Pay Panel Recommends Sweeping Changes

The Defense Advisory Committee on Military Compensation (DACMC) released details of its recommendations Feb. 28. For the retirement system, the committee recommends vesting members at 10 years rather than 20, paying graduated retirement plans ranging from 25% of base pay at 10 years to 100% at 40 years, establishing a Thrift Savings Plan with government contributions of 5% to 10% of base pay, providing “gate pays” at specific service milestones, and delaying the onset of retired pay until age 60. The committee also recommends two pay-for-performance measures: (1) linking pay to time in grade rather than years of service; and (2) eliminating the “with dependents” and “without dependents” provision of basic allowance for housing so that all service members in the same pay grade receive the same allowance, regardless of their family situation.