Committee Gives Rationale for Pay Findings

In preparing its report, the compensation committee (previous items) offered the following rationale for its findings: “cliff-vesting” retirement at twenty years limits force management options and fails to recognize service of less than 20 years (this is inflexible and inequitable, according to the report); currently no incentive exists to serve beyond 30 years; immediate lifetime retired pay was designed for another era and force; changes are needed to address growing sentiment in the department for “pay for performance;” compensation differences not related to mission demands or performance remain in today’s system; more than 60 special and Incentive pays representing less than 5% of cash compensation are complex to administer; lifetime medical care for retirees crowds out the private sector for second career retirees; and demand for quality of life programs is increasing due to operational tempo and changing demographics.