    [Senate Hearing 113-108, Part 6]
    [From the U.S. Government Publishing Office]

                                                     S. Hrg. 113-108, Pt. 6

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                   2014 AND THE FUTURE YEARS DEFENSE PROGRAM

    =======================================================================

                                    HEARINGS

                                   before the

                          COMMITTEE ON ARMED SERVICES
                              UNITED STATES SENATE

                        ONE HUNDRED THIRTEENTH CONGRESS

                                 FIRST SESSION

                                       ON

                                    S. 1197

         TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2014 FOR MILITARY
    ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND
       FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE
       MILITARY PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR, AND FOR OTHER
                                    PURPOSES

                                   ----------

                                     PART 6

                                   PERSONNEL

                                   ----------

                             APRIL 17 AND 24, 2013

             Printed for the use of the Committee on Armed Services
    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
          2014 AND THE FUTURE YEARS DEFENSE PROGRAM--Part 6  PERSONNEL

                                                      S. Hrg. 113-108 Pt. 6

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                   2014 AND THE FUTURE YEARS DEFENSE PROGRAM

    =======================================================================

                                    HEARINGS

                                   before the

                          COMMITTEE ON ARMED SERVICES
                              UNITED STATES SENATE

                        ONE HUNDRED THIRTEENTH CONGRESS

                                 FIRST SESSION

                                       ON

                                    S. 1197

         TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2014 FOR MILITARY
    ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND
       FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE
       MILITARY PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR, AND FOR OTHER
                                    PURPOSES

                                   __________

                                     PART 6

                                   PERSONNEL

                                   __________

                             APRIL 17 AND 24, 2013

                                   __________

             Printed for the use of the Committee on Armed Services

            Available via the World Wide Web: http://www.fdsys.gov/

                      U.S. GOVERNMENT PRINTING OFFICE
    85-631                    WASHINGTON : 2014
    -----------------------------------------------------------------------
    For sale by the Superintendent of Documents, U.S. Government Printing Office,
    http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Printing Office. Phone 202�09512�091800, or 866�09512�091800 (toll-free). E-mail, gpo@custhelp.com.

                          COMMITTEE ON ARMED SERVICES

                         CARL LEVIN, Michigan, Chairman

    JACK REED, Rhode Island              JAMES M. INHOFE, Oklahoma
    BILL NELSON, Florida                 JOHN McCAIN, Arizona
    CLAIRE McCASKILL, Missouri           JEFF SESSIONS, Alabama
    MARK UDALL, Colorado                 SAXBY CHAMBLISS, Georgia
    KAY R. HAGAN, North Carolina         ROGER F. WICKER, Mississippi
    JOE MANCHIN III, West Virginia       KELLY AYOTTE, New Hampshire
    JEANNE SHAHEEN, New Hampshire        DEB FISCHER, Nebraska
    KIRSTEN E. GILLIBRAND, New York      LINDSEY GRAHAM, South Carolina
    RICHARD BLUMENTHAL, Connecticut      DAVID VITTER, Louisiana
    JOE DONNELLY, Indiana                ROY BLUNT, Missouri
    MAZIE K. HIRONO, Hawaii              MIKE LEE, Utah
    TIM KAINE, Virginia                  TED CRUZ, Texas
    ANGUS KING, Maine

                        Peter K. Levine, Staff Director

                    John A. Bonsell, Minority Staff Director

                                     ______

                           Subcommittee on Personnel

                   KIRSTEN E. GILLIBRAND, New York, Chairman

    KAY R. HAGAN, North Carolina         LINDSEY GRAHAM, South Carolina
    RICHARD BLUMENTHAL, Connecticut      SAXBY CHAMBLISS, Georgia
    MAZIE K. HIRONO, Hawaii              KELLY AYOTTE, New Hampshire
    TIM KAINE, Virginia                  ROY BLUNT, Missouri
    ANGUS KING, Maine                    MIKE LEE, Utah

                                      (ii)
    ?

                                C O N T E N T S

                                  ----------

                        CHRONOLOGICAL LIST OF WITNESSES
            Active, Guard, Reserve, and Civilian Personnel Programs
                                 april 17, 2013

                                                                       Page

    Wright, Hon. Jessica L., Acting Under Secretary of Defense,
      Personnel and Readiness........................................     4
    Woodson, Hon. Jonathan, M.D., Assistant Secretary of Defense,
      Health Affairs, and Director of TRICARE Management Activity....     6
    Vollrath, Hon. Frederick E., Acting Assistant Secretary of
      Defense, Readiness and Force Management........................     7
    Wightman, Hon. Richard O., Acting Assistant Secretary of Defense,
      Reserve Affairs................................................     8
    Strobridge, Col. Steven P., USAF, Retired, Director of Government
      Relations, Military Officers Association of America............    39
    Moakler, Ms. Kathleen B., Government Relations Director, National
      Military Family Association....................................    71
    Barnes, Master Chief Joseph L., USN, Retired, National Executive
      Director, Fleet Reserve Association............................    73
    Hanson, CAPT Marshall, USN, Retired, Director, Legislative and
      Military Policy, Reserve Officers Association..................    82

     Continuation of Testimony on the Active, Guard, Reserve, and Civilian
                               Personnel Programs
                                 april 24, 2013

    Lamont, Hon. Thomas R., Assistant Secretary of the Army for
      Manpower and Reserve Affairs...................................   120
    Garcia, Hon. Juan M., III, Assistant Secretary of the Navy for
      Manpower and Reserve Affairs...................................   129
    Ginsberg, Hon. Daniel B., Assistant Secretary of the Air Force
      for Manpower and Reserve Affairs...............................   153

                                     (iii)

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                   2014 AND THE FUTURE YEARS DEFENSE PROGRAM

                                  ----------

                           WEDNESDAY, APRIL 17, 2013

                                   U.S. Senate,
                             Subcommittee on Personnel,
                                   Committee on Armed Services,
                                                        Washington, DC.

            ACTIVE, GUARD, RESERVE, AND CIVILIAN PERSONNEL PROGRAMS

        The subcommittee met, pursuant to notice, at 2:00 p.m. in
    room SR-232A, Russell Senate Office Building, Senator Kirsten
    Gillibrand (chairman of the subcommittee) presiding.
        Committee members present: Senators Gillibrand, Donnelly,
    Kaine, King, Ayotte, and Graham.
        Majority staff members present: Jonathan D. Clark, counsel;
    Gabriella E. Fahrer, counsel; and Gerald J. Leeling, general
    counsel.
        Minority staff members present: Steven M. Barney, minority
    counsel; and Allen M. Edwards, professional staff member.
        Staff assistant present: Jennifer R. Knowles.
        Committee members' assistants present: Elana Broitman and
    Kathryn Parker, assistants to Senator Gillibrand; Marta
    McLellan Ross, assistant to Senator Donnelly; Karen Courington,
    assistant to Senator Kaine; Steve Smith, assistant to Senator
    King; Brad Bowman, assistant to Senator Ayotte; and Craig
    Abele, assistant to Senator Graham.

      OPENING STATEMENT OF SENATOR KIRSTEN E. GILLIBRAND, CHAIRMAN

        Senator Gillibrand. Good afternoon, everyone. The
    subcommittee meets today to receive testimony from the
    Department of Defense (DOD) on the Active, Guard, Reserve, and
    civilian personnel programs contained in the administration's
    National Defense Authorization Request for Fiscal Year 2014,
    and the Future Years Defense Program.
        Today we will have two panels. The first panel consists of
    senior DOD leaders with whom we will discuss not only DOD
    personnel policy issues, but also specific budget items
    pertinent to our subcommittee's oversight responsibilities. Our
    witnesses are the Honorable Jessica Wright, Acting Under
    Secretary of Defense for Personnel and Readiness, the Honorable
    Jonathan Woodson, Assistant Secretary of Defense for Health
    Affairs and Director of the TRICARE Management Activity, Mr.
    Frederick Vollrath, the Acting Assistant Secretary of Defense
    for Readiness and Force Management, and Mr. Richard Wightman,
    Acting Assistant Secretary of Defense for Reserve Affairs.
        The second panel will consist of representatives from
    groups of Active and Reserve component servicemembers,
    retirees, and their families. I will introduce them after the
    first panel concludes.
        As this is my first budget related hearing as chairman of
    this subcommittee, I want to begin by recognizing the hard work
    the subcommittee has done over the past decade. While we have
    more work to do, the committee has significantly improved the
    pay and benefits of servicemembers, enabling the Services to
    recruit and retain the very best, and maintain the highest
    caliber force, even during a decade of persistent armed
    conflict.
        This subcommittee has supported numerous enhancements to
    the TRICARE benefit over the last decade as it has supported
    enhancements to pay, critical family programs, transition
    assistance programs, education benefits, morale and welfare
    programs, mental health counseling programs, and survivor
    benefits, all to ensure continued viability of the All-
    Volunteer Force during a decade of war.
        The military health system delivers world class care to
    over 9.5 million beneficiaries, Active Duty members, Reserve
    members, retirees, and dependents, and has achieved
    unprecedented rates of survival from combat wounds. While we
    must continue to look at ways to expand TRICARE to cover autism
    treatment, on the whole TRICARE is an extraordinary program.
        It is clear DOD faces significant budgetary and
    programmatic pressures. For the remainder of the fiscal year,
    DOD will operate under the sequestration imposed by the Budget
    Control Act (BCA), and, as a result, DOD will have to take
    extraordinary measures to deal with the across-the-board
    programmatic cuts of nearly 8 percent. The budget submitted by
    DOD for fiscal year 2014 does not account for any sequestration
    of funding in the fiscal year, which, if it remains in effect,
    would reduce DOD's budget by yet another $52 billion.
        Because of the current budget environment, the President's
    budget request reflects some difficult choices that this
    subcommittee will have to carefully examine as we begin
    consideration of the annual defense bill. The budget requests a
    1 percent across-the-board pay raise for military and civilian
    personnel. This is regrettably below the annual rise of the
    employment cost index (ECI) of 1.8 percent. This hearing is our
    opportunity to hear from both our military and advocacy group
    panels about the impact of this pay raise level, as well as the
    housing and subsistence allowance increase of about 4 percent.
    The Department's budget request assumes savings of $540 million
    based on holding pay raises to just the 1 percent.
        The Department also proposes to establish or raise certain
    fees related to health care coverage for military dependents
    and retirees. Congress has not supported these proposals in the
    past years, and I personally remain very skeptical about
    increasing costs for military members and veterans. The
    Department's budget request has assumed nearly $1 billion in
    savings in fiscal year 2014 as a result of these health care
    proposals.
        There is no greater responsibility for Congress and
    military leaders than to support our brave servicemembers,
    their families, and the civilian employees who are vital
    components of our military team. While the President has
    protected the military personnel pay accounts from
    sequestration, he could not do the same for DOD civilian
    workers, which gives me great concern. The furloughs that are
    planned for the rest of the fiscal year, while perhaps
    necessary, breaks our commitment to our civilian workforce.
        Our defense civilians include an important support network
    as well as many of the experts in critical fields, such as
    cyber security. Even as DOD works to comply with the
    congressional mandate to reduce the size of the civilian
    workforce, civilians are in the midst of yet another year of
    pay freeze. DOD and Service leaders have expressed their
    concern not just about the short-term negative effects these
    furloughs will have on critical services for servicemembers and
    their families, but of the long-term effects, including damage
    to morale and the prospect of our most talented young people
    may no longer view national service as a viable career option.
    I share their concern.
        A highlight in the last year of personnel issues, however,
    is the expansion of personal benefits to same sex partners: the
    opportunity to shop at commissaries, take emergency leave, and
    participate in family-centered programs. I know that the
    Department is waiting to implement additional benefits, such as
    health care and housing, until the Supreme Court decides the
    constitutionality of the Defense of Marriage Act.
        I urge you all to be as forward leaning as possible in
    ensuring that all of our military benefits are as inclusive as
    possible.
        Lastly, I want to say something about sexual violence in
    the military, an issue which I remain deeply committed to
    solving. I held my first hearing as chairman of the
    subcommittee last month on this topic. As I said then, a system
    where less than 1 out of 10 reported perpetrators are held
    accountable for their alleged crimes is not a system that is
    working. That is of just the reported crimes. The Defense
    Department itself puts the real number closer to 19,000. A
    system where in reality fewer than two out of 100 alleged
    perpetrators are faced with any trial at all is clearly
    inadequate and unacceptable.
        This committee and DOD took some first steps on this issue
    as part of last year's National Defense Authorization Act
    (NDAA) that President Obama signed into law, including ensuring
    that all convicted sex offenders in the military are processed
    for discharge or dismissal from the Armed Forces, regardless of
    which branch they serve in, and reserving case disposition
    authority for only high ranking officers in sexual assault
    cases.
        Secretary Hagel has made an important announcement by
    proposing changes to Article 60 of the Uniform Code of Military
    Justice so that courts martial cannot be overturned by the
    commanding officer. This is a good step forward, and I commend
    the Secretary for honoring the commitment he made to me by
    taking this issue head on. But it is not enough, and Congress
    must act to address this issue. I look forward to continuing to
    work with my colleagues on the legislation to hold those who
    commit these violent crimes accountable.
        I look forward to hearing your testimony about other
    important personnel programs and the overall morale and health
    of our military. As always, I encourage you to express your
    views candidly and tell us what is working well and to raise
    any concerns and issues you may want to bring to the
    subcommittee's attention. Let us know how we can best assist
    our servicemembers and their families to ensure our military
    remains steadfast and strong.
        It is now my privilege and honor to give the mic to Senator
    Graham. Thank you.

                  STATEMENT OF SENATOR LINDSEY GRAHAM

        Senator Graham. Thank you, Madam Chairman. I appreciate it.
        I am very interested in TRICARE. We have had discussions in
    my office and this room, all over the building for years about
    what we can do in a rational, logical way to deal with the
    growth in TRICARE costs to the government. In 2001, it was $19
    billion. I am told in fiscal year 2014, it is $49.4 billion.
        To the beneficiary community, we certainly want to listen
    to your concerns about how to make the program more efficient.
    But I am looking for sustainability. I am looking for a
    generous benefit that is sustainable, because if it is not
    sustainable, it is a false promise. We cannot get ourselves in
    a situation where we are dealing with retiree health care and a
    shrinking military budget, and pit it against modernization,
    weapons, and Active Duty needs. There has to be some way to
    make this program more sustainable, and ask of some of us, like
    myself who will be retired in a couple of years, to have a
    gradual premium increase. I am certainly willing to do that. I
    just want to make sure that what we are asking of the retired
    community is rationale, is logical, affordable. So that is a
    big deal for me.
        As to the pay increases, I wish it was more. I wish it was
    the 1.8 percent. But once we get sequestration behind us,
    replacing this $1.2 trillion cut where half of it falls on the
    military over the next decade with a bigger deal, which I think
    we can do--at least I hope we can do--that will free up some
    money for discretionary spending.
        To all the witnesses, thank you. To the organizations who
    support men and women in uniform, the retired force, I look
    forward to hearing from you.
        I have to go to the floor at 2:20 p.m., but I shall return.
        Thank you, Madam Chairman.
        Senator Gillibrand. Thank you, Senator Graham.
        You are each now invited to give your opening statement.
        Secretary Wright.

    STATEMENT OF HON. JESSICA L. WRIGHT, ACTING UNDER SECRETARY OF
                    DEFENSE, PERSONNEL AND READINESS

        Ms. Wright. Chairman Gillibrand, Senator Graham,
    distinguished members of the subcommittee, I appreciate the
    opportunity to appear before you to discuss personnel and
    readiness programs in support of the President's fiscal year
    2014 budget request.
        You have heard from Secretary Hagel that the fiscal year
    2014 budget is based on the defense strategic guidance, a
    comprehensive review of military missions, capabilities,
    security rules around the world. It is also a proposal made in
    face of extraordinary fiscal budget uncertainty caused by
    sequestration and the BCA of 2011.
        In fiscal year 2014, the DOD budget, $526.6 billion,
    includes $137.1 billion for our military personnel, as well as
    $49.4 billion for military healthcare, adding up to
    approximately a third of the base budget's request. As
    Secretary Hagel stated, our people are doing extraordinary work
    and making great sacrifices. Their dedication and
    professionalism are the foundation of our military strength.
    Therefore, it is our job to make sure that we take care of
    them.
        We are here today to discuss how the fiscal year 2014
    budget and plan will affect the Total Force, the Department's
    greatest asset. The Department's Total Force, Active, Reserve,
    National Guard members, government civilians, and contract
    service representatives, a carefully coordinated approach
    balances operational needs, and satisfies mission requirements,
    and recognizes fiscal constraints. After 11 years of intensive
    operations, our warriors and civilians are experienced and more
    proficient than ever to execute current operational missions
    and respond to emergent needs throughout the globe. We must
    build on the most appropriate total force by actively
    recruiting and retaining the right people for the mission with
    the appropriate level of compensation and benefits. Building
    and sustaining the right balance also requires constant
    vigilance of readiness.
        Therefore, we want to thank Congress for the legislative
    authorities in the NDAA for Fiscal Year 2013, which provides
    flexibility to affect required drawdowns. These authorities
    allow the Department to avoid the loss of critical expertise
    and provide military Services the tools necessary to manage
    their force with the least impact on readiness.
        Next, our mission to support servicemembers and their
    families by providing a network of services and programs which
    promote readiness and quality of life. This means the
    Department must keep pace with our servicemembers by doing all
    it can to protect the men and women from harm. This includes
    preventing and responding to sexual assault, working to lower
    the risk of suicides, and providing a reliable network of legal
    and health services in the time of need.
        Finally, our responsibility continues as our men and women
    prepare to transition into civilian life and become a veteran.
    A new generation of servicemembers are coming home, and we must
    live up to our commitment to them because of their service and
    sacrifice. Whether it is on the battlefield, at home, or with
    their families, or after they have faithfully concluded their
    military service, we are committed to preparing servicemembers
    for whatever challenges they may face from warrior to veteran.
    They really deserve no less.
        I will turn to Dr. Woodson, Mr. Vollrath, Mr. Wightman, to
    discuss their particular policy priorities under their purview.
        Dr. Woodson.

     STATEMENT OF HON. JONATHAN WOODSON, M.D., ASSISTANT SECRETARY
    OF DEFENSE, HEALTH AFFAIRS, AND DIRECTOR OF TRICARE MANAGEMENT
                                ACTIVITY

        Dr. Woodson. Chairman Gillibrand, Senator Graham, and
    members of the subcommittee, thank you for the opportunity to
    present the President's budget request for military medical
    programs for fiscal year 2014, and for the distinct honor of
    representing the men and women of the finest military health
    care system in the world.
        Over the last 11 years, men and women serving in the
    military health system have performed with great skill and
    courage. They continue to help advance military and American
    medicine as witnessed by many comments in the tragic aftermath
    of the Boston bombings. They continue to serve courageously and
    to simultaneously provide a service that engages in combat and
    medical operations, supports a comprehensive peace time health
    care system, and respond to humanitarian crises around the
    world. It is unique among all militaries on the globe.
        The medical readiness of men and women in our Armed Forces
    remain at the center of our mission and strategy. We are using
    every tool at our disposal to assess our servicemembers' health
    before, during, and following deployment from combat theaters,
    and we are committed to improving the health and wellness of
    all who receive care in our system.
        Concurrent with our mission of maintaining a medically
    ready force is our mission of maintaining a ready medical
    force, a force of medical professionals who are well trained,
    engaged in ongoing active clinical practice, and supported by
    military hospitals and clinics that are operating at optimal
    capacity. To sustain this active practice also requires
    beneficiaries to choose the military medicine system as their
    primary and preferred source of care.
        As we maintain our readiness, we must also responsibly
    manage the budget we are given. In 2013, the Department and the
    Federal Government have encountered headwinds. Budget
    sequestration continues to present significant challenges to
    our system and would create potentially catastrophic effects if
    this approach to budgeting were sustained through 2014.
        Still, we must be careful stewards of the taxpayers'
    dollars, and in this effort, the Department has proposed both
    internal and external reforms of military medicine.
        Internally, we are undergoing a comprehensive set of
    reforms of how we are organized as a military health system.
    The overarching goal of this effort is to create an even more
    integrated system of care, better coordinating delivery of
    services in Army, Navy, and Air Force medical facilities, along
    with care provided by the Veterans Administration (VA) and the
    private sector medical community. Improved integration combined
    with more streamlined decision making will result in better
    health care, better care overall, and cost deficiencies.
        We are in a collaborative and effective pathway forward to
    eliminate redundancies within the military health system,
    improved business practices, and clinical outcomes, and
    effectively managed care for servicemembers and their families.
    We have a strong, committed leadership team that includes
    senior civilian and military leadership of all Services and the
    Joint Chiefs of Staff to ensure that we achieve these goals.
        Externally, the administration is once again asking
    military retirees to pay more than they do today for health
    benefits that they have rightly earned and that they now
    receive, but proportionately less than when the health benefit
    was initiated. In an era characterized by more limited
    resources, we must make decisions and determine tradeoffs among
    a series of important mission requirements--military
    operations, training, research, and benefits--particularly the
    enormous and profound responsibility for lifelong care for our
    veterans who seek services and benefits for conditions related
    to their military service.
        Our proposals will slow the growth in retiree health
    benefit costs to the Department over time, while keeping in
    place the comprehensive medical benefits that retirees receive,
    and ensuring that this program is there for future generations.
        The proposals will not affect most Active Duty family
    members. Additionally, our proposals exempt the most vulnerable
    within our retired population from fee increases to include
    families of servicemembers who died on Active Duty and families
    of servicemembers who are medically retired.
        Many other challenges remain ahead for the military and
    medical system. We are working to mitigate the harmful effects
    of sequestration involving civilian personnel and limit cuts in
    our vital military medical research programs. We will continue
    to identify approaches that curb unnecessary utilization of
    health care services, and we are increasing our emphasis on
    wellness, and we are deepening our collaboration with the VA.
        I want to close by thanking Congress, and particularly this
    subcommittee, for its long support of our programs and its
    endorsement of our establishment of the Defense Health Agency
    to improve administration of the military health system.
        Thank you for your time today, and I look forward to your
    questions.

       STATEMENT OF HON. FREDERICK E. VOLLRATH, ACTING ASSISTANT
          SECRETARY OF DEFENSE, READINESS AND FORCE MANAGEMENT

        Mr. Vollrath. Chairman Gillibrand, members of the
    subcommittee, thank you for the opportunity to join you today.
        As we transition from a decade of war, the Department is
    challenged with managing a total force and maintaining our
    readiness and capability under significantly reduced funding.
    Sequester will have a great impact on the Department and will
    add new challenges in meeting national security needs. But it
    will also reinforce the need to take a hard look at our
    programs and our priorities in order to effectively and
    efficiently implement necessary reforms in order to maintain a
    ready force.
        A tangible aspect of readiness remains our ability to
    recruit, train, and retain an All-Volunteer Force. We need to
    carefully manage scarce resources while supporting military
    compensation and benefits reform without breaking faith and
    while sustaining the All-Volunteer Force. As our combat
    operations are lessened, there remains a need for sustainment
    of family programs and wellness, because the military
    experience remains one of selfless service and sacrifice, of
    long training exercises and family separations.
        There will always be stress on the force and our families.
    Therefore, we must continue to monitor these programs carefully
    and strive to sustain those that remain critically important as
    we experience funding reductions in the years to come. For
    example, the Department's suicide prevention efforts will
    continue to be a top priority as we implement the provisions of
    the NDAA for Fiscal Years 2012 and 2013, as well as the
    President's executive order on this matter. Additionally, as we
    draw down our forces, we will continue to improve and enhance
    our transition assistance and licensing and credentialing
    efforts to better prepare servicemembers for transition to
    their civilian lives and the civilian labor force.
        Given reduced resources and a smaller total force, we
    remain committed to recruit and train the most qualified
    candidates. Therefore, the Department remains focused on fully
    implementing the February 2013 Secretary of Defense decision to
    eliminate the 1994 policy that restricted women from being
    assigned to direct combat units, as well as open more military
    occupations to women.
        Madam Chairman, this concludes my statement. I thank you
    and the members of the subcommittee for your steadfast support
    and leadership. I am happy to answer your questions.
        Mr. Wightman.

        STATEMENT OF HON. RICHARD O. WIGHTMAN, ACTING ASSISTANT
                 SECRETARY OF DEFENSE, RESERVE AFFAIRS

        Mr. Wightman. Thank you. Chairman Gillibrand, members of
    the subcommittee, I thank you for your invitation to
    participate in this hearing. I welcome the opportunity to give
    an overview of some issues we are addressing in the Reserve
    components.
        I would also like to thank the committee and your staff for
    all that you have done for the men and women in uniform,
    especially for those who it is my responsibility to serve, the
    1.1 million members of the Reserve and National Guard and their
    families. Today I can report to you that we have over 55,000
    mobilized members of the National Guard and Reserve supporting
    operations globally.
        Current utilization and a combination of factors change the
    way we view future utilization of our Reserve component and
    constitute a new normal. Although major force commitments to
    Afghanistan are being reduced, there is a pivot of our national
    defense strategy towards the Asia-Pacific region. A volatile
    international security environment still persists, and a
    constrained defense budget for the foreseeable future will
    place additional burdens on manning, training, equipping,
    recruiting, and retention of the total force in fiscal year
    2014 and beyond.
        Therefore, continued use of the Reserve components as a
    part of the operational total force makes sound business sense.
    The Reserve component as part of DOD's total force provides the
    ability to preserve capability and capacity and reduce costs to
    manageable risk.
        Our National Guard and Reserve is undoubtedly the most
    combat seasoned Reserve component force ever, and the
    Department is seeking ways to leverage the Reserve component to
    provide needed military capacity during current austere
    economic times. These factors necessitate use of the Reserve
    component across a broad spectrum in the future to include:
    continued routine use as a part of the operational force as we
    have over the past decade, fulfilling day-to-day operational
    missions at home and abroad, albeit on a smaller scale, and the
    use of a portion of the Reserve component in its traditional
    role as a strategic reserve.
        The new normal use of the Reserve component as part of the
    operational force is enabled by a key principle of the 2012
    Defense Strategy: emphasizing rotational presence versus
    forward station presence. This concept, combined with
    legislative changes under section 12304 Alpha and Bravo,
    enacted by Congress in the NDAA for Fiscal Year 2012,
    authorizes further use of the Reserve components.
        The first permits the use of Reserve components in response
    to disasters in the United States as we recently witnessed
    during Hurricane Sandy. The second permits access to the
    Reserve components and opens the opportunity to participate in
    peace time overseas rotational posture and deterrence missions.
    However, the Department must also continue to preserve equality
    of the All-Volunteer Force and not break faith with our men and
    women in uniform, their families, and our civilians.
        Despite these difficult economic circumstances
    necessitating budget reductions across all levels of
    government, the Department is committed to providing
    servicemembers and military families with support programs and
    resources and empower them to address the unique challenges of
    military life. With close to 1,700 events projected for this
    fiscal year, programs, such as the Yellow Ribbon Reintegration
    Program, continue to provide relevant, reliable information and
    resources to military members, their families, and designated
    representatives throughout the deployment cycle, and
    complements programs such as the Transition Assistance Program
    (TAP), by assisting servicemembers as they transition between
    their military and civilian roles.
        Programs, such as the Hero to Hire, or H2H, provides a
    comprehensive approach aimed at enhancing career readiness and
    reducing unemployment of our Reserve component members. This
    program has helped facilitate over 1,000 placements per month
    since October 2012.
        Today's citizen warriors have made a conscious decision to
    serve since September 11 with full expectation that their
    decisions might mean periodic recalls to Active Duty under
    arduous and hazardous conditions. They will continue to play a
    vital role as we move beyond the past decade of war, and the
    Department shapes the force to implement defense strategy and
    respond to the challenge of a new era.
        Thank you again for the opportunity to testify, and I look
    forward to your questions.
        [The joint prepared statement of Ms. Wright, Dr. Woodson,
    Mr. Vollrath, and Mr. Wightman follows:]

       Joint Prepared Statement by Hon. Jessica L. Wright, Hon. Jonathan
      Woodson, Mr. Frederick E. Vollrath, and Mr. Richard O. Wightman, Jr.

                                  INTRODUCTION

        Chairman Gillibrand, Senator Graham, and distinguished members of
    the subcommittee, I appreciate the opportunity to appear before you to
    discuss Personnel and Readiness (P&R) programs in support of the
    President's fiscal year 2014 budget request. The President's plan
    implements and deepens the commitment to the new strategy, which meets
    the Department of Defense (DOD) needs in a complex security
    environment. The fiscal year 2014 DOD budget request of $526.6 billion
    includes $137.1 billion for our military personnel as well as $49.4
    billion for military medical care, which add up to approximately a
    third of the base budget request.
        As you have heard from Secretary Hale today, the fiscal year 2014
    budget is based on the Defense Strategic Guidance announced on January
    5, 2012, ``Sustaining U.S. Global Leadership: Priorities for 21st
    Century Defense,'' a comprehensive review of American military
    missions, capabilities, and security roles around the world. It is also
    a proposal made in the face of extraordinary fiscal and budget
    uncertainty. The March 1 sequestration order called for a nearly $41
    billion reduction in DOD's fiscal year 2013 budget in the middle of the
    fiscal year, and we face substantial additional cuts (roughly $52
    billion per year in fiscal year 2014 and beyond) that could force major
    changes to the fiscal year 2014 President's budget. Sequestration in
    fiscal year 2013 would also have major effects in fiscal year 2014.
        Given these challenges, we are here today to describe how we can
    sustain the All-Volunteer Force (AVF) for generations to come--a force
    that has a proven record of unprecedented success in operations around
    the world. Thank you for your continued support of our Active, Reserve
    component military members, their families, and our government
    civilians who serve with distinction every day.

                 BUILD, SUPPORT, AND TRANSITION THE TOTAL FORCE

        The Department's Total Force of Active and Reserve military,
    government civilians, and contracted services represents a carefully
    coordinated approach that balances operational needs, satisfies mission
    requirements, and recognizes fiscal constraints. After over 10 years of
    intensive operations, our servicemembers and civilians are more
    experienced and proficient than ever to execute current operational
    missions and respond to emergent needs throughout the globe. Our people
    are the Department's greatest assets and we will continue to be the
    most powerful military force in the world by building and sustaining
    this extraordinary Total Force.
        We must build the most appropriate Total Force by actively
    recruiting and retaining the best people for the mission with the
    appropriate level of compensation and benefits. Building and sustaining
    the right balance also requires constant vigilance of readiness--to
    ensure that our servicemembers are adequately trained and equipped to
    face whatever battle they face. Therefore, we want to thank Congress
    for the legislative authorities in the National Defense Authorization
    Act (NDAA) for Fiscal Year 2013 which provides flexibilities to affect
    required drawdowns. These authorities allow the Department to avoid the
    loss of critical expertise and provide the Military Services with the
    necessary tools to manage their force structure with the least impact
    to our readiness.
        Next, it is our mission to support the servicemembers and their
    families by providing a network of services and programs which promote
    readiness and quality of life. This system of support extends from
    military medical care to family readiness services and includes support
    for National Guard and Reserve members and their families. Support also
    means that the Department keeps faith with our servicemembers by doing
    all it can to prevent and protect men and women from harm. This
    includes preventing and responding to sexual assault, working to lower
    the risks of suicides, and providing a reliable network of legal and
    health care services in a time of need.
        Finally, our responsibility continues as our men and women prepare
    to transition to civilian life or veteran status. A new generation of
    servicemembers is coming home, and we made a lifetime commitment to
    them for their service and sacrifice. Thus, with Congressional support
    and strong commitment by the President, we have implemented the
    Veterans Opportunity to Work (VOW) to Hire Heroes Act of 2011, which
    provides the necessarily tools for servicemembers to make a successful
    transition out of the military to the next phase of their careers and
    lives.
        The P&R portfolio of policies and programs is extensive and we will
    attempt to highlight our recent accomplishments and future challenges
    in this statement. The first section provides updates to issues of
    significant congressional concern. It will be followed by overviews of
    the three major policy offices under P&R. Although this lengthy
    statement does not cover all our programs, it is a reflection of our
    efforts to better build, support and transition our servicemembers.

    Recent Military Personnel Policy Changes
        Women in Service
        Over the last decade of war, our military women servicemembers have
    put their lives on the line to defend the country with courage,
    patriotism and skill. It is in the interest of our national security to
    have the best and brightest person serving in any position based upon
    their abilities, qualifications and performance. This is consistent
    with our values and relevant to military readiness. Service should be
    based on ability not gender.
        The 1994 DOD policy prohibited women from being assigned to
    ``direct ground combat'' units below the brigade level and permitted
    the military departments to restrict assignment of women based on
    privacy and berthing, physical requirements, special operations and
    long-range reconnaissance, and colocation with a direct combat unit
    (e.g. a medical unit with a direct combat unit). In February 2013,
    former Secretary Panetta completely eliminated the 1994 policy at the
    unanimous recommendation of the Joint Chiefs of Staff. Service
    implementation plans are due to the Secretary of Defense by May 15,
    2013. The policy will be fully implemented by January 1, 2016.
        Same Sex Partner Benefits
        Following the repeal of Don't Ask, Don't Tell (DADT), DOD engaged
    in a review of the possibility of extending eligibility for benefits,
    when legally permitted, to same-sex domestic partners of military
    members. The benefits review group examined benefits available to
    servicemembers and their families and divided these benefits into three
    categories: (1) currently available member-designated benefits; (2)
    benefits not available based on current law; and (3) benefits that
    could be extended, under current law, to same-sex domestic partners and
    their children. The initial review extended 18 ``member-designated''
    benefits. The Department later identified 24 additional benefits to
    extend to same-sex domestic partners by August 31, 2013 but no later
    than October 1, 2013.
        The cost of extending benefits to same-sex domestic partners of
    military members is negligible. Many of the benefits selected for
    extension are programs designed to accommodate fluctuations in need and
    population, such as commissary and exchange privileges and MWR
    programs. Other benefits, such as dual military couple assignment
    opportunities and Emergency Leave, are provided to the servicemember
    regardless of relationship status therefore there is no additional cost
    anticipated.
        Distinguished Warfare Medal
        Secretary Panetta established the Distinguished Warfare Medal (DWM)
    on February 13, 2013, including its order of precedence directly below
    the Distinguished Flying Cross, to recognize the achievements of a
    small number of service men and women who have an especially direct and
    immediate impact on combat operations through the use of remotely
    piloted aircraft and cyber operations. Congress, veterans'
    organizations, and the public have expressed strong opposition to the
    DWM's precedence-level being above the Bronze Star and Purple Heart.
    After consulting with the Service Secretaries, the Chairman, and the
    other members of the Joint Chiefs of Staff, Secretary Hagel directed a
    review of the DWM. While the review confirmed the need to ensure such
    recognition, it found that misconceptions regarding the precedence of
    the award were distracting from its original purpose.
        On April 15, the Secretary announced that the Joint Chiefs of
    Staff, with the concurrence of the Service Secretaries, recommended the
    creation of a new distinguishing device that can be affixed to existing
    medals to recognize such extraordinary actions of this small number of
    men and women. The Joint Chiefs also recommend further consultation
    with the Service Secretaries, the service senior enlisted leaders, and
    veterans' organizations regarding the nature of the device as well as
    clear definition of the eligibility criteria for the award. The
    Secretary directed that within 90 days final award criteria and the
    other specifics of the distinguishing device be developed and presented
    for final approval.

    Sexual Assault Prevention and Response
        Sexual assault is a crime and has no place in the U.S. military. It
    is a violation of everything that we stand for and it is an affront to
    the values we defend. Our DOD-wide mission is to prevent and respond to
    this crime in order to enable military readiness and to reduce--with a
    goal to eliminate--sexual assault from the military. The Secretary of
    Defense is committed to this mission and to eradicating this crime from
    our Armed Forces. Combating a crime that stays mostly hidden from view
    despite the terrible toll it takes on the victims requires a
    coordinated, Department-wide approach. Our strategy is to apply
    simultaneous effort in five areas that we call lines of effort:
    Prevention, Investigation, Accountability, Advocacy, and Assessment.
        As you are aware, on April 8, 2013, the Secretary of Defense
    announced that after reviewing the assessment of Article 60 of the
    Uniform Code of Military Justice by military justice experts, the judge
    advocates generals, the Service Secretaries and Chiefs, as well as the
    recommendation from the Joint Chiefs of Staff, he is directing a
    legislative proposal to amend Article 60 to be submitted to Congress.
    First, the proposal would eliminate the discretion of the convening
    authority to change the findings of a court-martial except for certain
    minor offenses that would not, in and of themselves, ordinarily warrant
    trial by court martial. While convening authorities would no longer
    have the ability to dismiss charges for serious offenses like sexual
    assault, defendants would continue to have access to a robust system of
    appeals rights. Second, the proposal would require the convening
    authority to explain in writing any modification made to court-martial
    sentences, as well as any changes to findings involving minor offenses.
    These changes will apply to all court-martials, not solely to court-
    martials for sexual assault offenses. The convening authority's post-
    trial discretion with regard to sentencing will be preserved. The
    Service Secretaries, the Joint Chief of Staff, and the Service Judge
    Advocates General all support these changes.
        The Department has also initiated and/or implemented a variety of
    initiatives to fundamentally change the way the Department confronts
    sexual assault. For example, we have issued policy, consistent with the
    NDAA for Fiscal Year 2012 and Fiscal Year 2013, establishing an
    increased document retention time of 50 years for sexual assault
    reports, which includes the sexual assault forensic exam form, and the
    victim's Reporting Preference Statement. The Department also issued new
    policy that provides victims of sexual assault who file an Unrestricted
    Report the option to request a transfer from their current assignment
    or to a different location within their assigned installation. This
    expedited transfer policy requires that victims receive a response from
    their commander within 72 hours of the request. If denied, the victim
    may appeal to the first general or flag officer in their chain, who
    also has 72 hours to provide a response. From policy implementation
    through December 2012, the Services approved 334 of 336 requests for
    expedited transfer.
        The Department has aggressively pursued several avenues of change.
    In April 2012, the Secretary of Defense asked for the support of
    Congress in enacting the Leadership, Education, Accountability and
    Discipline (LEAD) Act to further codify into law specific reforms to
    advance sexual assault prevention and response. These six provisions
    were included in the NDAA for Fiscal Year 2013. The new law includes
    the following provisions:

             Establish a Special Victims Capability within each of
            the Services;
             Require all servicemembers to receive an explanation
            of all Sexual Assault Prevention and Response (SAPR) policies
            within 14 days of entrance into Active service;
             Require records of outcome of disciplinary and
            administrative proceedings related to sexual assault be
            centrally located and retained for a period of not less than 20
            years;
             Require commanders to conduct an Organizational
            Climate assessment within 120 days of assuming command and an
            annual assessment thereafter;
             Allow Reserve and National Guard personnel who have
            alleged to have been sexually assaulted while on Active Duty to
            request to remain on Active Duty or return to Active Duty until
            a Line of Duty determination is made; and
             Mandate wider dissemination of SAPR resources.

        Other initiatives the Department has carried out include:

             Elevated the initial disposition decision for the most
            serious sexual assault offenses to ensure that these cases are
            addressed by a ``Special Court-Martial Convening Authority''
            who is in the grade of O-6 grade (an officer at the Colonel or
            Navy Captain level) or above;
             Expanded the DOD Safe Helpline, an anonymous and
            confidential crisis support service to help transitioning
            servicemembers who have experienced sexual assault;
             Implemented a DOD-wide review and assessment of all
            initial military training of enlisted personnel and
            commissioned officers following the incidents Joint Base San
            Antonio-Lackland;
             Achieved full deployment of the congressionally-
            mandated Defense Sexual Assault Incident Database (DSAID),
            enhancing our ability to collect data on sexual assault reports
            uniformly across the Department;
             Published the revised DOD-wide policy on the Sexual
            Assault Program that establishes and standardizes our
            prevention, health care, victim safety, training and response
            efforts, and clearly conveys the role of servicemembers and
            employees in sexual assault prevention and recovery.

        Underpinning our effort is the need for enduring culture change--
    requiring leaders at all levels to foster a command climate where
    sexist behaviors, sexual harassment, and sexual assault are not
    tolerated, condoned, or ignored; a climate where dignity and respect
    are core values we live by and define how we treat one another; where
    victims' reports are taken seriously, their privacy is protected, and
    they are treated with sensitivity; where bystanders are motivated to
    intervene to prevent unsafe behaviors; and a climate where offenders
    know they will be held appropriately accountable.
        We fully recognize we have a problem with sexual assault and will
    continue to confront the brutal realities until this problem is solved.
    The Department is firmly committed to this goal and that we remain
    persistent in confronting this crime through prevention, investigation,
    accountability, advocacy, and assessment so that we can reduce, with a
    goal of eliminating sexual assault from the military and the Service
    Academies.

    Suicide Prevention
        Suicides among servicemembers have risen from 160 in 2001 to 350 in
    2012. While suicides leveled in 2010 at 299 and 2011 at 302, there were
    a record number in 2012 (350). Unfortunately, this trend mirrors the
    rise in national suicide rates. While the stressors associated with 10
    years of war play a role, more than half of those who died by suicide
    had no history of deployment and few were involved in direct combat. In
    2011, the Department of Defense (DOD) created the Defense Suicide
    Prevention Office (DSPO), which leads efforts to issue policies,
    evaluate programs, enhance training and access to care, reduce stigma,
    address lethal means, standardize death investigations and increase
    data fidelity.
        DOD is also working with the Department of Veterans Affairs (VA) on
    a 12-month national suicide prevention campaign that encourages
    servicemembers, veterans, and their families to seek help for their
    behavioral health issues through the Veteran/Military Crisis Line. This
    campaign, which began September 1, 2012, is part of the implementation
    of the President's August 2012 Executive order aimed at improving
    access to mental health services for veterans, servicemembers, and
    their families.
        The Department is responding to section 533 of the NDAA for Fiscal
    Year 2012, which calls for enhanced suicide prevention efforts with DOD
    partners; and implementing several policy and program requirements
    mandated by the NDAA for Fiscal Year 2013. These requirements will be
    met upon implementation of the first DOD-wide comprehensive suicide
    prevention policy, currently projected to be completed by October 2013.
    The policy will include: continuity to quality behavioral healthcare
    during times of transition; sustainable Service-wide suicide prevention
    education and training program; methods for standardized mortality data
    collection; and requirement for each Service to staff, fund and
    maintain a Department level Suicide Prevention Program Manager.

    Tuition Assistance
        The DOD off-duty, voluntary education program, Tuition Assistance
    (TA), helped approximately 286,000 servicemembers take over 870,000
    courses last fiscal year which resulted in over 48,000 college degrees.
    This program enables the professional and personal development of our
    servicemembers and also facilitates their transition to the civilian
    workforce.
        As you are aware, last month, several of the Services suspended new
    TA agreements as a cost-saving measure due to sequestration. Given the
    enactment of the Department of Defense Appropriations Act, 2013 (P.L.
    113-6), we are fully funding TA for the remainder of fiscal year 2013,
    without any sequestrations-related reduction.

    Transition Assistance Program
        In compliance with the VOW to Hire Heroes Act of 2011, and at the
    direction of the President, the Departments of Defense, Labor and
    Veterans Affairs redesigned the Transition Assistance Program (TAP) to
    better prepare servicemembers to successfully transition to the
    civilian workforce.
        The redesigned TAP curriculum, known as the Transition Goals Plans
    Success (GPS), complies with the VOW to Hire Heroes Act that mandates
    all eligible servicemembers being discharged or released from active
    duty after serving their first 180 continuous days or more under title
    10, U.S.C., (including reservists and guardsmen) participate in Pre-
    separation Counseling, VA Benefits Briefings and the Department of
    Labor Employment Workshop. While some servicemembers may be exempted
    from attending the DOL Employment Workshop, as allowed by Congress,
    every servicemember will attend Pre-separation counseling and the
    revised VA Benefits Briefings--no exceptions.
        These first components of the redesigned TAP are implemented at all
    206 Active component installations. Additional components, including
    specialized tracks for servicemembers interested in Higher Education,
    Career Technical Training, or Entrepreneurship, will be phased in by
    October 2013. The bedrock of the redesigned TAP is that all
    servicemembers will meet Career Readiness Standards prior to
    separation.

    Military Overseas Voting
        The Department provided extensive voting assistance for the 2012
    General Election. An active, comprehensive outreach program that
    included print and online ads and email ``blasts'' to all
    servicemembers (more than 18 million emails sent during 2012 for
    primary and general elections) informed voters of their right to vote
    and the tools and resources available to them. The automated
    ``wizards'' at FVAP.gov, the Federal Voting Assistance Program's
    information-rich website, provided an intuitive, step-by-step process
    to help servicemembers, their families, and overseas citizens register
    to vote, obtain an absentee ballot, and if necessary, complete the
    Federal back-up ballot.
        FVAP proactively continues to engage with the Services to ensure
    that the Installation Voter Assistance (IVA) Offices are operational
    and available to assist servicemembers. Current IVA Office contact
    information is maintained and available at the FVAP.gov website. Over
    200 IVA offices have been established and are just one of the many
    resources that the Department and Services use to reach military voters
    and their voting age family members.
        In advance of the 2012 elections, the Department awarded grants on
    a competitive basis to States and localities to research the
    effectiveness of new electronic tools for voter registration, blank
    ballot delivery, and ballot marking. It is important to note that no
    grant award funds were used for the electronic return of a voted ballot
    in a live election. Awardees are to submit detailed, quantitative
    reports on the effectiveness of their systems over the next 5 years.
    The Department is continuing the grant program this year in preparation
    for the 2014 elections.

