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GAO-10-803R 1 (2010-06-03)

handle is hein.gao/gaobaantd0001 and id is 1 raw text is: ~G A 0 A counability I integrity I Reiability United States Government Accountability Office Washington, DC 20548 June 3, 2010 The Honorable Jim Webb Chairman Subcommittee on Personnel Committee on Armed Services United States Senate Subject: Questions for the Record Related to Military Compensation Dear Mr. Chairman: It was a pleasure to appear before your subcommittee on April 28, 2010, to discuss current issues related to military compensation.' This letter responds to your request that I provide answers to questions for the record from the hearing. The questions, along with my responses, follow. Questions from Chairman Webb Use of Employment Cost Index as Benchmark Index for Military Basic Pay 1. Dr. Murray and Ms. Farrell, in Dr. Murray's prepared statement, she stated that using the Employment Cost Index (ECI) as the benchmark index for annual military pay raises had its limitations, since it measured a population that tended to be older and college-educated, a population whose pay has increased more rapidly over the past decade than younger high school graduates. Is the ECI an appropriate index to use to adjust military basic pay rates annually? If not, is there a benchmark that is more appropriate? In our April 1, 2010 report,2 we noted that using the Employment Cost Index (ECI) for the purpose of determining the amount of the annual basic pay raise for servicemembers has both strengths and weaknesses, but is generally reasonable to use to adjust such pay annually. It should also be noted that basic pay is just one 'GAO, Military Personnel: Comparisons between Military and Civilian Compensation Can be Useful, but Data Limitations Prevent Exact Comparisons, GAO-10-666T (Washington, D.C.: Apr .28, 2010). 2GAO, Military Personnel: Military and Civilian Pay Comparisons Present Challenges and Are One of Many Tools in Assessing Compensation, GAO-10-561R (Washington, D.C.: Apr. 1, 2010). GAO-10-803R Military Compensation

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