DACMC Issues Final Report

The Defense Advisory Committee on Military Compensation (DACMC) released its final report June 8. The report recommends vesting service members at 10 years of service, and commencing graduated retirement payments of 25 percent of base pay, with increases reaching 100 percent at 40 years. It would delay retired pay, however, until age 60. To partially compensate for the deferred retirement pay, it would institute a Thrift Savings Plan with government contributions of 5 percent to 10 percent of base pay. In addition, it would combine the “with dependents” and “without dependents” provisions of basic allowance for housing so that all service members would receive “pay for performance.” And it would reduce and simplify more than 60 special and incentive pays that represent less than 5 percent of a member’s cash compensation. The findings and recommendations will be analyzed as part of the 10th Quadrennial Review of Military Compensation.