                         READINESS AND FORCE MANAGEMENT

        As we transition from a decade of war, the Department is challenged
    with managing a Total Force under significantly reduced funding, while
    maintaining overall operational readiness and capability. Potential
    furloughs, a current hiring freeze and reduced end strength will create
    additional challenges and reinforce the need to take a hard look at our
    programs and priorities and implement reforms and initiatives that
    achieve the ultimate goal of maintaining operational readiness during
    this period of fiscal uncertainty.
        Military compensation and our military family programs, many of
    which were created to support a war-time operational tempo (OPTEMPO),
    will be closely examined for potential reforms. Likewise, we will
    continue to ramp up our transition assistance and licensing and
    credentialing efforts to prepare servicemembers for the civilian labor
    market as we reduce military end strength.
        Although we are coming out of a decade of war and our OPTEMPO is
    lessened, there remains a need and a sustainment of family programs and
    wellness because the military experience remains one of selfless
    service and sacrifice, of long training exercises and family
    separations. There will always be stress on the force and on our
    families, therefore we must continue to monitor these programs
    carefully as we experience the funding reductions in the years to come.

    Readiness
        Our forces are postured globally conducting counterterrorism,
    stability, and deterrence operations; maintaining a stabilizing
    presence; conducting bilateral and multilateral training to enhance our
    security relationships; and providing the crisis response capabilities
    required to protect U.S. interests. The investments made in
    technologies, force protection, command and control, and Intelligence,
    Surveillance, and Reconnaissance (ISR) have helped maintain our
    military's standing as the most formidable force in the world.
        Regrettably, the impact of sequestration will likely reduce
    readiness through reductions in maintenance, operations and training,
    and indirectly through effects on the accessions and training for
    personnel and the production pipeline for equipment. This is especially
    worrisome as it may take years to recognize the shortfall, and even
    longer to mitigate or correct. Specific concerns include:

             Managing stress on the force: Over 10 years of high
            operations tempo have stressed our equipment and our people
            across the board.
             Return to full-spectrum training: While our ground
            forces are now experts in counterinsurgency, other skills have
            lagged. For example, the Army and Marine Corps are only just
            beginning to train units for unified land and amphibious
            operations. Most mid- and junior-grade members have never
            conducted these missions. We must relearn these skills without
            forgetting how to conduct counterinsurgency operations.
             Preparing for ongoing operations: While the demand for
            our ground forces will likely decline after operations in
            Afghanistan conclude, the tempo for Navy and Air Force is less
            certain. Navy deployments, for example, are likely to remain
            longer and more frequent than pre-September 11. Likewise, the
            Air Force has maintained a continuous forward presence in the
            Middle East for over 20 years and may do so for years to come.
             Resetting our equipment: DOD will need OCO funding for
            at least 2 years post Afghanistan in order to reset our
            equipment. This is a particularly serious concern for our
            ground forces.
             Budget austerity and uncertainty: The budget austerity
            and uncertainty under sequestration is complicating our efforts
            to mitigate readiness deficiencies.

        A high operational tempo over the past decade, coupled with the
    recent budget cuts magnified the risk of an imposed mismatch between
    the size of our military force and the funding required to maintain
    readiness. Over the next year, the Department will identify the
    critical readiness deficiencies and articulate risks, identify and
    implement associated mitigation options, and identify the significance
    of any unmitigated risk
        Language and Culture Training
        The President directed the Department to sustain U.S. global
    leadership as we transition from a long-term engagement in two wars
    toward a more global presence focused on the Asia-Pacific and the
    Middle East. Currently, about 10 percent of military personnel have
    tested or self-professed foreign language skills. However, Spanish
    accounts for 45 percent of the Department's foreign language capability
    which does not meet current strategic language requirements. Thus, new
    and enhanced training, as well as program and policy developments will
    expand the language, regional and cultural breadth and depth of the
    Total Force.
        The National Language Service Corps, a civilian corps of U.S.
    citizen volunteers with certified proficiency in languages important to
    U.S. security and welfare, grew from 2,407 in 2011 to over 4,000
    members in 2012 speaking more than 260 languages and provided over
    15,000 hours of support to Federal agencies. The NDAA for Fiscal Year
    2013 authorized the Secretary of Defense to transform the National
    Language Service Corps from a pilot to a permanent program and also
    enhanced the ability of Federal agencies to hire National Security
    Education Program awardees that possess strategic foreign language and
    cultural skills.

    Active Duty Personnel
        Active Duty Recruiting
        Recruiting is critical to ensuring each Service and component is
    manned with a sufficient number of qualified people able to be trained
    and carry-out the missions that are asked of them. Over the last
    several years, the Services have recruited the highest quality recruits
    in the history of the AVF.
        Generally, a slow economy makes recruiting less challenging, and
    operates to the advantage of those who are hiring, including the U.S.
    military. As we see signs of economic improvement, we must remain
    vigilant and continue to monitor impacts on our recruiting efforts.
    Despite the positive effect of the economy on recruiting, there remain
    other factors counterbalancing our ability to attract bright, young
    Americans into the Armed Forces--57 percent of influencers (e.g.
    parents and teachers) are not likely to recommend military service; a
    large and growing proportion of youth are ineligible to serve in the
    military; a higher number of youth going to college directly from high
    school; and continuing concerns about the multiple deployments and the
    high operations tempo.
        In order to continue to sustain the AVF, the Department must rely
    on a significant and consistent recruiting effort across the
    Department. The consequences of sequestration increase risk for fiscal
    year 2013 recruiting and may result in fiscal year 2014 recruiting
    falling below levels needed. There is a possibility of a significant
    reduction in our ability to screen youth for military service during
    the potential civilian personnel furlough since the Military Entrance
    Processing Stations are manned to a large extent (approximately 80
    percent) by civilian staff. The reductions to advertising and
    recruiting support will also likely be significant.
        Active Duty Retention
        During fiscal year 2012, the Active Force consistently exhibited
    strong retention numbers with Army, Navy, Air Force, and Marines
    meeting their 2012 retention goals. Since the start of fiscal year
    2013, through the fifth month of the fiscal year, the Army, Air Force,
    and Marine Corps have continued to exhibited strong retention numbers.
    The Navy has also exhibited strong retention numbers in the Mid-Career
    and Career categories, however, the Navy's achievement of 86-88 percent
    (during the first 5 months of fiscal year 2013) in the Initial category
    results from reduced accessions 4-6 years ago. The Navy's Initial
    category will continue to be monitored.
        Reserve Officers' Training Corps (ROTC)
        The Department's largest single source of commissioned officers is
    the Reserve Officers' Training Corps (ROTC). In 2012, ROTC had 21,323
    cadets and midshipmen on scholarship and commissioned 6,200 officers.
    This was accomplished while each Service also simultaneously reduced
    scholarship funding. The Services are currently working to further
    streamline their ROTC programs.
        In order to continue these successes and sustain the officer corps,
    the Department must rely on consistent recruiting and scholarship
    programs. Almost 80 percent of the Services' ROTC budget is O&M. The
    consequence of sequestration is increased risk for fiscal year 2013
    officer recruiting and scholarships programs. The reductions to
    civilian personnel, scholarships, advertising, and recruiting support
    may be significant.

    Military Compensation
        Military Compensation and Retirement Modernization Commission
        The NDAA for Fiscal Year 2013 established a Military Compensation
    and Retirement Modernization Commission, which is required to undertake
    a comprehensive review of all forms of military pay and benefits. The
    Secretary of Defense will transmit his recommendations to the
    Commission and to Congress by November 2013. Then the Commission will
    make its appropriate recommendations to the President by May 2014. We
    remain committed to ensuring any proposed changes to the mix of pay and
    benefits keep faith with those who are serving today and with those who
    have served in the past, our retirees. Changes to the military
    compensation and retirement system should be considered along with
    military operational requirements and supporting our servicemembers and
    their families.
        Military Pay Increase
        In the fiscal year 2014 budget, DOD proposed increasing military
    basic pay by 1.0 percent, 0.8 percent less than the authorized increase
    in law. The pay raise proposal was a difficult decision reached by the
    senior leaders of the Department. The adjustment will save $540 million
    in fiscal year 2014 and $3.5 billion through fiscal year 2018. Military
    compensation compares favorably with compensation for American workers.
    Therefore, a 1.0 percent military basic pay increase should not
    significantly affect recruiting and retention. The foregone portion of
    the 0.8 percent increase to the member would be as follows:

             Corporal with 4 years of service, $23.05 per month
            ($277 ann.) before taxes.
             Captain (O-3) with 6 years of service, $53.60 per
            month ($643 ann.) before taxes.

        We ask for Congress to support the administration's request of a
    1.0 percent increase to military basic pay.
        Basic Housing Allowance
        The purpose of the Basic Allowance for Housing (BAH) program is to
    provide fair and equitable housing allowances to servicemembers. The
    $20 billion annual program impacts more than 1 million servicemembers
    and their families. The 2013 BAH rates were set for every U.S. location
    based on measured housing costs in 363 military concentration areas.
    The Department conducted a comprehensive review of the size and number
    of areas surveyed to assess housing costs and set BAH rates. Area
    boundaries have been modified to reflect current housing
    concentrations. Areas which no longer have a sizeable uniformed
    presence have been removed, and areas with overlapping populations have
    been combined, improving efficiency of the data collection process.
    Data collected in 2013 in these revised housing areas will be used to
    set 2014 BAH rates.
        The Department is currently conducting a study to answer a
    congressionally-directed reporting requirement on the feasibility and
    appropriateness of paying BAH, rather than an Overseas Housing
    Allowance, in the U.S. territories. The Department is on track to
    submit its report by July 1, 2013.

    Military Family Support
        Family Advocacy Program
        Managing relationship stress within married couples, domestic
    partners and between parents and children is challenging. Military
    service, with deployment, redeployment, and separation often
    exacerbates this stress which sometimes manifests as physical
    maltreatment and neglectful behavior. To meet the needs of our
    servicemembers and their families, the Family Advocacy Program (FAP)
    supports a coordinated community response strategy, which includes
    adequate funding, trained personnel, and an oversight framework.
        Family Advocacy experts teamed with SAPRO and other DOD
    professionals in the development of a Special Victim Response
    capability to address the most serious domestic abuse and maltreatment
    incidents. Taking advantage of the expertise and research across
    government, the FAP convened a special working group in February 2013
    with the Military Services and Federal partners to develop a 5-year
    Prevention Strategic Plan that identifies risk factors and strategies
    that will help stop domestic violence and child abuse and neglect
    before it starts.
        In fiscal year 2012, we established a Multi-Functional Domestic
    Violence Data Working Group to develop a comprehensive management plan
    to track domestic violence incidents and address deficiencies in the
    Defense Incident-Based Reporting System, and other current systems, in
    response to the NDAA for Fiscal Year 2011 requirements.
        Child Care
        On December 20, 2012, then Defense Secretary Panetta ordered a
    thorough review of criminal background check and adjudication
    documentation for all DOD Child and Youth Services personnel in
    response to concerns raised at the Joint Base Myer-Henderson Hall Child
    Development Center. The audit indicated the background check and
    adjudication process would benefit from standardizing the criminal
    background check adjudication process and adding a review of the
    installation's adjudication processes as a permanent part of the
    inspections of Child and Youth Service programs conducted annually per
    current policy. The Department is currently updating our policy
    instruction, DODI 1402.5 Criminal History Background Checks on
    Individuals In Child Care Services, which is currently under review. In
    order to expedite the process, we are working closely with law
    enforcement experts and with the Defense Civilian Personnel Advisory
    Service. The update will provide consistent guidance in regards to
    standardizing the procedures and adjudication of background checks for
    child care workers.
        The Department has focused efforts on improving the quality and
    oversight of its child development and school age care programs. In
    cooperation with the military Services, a standardized framework of
    common standards is under development and planned for implementation in
    fiscal year 2014. The delivery of research-based training for child
    care staff and school-age program staff through web-based systems is in
    early implementation with piloting scheduled for the summer of 2013 and
    roll out in the fall of 2013.
        Spouse Education and Career Opportunities
        The DOD Spouse Education and Career Opportunities (SECO) program is
    a comprehensive suite of services, resources and connections for
    military spouses that provides assistance for their career lifecycle to
    include career exploration, education and training, and employment
    readiness, and career connections. Military spouses can receive
    information and counseling about careers, education, license and
    credentials, resume assistance and interview preparation from career
    counselors through the SECO Career Center. During fiscal year 2012, the
    Career Center for SECO supported more than 121,000 requests for SECO
    assistance.
        Additionally, through the Career Center, spouses can create a
    career plan and directly connect with 162 corporate employers now
    participating in the Military Spouse Employment Partnership (MSEP).
    Since the launch of MSEP in June 2011, more than 40,000 military
    spouses have been hired by MSEP Partners.
        Military OneSource
        Military OneSource provides call center and web-based information,
    non-medical counseling, and educational materials. Services are
    available worldwide, 24 hours a day, at no cost to the user. In fiscal
    year 2012, Military OneSource responded to more than 750,000 telephone
    calls, distributed more than 3.7 million educational materials and
    assisted servicemembers and families with well over 200,000 Federal and
    State tax filings. Other services include relocation assistance,
    document translation, education resources, special needs consultation,
    elder care consultation, on-line library resources, and health and
    wellness coaching. Wounded warrior consultation services, accessed via
    Military OneSource, provide immediate assistance to recovering wounded,
    ill, and injured servicemembers, their families, and caregivers. In
    2012, this service processed more than 17,000 calls and resolved more
    than 2,400 cases for wounded warriors.
        Morale, Welfare, and Recreation Program
        Morale, Welfare, and Recreation (MWR) programs throughout the
    Services provide a comprehensive network of quality support and
    recreation services to enhance the readiness and resilience of our
    servicemembers and their families. The following include some
    noteworthy updates to these services:
        MWR Internet Cafe: Military spouses indicate that communication is
    the number one factor in coping with the stress of deployment. The
    Department now funds over 426 free MWR Internet Cafes in Afghanistan
    and the Middle East and 152 portable satellite units (known as
    MoraleSat or Cheetahs) to support remote combat locations. In fiscal
    year 2012, more than 82 million minutes of ``talk time'' were used to
    keep families in touch with deployed loved ones.
        Tutor.com: Tutor.com has been a tremendous success with children
    and youth and their families, allowing students to be in touch with a
    live tutor to answer questions, as well as talk through the process of
    problem solving until students grasp the principle and concepts of
    whatever academic challenge they request assistance with. Tutor.com
    reports more than 600,000 tutoring sessions over the 3 years the
    program has been in existence.
        Servicemember and Spouse Credentialing and Licensing Efforts
        DOD is leading a government-wide effort to help servicemembers earn
    civilian credentials and licenses in order to receive appropriate
    recognition for their military training and experience. Currently, more
    than 3,000 servicemembers in approximately 25 military occupational
    codes are participating in credentialing and licensing initiatives.
        The challenge in credentialing and licensing is that most national,
    State, and local credentialing and licensing agencies do not always
    recognize equivalent military training, education, and experience
    because they are unaccustomed to assessing these areas. They also often
    lack access to information that would allow them to better understand
    and evaluate military education, training and experience. The
    Department is working closely with the White House, and other Federal
    agencies such as: Veterans Affairs, Department of Labor, Department of
    Transportation and Department of Education; State governments;
    professional organizations, and affinity groups to address these
    challenges.
        During the last 12 months we have made significant progress. For
    example, 37 States now grant waivers of the Commercial Drivers Licenses
    driving skills test for veterans and servicemembers. Currently more
    than 24 States are pursuing legislative changes which will further
    reduce barriers to licensing at the State level. The First Lady and Dr.
    Biden, through Joining Forces, have been key proponents of licensure
    and credentialing for both separating servicemembers and military
    spouses. They presented both the military spouses and separating
    servicemember licensure issue at the National Governor's Association
    (NGA) meeting in February 2013. As of March 2013, 29 States have passed
    legislation expediting the professional licensing process for military
    spouses. Another 13 States currently have active legislation in
    expediting licenses. Professional licensing generally covers most
    occupations, with the exception of teachers and attorneys. Health
    related professions (physicians assistants, nurses, radiologist,
    dentists and dental techs), and commercially oriented professions
    (CPAs, architects, engineers) are also included. Seventeen States have
    statutes allowing credit for military education (credit towards
    licensing and academic degrees for substantially equivalent military
    education, training and experience), training and experience towards
    professional licensing for transitioning servicemembers; another 22
    States have active legislation in this area.
        Defense Commissary Agency
        The Defense commissary system enhances the quality of life of
    members of the uniformed services, retired members, and their
    dependents while supporting military readiness, recruitment and
    retention. The commissary continues to be one of the most valued non-
    pay compensation benefits enjoyed by our military members and families,
    be they Active, Guard and Reserve, or retirees. Commissary shoppers
    save an average of 30 percent on their purchases compared to commercial
    retailers. This equates to a potential savings of about $4,500 per year
    for a family of four, or more than $1,500 annually for a single
    servicemember.
        Beyond grocery savings, the commissary system provides a paycheck
    to many military families. Military spouses account for more than 4,000
    of DeCA's 15,130 civilian employees in the United States, about 27
    percent of the commissary's U.S. workforce. Military dependents, Guard
    and Reserve members, retirees, and other veterans provide an additional
    37 percent of the U.S. workforce.
        Challenges from sequestration would reduce military families'
    access to commissary savings, because commissaries may need to
    accommodate potential furlough of its civilian employees. While we
    believe most commissary patrons will move their shopping trips to other
    available days, we estimate that military families who migrate their
    shopping to commercial retailers would spend significantly more on
    their food bills during the remainder of fiscal year 2013.
        Dependent Education
        Ensuring excellence in the education of military children is a top
    priority for the Department of Defense. There are approximately 1.2
    million school-aged children with a parent serving in the military.
    More than 84,300 of these children attend one of the schools operated
    by the Department of Defense Education Activity (DODEA). To this end,
    DODEA is leaning forward to provide an educational experience that
    challenges each student to maximize his or her potential and prepares
    them to be successful, productive and contributing citizens in today's
    global economy. Highlighted below are some significant accomplishments
    to transform schools.

             Common Core State Educational Standards: DODEA joins
            46 States and the District of Columbia in adopting the Common
            Core State Educational Standards. For our military-connected
            students, these standards will change the education experience
            from a patchwork of various State standards as they move from
            State to State to one that will be as close to academically
            seamless as possible.
             Digital Conversion: To prepare classrooms for the
            infusion of technology into teaching and learning, DODEA
            upgraded the bandwidth and wireless infrastructure in all 194
            schools.
             College and Career Readiness: DODEA increased the
            mathematics graduation requirements, expanded course offerings
            in the areas of Science, Technology, Engineering, and
            Mathematics (STEM), foreign language and Advanced Placement.
            The Virtual High School has increased course offerings by an
            average of 13 courses per year.
             Early Reading Success: DODEA adopted a goal to ensure
            all students are reading on grade level by grade 3. This
            included the implementation of a new early childhood reading
            assessment which now is administered in kindergarten versus
            third grade, past longstanding practice. First year reading
            results showed promising gains.
             School Facility Recapitalization and Repair: In 2009,
            134 of DODEA's 194 schools were rated below the DOD acceptable
            facility condition standard. The substandard schools were safe
            but too costly to maintain with routine improvements. Of the
            original 134 substandard schools, DODEA has completed 9
            schools, has an additional 12 schools under construction, and
            51 schools in design. DODEA is on target to meet the goal of
            bringing all schools to the DOD acceptable condition standard
            by the end of fiscal year 2018.
             Educational Outreach: Since 2008, DODEA awarded nearly
            $200 million in grants to over 150 military-connected public
            school districts reaching more than 280,000 military-connected
            children in 900 public schools. These grants help non-DOD
            schools improve educational opportunities for military children
            in public schools.

        The effects of sequestration could potentially delay the
    educational transformations, resulting in significant implementation
    delays, in some areas by as much as 2 years, e.g., in the area of new
    curriculum adoptions, digital classroom conversions, and employment
    reform (e.g. new processes for recruiting, hiring, evaluating,
    interviewing and on-boarding of new educator hires). However, the
    Department is making every effort to ensure military-connected children
    attending DOD schools are provided full academic years and that schools
    maintain accreditation standards.

    Total Force Management
        We are committed to ensuring the Department's mix of Active and
    Reserve military, government civilians, and contracted services provide
    our commanders with the capabilities and readiness they require. The
    Department recently issued guidance that reiterated and re-enforced key
    total force management concepts. Specifically, the Department is
    committed to precluding inappropriate transfer for work to the private
    sector from government performance (especially work that is inherently
    governmental or critical). As the Department executes civilian
    workforce reductions, implements a hiring freeze, releases term/
    temporary employees, and faces civilian potential furloughs our
    managers and commanders must ensure that workload is not being
    inappropriately absorbed by the private sector in violation of our
    title 10 obligations.
        The Department's implementation of NDAA for Fiscal Year 2013,
    section 955, requiring reduction in funding for civilians and contract
    support commensurate to reduction in funding associated with end-
    strength reductions, will be done in a manner that reduces mission
    impact and mitigates risk to programs and operations, while maintaining
    core capabilities and support to our warfighters and their families. We
    will ensure that our Total Force is sized and shaped to perform the
    functions and activities necessary to enable our capabilities and
    achieve our missions.
        Civilian Hiring Freeze and Furloughs
        One of the highest profile effects of sequestration is the
    potential furlough of the majority of the Department's 800,000
    civilians. Notification of the Department's intent was sent to Congress
    and to the civilian workforce on February 20. The Department will apply
    furlough actions in a consistent and equitable manner, with few
    exceptions based on unique mission requirements.
        The potential furloughs will be disruptive and damaging to our
    ability to carry out the defense mission. We anticipate morale and
    financial effects on our valued civilian employees, a decline in
    productivity, and a potential loss of critical civilian talent in high
    demand fields; e.g., cyber, intelligence, and information technology.
        In order to address the severe across the board cuts, the
    Department has also implemented, with limited exceptions, a civilian
    hiring freeze and has started releasing temporary and term employees.
    These actions put the Department further at risk of competency gaps and
    critical skill shortages in key mission critical areas. In fiscal year
    2012, the Department hired almost 60,000 new employees to meet mission
    requirements. Of these employee hires, approximately 47 percent were
    veterans, a community with unique skills sets valuable to the
    Department. This hiring does not occur just in the Washington, DC,
    area, therefore the ramification of these actions ripples beyond the
    walls of the Pentagon and will be felt well outside the Beltway. In
    fact, the vast majority of the Department's civilian workforce, almost
    86 percent, works outside the Washington, DC, area. The loss of key
    skill sets effect our communities throughout the country.
        Strategic Human Capital Plan and Critical Skills Gaps
        The fiscal year 2010-2014 DOD Strategic Workforce Plan (SWP) was
    submitted to Congress in March 2012. The plan detailed progress made,
    present and future challenges, and strategies in place for shaping the
    demographics of a ready civilian workforce. The fiscal year 2014-2018
    DOD SWP, in development, expands the SWP framework and functional
    community structure to cover all 274 major occupations covering over 90
    percent of the workforce.
        The Strategic Workforce Plan is an integral tool for informing the
    Department's policies and procedures for recruitment, retirement and
    accession planning, professional training and education, and retention
    in order to guard against a skill shortfall or erosion of competencies
    as workforce actions are implemented.
        Contractor Services Accountability and Integration
        Contracted Services represent the efforts of private firm employees
    performing identifiable tasks for the Department rather than producing/
    manufacturing end items of supply. In 2010, Secretary Gates issued a
    directive to reduce certain staff augmentation contract services,
    particularly at headquarters staffs, by 10 percent a year over the next
    3 years. The NDAA for Fiscal Year 2012 limited contract spending to
    fiscal year 2010. While the NDAA for Fiscal Year 2012 directed
    reductions in spending on those services performing closely associated
    with inherently governmental work and staff augmentation, section 955
    of the NDAA for Fiscal Year 2013 further requires reductions in total
    funding.
        The Department is currently able to estimate, through its Inventory
    of Contracts for Services, a like unit of measure of contractor effort
    to compare to civilian full-time equivalents and military end strength.
    The inventory for fiscal year 2011, submitted to Congress this past
    summer, was the most comprehensive to date. The most recent inventory
    estimates approximately 710,000 contractor full-time equivalents and
    $144.5 billion. We are now further improving visibility into, and
    accountability of, contract services by collecting direct labor hours
    and associated cost data from contractors, which can then be compared
    to our civilians and military workforce planning factors.

                                 HEALTH AFFAIRS

        We are committed to providing the quality healthcare to our
    beneficiaries while ensuring fiscal responsibility. Our highest
    priority is to keep our servicemembers healthy and medically ready for
    deployment anywhere in the world. We must also ensure a ready medical
    force that can provide contemporary healthcare wherever it is required.
    We have a special obligation to our wounded warriors and their care
    will continue uninterrupted regardless of any fiscal challenges.
        Healthcare Costs
        Rising health care costs are a serious challenge for the
    Department. In 1996, when TRICARE was fully implemented, a working age
    retiree's family of three contributed, on average, roughly 27 percent
    of the total cost of health care. Today that percentage has dropped to
    less than 11 percent. Health care costs have grown substantially since
    1996, while retiree's family's out of pocket expenses, including
    enrollment fees, deductibles and cost shares, has only grown by 30 to
    40 percent. The Department seeks to rebalancing the cost-sharing borne
    by military retirees. Even with our current proposals, cost-shares
    borne by retired military families are still less than what they
    experienced in 1996.
        Therefore, the Department is seeking further changes to the TRICARE
    program in the fiscal year 2014 budget as follows:

             Increase the TRICARE Prime enrollment fee (using a fee
            ceiling/floor structure), instituting an enrollment fee for
            TRICARE Standard/Extra, and increasing Standard/Extra
            deductibles, and adjusting the catastrophic cap to exclude
            enrollment fees. These changes will affect only retirees.
             Increase co-pays for pharmaceuticals (excludes Active
            Duty servicemembers).
             Implement an enrollment fee for new TRICARE-for-Life
            (TFL) beneficiaries (grandfathers those already Medicare-
            eligible at enactment).

        These fee changes will be phased-in over several years, and fees/
    deductibles/Rx co-pays/catastrophic cap levels will be indexed to
    growth in annual retiree cost-of-living adjustment (COLA). Even after
    the proposed changes in TRICARE fees, the TRICARE benefit will remain
    one of the best medical benefits in the United States, with lower out-
    of-pocket costs than most other employers. We ask for congressional
    support for our proposed cost savings initiatives in the fiscal year
    2014 President's budget that require legislation in order to be
    implemented
        The Department is also working on other ways to ensure the
    financial viability of TRICARE for far into the future. In 2008 and
    2009, with the support of Congress, the Department instituted a number
    of changes that have had positive effects in slowing the rise of health
    care costs. We established ``Federal Ceiling Prices'' that required
    pharmaceutical manufacturers to provide the Department discounts for
    drugs provided to TRICARE beneficiaries through retail network
    pharmacies (saving almost $800 million annually) and we changed how we
    reimburse private hospitals for outpatient services provided to TRICARE
    (saving over $900 million annually by 2014 when this is fully
    implemented).
        The Department is in the process of revising its payment rules to
    reimburse inpatient care claims at sole community hospitals by using
    Medicare rates (saving $100 million annually when fully implemented).
    To further reduce costs, the Department is changing how it buys medical
    products, by leveraging the bulk buying power of the military health
    system. A series of strategic price reduction initiatives are being
    implemented, saving the Department on average, $60 million annually.
    The Department is reducing administrative overhead in the military
    health system by streamlining its processes; reducing the number of
    unnecessary reports, studies and Commissions; and initiating other
    actions which will result in over $200 million in reduced personnel and
    contract costs annually.
        The Department has instituted an active and ongoing process
    designed to prevent, detect, and control fraud and abuse. We expect
    these efforts on average will avoid costs and recover overpayments of
    $50 million annually over the next 5 years. In effort to control long-
    term costs, the Department is pursuing a multifaceted strategy to
    invest in initiatives that keep beneficiaries well, promote healthy
    lifestyles, and reduce inappropriate emergency room visits and
    unnecessary hospitalizations while improving patient satisfaction. In
    the short term, we expect savings on average of over $25 million over
    the next 5 years.
        Also with Congress' support, we have made small strides in ensuring
    our health benefit, while remaining one of the finest health benefits
    provided by any employer in the country, is managed in a manner that
    ensures the long-term strength of the Military Health System. We now
    require new enrollees to the U.S. Family Health Plan to move to the
    TRICARE for Life (TFL) Program upon becoming eligible for Medicare,
    like all other military retirees (saving $600 million annually);
    Congress has permitted small increases in the TRICARE Prime enrollment
    fees for working age retirees and some adjustments to retail and mail-
    order pharmacy co-pays.
        Defense Health Agency
        In 2013, the Department will move forward with significant changes
    in how we govern the Military Health System, consistent with the
    direction provided by the Deputy Secretary of Defense in 2012 and by
    Congress in the NDAA for Fiscal Year 2013. The following three major
    steps are now being formalized within the Department.
        First, we are establishing a Defense Health Agency (DHA) with
    responsibility for administering shared services across the
    Department's military health portfolio. We will achieve Initial
    Operating Capability for the DHA by October 1, 2013.
        Second, we are provided enhanced authorities for military medical
    leaders in our largest, multi-Service medical markets (National Capital
    Region; Portsmouth, VA; Colorado Springs, CO; San Antonio, TX; Puget
    Sound, WA; and Honolulu, HI) to ensure we best utilize our military
    medical resources in the community, improve access to care, and lower
    costs. We will also use these medical readiness platforms to identify
    best practices and institute more standardized approaches to both
    clinical and administrative processes.
        Finally, we are also transitioning the Joint Task Force-National
    Capital Regional Medical to a directorate within the Defense Health
    Agency. This transition will sustain the joint organizational structure
    of the two inpatient medical facilities in the NCR, clarify
    accountability for comprehensive market management, and allow the MHS
    to reduce intermediate headquarters overhead for managing the market.
        Collectively, we believe the actions will have a substantive effect
    on improving readiness, improving the health of our population,
    improving the health care delivered in our medical facilities, and
    reduce the rate of growth in our health care costs.
        Post-Traumatic Stress Disorder and Traumatic Brain Injury
        An estimated 13 to 20 percent of over 2.6 million servicemembers
    who deployed have or may develop Post-Traumatic Stress Disorder (PTSD)
    symptoms. From 2000 to 2012, 125,592 servicemembers were formally
    diagnosed with PTSD in military treatment facilities. PTSD is
    treatable, and servicemembers can expect to recover with appropriate
    medication and/or psychotherapy. Current surveillance approach to
    identify servicemembers with PTSD includes annual periodic health
    assessments, pre-deployment health assessments, and post-deployment
    health assessments and reassessments. Treatment of PTSD is most
    effective with early and accurate diagnosis. The DOD has increased
    mental health staffing by 35 percent over the last 3 years, and has
    moved to embed mental health providers within primary care clinics and
    line units to increase access. New PTSD virtual reality tools, web-
    based and mobile applications, have expanded tele-health services to
    increase access to care.
        Not all those with PTSD symptoms are diagnosed. Estimates suggest
    that 23-40 percent of those who need services do not receive care.
    While symptoms of PTSD usually present shortly following a traumatic
    event, for some individuals, PTSD symptoms will present months or years
    later. To address this, DOD is integrating behavioral health at the
    primary care level through system-wide expansion of screening through
    the Re-Engineering Systems of Primary Care Treatment in the Military
    (RESPECT-Mil) program and care provision through the Behavioral Health
    Optimization Program (BHOP).
        The DOD is actively engaged with the VA and HHS in support of the
    implementation of Executive order, ``Improving Access to Mental Health
    Services for Veterans, Servicemembers, and Military Families'' (August
    2012). The DOD/VA Integrated Mental Health Strategies (IMHS) continues
    to serve as a mechanism to identify joint actions to address common
    mental health needs.
        Traumatic Brain Injury (TBI) is a signature injury of the Operation
    Enduring Freedom/Operation Iraqi Freedom (OEF/OIF) conflicts. TBI
    occurs on a continuum from mild TBI, or concussion, to severe and
    penetrating; severe TBIs are relatively easy to detect, whereas mild
    TBIs are usually less obvious. DOD mandated the new in-theater DOD
    Instruction 6490.11 (DODI), ``DOD Policy Guidance for Management of
    Mild Traumatic Brain Injury/Concussion in the Deployed Setting,'' in
    September 2012. This new policy emphasizes the importance of the early
    detection of servicemembers with concussion, while providing clear and
    specific guidelines for the management of acute concussions.
        Since implementation of theater-wide policies, approximately 14,226
    servicemembers were screened for concussion following potentially
    concussive events in theater (August 2010 to July 2012). Of those
    screened, approximately 15.2 percent (2,162) were diagnosed with
    concussion/mild TBI, which has been a consistent percentage over last 5
    years. The Department emphasizes access to and quality of TBI care and
    TBI research ($674 million invested since 2007), with focus on
    development of tools, treatments, and studies that follow TBI patients
    over time to understand the course of the condition.
    Wounded Warrior Care
        The care of our wounded warriors and the support they and their
    families receive as they recover and transition back to military or
    civilian life is our highest priority. Despite any fiscal constraints,
    the Department faces due to sequestration, our continued focus on their
    world class medical treatment, mental health, rehabilitation, and when
    feasible entry to military service, will continue unabated. We will
    work together with Services, advocates, and non-medical care managers
    to ensure we better identify and address non-medical needs of
    recovering servicemembers, their families, and caregivers. Our wounded
    warriors and their families who care for them deserve the very best, no
    matter what, for their sacrifice.
        The Integrated Disability Evaluation System
        The Integrated Disability Evaluation System (IDES) integrated two
    large, separate, and sequential systems, which had existed since the
    1940s and required more than 540 days for a servicemember to navigate.
    The DOD and VA completed fielding IDES at 139 Military Treatment
    Facilities in September 2011. The Departments met all IDES objectives:
    the new process is fairer, faster, and provides VA benefits more
    quickly than before. We took several steps in 2012 to improve
    performance, including increasing IDES staff by 127 percent (676
    personnel), testing information technology capabilities that eliminate
    mailing paper records, increasing policy flexibility and pilot testing
    the use of cohort groups to accelerate simpler cases.
        The Department recently concluded a preliminary study of the
    feasibility of consolidating the disability evaluation system across
    all Services to further ensure consistency of ratings and
    determinations. Additional analysis is required to fully understand
    implications to servicemembers, Service missions and resource impacts.
    In addition, we recently concluded a study of Physical Evaluation Board
    Liaison Officers (PEBLOs) addressing responsibilities, standard
    training objectives, and workload. Further analysis will provide
    insight into the necessary ratio of PEBLO to servicemember to improve
    communication and servicemember satisfaction with the disability
    evaluation system.
        DOD is working closely with VA to better integrate processes,
    tools, and share lessons learned. As an example, DOD and VA are
    piloting an electronic case file transfer capability to eliminate
    mailing hardcopy records between departments. With the implementation
    of Health Artifact Image Management System, DOD and VA will
    electronically share Service treatment records. The Army, which
    represents 76 percent of the disability caseload, has committed to
    issuing electronic DD 214 for all their cases by December 31, 2013.

                                RESERVE AFFAIRS

        Today, a combination of factors change the way we view the
    utilization of our Reserve component (RC) in the future and constitute
    a ``new normal.'' A volatile international security environment still
    persists, and a constrained Defense budget for the foreseeable future
    will place additional burdens on the training, equipping, recruiting
    and retention to the Total Force in fiscal year 2014 and out.
    Therefore, use of the Reserve component as part of the operational
    total force makes business sense.
        The Reserve component, as part of the Department's Total Force,
    provides the ability to preserve many capabilities and capacity at
    reduced long-term cost within manageable risk. Over the last decade the
    Reserve and National Guard units have clearly proven the ability to
    accomplish any assigned mission overseas or at home. During that time
    the Reserve component has become an integral part of the Nation's
    military force participating in nearly every mission worldwide. Today's
    Reserve component is a force multiplier which provides access and
    flexibility at an incredible value allowing the Services to utilize
    full capabilities in an operational capacity while retaining strategic
    depth. Today's Citizen Warriors have made a conscious decision to serve
    since September 11, with full knowledge that their decisions mean
    periodic recalls to active duty under arduous and hazardous conditions.
    They will continue to play a vital role as we move beyond the past
    decade of war in Iraq and Afghanistan and the Department shapes the
    force to implement defense strategy and to respond to the challenges of
    a new era.
        The Department's National Guard and Reserve servicemembers totaling
    about 1.1 million contribute 43 percent of our total military end
    strength at a cost of 9 percent of the total base budget and continue
    to fulfill their vital national security role. The National Guard and
    Reserve provide trained, ready, and cost-effective forces that can be
    employed on a regular operational basis, while also ensuring strategic
    depth for large-scale contingencies or other unanticipated national
    crises. As of mid-March 2013, there are 53,658 servicemembers
    activated. Over the past decade, over 869,877 Reserve and National
    Guard servicemembers have deployed.
        Recruiting
        Success in recruiting is essential to maintain the strength
    necessary for the Reserve components to achieve their assigned
    missions. Like the Active component, the Reserve component also
    continues to access high quality recruits. Each of the six Reserve
    components has exceeded departmental benchmarks for recruit quality.
    For the remainder of the fiscal year, these trends are expected to
    continue. Five of the six Reserve components have met their fiscal
    year-to-date accession missions through February 2013. However, as the
    economy improves, competition for high quality Reserve recruits will
    increase and recruiting missions will become more difficult to achieve.
    Although as the Active component continues to reduce end strength, some
    Active component members may choose to continue service in the Reserve
    component.
        Attrition
        Retention of high quality Reserve component servicemembers
    continues to remain a high priority. While the Reserve components have
    seen a slight increase in attrition over fiscal year 2012, all Reserve
    components are currently within the departmental targets. The aggregate
    fiscal year-to-date departmental attrition rate was 5.12 percent in
    fiscal year 2012 and is currently at 5.97 percent. Improved
    opportunities in the civilian world affect our ability to retain some
    of our best and brightest. We will continue to monitor our Reserve
    component attrition posture closely.

    Family and Transition Support
        Yellow Ribbon Reintegration Program
        In the past 12 months, the Services conducted 1,855 Yellow Ribbon
    Reintegration Program (YRRP) events that provided vital family
    deployment, non-medical mental health, and family readiness support
    resources to 233,820 servicemembers, family members or designated
    representatives. The Services are projecting 1,691 events for fiscal
    year 2013 in support of continued operations in Afghanistan and other
    theater security and humanitarian missions around the globe.
        YRRP continues to develop policies, tools, and resources necessary
    for the Services to address challenges faced by Guard and Reserve
    families, as well as those stemming from the evolving nature of
    military operations. YRRP is developing online curriculum to assist
    event planners with the unique challenges of multiple deployments,
    geographically dispersed families and reintegration/unemployment
    issues; refining metrics collection and analysis to continually measure
    and improve the long-term effectiveness and efficiency of the program.
    We are also working with partners like the Defense Suicide Prevention
    Office, to include the VA and the NIH's Substance Abuse and Mental
    Health Services Administration to expand suicide prevention resources
    and community healing opportunities; and working with the Services to
    develop flexible, long-term policies for the future of deployment cycle
    support.
        The YRRP compliments Transition Assistance Program (TAP) by
    assisting National Guard and Reserve members as they transition between
    their military and civilian roles. YRRP events provide National Guard
    and Reserve members with access to local information on health care,
    education/training opportunities, and financial/legal benefits. In
    addition, up to 30 resource providers also participate at YRRP-
    sponsored events, including the Departments of Veterans Affairs and
    Labor, the Small Business Administration, Military Family Life
    Consultants, Chaplains, certified financial planners, Military
    OneSource consultants, Red Cross representatives, and employment
    transition coordinators.
        Hero2Hired (H2H.jobs)
        Hero2Hired (H2H) is a comprehensive YRRP career readiness program
    with both a high touch and a high tech approach designed to connect
    Reserve component members with potential employers. A robust IT
    platform supports Guard and Reserve members with significant features
    including a Military Occupational Specialty skills translator, a case
    management feature, job search capabilities (by profession, geographic
    location, company), resume builder, mobile application and a career
    skills assessment. Since its launch in December 2011, H2H.jobs has
    signed up more than 113,383 job seekers and more than 15,517 employers.
    The program engages the Employer Support of the Guard and Reserve
    network of 4900 volunteers along with 56 contracted Employment
    Transition Coordinators (ETC) within all 50 States, Territories, and
    the District of Columbia to provide servicemembers with employment
    assistance in their local communities.

    Partnership and Outreach
        Employer Support of the Guard and Reserve
        Employer Support of the Guard and Reserve (ESGR) is a DOD
    organization created in 1972 to foster a culture in which all employers
    support and value the employment and military service of members of the
    National Guard and Reserve in the United States. ESGR's mission is
    particularly relevant in an era of increased reliance on the Reserve
    Component to conduct worldwide combat operations and provide
    humanitarian response. The ESGR Customer Service Center (CSC) provides
    Uniformed Services Employment and Reemployment Rights Act (USERRA)
    information and mediation support to servicemembers and their civilian
    employers. In fiscal year 2012, ESGR answered more than 21,000 USERRA
    inquiries and mediated almost 2,800 USERRA cases resolving over 77
    percent of the cases in less than 9 calendar days. As a result of
    sequestration, there may be a reduction in awareness of ESGR programs
    and USERRA rights and responsibilities due to a reduction in outreach
    efforts.
        National Guard Youth Challenge Program
        The Department includes funding for the National Guard Youth
    Challenge Program in fiscal year 2014. The budget request will support
    35 programs located in 27 States, the District of Columbia, and Puerto
    Rico. The 17-month program consists of two phases (residential and
    post-residential) and serves 16-18-year olds who are not attending high
    school and unemployed. The residential program is 22 weeks long and it
    stresses academic excellence, leadership and followership, citizenship,
    community service, life coping skills, job skills, physical fitness,
    and health and hygiene. The post-residential mentoring period is 12
    months long. It is designed to assist/support the residential graduates
    as they return to secondary school, continue on to college or
    vocational learning institutions, or enter the job market. Since the
    program's inception in 1993, over 120,000 participants have graduated,
    contributed over 8 million hours of service to communities that is
    valued at over $155 million and approximately 70 percent of the program
    graduates have earned academic credentials such as a GED, High School
    diploma, or high school credit recovery certification. The budget
    request plans to support DOD's cost share of 75 percent of the
    program's operating costs in order to graduate approximately 9,000
    program participants annually.

                              DOD-VA COLLABORATION

        To fulfill the sacred responsibility of caring for those who have
    fought for our country, close and effective collaboration between DOD
    and the Department of Veterans Affairs (VA) is essential. While there
    is no doubt that DOD and VA are working more closely together than ever
    before, it is also clear that we need to reach an even deeper level of
    cooperation to better meet the needs of those who have served our
    Nation in uniform, especially our wounded warriors. It is a great
    priority for P&R to continue to strive to achieve our joint vision of a
    seamless ``single system experience of lifetime services.''
        Working together, our Departments have already made many important
    changes to our system of care for wounded warriors, servicemembers,
    veterans, and their families. But clearly, there is considerably more
    work to be done, particularly to meet the needs of the post-September
    11 generation of warriors. It is critically important that we overcome
    the bureaucratic processes of the past--and therefore we are working to
    implement major changes in several areas that together will
    dramatically improve the quality of the services DOD and VA are able to
    provide.
        Integrated Electronic Health Records (iEHR)
        The DOD and VA remain committed to implement full health data
    interoperability. The DOD and VA together support more than 17 million
    beneficiaries. Transitioning health care for servicemembers from one
    large health care system to the other involves the precise exchange of
    data. Therefore, in order to accelerate availability of seamless health
    care information, DOD and VA will modify the strategy for developing
    the iEHR. To reduce the cost and technical risk that an entirely new
    system would present, DOD and VA agreed to use a ``core'' set of
    applications from existing EHR technology, which could be added to
    additional modules or applications as necessary. The Department is
    committed to the implementation of iEHR and will work with VA fast-
    track standardized technical and clinical capabilities.
        We believe our current strategy will achieve our goals for the
    electronic health record system: reduce costs, shorten the timeline,
    reduce risk, and increase capability. We remain focused on healthcare
    data interoperability between the DOD and VA to ensure that we improve
    the quality of care per dollar spent for our servicemembers, veterans,
    and beneficiaries as they move within the DOD, VA, and private sector
    health care systems.
        VA Claims Backlog
        Veterans' benefits are a vital extension of a holistic benefits
    package to sustain an AVF. Therefore, we are fully engaged in the issue
    of Veterans Disability Benefits Claims backlog. We will provide VA with
    any information we have which will assist them with processing claims
    and help eliminate the backlog. We currently provide approximately 98
    percent of the required personnel data for claims adjudication with VA
    electronically, and we continue to seek how to close the gap on the
    remainder. We have provided VA access to all personnel (including
    available DD Form 214) records through a DOD web portal, and we have
    agreed to provide Veterans Benefits Administration employees with
    direct access to our electronic medical record system. We will continue
    to look for ways to assist VA in lowering the backlog.
        We have taken several steps to reduce backlog such as having a team
    of DOD subject matter experts at the Veterans Benefits Administration
    to analyze problematic cases in the VA backlog and conducting a uniform
    Separation Health Assessment for all servicemembers at the time of
    separation from the military. VA will conduct the assessment for those
    who request disability benefits at the time of separation; DOD will
    conduct the assessment for all others. We have already begun to
    implement this at some locations, and we will complete implementation
    by the end of fiscal year 2014. This will assist VA down the road as it
    will establish a baseline medical condition at the time of separation
    which the VA can use to determine service connection of future
    disability claims.

