军人补偿与退休现代化[20150127].pdf

J A N U A R Y 2 0 1 5 P O L I C Y B R I E FMILITARY COMPENSATION AND RETIREMENT MODERNIZATION:A PrimerBy Phillip Carter and Katherine KidderTodays U.S.military includes approximately 1.4 million men and women on active duty and another 1.1 million serving in the Reserves and National Guard.Since the creation of the All-Volunteer Force(AVF)in 1973,the Department of Defense(DOD)has relied primarily on financial incentives,including compensation and nonmonetary benefits such as housing and health care,to recruit and retain the AVF.This reliance has placed a premium on the departments ability to calibrate its financial incentives to build and maintain a ready force,properly support those in uniform and their families,and compete with a dynamic domestic economy.Military compensation stands at an inflection point today.Intense fiscal pressure both inside and outside the DOD budget touches the military personnel accounts.1 Demographic changes within the force(and the broader population of dependents and retirees supported by military compensation)add further pressure to the debate,particularly surrounding housing benefits and health care.The winding down of operations in Iraq and Afghanis