1. 1 OUSD(P&R) / Military Personnel Policy 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

2. 2 OUSD(P&R) / Military Personnel Policy 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-1s will receive 2%

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

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

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

6. 6 OUSD(P&R) / Military Personnel Policy 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

7. 7 OUSD(P&R) / Military Personnel Policy Housing Allowance Authorizes BAH for military-married-to- military 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

8. 8 OUSD(P&R) / Military Personnel Policy 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

9. 9 OUSD(P&R) / Military Personnel Policy 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 0-6s or SES civilians)

10. 10 OUSD(P&R) / Military Personnel Policy 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

11. 11 OUSD(P&R) / Military Personnel Policy 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

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