                                   CONCLUSION

        During the past decade, the men and women who comprise the All-
    Volunteer Force have shown versatility, adaptability, and commitment,
    enduring the constant stress and strain of fighting two overlapping
    conflicts. Throughout it all, we were able to build, support and
    transition the finest military ever known. We understand that in order
    for us to continue on this path, we must be vigilant in our efforts and
    resources to ensure that we provide all the necessary recruiting,
    training, support and transition tools for success. The Department is
    committed to our servicemembers' success. Whether it is on the
    battlefield, at home with their families, or after they have faithfully
    concluded their military service, we are committed to preparing
    servicemembers for whatever challenges they may face from warrior to
    veteran. They deserve no less.

        Senator Gillibrand. Thank you to each of you for your
    testimony and for your service. I am extremely grateful to all
    of you.
        I would like to start with Dr. Woodson first. Last year,
    several of us fought very hard to have TRICARE cover the
    applied behavioral analysis (ABA) therapy. It is a behavioral
    therapy for autistic children and children with development
    disabilities. I am disappointed that the pilot program we
    funded is delayed by 3 months by sequestration, but in any
    case, I have not seen details on how it will be rolled out.
        A number of the children covered in the Extended Care
    Health Option (ECHO) Program for Active Duty do not receive
    adequate services due to caps on funding. Will the pilot
    program have caps on services?
        Dr. Woodson. Thanks very much for the question and your
    support of the men and women in the service and retirees and
    beneficiaries.
        As it relates to the ABA pilot, a couple of things need to
    be brought forward. First of all, we could not start the pilot
    until we have an appropriations bill, and that did not happen
    until March 26. But almost virtually on that day we pushed out
    information to providers so that they could start answering
    questions from potential beneficiaries relative to this
    service.
        We have mapped out the program. We have started writing the
    contracts for the program, and just the contracting issues
    require time, and because we could not start the program before
    March 26, 2013, there is that obvious delay.
        But let me just say that since last summer, non-active duty
    beneficiaries have been able to receive ABA therapy through the
    TRICARE basic medical program. That is not capped, so that has
    been available since last summer. Of course now we are setting
    up the pilot.
        So the bottom line is we have multiple ways of paying for
    ABA, and, in fact, historically, we have been in front of the
    pack. We have been providing this for Active Duty family
    members for over 10 years. So we are moving with all due haste
    to set up the program, but we did have some limitations
    relative to the appropriation.
        Senator Gillibrand. ECHO currently only covers certified
    consultants, leaving many locations without adequate coverage.
    Will the pilot program cover ABA technicians and assistant
    behavioral analysts?
        Dr. Woodson. The pilot certainly will cover the
    technicians. These are the non-certified tutors, which is the
    other name that is used, the pilot will cover those
    individuals.
        Senator Gillibrand. The last piece, in July 2012, we
    provided a lot of the data that the military was asking for,
    medical data, demonstrating the benefits of ABA coverage. When
    this review of data is complete, can we then ensure that there
    will be permanent ABA coverage under TRICARE?
        Dr. Woodson. Well, right now it is covered under TRICARE
    basic medical program. Since we always follow the law, if the
    law says we have to provide it, we will provide it irrespective
    of what the data says. So that is not an issue.
        Senator Gillibrand. That is contrary to what we heard in
    the last hearing on this topic. They said it was not a medical
    treatment. They said it was an educational treatment, and so,
    therefore, they were able to cap the access to the number of
    therapies that could be received because it was not considered
    medical.
        Dr. Woodson. Good question, and we should draw the point of
    clarification that if it was left to our discretion, we would
    probably define it still as an educational benefit. But the law
    says that we have to provide it, so we will provide it.
        Senator Gillibrand. But if it is defined as educational, it
    only requires a certain number of therapy sessions. So what the
    families have told us is that they were literally doing second
    mortgages on their homes or going through bankruptcy because to
    be able to afford all the therapies their doctor prescribed for
    their children. It was a financial burden that they could not
    cover.
        Dr. Woodson. Once again, since this summer, under the basic
    program, families can receive ABA therapy. That is not capped
    if a certified provider delivers it. So it is there for them
    right now.
        Senator Gillibrand. Okay. Turning to Secretary Wright, we
    held our last hearing on sexual assault in the military. There
    has been a lot of attention drawn to the issue, largely because
    of the Invisible War documentary. One of the things that we
    discussed in the hearing was that when reporting is made, it is
    made throughout the chain of command, and the disposition
    authority sits within the chain of command, and that that may,
    in fact, undermine reporting, because if we have 19,000 sexual
    assault cases and only 2,500 roughly are reported, and of that
    2,500, only 240 going to trial, and only 190 convictions, you
    are really seeing only one out of 100 convictions happening for
    every 100 alleged cases.
        So my question to you is, if we shift the disposition
    authority away from the chain of command and actually make that
    decisionmaking process be a responsibility of, let us say, the
    JAG corps, the specific prosecutors who are trained on sexual
    assault, what do you think the impact of that will be? Do you
    think it would affect good order and discipline?
        Ms. Wright. Well, ma'am, you are right. The 19,000 is an
    extrapolation from the survey that we did in 2010, I believe.
    We are soon to send to Congress the new sexual assault report
    which will be the end of the month, which will clarify more
    recent numbers. So the 19,000 and the chain of command, I would
    say that the chain of command is really for good order and
    discipline, and I speak from experience because I am a retired
    general officer.
        I do understand the issues with sexual assault, and I think
    the reporting could have something to do with the chain of
    command, but I also think it has something to do with the
    stigma or the risk of reporting, so I think it is not just an
    area related to the chain of command. I would hazard to say to
    take it out of the chain of command, though I will tell you
    that Secretary Hagel is taking this extremely seriously. I have
    a meeting with his office tomorrow morning to talk about more
    measures that we can take--remember he just did the Article
    60--more measures that he could take to put more teeth into
    what the Department is doing.
        So I will tell you, ma'am, that everything is on the table
    because I think his aperture is wide to solve this problem.
        Senator Gillibrand. I have a concern that you just said
    having 19,000 sexual assaults a year represents good order and
    discipline.
        Ms. Wright. No, ma'am. I think the chain of command is what
    represents the good order and discipline.
        Senator Gillibrand. But we have the chain of command, and
    it is the disposition authority, and you still have 19,000
    sexual assaults.
        Ms. Wright. That is an extrapolation from the survey--
        Senator Gillibrand. Okay. So maybe you have 15,000. Maybe
    you have 12,000. Maybe you have 10,000. Maybe you have 5,000.
    Maybe you have the 2,400 that are reported. I do not believe
    2,400 sexual assaults and rapes every year is good order and
    discipline.
        Honestly, I think if you are going to stick to that line,
    you will undermine your credibility enormously because you are
    not getting it done. You are not assuring the safety of men and
    women who are serving and giving their lives for this country
    from rape from their colleagues. So you cannot say the chain of
    command is assuring good order and discipline because you are
    failing.
        Ms. Wright. Yes, ma'am, I agree with you that 19,000, to 1,
    is way too many, and that we have a problem, and that we need
    to do better. I agree with you 100 percent, and that I am doing
    everything in my power, and the Joint Chiefs are also working
    very diligently to correct this problem.
        Men and women join our ranks to serve our country, and they
    join our ranks because they want to protect this country. This
    is a place where they should feel safe. This is a place where
    they should never, ever, ever have a problem of feeling unsafe.
    They should never have a problem of wondering whether they
    would be sexually assaulted, whether they were a man or a
    woman. I agree with you 100 percent. Whether the number is
    19,000 or one, that is way too many for any period of time in
    our military.
        I do believe that the chain of command is a worthwhile
    organization.
        Senator Gillibrand. We are not talking about the chain of
    command. I am talking about them having a specific
    responsibility called disposition authority. Already Secretary
    Hagel feels very comfortable taking away the responsibility of
    the disposition authority to be able to overturn a verdict.
    That is a big change. He feels no problem making that change.
        What I am asking you to consider is if we make the change
    to say, you also are no longer going to have the ability to
    decide whether the facts that are put before you are worthy of
    going to trial because, number one, you are not trained as a
    prosecutor. Number two, you may not have any background in
    sexual assault and rape. Number three, you may have a
    relationship with a perpetrator or the victim. Number four, you
    are not in the position to be objective.
        Ms. Wright. Ma'am, all of those are very good points. To my
    initial comment, Secretary Hagel has everything now on the
    table since he decided on Article 60, which was a very big
    step, and a very important step, and a very needed step. Since
    he decided on that, I have a meeting with him tomorrow morning
    to give him more ideas, and that is on the table to take it
    away from the chain of command.
        So we are--yes, ma'am.
        Senator Gillibrand. My time has expired, but I will leave
    you with this. Senator Graham made very good points in our last
    hearing on sexual assault. He went through the number of cases
    when, in fact, Article 60 was used to overturn a case. It was
    extremely rare. It was one out of many, many, many cases. It
    was so uncommon.
        If Secretary Hagel believes that that made a difference, I
    think that is a very good first step. But if it is so rare, I
    do not think that alone will change people's interest in
    reporting. I do not think it will change people's assessment of
    whether they will receive justice. I do not think it will
    change people's assessment of whether they think it is safe to
    report to their commanding officer.
        I would like you to make sure when you say everything is on
    the table that you really mean it.
        Ms. Wright. Yes, ma'am.
        Senator Gillibrand. Because so far every person in the
    military that I have spoken to defends this one little
    responsibility that has not--that has only recently been
    elevated to someone higher up the chain of command, so it is
    not as if this person has had this authority for very long. It
    is really since the last NDAA we passed. So it is not something
    that has been set in stone forever and a day.
        I think if you say everything is on the table, you should
    look at the whole structure because that is really what needs
    to be looked at.
        Ms. Wright. Yes, ma'am.
        Senator Gillibrand. There is a reason why people are not
    reporting.
        Ms. Wright. Yes, ma'am. I will guarantee you that we are
    looking at the whole structure.
        Senator Gillibrand. Thank you.
        Senator Ayotte?
        Senator Ayotte. Thank you. I appreciate your passion on
    this really important issue, Madam Chairman. This is an issue
    that is a bipartisan issue that we are concerned about making
    sure that when our men and women in uniform are victims of
    sexual assault, that they understand that when they come
    forward, they will receive justice. They will receive support.
    It seems that they should--to make sure--my background is as a
    prosecutor before this, so I appreciate your passion for this
    and really the pursuit of this in open hearings and having a
    very important dialogue on how we can address this problem.
        I wanted to ask you, Secretary Wright, about the National
    Guard Youth Challenge Program. I think the National Guard Youth
    Challenge Program is very important. We--Senator Landrieu,
    myself, and three other Senators--sent you a letter that cited
    concerns we have about the Office of Secretary of Defense's
    (OSD) role in managing the National Guard Youth Challenge
    Program.
        One of the concerns that we have is that I do not
    understand why, when we had a good program run by the National
    Guard Bureau (NGB) that OSD felt the need to enter into a
    technical assistance contract from OSD rather than letting that
    control remain in the NGB. So can you help me explain why you
    did that?
        Second, I also want to understand why we are not really
    looking at sufficiently funding to maintain national training
    standards as required by the cooperative agreement.
        Ms. Wright. I can tell you that the Youth Challenge Program
    is a phenomenal program. I agree with you totally. It takes
    youth at risk and it turns them into clearly prosperous
    citizens, and have been doing it for years.
        The NGB was in that decision to have that technical
    contract at OSD. It was a gentleman that was part of the
    program named Lou Cabrera who works with the Chief of the NGB.
    He was working with the OSD staff for that technical contract,
    and we kept it in OSD Reserve Affairs.
        We have an oversight role in OSD Reserve Affairs for the
    Youth Challenge Program, and so that is why we kept it there.
    But we did not do it independently at all. We did it in concert
    with the NGB.
        Senator Ayotte. So the NGB actually supported basically
    reducing--I mean, one of the responsibilities we have is to
    provide staff training. If you look at the fiscal climate that
    we are in, to have OSD now have control over this instead of
    having the NGB have control, that, when we look at some of the
    training gaps, I see that as almost the same amount of money
    that you entered into on the spectrum contract for what the
    needs are on the training of the NGB level.
        Can you help me understand the thinking there, because I am
    actually shocked to hear that our NGB would want to give, with
    all due respect to all of you, more control in Washington than
    at the State level. That is not usually what I hear from them.
    Can you help me understand that?
        Ms. Wright. Well, ma'am, I would have to go back and
    research it. May I take it for the record----
        Senator Ayotte. Yes, please.
        Ms. Wright.--because I will certainly talk to Mr. Cabrera,
    who is our point of contact in the Guard Bureau for the Youth
    Challenge Program, and I will get back to you.
        [The information referred to follows:]

        The amount of money ($1 million) entered into on the Spectrum
    contract was provided to help us understand why a number of Youth
    Challenge sites were reporting sub-optimal results. While training is
    very important, we have found that sites fail to achieve their best
    results due to a plethora of reasons beyond just training, e.g., such
    as travel restrictions, staff turnovers, state personnel requirements,
    and various other issues. Additionally, there are no certified training
    standards adapted nationwide. We are continuing to work on developing
    these types of standards with the National Guard Bureau to ensure
    success.
        We intend to continue our strong partnership of the National Guard
    Youth Challenge Program and further assist the National Guard Bureau in
    optimizing this very important program.

        Senator Ayotte. I really appreciate that, because this is a
    very important program. Obviously the study that was done
    assessing this program said for--the program earned $2.66 in
    benefits from every dollar spent for the students. We are
    empowering the future leaders of this country with that
    program, so I really appreciate it very much.
        I also wanted to ask about military voting. I am very
    concerned about what I have heard about concerns of our
    military getting the right and access to voting, and given the
    sacrifices they are making, I think we can do a lot better
    within DOD.
        In fact, in August 2012, the DOD Inspector General
    basically attempted to contact the voting assistance offices,
    and 50 percent of the time when they tried to contact the
    voting assistance office, they got no answer. I cannot even
    imagine what sometimes our men and women in uniform go through
    in trying to exercise their right to vote.
        I would ask you, there are other examples like the way that
    DOD treats a servicemember group life insurance. When someone
    moves from base to base or duty station to duty station, and
    in-processes and out-processes, you actually reconfirm their
    status in that system. Is there any system in place to
    reconfirm with the servicemember when they are being in-
    processed or out-processed. You are moving? This is how you
    register to vote. This is your right to exercise your right to
    vote. What are we doing to make sure that our men and women in
    uniform, whatever--whoever they decide to vote, have that
    right?
        Ms. Wright. Ma'am, we know that, and I think it was August
    that you said that there was a problem. We really upped the
    game. We put a full court press in on the voting assistance
    office because we recognized that that was an issue throughout
    the military system.
        We are in full compliance with the MOVE Act. We enhanced
    the Federal Government with voting with automated tools. I am
    reading here because I want to get this right. We provide
    guidance and support to the Military Services and the
    designated installation voting assistance officers. We provide
    guidance and training to the State and local election officials
    to ensure that they are aware of the laws and requirements, and
    we execute the enhanced voter education and outreach campaign.
    Yes, ma'am?
        Senator Ayotte. I do not want to interrupt because I know
    my time is almost up--but one thing I am trying to understand
    is when someone either out-processes or in-processes, is that
    part of their in-processing? Are they told along with an array
    of everything whether this is what you need to do for your life
    insurance, this is what you need for that, if you would like to
    exercise your right to vote, here is information on that. Do we
    do that?
        Ms. Wright. I would have to go back and check, but I will
    also tell you, ma'am, that oftentimes in the Active component
    military, an individual has a home of record. So the home of
    record could be Oregon because they entered and they live--they
    do not live, but they have their voting rights in Oregon. They
    may move all over the country, but they vote in Oregon. So that
    would not change based upon their Permanent Change of Station
    to another duty camp or station.
        I can go and look to see if when we transition we ask them,
    but most times the Active component member continues to vote in
    the State of his or her home of record.
        Senator Ayotte. I understand that, and I am not asking you
    to inquire into whether they vote or not. Just making sure that
    they have the tools at their hands to understand how to
    exercise their right to vote.
        For example, one of the big issues I heard a lot of
    concerns about when they were stationed overseas, whether in
    Afghanistan or other places overseas, a real difficulty of
    getting the ballots in time, all of those issues. That is
    another whole separate conversation we can have.
        If you can at least get back to me on an answer of what--if
    I am now in the military and I move, or if I am stationed
    overseas, I am in Korea, wherever I am, what am I told, and
    what information am I given?
        Ms. Wright. How do you go about getting that?
        Senator Ayotte. I just want to make sure it is standardized
    in an appropriate way----
        Ms. Wright. Yes, ma'am.
        Senator Ayotte.--not to infringe, but to give people
    information.
        Ms. Wright. Yes, ma'am.
        Senator Ayotte. I appreciate it. Thank you.
        [The information referred to follows:]

        In compliance with Federal law, and as guided by the Department of
    Defense Instruction 1000.04 (issued September 13, 2012), the Military
    Services provide information and direct assistance on voter
    registration and absentee ballot procedures to uniformed servicemembers
    and their family members when a servicemember undergoes a permanent
    change of duty station; deploys overseas for at least 6 months, returns
    from such a deployment; and/or requests such assistance.
        The Department ensures that every servicemember, especially those
    stationed overseas, has the information needed to exercise their right
    to vote. As part of the 2012 election cycle, the Federal Voting
    Assistance Program (FVAP) supported the voting process by:

             Providing online tools that produced a completed
            Federal Post Card Application or Federal Write-in Absentee
            Ballot to be signed and submitted by the voter.
             Providing training to the Services and completed
            assistance visits to 25 percent of the established IVA Offices
            (43 offices).
             Conducting in-person and ``train-the-trainer''
            workshops at 83 locations worldwide.
             Sending emails to every member of the military with a
            .mil email address. (More than 18 million sent.)
             Enhanced FVAP.gov to provide more direct-to-the-voter
            assistance, including links to local election official
            information and State-specific information and forms.
             Conducted comprehensive communications and outreach
            campaigns.
             Developing new online training modules for local
            election officials and Voting Assistance Officers.
             Working with State legislatures to enact reforms
            benefiting military and overseas voters, including the Uniform
            Military and Overseas Voters Act.

        FVAP is working closely with the Services, State and election
    officials and advocacy groups to ensure voting assistance in support of
    the 2014 elections is even better. Although voting is an individual's
    choice and personal responsibility, the Department works to ensure that
    all members of the Uniformed Services, their families and overseas
    citizens are aware of their most fundamental right--and have the tools
    and resources to vote, if they so choose.

        Senator Gillibrand. Senator Kaine.
        Senator Kaine. Thank you, Madam Chairman. Good afternoon to
    all of you. One of the measures of whether, I guess, a budget
    or a policy is working with respect to personnel is just kind
    of the big picture. How is it going with respect to recruiting,
    and how is it going with respect to retention? What are
    strengths and successes, and what are challenges that you face
    right now on the recruiting and the retention side? Please, Mr.
    Vollrath.
        Mr. Vollrath. Thank you. Let me take that one. First, I
    would make the point that currently recruiting is on track and
    in good shape.
        Senator Kaine. Quickly, you are not having to do anything
    unusual or extra in order to----
        Mr. Vollrath. That is correct.
        Senator Kaine. Okay.
        Mr. Vollrath. That is correct. But having said that, let me
    project out because that is really what I believe we are all
    about here, to manage the future and make sure we are prepared.
    We are very cognizant of the fact that by all means we hope
    that the economy in the United States continues to improve and
    that the unemployment rate continues to go down. That is our
    fondest wish along with every other citizen. But as that
    occurs, and we believe that will occur, then we know by
    experience that we have to be attuned to the fact that
    recruiting is probably going to get a little more difficult as
    we move.
        The second point I would make, as we look to the future,
    because we should learn from the past from the last drawdown in
    the mid-1990s, it is sometimes hard to explain to America that
    you are letting people go, but we still would like to hire
    somebody. So it is counterintuitive.
        Those are two things that we, as we look to the future, we
    want to make sure that we do not become complacent and say,
    well, we can take more money out of recruiting, take more money
    out of recruiting and advertising because it might be just the
    wrong thing to do at the wrong time. So we are watching it like
    a hawk.
        Retention is equally as good, and we do not see any clouds
    out there right now.
        Senator Kaine. Have you noticed any change in the morale
    around recruiting and retention because of budgetary
    challenges, things like sequester, or just the steady drumbeat
    of we have to be about cutting, cutting, cutting?
        Mr. Vollrath. Not on the military side. We have seen some
    concerns on the civilian recruiting side because of a 20
    percent cut in pay. We have a hiring freeze. We are cognizant
    of that one, and it is not a major issue yet, but we are
    watching that, because that is probably going to occur earlier
    than the military issue.
        Senator Kaine. Yes. On the pay side, there is an
    authorization to allow for an increase in salary of 1.8
    percent, and the salary increase proposed in this authorization
    budget is 1 percent. I gather the difference there is about
    $540 million first year and some escalator as it goes by. Was
    that decision made purely as a result of trying to deal with
    challenging budget realities that we would be at the 1 percent
    rather than at the 1.8?
        Ms. Wright. Yes, sir, it was. That was an extremely hard
    decision because our men and women really do yeomen's work for
    us. But with the budget the way it is, we had to strike an even
    balance. So it will be a savings of about $540 million this
    year, and so we wanted to make sure that we certainly got them
    a pay raise, and so it was a collective decision within the
    Department that 1 percent was a good balance.
        Senator Kaine. Just to make sure I understand because this
    is my first personnel hearing dealing with salary and benefit
    issues, the 1.8 percent figure that was authorized was a
    measure of sort of what comparability of what people were
    getting outside the military? Is that sort of a best judgment
    or best--it is like a CPI index of what salary increases are in
    the broader----
        Ms. Wright. Employment Cost Index, sir.
        Senator Kaine. Okay.
        Ms. Wright. Yes, sir.
        Senator Kaine. Okay. I very much applaud in the submission
    the focus on credentialing and training, and this is an area
    with my first piece of legislation I am trying to deal with
    this. I want to do it in a way that is coordinated with you.
        My experience talking to Virginians as Governor and then as
    a candidate was so many folks having a challenge getting
    traction back in a civilian workforce, and there are a variety
    of reasons for that. But one of the reasons seems to be this
    lack of understanding among the civilian hiring officials about
    what it is that somebody brings to the table if they are from
    the military, especially enlisted.
        We appreciate that you serve, but in a day of an all-
    volunteer military, where only 1 percent of adults serve, they
    do not understand what a gunnery sergeant does or what an E-5
    does, and so we like you. We are glad you served. You are a
    patriot. But we do not know what you bring and the work that
    you are doing. I very much look forward to working with you on
    credentialing along the way so that people are getting credit
    for the skills they obtain at the moment they obtain them
    rather than trying to recreate it in the last 30 days of an
    active service. I applaud the work you are doing in that area.
        The better it is, the better recruiting technique as well.
    I look forward to working with you on that.
        As we are wrestling with potential force drawdowns, what is
    the current strategy about this scope of officer training,
    especially Reserve Officer Training Corps (ROTC) programs, and
    how have you factored that in going forward in terms of the
    numbers of people you are taking into those officer training
    programs? Because I hear a little bit about people getting out
    and getting commissioned, but then kind of being backed up
    going in, or being put into Reserve status for a long time, or
    potentially even being told, well, now we may not need you. So
    how are you factoring that into your planning?
        Mr. Vollrath. Senator, right now it is, we would say,
    steady as she goes, okay. Navy term. I am not Navy.
        Senator Kaine. Yes. Is that wise? Is it wise to be steady
    as you go if it looks like the overall----
        Mr. Vollrath. We do. We know the force is drawing down, so
    we have turned off slightly, the ROTC program. We commission
    about 6,000 a year, heavily for the Active component. We have
    21,000 or so in the program, most of them on scholarship or
    some type of help. We believe that we have the math about right
    based on the propensity to not overproduce, particularly given
    the fact that we are going to reduce the size.
        We have worked with the various Services. Army, for
    example, they have already reduced the input, and they have
    planned on it for well over a year. They believe, Army in this
    case and all the Services because we have regular meetings
    about it, that they are not going to wind up with a surplus.
        Your point is well taken. Again, back in the good old days
    where we have the tee shirt, we had too many coming through the
    pipe. That has already been factored in, and we think we have
    it about right. We have not had to turn anybody down yet.
        Senator Kaine. Great.
        Mr. Vollrath. We think we have it.
        Senator Kaine. Okay, thank you Madam Chairman.
        Senator Gillibrand. Senator Donnelly.
        Senator Donnelly. Thank you, Madam Chairman. This would be
    for any of you. I wanted to talk to you about a specific
    situation that has arisen recently, and that is over 1,000
    National Guard members from Indiana--my home State--570 of them
    were preparing to deploy to the Horn of Africa this month, 446
    preparing to deploy to Egypt in June, others preparing to
    deploy as well, were just off-ramped and notified that they
    were being replaced by Active component forces.
        This is the only State that this happened to. Two of these
    units it has happened to less than 6 weeks from deployment
    date. Now these are people who cancelled leases, quit jobs,
    took extraordinary steps in their lives to prepare to get
    things squared away. This off-ramp has been extraordinary
    painful to them, to their families. I know that there was a
    policy put in place that was, okay, we will not do this unless
    somebody is at least over 120 days out. That was after this
    occurred because these folks were 6 weeks away.
        Over 1,000 soldiers and their families will lose TRICARE in
    4 days, 4 days from today. A hundred and forty-two of the
    soldiers that re-enlisted, re-enlisted and/or offered bonuses
    because they were going on a deployment. So they are being
    terminated. Then they are going to be asked to re-enlist, but
    there will be no bonus included with them as they do.
        Sixty of the soldiers left their employment. Others were
    denied a job due to the short time between and the mobilization
    date where they could not get a job. Some went back and their
    employer had already hired and were training a replacement for
    them. A number had terminated housing leases.
        We have no objection in Indiana to doing our share, to
    taking our share of the hit, but this is over and above what
    took place. What we are asking for is just a--it is not much.
    In terms of the pain and the suffering that these families are
    going through, it is next to nothing. But this is the Hoosier
    way. They said, look, we are willing to take a shot. We are
    willing to stand up for our country and help out and reduce
    costs. Can you help us with a couple of things? Number one,
    continue the bonus that they were promised. That is not much.
    It is a $500 a month bonus. It is the total of less than $1
    million at the end of the day. Enable these soldiers to have
    180 days of additional TRICARE because in 4 days, they are off
    of TRICARE. These are minimal things that are really, in my
    mind, keeping our promise.
        I spoke to Secretary Hagel and one of the things he has
    always said, people are central to everything we do. Well, it
    is time for us to show that in this case. I would like a
    comment from any of you.
        Ms. Wright. Sir, I understand completely. My last job was
    adjutant general of Pennsylvania, so I know General Umbarger
    very well, and know----
        Senator Donnelly. He is not in a good mood.
        Ms. Wright. No. I can only imagine. I have spoken to him. I
    know Marty, and rightly he should not be in a good mood. This
    was done for financial reasons, but we need to take care of the
    soldiers that it was done to.
        I know that the Army is working through the Guard Bureau
    with General Umbarger. There is a group of those soldiers that
    were catastrophically harmed because of this. There are some of
    those soldiers that may think this is okay. There are people in
    all categories. But our job is to take a look at all of the
    requests that you gave Secretary Hagel and to get back to you
    about where we go from here and how we can affect these
    soldiers' lives for the betterment.
        Senator Donnelly. I am here to try to make sure that this
    is made right because what was done is not.
        Ms. Wright. Yes, sir, and I know how terribly difficult it
    was not only on the soldier because it was very hard on the
    soldier, but on the family members of these soldiers.
        Senator Donnelly. Okay. We will stay in very close contact
    with you on that.
        Ms. Wright. Yes, sir. Thank you.
        Senator Donnelly. Thank you. Thank you, Madam Chairman.
        Senator Gillibrand. Thank you very much, each of you, for
    your service and your testimony. If any of the senators have a
    second round, we will permit it now. Otherwise, we will go to
    the next panel.
        Senator Kaine?
        Senator Kaine. Just one question, Mr. Wightman, on Guard
    and Reserve issues, really a comment more than a question. I
    imagine the manpower, as you are dealing with a time of tough
    resources, some of the manpower issues you are having to
    decide, the Guards, and we all relied on them so heavily as
    governors, they were primarily a Reserve Force. Then we built
    them up into essentially an operational tempo (OPTEMPO) force.
    As Iraq and Afghanistan are drawing down, some of the occasion
    for the OPTEMPO will drop.
        Nevertheless, that training is such good training to have
    in the system right now. So as you are wrestling with manpower
    questions, what do you do with your Active Duty component? That
    has a cost. Might it be better to maintain a big chunk of your
    guard at an OPTEMPO type training? That may be a more cost
    effective way to do it.
        I am curious as to how you wrestle with those kinds of
    manpower challenges. In particular, with respect to the Guard,
    is there an intention to go back to the old days, to have the
    Guard be a Reserve, primarily a Reserve Force, or is there, as
    part of the DOD strategy going forward, is the sense that we
    ought to keep the Guard, continue to harvest the value of that
    training and keep it in a component where there is an OPTEMPO
    capacity there that may obviate the need for some of the
    manpower or training over on the active side?
        Mr. Wightman. Thank you for that question. It is a very
    difficult situation, as you said, when you have men and women
    who have been out there over the last 10 to 11 years and have
    acquired the skills and got to the level that they have, to be
    told that they are going to be on a shelf.
        As you heard from our opening comments, our position is
    that the intention is not to use them simply as a strategic
    reserve, that we still want to keep them as a part of the
    operational force, and we still strive to push that as much as
    we can.
        Now, along those lines, there are three or four studies
    going on within the building, and you heard Secretary Hagel the
    other day talk about when somebody asked him about the Active
    component, Reserve component mix, he said, hang on, that was
    just one of many factors. Then he went through general purpose,
    Special Operations Forces. We have to look at that mix. We have
    to look at the mix of conventional and unconventional, and then
    we also have to look at the capability of our allies. So all of
    this weaves in, in addition to whether or not they are forward
    stationed, or rotationally deployed, or home site. So all of
    this is sort of underway in the building at this time.
        As you probably are also aware, there are several costing
    studies going on, and Chairman Arnold Punaro of the Reserve
    Forces Policy Board has a cost methodology study. In fact, he
    is briefing it to Representative Walls right now. So there is
    that one.
        There is one that we are doing as well. Arnold is looking
    at the individual cost of Reserve versus Active. The Cost
    Assessment and Program Evaluation folks over there are looking
    at more of a unit in the course of a year, how much it costs to
    maintain a unit. Then ours is sort of a mixture, and we are
    looking at different alternatives to come out of that in terms
    of costing.
        So I guess my answer to your question is, there is a lot
    going on. I think the sentiment from my superiors in the
    building is that, yes, we need to maintain the Reserve
    component, maybe at a lesser OPTEMPO, but certainly keep them a
    part of that operational force.
        Senator Kaine. Thank you.
        Senator Gillibrand. Thank you, members of the panel. We
    appreciate your testimony very much.
        We will now turn to the second panel. The second panel, we
    have members of The Military Coalition (TMC), a consortium of
    nationally prominent uniformed service and veteran
    organizations.
        Master Chief, Retired, Joseph L. Barnes, is the National
    Executive Director, Fleet Reserve Association (FRA). Ms.
    Kathleen Moakler is the Government Relations Director, National
    Military Family Association. Colonel, Retired, Steven P.
    Strobridge is the Director of Government Relations, Military
    Officers Association of America (MOAA). Captain, Retired,
    Marshall Hanson is the Director, Legislative and Military
    Policy, Reserve Officer's Association (ROA).
        Before you give your opening statements, I do want to
    recognize Mr. Barnes and Mr. Strobridge, both of whom will be
    retiring soon. You have both appeared before this subcommittee
    numerous times, and the staff informs me that this is quite
    likely the last time that you will come before us. I want to
    publicly thank you for your service in uniform and your service
    in support of those in uniform in your second careers.
        Mr. Barnes spent over 20 years in the Navy before retiring
    as master chief, and then served another 20 years with the FRA.
    Mr. Strobridge served 24 years in the Air Force, retiring as
    colonel, and then spent another 19 years at the MOAA.
        You have served the men and women of the armed services
    well in your time at FRA and MOAA. I thank you for your service
    and wish you well in retirement.
        I now invite you to present your opening statements, but
    ask that you keep your oral statement to 3 to 5 minutes. Yes,
    Mr. Strobridge, please.

    STATEMENT OF COL. STEVEN P. STROBRIDGE, USAF, RETIRED, DIRECTOR
       OF GOVERNMENT RELATIONS, MILITARY OFFICERS ASSOCIATION OF
                                AMERICA

        Colonel Strobridge. Madam Chairman, distinguished members
    of the subcommittee, we are grateful for the subcommittee's
    longstanding efforts to ensure fair treatment for the entire
    uniformed services community. We deeply appreciate this
    opportunity to present our views on the personnel related
    issues. My portion of the statement will cover health care.
        The coalition disagrees strongly with the budget proposal
    to shift billions more cost to beneficiaries. Claims of
    exploding military health care costs cite growth since 2001 as
    if that were a reasonable starting point, but it is not.
    Congress enacted TRICARE For Life in 2001 to correct the
    ejection of older retirees from military health care in the 6
    years before that. There was a spike as they returned to
    coverage in 2002 and 2003, but the cost growth has actually
    been declining ever since. It was less than 1 percent growth in
    2012, and will likely decline in 2013 because of recently
    approved fee increases and benefit changes directed by this
    subcommittee and also implemented by DOD.
        So the exploding cost claim is actually based on a 10-year
    old data point. The truth is combined personnel and health
    costs are the same share of the defense budget, a little less
    than one-third, that they have been for the last 30 plus years.
    In fact, DOD has used the health accounts as a cash cow to fund
    other needs: diverting $700 million in surplus funds last year
    and $2.5 billion over the last 3 years.
        I want to make it clear that the TRICARE benefit is by and
    large an excellent one. We certainly recognize that. But it has
    to be to help induce large numbers of top quality people to
    accept the extraordinary demands and sacrifices inherent in
    multi-decade military careers. That is why assertions that
    military retirees pay far less for health care than civilians
    do are so aggravating to the military community.
        When someone gives me that argument, I ask if the military
    deal is so great, are you willing to pay what they did to earn
    it? Would you sign up to spend the next 20 years being deployed
    to Iraq, Afghanistan, or wherever the next fight is? That is
    when people realize military people already pay far steeper
    premiums for health care than any civilian, and most of it is
    paid in kind, not in cash.
        That is why when Congress enacted TRICARE For Life in 2001,
    it required no cash enrollment fee. Defense leaders say they
    will keep faith with the currently serving on retirement
    reform, and would apply any retirement changes only to new
    entrants. But if it is breaking faith to change the rules for
    someone with 10 years or even 1 year of service, it is doubly
    so to impose a four-figure TRICARE fee hike on those who
    already completed 20 or 30 years, whether they will retire next
    year, or whether they are already retired.
        After retirees kept their part of the bargain, defense
    leaders, in effect, are saying their service is no longer worth
    so much as they were told it would be. They should pony up
    another $1,000 or $2,000 each year for the rest of their lives.
    They blame the budget crunch, but balk at changes to make the
    system more efficient.
        Many studies document the inefficiencies of DOD's
    fragmented health systems, but DOD's recent review made minimal
    changes, in part because one of the key decision criteria was
    how hard change would be. So the first choice was to make
    retirees pay more because it was easier.
        There is still no single point of responsibility for
    budgeting or delivery of DOD health care. As for the plan to
    means test retiree health fees, that is patent discrimination
    against the military. No other Federal retiree has their health
    benefits means tested, and it is rare in the civilian world.
    Under that perverse system, the longer and more successful you
    serve, the worse your benefits are. The coalition believes that
    proposed rates are significantly too high for all grades.
        We have worked with this subcommittee and its House
    counterpart for years to put what we think are reasonable
    standards in law for health fees and other benefits. We now
    have statutory rules and guidelines, not only for the fee
    levels, but for future adjustments that were put into law only
    5 months ago. Now DOD wants to go change those again.
        We have accepted mail-order refill requirements into high
    pharmacy co-pays. We accept higher rates for TRICARE prime,
    higher co-pays for pharmacy co-pays, and statutory adjustments
    to future increases. This year, DOD will drop nearly 170,000
    beneficiaries from TRICARE prime. All those changes will save
    DOD billions of dollars. Now, we think it is time to hold DOD
    leaders accountable for developing management efficiencies that
    do not impact beneficiary fees or delivery of quality care.
        That concludes my statement. Thank you very much for your
    consideration.
        [The prepared statement of The Military Coalition follows:]

                  Prepared Statement by the Military Coalition

        Madam chair and distinguished members of the subcommittee, on
    behalf of The Military Coalition (TMC), a consortium of nationally
    prominent uniformed services and veterans' organizations, we are
    grateful to the committee for this opportunity to express our views
    concerning issues affecting the uniformed services community. This
    statement for the record provides the collective views of the following
    military and veterans' organizations, which represent approximately 5.5
    million current and former members of the 7 uniformed services, plus
    their families and survivors.

             Air Force Association
             Air Force Sergeants Association
             Air Force Women Officers Associated
             AMVETS (American Veterans)
             Army Aviation Association of America
             Association of Military Surgeons of the United States
             Association of the U.S. Army
             Association of the U.S. Navy
             Chief Warrant Officer and Warrant Officer Association, U.S.
            Coast Guard
             Commissioned Officers Association of the U.S. Public Health
            Service, Inc.
             Fleet Reserve Association
             Gold Star Wives of America, Inc.
             Iraq and Afghanistan Veterans of America
             Jewish War Veterans of the United States of America
             Marine Corps League
             Marine Corps Reserve Association
             Military Chaplains Association of the United States of America
             Military Officers Association of America
             Military Order of the Purple Heart
             National Association for Uniformed Services
             National Guard Association of the United States
             National Military Family Association
             Naval Enlisted Reserve Association
             Noncommissioned Officers Association
             Reserve Officers Association
             Society of Medical Consultants to the Armed Forces
             The Retired Enlisted Association
             U.S. Army Warrant Officers Association
             U.S. Coast Guard Chief Petty Officers Association
             Veterans of Foreign Wars
             Vietnam Veterans of America
             Wounded Warrior Project

        The Military Coalition, Inc. does not receive any grants or
    contracts from the Federal Government.

                               Executive Summary

             MILITARY PERSONNEL AND HEALTHCARE COSTS IN PERSPECTIVE

        For decades, critics have claimed military personnel costs are
    ``rising out of control'' and, if left unchecked, would consume future
    defense budgets. But those charges have proved unfounded.

             Defense spending as a percentage of GDP during wartime
            is much lower than during past conflicts
             Personnel and healthcare costs today are the same
            share of the defense budget today (less than one-third) that
            they've been for more than 30 years
             Personnel/health costs are a lower share of the budget
            for DOD than for many most-similar corporations (61 percent for
            UPS, 43 percent for FedEx, and 31+ percent for Southwest
            Airlines)
             At 10 percent of the defense budget, DOD healthcare
            costs are a bargain compared to the health cost share of the
            Federal budget (23 percent), the average State budget (22
            percent), household discretionary spending (16 percent) and GDP
            (16 percent)
             Far from ``exploding out of control,'' Pentagon
            documents show military healthcare account surpluses have been
            raided to fund other programs ($708 million diverted in fiscal
            year 2012 and total of nearly $2.5 billion over last 3 years)
             Reprogramming document acknowledged retiree health
            costs went down 2.5 percent for fiscal year 2012
             DOD projections of future defense health care costs
            have declined steadily for the last 3 years, and will decline
            further based on recent law/policy changes
             Claims of ``cost growth since 2001'' overemphasize 10-
            year-old data. Growth peaked in 2002-2003 with the enactment of
            TRICARE For Life, and has been declining fairly steadily ever
            since. It was less than 1 percent for fiscal year 2012, and
            will decline further in the future based on administrative and
            statutory changes taking effect in fiscal year 2013
             Rather than seeking to raise beneficiary costs,
            defense leaders should be held accountable for improving
            efficiency and consolidating redundant, counterproductive
            health systems. Options to reduce costs include:
             Establish a single authority over the three separate
            military systems and multiple contractors that now compete
            counterproductively for budget share
             Stop ignoring multiple studies urging consolidation of
            healthcare budget and delivery
             Revamp an archaic healthcare contracting system that
            doesn't obtain the best value
             Restructure accounting and record systems that cannot
            be validated
             Optimize use of military treatment facilities (25
            percent cheaper but 27 percent underused)
             Eliminate pre-authorization requirement that
            incentivizes emergency room visits over far-less-costly urgent
            care clinics
             Establish coordinated care programs for all
            beneficiaries with chronic conditions
             Decades of dire predictions about ``unaffordable''
            personnel costs have proved consistently wrong
             The only times the All-Volunteer Force has been
            jeopardized have been due to budget-driven benefit cuts failed
            to offset the extraordinary demands and sacrifices of a service
            career
             Congress has consistently recognized the cost of
            sustaining the current military career incentive package is far
            more acceptable and affordable than the alternative
             For all of these reasons, TMC does not support the
            additional array of proposed TRICARE fee increases proposed in
            the fiscal year 2014 defense budget. In view of fee increases
            and statutory and policy benefit limitations already imposed in
            2011 and 2012, TMC believes it is time to hold Defense
            officials accountable to implement efficiencies that don't
            affect fees or care.

                            CURRENTLY SERVING ISSUES

    Force Levels
             Ensure adequate personnel strengths and associated
            funding in order to meet national security strategy
            requirements and dwell time needs.

    Compensation
             Sustain fully-comparable annual military pay raises
            (1.8 percent for 2014) based on the Employment Cost Index as
            specified in current law.

    Family Readiness and Base Support
             Ensure sustainment of Family Readiness and Support
            programs and base facilities
             Continue support for child care needs of the highly
            deployable, operational total force community
             Press the Defense Department to implement flexible
            spending accounts to enable military families to pay health
            care and child care expenses with pre-tax dollars
             Maintain much-needed supplemental funding authority
            for schools impacted by large populations of military students
             Encourage greater military spouse and surviving spouse
            educational and career opportunities, and ensure existing
            programs are accessible, effective, and meet the needs of all
            military spouses
             Direct a DOD report on Family Support and Readiness
            programs as well as MWR category programs to include a list of
            all programs, an assessment of their effectiveness, and
            recommended policy changes

    DOD Resale Operations
             Oppose attempts to consolidate or curtail DOD resale
            systems in ways that would reduce their value to patrons
             Sustain necessary appropriated funds to support the
            commissary system and military exchanges

    Military Sexual Trauma
             Sustain rigorous oversight to ensure the health,
            safety, readiness, and confidentiality of military personnel
            who have been victims of sexual assault.

                               HEALTHCARE ISSUES

    Service vs. Beneficiary Needs
             Hold Defense leaders accountable for their own
            leadership, oversight, and efficiency failures instead of
            simply seeking to shift more costs to beneficiaries
             DOD to pursue any and all options to improve efficient
            and cost-effective care delivery in ways that do not
            disadvantage beneficiaries

    Military vs. Civilian Cash Fees Is ``Apple to Orange'' Comparison
             Reject simple comparisons of military-to-civilian cash
            healthcare fees as grossly devaluing career servicemembers' and
            families' extraordinarily steep nonmonetary contributions
            through decades of service and sacrifice.

