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FPCD-82-78 1 (1982-09-28)

handle is hein.gao/gaobabmpk0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE /5 -7 p WASHINGTON, D.C. 20548 rZLRAL PERUONNIEL AND COMP9rNZATION DIVIION B-125037 SEPTEMBER 28,1982 The Honorable Caspar W. Weinberger The Secretary of Defense Attention: Director, GAO Affairs 119517 Dear Mr. Secretary: Subject: Observations on the April 15, 1982, Joint Services Report, Military Pay Adjustment Mechanism Study (GAO/FPCD-82-78) The appropriate mechanism for annually adjusting military pay levels has been debated with varying degrees of intensity for years. In September 1980, the Congress directed the Presi- dent to submit, not later than April 1, 1981, recommendations to improve the method for determining adjustments in the pay and allowances for members of the uniformed services. In re- sponse to this directive, the Secretary of Defense reported that, in his opinion, there is a fundamental problem with the current adjustment process--the problem being .the absence of a direct link between military and private sector pay--and that this problem should ultimately be resolved. However, the Department of Defense (DOD) declined to recommend changes to the military pay adjustment mechanism until further evaluations could be made. In January 1982, a Joint Services Study Group was formed to continue evaluating alternative pay adjustment mechanisms and to recommend a more appropriate adjustment mechanism than the current indirect link with private sector pay through the Federal white-collar pay system. The Joint Study Group report, dated April 15, 1982 (released in June 1982), recommended that DOD propose legislation which would --sever the existing link between military basic pay ad- justments and the Federal white-collar pay.adjustment process and --establish a direct link with private and non-Federal public sector pay changes by using the Bureau of Labor Statistics' (967063)

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