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An Analysis of Pay for Enlisted Personnel (Documented by BethJ Asch

By BethJ Asch

The briefing examines how the pay of enlisted body of workers compares to that in their civilian opposite numbers, how those comparisons have replaced over the years, how the FY 2000 pay activities have an effect on the comparisons, and the way recruiting and retention have fared lately.

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An important disadvantage of a pay raise targeted solely to mid-career personnel is that it creates undesirable notches in the pay table. That is, when pay is increased for E-7s but not for E-8s, the pay increase associated with a promotion from E-7 to E-8 is reduced. Consequently, a promotion to E-8 is worth relatively less, and the pay profile for those who achieve E-8 and E-9 is relatively flatter. This problem is illustrated in the chart, which shows the increase in monthly pay associated with enlisted promotions to E-6 through E-9 under the FY 00 pay table and under HR4313, at specific years of service.

36 First-Term Reenlistment Rates Have Been Falling in the Army and Air Force First-Term Retention Rates 45 40 35 Air Force Army Navy Marine Corps 30 25 20 15 1995 1996 1997 1998 1999 Turning to retention, the next few charts examine recent trends in retention and show projections of how retention and the experience mix of the services might change in the future. This chart shows the trend in the first-term retention rate, by service, defined as the percentage of personnel who, having reached the expiration date of a term of service, were still in service a year later (data provided by the Defense Manpower Data Center).

To compute average retirement wealth, a weighted average of retirement wealth is calculated using the FY 99 grade distribution at YOS 20. 49 Regardless of whether personnel retire under REDUX1 (with a $30,000 bonus paid at YOS 15 for those who retire at YOS 20) or under REDUX’s predecessor, known as High-3, a large fraction of military compensation (assumed here as the sum of average enlisted RMC and expected PV of retired wealth) comes in the form of expected retired pay for those approaching retirement.

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