Defense Finance Accounting Service Configuration and Control

Defense Finance & Accounting Service Configuration and Control Board Compensation Issues FY 2004 Omnibus April 9, 2003 CAPT Chris W. Kopang Director of Military Compensation ODUSD(MPP)/Compensation 703 -693 -1058/chris. kopang@osd. mil OUSD(P&R) / Military Personnel Policy 1

Pay Raise • Effective 1 January 2004 • Targeted pay raises for career NCOs up to 6. 25% • Average increase = 4. 1% • Majority will receive 3. 7% • Most junior members will receive 3. 2%; E-1 s will receive 2% OUSD(P&R) / Military Personnel Policy 2

Percentage Changes in Basic Pay OUSD(P&R) / Military Personnel Policy 3

Proposed FY-04 Basic Pay Table OUSD(P&R) / Military Personnel Policy 4

Comparison Of Military Members' RMC With Civilian Earnings For Some College: 2000 - 2004 New crossover point Cost to close just E-5 to E-7 “gap” $700 M Old crossover point OUSD(P&R) / Military Personnel Policy 5

Housing Allowance • Continues Basic Allowance for Housing reduction in out-of-pocket expenses – FY 2004 rate will reduce out-of-pocket expenses to 3. 5% – Scheduled to be zero by FY 2005 OUSD(P&R) / Military Personnel Policy 6

Housing Allowance • Authorizes BAH for military-married-tomilitary couples in grades E-4 and below on sea duty w/o dependents – Presently only military couples above E-4 are each eligible to receive BAH – Initiative equalizes treatment between junior personnel and rest of force OUSD(P&R) / Military Personnel Policy 7

PERSTEMPO Enhancements • Replaces $100 per day high deployment pay • Compensates members for excessive deployments based on duration and frequency • Sets statutory limit at $1, 000 per month OUSD(P&R) / Military Personnel Policy 8

PERSTEMPO Enhancements • Proposed Pay Scale: >191 consecutive days = $200/month >211 consecutive days = $300/month >400 days out of preceding 730 days = $100 >425 days out of preceding 730 days = $200 >450 days out of preceding 730 days = $300 Combination of duration & frequency = $600 • Reduces decision level to 1 st general/flag officer (including promotable 0 -6 s or SES civilians) OUSD(P&R) / Military Personnel Policy 9

Bonuses • Adjusts maximum for Selective Reenlistment Bonuses from $60, 000 to $120, 000 • Authorizes “Lateral Conversion Bonus” for paygrades E-6 and below who convert from one occupational specialty to a designated undermanned specialty – Provides lump sum bonus up to $4, 000 OUSD(P&R) / Military Personnel Policy 10

Other Initiatives… • Authorizes payment of dependent student’s baggage storage – At member’s option, dependent’s baggage may be stored at government expense—one time per FY travel overseas to member’s overseas duty station • Authorizes military members executing PCS within CONUS option of self-procuring contract to ship a second POV OUSD(P&R) / Military Personnel Policy 11

Questions? OUSD(P&R) / Military Personnel Policy 12