    DOD-VA Oversight, Accountability and Integration
             Appoint the Deputy Secretaries of DOD and VA as co-
            chairs of the Joint Executive Council (JEC)
             Hold joint hearings with the Veterans Affairs
            Committee addressing the Joint Executive Council's (JEC)
            effectiveness in daily oversight, management, collaboration,
            and coordination of the Departments' wounded warrior programs
             Continue to press for creation and implementation of a
            joint, bi-directional electronic medical record
             Provide permanent funding, staffing, and
            accountability for congressionally mandated Defense Centers of
            Excellence and associated mental-behavioral health, suicide
            prevention, alcohol and substance abuse, caregiver, respite,
            and other medical and non-medical programs
             Continue aggressive oversight of the Integrated
            Disability Evaluation and legacy disability evaluations systems
            to ensure preservation of the 30-percent threshold for medical
            retirement, consistency and uniformity of policies, ratings,
            legal assistance, benefits, and transitional services Defense-
            wide
             Standardize terminology, definitions, eligibility
            criteria, roles and responsibilities around policies, programs,
            services, and administration of medical and non-medical support
            (e.g., recovering warrior categories, all categories of case
            managers, caregiver support and benefits, power of attorney,
            and a comprehensive recovery plan)
             Standardize the coordination of DOD-VA care, treatment
            and benefits of all Departments' case management programs, and
            medical and non-medical programs and services

    Continuity of Health Care
             Secure the same level of payments, support and
            benefits for all uniformed services' wounded, ill, or injured
            in the line of duty
             Create a standardized curriculum and training programs
            for all DOD-VA mental-behavioral health providers and
            educational institutions in the diagnosis and treatment of PTS/
            PTSD/TBI
             Increase and improve the quality and timeliness of
            access to initial and follow-on appointments, treatment and
            services in DOD-VA systems, ensuring seamless transition of
            mental-behavioral health services are maintained for wounded,
            ill, and injured, their families and caregivers across the
            Departments
             Ensure Guard and Reserve members have adequate access
            and treatment in the DOD and VA health systems for Post-
            Traumatic Stress Disorder and Traumatic Brain Injury following
            separation from active duty service in a theatre of operations

    Mental Health Care Engagement and Destigmatization
             Continue efforts to promote engagement in and
            destigmatization of mental health care
             Continue to press for research on most effective
            treatments, coordination of programs, and measures of efficacy.

    DOD-VA Integrated Disability Evaluation/Legacy Systems (IDES)
             Preserve the statutory 30 percent disability threshold
            for medical retirement in order to provide lifetime TRICARE
            coverage for those who are injured while on active duty
             Reform the DOD disability retirement system to require
            inclusion of all unfitting conditions and accepting the VA's
            ``service-connected'' rating
             Ensure any restructure of the DOD and VA disability
            and compensation systems does not inadvertently reduce
            compensation levels for disabled servicemembers
             Eliminate distinctions between disabilities incurred
            in combat vs. non-combat when determining benefits eligibility
            for retirement
             Tightening the Integrated Disability Evaluation System
            (IDES) (as recommended by the Recovering Warrior Task Force
            (RWTF)) to include:

                     Create a ``joint'' formal physical evaluation
                    board in order to standardize disability ratings by
                    each of the Services
                     Mandate in policy that all servicemembers
                    entering into a Medical Evaluation Board (MEB) be
                    contacted by the MEB outreach lawyer to help navigate
                    the board process upon notification that a narrative
                    summary will be completed

             Pursue improvements in identifying and properly
            boarding (medical evaluation and physical evaluation boards)
            Guard and Reserve members (to include the IRR) who have been
            wounded or incurred injuries or illnesses while activated but
            have had their conditions manifest or worsen post deactivation
            such as establishing policies that allow for the rapid issuance
            of title 10 orders to affected Reserve component (as
            recommended by the RWTF)
             Seek legislation to eliminate legacy DES so that that
            servicemembers who are placed on the Temporary Disability
            Retirement List (TDRL) are afforded the opportunity to have the
            VA rate their disability by the IDES upon their removal from
            the TDRL
             Revise the VA schedule for rating disabilities (VASRD)
            to improve the care and treatment of those wounded, ill, and
            injured, especially those diagnosed with PTSD and TBI
             Bar the designation of disabling conditions as
            ``existing prior to service'' for servicemembers who have been
            deployed to a combat zone

    Caregiver/Family Support Services
             Ensure wounded, ill, and injured families and
            caregivers are an integral part of the rehabilitation and
            recovery team and be included in and educated about medical
            care and treatment, disability evaluation system processes,
            development and implementation of the comprehensive recovery
            plan, and receive DOD-VA support and guidance throughout the
            process
             Provide enhanced training of DOD and VA medical and
            support staff on the vital importance of involving and
            informing designated caregivers in treatment of and
            communication with severely wounded, ill, and injured personnel
             Provide health and respite care for non-dependent
            caregivers (e.g., parents and siblings) who have had to
            sacrifice their own employment and health coverage while the
            injured member remains on active duty, commensurate with what
            the VA authorizes for eligible caregivers of medically retired
            or separated members
             Ensure consistency of DOD and VA caregiver benefits to
            ensure seamless transition from DOD to VA programs
             Extend eligibility for residence in on-base housing
            for up to 1 year for medically retired and severely wounded,
            ill, and injured members and their families, or until the
            servicemember receives a VA disability rating, whichever is
            longer

    Guard and Reserve Health Care
             Authorize TRICARE for early Reserve retirees who are
            in receipt of retired pay prior to age 60
             Authorize premium-based TRICARE coverage for members
            of the Individual Ready Reserve after being called to active
            service for a cumulative period of at least 12 months
             Permit employers to pay TRS premiums for reservist-
            employees as a bottom-line incentive for hiring and retaining
            them
             Authorize an option for the government to subsidize
            continuation of a civilian employer's family coverage during
            periods of activation, similar to FEHBP coverage for activated
            Guard-Reserve employees of Federal agencies
             Extend corrective dental care following return from a
            call-up to ensure G-R members meet dental readiness standards
             Allow eligibility in Continued Health Care Benefits
            Program for selected reservists who are voluntarily separating
            and subject to disenrollment from TRS
             Allow beneficiaries of the FEHBP who are Selected
            reservists the option of participating in TRICARE Reserve
            Select
             Improve the pre- and post-deployment health assessment
            program to address a range of mental/behavioral health issues
            such as substance abuse and suicide
             Allow for access to a full range of evidenced-based
            care and services for Reserve component members and their
            families, particularly during periods of reintegration back
            into the community

    Special Needs Families
             Authorize ABA coverage as a permanent benefit under
            the TRICARE basic program;
             Include eligibility to other developmental
            disabilities that may benefit from ABA;
             Ensure permanent funding for this critical therapy;
            and
             Ensure any further adjustments to TRICARE eligibility
            apply equally to all seven uniformed services.

    Additional TRICARE Prime Issues
             Authorize beneficiaries affected by Prime Service Area
            changes to be grandfathered in their present arrangement until
            they either relocate or change their current primary care
            provider
             Require reports from DOD and the managed care support
            contractors on actions being taken to ensure those affected by
            the Prime Service Area reductions will be able to maintain
            continuity of care from their existing provider or receive an
            adequate selection of new potential providers
             Require increased DOD efforts to ensure electronic
            health record consistency between MTFs and purchased care
            sectors and provide beneficiaries with information to assist in
            informed decisionmaking

    Additional TRICARE Standard Issues
             Bar any further increase in the TRICARE Standard
            inpatient copay for the foreseeable future
             Insist on immediate delivery of an adequacy threshold
            for provider participation, below which additional action is
            required to improve such participation to meet the threshold
             Require a specific report on provider participation
            adequacy in the localities where Prime Service Areas will be
            discontinued under the new TRICARE contracts
             Increase locator support to TRICARE Standard
            beneficiaries seeking providers who will accept new Standard
            patients, particularly for primary care and mental health
            specialties

                       NATIONAL GUARD AND RESERVE ISSUES

    Operational Reserve Retention and Retirement Reform
             Eliminate the fiscal year limitation which effectively
            denies full early retirement credit for active duty tours that
            span the start of a fiscal year (October 1)
             Modernize the Reserve retirement system to incentivize
            continued service beyond 20 years and provide fair recognition
            of increased requirements for active duty service
             Authorize early retirement credit for all active duty
            tours of at least 90 days, retroactive to September 11, 2001

    Yellow Ribbon Reintegration Program
             Immediately implement the 2-year pilot for providing
            TAP services `outside the gate' of active duty bases and
            broader expansion as soon as possible.
             Hold oversight hearings and direct additional
            improvements in coordination, collaboration and consistency of
            Yellow Ribbon services between States.

    Reserve Compensation System
             Credit all inactive duty training points earned
            annually toward Reserve retirement
             Authorize parity in special incentive pay for career
            enlisted/officer special aviation incentive pay, diving special
            duty pay, and pro-pay for Reserve component medical
            professionals
             Authorize recalculation of retirement points after 1
            year of activation

                     The 2010 NDAA authorized certain flag officers
                    to recalculate retirement pay after 1 year of active
                    duty, and we recommend this authority be extended to
                    all ranks

    Guard/Reserve GI Bill
             Work with the Veterans Affairs Committee to restore
            basic Reserve Montgomery GI Bill benefits for initially joining
            the Selected Reserve to the historic benchmark of 47-50 percent
            of the active duty MGIB
             Integrate Reserve MGIB benefits currently in title 10
            with active duty veteran educational benefit programs under
            title 38
             Enact academic protections for mobilized Guard and
            Reserve students, including refund guarantees

    Guard/Reserve Family Support Programs
             Review the adequacy of programs to meet the special
            information and support needs of families of individual Reserve
            augmentees or those who are geographically dispersed
             Foster programs among military and community leaders
            to support servicemembers and families during all phases of
            deployments
             Provide preventive counseling services for
            servicemembers and families
             Authorize child care for family readiness group
            meetings and drill time and respite care during deployments
             Improve the joint family readiness program to
            facilitate understanding and sharing of information between all
            family members

                                 RETIREE ISSUES

    Military Retirement Reform
             Oppose any initiative that would ``civilianize'' the
            military retirement system, ignore the lessons of the ill-fated
            REDUX initiative, and inadequately recognize the unique and
            extraordinary demands and sacrifices inherent in a military
            career.

    Cost-of-Living Adjustments (COLAs)
             Reject the chained CPI as a basis for adjusting
            military retired pay
             Ensure the continued fulfillment of congressional COLA
            intent, as expressed in House National Security Committee Print
            of title 37, U.S.C.: ``to provide every military retired member
            the same purchasing power of the retired pay to which he was
            entitled at the time of retirement [and ensure it is] not, at
            any time in the future . . . eroded by subsequent increases in
            consumer prices''
             Ensure equal treatment of all uniformed service
            personnel, to include NOAA/USPHS/USCG personnel, with respect
            to any retirement/COLA legislation

    Concurrent Receipt
             Continue seeking to expand Concurrent Retirement and
            Disability Payments (CRDP) to disabled retirees not eligible
            under the current statute, with first priority for vesting of
            earned retirement credit for Chapter 61 retirees with less than
            20 years of service.

    Fair Treatment for Servicemembers Affected by Force Reductions
             Enact temporary legislation that would allow members
            separated during periods of significant force reductions to
            deposit part or all of their involuntary separation pay or
            voluntary separation pay into their TSP account.

                                SURVIVOR ISSUES

    SBP-DIC Offset
             Continue pursuing ways to repeal the SBP-DIC offset
             Authorize SBP annuities to be placed into a Special
            Needs Trust for permanently disabled survivors who otherwise
            lose eligibility for State programs because of means testing
             Reduce the age for paid-up SBP to age 67 for those who
            joined the military at age 17, 18, or 19
             Reinstate SBP annuities to survivors who transfer
            benefits to their children when the children reach majority, or
            when a subsequent remarriage ends in death or divorce

    Final Retired Paycheck
             Authorize survivors of retired members to retain the
            final month's retired pay for the month in which the retiree
            dies.

                                  INTRODUCTION

        Mr. Chairman, The Military Coalition thanks you and the entire
    subcommittee for your exceptionally strong support of our Active Duty,
    Guard, Reserve, retired members, and veterans of the uniformed
    services, their families and survivors. Your efforts have had an
    enormously positive impact in the lives of the entire uniformed
    services community.
        We specifically wish to thank the committee for its good actions in
    adopting the 2012 NDAA provisions recognizing that healthcare is an
    earned benefit for service rendered during a lengthy career and in
    securing more reasonable TRICARE pharmacy co-pay adjustments.
        We are truly grateful for your unwavering commitment to men and
    women who defend our fine nation.
        We appreciate that personnel issues have been a top priority for
    Congress in the past few years. There have been difficult choices
    associated with bolstering a weak economy and addressing record-
    breaking budget deficits. The past few years have been exceptionally
    arduous, with our military winding down operations in Afghanistan.
        Despite extraordinary demands, men and women in uniform are still
    answering the call--thanks in no small measure to the subcommittee's
    strong and consistent support--but only at the cost of ever-greater
    personal sacrifices. We have seen dramatic increases in suicide rates
    which reflect the continued stress placed on servicemembers and their
    families. In addition, there are reports that the military divorce
    rates are at the highest level since 1999.

                MILITARY PERSONNEL AND HEALTHCARE COST OVERVIEW

        For decades, critics have claimed military personnel costs are
    ``rising out of control'' and, if left unchecked, would ``consume
    future defense budgets.'' They've attacked pay, retirement, health
    care, and other military benefits in hopes of diverting funds to
    hardware or non-defense programs.
        But hard experience proved such claims wrong in the past--and
    they're still wrong today.
    Check the Record, Not Misleading Projections
        Over the past 50 years, the defense budget has consumed a
    progressively smaller share of Federal outlays.
        In 1962, defense consumed nearly 47 percent of Federal outlays;
    today it's at its smallest share in 50 years and will drop further--
    below 12.5 percent--by 2017.
        Today's wartime share of GDP is lower than for any past conflict,
    as shown in the following chart.

        Some argue that's all the more reason to worry about the rising
    cost of military people programs.
        Last year, Defense and service leaders decried military personnel
    and health costs as consuming about roughly one-third of the defense
    budget--implying this represents a dramatic increase.
        The truth is the same one-third of the defense budget has gone to
    personnel and health care costs for the last 30 years. These programs
    are no more unaffordable now than in the past.

    Who Says One-Third Is Too Much?
        Is it good or bad if these costs are one-third of a big
    organization's annual budget? There's no civilian counterpart to the
    military, but let's consider corporations with big air fleets.
    Personnel costs comprise:

             61 percent of United Parcel Service's budget.
             43 percent of FedEx's budget.
             31 percent of operating revenue (which includes
            profit, so the percentage of expenditures is higher) for
            Southwest Airlines--recognized as among the most cost-efficient
            air carriers.
    Military Health Costs Are NOT ``Eating DOD Alive''
        Defense leaders complain these costs approach 10 percent of the
    (non-war) defense budget.
        But health costs comprise:

             23 percent of the Federal budget
             22 percent of the average State budget
             16 percent of household discretionary spending
             16 percent of U.S. Gross Domestic Product

        Put in proper context, DOD's 10 percent is a bargain.
        In fact, Pentagon documents show DOD has used the military
    healthcare account as a ``cash cow'' to fund other programs.

             Diverted $708 million surplus in fiscal year 2012
             Diverted total of nearly $2.5 billion over fiscal year
            2010-2012
             Fiscal year 2012 reprogramming request acknowledged
            retiree health costs went down 2.5 percent
             Budget projections have reduced outyear cost estimates
            3 years in a row
             Changes included in National Defense Authorization Act
            for Fiscal Year 2013 will reduce them even further

    ``Cost Growth Since 2000/2001'' Is a Red Herring
        Citing such statistics implies personnel/health costs in 2001
    represented a reasonable standard. Nothing could be farther from the
    truth.
        In fact, cutbacks in pay, healthcare, and retirement throughout the
    1980s and 1990s caused retention problems in the late 1990s that
    Congress has worked hard to fix over the last decade.
        Charting growth from a starting point in 2000 or 2001
    inappropriately inflates apparent trends by including one-time changes
    made early last decade that won't be repeated in the future.
        The chart below illustrates how citing health cost growth since
    2001 is misleading. The reality is that cost trends have moderated
    significantly in more recent years, and that is far more important for
    projecting future trends than what happened more than a decade ago.

        The rate of health cost change will only decline further in the
    outyears, due to:

             Significant pharmacy copay increases starting this
            year
             Significant savings from requiring mandatory mail-
            order/military pharmacy refills of maintenance medications for
            Medicare-eligible beneficiaries starting this year
             Savings associated with shrinking TRICARE Prime
            service areas.

        The bottom line: the ``military health cost growth since 2001''
    argument is based on 10-year old data that's irrelevant to the future.
    The Real Health Cost Issue: Inefficiency, Oversight Failures
        Rather than seeking to blame beneficiaries (and raise
    beneficiaries' costs), defense leaders should focus on fulfilling their
    responsibilities to provide efficient oversight of DOD health programs.
        They should be held accountable for correcting real sources of
    excess costs - fixing known problems and consolidating redundant,
    counterproductive health systems.
        Options to reduce excess costs include:

             Establish a single authority over the three separate
            military systems and multiple contractors that now compete
            counterproductively for budget share
             Stop ignoring the plethora of studies since 1947 which
            have consistently recommended the consolidation of medical
            budget oversight and execution
             Revamp an archaic healthcare contracting system which
            doesn't obtain the best value
             Restructure accounting and record systems that cannot
            be validated
             Optimize the use of military treatment facilities,
            which are 25 percent less costly but 27 percent underutilized
             Eliminate pre-authorization requirement that
            incentivizes emergency room visits over far-less-costly urgent
            care clinics
             Establish coordinated care programs for all
            beneficiaries with chronic conditions

        It's important to recognize that the military's healthcare system
    is built for readiness and service convenience, not for the
    beneficiary's needs.
        When the Services deploy or cut medical professionals,
    beneficiaries are forced into costly civilian care. Attempting to shift
    the costs of readiness or inefficiencies onto the beneficiaries is just
    simply wrong.
        For all of these reasons, TMC does not support the additional array
    of proposed TRICARE fee increases proposed in the fiscal year 2014
    defense budget. In view of fee increases and statutory and policy
    benefit limitations already imposed in 2011 and 2012, TMC believes it
    is time to hold Defense officials accountable to implement efficiencies
    that don't affect fees or delivery of quality care.
    Military Retirement: Neither Unfair nor Unaffordable
        Whenever military budgets get tight, analysts, task forces and
    commissions come forth proposing military retirement cutbacks. Past
    defense leaders asserted such efforts were detrimental to retention and
    readiness. In contrast, today's senior defense leaders have voiced
    support for significant changes.
        Former Secretary of Defense Gates criticized the 20-year retirement
    system as ``unfair'' to those who leave service before that point,
    citing the vesting options provided to civilian workers. He directed
    the Defense Business Board (DBB) to identify alternative options.
        In his final appearance before the Senate, Gates endorsed an early
    vesting program, noting, ``70 to 80 percent of the force does not stay
    until retirement but leaves with nothing.''
        Yet there is no support for spending more money on military
    retirement during budget-cutting times. So vesting options proposed to
    date, including those of the DBB and the 11th Quadrennial Review of
    Military Compensation (QRMC)--would fund that new benefit by imposing
    dramatic benefit cuts for the 17 percent who complete full careers in
    uniform.
        There are good reasons only 17 percent of service entrants are
    willing to pursue a military career. The vast majority of Americans are
    unwilling to accept those conditions for even one tour of duty, let
    alone 20 or 30 years.
        Both the DBB and QRMC proposals ignore the hard lessons of previous
    experiences with retirement cuts.
        Budget pressures prompted Congress in 1986 to pass changes reducing
    the 20-year retired pay value by 25 percent for post-1986 entrants.
        At the time, Defense Secretary Caspar Weinberger adamantly opposed
    the so-called ``REDUX'' change, warning Congress it inevitably would
    undermine retention and readiness. That prediction proved true a decade
    later, and Congress repealed REDUX in 1999.
        Stunningly, the cuts to career military retirement benefits
    proposed by both the DBB and QRMC are vastly more severe than the
    retention-killing REDUX cuts.
        The powerful pull of the 20-year retirement system is the main
    reason retention hasn't imploded over the past decade-plus of
    unprecedented wartime strains on troops and families.
        If one tried to build a plan to slash career retention, it's hard
    to conceive a better way than the DBB or QRMC proposals.
        Advocates for these draconian initiatives sugarcoat them by saying
    they wouldn't affect anyone currently serving and would apply only to
    new entrants. But that was true of the REDUX system, and we know how
    that turned out.
        The ``Military Compensation and Retirement Modernization
    Commission'' mandated by the National Defense Authorization Act for
    Fiscal Year 2013 includes a ``grandfather'' clause to exempt currently
    serving personnel from recommended reforms.
        But grandfathering the current force only lets leaders evade
    responsibility for their ill-conceived actions by deferring the
    inevitable retention disaster for a decade and dumping the mess on
    their successors.
        Military retirement critics have claimed for decades the current
    unique plan is unaffordable and unsustainable.
        Almost 35 years ago, the 1978 report of the President's Commission
    on Military Compensation included this extract from the minority report
    of Commissioner Lt. Gen. Benjamin O. Davis Jr., USAF (Ret.):

              ``Unfortunately, the commission has embraced the myth that
            retirement costs will soon rise so high--from $10 billion this
            year to $30 billion in the year 2000--as to become an
            unacceptable and unfair burden on the American taxpayer.
              ``Such assertions fail to point out that by using the same
            assumptions, today's average family income of $10,000 will be
            $36,000 in the year 2000. The average cost of a home will be
            $171,000; a compact automobile will cost $17,000; and the
            overall U.S. budget will have increased from $500 billion to
            some amount in the trillions.''

        Such numbers seem quaint today, but they make two telling points.
        First, long-term projections that now appear dire often prove far
    less so as years pass.
        Second, after budget-driven retirement cuts in 1986 undermined
    retention, Congress found restoring the current system more affordable
    than continued retention and readiness shortfalls.
        DBB leaders acknowledged they didn't consider the potential
    retention effects of their plan.
        During 2012 testimony before Congress, defense witnesses
    acknowledged the DBB proposal would hurt retention--and went a step
    further.
        Dr. Jo Ann Rooney, principal deputy undersecretary for Personnel
    and Readiness, testified the current military retirement system is
    ``neither unaffordable, nor spiraling out of control,'' noting
    retirement costs as a percentage of pay have remained reasonably
    constant.
    Why the Military Requires Unique Incentives for Career Service
        A military career entails unique and arduous service conditions few
    other Americans are willing to endure for 20 to 30 years, including:

             Hazardous duty
             Service in foreign, often hostile environments
             Frequent/extended forced family separations
             Long duty hours without extra pay
             Frequent forced relocations
             Disruption of spousal career/earnings
             Disruption of children's schooling
             Inadequate expense reimbursement
             ``Up or out'' promotion system
             Forced mid-life career change
             Forfeiture of personal freedoms other Americans take
            for granted

    Keeping Faith with the All-Volunteer Force
        No Federal obligation is more important than protecting national
    security. The most important element of national security is
    sustainment of a dedicated, top-quality career military force, but only
    a fraction of 1 percent of our population is willing to endure a single
    term of service, let alone a full career.
        The past decade of unprecedented demands and sacrifices highlight
    how radically different military service conditions are from civilian
    life.
        Yet budget critics persist in asserting military pay, retirement,
    and health care benefits are unsustainable and should be slashed to
    resemble civilian benefit packages.
        Decades of dire predictions about ``unaffordable'' personnel costs
    have proved consistently wrong.
        Existing career incentives have sustained a strong national defense
    through more severe and protracted wartime conditions then even the
    strongest volunteer-force proponents thought it could survive.
        The only times the All-Volunteer Force has been jeopardized have
    been due to budget-driven cutbacks in the military compensation package
    that gave insufficient weight to the extraordinary demands and
    sacrifices inherent in a service career.
        Congress has consistently recognized the cost of sustaining the
    current military career incentive package is far more acceptable and
    affordable than the alternative.
        America will remain the world's greatest power only as long as it
    continues to fulfill its reciprocal obligation to the only weapon
    system that has never let our country down--our extraordinarily
    dedicated, top-quality, all-volunteer career force.
        The coalition offers the following recommendations on what must be
    done to meet this essential obligation.

                            CURRENTLY SERVING ISSUES

    Force Levels
        We are thankful Congress revised the permanent active duty end
    strength minimum levels in the 2013 NDAA and placed an annual
    limitation on end strength reductions for both the Army and Marines.
        We certainly understand why DOD is reducing force levels by 110,000
    as operations wind down in Afghanistan and that the ongoing fiscal
    crisis requires significant budget reductions. However, the coalition's
    believes continued care must be taken to ensure force reductions do not
    create additional burdens on our servicemembers and their families.
        For the last decade, servicemembers and their families have endured
    unprecedented sacrifices often having less than a year at home before
    returning for another year in combat. Both Defense and Service leaders
    have acknowledged that minimum dwell time should be at least 2 years at
    home after a year deployment. Stress indicators are alarming as we see
    increases in divorces, suicide rates, and other symptoms. Moreover the
    minimum dwell time goal has yet to be attained for all deploying
    servicemembers.
        Concurrently, we believe that the Nation needs to sustain a surge
    capacity for unexpected contingencies and retaining combat experience
    by encouraging departing veterans to join the Guard and Reserve. On
    September 10, 2001 no one in Washington anticipated the following
    decade would find us engaged in two major and protracted wars.
        Cutting Guard/Reserve Forces as well as Active Forces will make
    achieving these goals even more difficult.
        Additionally, providing a competitive compensation and benefits
    package is essential for recruiting and maintaining a quality All-
    Volunteer Force. Funding needed military schools and indexed housing
    allowances and support services are powerful incentives for retaining
    skilled and experienced personnel, a concern we all share in dealing
    with an extended national crisis.
        The coalition urges the subcommittee to ensure adequate personnel
    strengths and associated funding in order to meet national security
    strategy requirements and dwell time needs.

    Compensation
        The coalition was pleased that Congress approved an active duty 1.7
    percent pay raise in the 2013 NDAA which reflected the growth in
    private sector pay, as measured by the Bureau of Labor Statistics'
    Employment Cost Index (ECI). Congress has made great strides to restore
    military pay comparability over the past 13 years, including a
    statutory change that explicitly ties military pay raises to ECI
    growth.
        However, the coalition is very concerned that many in the
    administration and some Members of Congress are unaware of the history
    of compensation including changes and associated unforeseen outcomes.
    Moreover we are alarmed that some view these vital compensation
    programs as a source of savings without regard to the impact they may
    have on long term readiness in the All-Volunteer Force.
        The coalition is particularly concerned about the administration's
    proposal to cap the 2014 military pay raise at 1 percent, rather than
    matching the ECI-based average American's 1.8 percent raise, as
    required by current law.
        History provides ample evidence that capping military raises is an
    exceptionally slippery slope which has never ended well.
        In the 1970s, a succession of annual pay raise caps contributed to
    serious retention problems which were fixed approving two large
    ``catch-up'' raises in 1981 and 1982. But that lesson was quickly
    forgotten.
        Throughout the 1980s and 1990s, budget problems led to regular
    capping of military pay raises below private sector pay growth,
    eventually accumulating a ``pay comparability gap'' which peaked at
    13.5 percent in 1998-1999, and again contributed significantly to
    serious retention problems.
        Now that erosion of pay and associated retention-related problems
    have abated, there are renewed calls to cut back on military raises,
    create either a new comparability standard, or substitute more bonuses
    for pay raises in the interests of deficit reduction.
        The coalition believes such proposals are exceptionally short-
    sighted in light of the extensive negative past experience with
    military pay raise caps.
        History shows that, once military pay raise caps are implemented,
    the tendency has been to continue them until retention problems arise
    which then have to be addressed through significant pay raise plus-ups.
        The purpose of sustaining pay comparability through both good times
    and bad is to prevent retention and readiness problems from occurring.
    This avoids going through endless cycles of causing problems and then
    repairing them.
        Additionally, the Pentagon has been advocating for a new
    comparability standard under which each pay and longevity cell would
    represent the 70th percentile of compensation for similarly-educated
    civilians.
        A 2010 Congressional Budget Office (CBO) report asserted that,
    considering adjustments in housing allowances, many military people
    actually are paid somewhat more than their civilian counterparts in
    terms of Regular Military Compensation (RMC), composed of basic pay,
    food and housing allowances, and the tax advantage that accrues because
    the allowances are tax-free.
        The coalition believes the CBO assertions are fundamentally flawed
    for three distinct reasons.
        First, the RMC concept was developed in the 1960s, when all
    servicemembers received the same allowances, regardless of location,
    and the allowances were arbitrarily established. Congress has since
    transformed the allowances into reimbursements for actual food costs
    and for median locality-based housing costs. Under the RMC
    comparability concept, a year in which taxes increase and average
    housing allowances rise (e.g., based on growth in high-cost areas)
    could perversely require a cut in basic pay to restore comparability.
        The coalition believes it would be difficult for Congress to
    explain to troops why their pay raises should be reduced because their
    taxes are rising.
        Second, the coalition is not convinced that the civilian comparison
    cohort or percentile comparison points as proposed by DOD are
    appropriate since the military:

             Recruits from the top half of the civilian aptitude
            population;
             Finds that only about 25 percent of America's youth
            qualify for entry;
             Requires career-long education and training
            advancement; and
             Enforces a competitive ``up-or-out'' promotion system
            to ensure progressive quality enhancements among those with
            longer service.

        Third, it is essential to recognize that compensation is not simply
    the amount one is paid. It is pay divided by what's required of the
    recipient to earn that pay. If pay increases 25 percent but 100 percent
    more sacrifice is required to earn it, that's not a pay raise.
        In that context, today's conditions of service are far more arduous
    than anything envisioned 40 years ago when the All-Volunteer Force was
    created. Those creators believed a protracted war would require
    reinstitution of the draft.
        Moreover, a fundamental requirement for any pay comparability
    standard is that it should be transparent and understandable by all.
    The coalition has sought, but has never been provided by DOD, any data
    on what civilian comparison cohort was selected and why, and what
    rationale was used to establish a specific percentile comparison point.
        The coalition agrees with the approach Congress has consistently
    taken--that the best comparability measure is a comparison of the
    military basic pay raise percentage with the percentage growth private
    sector pay, as measured by the Bureau of Labor Statistics' Employment
    Cost Index (ECI). The government uses the ECI for every other measure
    of private pay growth, and it's transparent to government leaders and
    servicemembers alike.
        The coalition urges the subcommittee to sustain fully-comparable
    annual military pay raises (1.8 percent for 2014) based on the ECI as
    specified in current law.

    Family Readiness and Base Support
        A fully funded, robust family readiness program continues to be
    crucial to overall readiness of our military, especially with the
    demands of frequent and extended deployments.
        Resource shortfalls continue to plague basic installation support
    programs. At a time when families are dealing with continuing
    deployments, they often are being asked to do without in other
    important areas.
        Yet the Defense Department has acknowledged that sequestration has
    placed family support programs at even greater risk
        The coalition urges the subcommittee to continue to press the
    Defense Department to exercise its authority to establish flexible
    spending accounts (FSAs) for servicemembers so they can participate in
    the same pre-tax program available to all other Federal employees for
    their out-of-pocket health and dependent care expenses.
        The coalition was especially pleased that the subcommittee secured
    a plus-up in Impact Aid in the 2013 NDAA. Providing appropriate and
    timely funding of Impact Aid is critical to ensuring quality education
    for military children regardless of where they live.
        The coalition urges the subcommittee to:

             Ensure sustainment of Family Readiness and Support
            programs and base facilities
             Continue support for child care needs of the highly
            deployable, operational total force community
             Continue pressing the Defense Department to implement
            flexible spending accounts to enable military families to pay
            health care and child care expenses with pre-tax dollars
             Continue much-needed supplemental funding authority to
            schools impacted by large populations of military students
             Encourage greater military spouse and surviving spouse
            educational and career opportunities, and ensure existing
            programs are accessible, effective, and meeting the needs of
            all military spouses
             Direct a DOD report on Family Support and Readiness
            programs as well as MWR category programs to include a list of
            all programs, an assessment of their effectiveness, and
            recommended policy changes

    DOD Resale Operations
        The Military Coalition strongly believes military commissary,
    exchange and Morale Welfare and Recreation (MWR) programs contribute
    significantly to a strong national defense by sustaining morale and
    quality of life for military beneficiaries both within the United
    States and around the globe.
        The coalition is very concerned about initiatives to curtail
    appropriated fund support for these activities.
        The resale system has proven its efficiency, as the Defense
    Commissary Agency (DeCA) alone has reduced its annual operating costs
    by more than $700 million per year.
        Repeated studies have shown that military commissaries provide $2
    in compensation value to beneficiaries for each $1 of appropriated
    funding. That constitutes a very significant retention ``bang for the
    buck.''
        Initiatives to civilianize commissaries or consolidate commissaries
    and exchanges to achieve budget savings would come only at the expense
    of devaluing their compensation and retention importance value for
    military patrons.
        The coalition urges the subcommittee to:

             Oppose attempts to consolidate or curtail DOD resale
            systems in ways that would reduce their value to patrons
             Sustain necessary appropriated funds to support the
            Commissary and Exchange

    Military Sexual Trauma
        With an estimated 19,000 yearly sexual assaults within the
    military, low rates of report and prosecution, and the negative impact
    of delayed treatment seeking for victims of MST, this is a pressing
    issue. The coaltion is grateful for the subcommittee's positive action
    on these issues.
        Preventing sexual assaults demands the most forceful of efforts.
    DOD has attempted to institute prevention strategies and improve
    response mechanisms, and has reported on its progress. However, as
    Congress recognized in imposing wide-ranging new measures through the
    NDAA for Fiscal Year 2013, DOD has not gone far enough. Ultimately,
    resolving this issue requires a culture change and forceful leadership,
    and ongoing congressional oversight to sustain that effort. Instituting
    policies that encourage and support victims through the reporting
    process would be a first step in combating a culture of complacency.
    Revising the military justice system to hold perpetrators accountable
    would be another.
        Additionally, with few victims of MST reporting their assault,
    screening and treatment are needed areas of improvement. A January 2013
    GAO report on DOD health care for servicewomen found health care for
    victims of MST can vary by service, providers often aren't aware of
    health care services available or what they have a responsibility to
    provide, and DOD has no established guidance for treatment of injuries
    stemming from MST. At a recent Senate Armed Services Committee hearing,
    officials from DOD stated they are working on providing that guidance.
        The coalition urges Congress to sustain rigorous oversight to
    ensure the health, safety, readiness and confidentiality of military
    personnel who have been victims of sexual assault.

                               HEALTH CARE ISSUES

    Service vs. Beneficiary Needs &
        Unlike civilian healthcare systems, the military health system is
    built mainly to meet military readiness requirements rather than to
    deliver needed care efficiently to beneficiaries.
        Each Service maintains its unique facilities and systems to meet
    its unique needs, and its primary mission is to sustain readiness by
    keeping a healthy force and sustaining capacity to treat casualties
    from military actions. That model is built neither for cost efficiency
    nor beneficiary welfare.
        When military forces deploy, the military medical force goes with
    them, and that forces families, retirees and survivors to use the more
    expensive civilian health care system in the absence of so many
    uniformed health care providers. This shift in the venue of care and
    the associated costs are completely out of beneficiary control.
        These military-unique requirements have significantly increased
    readiness costs. But those added costs were incurred for the
    convenience of the military, not for any beneficiary consideration, and
    beneficiaries should not be expected to bear any share of military-
    driven costs--particularly in wartime.
        The coalition strongly rejects Defense leaders' efforts to seek
    dramatic beneficiary cost increases as a first cost-containment option
    rather than meeting their own responsibilities to manage military
    healthcare programs in a more cost-effective manner.
        Instead of imposing higher fees on beneficiaries as the first
    budget option, DOD leaders should be held accountable for the REAL
    source of excess costs: failing to fix/consolidate redundant,
    counterproductive DOD health systems. These failures have added
    billions to defense health costs. Specifically:

             Decades of GAO and other reports demonstrate DOD cost
            accounting systems lack transparency and are unauditable
             No single authority over three separate service health
            systems and multiple contractors that compete for budget share
            in self-defeating ways
             DOD and service leaders ignore 19 studies by GAO, IG,
            and others since 1947, all showing consolidation of policies,
            medical budget oversight and execution would save billions
             A last-century contract system undermines capacity for
            best practices
             Military treatment facilities are 25 percent less
            costly--but 27 percent underutilized
             DOD-sponsored reviews indicate more efficient
            organization could cut health costs 30 percent without
            affecting care or beneficiary costs
             Incentives to providers are not sufficiently based on
            quality-driven clinical outcomes that reward efficiency and
            value
             Referral requirements that add complexity and actually
            inhibit timely delivery of needed and cost-effective care
            should be eliminated (e.g., referral is not required for
            emergency room visits, but is required for acute care
            facilities, leading many TRICARE Prime beneficiaries to
            routinely visit far-more-expensive emergency rooms on weekends
            and evenings)
             Current inflexible appointment systems inhibit
            beneficiary access to care

        These are only some of the examples demonstrating that effective
    leadership, oversight, and reorganization of military healthcare
    delivery could dramatically reduce defense health costs without
    affecting care or costs for beneficiaries.
        The coalition urges the subcommittee to hold Defense leaders
    accountable for their own leadership, oversight, and efficiency
    failures instead of simply seeking to shift more costs to
    beneficiaries. Congress should direct DOD to pursue any and all options
    to improve efficient and cost-effective care delivery in ways that do
    not disadvantage beneficiaries.

    Military vs. Civilian Cash Fees Is ``Apple to Orange'' Comparison
        The coalition continues to object strongly to simple comparisons of
    military vs. civilian cash fees. Such ``apple to orange'' comparisons
    ignore most of the very great price career military members and
    families pay for their coverage in retirement.
        The unique package of military retirement benefits--of which a key
    component is a superior health care benefit--is the primary offset
    provided uniformed servicemembers for enduring a career of unique and
    extraordinary sacrifices that few Americans are willing to accept for 1
    year, let alone 20 or 30. It is an unusual and essential compensation
    package a grateful Nation provides to the small fraction of the
    population who agree to subordinate their personal and family lives to
    protecting our national interests for so many years.
        For all practical purposes, those who wear the uniform of their
    country are enrolled in a 20- to 30-year prepayment plan that must be
    completed to earn lifetime health coverage. Once that prepayment is
    already rendered, the government cannot simply ignore it and focus only
    on post-service cash payments--as if the past service, sacrifice, and
    commitments had no value.
        DOD and the Nation--as good-faith employers of the trusting members
    from whom they demand such extraordinary commitment and sacrifice--have
    a reciprocal health care obligation to retired servicemembers and their
    families and survivors that far exceeds any civilian employers.
        Until a few years ago, this was not a particular matter of concern,
    as no Secretary had previously proposed dramatic fee increases.
        The experience of the recent past--during which several Secretaries
    proposed no increases and then a new Secretary proposed doubling,
    tripling, and quadrupling various fees--has convinced the coalition
    that current law leaves military beneficiaries excessively vulnerable
    to the varying budgetary inclinations of the incumbent Secretary of
    Defense.
        It's true that many private sector employers are choosing to shift
    more healthcare costs to their employees and retirees, and that's
    causing many still-working military retirees to fall back on their
    service-earned TRICARE coverage. Fallout from the recession has
    reinforced this trend.
        Efforts to paint this in a negative light (i.e., implying that
    working-age military retirees with access to civilian employer plans
    should be expected to use those instead of military coverage) belie
    both the service-earned nature of the military coverage and the
    longstanding healthcare promises the government aggressively employed
    to induce their career service.
        The coalition urges the subcommittee to continue to reject simple
    comparisons of military-to-civilian cash healthcare fees as grossly
    devaluing career servicemembers' and families' extraordinarily steep
    nonmonetary contributions through decades of service and sacrifice.

                  WOUNDED, ILL, AND INJURED SERVICEMEMBER CARE

        TMC believes strongly that Active DOD and VA collaboration is not
    only essential to achieving seamless transition, such cooperation is
    also critical to the long-term sustainability of our defense strategy,
    the health and wellness of the All-Volunteer Force and the
    acknowledgement of our country's commitment and moral obligation to the
    long-term care and support for those who served.
        As the military begins implementing its exit strategy in
    Afghanistan, the coalition worries about the stability and viability of
    the policies, programs, and services over the long haul intended to
    care and support our wounded, ill, and injured and their families-
    caregivers.
        Thanks to the subcommittee's efforts, policy, program and service
    enhancements have greatly enhanced system capacities and capabilities.
    Since 2007, every National Defense Authorization Act has built upon
    institutionalizing a seamless, unified and synchronized health systems-
    approach for caring and supporting our wounded heroes and their
    families.
        The coalition commends DOD and VA for the milestones they have
    achieved to make these systems better over the last decade. We believe
    greater progress can be made if the Departments more aggressively
    pursue collaborative partnerships with other government agencies and
    non-government entities to drive down costs, support seamless
    transition efforts, and improve continuity of medical care. Both
    agencies have stated repeatedly that `they can't meet the needs of our
    recovering warriors without the help of outside organizations'--yet,
    DOD and VA continue to remain isolated and closed systems, not drawing
    on or leveraging the very public-private partnerships they say they
    want and need.
        The challenges are many, and the policy and program issues remain
    extremely complex and seemingly difficult to overcome. However, TMC
    believes collaborative efforts of the administration, Congress, the
    Pentagon and Military Services, and VA working together with military
    and veteran organizations and beneficiaries can remove these barriers
    and simplify the systems.

    DOD-VA Oversight, Accountability, and Integration
        Since the Pentagon and VA have relegated responsibility and
    authority to lower levels of the agencies, TMC has seen an expansion of
    uncertainty and confusion as to what the hundreds of wounded, ill, and
    injured programs are doing, what the span of control is over these
    programs, or what the return on investment, efficacy, or effectiveness
    of these program in meeting the needs of a growing population of
    military, veterans and families that are and will be accessing these
    systems of care.
        The limited authority of the Joint Executive Committee (JEC) and
    visibility of these important issues are making it difficult for senior
    official involvement and oversight on these matters and limiting the
    Department's ability to fully establish a synchronized, uniform and
    seamless approach to care and services. Additionally, significant
    changes in the DOD civilian and military leadership and threats of
    significant budget cuts make caring for our wounded warriors more
    critical than ever before.
        While many well-meaning and hard-working military personnel and
    civilians are doing their best to keep pushing progress forward,
    leadership, organization, and mission changes have left many leaders
    frustrated with the process, insufficient resources, and struggling to
    effect needed changes.
        The coalition urges joint hearings by the Armed Services and
    Veterans Affairs Committees to assess the effectiveness of current
    seamless transition oversight efforts and systems and to solicit views
    and recommendations from DOD, VA, the military services, and
    nongovernmental organizations concerning how joint communication,
    cooperation, and oversight could be improved.
        The recent announcement that DOD and VA are backtracking on
    development and implementation of a joint DOD-VA electronic medical
    record is particularly discouraging, given the broad consensus on how
    essential this joint record is to long-term success of seamless
    transition efforts.
        The coalition specifically recommends Congress:

             Appoint the Deputy Secretaries of DOD and VA as co-
            chairs of the Joint Executive Council (JEC)
             Hold joint hearings with the Veterans Affairs
            Committee addressing the Joint Executive Council's (JEC)
            effectiveness in daily oversight, management, collaboration,
            and coordination of the Departments' wounded warrior programs
             Continue to press for creation and implementation of a
            joint, bidirectional electronic medical record
             Provide permanent funding, staffing, and
            accountability for congressionally mandated Defense Centers of
            Excellence and associated mental-behavioral health, suicide
            prevention, alcohol and substance abuse, caregiver, respite,
            and other medical and non-medical programs
             Continue aggressive oversight of the Integrated
            Disability Evaluation and legacy disability evaluations systems
            to ensure preservation of the 30-percent threshold for medical
            retirement, consistency and uniformity of policies, ratings,
            legal assistance, benefits, and transitional services Defense-
            wide
             Standardize terminology, definitions, eligibility
            criteria, roles and responsibilities around policies, programs,
            services, and administration of medical and non-medical support
            (e.g., recovering warrior categories, all categories of case
            managers, caregiver support and benefits, power of attorney,
            and a comprehensive recovery plan)
             Standardize the coordination of DOD-VA care, treatment
            and benefits of all Departments' case management programs, and
            medical and non-medical programs and services

    Continuity of Health Care
        Transitioning between DOD and VA health care systems remains a
    significant and one of the most challenging aspects of the care process
    for wounded warriors and their families. The medical systems continue
    to be overwhelming and confusing to those trying to navigate them,
    especially during times when individuals are experiencing a great deal
    of trauma and uncertainty about what the future holds at the same time
    coping with the realities of their wounds and disabilities. Wounded
    warriors and their families continue to be less satisfied with their
    transition after separation or medical retirement and into longer-term
    care and support in either the military or VA medical systems.
        Additionally, systemic, cultural, and bureaucratic obstacles often
    prevent the servicemember or veteran from receiving the continuity of
    care they need to heal and have productive and a high level of quality
    of life they so desperately need and desire. We hear regularly from
    members who have experienced significant disruptions of care upon
    leaving service, and frustration that many of the essential
    rehabilitation services that were available on active duty are no
    longer available to them in the military health system and/or VA, such
    as behavioral health, cognitive rehabilitation services.
        The coalition urges Congress to:

             Secure the same level of payments, support and
            benefits for all uniformed services' wounded, ill, or injured
            (WII) in the line of duty
             Create a standardized curriculum and training programs
            for all DOD-VA mental-behavioral health providers and
            educational institutions in the diagnosis and treatment of PTS/
            PTSD/TBI
             Increase and improve the quality and timeliness of
            access to initial and follow-on appointments, treatment, and
            services in DOD-VA systems, ensuring seamless transition of
            mental-behavioral health services are maintained for wounded,
            ill, and injured, their families and caregivers across the
            Departments
             Ensure Guard and Reserve members have adequate access
            and treatment in the DOD and VA health systems for Post-
            Traumatic Stress Disorder and Traumatic Brain Injury following
            separation from active duty service in a theatre of operations

    Mental Health Care Engagement and Destigmatization
        The rising suicide rate within the military suggests that a
    majority of servicemembers are not seeking the help they need. Stigma
    and organizational barriers to care are part of the reason why only a
    small proportion of soldiers with psychological problems seek
    professional help. Another deterrent is servicemembers' negative
    perceptions about the utility of mental health care. To reach these
    warriors, greater engagement is key.
        Family support, peer outreach, and community partnerships have been
    explored as methods to better engage servicemembers in needed care. The
    recent Army Task Force on Behavioral Health report acknowledged the
    need to reach out and involve family members. Given the impact of
    family support and strain on warriors' resilience and recovery, more
    must be done to provide needed mental health care to veterans' family
    members. Meeting warriors where they are within the community or
    through peer outreach has been found to be an effective first step in
    engaging warriors in mental health care. DOD should do more to enlist
    these resources as an effective method to get servicemembers to seek
    help.
        DOD and the VA must work collaboratively, not simply to improve
    access to mental health care, but to identify and further research the
    reasons for--and solutions to--warriors' resistance to seeking such
    care. With a high percentage of servicemembers not seeking mental
    health treatment, it is important to ascertain which modalities of
    treatment might be effective. There should be greater investment in
    researching treatment efficacy, so more evidence based treatments can
    be rolled out to provide greater flexibility in mental health care that
    would engage more servicemembers.
        In addition to identifying and resolving reasons warriors often
    don't engage in mental health care, DOD and VA must do more to measure
    what current programs are working. There are a myriad of suicide
    prevention and resiliency programs within the DOD, yet it remains
    unclear how effectiveness is measured or how these programs are
    coordinated to provide real assistance to those in need no matter their
    service, where they are stationed or deployed.
        The Army report on behavioral health highlighted an expanded
    program of behavioral health providers at the brigade level. While
    increasing access to care is an important step in providing needed
    treatment, ensuring efficacy is critical. DOD must be able to measure a
    range of pertinent mental health matters, including timely access,
    patient outcomes, staffing needs, numbers needing or provided
    treatment, provider productivity, and treatment capacity. Greater
    transparency and continued oversight into DOD's mental health care
    operations are starting points for closing gaps in servicemembers'
    mental health treatment.
        The coalition recommends Congress:

             Continue efforts to promote engagement in and
            destigmatization of mental health care
             Continue to press for research on most effective
            treatments, coordination of programs, and measures of efficacy.

