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Military Compensation Committee Hears Proposals

By Sgt. Sara Wood, USA
American Forces Press Service

WASHINGTON, July 21, 2005 – The Defense Advisory Committee on Military Compensation met here July 20 to hear presentations about the current state of military compensation programs and recommendations to improve those programs.

The areas covered were retirement compensation, health benefits, special incentive pay, quality of life and reserve component compensation. Each area was covered by a subcommittee consisting of two members of the advisory committee and a special consultant.

Each subcommittee examined the current state of the program, its strengths and weaknesses and possible alternatives for improvement. Some of the notable recommendations were changing the health care system to mitigate future costs by either modifying cost sharing or instituting new benefits; consolidating special incentive pay and changing the levels of payments to reward performance; and changing the reserve compensation program to make it more like the active duty program.

The committee has been tasked with creating an architecture for the entire military compensation system, and this meeting gave committee members an idea of a couple key issues that need to be addressed, said retired Adm. Donald L. Pilling, chairman of the committee and former vice chief of naval operations.

"The two key components, I think, were that we have to clearly understand if we have the right mix between current and deferred compensation," he said, "and how we get the active and reserve compensation systems looking more alike."

The recommendations made at the meeting will not be followed through on until the architecture for the system is created, Pilling said, because all changes will have to be consistent.

"Until we lay down the architecture, we really don't have any solutions to anything," he said.

The Defense Advisory Committee on Military Compensation is a seven-member committee with a purpose of providing the Secretary of Defense with assistance and advice on matters pertaining to military compensation. Members are civilians who are recognized as experts in the field of compensation and are appointed by the secretary of defense for one-year terms.

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Defense Advisory Committee on Military Compensation

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