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MILITARY COMPENSATION. NCOA urges the Congress of the United States to improve the compensation package for most military personnel so that amounts receivable realistically equate to those nou earned in the civilian sector. The package should reflect increases in basic pay and subsistence (BAS) and housing (BAQ/VHA) allowances (so that housing costs for oilitary personnel residing off-post will reflect the intent of Congress to subsidize 80% of the costs).

Lack of concern by Congress in the 1970s for adequate and comparable compensation caused many talented and qualified personnel to leave the military for civilian pursuits. The results were devastating. Experience proves that it's more expensive to rebuild a strong manpower readiness capability than to maintain one.

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Military pay is estimated to be some 11% behind comparable civilian pay, based on the current Employment Cost Index (ECI). Not only have basic pays been capped the last six (6) years (below increases in the private sector) but out-of-pocket housing costs for servicemembers have gone from 15 percent in 1981 to 22 percent in 1987.

Compression still exists in the noncommissioned/petty officer pay grades, particularly among E-45 thru E-7s. Enlisted members in pay grade E-4, for example, are charged with greater responsibility, yet the increase from the next lower grade is less than that received for advancement from grade E-2 to E-3. The last "targeted" pay hike for NCOS/POS was in FY 1982. It partially addressed the issue but failed to correct the continuing disparity.

The 1986 congressionally-approved military retirement system (P.l. 99-348) was allegedly designed to encourage longer active service, yet pay scales for some mid-level officers and enlisted Day grades were not restructured to encourage retention beyond 20 years. Needs to be addressed by Congress.

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ATTACHMENT (B)

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ENLISTED SEPARATION PAY. NCOA advocates the passage of authorization for the payment of separation pay to regular-conponent enlisted personnel of the United States Armed Forces under conditions sinilar to provisions authorizing such pay to commissioned officers of the Uniformed Services as provided in Sections 642 and 1174. Title 10. United States Code.

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Enlisted personnel of the regular components of the Armed Forces are not entitled to separation day even if their active service totals 19 years, 11 months and 29 days and their character of service is honorable. They receive nothing from the U.S. government to assist in transitioning from years of military living to an unfamiliar civilian environment.

All other federal employees, including quasi-federal employees (i.e.- postal employees). foreign hires, commissioned officers of the Uniformed Services, and reservists called to active duty, are authorized separation (or severance or readjustment) pay when their active employment or service with the United States government is terminated.

For more than a decade DOD has proposed separation payments for enlisted personnel in each of its drafts of legislation making changes to the (pre-1986) military retirement system. When faced with a ultimatum from Congress in 1986. DOD dropped the proposal from its final recommendation. It has not resurfaced despite earlier promises to advocate such legislation.

Separation, severance or readjustment pay for enlisted personnel has been recommended by the following:

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Interagency Committee (IAC) - 1971
DOD Retirement Study Group - 1972
Defense Manpower Commission - 1976
President's committee

on Military compensation - 1978
General Accounting Office (GAO) • 1972 and 1978

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ATTACHMENT (C)

NILITARY HEALTH CARE. The purpose of the military health care system is to create and naintain high norale in the uniforned services by providing an improved and uniform progran of medical and dental care for eligible beneficiaries (as defined in Chapter 55. Title 10, U.S. Code). Application of a user tax or fee, or similar charge for the receipt of health care should be no nore than currently imposed upon beneficiaries pursuant to sections 1075. 1076. 1079 and 1086 of Chapter 55. Title 10, U.S. Code. Section 1078 should be repealed.

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The Civilian Health and Medical Program for the Uniformed services (CHAMPUS) requires substantial reform. Priority should be focused on requiring civilian physicians, et al. who subscribe to Medicare to accept CHAMPUS patients (and to directly submit claims for reimbursement); stabilize program of accepted care and treatments (constant changes tend to confuse participants); establish a $3.000 annual catastrophic limit for military retirees and their dependents; expand authority to commanders of military catchment areas to personally supervise funds for CHAMPUS (as well as all health care programs) available to eligible beneficiaries within his/her area of responsibility. and authorize the use of CHAMPUS by retirees and dependents, 65 years of age or older, if Medicare fails to cover the required care available under CHAMPUS.

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PRIMUS and NAVCARE. continue authorizing and funding these clinics until MIFs and CHAMPUS are again able to accommodate eligible beneficiaries.

HIGH MORAL OBLIGATION. In 1974 the House Armed Services Committee reported that medical care to nonactive duty beneficiaries was a high moral obligation based on promises made to servicemembers as inducements to enlist, reenlist and stay for IRAVEL AND TRANSPORTATION. In complying with official orders involving travel, temporary duty, and changes of station. the federal government should reimburse military personnel for legitimate out-of-pocket expenses incurred while performing such orders. MORALE, WELFARE_AND RECREATION (MUR). Congressional actions over past few years have reduced appropriated fund (APF) support. Visibly affected are revenue-generating activities, particularly in netropolitan areas. The result has been a decided decrease in troop borale and a difficulty in finding adequate funds to operate on-post clubs. MWR is critical to the nation's military effectiveness.

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ATTACHMENT (D)

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Permanent Changes of Station. Congress continues to reduce PCS fundings because of a belief that the military services do not use prudence in ordering uniformed personnel from station-to-station. Servicemembers must use their own finances to effect the move and are never fully reimbursed by the government. Military personnel need to be treated in a manner more closely related to that which provides reimbursements authorized to federal employees moving under official governmental orders.

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Household Goods. The current weight allowances for the transportation of household goods are anachronistic, based solely on the pay grade of the servicemember without consideration for family size or time-in-service. Allowances should be a reflection of all three considerations with greater weight given to family size. Time-in-service should have as much influence as pay grade. It's inequitable to authorize a greater allowance for a newly commissioned officer (pay grade 0-1) than a NCO/PO in pay grades E-4 thru E-8.

0 Temporary Duty and Per Diem Allowance. A per diem allowance is provided military personnel ordered to temporary duty away from a permanent duty station. Commissioned officers receive both per diem and subsistence allowances while enlisted servicemembers normally receive the per diem but no subsistence allowance. Equal payments to enlisted personnel were authorized in 1980 but congress has failed to appropriate funds. Require appropriations for this item.

0 Temporary Lodging Expenses. FY 1987 defense authorization act limited TLE to pay grades E-4 and below undergoing permanent change of station. ILE originally authorized to alleviate out-of-pocket expenses incurred by servicemember when seeking housing at new duty station. FY 1988 authorizes payment to all grades. Full funding for this program is needed to alleviate use of appropriations from other personnel programs.

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MWR Facilities in Metro Areas. The congressionally-generated rationale that similar activities are readily available for the troops in the civilian community is questionable. Location, cost, and membership eligibility preclude many servicemembers from actively participating.

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MWR Facilities in General. Available to troops, not only to improve morale and provide recreation as a physical outlet following the daily work schedule, but to keep them occupied during off-duty hours. In many areas, facilities offer incentive to stay on-post rather than travel long distances over short periods of time to find outside recreational outlets. In short, MW R helps save lives that might otherwise have been lost on the highways.

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Clubs. Should not be classified fully as revenue-generating activities. Most used for other purposes: 1.e.meetings, symposiums, classrooms, conferences, etc. Require some appropriated funds.

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Commissaries. Halt the insidious attempt by the Administration to privatize military commissaries and. possibly, on-post retail stores (exchanges). More than adequate justification has been presented to Congress over the past 15 years to close the book on this subject once and for all. Congress is urged to insert language in the authorization 0111 to forbid the testing of or the actual privatization of military commissaries and exchanges.

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ATTACHMENT (F)

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