    DOD-VA Integrated Disability Evaluation/Legacy Systems (IDES)
        TMC still hears too many emotional stories of ``low-balling''
    disabled servicemembers' disability ratings, or troops separated with
    service-connected conditions not documented or reported in records,
    causing members with significant disabling conditions to be separated
    and turned over to the VA rather than being medically retired--a
    troublesome trend today, especially for those in the Guard and
    Reserves.
        Congress has taken positive steps to address this situation,
    including establishment of the Physical Disability Board of Review
    (PDBR) to give previously separated servicemembers an opportunity to
    appeal too-low disability ratings.
        The DOD-VA IDES pilot has been fully implemented and expanded, and
    is considered to be much more streamlined and non-adversarial, and more
    mechanisms are in place to help members navigate and advocate for the
    member through the process, unlike its legacy system counterpart.
        Unfortunately, some services still use loopholes, such as
    designating disorders as ``existing prior to service,'' even though the
    VA rated the condition as ``service-connected'' and the member was
    deemed fit enough to serve in a combat zone. The coalition believes
    strongly that once we have sent a soldier, sailor, airman, or marine to
    war, the member should be given the benefit of the doubt that any
    condition subsequently found should not be considered as existing prior
    to service.
        The coalition also agrees with the opinion expressed by former
    Secretary Gates that a member forced from service for wartime injuries
    should not be separated, but should be awarded a high enough rating to
    be retired for disability.
        The coalition recommends Congress:

             Preserve the statutory 30 percent disability threshold
            for medical retirement in order to provide lifetime TRICARE
            coverage for those who are injured while on active duty
             Reform the DOD disability retirement system to require
            inclusion of all unfitting conditions and accepting the VA's
            ``service-connected'' rating
             Ensure any restructure of the DOD and VA disability
            and compensation systems does not inadvertently reduce
            compensation levels for disabled servicemembers
             Eliminate distinctions between disabilities incurred
            in combat vs. non-combat when determining benefits eligibility
            for retirement
             Tightening the Integrated Disability Evaluation System
            (IDES) (as recommended by the RWTF) to include:

                     Create a ``joint'' formal physical evaluation
                    board in order to standardize disability ratings by
                    each of the Services
                     Mandate in policy that all servicemembers
                    entering into a Medical Evaluation Board (MEB) be
                    contacted by the MEB outreach lawyer to help navigate
                    the board process upon notification that a narrative
                    summary will be completed

             Pursue improvements in identifying and properly
            boarding (medical evaluation and physical evaluation boards)
            Guard and Reserve members (to include the IRR) who have been
            wounded or incurred injuries or illnesses while activated but
            have had their conditions manifest or worsen post deactivation
            such as establishing policies that allow for the rapid issuance
            of title 10 orders to affected Reserve component (as
            recommended by the RWTF)
             Seek legislation to eliminate legacy DES so that that
            servicemembers who are placed on the Temporary Disability
            Retirement List (TDRL) are afforded the opportunity to have the
            VA rate their disability by the IDES upon their removal from
            the TDRL
             Revise the VA schedule for rating disabilities (VASRD)
            to improve the care and treatment of those wounded, ill, and
            injured, especially those diagnosed with PTSD and TBI
             Bar the designation of disabling conditions as
            ``existing prior to service'' for servicemembers who have been
            deployed to a combat zone

    Caregiver/Family Support Services
        The sad reality is that, for the most severely wounded, ill, or
    injured servicemembers, their family members or other loved ones often
    become their full-time caregiver. Many are forced to give up their
    jobs, homes, and savings to care for their loved one--an incredible and
    overwhelming burden for these individuals to shoulder.
        The coalition believes the government has an obligation to provide
    reasonable compensation and training for such caregivers, who never
    dreamed that their own well-being, careers, and futures would be
    devastated by military-caused injuries to their servicemembers.
        The coalition appreciates the subcommittee's sustained support for
    caregivers and requests additional steps be taken to ensure that
    nondependent caregivers (e.g., parents and siblings) who have had to
    sacrifice their own employment and health coverage are provided health
    and respite care while the injured member remains on active duty,
    commensurate with what the VA authorizes for caregivers of wounded,
    ill, and injured veterans.
        In a similar vein, many wounded or otherwise-disabled members
    experience significant difficulty transitioning to medical retirement
    status. To assist in this process, consideration should be given to
    authorizing medically retired members and their families to remain in
    on-base housing for up to 1 year after retirement, in the same way that
    families are allowed to do when a member dies on active duty.
        Another important care continuity issue for the severely wounded,
    ill, and injured is the failure to keep caregivers of these personnel
    involved in every step of the care and follow-up process, even when
    they have official documentation authorizing them as a caregiver or
    guardian. TMC continues to hear with great frequency, that clinicians
    and administrative staff in military treatment or VA facilities exclude
    caregiver participation, talking only to the injured member or
    excluding them completely in the process.
        Congress, DOD, and the VA have worked to get essential information
    to the wounded, ill, and injured and their caregivers. Similar efforts
    are urgently needed to educate medical providers and administrative
    staff at all levels that the final responsibility for ensuring
    execution of prescribed regimens of care for severely wounded, ill, and
    injured servicemembers typically rests with the caregivers, who must be
    kept involved and informed on all aspects of these members' treatment,
    appointments, and medical evaluations.
        The coalition recommends Congress:

             Ensure wounded, ill, and injured families and
            caregivers are an integral part of the rehabilitation and
            recovery team and be included in and educated about medical
            care and treatment, disability evaluation system processes,
            development and implementation of the comprehensive recovery
            plan, and receive DOD-VA support and guidance throughout the
            process
             Provide enhanced training of DOD and VA medical and
            support staff on the vital importance of involving and
            informing designated caregivers in treatment of and
            communication with severely wounded, ill, and injured personnel
             Provide health and respite care for non-dependent
            caregivers (e.g., parents and siblings) who have had to
            sacrifice their own employment and health coverage while the
            injured member remains on active duty, commensurate with what
            the VA authorizes for eligible caregivers of medically retired
            or separated members
             Ensure consistency of DOD and VA caregiver benefits to
            ensure seamless transition from DOD to VA programs
             Extend eligibility for residence in on-base housing
            for up to 1 year for medically retired and severely wounded,
            ill, and injured members and their families, or until the
            servicemember receives a VA disability rating, whichever is
            longer

    Guard and Reserve Health Care
        The coalition is very grateful for sustained progress in providing
    reservists' families a continuum of government-sponsored health care
    coverage options throughout their military careers into retirement, but
    key gaps remain.
        DOD took the first step in the 1990s by establishing a policy to
    pay the Federal Health Benefits Program (FEHB) premiums for G-R
    employees of the Department during periods of their active duty
    service.
        Thanks to this subcommittee's efforts, considerable additional
    progress has been made in subsequent years to provide at least some
    form of military health coverage at each stage of a Reserve component
    member's life, including TRICARE Reserve Select for actively drilling
    Guard/Reserve families and TRICARE Retired Reserve for ``gray area''
    retirees.
        But some deserving segments of the Guard and Reserve population
    remain without needed coverage, including post-deployed members of the
    Individual Ready Reserve and early Reserve retirees who are in receipt
    of non-regular retired pay before age 60.
        In other cases, the coalition believes it would serve Guard/Reserve
    members' and DOD's common interests to explore additional options for
    delivery of care to Guard and Reserve families. As deployment rates
    decline, for example, it would be cost-effective to establish an option
    under which DOD would subsidize continuation of employer coverage for
    family members during (hopefully less-frequent) periods of activation
    rather than funding year-round TRS coverage.
        TMC continues to support closing the remaining gaps to establish a
    continuum of health coverage for operational reserve families.
        The coalition recommends:

             Authorizing TRICARE for early Reserve retirees who are
            in receipt of retired pay prior to age 60
             Authorizing premium-based TRICARE coverage for members
            of the Individual Ready Reserve after being called to active
            service for a cumulative period of at least 12 months
             Permitting employers to pay TRS premiums for
            reservist-employees as a bottom-line incentive for hiring and
            retaining them
             Authorizing an option for the government to subsidize
            continuation of a civilian employer's family coverage during
            periods of activation, similar to FEHBP coverage for activated
            Guard-Reserve employees of Federal agencies
             Extending corrective dental care following return from
            a call-up to ensure G-R members meet dental readiness standards
             Allowing eligibility in Continued Health Care Benefits
            Program for selected reservists who are voluntarily separating
            and subject to disenrollment from TRS
             Allowing beneficiaries of the FEHBP who are Selected
            reservists the option of participating in TRICARE Reserve
            Select
             Improving the pre- and post-deployment health
            assessment program to address a range of mental/behavioral
            health issues such as substance abuse and suicide
             Allow for access to a full range of evidenced-based
            care and services for Reserve component members and their
            families, particularly during periods of reintegration back
            into the community

    Additional TRICARE Prime Issues
        The coalition strongly advocates for the transparency of healthcare
    information via the patient electronic record between both the MTF
    provider and network providers. Additionally, institutional and
    provider healthcare quality information should be available to all
    beneficiaries so that they can make better informed decisions with
    their healthcare choices.
        Most importantly, the coalition is highly concerned regarding the
    growing dissatisfaction among TRICARE Prime enrollees in the Prime
    Service Areas (PSAs). The dissatisfaction arises with the impending
    impact this will have on beneficiaries and the elimination of many PSAs
    under the new contract.
        This will entail a substantive disruption in health care delivery
    for thousands of beneficiaries who will be required to find different
    providers and will change the continuity of care for beneficiaries who
    have difficulty accessing care in many areas of the country. The
    beneficiary will also bear more of the cost of their healthcare by
    covering co-payments.
        Now that the three managed care contractors are in sync, this
    reduction will commence on October 1, 2013 with the beneficiaries who
    live in the areas where Prime service will be terminated.
        The Military Coalition urges the subcommittee to:

             Authorize beneficiaries affected by Prime Service Area
            changes to be grandfathered in their present arrangement until
            they either relocate or change their current primary care
            provider
             Require reports from DOD and the managed care support
            contractors on actions being taken to ensure those affected by
            the Prime Service Area reductions will be able to maintain
            continuity of care from their existing provider or receive an
            adequate selection of providers from which to obtain care
             Require increased DOD efforts to ensure electronic
            health record consistency between MTFs and purchased care
            sectors and provide beneficiaries with information to assist in
            informed decisionmaking

    Special Needs Families
        The coalition is grateful that the National Defense Authorization
    Act for Fiscal Year 2013 established a year pilot program making family
    members of currently serving and retired members of all Services
    diagnosed with an autism spectrum disorder eligible for applied
    behavioral analysis therapy (ABA) under the TRICARE program.
        The coalition is very pleased the original provision was amended to
    include all uniformed services, but is disappointed the new authority
    excludes family members with other diagnoses for which ABA therapy is
    beneficial.
        The coalition also is concerned that the pilot program was funded
    for only 1 year.
        The Military Coalition urges the subcommittee to:

             Authorize ABA coverage as a permanent benefit under
            the TRICARE basic program;
             Include eligibility to other developmental
            disabilities that may benefit from ABA
             Ensure permanent funding for this critical therapy;
            and
             Ensure any further adjustments to TRICARE eligibility
            apply equally to all seven uniformed services.

    Additional TRICARE Standard Issues
        The coalition appreciates the subcommittee's continuing interest in
    the specific problems unique to TRICARE Standard beneficiaries. TRICARE
    Standard beneficiaries need assistance in finding participating
    providers within a reasonable time and distance from their home. This
    is particularly important with the expansion of TRICARE Reserve Select
    and the upcoming change in the Prime Service Areas, which will place
    thousands more beneficiaries into TRICARE Standard.
        The coalition is grateful that the National Defense Authorization
    Act for Fiscal Year 2012 extended through 2015 the requirement for DOD
    to survey participation of providers in TRICARE Standard.
        However, we are concerned that DOD has not yet established
    benchmarks for adequacy of provider participation, as required by
    section 711(a)(2) of the NDAA for Fiscal Year 2008. Participation by
    half of the providers in a locality may suffice if there is not a large
    Standard beneficiary population, but could severely constrain access in
    other areas with higher beneficiary density.
        The coalition hopes to see an objective participation standard
    (perhaps based on the number of beneficiaries per provider) that would
    help shed more light on which locations have participation shortfalls
    of primary care managers and specialists that require intervention.
        Further, the coalition believes the Department should be required
    to take action to increase provider participation in localities where
    participation falls short of the standard.
        A source of continuing concern is the TRICARE Standard inpatient
    copay for retired members, which now stands at $708 per day or 25
    percent of billed charges. The coalition believes this amount already
    is excessive, and should continue to remain capped at that rate for the
    foreseeable future.
        The coalition urges the subcommittee to:

             Bar any further increase in the TRICARE Standard
            inpatient copay for the foreseeable future
             Insist on immediate delivery of an adequacy threshold
            for provider participation, below which additional action is
            required to improve such participation to meet the threshold
             Require a specific report on provider participation
            adequacy in the localities where Prime Service Areas will be
            discontinued under the new TRICARE contracts
             Increase locator support to TRICARE Standard
            beneficiaries seeking providers who will accept new Standard
            patients, particularly for primary care and mental health
            specialties

                       NATIONAL GUARD AND RESERVE FORCES

        Since September 11, 2001, more than 865,500 Guard and Reserve
    servicemembers have been called up, including about 285,000 who have
    served multiple tours. There is no precedent in American history for
    this sustained reliance on warrior-citizens and their families. To
    their credit, Guard and Reserve combat veterans continue to reenlist,
    but recurring activations and deployments cannot be sustained under
    Operational Reserve policy without adjustments to the compensation
    package.
        Guard and Reserve members and families face unique challenges in
    their readjustment following active duty service. Unlike active duty
    personnel, many Guard and Reserve members return to employers who
    question their contributions in the civilian workplace, especially as
    multiple deployments have become the norm. Many Guard-Reserve troops
    return with varying degrees of combat-related injuries and stress
    disorders, and encounter additional difficulties after they return that
    can cost them their jobs, careers, and families.
        Despite the continuing efforts of the Services and Congress, most
    Guard and Reserve families do not have access to the same level of
    counseling and support that active duty members have. The coalition is
    encouraged that last year Congress enacted measures to attack the
    epidemic of suicides in the total force, expand access to behavioral
    health services and create a pilot to provide transition services
    outside of active duty bases. Properly implemented, these initiatives
    will help, but more remains to be done.

    Operational Reserve Retention and Retirement Reform
        Congress took the first step in modernizing the Reserve retirement
    system with enactment of early retirement eligibility for certain
    reservists activated for at least 90 continuous days served since
    January 28, 2008.
        More recently, Congress passed an historic measure authorizing up
    to 60,000 reservists to perform active duty missions for up to 1 year
    without a formal emergency declaration so long as the missions are pre-
    planned and budgeted.
        The coalition believes this change further underscores the need to
    ensure Guard and Reserve members' compensation keeps pace with the
    Nation's ever-increasing reliance on them. The greater the demands
    placed on them, the greater the need to enhance inducements that are
    essential to sustain the operational Reserve Force over the long term.
        Repeated, extended activations make it more difficult to sustain a
    full civilian career and impede reservists' ability to build a full
    civilian retirement, 401(k), et cetera. Regardless of statutory
    protections, periodic long-term absences from the civilian workplace
    can only limit Guard/Reserve members' upward mobility, employability
    and financial security. Further, strengthening the Reserve retirement
    system will serve as an incentive to retaining critical mid-career
    officers and NCOs for continued service and thereby enhance readiness.
        As a minimum, the next step in modernizing the Reserve retirement
    system is to eliminate the inequity inherent in the current fiscal year
    retirement calculation, which credits 90 days of active service for
    early retirement purposes only if it occurs within the same fiscal
    year. A 90-day tour served from January through March is credited, but
    a 120-day tour served from August through November is worthless
    (because the latter covers 60 days in each of 2 fiscal years).
        Moreover, the law-change authorizing early retirement credit for
    qualifying active duty served after 28 Jan 2008 requires early Reserve
    retirees to pay exorbitant TRICARE Retired Reserve premiums if they
    wish to have government health insurance before age 60.
        The coalition urges the subcommittee to:

             Eliminate the fiscal year limitation which effectively
            denies full early retirement credit for active duty tours that
            span the start of a fiscal year (1 October)
             Modernize the Reserve retirement system to incentivize
            continued service beyond 20 years and provide fair recognition
            of increased requirements for active duty service
             Authorize early retirement credit for all active duty
            tours of at least 90 days retroactive to September 11, 2001

    Yellow Ribbon Reintegration Program
        Congress has provided increased resources to support the transition
    of warrior-citizens back into the community. But program execution
    remains spotty from State to State and falls short for those returning
    Federal Reserve warriors in widely dispersed regional commands.
    Programs should meet a standard level of family support within each
    State. Military and civilian leaders at all levels must improve the
    coordination and delivery of services for the entire operational
    Reserve Force. Many communities are eager to provide support and do it
    well. But Yellow Ribbon efforts in a number of locations amount to
    little more than PowerPoint slides and little or no actual
    implementation.
        DOD must ensure that State-level best practices--such as those in
    Maryland, Minnesota, and New Hampshire--are applied for all operational
    Reserve Force members and their families, and that Federal Reserve
    veterans have equal access to services and support available to
    National Guard veterans. Community groups, employers and service
    organization efforts need to be encouraged and better coordinated to
    supplement unit, component, Service and VA outreach and services.
        The Military Coalition urges immediate implementation of the 2-year
    pilot for providing TAP services `outside the gate' of active duty
    bases and broader expansion as soon as possible. Congress should hold
    oversight hearings and direct additional improvements in coordination,
    collaboration and consistency of Yellow Ribbon services between States.

    Reserve Compensation System
        The increasing demands of qualifications, mental skills, physical
    fitness, and training readiness on the Guard and Reserve to perform
    national security missions at home and abroad and increased training
    requirements indicate that the compensation system needs to be improved
    to attract and retain individuals into the Guard/Reserve. The added
    responsibility of returning to active duty multiple times over the
    course of a Reserve career requires improvements to the compensation
    package and to make it more equitable with the Active component.
        The coalition recommends subcommittee authorize:

             Credit for all inactive duty training points earned
            annually toward Reserve retirement
             Parity in special incentive pay for career enlisted/
            officer special aviation incentive pay, diving special duty
            pay, and pro-pay for Reserve component medical professionals
             The recalculation of retirement points after 1 year of
            activation

                     The 2010 NDAA authorized certain flag officers
                    to recalculate retirement pay after 1 year of active
                    duty, and we recommend this authority be extended to
                    all ranks

    Guard/Reserve GI Bill
        The coalition is most grateful to Congress for passage of the Post-
    9/11 GI Bill (Chapter 33, 38 U.S.C.), which includes a provision for
    reservists to accrue benefits for operational active duty service.
    However, Selected Reserve GI Bill benefits (Chapter 1606, 10 U.S.C.)
    have not been adjusted proportionally for more than 13 years.
        The coalition recommends the subcommittee:

             Work with the Veterans Affairs Committee to restore
            basic Reserve Montgomery GI Bill benefits for initially joining
            the Selected Reserve to the historic benchmark of 47-50 percent
            of the active duty MGIB
             Integrate Reserve MGIB benefits currently in title 10
            with active duty veteran educational benefit programs under
            title 38
             Enact academic protections for mobilized Guard and
            Reserve students, including refund guarantees

    Guard/Reserve Family Support Programs
        The coalition appreciates the upgrades in outreach programs and
    services for returning Guard-Reserve families. Family support programs
    promote better communication with servicemembers and help underwrite
    morale and overall readiness.
        The coalition urges the subcommittee to:

             Review the adequacy of programs to meet the special
            information and support needs of families of individual Reserve
            augmentees or those who are geographically dispersed
             Foster programs among military and community leaders
            to support servicemembers and families during all phases of
            deployments
             Provide preventive counseling services for
            servicemembers and families
             Authorize child care for family readiness group
            meetings and drill time and respite care during deployments
             Improve the joint family readiness program to
            facilitate understanding and sharing of information between all
            family members

                                 RETIREE ISSUES

    Military Retirement Reform
        Whenever military budgets get tight, budget analysts, commissions
    and chartered task forces propose military retirement cutbacks.
        Past defense leaders resisted such efforts as being detrimental to
    retention and readiness. In contrast, former Secretary of Defenses
    Gates and Panetta voiced support for significant retirement changes.
    The administration's recently proposed (2012) BRAC like commission to
    modernize the military compensation system reflects a lack of
    understanding about the radical differences between uniform service and
    civil careers.
        The coalition appreciates Congress' wise action last year in
    modifying the composition of the Military Compensation and Retirement
    Modernization Commission and eliminating restrictions under which its
    recommendations may be considered by Congress.
        We strongly believe that any proposed changes recommended by the
    Commission must be considered in light of previous congressional reform
    efforts and thoroughly vetted in the public forum.
        The basic principles of the existing compensation system were
    designed to foster and maintain the profession of arms as a
    ``dignified, respected, sought after, and honorable career'' as
    outlined in the DOD's Military Compensation Background Papers.
        The unique military retirement package we have today was formulated
    to offset the extraordinary demands and sacrifices inherent in a
    service career. These benefits provide a powerful incentive for top-
    quality people to serve 20-30 years in uniform, despite the burden of
    sacrifices as eloquently articulated by the Secretary of the Air Force
    during his January 18, 1978 testimony before the President's Commission
    on Military Compensation:

              ``The military services are unique callings. The demands we
            place on our military men and women are unlike those of any
            other country. Our worldwide interests and commitments place
            heavy burdens and responsibilities on their shoulders. They
            must be prepared to live anywhere, fight anywhere, and maintain
            high morale and combat efficiency under frequently adverse and
            uncomfortable conditions. They are asked to undergo frequent
            exposure to risk, long hours, periodic relocation and family
            separation. They accept abridgement of freedom of speech,
            political and organizational activity, and control over living
            and working conditions. They are all part of the very personal
            price our military people pay.
              ``Yet all of this must be done in the light of--and in
            comparison to--a civilian sector that is considerably
            different. We ask military people to be highly disciplined when
            society places a heavy premium on individual freedom, to
            maintain a steady and acute sense of purpose when some in
            society question the value of our institutions and debate our
            national goals. In short, we ask them to surrender elements of
            their freedom in order to serve and defend a society that has
            the highest degree of liberty and independence in the world. I
            might add, a society with the highest standard of living and an
            unmatched quality of life.
              ``Implicit in this concept of military service must be long-
            term security and a system of institutional supports for the
            serviceman and his family which are beyond the level of
            compensation commonly offered in the private, industrial
            sector.''

        There is no better illustration of that reality than the past 11
    years of war. Absent the career drawing power of the current 20-year
    retirement system and its promised benefits, the coalition asserts that
    sustaining anything approaching the needed retention rates over such an
    extended period of combat deployments would have been simply
    impossible.
        The crucial element to sustaining a high-quality, career military
    force is establishing a strong bond of reciprocal commitment between
    the servicemember and the government. If that reciprocity is not
    fulfilled, if we break faith with those who serve, retention and
    readiness will inevitably suffer.
        The coalition believes the government has a unique responsibility
    to this small segment of Americans that goes far beyond any civilian
    employer's obligation to its employees. We actively induce these
    citizens to subordinate their interests to that of America's for
    periods of 20 to 30 years. No private employer would ever consider
    making such a request.
        The uniformed services retirement system has had its critics since
    the 1970s and even earlier.
        In the 1980s, budget pressures led to amending retirement rules
    twice for new service entrants:

             Basing retired pay calculations on the high-36-month
            average of basic pay instead of final basic pay (1980), and
             Enacting the REDUX system that cut 20-year retired pay
            value by more than 25 percent (1986).

        At the time the REDUX plan was being considered, then-Secretary of
    Defense Caspar Weinberger strongly, but unsuccessfully, opposed it (see
    attached letter), arguing the change would harm retention and degrade
    readiness. ``It says in absolute terms,'' said Weinberger, ``that the
    unique, dangerous, and vital sacrifices they routinely make are not
    worth the taxpayer dollars they receive.''
        When his prediction of adverse retention consequences proved all
    too accurate in the 1990s, Congress repealed REDUX in 1999 at the
    urging of the Joint Chiefs of Staff.
        Since then innumerable studies and task forces have recommended
    even more dramatic changes, usually either to save money, to make the
    system more like those offered under civilian programs, or both.
        Most recently, groups such as the National Commission on Fiscal
    Responsibility and Reform, the Debt Reduction Task Force, the
    Sustainable Defense Task Force, and the Defense Business Board's (DBB)
    ``Modernizing the Military Retirement'' Task Group have all recommended
    radically revamping the system more on civilian lines, significantly
    reducing military retirement compensation.
        Secretary Gates criticized the 20-year retirement system as
    ``unfair'' to those who leave service before that point, pointing out
    that vesting options are provided to civilian workers. Therefore he
    directed the DBB to identify alternative options. In his final
    appearance before the Senate, Gates endorsed an early vesting program,
    noting, ``70 to 80 percent of the force does not stay until retirement
    but leaves with nothing.''
        However, there is no support for spending more money on military
    retirement, so the vesting options proposed to date--including those of
    the DBB and the DOD-sponsored 11th Quadrennial Review of Military
    Compensation (QRMC)--would fund that new benefit by imposing dramatic
    benefit cuts for the 17 percent who complete decades in uniform.
        All too aware of the lessons learned, Congress has wisely ignored
    and dismissed these ivory-tower recommendations which propose far
    greater retirement cuts than REDUX entailed.
        The existing retirement system is often characterized as
    ``inflexible'', limiting the ability of Service personnel managers to
    more precisely and effectively manage the force. The coalition strongly
    disagrees.
        The Services already have substantial authority to adjust force
    structure by revising high-year-of-tenure limits to enforce the unique
    military ``up-or-out'' promotion system, to incentivize voluntary
    separations and to bring about voluntary or mandatory early
    retirements.
        The Services routinely tighten retention and reenlistment
    incentives and other restrictions when budget considerations create a
    need for additional separations and retirements. When necessary,
    Congress has provided additional special drawdown authorities to create
    the right force structure.
        However, the reality is that precisely planned force management
    initiatives are regularly abandoned in the wake of real-world events
    that often force dramatic reversals of planned actions. Reform measures
    which envision delaying retirement until age 57 or 60 belie the reality
    that the Services don't need or want the vast majority of members to
    stay in uniform that long.
        Service desires for unlimited flexibility to shape the force may be
    appropriate for the management of hardware and other non-sentient
    resources. However, the Services are dependent upon attracting and
    retaining smart people who understand all too well when their leaders
    place no limits on the sacrifices that may be demanded of them, but
    also wish to reserve the right to change the rules on them and kick
    them out at will . . . even while building a system that assumes they
    will be willing to serve under these conditions until age 60.
        Servicemembers from whom we demand so much deserve some stability
    of career expectations in return.
        The coalition believes ``civilianizing'' the military benefit
    package would dramatically undermine the primary military career
    retention incentive and would be disastrous for retention and
    readiness, as they increase the incentives to leave and reduce the
    incentives for career service.
        Moreover, we believe it is irresponsible to focus on budget and
    ``civilian equity'' concerns while ignoring the primary purpose of the
    retirement system--to ensure a strong and top-quality career force in
    spite of arduous service conditions which no civilians experience and
    few are willing to accept.
        America will remain the world's greatest superpower only as long as
    it continues to fulfill its reciprocal obligation to the All-Volunteer
    Career Force.
        The coalition urges the subcommittee to oppose any initiative which
    would ``civilianize'' the military retirement system, ignore the
    lessons of the ill-fated REDUX initiative, and inadequately recognize
    the unique and extraordinary demands and sacrifices inherent in a
    military career.

    Cost-of-Living Adjustments (COLAs)
        In recent years, several commissions have proposed adjusting the
    Consumer Price Index (CPI) methodology to the so-called ``chained CPI''
    calculation as a means of holding down COLA growth for military and
    Federal civilian retired pay, Social Security and all other Federal
    annuities over time.
        Proponents of the chained CPI say it more accurately reflects
    changes in annuitants' cost of living by recognizing that their
    purchasing behavior changes as prices change. If the price of beef
    rises, for example, consumers may purchase more chicken and less beef.
        What chained CPI doesn't capture is increasing costs where there
    are no adequate substitutes, such as rent or utilities. The real issue
    is whether chained CPI measuring changes in prices or changes in the
    quality of life. Following the logical progression to an extreme we
    could find consumers substituting hot dogs for chicken, et cetera.
        The Bureau of Labor Statistics has estimated that implementation of
    the chained CPI would depress COLAs by about 0.25 to 0.3 percentage
    point per year.
        The DOD actuary estimates that inflation will average 3 percent per
    year over the long term.
        Using those two estimates, applying the chained-CPI COLAs for a
    servicemember retiring at age 42 would yield about 10 percent less in
    his or her retired paycheck at age 85 relative to the current COLA
    system. The longer you live, the worse it gets.
        Additionally, some commissions have proposed delaying any COLAs on
    military retired pay until age 60 or later, barring COLAs on annuity
    levels above some set dollar amount, or reducing the CPI by one-half
    percent or a full percentage point per year.
        The coalition believes such initiatives would constitute a breach
    of faith with military people and constitute a disproportional penalty.
        COLAs are particularly important to military retirees, disabled
    retirees, and survivors because they start drawing their annuities at
    younger ages than most other COLA-eligibles and thus experience the
    compounding effects over a greater number of years. To the extent that
    COLAs fail to keep up with living costs, real purchasing power
    continues to decline ever more dramatically as long as one lives.
        The coalition urges the subcommittee to:

             Reject the chained CPI as a basis for adjusting
            military retired pay
             Ensure the continued fulfillment of congressional COLA
            intent, as expressed in House National Security Committee Print
            of title 37, U.S.C.: ``to provide every military retired member
            the same purchasing power of the retired pay to which he was
            entitled at the time of retirement [and ensure it is] not, at
            any time in the future . . . eroded by subsequent increases in
            consumer prices''
             Ensure equal treatment of all uniformed service
            personnel, to include NOAA/USPHS/USCG personnel, with respect
            to any retirement/COLA legislation

    Concurrent Receipt
        Congress clearly recognized the inequity of the disability offset
    to earned retired pay during the past decade and has gone to great
    lengths to establish a process to end or phase out the offset for many
    disabled retirees. The coalition is extremely grateful for the
    subcommittee's efforts to continue progress in easing the adverse
    effects of the offset.
        In that vein, we are very pleased Congress identified resources to
    fix a longstanding inadvertent ``glitch'' in the statutory computation
    formula for Combat-Related Special Compensation (CRSC). This was
    clearly a victory for our war wounded veterans.
        The coalition strongly believes in the principle that career
    military members earn their retired pay by service alone, and that
    those unfortunate enough to suffer a service-caused disability in the
    process should have any VA disability compensation from the VA added
    to, not subtracted from, their service-earned military retired pay.
        In 2010, we were very optimistic that another very deserving group
    of disabled retirees--those forced into medical retirement short of 20-
    years of service--would become eligible for concurrent receipt when the
    White House included a concurrent receipt proposal in the Budget
    Resolution--the first time in history any administration had ever
    proposed such a fix.
        The proposal would have expanded concurrent receipt eligibility
    over a 5 year period to all those forced to retire early from Service
    due to a disability, injury, or illness that was service-connected
    (chapter 61 retirees). We were dismayed that, despite the
    subcommittee's leadership efforts and White House support, the
    provision has not yet been enacted--an extremely disappointing outcome
    for a most deserving group of disabled retirees.
        We recognize only too well the challenges associated with adding
    new mandatory spending provisions in this difficult budget environment.
    But making at least some progress to address this grievous inequity
    (e.g., covering all 100-percent disabled retirees with less than 20
    years of service) remains an important goal.
        The coalition urges the subcommittee to continue seeking to expand
    Concurrent Retirement and Disability Payments (CRDP) to disabled
    retirees not eligible under the current statute, with first priority
    for vesting of earned retirement credit for Chapter 61 retirees with
    less than 20 years of service.

    Fair Treatment for Servicemembers Affected by Force Reductions
        Throughout the 1990s and into the early 2000s the services had
    several drawdown tools at their disposal to incentivize members to
    voluntarily leave the Service: Voluntary Separation Incentive (VSI),
    Special Separation Benefit (SSB), and Temporary Early Retirement
    Authority (TERA). The recently reauthorized TERA will greatly aid the
    Services in anticipation of significant force drawdowns and combat
    forces depart southwest Asia.
        During any force reduction, servicemembers who intend to make the
    Service a career are forced out. We believe the Nation should recognize
    their service and provide a ``transportable'' benefit for those that
    have their careers curtailed involuntarily short of 20 years.
        The coalition emphasizes that this limited ``vesting'' initiative
    should be applied only during periods of significant force reductions
    and funding for it should not come at the expense of those who serve 20
    years or more.
        Authorizing separated servicemembers the ability to contribute part
    or all of their involuntary or voluntary separation pay into their
    Thrift Savings Plan (TSP) account would appropriately recognize their
    past service and provide a level of ``transportable'' career benefit
    under these difficult times.
        The coalition recommends enacting temporary legislation that would
    allow members separated during periods of significant force reductions
    to deposit part or all of their involuntary separation pay or VSP into
    their TSP account.

                                SURVIVOR ISSUES

        The coalition is grateful to the subcommittee for its significant
    efforts in the past decade to improve the Survivor Benefit Plan (SBP),
    especially its major achievement in 2005 eliminating the Military
    Widows Tax--the Social Security offset that SBP survivors encountered
    upon attaining age 62. Yet, there is still more to do when looking at
    the plight of our widows.

    SBP-DIC Offset
        The coalition believes strongly that current law is unfair in
    reducing military SBP annuities by the amount of any survivor benefits
    payable from the Dependency and Indemnity Compensation (DIC) program.
        If the surviving spouse of a retiree who dies of a service-
    connected cause is entitled to DIC from the Department of Veterans
    Affairs and if the retiree was also enrolled in SBP, the surviving
    spouse's SBP annuity is reduced by the amount of DIC. A pro-rata share
    of the SBP premiums is refunded to the widow upon the member's death in
    a lump sum, but with no interest. This offset also affects all
    survivors of members who are killed on active duty.
        The coalition believes SBP and DIC payments are paid for different
    reasons. SBP is insurance purchased by the retiree and is intended to
    provide a portion of retired pay to the survivor. DIC is a special
    indemnity compensation paid to the survivor when a member's service
    causes his or her premature death. In such cases, the VA indemnity
    compensation should be added to the SBP annuity the retiree paid for,
    not substituted for it.
        In comparison, Federal civilian retirees who are disabled veterans
    and die of military-service-connected causes can receive DIC without
    losing any of their Federal civilian SBP benefits.
        Unfortunately, in every SBP-DIC case, active duty or retired, the
    true premium extracted by the service from both the member and the
    survivor was the ultimate one--the very life of the member. This
    reality was underscored by the August 2009 Federal Court of Appeals
    ruling in Sharp v. U.S. which found, ``After all, the servicemember
    paid for both benefits: SBP with premiums; DIC with his life.''
        The Veterans Disability Benefits Commission (VDBC) reviewed the
    SBP-DIC issue, among other DOD/VA benefit topics. The VDBC's final
    report to Congress in 2007 agreed with the coalition in finding that
    the offset is inappropriate and should be eliminated.
        In 2005, then-Speaker Pelosi and other House leaders made repeal of
    the SBP-DIC offset a centerpiece of their GI Bill of Rights for the
    21st Century.
        Leadership has made great progress in delivering on other elements
    of that plan, but the only progress to date on the SBP-DIC offset has
    been the enactment a small monthly Special Survivor Indemnity Allowance
    (SSIA).
        The coalition recognizes that the subcommittee's initiative in the
    fiscal year 2008 defense bill to establish the SSIA was intended as a
    first, admittedly very modest, step in a longer-term effort to phase
    out the DIC offset to SBP.
        We're very grateful for the subcommittee's subsequent efforts to
    increase SSIA amounts as additional steps toward the goal of
    eliminating the offset.
        While fully acknowledging the subcommittee's good-faith efforts to
    win more substantive progress, the coalition shares the extreme
    disappointment and sense of abandonment of the SBP-DIC widows who are
    forced to sacrifice up to $1,215 each month and are being asked to be
    satisfied with a $90 monthly rebate.
        The coalition understands the mandatory-spending constraints the
    subcommittee has faced in seeking redress, but also points out that
    those constraints have been waived for many, many far more expensive
    initiatives, including the recent extension of civilian unemployment
    benefits.
        The coalition believes widows whose sponsors' deaths were caused by
    military service should not be last in line for redress.
        The coalition urges the subcommittee to:

             Continue pursuing ways to repeal the SBP-DIC offset
             Authorize SBP annuities to be placed into a Special
            Needs Trust for permanently disabled survivors who otherwise
            lose eligibility for state programs because of means testing
             Reduce the age for paid-up SBP to age 67 for those who
            joined the military at age 17, 18, or 19
             Reinstate SBP annuities to survivors who transfer it
            to their children when the children reach majority, or when a
            subsequent remarriage ends in death or divorce

    Final Retired Paycheck
        Under current law, DFAS recoups from military widows'/widowers'
    bank accounts all retired pay for the month in which a retiree dies.
    Subsequently, DFAS pays the survivor a pro-rated amount for the number
    of days of that month in which the retiree was alive. This often
    creates hardships for survivors who have already spent that pay on
    rent, food, et cetera, and who routinely are required to wait several
    months for DFAS to start paying SBP benefits.
        The coalition believes this is an extremely insensitive policy
    imposed by the government at the most traumatic time for a deceased
    member's next of kin. Unlike his or her active duty counterpart, a
    retiree's survivor receives no death gratuity. Many older retirees do
    not have adequate insurance to provide even a moderate financial
    cushion for surviving spouses.
        In contrast to the law governing military retired pay treatment of
    survivors, the title 38 statute requires the VA to make full payment of
    the final month's VA disability compensation to the survivor of a
    disabled veteran.
        The disparity between DOD and VA policy on this matter is
    indefensible. Congress should do for retirees' widows the same thing it
    did 10 years ago to protect veterans' widows.
        TMC urges the subcommittee to authorize survivors of retired
    members to retain the final month's retired pay for the month in which
    the retiree dies.

