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Purpose

Purpose. To answer CSAF question:. “Need to look at the discrepancy in pay between our military and the civilian equivalent now quoted at 13.5%. Is there a greater discrepancy in our force (air related and info technology, space, etc.) that is even greater - Check our numbers.”. Current Trends.

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Purpose

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Presentation Transcript

  1. Purpose To answer CSAF question: “Need to look at the discrepancy in pay between our military and the civilian equivalent now quoted at 13.5%. Is there a greater discrepancy in our force (air related and info technology, space, etc.) that is even greater - Check our numbers.”

  2. Current Trends • Recruiting: Missed Delayed Entry Program (DEP) goals seven of last eight months • DEP at 37% for FY99 (6% below goal) • Category I-IIIA 3% below AF goal of 80% • Retention • 2nd Termers: 6.2% below sustainment goal of 75% • Career NCO: 2.4% below 95%; 1st Term 2.2% below 55% goal • Pilots: projected to be 2,000 short by FY02 • Supt Officers: FY98 Non-rated Ops = 56% v. 59% hist avg FY98 Mission Support = 41% v. 53% hist avg • AF understrength for FY98 (99%) and FY99 (98%)

  3. Reduced MRS=Reduced Retention + Readiness • Reforms reduced retention value of MRS • ‘96 Careers Survey Results--“Factors to Stay…” • Enlisted/MRRA: 6 Enlisted/Pre-MRRA: 2 • Officers/MRRA: 4 Officers/Pre-MRRA: 1 • ‘97 Quality of Life Survey Results: • “Retirement system is fair/equitable” ENL: 1st Term = 13%, 2nd Term = 10%, Career = 37% OFF: CG = 32%, FG = 61%, Pilot = 28% • COLA delays/Proposed cuts hurt too • Any attempts to further reduce the MRS is “Non-negotiable!”

  4. What is the ECI? Employment Cost Index (ECI) is “ A measure of change in the cost of labor free from influence of employment shifts among occupations and industries”

  5. Pay Comparability Catch Up Pay Raises Not Unprecedented 1980 = 7.0% 1981 = 11.7% 1982 = 14.3% 13.5% Avg Private-Sector Wage Growth Good Inflation Military Pay Growth • FY96-01 Law ECI = .5% • .5% = $47M for AF only

  6. The Military Pay Gap Good Gap (%) FY

  7. Pay Comparison (Enlisted) • Civilian (Aircraft Mechanic) • Married • Salary Military CivilianDelta % • Starting $22,571 (E-2) $31,700 40% • 7 YOS $30,650 (E-5) $41,170 34% • w/SRB $33,894 (E-5) $41,170 21% • 14 YOS $36,952 (E-6) $48,707 32% • Tactical Acft Maintenance(2A3X3B) • Staff Sergeant (E5) • 7 YOS/Married • Regular Military Compensation (RMC) • Basic Pay $18,698 • Housing Allowance $ 7,447 • BAS $ 2,712 • Tax Advantage $ 1,793 • Sub-Total $30,650 • Addl Comp (SRB) $ 3,244 • Total $33,894

  8. Pay Comparison (Enlisted) • Air Traffic Controller (1C1X1) • Married • Salary Military CivilianDelta % • Starting $23,197 (E-2) $60,189 159% • 8 YOS $32,280 (E-5) $92,773 187% • w/SRB $40,680 (E-5) $92,773 128% • 14 YOS $38,003 (E-6) $101,211 166% • w/SRB $40,076 (E-5) $101,211 153% • Air Traffic Controller (1C1X1) • Staff Sergeant (E5) • 8 YOS/Married • Regular Military Compensation (RMC) • Basic Pay $20,164 • Housing Allowance $ 7,558 • BAS $ 2,738 • Tax Advantage $ 1,820 • Sub-Total $32,280 • Addl Comp (SRB) $ 8,400 • Total $40,680 The above figures have been estimated using FY99 Pay Table as a baseline.

