paying
          federal income tax on allowances for housing and subsistence. It was initially constructed by the
          Gorham Commission in 1962 as a rough yardstick to be used to compare military and civilian-sector
          pay.
          337 U.S.C. §1008.


GAO-10-561R Military Compensation


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