                                    SUMMARY

        The Military Coalition again thanks the subcommittee for your
    unfailing support of the entire uniformed service community and for
    taking our concerns and priorities into consideration as you deliberate
    on the future of the one weapon system that has never let our Nation
    down--the men and women who wear and have worn the uniform and their
    families.
                                     ______

       Master Chief Joseph L. Barnes, USN (Retired), National Executive
       Director, Fleet Reserve Association and Co-Chairman, The Military
                                   Coalition

        Joseph L. (Joe) Barnes is a retired Navy Master Chief and serves as
    the Fleet Reserve Association's (FRA's) National Executive Director. He
    is a member of FRA's National Board of Directors, chairs the
    Association's National Committee on Legislative Service, and is
    responsible for managing the organization's National Headquarters in
    Alexandria, VA. In addition, he is president of the FRA Education
    Foundation which oversees the Association's scholarship program that
    presented awards totaling $128,000 in 2012.
        Barnes joined FRA's National Headquarters team in 1993 and prior to
    assuming his current position in 2002, he served as FRA's Director of
    Legislative Programs. During his tenure, the Association realized
    significant legislative gains, and was recognized with a certificate
    award for excellence in government relations from the American Society
    of Association Executives (ASAE).
        In addition to his FRA duties, Barnes is Co-Chairman of the
    Military Coalition (TMC) and co-chairs the Coalition's Personnel,
    Compensation and Commissaries Committee. He is also a member of the
    Defense Commissary Agency's Patron Council and an ex-officio member of
    the U.S. Navy Memorial Foundation's Board of Directors.
        He received the U.S. Coast Guard's Meritorious Public Service Award
    and was appointed an Honorary Member of the U.S. Coast Guard in 2003.
        While on active duty, he was the public affairs director for the
    U.S. Navy Band in Washington, DC, and directed marketing and
    promotional efforts for national tours, network radio and television
    appearances, and major special events in the Nation's capital. His
    awards include the Defense Meritorious Service and Navy Commendation
    Medals.
        Barnes holds a bachelor's degree in education and a master's degree
    in public relations management from The American University,
    Washington, DC. He earned the Certified Association Executive (CAE)
    designation from ASAE in 2003 and is an accredited member of the
    International Association of Business Communicators (IABC).
                                     ______

    Kathleen B. Moakler, Director, Government Relations, National Military
                               Family Association

        Mrs. Moakler has been associated with the National Military Family
    Association since 1995 as a member of the headquarters staff. She was
    appointed to Government Relations Director in October 2007. In that
    position, she monitors the range of issues relevant to the quality of
    life of the families of the seven uniformed services and coordinates
    the six members of the Government Relations staff. Mrs. Moakler
    represents the interests of military families on a variety of advisory
    panels and working groups, including the Military Family Readiness
    Council.
        Mrs. Moakler is co-chair of the Survivor Programs Committee and the
    Personnel/Compensation/Commissaries Committee for the Military
    Coalition (TMC), a consortium of 34 military and veteran organizations.
    She is often called to comment on issues pertaining to military
    families for such media outlets as the NY Times, CNN, NBC News, NPR and
    the Military Times. She writes regularly for military focused
    publications.
        During her husband's 28 year Army career, Mrs. Moakler served in
    various volunteer leadership positions in civilian and military
    community organizations, as well as working with many military
    community programs including hospital consumer boards, commanders'
    advisory boards, family readiness groups, church councils, youth
    programs, and the Army Family Action Plan at all levels. She believes
    that communication is paramount in the efficient delivery of services
    and the fostering of a rich community life for military families. She
    holds a Bachelor of Science degree in Business Administration from the
    State University of New York at Albany. Mrs. Moakler has been awarded
    the Army Commanders Award for Public Service and the President's
    Volunteer Service Award.
        Mrs. Moakler is also a military mom. Her daughter, Megan, is an
    Army Major and nurse who has served two tours in Iraq and son, Matthew,
    is an Army major and Operation New Dawn veteran. Both are presently
    stationed at Fort Belvoir, VA. Her oldest son, Marty, works for
    Hulu.com and is an aspiring writer/actor in Los Angeles, CA. Mrs.
    Moakler and her husband, Colonel Martin W. Moakler, Jr. USA (retired),
    reside in Alexandria, VA.
                                     ______

     Colonel Steve Strobridge (USAF-Ret.), Director, Government Relations,
     Military Officers Association of America (MOAA); and Co-Chairman, The
                               Military Coalition

        Steve Strobridge, a native of Vermont, is a 1969 graduate from
    Syracuse University. Commissioned through ROTC, he was called to active
    duty in October 1969.
        After several assignments as a personnel officer and commander in
    Texas, Thailand, and North Carolina, he was assigned to the Pentagon
    from 1977 to 1981 as a compensation and legislation analyst at
    Headquarters USAF. While in this position, he researched and developed
    legislation on military pay, health care, retirement and survivor
    benefits issues.
        In 1981, he attended the Armed Forces Staff College in Norfolk, VA,
    en route to a January 1982 transfer to Ramstein AB, Germany. Following
    assignments as Chief, Officer Assignments and assistant for Senior
    Officer Management at HQ, U.S. Air Forces in Europe, he was selected to
    attend the National War College at Fort McNair, DC in 1985.
        Transferred to the Office of the Secretary of Defense upon
    graduation in June 1986, he served as Deputy Director and then as
    Director, Officer and Enlisted Personnel Management. In this position,
    he was responsible for establishing DOD policy on military personnel
    promotions, utilization, retention, separation and retirement.
        In June 1989, he returned to Headquarters USAF as Chief of the
    Entitlements Division, assuming responsibility for Air Force policy on
    all matters involving pay and entitlements, including the military
    retirement system and survivor benefits, and all legislative matters
    affecting active and retired military members and families.
        He retired from that position on January 1, 1994 to become MOAA's
    Deputy Director for Government Relations.
        In March 2001, he was appointed as MOAA's Director of Government
    Relations and also was elected Co-Chairman of The Military Coalition,
    an influential consortium of 33 military and veterans associations.
                                     ______

        Captain Marshall Hanson, USNR (Ret.), Director, Legislative and
                 Military Policy, Reserve Officers Association

        Captain Marshall Hanson became the Legislative Director of the
    Reserve Officers Association on 12 September 2005, 2 years after
    joining the ROA staff as the Naval Services Director. Not new to
    Washington, DC, he brings to the ROA team experience and success as the
    full time Director of Legislation for two other associations, Naval
    Reserve Association (NRA) and the National Association for Uniformed
    Services. Marshall brings to the ROA extensive expertise, working with
    the House and Senate Armed Services Committees, and with Defense
    Appropriations. He has gone through more than 13 legislative cycles. In
    2000, Marshall participated with the Reserve Officers Association in a
    Roles and Missions study that submitted a white paper to Congress and
    the Pentagon.
        Captain Hanson has testified before the House and Senate Armed
    Services committees, the Senate Appropriations subcommittee on Defense,
    the House Veterans Affairs committee and Senate Finance committee, and
    before the National Reserve Force's Policy Board on Guard and Reserve
    issues.
        He has been chairman of the Navy Marine Corps Council, co-director
    of the National Military and Veteran's Alliance, and is the chairman
    for the Guard and Reserve committee in The Military Coalition. In 1999,
    he moved to Alexandria, VA, from Seattle, WA, to join the NRA staff.
    Marshall has worked to develop a new adhoc committee, Associations for
    America's Defense (A4AD), coordinating 12 other associations on
    national security, force planning, and equipment issues, which were
    normally not covered by either the coalition or the alliance.
        Captain Hanson was born in Darby, PA, and raised in Glen Rock, NJ,
    and Seattle, WA. A 1972 Graduate of the University of Washington, he
    was commissioned by the U of W NROTC. He earned an MBA from the
    University of Washington in 1978, and is a 1990 graduate with
    distinction of the Naval War College. With a Fleet Support designator,
    he is a qualified, specialist in strategic operations, analysis, and
    planning.
        CAPT Hanson retired from the Naval Reserve in August 2002. With
    over 3 years of active duty and 27 years with the Reserves, Hanson's
    had 7 commands, and has collectively commanded over 200 people.
    Marshall's seagoing assignments include active duty on USS Niagara
    Falls (AFS-3) as an underway Officer of the Deck (I) and Damage Control
    Assistant. He has spent additional training periods aboard USS Kansas
    City (AOR-3), USS Blue Ridge (LLC-19), JMDS Isoyuki (DD-127), and
    various Canadian Naval Reserve Ships; and he has been the Chief of
    Staff for a Convoy Commodore, and staff-watch commander at Esquimalt
    Naval Base in Canada.
        Upon retirement, Captain Hanson was awarded the Meritorious Service
    Medal; he was also awarded the Military Outstanding Volunteer Service
    Medal in 1997 for community activities in the greater Puget Sound Area.
    He has twice been awarded the overseas ribbon, and has the Vietnam
    Campaign Medals and National Defense Service Medal. Prior to his move
    to Washington, DC, he was a Materials Manager for a Seattle
    manufacturing company in his civilian career. He and his wife, Deborah,
    reside in Alexandria, VA, and have two daughters, Loren Louise, age 20
    and Sydney Emilia, 14 years.

        Senator Gillibrand. Thank you.
        Ms. Moakler?

      STATEMENT OF MS. KATHLEEN B. MOAKLER, GOVERNMENT RELATIONS
             DIRECTOR, NATIONAL MILITARY FAMILY ASSOCIATION

        Ms. Moakler. Madam Chairman, distinguished committee
    members, thank you for letting me speak to you today about
    military families.
        Military families are strong, resilient, and resourceful.
    They know about uncertainty after more than 11 years of war.
    But there is a new uncertainty, the uncertainty of the
    programs, resources, and benefits contributing to their
    strength and resilience remaining available to support them now
    and in the future.
        Because of sequestration and the 6-month delay in passing a
    defense appropriations bill, military families now doubt our
    Nation's leaders' commitment to supporting their service. DOD
    civilian furloughs will affect military families. Some are
    military spouses, so while military pay is not affected, for
    which we are grateful, the overall income of some military
    families will be impacted. Furloughs and hiring freezes could
    force family service centers to adjust hours. Smaller staffs
    will result in longer waits for families needing counseling,
    financial advice, new parent support, survivor outreach, and
    victim advocates.
        DOD insists they will work to provide school children with
    a full year of quality education, and ensure each school
    maintains its accreditation. We are pleased DOD announced late
    last week there would be no school level furloughs at the end
    of the current school year. But we know communities are
    concerned about the beginning of the next school year.
        The TRICARE benefit is a rich and appreciated benefit.
    Military families can sometimes find it difficult to access
    care, but rarely complain about the quality of care. Access to
    care is most threatened by the $3 billion sequestration cut and
    anticipated furloughs of hospital personnel.
        You have heard from the Service Chiefs how sequestration is
    hurting the readiness of our servicemembers. We have shared
    some examples in our written statement of how sequestration is
    negatively affecting military families. We ask Congress to end
    sequestration now.
        With the number of cuts already made, military families are
    concerned about the elimination of vital resources and programs
    as part of the next round of savings. What is an acceptable
    level of support? What should the standard be? Our association
    believes DOD Instruction 1342.22, Military Family Readiness,
    must be the unequivocal baseline for military family readiness.
    It provides appropriate expectations and emphasizes that
    resource decisions be made based both on the evaluation of
    military family needs and the effectiveness of those programs.
        Programs and services can adapt as needed to respond
    swiftly to the changing needs during peacetime, war, base
    closures, natural disaster, and other emergency situations.
    Currently, this effort at a baseline of support is stymied at
    all levels by the continued call for belt tightening and
    capricious budget cuts where these programs are often the first
    targeted. Military families need to know what to realistically
    expect about the delivery of support services.
        We remain concerned about the transition of wounded,
    injured, and ill servicemembers and their families. Caregivers
    are an important part of the servicemember's recovery. VA and
    DOD caregiver benefits do not mesh, and many caregivers lose
    the support just when they need it the most.
        We ask you to create a smoother transition for caregivers
    between DOD and VA caregiver benefits. Now is the time to end
    the dependency and indemnity compensation offset to the
    survivor benefit plan. Although we know there is a significant
    price tag associated with this change, ending this offset would
    correct an inequity that has existed for many years for our
    survivors.
        We appreciate the action being taken to address the rising
    number of suicides by servicemembers. We are concerned that
    military and veteran families were not included when examining
    suicides. We recommend Congress require a DOD report on the
    number of family members who commit suicide, made a suicide
    attempt, or reported suicidal thoughts.
        We want to ensure family support programs are authorized,
    funded, and implemented at the level needed to maintain the
    readiness of servicemembers and their families, and to allow
    them to meet the challenges of the military lifestyle. Military
    families should be able to access support no matter where they
    live.
        We believe the people the servicemember identifies as
    family should have the information and help they need within
    the law and DOD regulations to support the readiness of the
    servicemember.
        Thank you, and I await any questions you may have.
        Senator Gillibrand. Mr. Barnes?

       STATEMENT OF MASTER CHIEF JOSEPH L. BARNES, USN, RETIRED,
         NATIONAL EXECUTIVE DIRECTOR, FLEET RESERVE ASSOCIATION

        Chief Barnes. Madam Chairman and members of the
    subcommittee, thank you for the opportunity to appear before
    you today. I will be addressing priority active duty and
    retiree issues.
        Military service is unlike any other career or occupation,
    and less than 1 percent of our population is shouldering 100
    percent of the responsibility for our national security.
    Ensuring adequate pay and benefits for our Active, Guard, and
    Reserve personnel, their families and survivors, and fulfilling
    commitments to provide health care and other benefits for
    military retirees, must be top priorities.
        Thanks to support from this subcommittee, there have been
    major pay and benefit improvements enacted since 2000. There
    has been much attention to these and the associated costs
    during the ongoing sequestration related budget crisis.
    However, there is usually no mention of the 13.5 percent pay
    gap at that time, plus major recruiting and retention
    challenges, concerns about a hollow force, and the government's
    failure to honor commitments to those who served in the past.
        Defense spending as a percentage of gross domestic product
    (GDP) during war time is now much lower than during past
    conflicts. According to the Wall Street Journal, projected
    defense spending will shrink from more than 4 percent today to
    2.7 percent of GDP by 2021, a level last seen before Pearl
    Harbor. The coalition strongly supports a full 1.8 percent ECI
    active duty pay increase for 2014. Pay comparability is
    directly related to long-term readiness.
        There is concern in the active duty community regarding the
    so-called reform of pay and retirement benefits by the Military
    Compensation and Retirement Modernization Commission. The
    powerful pull of the 20-year retirement system is the main
    reason retention levels have not imploded as a result of
    unprecedented wartime strain on troops and their families.
    Despite extraordinary demands, men and women in uniform are
    still answering the call, but at the cost of ever greater
    personal sacrifices.
        Budget driven retirement benefit cuts enacted in 1986
    affected only future retirees and eventually resulted in the
    repeal of the plan in 1999 due to concerns about retention and
    readiness. Adequate end strengths are also essential to
    military readiness.
        Significant threats to national security continue despite
    the winding down of operations in Afghanistan, and ensuring
    sufficient dwell time between deployments remains an elusive
    goal. Navy deployments, for example, have increased from 6 to
    as long as 9 months, and the stress on repeatedly deployed
    servicemembers and their families continues.
        No Federal obligation is more important than protecting
    national security, and the most important element of national
    security is sustaining a dedicated, top quality, All-Volunteer
    Force.
        Thank you again for the opportunity to present our views on
    these issues.
        [The prepared statement of the Fleet Reserve Association
    follows:]

              Prepared Statement by the Fleet Reserve Association

                         THE FLEET RESERVE ASSOCIATION

        The Fleet Reserve Association (FRA) is the oldest and largest
    enlisted organization serving Active Duty, Reserves, retired and
    veterans of the Navy, Marine Corps, and Coast Guard. It is
    Congressionally Chartered, recognized by the Department of Veterans
    Affairs (VA) as an accrediting Veteran Service Organization for claim
    representation and entrusted to serve all veterans who seek its help.
    In 2007, FRA was selected for full membership on the National Veterans'
    Day Committee.
        FRA was established in 1924 and its name is derived from the Navy's
    program for personnel transferring to the Fleet Reserve or Fleet Marine
    Corps Reserve after 20 or more years of active duty, but less than 30
    years for retirement purposes. During the required period of service in
    the Fleet Reserve, assigned personnel earn retainer pay and are subject
    to recall by the Navy.
        FRA's mission is to act as the premier ``watch dog'' organization
    in maintaining and improving the quality of life for Sea Service
    personnel and their families. FRA is a leading advocate on Capitol Hill
    for enlisted Active Duty, Reserve, retired and veterans of the Sea
    Services. The Association also sponsors a National Americanism Essay
    Program and other recognition and relief programs. In addition, the FRA
    Education Foundation oversees the Association's scholarship program
    that presents awards totaling over $125,000 to deserving students each
    year.
        The Association is a founding member of The Military Coalition
    (TMC), a 34-member consortium of military and veteran's organizations.
    FRA hosts most TMC meetings and members of its staff serve in a number
    of TMC leadership roles.
        FRA celebrated 88 years of service in November 2012. For over 8
    decades, dedication to its members has resulted in legislation
    enhancing quality of life programs for Sea Services personnel, other
    members of the uniformed services plus their families and survivors,
    while protecting their rights and privileges. CHAMPUS, (now TRICARE
    Standard) was an initiative of FRA, as was the Uniformed Services
    Survivor Benefit Plan. More recently, FRA led the way in reforming the
    REDUX Retirement Plan, obtaining targeted pay increases for mid-level
    enlisted personnel, and sea pay for junior enlisted sailors. FRA also
    played a leading role in advocating recently enacted predatory lending
    protections and absentee voting reform for servicemembers and their
    dependents.
        FRA's motto is: ``Loyalty, Protection, and Service.''
                 certification of non-receipt of federal funds
        Pursuant to the requirements of House Rule XI, the Fleet Reserve
    Association has not received any Federal grant or contract during the
    current fiscal year or either of the 2 previous fiscal years.

                                    SYNOPSIS

        The Fleet Reserve Association (FRA) is an active participant and
    leading organization in The Military Coalition (TMC) and strongly
    supports the recommendations addressed in the more extensive TMC
    testimony prepared for this hearing. The intent of this statement is to
    address other issues of particular importance to FRA's membership and
    the Sea Services enlisted communities.
        The following Letter to the Editor of The Washington Post dated
    December 7, 2012 summarizes the concerns of our members and others in
    the Uniformed Services community regarding proposals to drastically
    increase health care fees, cut pay and retirement benefits and other
    personnel programs in conjunction with the Defense Budget reductions.

              Regarding the December 3rd editorial ``Time to Rein In
            Tricare.''
              Personnel expenditures are directly associated with defense
            readiness and reneging on past commitments by imposing drastic
            health care fee hikes on military retirees will negatively
            impact recruiting and retention. Threats to also cut retirement
            benefits and other quality-of-life programs are major concerns
            within the Active and Reserve military communities and are
            viewed as devaluing military service.
              The debt crisis is serious, but total defense spending as a
            percentage of gross domestic product is significantly below
            past wartime periods and is projected to go lower. Despite
            claims of rising health care costs, in recent years the Defense
            Department has asked to shift unspent Defense Health Program
            funds to other areas.
              Military retirees who are younger than 65 and are enrolled in
            TRICARE Prime experienced a 13-percent increase in their annual
            enrollment fees last year, and these fees will increase
            annually based on inflation. Pharmacy copays will also increase
            in 2013.
              Military service is unlike any other occupation. Roughly 1
            percent of the population has volunteered to shoulder 100
            percent of the responsibility for our national security. The
            benefits associated with this service have been earned through
            20 or more years of arduous military service.
                                          Joseph L. Barnes,
                                       National Executive Director,
                                             Fleet Reserve Association.

                                  INTRODUCTION

        Chairman Gillibrand and Ranking Member Graham, FRA salutes you,
    other members of the subcommittee, and your staff for the strong and
    unwavering support of programs essential to Active Duty, Reserve
    component, and retired members of the armed services, their families,
    and survivors. The subcommittee's work has greatly enhanced care and
    support for our wounded warriors and significantly improved military
    pay, and other benefits and enhanced other personnel, retirement and
    survivor programs. This support is critical in maintaining readiness
    and is invaluable to military personnel engaged in operational
    commitments throughout the world and in fulfilling commitments to those
    who've served in the past.

                       SEQUESTRATION, CR, AND DOD BUDGET

        There's uncertainty and growing anxiety within the Active Duty,
    Reserve, and retiree communities regarding the effects of sequestration
    and major concerns about delayed approval of the fiscal year 2013
    spending package halfway through the current fiscal year and the
    administration's fiscal year 2014 budget request. This is reflected in
    responses to FRA's February 2013 online survey indicating that 90
    percent of retires were ``very concerned'' about the situation--the
    highest rating. FRA urges the administration and Congress to work
    together to ensure sufficient funding for fiscal year 2014 and beyond.
    Former Secretary of Defense Leon Panetta stated that sequestration cuts
    ``would do catastrophic damage to our military, hollowing out the force
    and degrading its ability to protect the country.'' It is significant
    that defense spending totals 17 percent of the Federal budget, yet 50
    percent of the sequestration cuts are targeted for the Department of
    Defense (DOD). Operations are winding down in Afghanistan, however, the
    Nation is still at war and slashing DOD's budget further will not
    reduce the associated threats.
        FRA supports the ``Down Payment to Protect National Security Act''
    (S. 263), sponsored by Senator Kelly Ayotte (NH) and its House
    companion bill (H.R. 593) sponsored by House Armed Services Committee
    Chairman Representative Howard ``Buck'' McKeon, (CA) that would amend
    the Budget Control Act (BCA) by excluding the DOD budget from the next
    round of sequestration cuts mandated by the BCA.
        FRA supports a defense budget of at least 5 percent of gross
    domestic product that will adequately fund both people and weapons
    programs, and is concerned that the administration's spending plan is
    not enough to sufficiently support both.

                           COST-OF-LIVING ADJUSTMENTS

        The administration's fiscal year 2014 budget request includes a
    plan to calculate future cost-of-living adjustments (COLAs) for
    inflation adjusted benefits by using the chained Consumer Price Index
    (CPI) in lieu of the current CPI. The so-called ``chained CPI'' takes
    into account the effect of substitutions consumers make in response to
    changes in prices. FRA believes that change over time would have a
    significant cumulative impact on the annual COLAs for military retirees
    and personnel receiving veterans' benefits.
        In additon, under current law, military retired pay is rounded down
    to the next lowest dollar. For many enlisted retirees, their retired
    pay is sometimes the sole source of income for them and their
    dependents. Over time, the effect of rounding down can be substantial
    for these personnel and FRA supports a policy change to rounding up
    retiree COLAs to the next highest dollar.

                          ``MODERNIZATION'' COMMISSION

        The National Defense Authorization Act (NDAA) for Fiscal Year 2013
    (H.R. 4310, P.L. 112-239) establishes the Military Compensation and
    Retirement Modernization Commission but limits its recommendations from
    being BRAC-like in conjunction with its review and ``reform'' of the
    current compensation and military retirement system. FRA believes it's
    important that this distinguished Subcommittee and its House
    counterpart along with the full Armed Services Committees maintain
    oversight over commission recommendations. Numerous studies and
    commissions (10 since the beginning of 2006) have focused on military
    retirement and other benefits as an opportunity to reduce overhead
    costs for the Pentagon.
        In 1986, Congress passed, over the objection of then Secretary of
    Defense Casper Weinberger, major retirement changes known as ``Redux''
    that significantly reduced retirement benefits for those joining the
    military after 1986. FRA led efforts to repeal the act in 1999 after
    the military experienced retention and recruitment problems and the
    Association continues to monitor the take rate for personnel choosing
    between remaining on the High 3 program, or the Redux program at 15
    years of service.
        Maintaining a highly-motivated, well-trained, and professional all-
    volunteer career military force requires an adequate pay and benefit
    package. Military service is unlike any other career or occupation, and
    requires adequate compensation and a unique retirement system. Career
    senior noncommissioned officers are the backbone of our military and
    their leadership and guidance are invaluable and a result of
    specialized years of training and experience.

                       TRICARE BENEFITS AND FEE INCREASES

        FRA's membership appreciates the following Sense of Congress
    provisions in the NDAA for Fiscal Year 2013: (1) DOD and the Nation
    have a committed health benefit obligation to retired military
    personnel that exceeds the obligation of corporate employers to
    civilian employees; (2) DOD has many additional options to constrain
    the growth of health care spending in ways that do not disadvantage
    beneficiaries; and (3) DOD should first pursue all options rather than
    seeking large fee increases or marginalize the benefit for
    beneficiaries.
        Health care dominated priorities for military retirees responding
    to FRA's 2013 online survey, with quality of health care benefits rated
    as ``very important'' by over 95 percent of respondees. Access to the
    benefit followed in importance as indicated by over 94 percent of those
    participating in the survey.
        On October 1, 2013 DOD will reduce TRICARE Prime Service Areas, a
    change that will affect more than 170,000 retirees and their qualified
    family members and require enrollment in TRICARE Standard. Our members
    are voicing serious concerns about this change due to the higher costs
    associated with TRICARE Standard.
        FRA understands that under the new TRICARE contracts access to
    TRICARE Prime is limited to within 40 miles of a Military Treatment
    Facilities (MTF) and in areas affected by the 2005 base closure and
    realignment process. FRA believes current TRICARE Prime beneficiaries
    that live outside the TRICARE Prime Service Area (PSA) should be
    allowed to continue to have access to TRICARE Prime coverage
    (grandfathered) until they relocate or change their current primary
    care provider.
        Beyond the Military Health System (MHS) transitioning to a more
    integrated delivery model that will leverage a shared service approach
    to common functions, FRA believes that DOD must sufficiently
    investigate and implement other options to make TRICARE more cost-
    efficient as alternatives to shifting costs to TRICARE beneficiaries.

                    WOUNDED WARRIORS AND SEAMLESS TRANSITION

        FRA strongly supports the administration's efforts to create an
    integrated Electronic Health Record (iEHR) for every servicemember
    which would be a major step towards the Association's longstanding goal
    of a truly seamless transition from military to veteran status for all
    servicemembers and permit DOD, the Department of Veterans Affairs (VA),
    and private health care providers immediate access to a veteran's
    health data.
        The importance of fully implemented interoperability of electronic
    medical records cannot be overstated. However, former Secretary of
    Defense Leon Panetta and Secretary of the VA Eric Shinseki recently
    announced jointly that the departments are abandoning plans to create a
    single electronic health record for active duty military and veterans.
    FRA and others view this as a step backwards on this issue apparently
    due to budget pressures and higher costs. There is some sharing now
    between DOD, VA, and the private sector, however, wider expansion of
    data sharing and exchange agreements between VA, DOD, and the private
    sector is needed.
        FRA strongly supports the VA/DOD joint effort to invest more than
    $100 million in new research to improve diagnosis and treatment of post
    traumatic stress (PTS) and mild traumatic brain injury (TBI) in
    response to a August 31, 2012 Presidential Executive order calling for
    DOD and VA to also establish an interagency task force to coordinate
    their efforts, and VA and Health and Human Services will establish at
    least 15 pilot programs involving community-based health providers to
    expand mental health services in areas not well served by VA. DOD and
    VA should work together to standardize training for all DOD/VA mental
    health care providers.
        The Armed Services and Veterans Affairs Committees must remain
    vigilant regarding their oversight responsibilities associated with
    ensuring a ``seamless transition'' for our Nation's wounded warriors.
    In conjunction with this, FRA is concerned about shifting of
    departmental oversight from the Senior Oversight Committee (SOC)
    comprised of the DOD and VA secretaries per provisions of the NDAA for
    Fiscal Year 2009, to the lower echelon Joint Executive Council which is
    now responsible for supervision, and coordination of all aspects of DOD
    and VA wounded warrior programs. This change is perceived by many as
    diminishing the importance of addressing significant challenges faced
    by servicemembers--particularly wounded warriors and their families--in
    transitioning from DOD to the VA.
        The Association notes the importance of the e-Benefits web site
    which serves as an electronic portal for servicemembers, veterans, and
    their families to research, find, access, and in the near future manage
    their VA benefits and track progress on claims processing. The program
    is a service of the DOD and VA and was one of the recommendations of
    the President's Commission on Care for America's Returning Wounded
    Warriors (Dole/Shalala). There are now more than 1.86 million e-
    Benefits users.
        FRA recommends support for the ``Servicemembers Mental Health
    Review Act'' (S. 628), sponsored by Senator Jon Tester (MT) and its
    House companion bill (H.R. 975) sponsored by Representative Tim Walz
    (MN). The bills would authorize the Physical Disability Board of Review
    to review and, when necessary, correct service records for veterans
    diagnosed by DOD with a Personality Disorder (PD) or Adjustment
    Disorder (AD) and discharged after active duty deployment. Many of
    these brave veterans have seen combat and may actually be suffering
    from Post-Traumatic Stress (PTS). Because PD and AD are considered pre-
    existing conditions, the DOD is not obligated to award the benefits
    they earned that may help them properly reintegrate into their
    communities.
        The Association also supports the ``Ruth Moore Act'' (S. 294/H.R.
    671) sponsored by Senator Jon Tester (MT) and Representative Chellie
    Pingree (ME) respectively that will improve the disability compensation
    evaluation procedure at the VA for veterans with mental health
    conditions related to military sexual trauma.
        FRA believes post traumatic stress should not be referred to as a
    ``disorder.'' This terminology adds to the stigma of this condition,
    and it is critical that the military do all it can to reduce the stigma
    associated with PTS and TBI. The DOD disability evaluation should be
    required to include all unfitting conditions and DOD physical
    evaluation boards should be mandated to standardize disability ratings
    between the Service branches. The Association also strongly encourages
    support for the Navy's Safe Harbor Program and the Marine Corps Wounded
    Warrior Regiment, programs that are providing invaluable support for
    these personnel before and after they transition to veterans' status.

                          MILITARY SUICIDES UP IN 2012

        Data from DOD on military suicides in 2012 indicates an increase of
    16 percent over 2011. Total active duty suicides for 2012 were 349, up
    from 301 suicides in 2011. During a March 21, 2013 hearing, Jacqueline
    Garrick, acting director of the Defense Suicide Prevention Office, told
    the House Armed Services Military Personnel Subcommittee that
    servicemember suicide rate had increased from 10.3 suicides per 100,000
    in 2001 to 18.3 suicides per 100,000 in 2010. She compared the military
    data from 2001 and 2010 to the U.S. suicide rate for males, ages 17 to
    60--an age demographic that she claimed best matches the armed forces
    demographic. This data reveals that the 2001 comparable civilian
    suicide rate was 21.8 suicides per 100,000 and 25.1 per 100,000 in
    2010. Military suicides by comparison are increasing at a dramatically
    higher rate (77 percent for military vice 15 percent for comparable
    civilian population) or five times higher than the civilian rate.
        The NDAA for Fiscal Year 2013 (H.R. 4310, P.L. 112-239) includes a
    Senate floor amendment sponsored by Senator Patty Murray (WA) that
    requires DOD to implement a standardize and comprehensive suicide
    prevention program. The provision was in response to a Rand Corporation
    study that indicated that there are serious gaps and a lack of
    consistency in military suicide prevention programs. Further, a
    Presidential Executive Order was issued in September 2012 that mandates
    the VA and DOD to establish an interagency task force to coordinate
    suicide prevention efforts. FRA notes that the VA/DOD crisis hot line
    has assisted more than 640,000 people and stopped over 23,000 potential
    suicides, and believes there must be readily available counseling
    support and expanded awareness of help that's available to
    servicemembers and veterans in crisis. Expanding VA counseling to
    veteran's family members, strengthening oversight of the Integrated
    Disability Evaluation System, and requiring VA to establish accurate
    measures for mental health are also important and addressed in the NDAA
    for Fiscal Year 2013. FRA believes challenges and stress associated
    with marital problems and divorce should be considered in addressing
    suicide prevention which is a high priority for FRA and the Association
    welcomes and supports the initiatives listed above.

                UNIFORMED SERVICES FORMER SPOUSES PROTECTION ACT

        According to Military.com writer Amy Bushatz, ``The military
    divorce rate went down slightly in 2012, settling at 3.5 percent from
    the record high 3.7 percent in 2011. Military officials and divorce
    experts are hopeful that the overall rate, which had crept slowly up
    from 2.6 percent in 2001 to 3.7 percent in 2011, is starting to move
    downward.'' Female enlisted soldiers and marines, however, continue to
    experience the highest rate of divorce--9.4 percent and 9.3 percent
    respectively. In the Army, the female enlisted divorce rate is more
    than triple that of enlisted males.''
        Related to these statistics, FRA urges Congress to review the
    Uniformed Services Former Spouses Protection Act (USFSPA) with the
    intent to amend the language so that the Federal Government is required
    to protect its servicemembers against State courts that ignore the act.
        The USFSPA was enacted 30 years ago; the result of congressional
    maneuvering that denied the opposition an opportunity to express its
    position in open public hearings. The last hearing, in 1999, was
    conducted by the House Veterans' Affairs Committee rather than the
    House Armed Services Committee which has oversight authority for
    USFSPA.
        Few provisions of the USFSPA protect the rights of the
    servicemember, and none are enforceable by the Department of Justice or
    DOD. If a State court violates the right of the servicemember under the
    provisions of USFSPA, the Solicitor General will make no move to
    reverse the error. Why? Because the act fails to have the enforceable
    language required for Justice or the Defense Department to react. The
    only recourse is for the servicemember to appeal to the court, which in
    many cases gives that court jurisdiction over the member. Another
    infraction is committed by some State courts awarding a percentage of
    veterans' compensation to ex-spouses, a clear violation of U.S. law;
    yet, the Federal Government does nothing to stop this transgression.
        There are other provisions that weigh heavily in favor of former
    spouses. For example, when a divorce is granted and the former spouse
    is awarded a percentage of the servicemember's retired pay, the amount
    should be based on the member's pay grade at the time of the divorce
    and not at a higher grade that may be held upon retirement.
        FRA believes that the Pentagon's USFSPA study recommendations are a
    good starting point for reform. This study includes improvements for
    both former spouse and the servicemember.

                            ACTIVE DUTY/RESERVE PAY

        FRA strongly supports a 2014 full Employment Cost Index military
    pay increase of 1.8 percent. The Rand Corporation released a study last
    year recommending smaller military pay increases starting in fiscal
    year 2015. The study indicates that military pay increased faster than
    civilian pay since 2000, but ignores the fact that military pay
    increases lagged behind civilian pay during the 1990s resulting in a
    1999 pay gap of 13.5 percent, which contributed to major recruitment
    and retention problems. The study suggests that smaller pay increases
    will not significantly impact retention and recruitment due to the
    relatively high unemployment rate through out the economy. FRA
    disagrees and believes the current high rate of unemployment will not
    continue indefinitely, and that pay for the all-volunteer military
    should accurately reflect service and the sacrifices borne by those who
    serve and their families. As Alex Keenan wrote in Navy Times (03-11-
    13), ``The plain truth is that if we want the best, most-highly
    trained, most capable military in recorded history, we have to be
    collectively willing to pay the monetary price--not only because it
    benefits our own national security, but because the people wearing the
    uniform are willing to pay an even higher price if called upon.''

                                  END STRENGTH

        Adequate military end strength is vital in sustaining our national
    security, and FRA is concerned about budget-driven calls for reducing
    end strength. After years of reducing its end strength through
    involuntary separations and other initiatives, the Navy has now
    admitted it has cut too much. As of December 6, 2012 Navy end strength
    was 317,600 which is the lowest end strength since 1940.
        The strain and inadequate dwell time of repeated deployments is
    significant and related to end strength levels. This is reflected in
    troubling stress-related statistics that include alarming suicide
    rates, prescription drug abuse, alcohol use and military divorce rates.

                               CONCURRENT RECEIPT

        FRA continues its advocacy for legislation authorizing the
    immediate payment of concurrent receipt of full military retired pay
    and veterans' disability compensation for all disabled retirees. The
    Association appreciates the progress that has been made on this issue
    that includes a recently enacted provision fixing the Combat Related
    Special Compensation (CRSC) glitch that caused some beneficiaries to
    lose compensation when their disability rating was increased. There
    still remain Chapter 61 retirees receiving Concurrent Retirement and
    Disability Pay (CRDP) and CRDP retirees with 20 or more years of
    service with less than 50 percent disability rating that should receive
    full military retired pay and VA disability compensation without any
    offset.
        The Association strongly supports pending legislation to authorize
    additional improvements that include Senate Majority Leader Harry
    Reid's legislation (S.234), Representative Sanford Bishop's ``Disabled
    Veterans Tax Termination Act'' (H.R. 333) and Representative Gus
    Bilirakis' ``Retired Pay Restoration Act'' (H.R. 303).

                            RESERVE COMPONENT ISSUES

        FRA stands foursquare in support of the Nation's reservists and to
    improved compensation and benefits packages to attract recruits and
    retain currently serving personnel. These changes should include
    eliminating the fiscal year early retirement limitation which is
    addressed in the ``Reserve Retirement Deployment Credit Correction
    Act'' (S. 240) sponsored by Senator Jon Tester (MT) and its House
    companion bill (H.R.690), sponsored by Representative Tom Latham (IA).
        FRA also supports making early retirement credit retroactive to
    September 11, 2001, after which the Reserve component changed from a
    strategic reserve to an operational reserve that's vital in prosecuting
    the war efforts and other operational commitments.
        FRA supports the ``Healthcare for Early Retirement Eligible
    Reservists Act'' (H.R. 738), sponsored by HASC Personnel Subcommittee
    Chairman Representative Joe Wilson (SC), that would allow retirees of
    the Reserve Component to receive medical and dental care at military
    treatment facilities (MTF) or VA facilities prior to reaching age 60.
    The NDAA for Fiscal Year 2009 granted qualifying reservists early
    retirement, but did not authorize healthcare benefits. In addition
    reservists in the Individual Ready Reserve (IRR) have no access to
    health care.
        The Association also supports restoring the Reserve Montgomery GI
    Bill benefits to at least 47 percent of active duty MGIB benefits.
    Further FRA recommends funding of a tailored Transition Assistance
    Program (TAP) to meet the unique needs of reservists, including
    academic protections for mobilized reservists students such as refund
    guarantees, exemption from repayment of Federal student loans during
    activation, and maintaining academic standing.

                             SBP/DIC OFFSET REPEAL

        FRA supports the ``Military Surviving Equity Act'' (H.R. 32)
    sponsored by Representative Joe Wilson (SC) to eliminate the Survivor
    Benefit Plan (SBP)/Dependency and Indemnity Compensation (DIC) offset
    for widows and widowers of servicemembers. This bill would eliminate
    the offset, also known as the ``widow's tax,'' on approximately 60,000
    widows and widowers of our Armed Forces.
        SBP and DIC payments are paid for different reasons. SBP is
    purchased by the retiree and is intended to provide a portion of
    retired pay to the survivor. DIC is a special indemnity compensation
    paid to the survivor when a member's service causes his or her
    premature death. In such cases, the VA indemnity compensation should be
    added to the SBP the retiree paid for, not substituted for it. It
    should be noted as a matter of equity that surviving spouses of Federal
    civilian retirees who are disabled veterans and die of military-
    service-connected causes can receive DIC without losing any of their
    Federal civilian SBP benefits.

                  RETENTION OF FINAL FULL MONTH'S RETIRED PAY

        FRA urges the subcommittee to authorize the retention of the full
    final month's retired pay by the surviving spouse (or other designated
    survivor) of a military retiree for the month in which the member was
    alive for at least 24 hours. FRA strongly supports ``The Military
    Retiree Survivor Comfort Act'' (H.R. 1360), introduced by
    Representative Walter Jones (NC) that achieves this goal.
        Current regulations require survivors of deceased military retirees
    to return any retirement payment received in the month the retiree
    passes away or any subsequent month thereafter. Upon the demise of a
    retired servicemember in receipt of military retired pay, the surviving
    spouse is to notify DOD of the death. The Department's financial arm
    then stops payment on the retirement account, recalculates the final
    payment to cover only the days in the month the retiree was alive,
    forwards a check for those days to the surviving spouse (beneficiary)
    and, if not reported in a timely manner, recoups any payment(s) made
    covering periods subsequent to the retiree's death. The recouping is
    made without consideration of the survivor's financial status.
        The measure is related to a similar pay policy enacted by the VA.
    Congress passed a law in 1996 that allows a surviving spouse to retain
    the veteran's disability and VA pension payments issued for the month
    of the veteran's death. FRA believes military retired pay should be no
    different.

                IMPROVEMENTS FOR MILITARY PREDATORY LENDING LAW

        FRA thanks this subcommittee for improvements in the Military
    Lending Act (MLA) specified in the Senate version (S. 3254) of the
    fiscal year 2013 Defense Authorization bill. This provision provides an
    explicit private right of action and civil penalties for predatory
    lenders, and expands oversight and enforcement authority to the
    Consumer Financial Protection Bureau (CFPB) and the Federal Trade
    Commission. Unfortunately, other related amendments to close loopholes
    in the definitions of payday and car title loans in the Senate version
    of the NDAA were not included in the final bill.
        The NDAA also called on DOD to conduct a study during 2013 to
    identify harmful credit products and practices and recommend
    protections to close loopholes. DOD is also required to promulgate a
    regulation in 2013 to implement changes in the law. FRA, CFPB, and
    consumer groups recently meet with DOD officials on this issue and have
    asked the Department to include payday and car title loan definitions
    in the regulation and also clarify that nonresident military borrowers
    are protected by all State credit laws. FRA urges continued oversight
    by this subcommittee to ensure that the report is timely and accurate.

                  PROTECT THE COMMISSARY AND EXCHANGE SYSTEMS

        Military commissaries and exchanges are essential parts of the
    military benefit package and FRA's online survey completed in February
    2013 indicates that nearly 61 percent of retirees rated Commissary/
    Exchange privileges as ``very important.'' FRA is a member of the
    recently established coalition to Save Our Military Shopping Benefits.
    The coalition now has 13 member organizations representing 1.5 million
    servicemembers, veterans, and their families, many of which are
    authorized patrons of the resale system.
        A new study by the Resale and MWR Center for Research entitled
    ``Costs and Benefits of the DOD Resale System'' indicates that these
    programs provide military members, retirees and their families with
    shopping discounts worth $4.5 billion annually. These stores are the
    biggest employers of military family members with 50,000 spouses,
    dependent children, retirees and veterans on the payrolls, adding $884
    million a year to military household incomes. The Association notes
    with concern DOD's plans to soon issue furlough notices to the Defense
    Commissary Agency (DeCA) employees and close commissaries on Mondays
    for the remainder of the fiscal year due to sequestration related cuts
    to operating accounts of 9.2 percent.
        The report also indicates that approximately $545 million a year
    from store operations is reinvested in base infrastructure. This is
    from profits of military exchanges and from a 5-percent surcharge
    collected at cash registers in commissaries. These facilities and
    capital improvements become assets on the balance sheet of the Federal
    Government. Exchange profits also fund important base morale, welfare,
    and recreation programs (MWR) that contribute to an enhanced quality of
    life for military beneficiaries.

                         CHILD CARE AND FAMILY HOUSING

        Access to affordable, quality child care must be a high priority
    for all the military services. Adequate and reliable child care helps
    reduce stress on a military family--especially when one of the parents
    is deployed. Master Chief Petty Officer of the Navy Michael Stevens'
    March 19, 2013 statement to the House Military Construction and
    Veterans Affairs Appropriations Subcommittee state that Navy Child
    Development Centers (CDC) provide quality care that is affordable when
    compared to commercial programs that charge based on age (children age
    three and under the most expensive and typically most junior enlisted
    have younger children); whereas Navy fees are based on total family
    income. Sergeant Major of the Marine Corps Micheal Barrett also
    testified before the subcommittee indicating that the Marine Corps is
    scheduled to increase CDC spaces in fiscal year 2013-2014. The Navy
    completed its CDC multi-year expansion efforts last year that added
    7,000 new child care spaces to meet the Office of Secretary of Defense
    guidance to provide 80 percent of potential child care needs. This
    expansion reduced waiting times to 3 months or less. The impact of
    sequestration on CDCs is unclear. Some centers are staffed by non-
    appropriated fund (NAF) workers who will not be affected by furloughs.
    Others are staffed by civilian government employees and some by a
    combination of both. Centers staffed by DOD civilians will be impacted
    by furloughs.
        Regarding military housing, the Marines have more than 24,000 homes
    and 96 percent are privatized (PPV). The Marine Corps reports that PPVs
    improve family housing, community centers, and playgrounds creating
    more of a sense of community. The Navy has privatized 97 percent of its
    homes in CONUS and Hawaii. The Navy will begin construction of new
    housing at the Naval Base Coronado, CA, for 468 E-1 through E-4
    sailors. The Navy is working to reduce inadequate housing from 37
    percent currently, to 10 percent by fiscal year 2019.
        FRA believes there is also a need to reform enlisted housing
    standards by allowing E-7s and above to reside in separate homes, track
    the Basic Allowance for Housing to ensure it is commensurate with
    actual housing costs, ensure adequate housing inventory and that
    housing privatization programs are beneficial to servicemembers and
    their families.

                                   CONCLUSION

        FRA is grateful for the opportunity to provide these
    recommendations to this distinguished subcommittee.

    Master Chief Joseph L. Barnes, USN (Ret.), National Executive Director,
                           Fleet Reserve Association
        Joseph L. (Joe) Barnes is a retired Navy Master Chief and serves as
    the Fleet Reserve Association's (FRA) National Executive Director. He
    is a member of FRA's National Board of Directors, chairs the
    Association's National Committee on Legislative Service, and is
    responsible for managing the organization's National Headquarters in
    Alexandria, VA. In addition, he is president of the FRA Education
    Foundation which oversees the Association's scholarship program that
    presented awards totaling $128,000 in 2012.
        Barnes joined FRA's National Headquarters team in 1993 and prior to
    assuming his current position in 2002, he served as FRA's Director of
    Legislative Programs. During his tenure, the Association realized
    significant legislative gains, and was recognized with a certificate
    award for excellence in government relations from the American Society
    of Association Executives (ASAE).
        In addition to his FRA duties, Barnes is Co-Chairman of the
    Military Coalition and co-chairs the Coalition's Personnel,
    Compensation and Commissaries Committee. He is also a member of the
    Defense Commissary Agency's Patron Council and an ex-officio member of
    the U.S. Navy Memorial Foundation's Board of Directors.
        He received the U.S. Coast Guard's Meritorious Public Service Award
    and was appointed an Honorary Member of the U.S. Coast Guard in 2003.
        While on active duty, he was the public affairs director for the
    U.S. Navy Band in Washington, DC, and directed marketing and
    promotional efforts for national tours, network radio and television
    appearances, and major special events in the Nation's capital. His
    awards include the Defense Meritorious Service and Navy Commendation
    Medals.
        Barnes holds a bachelor's degree in education and a master's degree
    in public relations management from The American University,
    Washington, DC. He earned the Certified Association Executive
    designation from ASAE in 2003 and is an accredited member of the
    International Association of Business Communicators.