  9. Pay Comparison (Enlisted) • Comm-Computer Systems Operations (3C0X1) • Staff Sergeant (E5) • 8 YOS/Married • Regular Military Compensation (RMC) • Basic Pay $19,461 • Housing Allowance $ 7,447 • BAS $ 2,712 • Tax Advantage $ 1,793 • Sub-Total $31,413 • Addl Comp (SRB) $ 4,865 • Total $36,278 • Civilian (Computer LAN Administrator) • Married • Salary Military CivilianDelta% • Starting $22,571 (E-2) $41,670 85% • 8 YOS $31,413 (E-5) $61,646 96% • w/SRB $36,278 (E-5) $61,646 70% • 16 YOS $41,345 (E-7) $75,901 84%

  10. Pay Comparison (Enlisted) • Security Forces (3P0XX) • Staff Sergeant (E5) • 9 YOS/Married • Regular Military Compensation (RMC) • Basic Pay $19,461 • Housing Allowance $ 7,447 • BAS $ 2,712 • Tax Advantage $ 1,793 • Total $31,413 • Addl Comp (SRB) $ 2,432 • Total $33,845 • Civilian (Police Supervisor) • Married • Salary MilitaryCivilianDelta % • Starting $22,571 (E-2) $23,039 2% • 9 YOS $31,413 (E-5) $41,142 31% • w/SRB $33,845 (E-5) $41,142 22% • 18 YOS $46,324 (E-8) $54,145 17%

  11. Pay Comparison (Enlisted) • Civilian (Auto Mechanic) • Married • Salary MilitaryCivilianDelta % • Starting $22,571 (E-2) $26,175 16% • 7 YOS $30,650 (E-5) $38,494 26% • 14 YOS $36,952 (E-6) $47,663 29% • Vehicle Mechanic (2T3X4) • Staff Sergeant (E5) • 7 YOS/Married • Regular Military Compensation (RMC) • Basic Pay $18,698 • Housing Allowance $ 7,447 • BAS $ 2,712 • Tax Advantage $ 1,793 • Sub-Total $30,650

  12. Pay Comparison (Enlisted) • Information Management (3A0X1) • Staff Sergeant (E5) • 7 YOS/Married • Regular Military Compensation (RMC) • Basic Pay $18,698 • Housing Allowance $ 7,447 • BAS $ 2,712 • Tax Advantage $ 1,793 • Sub-Total $30,650 • Civilian (Administrative Assistant) • Married • Salary MilitaryCivilianDelta % • Starting $22,571 (E-2) $21,984 -2.6% • 7 YOS $30,650 (E-5) $32,330 5.5% • 12 YOS $32,929 (E-5) $40,085 22%

  13. Pay Comparison (Officer) • Aerospace Engineer • Major • 12 YOS/Married • Regular Military Compensation (RMC) • Basic Pay $47,164 • Housing Allowance $12,314 • BAS $ 1,868 • Tax Advantage $ 4,128 • Total $65,474 • Civilian (Aerospace Engineer) • Married • Salary MilitaryCivilianDelta % • Starting $32,701 (2Lt) $52,985 62% • 12 YOS $65,474 (Maj) $84,798 30% • 24 YOS $96,912 (Col) $107,165 11%

  14. Characteristics of ECI • Concerns • Is ECI a good indicator? • Doesn’t include longevity raises/improvements to allowances • “Young enlisted are overpaid” • What is the real gap: 1982 Baseline -13.5%,1980 - 5.5%, 1984 - 7.1%, 1990 - 1.7%, 1992 - 1.4% • Civilian and military basic pay tied by law • Advantages • Index is acceptable to Congress/its use is in law • Provides an accurate measure of “average” changes in pay in the private sector • Information is timely (quarterly) • Index can be forecast with reasonable reliability

  15. Conclusion The 13.5% is the gap between private sector pay growth and military pay growth. We can conclude that highly-technical military personnel are even more underpaid when compared with their counterparts in the private sector.

  16. Compensation Strategic Plan • Restore value of the Military Retirement System (MRS): Restore to a 50% of base pay retirement system • Priority Options: • Return to Final Pay (CSAF) • Return to High-3 • 50% plan with COLA adjustments • Focus on pay • Full ECI annual raise as a minimum • Reduce or eliminate the impact of inflation by FY00 • Plan to narrow pay gap, 00 thru 03 • Reform pay table to reward promotion more than longevity

  17. Restore 50% Retirement Full ECI Raise Reform Pay Tables Compensation Strategy “People continue to be our most vital resource”… Gen Ryan

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