      STATEMENT OF CAPT MARSHALL HANSON, USN, RETIRED, DIRECTOR,
     LEGISLATIVE AND MILITARY POLICY, RESERVE OFFICERS ASSOCIATION

        Captain Hanson. Madam Chairman, members of the
    subcommittee, I am Marshall Hanson. In addition to my job at
    the ROA, I am a co-chair for the TMC's Guard and Reserve
    Committee.
        Amid the news reports about Monday's bombing in Boston,
    there was a video clip of two people in uniform helping clear
    debris. Whether they were active or Reserve component, these
    brave individuals exemplify a military that runs towards chaos.
        During the last 11 years of war, almost 875,000 Reserve and
    Guard members were called to active duty. Of these, 1,225 died
    in the line of duty. Despite such sacrifices, there remains a
    number of benefit parity issues that need to be fixed by
    legislation.
        While TMC thanks this committee for allowing Reserve
    component members to earn early retirement, many do not receive
    the full retirement credit that they deserve. A fiscal year
    barrier exists, denying them a 90-day credit if their service
    crosses between 2 fiscal years. TMC supports S. 240 by Senators
    Tester, Chambliss, and Blumenthal to fix the problem in U.S.
    Code. TMC also advocates extending the early retirement to the
    warriors who served since September 11, 2001. Just yesterday, I
    learned of a female colonel who was affected by both aspects of
    the law. She served 16 months in theater, won a Bronze Star,
    but only got 9 months' credit towards earlier retirement.
        A need exists to modernize the Reserve retirement system to
    incentivize service beyond 20 years. This has been declining
    over the last 11 years of war. As many senior officers and
    enlisted are performing duty without pay, TMC endorses
    crediting all inactive duty toward Reserve retirement. Also, if
    an officer or enlisted retiree is recalled, his or her
    retirement should be recalculated after 1 year of mobilization
    as it is allowed now for general offices.
        Documenting active duty should be reexamined. Many Reserve
    and Guard members do not qualify for veteran status because
    their active duty periods are not long enough. Rather than
    collect a pile of DD-214s at the end of one's career, it makes
    sense to have a single document upon separation from the
    Reserve component that accumulates that all duty performed and
    lists specialty codes and awards.
        The title 10 Montgomery GI Bill (MGIB) allowance for
    selective reservists is woefully inadequate, being only 11.5
    percent of what is paid in the post-9/11 GI Bill. The new GI
    Bill pays up to $2,800 per month while the Montgomery GI Bill
    for selected Reserve pays only $356 per month for full time
    study. As one reservist said, ``This barely pays for gas and
    parking.''
        TMC asks the committee to work with the Senate Veterans
    Affairs to restore the selected Reserve allowance to the
    historic benchmark of 47 percent of the Active Duty MGIB, and
    to also integrate it into title 38 so there is no longer an
    orphan GI Bill under title 10.
        While the TAP is being revised and improved, the Reserve
    and Guard members will not benefit. The active duty is hesitant
    to allow Reserve component members to linger on active duty so
    they can participate in TAP. After a long period of Active
    Duty, Reserve, and Guard members are anxious to get home.
        There is a need to explore an outside of the gate version
    of TAP so that RC members can get the materials without being
    at an active duty base. Integrating this with the Yellow Ribbon
    Program is an option, but one that requires funding as we
    cannot ask our returning Guard and Reserve members to be
    debriefed without pay.
        Reserve health care also needs some continuity tweaking.
    Those who participate in TRICARE Reserve Select love the
    program, but the ROA joins other groups in not supporting
    suggested TRICARE fee increases because it will have a possible
    impact on the cost of TRICARE Reserve Select.
        Regrettably, the transitions between different military
    health care programs are not seamless. Serving members need to
    re-enroll at various points as they transition on and off of
    active duty. It is even worse for those who have kept their
    civilian employer's medical plan.
        TMC thanks this committee for the added 18 months' TRICARE
    Reserve Select transition when one leaves the Selected Reserve.
    But the current TRICARE retired Reserve program is inadequate
    because of its high premium levels.
        ROA, like other associations, looks forward to working with
    the committee on these and other issues that were highlighted
    in written testimony. I thank you, and I await your questions.
        [The prepared statement of the Reserve Officers Association
    follows:]

     Prepared Statement by the Reserve Officers Association of the United
                  States and the Reserve Enlisted Association

                                  INTRODUCTION

        On behalf of our members, the Reserve Officers Association and the
    Reserve Enlisted Association thank the committee for the opportunity to
    submit testimony on personnel issues affecting serving Active and
    Reserve members, retirees, their families, and survivors, as well as
    civilian personnel.
        The Federal Reserve and the National Guard are integral
    contributors to our Nation's operational ability to defend itself,
    assist other countries in maintaining global peace, and fight against
    overseas threats. They are an integrated part of the Total Force, yet
    remain a surge capability as well. A recent study by the Reserve Forces
    Policy Board has found that a Reserve component member costs the
    Department of Defense (DOD) 31 percent of the cost of his or her Active
    Duty counterpart over the life cycle of the warrior.
        At a time when the Pentagon and Congress are examining our Nation's
    security, it would be incorrect to discount the Reserve components'
    abilities and cost efficiencies. Instead, these part-time warriors
    provide a cost savings solution and an area to retain competencies for
    missions not directly embodied in the administration's strategic
    policy, Sustaining U.S. Global Leadership: Priorities for a 21st
    Century Defense.
        ROA and REA are concerned that as the Pentagon strives to achieve
    the administration's goals for this new strategic policy, it is not
    seriously considering the available assets and cost efficiencies of the
    Reserve component, and that it instead views the Reserve and National
    Guard as a bill payer. Congress, starting with the leadership of this
    subcommittee, should insist on a methodical analysis of suggested
    reductions in missions and bases before authorizing such changes.

               PROVIDE AND EXECUTE AN ADEQUATE NATIONAL SECURITY

        The Reserve Officers Association is chartered by Congress ``to
    support and promote the development and execution of a military policy
    for the United States that will provide adequate national security.''
    The nation must have adequate military force structure, training, and
    equipment to defeat any known or emerging military force that could be
    used against us.
        Requested Action
             Hold congressional hearings on the budget implications
            of the policy ``Sustaining U.S. Global Leadership: Priorities
            for the 21st Century Defense.''
             Reconcile the budget in order to end the Defense
            Sequestration budget cuts.
             Study the impact of manpower cuts to Army and Marine
            Corps on national Security.
             Avoid parity cuts of both Active and Reserve
            components without analyzing rebalance.
             Maintain a robust and versatile All-Volunteer Armed
            Forces that can accomplish its mission to defend the homeland
            and U.S. national security interests overseas.

        The proposed Defense budget by the administration builds upon a DOD
    reform agenda that it began several years ago. In 2010, Secretary of
    Defense Robert M. Gates outlined an efficiencies initiative designed to
    save the Department $100 billion over the next 5 years. In 2012,
    Secretary of Defense Leon Panetta announced that DOD was on the path to
    cut $487 billion from expenses over the next 10 years as mandated by
    the Budget Control Act of 2011. DOD's fiscal year 2013 budget request
    included an additional $60 billion in cuts between 2013 and 2017.
        The original initiative by former Secretary Gates as stated in the
    fiscal year 2012 defense budget was to identify $178 billion in
    efficiency savings in order to reinvest $100 billion in high-priority
    programs. Yet the reinvestment strategy has gone by the wayside, with
    the focus simply on reducing the defense dollars.
        For fiscal year 2014, a savings of approximately $34 billion have
    been identified by the administration to be reprogrammed for better use
    across the ``Future Years Defense Plan. Many of these efficiencies
    ``mimic the fiscal year 2013 requests'' which Congress rejected last
    year.
        ROA and REA question the current spending priorities that place
    more importance on the immediate future, rather than first doing a
    short- and long-term threat analysis. The result of such a budget-
    centric policy could again lead to a hollow force whose readiness and
    effectiveness is degraded.
        In its statement about priorities and choices, the administration
    talked about ``reducing overhead costs within the military service and
    across the defense enterprise--by an estimated $200 billion between
    fiscal year 2012 and fiscal year 2017--as a result of paring back
    excess staff [and] headquarters.''
        The administration proposes to cut defense ``civilian personnel of
    about 5 percent between fiscal year 2012 and 2018,'' but warns that
    ``about half of these reductions depend on infrastructure
    consolidation, restructuring of military treatment facilities, and
    forecasted reductions in demand for depot maintenance as we come out of
    Afghanistan.''

                      BASE CLOSURE OR DEFENSE REALIGNMENT?

        The President's budget continues to ask for more rounds of base
    closures. REA and ROA don't support such a BRAC recommendation. In the
    2005 BRAC, Reserve and National Guard facilities were closed, reducing
    the risk of closure of active duty facilities.

        (1)  BRAC savings are faux savings as these savings are outside the
    accounting cycle; with a lot of additional dollar expenses front loaded
    into the defense budget for infrastructure improvements to support
    transferred personnel.
        (2)  Too much base reduction eliminates facilities needed to
    support surge capability. Some surplus is good.

        Instead, ROA and REA recommend that Congress consider an
    independent Defense Realignment Commission that would examine the
    aggregate national security structure. It could examine:

         (1)  Emerging Threats.
         (2)  Foreign defense treaties and alliance obligations.
         (3)  Overseas and forward deployment requirements.
         (4)  Foreign Defense Aid.
         (5)  Defense partnerships with the State Department and other
    agencies, as well as NGO's.
         (6)  Requisite missions and elimination of duplicity between the
    Services.
         (7)  Current and Future weapon procurement and development.
         (8)  Resetting the force for a post-war context.
         (9)  Critical Industrial base.
        (10)  Surge capability and contingency repository.
        (11)  Best utilization and force structure of Active and Reserve
    components.
        (12)  Regional or centralized training, and dual purpose equipment
    availability.
        (13)  Compensation, recruiting, and retention; trends and
    solutions.

        In a time of war and force rebalancing, it is wrong to make cuts to
    the end strength of the Reserve components. We need to pause to permit
    force planning and strategy to take precedence over budget reductions.

                                RESERVE STRENGTH

        ``The challenges DOD has to face are not going to be handled by
    circling the wagons here at home,'' Dennis McCarthy, then-Assistant
    Secretary of Defense for Reserve Affairs told ROA at its national
    meeting in 2011. ``We're going to continue to need a force that can
    deploy worldwide . . . for the full spectrum of missions. . . . With
    roughly 1.4 [million] active-duty servicemembers, 1.2 million Reserve
    component members and likely future missions worldwide,'' McCarthy
    added, ``the military will need to continue to rely on Reserve
    strength.''
        The Reserve Forces are an integral contributor to our Nation's
    operational ability to defend our soil, assist other countries in
    maintaining global peace, and fight in overseas contingency operations.
    The utilization of America's Reserve and National Guard during all
    phases of military operations is a fundamental enabler to properly
    gaining and sustaining the support of our citizens. It should be noted
    that this principle, known by many as the Abrams Doctrine, has become
    more important since the elimination of the draft and in times of
    prolonged conflict.
        ROA and REA agree with the Reserve Forces Policy Board that despite
    11 years of war, there is inconsistency within the Pentagon on what is
    an operational reserve, which causes confusion within the DOD and leads
    to improper communications about the Reserve component's role to both
    Congress and the public.
        This lack of understanding about the contributions of the Reserve
    component can handicap strategy planning and the budget process, as
    discussions occur in both Congress and the Pentagon on how to reduce
    the budget and the deficit. The peril of lowering defense spending is
    that the Reserve components will become a bill payer. The Air Force and
    the Navy are already making drastic cuts to their Reserve components.
        REA and ROA would like to thank the Senate and members of this
    subcommittee who took legislative action to reduce the impact of
    recommend cuts to airframes and personnel that were touted by the Air
    Force.
        However, the risk continues to exist where Defense planners may be
    tempted to put the Federal Reserve and the National Guard back on the
    shelf, by providing them ``hand me down'' outmoded equipment and by
    underfunding training.
    The Reserve Components Remain a Cost-Efficient and Valued Force.
        Reserve component servicemembers have significantly less overhead
    and infrastructure costs than their Active component counterparts.
        On January 11, 2013, the Reserve Forces Policy Board (RFBP)
    delivered a report on military personnel costing practices to the
    Secretary of Defense. In it executive summary RFPB states that the cost
    of a Reserve component servicemember, when not activated, is less than
    one third of their Active Duty counterpart. According to RFPB analysis
    of the fiscal year 2013 budget request, ``the Reserve component per
    capita cost ranges from 22 percent to 32 percent of their AC
    counterparts' per capita costs, depending on which cost elements are
    included.''
        The RFBP found that the Department does not know, use, or track the
    fully-burdened and life-cycle costs of its most expensive resource--its
    military personnel. ``Thus, major military manpower decisions are
    uninformed on the real present and future costs. The RFPB concluded
    that the Department suffers from a gap in its costing data, because it
    lacks proper policy to require a complete and consistent costing
    methodology that can identify the true fully-burdened and life-cycle
    costs.''
        ROA and REA support changes to U.S. Code to require DOD to use a
    costing methodology based on a true fully-burdened and life-cycle
    costing.
        The Reserve and National Guard should also be viewed as a
    repository for missions and equipment that aren't addressed in the
    administration's new Strategic Policy. They can sustain special
    capabilities not normally needed in peacetime.
        Part of the President's budget includes planned end strength
    reductions for both the Army and Marine Corps, by 80,000 and 20,000,
    respectively. It should be remembered that individuals cannot be
    brought quickly on to active duty on a temporary basis, as it is an
    accumulation of experience and training that is acquired over years
    that becomes an asset for the military. The Reserve is also a
    repository for these skills.
        In the Hamilton Project-National Defense in a Time of Change,
    authors ADM Gary Roughhead, USN (Ret.) and Kori Schake recommend that
    ``we must redesign our forces and budget to our strategy, and not to
    equal service share between branches. . . . Putting more of the
    responsibilities for ground combat into the combat-proven Reserve
    component is both consistent with the new demands of the evolving
    international order and justified by the superb performance of National
    Guard and Reserve units in our recent wars.''
        The study authors suggest that Congress should reduce the Army ``by
    200,000 soldiers from the 490,000 planned in the fiscal year 2013
    budget, and the [R]eserve and National Guard units would be increased
    by 100,000 and would have the principal mission of arriving in a mature
    theater for sustained combat.''
        Rather than be limited by historical thinking, and parochial
    protections, creative approaches should be explored. The Reserve
    component needs to continue in an operational capacity because of cost
    efficiency and added value. Further, the cost of the Reserve and
    National Guard should not be confused with their value, as their value
    to national defense is incalculable. Civilian skill sets add to the
    value of the individual serving member.
        To maintain a strong, relevant, and responsive Reserve Force, the
    Nation must commit the resources necessary to do so. Reserve strength
    is predicated on assuring the necessary resources-funding for personnel
    and training, equipment reconstitution, and horizontal fielding of new
    technology to the Reserve component, coupled with defining roles and
    missions to achieve a strategic/operational reserve balance.
    National Guard and Reserve Equipment Allowance
        The Reserve and National Guard are faced with ongoing challenges on
    how to replace worn out equipment, equipment lost due to combat
    operations and legacy equipment that is becoming irrelevant or
    obsolete. The National Guard and Reserve Equipment Allowance (NGREA)
    provide critical funds to the Reserve Chiefs and National Guard
    Directors to improve readiness throughout procurement of new and
    modernized equipment. Continued receipt of NGREA and congressionally
    added funding will allow the Reserve components (RC) to continue to
    close the Active/Reserve component modernization and interoperability
    gap.
    Merger of the Reserve and the National Guard
        Since the administration has a goal to consolidate infrastructure,
    there is a temptation by some to endorse merging the Reserve and the
    Guard as a means to save money. ROA and REA are against any such
    merger.
        The various Reserve components--Reserve and Guard--are serving well
    as currently organized. They both have distinguished traditions of
    service that should not be trampled without a definitive rational to do
    so. No case has been made that national security would be better served
    by a merger.
        A merger may limit the President's accessibility (ability to
    mobilize and use) to the Federal Reserve. There is some history
    reflecting noncooperation between Governors and the President when the
    latter has wished to utilize the National Guard. Access to the Reserve
    component combat commanders would be limited, with planners reducing
    the utilization of an operational reserve. The U.S. Army Reserve is now
    a Federal asset that can become a State asset (Guard); the U.S. Air
    Force Reserve has already flown support for State and disaster
    missions.
        Merging of the Guard and Reserve at a minimum would involve nearly
    three-quarters of a million personnel. The reorganization caused by a
    merger of the Nation's Reserve components would be a mammoth
    undertaking, costing more than suggested savings.
        No major defense figure has called for a merger--not the President,
    not the Secretary of Defense, none of the Service Secretaries, nor the
    Joint Chiefs, no combatant commander, and no Reserve Chief--Guard or
    Reserve. Indeed, the Reserve Chiefs of the USAR and USAFR oppose a
    merger. The calls for a merger have come from retired officers and
    State-level leadership with anecdotal and speculative opinion.
        REA and ROA would like to thank Congress and this committee for
    amending title 10, U.S.C., chapter 1209 of section 12304a that allows
    title 10 reservists to provide assistance during a time of major
    disaster or emergency, and for amending Section 515 of Chapter 1209
    that now authorizes Service Secretaries to activate Guard and Reserve
    members at times other than war or emergencies to augment the Active
    component. ROA and REA hope that the administration makes use of these
    new authorities by providing necessary funding.
    Quadrennial Defense Review.
        The QDR does not adequately utilize the Reserve and Guard in its
    national security review. The Reserve Forces Policy Board found that
    senior officials in the Office of the Secretary of Defense with
    responsibility for preparing the 2010 QDR did not ensure that it
    complied with the requirements of title 10, section 118, that specifies
    that the QDR include ``the anticipated roles and missions of the
    Reserve components in the national defense strategy and the strength,
    capabilities, and equipment necessary to assure that the Reserve
    components can capably discharge those roles and missions.'' The RFPB
    also noted that Government Accountability Office found that the QDR
    submitted to Congress in February 2010 did not meet this requirement.
        ROA plans to publish a white paper this summer that will discuss
    anticipated roles and missions for the Reserve and Guard as input to
    the 2014 Quadrennial Defense Review.

                                  RESERVE LIFE

        Reserve and Guard members have provided unprecedented service and
    sacrifice for the past decade. Congress should make a commitment to
    them to provide lifelong support for them through career growth,
    civilian employment, seamless health care, family support and deferred
    compensation that has been promised to them upon retirement. This will
    be an incentive to continue to serve.
    Continuum of Service
        A continuum of service influences the way the Nation uses
    individual servicemembers and the way it employs its Active and Reserve
    Forces. It enables an effective use of our most important national
    security asset: the men and women who are willing to serve in the Armed
    Forces. It allows them and their families to continue to serve
    throughout predictable life-status changes, and leverages their skills
    throughout a career that is unencumbered with unnecessary barriers.
        By consolidating Active and Reserve personnel procedures and
    policies, and permitting seamless transition between the Active and
    Reserve components, individuals can gain better control of their own
    careers, while the Services maximize the efficiency of force structure.
    A continuum would allow for flexibility and optimization of the Total
    Force by allowing special skills and functions to be activated as
    needed and returned to the Reserve component when not.
        Continuum of service is a human capital strategy that views Active
    (full-time) and Reserve (part-time) military service not as two
    elements of valuable service but as a continuation of service where a
    qualified individual can serve in different capacities and durations
    during his or her career. A continuum of service strategy recognizes
    the tremendous cost of accessing and training each servicemember and
    seeks to avoid unnecessary replication of such costs by accessing those
    skills rather than replacing them.
        Taken to its full potential, a continuum of service would require a
    re-examination of how service is credited and compensated, but would
    also allow for a more efficient management of our forces in a resource
    constrained environment.
        This will require a seamless continuity of military healthcare,
    supported by TRICARE; and an accumulative documentation of both Active
    and Reserve active duty service, published on a single DOD form, rather
    than a series of Certificate(s) of Release or Discharge from Active
    Duty (DD Form 214), whenever someone leaves active duty.
    Reserve Life Issues supported by the Reserve Officers and Reserve
            Enlisted Associations include:

        Changes to retention policies:
             Permit service beyond current mandatory retirement
            limitations.
             Eliminate the fiscal year barrier, permitting the
            accumulation of active service between 2 years.
             Retain serving members for skill sets, even when
            passed over for promotion.
             Support incentives for affiliation, reenlistment,
            retention and continuation in the Reserve component.
             Advocate against cuts in Reserve component; support
            Reserve commissioning programs.
             Reauthorize yellow ribbon program to support
            demobilized Guard and Reserve members.

        Pay and Compensation:
             Reject recommendations by The 11th Quadrennial Review
            of Military Compensation to reduce Reserve component pay for
            monthly inactive duty training in half.
             Reimburse a Reserve component member for expenses
            incurred in connection with round-trip travel in excess of 50
            miles to an inactive training location, including mileage
            traveled, lodging, and subsistence.
             Eliminate the 1/30th rule for Aviation Career
            Incentive Pay, Career Enlisted Flyers Incentive Pay, and Diving
            Special Duty Pay.
             Simplify the Reserve duty order system without
            compromising drill compensation.

        Education:
             Exempt earned benefit from GI Bill from being
            considered income in need based aid calculations.
             Increase MGIB-Selected Reserve (MGIB-SR) to 47 percent
            of MGIB-Active.
             Include 4-year reenlistment contracts to qualify for
            MGIB-SR.

        Spouse Support:
             Expand eligibility of surviving spouses to receive
            Survivor Benefit Plan (SBP)-Dependency Indemnity Clause (DIC)
            payments with no offset.
             Provide family leave for spouses and family care-
            givers of mobilized Guard and Reserve for a period of time
            prior to or following the deployment of the military member.

        Deferred Benefits and Retirement:
             Extend current early retirement legislation
            retroactively to Sept. 11, 2001.
             Change U.S. Code to eliminate the fiscal year barrier
            toward full credit toward early retirement.
             Promote improved legislation on reducing the Reserve
            component retirement age.
             Permit mobilized retirees to earn additional
            retirement points with less than 2 years of activated service,
            and codify retirement credit for serving members over age 60.
             Modify U.S. Code that requires repayment of separation
            bonuses if an individual receives a Uniformed Service
            retirement annuity.
             Continue to protect and sustain existing retirement
            benefits for currently retired.

        Voting:
             Ensure that every deployed servicemember has an
            opportunity to vote by:

                     Working with the Federal Voting Assistance
                    Program.
                     Supporting electronic voting.

             Ensure that every military absentee ballot is counted.

    Continuity of Health Care:
        REA and ROA support improving health care continuity to all
    drilling reservists and their families. While Transitional Assistance
    Management Program (TAMP) TRICARE and TRICARE Reserve Select (TRS) are
    good first steps, TRICARE is neither universally accepted nor
    accessible to everyone entitled.
        The President's decision to reduce 5,235 full-time positions in the
    Military Health System will force more military personnel and families
    into the TRICARE network, and by reducing the Prime Service Areas, will
    likely reduce the number of civilian providers who will accept TRICARE
    beneficiaries.
        Recent DOD policies on mobilization frequency of the Reserve and
    National Guard members set a goal of 1 year out of 5. This will make
    continuity of health care even more important to Reserve component (RC)
    members. ROA endorses enhancements to:

             Continue to improve health care continuity to all
            drilling reservists and their families by:

                     providing individuals an option of DOD paying
                    a stipend toward employer's health care,
                     extending TRS coverage to mobilization ready
                    IRR members; levels of subsidy would vary for different
                    levels of readiness,
                     allowing demobilized retirees and reservists
                    involuntarily returning to IRR to qualify for
                    subsidized TRS coverage,
                     extending TRICARE coverage from the time of
                    alert prior to mobilization,
                     allowing demobilized Federal employees the
                    option of TRS coverage.

             Fund restorative dental care prior to mobilization.
             Request a GAO Review of TRR premiums which currently
            do not support a continuity of healthcare.

        Reserve and Guard members experience problems when moving from
    their civilian health care to TRICARE while being deployed. They
    frequently must change physicians, which is extremely stressful for
    family members who require continuing care, such as a pregnant spouse
    or a family member who requires special care. Members and their
    families can also experience problems when returning to private
    healthcare insurance from TRICARE if there is a condition which began
    while in the TRICARE system.
        Additionally, REA and ROA view the military health care provided to
    retirees as an earned benefit. This is also a deferred incentive that
    encourages both Active and Reserve members to be retained. DOD health
    care inefficiencies and wartime expenses should not be a financial
    burden placed on these retirees. ROA and REA are grateful to Congress
    for the passage of TRICARE Standard coverage for gray-area reservists
    but hope that the Armed Services Committees can request a review of
    premium levels.

    Joint Military Professional Education--a need to expand.
        A deep bench of Joint Qualified Officers (JQO) is essential to
    military planning and operations in today's national security
    environment. The architects of the Goldwater-Nichols Act recognized
    this and attempted to codify standards and career milestones to build a
    robust cadre of Joint officers. Although this act makes no distinction
    between the Services' Active and Reserve components, obtaining JQO
    Level III status, which requires both joint experience and education,
    has proven much more challenging for members of the Reserve components
    (RC) to achieve. The primary reason is that opportunities for members
    of the RC to attain JPME Phase II credit or attend Senior-Level
    Education in residence are more limited than for the Active component
    (AC). Members of the RC typically complete Senior-Level Service School
    through their respective Services' distance education program.
        However, graduates of the Distance Education Programs (DEP) do not
    receive the JPME Phase II credit required to achieve the coveted JQO
    Level III status. So, in addition to completing a 12 to 24 month DEP,
    RC members aspiring to achieve JQO status must complete the Advanced
    Joint Professional Military Education (AJPME), a 10-month blended
    course, through Joint Forces Staff College. Altogether this can
    potentially add up to 34 months of education to achieve what most
    members of the AC do in 10 months at in-residence programs--despite the
    fact that nearly the same curricula standards apply to both the DEP and
    the resident education program (REP). To both provide equal access to
    achieve Level III status, and to better position the RC to continue to
    function as an Operational Force, barriers to educational achievement
    must be creatively addressed while not lowering standards.
        Solution--Amend title 10, U.S.C., and adjust policy to provide that
    nonresident graduates of accredited senior-level service school
    programs receive the same JPME credit as resident graduates. It is
    acceptable to also require that a certain amount of the non-resident
    curricula also deal with joint issues. Further, the laws should be
    amended that provide that graduates of the Joint Forces Staff College
    (JFSC) Advanced JPME course receive Phase II credit.
        Permit flexibility in the student and faculty ratios now required
    by title 10, U.S.C., to permit the nonresident programs to adjust and
    validate other ratios that would still yield a proper joint education.
    The waiving of the current ratios would be solely within the control of
    the Secretary of Defense although his discretion should be limited to
    permitting a maximum ratio of 80 percent faculty and students coming
    from the host institution to ensure cross-culturalization.
        ROA has suggested language to amend title 10, U.S.C., and will work
    with the committee to make these improvements.

                                   CONCLUSION

        ROA and REA restate our profound gratitude for the bipartisan
    success achieved by this committee by improving parity on pay,
    compensation and benefits between the Active and Reserve components.
    The challenges being faced with proposed budget cuts are going to make
    this committee's job that much harder.
        ROA and REA look forward to working with the personnel subcommittee
    where we can present solutions to these challenges and other issues,
    and offers our support in anyway.

        Senator Gillibrand. Thank you to each of you for your
    testimony and your advocacy and your service. We appreciate it
    very much.
        I wanted to start with Ms. Moakler just because you raised
    the issue of suicide. We are obviously still seeing a very high
    number of suicides by our servicemembers from those both
    returning from war and those who have never been deployed. In
    2012, the military hit a tragic record high of 349 suicides, or
    1 every 25 hours. This statistic obviously is heartbreaking and
    tragic, and should serve as a call to action for the DOD to do
    more to prevent our servicemembers from taking their own lives.
        Ms. Moakler, you said that you wished the families and the
    servicemembers had been included in the work they are doing.
    Can you amplify what you stated and give me more information?
        Ms. Moakler. Yes. Because of the need of accessing
    behavioral health care, because of perhaps not having access
    and the tools that they need to address the stress from
    deployment, we hear of many family members who have
    contemplated suicide or even have committed suicide. As a
    matter of fact, we have been hearing about three military
    children who have committed suicide just in Fairfax County over
    the past year.
        So while the tools are out there, how do we determine--how
    do we pinpoint what we can give to families to meet their
    needs? How do we get the information out to them so that they
    can realize that there is someone that they can reach out to
    before they take drastic steps?
        Senator Gillibrand. From other members on the panel, I
    would like your thoughts on this. Obviously we have a lot of
    challenges after separation. There is often a stigma associated
    with seeking mental health services. There is the Yellow Ribbon
    program and other programs we have often do not continue beyond
    the first year. Oftentimes post-traumatic stress disorder and
    other traumatic brain injuries (TBIs) manifest themselves over
    time, and so suicide becomes an issue over time.
        What are some of your thoughts on this issue and how we
    should respond to it as a committee?
        Chief Barnes. Madam Chairman, I would thank you for your
    attention to this issue and for the question. I know from my
    own personal experience while on active duty, I can speak to
    the tremendous stigma associated with seeking counseling and
    admitting the need for counseling. That continues. That a major
    motivator, as you mentioned.
        I believe it is a leadership issue with regard to--from the
    top down within the Department to uniform leaders with trying
    to communicate the importance of seeking counseling, and also
    educating servicemembers about the importance of that, not just
    with regard to suicide, but with regard to PTS and TBI
    conditions and whatever the signature conditions associated
    with service in Iraq and Afghanistan.
        But I think that is really, really important to emphasize
    and try to address the stigma associated with that. I agree
    with the importance of looking at this more broadly with regard
    to family members and dependents.
        Thank you.
        Colonel Strobridge. Madam Chairman, I have to say there is
    a certain amount of intransigence to this problem. But I think
    there is at least some similarity to the sexual assault issue.
    Both of these are highly traumatic kinds of situations. They
    are deeply personal. People are, in many cases, very reluctant
    to come forward.
        But I do think that there is an institutional element to
    that stigma. Just as you have talked about holding the command
    responsible for the sexual assault issues, we have had many
    cases, very frankly, where there was pretty atrocious behavior
    by people in the chain of command telling people, ``suck it
    up,'' ``you do not have a problem,'' ``get back to work,''
    those kinds of things. We even had a very senior officer--it
    was several years ago--actually prosecuted a lieutenant colonel
    for attempting to commit suicide against the advice of the
    surgeon general.
        To my knowledge, I have never heard of anybody being
    relieved for that kind of behavior. To me, I think that is one
    of the reasons why the stigma persists, because people see no
    penalty for the people who do engage in that behavior. Now, I
    have no doubt about the sincerity of the leadership in pursuing
    this, but I think in the chain of command, whether it is a
    senior noncommissioned officer, or an O-3, or an O-5, or an O-
    6, or a flag officer who tolerates the behavior or participates
    in that behavior. The person suffers the consequences, but the
    person who imposed that intimidating factor does not, that
    sends a message.
        Senator Gillibrand. We, in the last NDAA, asked for a
    study, particularly about hazing. We said suicide resulted from
    a couple of hazing incidents. They happened to be New Yorkers.
    So we asked for an analysis by the military on incidents of
    hazing and how to get rid of it and how to address the issue.
    Ms. Moakler, you said that you were requesting that we ask for
    a study similarly for military families on suicide rates, which
    I think is a very fine suggestion.
        Captain Hanson, do you have any thoughts you want to add to
    this debate?
        Captain Hanson. Thank you. I was noticing how everybody was
    so quick going for the talk button. It just shows you how
    impassioned we are all on this issue.
        The challenge for the Reserve and Guard is the fact that
    when they return home, they do not have the same type of ties
    to military bases that the members of the Active Duty component
    have access to. So there are more challenges out there for
    getting them assistance, and there have been some good
    programs. TriWest worked on, for example, embedding mental
    health professionals right into units prior to deployment so
    that when these people returned, they had rapport already
    established.
        Also the expansion that both DOD and the TRICARE
    contractors are working on of providing civilian mental health
    providers out in the field closer to the reservists and guard
    members has already been very helpful.
        But one program that I would encourage is basically peer
    counseling. One thing you learn if you ever come in contact
    with a combat veteran is they feel comfortable only talking
    with someone else who has been through the same experiences. I
    think this is an important program to expand.
        Senator Gillibrand. Senator Ayotte.
        Senator Ayotte. Thank you very much. I want to thank all of
    our witnesses who are here today for their service and
    particularly the important organizations that you represent for
    our men and women in uniform and our veterans.
        I wanted to follow up on this idea, Captain Hanson, on the
    Guard and Reserve assistance. I noticed in your prepared
    testimony you talked about the Yellow Ribbon Reintegration
    Program. As you mentioned New Hampshire in that program,
    because we have a deployment cycle support program that is
    really trying to put together the public resources from the
    Guard and then mirroring it with Easter Seals in terms of
    private resources to be able to provide our Guard and Reserve
    members support because they do not have--they do not go back
    to a base, so they do not have that group of peers that are
    even there or the active duty support structure.
        So I wanted to get your thoughts. I know that you cite our
    program in it, and I am very proud of it. But one of the
    concerns that I have had is I have asked our military leaders
    to come and see it so that it is one thing if New Hampshire or
    Virginia or some other State has it, but every Guard and
    Reserve member across this Nation and their families deserve
    that type of support because we could not have fought the wars
    in Iraq and Afghanistan without their help. They go through the
    same traumatic issues and have so many issues that their
    families need support for, yet that structure is not there the
    same as in the active duty.
        I wanted to get your thoughts on what more we can do to
    move this so that there is some consistency and national
    emphasis on this.
        Captain Hanson. Well, Senator, I think you hit the nail on
    the head by suggesting better communications. New Hampshire,
    Minnesota, Montana, Maryland have all had outstanding programs,
    and one of the successes is sharing what each is doing rather
    than developing things independently. I think the lessons
    learned definitely have to be communicated.
        I have to commend DOD that they have taken some special
    action to do that, and each of the Services have also shared.
    Coming from a Navy background, I know the Navy learned from the
    other Services, so it included such things as bringing family
    members into Yellow Ribbon and finding financing to help the
    more junior people to be able to afford to attend these things.
    In fact, in many cases for the Yellow Ribbon Program, they are
    now soliciting private money for the States to assist in some
    of the financing that's occurring.
        Senator Ayotte. I can tell you in our program, the Veterans
    Count is a non-profit organization, so we are raising money
    privately to match the Federal dollars to have the community
    involved as well. But that does not take away the
    responsibility of the Federal Government, given what we have
    asked our Guard and Reserve members to do, along with our
    Active-Duty Forces in fighting the wars for our country and for
    our Nation.
        Captain Hanson. One of the things that other States have
    done that they share with New Hampshire is going out into the
    community because it is important to teach community leaders
    about what type of stresses that returning members from
    deployment are going to be facing. Not that these individuals
    should not be responsible for their activities, but it has been
    pointed out that there is an adrenalin withdrawal after
    deployment, and a lot of substitute activities occur. The more
    people know about it, the more they can understand the
    situation.
        Senator Ayotte. Ms. Moakler, do you have anything to add to
    this because the family piece of this is incredibly important
    as well in the support structure.
        Ms. Moakler. Well, I think that--I am sorry. I wanted to
    bring this up under the last set of questioning. Recently we
    became aware of a program in the chairwoman's home State of New
    York in Bay Shore, Long Island, where the VA has partnered with
    a local counseling hospital, organization, corporation, and the
    veterans, and, of course, our returning guardsmen and
    reservists are eligible for care and counseling from the VA as
    they return from deployment, as well as those who separate from
    service are offering counseling for the servicemember.
        It is done in cooperation with the private counseling, and
    so the families are able to access that, and then, oh, my
    goodness, the doctors talk to each other, so they are able to
    treat the families as a whole and deal holistically with the
    reintegration problems that they might be having.
        Senator Ayotte. Thank you. Mr. Strobridge, thank you for
    your service. I wanted to ask you about the TRICARE increases
    that are proposed in the President's budget. You had testified
    the concerns you have, the opposition that you have to those
    increases. You identified that you believe that the Services
    have not undertaken some of the hard work of looking for
    efficiencies. There has been a lot of discussion in the past
    about, for example, consolidation of health care commands.
        I wanted to get your thoughts on what types of efficiencies
    and work should our Service bureaus be doing and should we be
    emphasizing with them rather than going back again to those who
    have served and asking them to pay--there are some very
    significant increases proposed here.
        Colonel Strobridge. Yes, Senator. We believe very strongly
    that the military health care system is built to meet the
    requirements of the Services, to meet the requirements of
    readiness. That is different from being built to meet the needs
    of the beneficiaries.
        The military is unique. The beneficiaries need--you need to
    serve readiness. It has that unique role. However, when people
    start talking about having the beneficiaries share some
    percentage of DOD health costs, those kinds of things have to
    be brought into the equation. When the system is built to have
    three different Service surgeons general and DOD running four
    different major contracts, and tons of subcontracts, and they
    are all competing with each other one way or another for budget
    share, that is not the way you or I would organize the system
    if we are trying to be efficient.
        So there is a part of that that is, if it is the right way
    to do business, it is an institutional cost. When we deploy
    doctors, we send more beneficiaries downtown, which costs DOD
    more money. That is not the beneficiary's fault. The
    beneficiary should not have to pay for that.
        When we implemented the mail-order pharmacy system in 2001,
    for the first 6 years there was no DOD effort whatsoever to try
    to get people to use it, even though at that time, every
    prescription was $100 cheaper through the mail-order system. We
    actually were pushing. Just the preventive care kinds of
    issues, DOD just put out a big program saying we have--we are
    now paying for smoking cessation. Well, they only did that
    because you had to put something in the law requiring them to
    do it, and then they took 4 years to implement it, and they
    still do not cover Medicare eligible beneficiaries.
        Another example, on the chronic conditions. What is the
    most important way to hold down long-term health care costs for
    people with asthma, for people with diabetes, those kinds of
    things? It is for them to take their medications. There are
    studies that show that even a modest co-pay deters people from
    taking their medications.
        One of the things we had urged DOD to do was eliminate the
    co-pay for those chronic condition medications. Instead, we
    just jacked them up, and DOD is proposing to triple them. This
    just is not cost efficient.
        Senator Ayotte. Thank you for your testimony. I want to
    thank all of you for being here.
        Senator Gillibrand. Senator Kaine.
        Senator Kaine. I also want to thank you, Madam Chairman,
    and committee members.
        I feel better having you guys on the case. I have a son in
    the military, and it is good to know that there are great
    advocates like you out there battling for him. To those of you
    who are completing this chapter of service with more to come,
    thank you for that.
        I kind of feel like I am in a schizophrenic world in the
    Senate because I go to Budget Committee meetings where a
    primary message is we are not cutting enough spending, and I go
    to Armed Services Committee meetings where a primary message is
    that the cuts that are being made or being proposed are too
    severe. Sometimes even the schizophrenia combines, so when
    active, major military figures say that the deficit is the
    number one security challenge, which we have had that testimony
    before us, it is challenging to know how to negotiate these
    icebergs and be pro-military, pro-armed services, and yet try
    to deal responsibly with a budget.
        I think we would all say if we looked at deficits right
    now, they are not what we want them to be, and we want to
    manage them in a significant way, but do it right, and do it
    consistent with obligations.
        Colonel Strobridge, you were testifying earlier about
    TRICARE, and I was sort of struck. Your opposition as a
    coalition, you were speaking on behalf of the coalition, your
    opposition to the TRICARE proposals, but you are not opposed to
    reform. It is just this particular one you do not like because
    you cited in response to Senator Ayotte's question a whole
    series of reforms or avenues for reform that you think should
    be done.
        If I am--I think I am accurate in this that the coalition
    in the past has also supported a number of reforms that have
    been done to health care or retirement on the military side.
        So you are not an anti-reform coalition. You have supported
    reform efforts to try to find savings, is that not true?
        Colonel Strobridge. Yes, Senator, that is very true. When
    DOD, 2 years ago, proposed far more modest fee increases, they
    proposed a 13 percent increase in TRICARE prime, they proposed
    $2 and $3 increases in pharmacy co-pays, we took some heat for
    not objecting to those because we had really strongly objected
    to previous DOD proposals for a far higher increase.
        We had always said, look, if you talk about--we are about
    principles. One of the big problems here is that DOD did go a
    long time without exercising authority it had to do any fee
    increase. What that meant, what that told beneficiaries each
    year was that we do not think fees are appropriate, any
    increases are appropriate.
        Senator Kaine. Right.
        Colonel Strobridge. When you do that for a decade at a
    time, people kind of get the impression that it is not
    appropriate. Then you get a new Secretary of Defense, and we
    got a new budget problem. He says, let us quadruple the fees.
        Senator Kaine. Right.
        Colonel Strobridge. That is----
        Senator Kaine. Unacceptable.
        Colonel Strobridge.--unacceptable.
        Senator Kaine. Yes, absolutely.
        Colonel Strobridge. What we have been after is trying to
    put principles in law: what are the fees, what is the reason
    for the fees, what is the adjustment methodology? We have done
    pretty much that over the last couple of years working with the
    subcommittee.
        Senator Kaine. You mentioned something I completely agree
    with, raising the notion, for example, that military benefits,
    health care or otherwise, be means tested would be very
    discriminatory given the fact that we do not generally means
    test other Federal health or retirement programs.
        I am not asking you to advance an organizational position,
    but clearly the idea of means testing broadly is an idea that
    is being kicked around a lot here. I agree it would be very
    unwise to do this on the military side without doing it more
    broadly.
        But has the coalition or organization talked more broadly
    about what it thinks about means testing strategies if it
    really was a society-wide approach to dealing with some of our
    spending or deficit issues?
        Colonel Strobridge. Yes, sir, we have. We draw the
    distinction between programs--when you look at the programs
    that are means tested, they are either--you do not like to use
    the term ``welfare programs,'' but there are those kinds of
    things. They are social insurance programs. Social security is
    means tested. You get different benefits based on how much you
    earned. Medicare is means tested. You pay different premiums
    based on how much you earn. But none of those is earned by
    decades of service, and that is the difference. To us, if your
    benefit is earned by service as an employee, then that benefit
    should not be means tested.
        We have had proposals in the past to say we should means
    test military retired pay or military retired pay cost-of-
    living adjustments. What that boils down to is if you get a
    job, you lose your retirement, or if your spouse gets a good
    job, you lose your retirement.
        Then what do we tell someone we are trying to induce to
    serve 20 years under the conditions we have had, the war time
    conditions we have had over the last decade? Do we tell them if
    you serve these years, you will get these benefits, unless you
    get a good job, even if we kick you out of the Service in your
    40s or 50s, or unless you marry a spouse who has a job, in
    which case we will cut your benefits. Is that a message that we
    want to send to people? Do we think that is a good career
    attractant? I do not.
        Senator Kaine. Just extending the metaphor for the
    discussion, what about non-military Federal employees?
        Colonel Strobridge. I think that is the same thing, sir.
    When people make a decision to make a career, they are looking
    ahead to see what you earn for that. What you earn for your
    service is different than what you get from social security or
    from Medicare that is open to every American regardless of
    whether they work for the military or work for the government
    or not.
        Senator Kaine. Just to make sure I understood your point.
    When you said earlier that to means test military without
    programs would be discriminatory, would be, and in my view that
    would be wrong. But even if we looked at means testing, you
    would draw a distinction between means testing social welfare
    programs like Medicaid, for example, might be allowable or in
    accord with principles. Means testing programs that are--like
    social security and Medicare where you are chipping in out of
    your salary might be allowable, but would not be allowable
    either for programs associated with military service or public
    employment.
        Colonel Strobridge. It is bad policy as an employer to tell
    your employees that the benefits they earn by serving you for
    decades are conditional. You are not going to tell them what
    the conditions are.
        Senator Kaine. Yes, and I agree. If it was only a matter of
    employment law we were thinking about, you would be right. If
    we are dealing also with the reality of deficits and budgets
    that all of us as citizens have some desire and maybe even a
    citizen's obligation to try to fix, it is not just a matter of
    employment law and practice.
        Colonel Strobridge. Well, in the end it is, sir, because
    this is my last time here. I started working military
    compensation issues in 1977. That was in the middle of a
    terrible erosion of benefits. We had another one in the late
    1990s. We do this periodically, and we always do it because of
    budget cutbacks, and we always rationalize.
        You made the point, what is the ultimate? Is recruiting and
    retention okay? Well, when you are drawing down the force,
    recruiting and retention is always okay. We have used that in
    the past to say, gee, we cannot afford it. It is unaffordable
    if you project the costs out in the future, so we cut
    retirement benefits in 1986. They said the same thing we have
    today. Oh, gee, we cannot change the rules, so it will only
    apply to new people, as if that would not affect the new
    people. All that does is kick the problem 10 years downstream.
    We had to repeal it because then the new people ultimately
    would not stay.
        We rationalized annual pay caps by saying retention is
    fine, so we can cut pay again. That is like driving by looking
    in the rear view mirror. You never see the problems ahead, and
    you keep doing it until you cause a retention problem. Then you
    have to scramble to pay even more to repair the force, and you
    end up with a hole in the force because a lot of people got
    out.
        That is the consequence of the budget mentality, and that
    is why we have worked so hard over decades literally to put
    these principles in law. Congress only put the pay standard in
    law in 2003 because we learned the lessons of the past and we
    said, we do not want to do that anymore. The standard should be
    whatever the average American gets is what the military should
    get, and that is supposed to apply through good times and bad.
        Now, the practical reality is it does not. We always cut
    when we are having budget--and we always pay it, and we always
    say when the problem comes, gee, we have to learn from that. We
    will never do it again. Here we go again.
        Senator Kaine. Does your organization--last question--ever
    take a position on big picture issues like the right and wrong
    ways to deal with deficit and spending? Do you deal with it all
    with cuts? Do you deal with it with revenue increases? Do you
    take positions on that?
        Colonel Strobridge. I think it is safe to say that we have
    some of the same problems with taking a stance on revenue
    increases that you all do.
        Senator Kaine. Yes. We have a divided--we have a citizenry
    that is of multiple opinions about it.
        Colonel Strobridge. Yes, sir.
        Senator Kaine. I guess we are all in the same boat there.
    Thank you a lot. Thanks, Madam Chairman.
        Senator Gillibrand. Senator King.
        Senator King. Thank you. I apologize for being late. I was
    at a----
        Senator Gillibrand. We will conclude at 4 p.m. in time for
    votes, so there is enough time for you to have a full----
        Senator King. I was at a full committee hearing on the
    issue of Syria with Secretary Hagel and General Dempsey.
        A couple of questions following up on the exchange, and
    please feel free to chime in. Just to be sure I have the
    numbers right, as I have been told, the TRICARE fees for
    enlisted--for active duty are zero. They are covered. We are
    really talking about retirees, and the rates I have been told
    are $270 for an individual, $540 for a family. Are those in the
    ballpark? Is that right?
        Chief Barnes. A little low.
        Senator King. A little low? How low? Can you give me a
    number?
        Colonel Strobridge. It is pretty close.
        Senator King. I think it is important just to know what we
    are talking about.
        Colonel Strobridge. For TRICARE prime for a family, it is
    now $539. I think that is about what you said.
        Senator King. Yes, $540 is what I said. Okay.
        Colonel Strobridge. About half that for the single people.
    But we kind of rush to say that is not the full premium people
    pay. That is what they pay in cash.
        Senator King. Okay. What else do they pay?
        Colonel Strobridge. We tell people if you want to
    understand the full premium people pay, it is--would you be
    willing to sign up to spend the next 20 or 30 years being
    deployed to Afghanistan on a regular basis.
        Senator King. I understand that. I am going to get to that
    next.
        Colonel Strobridge. No, that is it.
        Senator King. I am going to get to that next.
        Colonel Strobridge. Most people are unwilling to do that.
        Senator King. But that is the number.
        Colonel Strobridge. Yes, that is the cash annual enrollment
    fee.
        Senator King. So the next question is, and I think you make
    a good point that you should not--if you are contracting with
    people essentially that you should not change the terms of the
    deal. When people sign up with the military, do they know $540
    a month is what they are going to have to pay for their health
    care in 20 years? In other words, what are they told at
    enlistment about health care benefits?
        Colonel Strobridge. They are not told details. They are
    told words like, you will have health care for life.
        Senator King. Is there an implication that it is free?
        Colonel Strobridge. In many cases, as you said, while they
    are on active duty, they are not paying it, and so many of them
    interpret it as meaning that. Many are very surprised that they
    have to pay anything once they retire. Many are surprised to
    learn they cannot go to the military facility anymore. They
    have to go find a civilian doctor. To a lot of people, that
    does not seem like much. To a military person or anybody who
    has spent their 20 or 30 years in one health care system,
    changing is traumatic.
        Senator King. But the question is, and perhaps, Madam
    Chairman, we could see the documents. I would like to see what
    somebody is given when they sign up. They must be given terms
    of employment, and it would be interesting to see what they are
    told about health care, and whether, in fact, it is part of
    what they are contracting for when they sign up.
        Colonel Strobridge. Well, I used to write some of those,
    and I have seen a lot of others. I have never seen one that is
    handed to someone with 4 to 10 years of service that lays out
    specific premiums that will be paid in the future.
        Senator King. But you understand the line of my questions.
        Colonel Strobridge. Yes.
        Senator King. You are essentially saying this is a contract
    that we are making with somebody when they sign up that they
    are going to get this health care in the future. I would like
    to know is that, in fact, the case.
        Colonel Strobridge. I guess that is a little firmer way
    than I would say it. That is----
        Senator King. Moral obligation?
        Colonel Strobridge. Well, I would come to say that there
    need to be some standards. I do not think you are ever going to
    brief any person when they are coming up to reenlistment on all
    the details of what they will earn if they stay.
        Number one, if they are 15 or 20 years away from
    retirement, Congress may well change it. So you cannot
    guarantee what they will get, and that is one reason why they
    are vague. But they say you will have health care for life. You
    will earn X amount of retired pay. They do not say, well,
    unless you get disabled in the line of duty, in which case you
    may have to give up part of your retired pay if you also get VA
    compensation. Or you may have to pay X amount of money for
    health care, because I do not know what the health care fees
    are going to be 15 years from now.
        Senator King. I am not being argumentative. I am new to
    this committee, so I am trying to understand and learn.
        Colonel Strobridge. Sure, absolutely.
        Senator King. But as I understand it, if you retire from
    the military and you are a doctor and you set up a practice,
    and you are an orthopedic surgeon and make half a million
    dollars a year, your health care costs would still be $540 a
    year. Do you think that is okay?
        Colonel Strobridge. Yes, sir, I do because number one, that
    person is probably not using TRICARE. He is probably in a
    facility where he is getting care on his own. So, you have to
    take those kinds of things into consideration.
        But the issue is, did your Service earn the benefit or not?
    Very simple yes or no question.
        Senator King. That was the point of my prior questions. I
    am trying to get to the bottom of that of was that an
    expectation.
        Colonel Strobridge. Absolutely.
        Senator King. Chief Barnes.
        Chief Barnes. Senator, we take an oath of office when we
    join the military. We do not necessarily sign a contract. One
    observation. The second point, within our association, we are
    communicating with three generations, those that are currently
    serving, those that are currently serving ends of careers and
    moving into retirement, and those that have served in the past,
    going back to the Korean and sometimes World War II conflicts
    and that era.
        The older retirees are adamant with regard to commitments
    that were made to them in return for their service. Many
    believe they are entitled to health care for life, and many
    attest to being promised free health care for life. This has
    been tried in the courts. This is an issue. We reference this.
    This is a huge issue with them, their periods of service, them
    coming forward serving our Nation, and then how they were
    treated subsequent to their service.
        Another point with regard to the TRICARE fees, those are
    adjusted annually based on inflation. There was a point made
    earlier about the many years that DOD declined to adjust fees,
    the TRICARE prime fees. I asked that question when I was much
    younger and doing legislative service work in meetings with the
    Department over that period of time. This is a commitment.
        Going back to my comments, and I think the comments of my
    colleagues here that is coming through, military service is
    unlike any other occupation or career field. It is essential
    that the pay and benefits associated with that service are
    unique and reflect that service. I believe that is----
        Senator King. I completely agree with that statement. I
    completely agree with that statement and understand it
    entirely. I am just trying to determine--it would be
    interesting to survey 21-year-olds who have enlisted and ask
    them what their expectations are.
        Colonel Strobridge. If I could comment on that. I think the
    expectations--a 21-year-old is probably not even thinking about
    it. They probably never gave two thoughts to it. It is at some
    point between the 4- and 10-year point where people get
    married, have children, start thinking about financial
    responsibilities, start thinking about do I want to keep doing
    this for a career or not. That is when they start weighing the
    sacrifices expected of them versus the rewards that they are
    likely to receive if they complete a career.
        Very few people sit down and do the research to say exactly
    how much is it. They do some basics. They may look at a pay
    table and say, here is today's pay table. Here is what a
    colonel with 26 years of service makes, get a rough idea of the
    retirement. They probably do not do any investigation on health
    care. They assume, I think, that their health care will
    continue the way it is now, and they make those judgments.
        Senator King. Well, I understand. Madam Chairman, I know I
    am out of time. Just one more quick observation.
        The sequester, which many think is a 1-year deal, is not.
    It is in the law for 10 years. The cuts that are coming, unless
    we can unwind that in some way, are drastic. The impact on the
    military is going to be and already is drastic.
        From the point of view of the people you represent, you
    need to understand that you have a stake in how we collectively
    resolve this problem because if we are unable to do something
    realistic about it and have to absorb those cuts, these kinds
    of things are going to be very difficult, very difficult,
    because we are talking, in the next 6 months almost $50 billion
    out of DOD, and multiply that by 10 in addition to the cuts
    that were made in the bill in August 2011.
        There is a lot of discussion around here about these budget
    cuts. They are real. They are going below the level of--they
    are real cuts. They are not just cuts in growth.
        So I urge you to think broadly as we are wrestling with
    this issue because there is no way to make those cuts without
    impacting virtually everybody in the military system. That is
    just reality.
        Senator Gillibrand. Thank you, Senator King.
        Thank each of you for your testimony. Thank you for your
    service. Thank you for being advocates. We appreciate it. Your
    written statements will be made part of the record.
        We also received a statement, for the record, from the
    National Association of Chain Drug Stores. Without objection,
    it will be included in the record.
        [The information referred to follows:]

      Prepared Statement by The National Association of Chain Drug Stores

                                  INTRODUCTION

        The National Association of Chain Drug Stores (NACDS) thanks the
    subcommittee for the opportunity to submit a statement for today's
    hearing on the President's fiscal year 2014 budget.
        NACDS represents traditional drug stores, supermarkets, and mass
    merchants with pharmacies--from regional chains with four stores to
    national companies. Chains operate more than 41,000 pharmacies and
    employ more than 3.8 million employees, including 132,000 pharmacists.
    They fill over 2.7 billion prescriptions annually, which is more than
    72 percent of annual prescriptions in the United States.
    community pharmacy are the most readily accessible healthcare providers
        Ninety-two percent of Americans live within 5 miles of a community
    pharmacy, making pharmacies among the most accessible healthcare
    providers. Local pharmacists play a key role in helping patients to
    take their medications as prescribed and offer a variety of pharmacist-
    delivered services to improve health quality and outcomes. With
    preventive immunizations and appropriate medication use, it is possible
    to reduce utilization of costly medical services such as emergency room
    visits and unnecessary physician visits. The proximity of community
    pharmacies to each and every American and pharmacists' exceptional
    knowledge and training renders pharmacies uniquely positioned to
    provide care for the American public.

           PHARMACIST-ADMINISTERED VACCINATIONS IMPROVE PUBLIC HEALTH

        Increasingly, local pharmacies are not only a reliable, convenient
    source for obtaining prescription drugs, but also a healthcare
    destination. For example, retail network pharmacies now provide
    vaccinations to TRICARE beneficiaries. Recognizing the cost
    effectiveness of pharmacist-provided vaccinations, the Department of
    Defense (DOD) authorizes TRICARE beneficiaries to obtain vaccinations
    at a retail network pharmacy for a $0 co-payment. In its final rule
    expanding the authority of retail pharmacies to provide vaccinations,
    DOD estimated that in the first 6 months of the immunization program,
    it had saved over $1.5 million by having vaccinations provided through
    the pharmacy rather than the medical benefit (Federal Register, Vol.
    76, No. 134, p. 41064). This cost savings did not take into
    consideration the savings from medical costs that would have been
    incurred in treating influenza and other illnesses, if TRICARE
    beneficiaries had not been vaccinated. In addition, DOD also noted in
    the final rule that ``adding immunizations to the pharmacy benefits
    program is an important public health initiative for TRICARE, making
    immunizations more readily available to beneficiaries. It is especially
    important as part of the Nation's public health preparations for a
    potential pandemic, such as was threatened last fall and winter by a
    novel HlNl virus strain. Ensuring that TRICARE beneficiaries have ready
    access to vaccine supplies allocated to private sector pharmacies will
    facilitate making vaccines appropriately available to high risk groups
    of TRICARE beneficiaries'' (Federal Register, Vol. 76, No. 134, p.
    41063).

      MEDICATION THERAPY MANAGEMENT IMPROVES HEALTH OUTCOMES AND REDUCES
                                    SPENDING

        Medication Therapy Management (MTM) is a distinct service or group
    of services that optimize therapeutic outcomes of medications for
    individuals based on their unique needs. MTM services increase
    medication adherence, enhance communication and collaboration among
    providers and patients, optimize medication use, and reduce overall
    healthcare costs. Increasingly, MTM services provided face-to-face by
    retail pharmacists is proving to be the most effective intervention.
    For example, a recent study published in the January 2012 edition of
    Health Affairs demonstrated the key role retail pharmacies play in
    providing MTM services to patients with diabetes. The study found that
    a pharmacy-based intervention program increased patient adherence and
    that the benefits were greater for those who received counseling in a
    retail, face-to-face setting as opposed to a phone call from a mail-
    order pharmacist. The study also suggested that an integrated,
    pharmacy-based program, including interventions such as in-person,
    face-to-face interactions between the retail pharmacist and the
    patient, contributed to improved behavior with a return on investment
    of 3 to l.
        A recent report by the Centers for Medicare & Medicaid Services
    (CMS) found that Medicare Part D beneficiaries with congestive heart
    failure and COPD who were newly enrolled in the Part D MTM program
    experienced increased medication adherence and discontinuation of high-
    risk medications. The report also found that monthly prescription drug
    costs for these beneficiaries were lowered by approximately $4 to $6
    per month and that they had nearly $400 to $500 lower overall
    hospitalization costs than those who did not participate in the Part D
    MTM program. NACDS is confident that the TRICARE program could achieve
    similar results with an effective MTM program utilizing local
    pharmacists.

          PRESERVING PATIENT ACCESS AND CHOICE IN THE TRICARE PROGRAM

        NACDS is opposed to the proposal in the President's budget to make
    further changes to pharmacy co-payments and other policies that would
    further drive TRICARE beneficiaries out of their local pharmacies and
    to the TRICARE Mail-Order Pharmacy (TMOP). There are already strong
    incentives in place to encourage beneficiaries to use mail order, as a
    result of provisions in the National Defense Authorization Act for
    Fiscal Year 2013. Nevertheless, the President's budget includes
    additional changes. In most cases, TRICARE beneficiaries would be
    unable to obtain non-formulary medications at their local pharmacy.
    Furthermore, cost sharing will increase to as much as $34 for a 30-day
    supply of a formulary medication at retail, and as much as $66 for a
    90-day supply of a non-formulary medication at TMOP.
        In addition to unfairly penalizing TRICARE beneficiaries who prefer
    to use local pharmacies, NACDS believes this proposal is pennywise and
    pound foolish. Failure to take medications as prescribed, costs the
    U.S. health system $290 billion annually, or 13 percent of total health
    expenditures, as estimated by the New England Healthcare Institute in
    2009. Threatening beneficiary access to prescription medications and
    their preferred healthcare provider will only increase the use of more
    costly medical interventions, such as physician and emergency room
    visits and hospitalizations.
        NACDS supports cost savings initiatives that preserve patient
    choice. For example, the utilization of generic medications by TRICARE
    beneficiaries is low in comparison with other plans. The generic
    dispensing rate at retail pharmacies--78 percent in 2012--is higher
    than any other practice setting. Partnering with local pharmacists,
    modest increases in generic utilization by TRICARE beneficiaries would
    have a dramatic impact on the DOD budget.

                                   CONCLUSION

        Thank you for the opportunity to share our views. We look forward
    to working with you on policies that control costs and preserve access
    to local pharmacies.

        Senator Gillibrand. Thank you all for your testimony today.
        Hearing adjourned.
        [Questions for the record with answers supplied follow:]

              Question Submitted by Senator Kirsten E. Gillibrand

                    DEPARTMENT OF DEFENSE LABORATORY HIRING

        1. Senator Gillibrand. Mr. Vollrath, the strength of our military
    not only resides in the outstanding capabilities of our service men and
    women, but also in the technological edge that they hold on the
    battlefield. Crucial to developing this technological edge are the
    60,000 men and women of Department of Defense's (DOD) laboratory
    enterprise spread across 22 States--half of whom are degreed scientists
    and engineers. As DOD competes with industry for the best and brightest
    scientists and engineers, it needs certain flexibilities to be rapid in
    its hiring and aggressive in its retention of this segment of its
    workforce. What flexibilities are you giving to the DOD laboratories to
    recruit and retain the best and brightest scientists and engineers?
        Mr. Vollrath. DOD labs are using numerous human resources
    flexibilities aimed at quickly recruiting the most skilled scientists
    and engineers, allowing for competitive salary offers through the use
    of pay banding, and rewarding high performers through contribution-
    based and pay-for-performance programs. Lab demonstration projects have
    access to Federal Government hiring processes, and are experimenting
    with numerous flexibilities to attract, hire, and retain high quality
    candidates. These flexibilities include Expedited Hiring Authority,
    Direct Hire Authority, and use of interns. Additional specifics are
    below:

             The Labs have robust educational programs offering
            internships to students from high school through post-graduate
            school. These programs provide meaningful training and career
            development opportunities for individuals who are at the
            beginning of their Federal service. Programs include the
            Pathways Intern Programs, Recent Graduates Program, and the
            Science, Mathematics, and Research for Transformation
            scholarship program for students pursuing degrees in Science,
            Technology, Engineering, and Mathematics (STEM) disciplines.
             A Voluntary Emeritus Program or Corps offering retired
            or separated employees volunteer positions, thus providing
            mentorship from highly seasoned professionals.
             Acquisition Workforce Expedited Hiring Authority,
            National Defense Authorization Act (NDAA) for Fiscal Year 2009,
            section 833, as amended by NDAA for Fiscal Year 2010,
            authorizes expedited hiring for positions in Acquisition
            Workforce career fields for which there is a shortage of
            candidates or a critical hiring need.
             Of special significance to the demo enterprise is the
            direct hire authority to appoint candidates with advanced
            degrees (Masters and Ph.D.) to scientific and engineering
            positions non-competitively. This legislative authority,
            established in fiscal year 2009 and amended in fiscal year
            2011, has significantly increased the laboratories' ability to
            compete with private industry in quickly making firm job
            offers.
                                     ______

                 Questions Submitted by Senator Lindsey Graham

                  HEALTHCARE EFFICIENCY AND COST EFFECTIVENESS

        2. Senator Graham. Dr. Woodson, more work needs to be done to
    deliver healthcare efficiently within military hospitals and clinics.
    What are you and the Services' Surgeons General doing to make the
    delivery of healthcare services more efficient and cost-effective in
    those facilities?
        Dr. Woodson. At this time the Military Healthcare system is
    undergoing a comprehensive transformation that will streamline our
    decisionmaking and management in our largest medical markets and
    assessing the effectiveness of our current inventory of hospitals'
    ability to maintain a ready medical force and meet beneficiary
    healthcare needs. The Services are fully engaged with us in these
    efforts that will consolidate our approach to provide cost-effective
    and efficient delivery of health care to all our beneficiaries. We will
    achieve Initial Operating Capability of the new governance structure on
    October 1, 2013 and Full Operating Capability on October 1, 2015.

             CIVILIAN FURLOUGHS: IMPACT ON FAMILY SUPPORT PROGRAMS

        3. Senator Graham. Secretary Wright, we are concerned about the
    potential impact of civilian furloughs on critically important family
    support programs. If furloughs take place, do you expect any cutbacks
    in operating hours at commissaries, exchanges and child development
    centers or curtailment of morale, welfare and recreation, Department of
    Defense Education Activities programs, transition assistance program,
    or military spouse employment programs?
        Secretary Wright. Sequestration will impact funding across the
    board for family programs and services, and civilian furloughs will
    impact civilian positions that provide fitness, child care and family
    programs at the Installation level. The Department remains committed to
    providing military families with support programs and resources that
    empower them to address the unique challenges of military life, these
    programs are crucial to the readiness and quality of life of military
    members and their families; however impacts to programs and services
    may be unavoidable.

    Commissaries
        Furlough will result in the closure of each commissary 1 day a
    week.

    Exchanges
        Nonappropriated Fund (NAF) employees are not covered by the
    requirements and procedures applicable to furloughs of appropriated
    fund employees under fiscal year 2013 sequestration. However, if the
    reduction in appropriated fund resources leads to a curtailment in MWR
    or exchange business operations, NAF employees may be furloughed for
    business-based reasons.

    Child Development Centers
        Child development programs impact approximately 200,000 children
    daily. Guidance issued by the Secretary of Defense on May 14, 2013
    exempting NAF employee and designated appropriated fund (APF) staff
    ensures that the daily operation of the installation child development
    and school-age care programs will not be negatively impacted by
    furloughs.

    Family Programs
        Impacts of furloughing family program personnel at the installation
    level include the possible closure or reduction in services of Military
    and Family Support Centers. Access to relocation support, financial
    counseling and education, deployment support, exceptional family member
    services, non-medical counseling, employment support, and transition
    assistance, could all be curtailed due to manpower shortages. Impact of
    furloughing National Guard and Reserve family program personnel in
    Reserve Family Assistance Centers may reduce capacity and hours based
    upon the length of the furlough.

    Morale, Welfare and Recreation Programs
        Civilian furloughs will result in reduced hours of operation and
    services. Access will be limited for fitness centers, libraries,
    outdoor recreation; recreational information, tickets, tours, and
    travel services; recreational swimming; recreation centers; arts and
    crafts skill development; automotive crafts skill development; lodging
    and Armed Forces Sports Programs (above intramural level) may be
    curtailed.

    Department of Defense Education Activity (DODEA)
        DODEA employees will be subject to furlough for up to 5 days at the
    beginning of the 2013-2014 school year. Regardless of the number of
    furlough days, DODEA will ensure that all students will have a robust
    academic year. School staff will ensure that students receive a full
    year of academic study and school accreditation will not be impacted.

    Transition Assistance Program
        Transition Assistance Program (TAP) provides servicemember's career
    readiness training prior to discharge from the Military. We don't
    currently anticipate major delays in the redesign of the TAP due to
    sequestration, furloughs, and the hiring freezes. The Military
    Departments are on track to comply with law, the Veterans Opportunity
    to Work to Hire Heroes Act, and the Presidential Veteran Employment
    Taskforce mandates.

    Military Spouse Employment Programs
        Military Spouse Employment programs may face a delay in services on
    installations due to shortage of personnel to provide services. A
    furlough may degrade the quality of the event should contributing
    agencies be unable to support or assist in the planning and
    implementation.

                        EMERGENCY DEPARTMENT UTILIZATION

        4. Senator Graham. Dr. Woodson, TRICARE's average cost of an
    emergency department visit is $541 in the private sector while the
    average cost for an urgent care visit is only $88 per visit. Yet,
    TRICARE requires beneficiaries to get a pre-authorization before they
    can get urgent care. Understandably, there are no pre-authorization
    requirements for emergent care. Essentially, TRICARE has created a
    disincentive for beneficiaries to use the less costly urgent care
    option. How much money could DOD save if TRICARE removed the urgent
    care pre-authorization requirement entirely?
        Dr. Woodson. DOD could save an estimated $21 million per year by
    removing the urgent care pre-authorization requirement entirely. On
    October 1, 2013, we will implement a demonstration intended to test
    whether permitting active duty family members (ADFMs) to receive urgent
    care in the private sector without a referral from their PCM will
    result in decreasing emergency room (ER) visits and health care costs.
    Under the demonstration, ADFMs enrolled in TRICARE Prime or TRICARE
    Prime Remote will be permitted to have four urgent care private sector
    visits per year without the need to first obtain a referral from their
    primary care manger. The hypothesis of the demonstration is that ADFMs
    often seek care in private sector ERs for conditions that are not
    actually urgent because they are subject to a point-of-service charge
    for obtaining care from an urgent care clinic without having a referral
    to do so.

        5. Senator Graham. Dr. Woodson, how soon could DOD implement
    policy/program changes and begin to achieve savings in this area?
        Dr. Woodson. On October 1, 2013, we will implement a demonstration
    intended to test whether permitting ADFMs to receive urgent care in the
    private sector without a referral from their PCM will result in
    decreasing ER visits and health care costs. Under the demonstration,
    ADFMs enrolled in TRICARE Prime or TRICARE Prime Remote will be
    permitted to have four urgent care private sector visits per year
    without the need to first obtain a referral from their primary care
    manger. The hypothesis of the demonstration is that ADFMs often seek
    care in private sector ERs for conditions that are not actually urgent
    because they are subject to a point-of-service charge for obtaining
    care from an urgent care clinic without having a referral to do so.

                   MILITARY HEALTH SYSTEM MODERNIZATION STUDY

        6. Senator Graham. Dr. Woodson, DOD issued a Resource Management
    Decision directing a comprehensive review of Military Health System
    capabilities and requirements. What is the intent of this review?
        Dr. Woodson. The intent of the review is to assess the DOD's
    clinical delivery system and identify opportunities to increase our
    ability to maintain the clinical skills of our uniformed providers to
    assure availability of a ready medical force while improving
    effectiveness and efficiency of care delivery.

        7. Senator Graham. Dr. Woodson, what is the timeline for this
    review?
        Dr. Woodson. This review is ongoing and will be completed by
    September 30, 2013.

        8. Senator Graham. Dr. Woodson, do you expect your recommendations
    will include downsizing of facilities and personnel?
        Dr. Woodson. It is too early to forecast the recommendations of the
    Modernization Study because the data and models are still in
    development. The study will develop options to sustain the clinical
    skills of our uniformed providers while assuring availability of a
    medically ready force and improving effectiveness and efficiency of
    care delivery. Options will be developed that maintain or enhance
    access to care by evaluation of alternative delivery approaches.

                       IMPACT OF SEQUESTRATION ON TRICARE

        9. Senator Graham. Dr. Woodson, Under Secretary Hale has told us
    that DOD may stop paying private sector medical claims this summer as a
    result of the budgetary impact of sequestration. If so, this would
    damage DOD's managed care support contractors' relationships with
    providers. What other options has DOD explored to prevent a delay in
    claims reimbursements to protect the integrity of the TRICARE provider
    network?
        Dr. Woodson. In order to minimize the impact on the Direct Care
    system and TRICARE, we intend to take risk in other areas, such as
    reducing Facility Sustainment, Restoration and Modernization projects;
    implementing a civilian hiring freeze; reducing equipment purchases;
    strictly limiting travel; reducing or cancelling contracts; and
    implementing a civilian furlough. Additionally, we have taken a
    reduction in our core research and development program. All of these
    actions are designed to preserve resources in order to maintain our
    ability to provide care in the Direct Care system and to continue to
    pay TRICARE claims and avoid harming the network.

        10. Senator Graham. Dr. Woodson, what will be the impact on
    individual and institutional providers in local communities if their
    claims are not paid timely?
        Dr. Woodson. Sequestration could have a potentially ruinous effect
    on the provider network if we are forced to slow or suspend claims
    payments. We have spent years building a provider network that has come
    to recognize us as a reliable payer. Our goal is to maintain these good
    relationships and sustain the provider network intact despite the
    challenges posed by sequestration.

        11. Senator Graham. Dr. Woodson, how might this damage the future
    of TRICARE provider networks?
        Dr. Woodson. It has taken us years to build our robust health care
    network. Our strategy is to maintain that to the best of our ability
    despite the devastating impact that sequestration will bring in other
    areas. We intend to take substantial risk in other areas, such as
    Facility Sustainment, Restoration and Modernization, in order to
    continue to pay TRICARE claims and avoid harming the network.

                              PURCHASED CARE VALUE

        12. Senator Graham. Dr. Woodson, DOD's fiscal year 2012 budget
    requests almost $16 billion to purchase healthcare services in the
    private sector. We understand why you need to purchase some services
    from civilian providers and hospitals, but we are concerned that your
    budget asks for almost twice the funding for private sector healthcare
    than for healthcare provided in military hospitals and clinics. How do
    you know if DOD and its beneficiaries are getting good value for
    dollars spent in the private sector healthcare?
        Dr. Woodson. The cost of health care services in the private sector
    is a key concern of the Department. We believe we are getting a good
    value for dollars spent in the private sector via provider discounts
    obtained through TRICARE managed care network contracts as well the
    TRICARE provider reimbursement rates being statutorily tied to the
    Medicare reimbursement rates. For beneficiaries enrolled in TRICARE
    Prime, our managed care option, our referral and authorization
    procedures ensure only timely and necessary private sector care is
    being provided to Prime enrollees, regardless of whether they are
    enrolled to a military treatment facility (MTF) primary care manager
    (PCM) or to a civilian PCM.
        Through beneficiary surveys, we know our customers often prefer to
    receive health care services at a MTF versus in the private sector. The
    Department will continue to work to expand the capacity and
    capabilities of the MTFs as we welcome returning medical professionals
    from the war theaters and through initiatives such as the reengineering
    that will occur as part of the Defense Health Agency standup.

        13. Senator Graham. Dr. Woodson, do you have data to show that
    beneficiaries who get care from civilian providers are actually getting
    healthier?
        Dr. Woodson. No. We are actively working to provide access to
    preventive services and treatment, and to engage our patients in a
    partnership to preserve and even improve their health. However,
    measures of health outcomes (i.e. data that they are getting healthier)
    are still difficult to obtain. TMA has beneficiary survey data that
    looks at such issues as obesity, tobacco use and utilization of
    preventive screening services. Trending data for both the purchased and
    direct care sectors shows a slight decline in smoking rates over the
    past 3 years and an obesity trend that is flat. While we do collect
    Healthcare Effectiveness Data and Information Set data for both the
    direct and purchased care, and we do have data for both of these
    sectors on such things as colorectal cancer screening, breast cancer
    and cervical cancer screening, this doesn't tell us if our population
    is getting healthier. It tells us only we are screening for these
    diseases. To answer the question if the population is healthier as a
    result of these screenings would require additional data on whether we
    avoided disease as a result of these screenings, which we do not
    currently have. TMA also currently does not perform a health risk
    assessment either in the direct or purchased care sector, which would
    give self-assessment information on the health of the individual, and
    in aggregate, the population.

                    INTEGRATED DISABILITY EVALUATION SYSTEM

        14. Senator Graham. Secretary Wright, it is unconscionable that
    servicemembers must wait many months to receive a disability
    determination from the Department of Veterans Affairs (VA). While DOD
    and VA have made some progress in decreasing the amount of time it
    takes to get disability claims completed in the Integrated Disability
    Evaluation System (IDES), more work must be done. Why are the
    Departments not meeting goals?
        Secretary Wright. The Department shares your concerns regarding
    IDES processing time and we are aggressively taking action to reduce
    the cycle time.
        Specifically, over the last 6-months we've decreased the time
    necessary to process servicemembers through the medical evaluation
    board (MEB) portion of the IDES 39 percent (132 days to 80 days
    average). We've also decreased physical evaluation board (PEB) time 25
    percent (133 days to 100 days average). As a result, many of these MEB
    and PEB cases are now nearing completion as they move through the IDES
    Transition and VA Benefit Phases. If these trends continue and once we
    work through the bow wave of cases the acceleration has created in the
    later portions of the IDES, by December 2013, we expect servicemembers
    to complete the entire IDES in significantly fewer days. We attribute
    the improvement to the following:

             Increased IDES staff levels by 127 percent (676
            personnel) over the last 2 years.
             Authorized the Services to use Ph.D. psychologists (in
            addition to psychiatrists) to adjudicate behavioral health
            cases.
             Reduced Informal Physical Evaluation Board membership
            from 3 to 2 to increase their capacity to process cases.
             The Army improved its Medical Evaluation Board
            timeliness by 74 percent (reduced from 117 to 31 days against
            100-day goal) at select locations by segmenting Soldiers into
            cohorts of simpler versus complex cases.
             The Army placed 15 Reserve Soldiers at VA's Seattle
            Disability Rating Activity Site to ensure VA has all the DOD
            information it requires to complete IDES disability case
            reviews and claims adjudication.

        15. Senator Graham. Secretary Wright, what are DOD and VA doing to
    expedite claims through the system?
        Secretary Wright. The Department shares your concerns regarding
    IDES processing time and we are aggressively taking action to reduce
    the cycle time.
        Specifically, over the last 6-months we've decreased the time
    necessary to process servicemembers through the MEB portion of the IDES
    39 percent (132 days to 80 days average). We've also decreased PEB time
    25 percent (133 days to 100 days average). As a result, many of these
    MEB and PEB cases are now nearing completion as they move through the
    IDES Transition and VA Benefit Phases. If these trends continue and
    once we work through the bow wave of cases the acceleration has created
    in the later portions of the IDES, by December 2013, we expect
    servicemembers to complete the entire IDES in significantly fewer days.
    We attribute the improvement to the following:

             Increased IDES staff levels by 127 percent (676
            personnel) over the last 2 years.
             Authorized the Services to use Ph.D. psychologists (in
            addition to psychiatrists) to adjudicate behavioral health
            cases.
             Reduced Informal Physical Evaluation Board membership
            from three to two to increase their capacity to process cases.
             The Army improved its Medical Evaluation Board
            timeliness by 74 percent (reduced from 117 to 31 days against
            100-day goal) at select locations by segmenting soldiers into
            cohorts of simpler versus complex cases.
             The Army placed 15 Reserve soldiers at VA's Seattle
            Disability Rating Activity Site to ensure VA has all the DOD
            information it requires to complete IDES disability case
            reviews and claims adjudication.

        16. Senator Graham. Secretary Wright, do you believe the VA is
    doing all that it can do to decrease the amount of time for disability
    case reviews and claims adjudication?
        Secretary Wright. I do believe the VA is doing all that it can do
    to decrease the amount of time for disability case reviews and claims
    adjudication. VA and DOD continually work to improve the quality of
    service and timeliness for our servicemembers who transit the IDES.
    Most recently, VA requested and DOD agreed to position 15 Reserve
    servicemembers at VA's Seattle Disability Rating Activity Site to
    ensure VA has all DOD information it requires to complete IDES
    disability case reviews and claims adjudication.

        17. Senator Graham. Secretary Wright, does the VA need additional
    resources to hire more claims adjudicators?
        Secretary Wright. I do not have the required knowledge of the VA
    resourcing, their internal business processes, and disability claims
    processing rates to make that assessment. We are committed to working
    closely with the VA where we can to put enablers in place and enhance
    the completeness of the information which we provide which will help
    eliminate the backlog.

                    MILITARY TRAINING INSTRUCTOR MISCONDUCT

        18. Senator Graham. Secretary Wright, your combined statement
    indicated a DOD-wide review and assessment was conducted of all initial
    military training of enlisted personnel and commissioned officers
    following the incidents at Joint Base San Antonio-Lackland. What were
    the results of that review and what actions have been taken?
        Secretary Wright.
    Background:
        The Army, Navy and Marine Corps performed a comprehensive
    assessment of their IMT using the U.S. Air Force Lackland Report as a
    basis from which to review and validate their own policies, procedures,
    and training. The Lackland report and subsequent follow-on reports
    served as the Air Force's assessment.
    Results of Review:
        The assessments revealed that although the Army, Navy, and Marine
    Corps conduct IMT in their own Service-specific manner, the majority of
    the recommendations from the Lackland Report were established practices
    throughout each of these Services. The Army, Navy, and Marine Corps
    reports describe in detail their internal control mechanisms that
    ensure proper instructor behavior and monitoring to include extensive
    leadership presence and oversight. In addition, each Service provides
    explicit guidance on behavior and expectations for leadership,
    instructors and support staff. Some areas of improvement were
    identified by each Service, but no misconduct or disciplinary concerns
    were cited. Areas needing improvement include ensuring sufficient
    manning of instructor and leadership positions, the assignment of
    appropriate numbers of female instructors and enhancing SAPR training
    delivery through the use of additional adult learning methods.
    Actions Taken:
        The Army, Navy and Marine Corps are all working towards achieving
    the optimum manning levels and improving the quality of instruction
    provided. The Air Force continues to make significant progress in
    addressing the concerns raised in the Lackland Report, and numerous new
    procedures and policies have been successfully implemented. Of the few
    remaining recommendations cited in the Lackland Report that have not
    been implemented to date, full implementation is expected by the end of
    the fiscal year. In addition, as recommended in the Lackland report,
    the multi-Service Council of Recruit Basic Training (CORBT) was
    established to provide a venue by which the Services can share best
    practices and identify potential areas of concern. The CORBT held its
    first meeting in April 2013 and will meet on a quarterly basis with
    general/flag officer representatives from each of the Services'
    Training Commands in attendance.

                        PROTECTING PROSPECTIVE RECRUITS

        19. Senator Graham. Secretary Wright, a recent tragic case in
    Maryland appears to have been a murder/suicide involving a prospective
    recruit and her recruiter. What guidance has DOD provided to ensure
    that prospective recruits and their parents or guardians are fully
    aware of the limits for relationships with recruiters?
        Secretary Wright. Each of the Services has policies and procedures
    in place to ensure that prospective recruits are fully aware of the
    limits for relationships with recruiters. During the recruitment
    process applicants are given a card or document that outlines
    acceptable behavior regarding applicant/recruiter relationships. As
    applicants progress through the recruitment process, more detailed
    information is provided. Applicants are free to share this information
    with their parents or guardians.
        In a recent memorandum to the Service Secretaries, the Secretary of
    Defense directed each to review current practices and policies to
    ensure they are effective at protecting our newest and aspiring
    servicemembers. These Secretary of Defense-directed assessments will
    include: (1) the selection, Sexual Assault Prevention and Response
    (SAPR) training, and oversight of recruiters; (2) the dissemination of
    SAPR program information to potential and actual recruits; and (3) the
    prevention and education programs in ROTC environments and curricula.
    The findings will be reported to Secretary of Defense through me by
    September 30, 2013.

        20. Senator Graham. Secretary Wright, what information does DOD
    require to be provided to prospective recruits to ensure that they have
    immediate access to assistance and intervention, if necessary, if they
    believe a recruiter is intending to take improper advantage of them?
        Secretary Wright. The Services provide applicants with contact
    information in the early part of the recruiting process. Applicants can
    use this information if they believe a recruiter has acted improperly.
    As applicants progress through the recruitment process, more detailed
    information is provided regarding appropriate recruiter behavior. In a
    recent memorandum to the Service Secretaries, the Secretary of Defense
    directed each to review current practices and policies to ensure they
    are effective at protecting our newest and aspiring servicemembers.
    These Secretary of Defense-directed assessments will include: (1) the
    selection, Sexual Assault Prevention and Response (SAPR) training, and
    oversight of recruiters; (2) the dissemination of SAPR program
    information to potential and actual recruits; and (3) the prevention
    and education programs in ROTC environments and curricula. The findings
    will be reported to Secretary of Defense through me by September 30,
    2013.

                    DEFENSE SEXUAL ASSAULT INCIDENT DATABASE

        21. Senator Graham. Secretary Wright, your combined statement
    indicated DOD has achieved full-deployment of the congressionally-
    mandated Defense Sexual Assault Incident Database (DSAID). What
    information, specifically, is DSAID providing DOD leadership concerning
    sexual assault incidents?
        Secretary Wright. The DSAID is a centralized system to collect and
    maintain information on sexual assaults involving members of the Armed
    Forces. Since achieving full-deployment, DSAID has been giving our
    Sexual Assault Response Coordinators (SARCs) an enhanced ability to
    manage victim cases and assistance. SARCs input and maintain sexual
    assault case data, important documentation, and victim support history
    throughout the case lifecycle. DSAID tracks referral services to assess
    response efforts provided to victims in both the long and short-term.
    Tracking referral of services allows SARCs to better manage cases by
    accessing cases electronically, identifying cases for review and
    follow-up, and facilitating case management meetings. SARCs also use
    DSAID to document other information, such as the prevention and
    response training sessions they provide.
        Victims benefit from the improved tools in DSAID as well. Victims
    receive improved care and assistance through DSAID's case management
    and meeting features, referral services tracking, and storage of the
    official form documenting the vicitm's unrestricted reporting option
    (DD Form 2910, Victim Reporting Preference Statement). To comply with
    recent legislation, we will be expanding DSAID's capability to
    confidentially store the DD Form 2910 in restricted reports. DSAID's
    storage capability for DD Form 2910 provides a central location from
    which victims may request access to this documentation. Access to
    records like this becomes very important to victims who may choose to
    pursue VA benefits.
        DSAID also provides military service Sexual Assault Prevention and
    Response (SAPR) Program Managers with the capability for improved case
    management oversight, enhanced trend analysis, and access control for
    sexual assault personnel working in their Service.
        On October 1, 2012 all sexual assault reports were being entered
    into DSAID through interface with a Military Service data system, or by
    direct data entry by authorized personnel. Prior to fiscal year 2012,
    historical data is not contained in DSAID because this data was not
    standardized across the Services. This year, DOD is closely monitoring
    the information entered into DSAID, conducting information assurance
    activities, and updating reporting modules to comply with legislation
    in the NDAAs for Fiscal Year 2012 and Fiscal Year 2013. The Department
    will use DSAID as its primary means to fulfill congressional reporting
    requirements beginning in fiscal year 2014.

        22. Senator Graham. Secretary Wright, what additional tools does
    DOD need in order to continue to reduce--with the goal of eliminating--
    sexual assault?
        Secretary Wright. At this time, we believe the Department's
    strategic plan, Secretary of Defense-led initiatives, and unified data
    collection activities will help us reduce sexual assault.
        Our data collection efforts are supported by the DSAID, which is a
    centralized system to collect and maintain information on sexual
    assaults involving members of the Armed Forces. DSAID is standardizing
    data collection and reporting in support of the Department and each
    Service's sexual assault prevention and response program. The
    availability of electronic data will also enable reports and queries to
    be generated quicker than in the past. DSAID will ease the burden of
    difficult and timeconsuming data collection, trend analysis, and
    reporting. The Department will use DSAID to meet congressional
    reporting requirements beginning this next fiscal year.
        To fully leverage DSAID's functionality, the Department plans to
    evaluate additional data analysis means in fiscal year 2014. Expanding
    DSAID's current capabilities beyond operational reports to a complex
    analysis system will allow us to better understand the factors that
    influence reporting, victim assistance and accountability efforts. This
    expanded capability will deliver the data needed by leadership and
    stakeholders to better understand our progress in eliminating sexual
    assault from the military.

                          COMMAND CLIMATE ASSESSMENTS

        23. Senator Graham. Secretary Wright, what percent of commands
    conduct command climate assessments?
        Secretary Wright. One hundred percent of commands are expected to
    participate in command climate assessments. Commands are composed of
    several organizations and units all of which participate in the command
    climate assessments. If less than 50 persons are assigned to an
    organization or unit, a command climate assessment will be conducted at
    a higher level of the command to protect the anonymity of the
    servicemembers participating in the assessment. Existing DOD guidance
    requires all commanding officers to assess their organizational
    climate, preferably upon assumption of command, and to schedule follow-
    up assessments periodically during their command tenure.

        24. Senator Graham. Secretary Wright, what is DOD doing to improve
    the regularity of command climate assessments?
        Secretary Wright. Command climate assessments involve the use of
    surveys, record reviews, and interviews to evaluate shared perceptions
    on formal or informal policies, practices, and procedures within an
    organization. Topics include, but are not limited to, equal
    opportunity, equal employment opportunity, and how well the
    organization functions as a team. We have considered commanding
    officers to be accountable for command climates in their organizations
    in DOD guidance since 1995.
        In a memorandum to the Service Secretaries and Service Chiefs on
    May 6, 2013, the Secretary strengthened current guidance by adding
    mandatory questions addressing sexual harassment and sexual assault to
    climate assessment surveys; requiring command climate assessments to be
    conducted 120 days after assumption of command; and annually thereafter
    directing command climate assessment results to be reported to the next
    level-up in the chain-of-command beginning in July 2013.

        25. Senator Graham. Secretary Wright, what is DOD doing to evaluate
    the results of the command climate assessments to ensure necessary
    follow-up action?
        Secretary Wright. The evaluation of climate survey results will
    rest with senior level military commanders within the chain of command.
    From an oversight perspective, I am particularly interested in noting
    that command climate assessments address the perceptions of
    servicemembers regarding equal opportunity and fair treatment related
    to policies and practices within the unit; the ability of the
    organization to function as a team; and the extent to which each
    servicemember feels like a valued member of the team.
        Additionally, as part of the 2013 Sexual Assault Prevention
    Response (SAPR) Strategic Plan, the Secretary of Defense directed the
    Service Chiefs, through their Service Secretaries, to develop methods
    to assess the performance of military commanders in establishing
    command climates of dignity and respect to include incorporating sexual
    assault prevention and victim care principles, and hold commanders
    accountable. The methods for accomplishing this action must be reported
    to the Secretary of Defense through my office.
        Reviews of the Service methods called for in the SAPR Strategic
    Plan will provide my office the opportunity to exercise the required
    oversight to ensure the Department's efforts are on track.

                       FEDERAL VOTING ASSISTANCE PROGRAM

        26. Senator Graham. Secretary Wright, what is your assessment of
    the performance of DOD's Federal Voting Assistance Program (FVAP) and
    when will Congress receive the report on the 2012 Federal election
    cycle?
        Secretary Wright. The Department's preparation, voter assistance
    provision and outreach during the 2012 election cycle were the best
    they have ever been, due in large part to the FVAP's strong
    partnerships with the Military Services, the Department of State, and
    State and local election officials.
        FVAP engaged Flag Officers and Senior Enlisted Advisors to increase
    awareness of the right to vote and the ease of voting absentee. Voting
    Assistance Officers (VAOs,) trained by FVAP, sponsored voter
    registration drives at installation exchanges and commissaries, and
    events to increase awareness and encourage voting participation. Mass
    emails to all military members were deployed multiple times to reach
    all servicemembers and military dependents on installations, and voting
    notifications were printed on servicemembers' Leave and Earnings
    Statements. FVAP also provided in-person and online training to
    Installation Voter Assistance Offices and Unit VAOs.
        In addition, FVAP teamed with State and local election officials to
    share expertise and best practice recommendations on policies and
    procedures affecting military and overseas citizen voters. FVAP
    provided direct and online training to ensure these officials were
    aware of the Federal requirements as well.
        The Department conducted comprehensive communications and outreach
    campaigns leading up to the November election. FVAP made online tools
    available to guide voters to a completed registration or ballot request
    (the Federal Post Card Application (FPCA) or back-up ballot--the
    Federal Write-In Absentee Ballot) to be signed and submitted by the
    voter. The FVAP.gov portal was enhanced to provide more direct-to-the-
    voter assistance, including links to local election official
    information and State-specific information and forms. FVAP included
    print advertisements in The Military Times, Stars and Stripes, and
    Military Spouse magazine, complemented by online ads using behavioral,
    contextual and geographic targeting to reach military and overseas
    voters. FVAP also utilized the social media channels Facebook, Twitter
    and LinkedIn to share timely absentee voting deadlines and procedures.
        The FVAP 2012 election report will be delivered by June 30, 2013.
    The data gathered and lessons learned from the 2012 election will be
    used toward continued program improvements for the 2014 and 2016
    election cycles.

                           OPERATION TEMPO OVERSIGHT

        27. Senator Graham. Secretary Wright, what is your assessment of
    the Services' Operation Tempo (OPTEMPO) reporting and how well are we
    meeting our OPTEMPO requirements to reduce stress on our servicemembers
    and their families?
        Secretary Wright. Keeping in mind that high OPTEMPO can cause undue
    stress for servicemembers and their families, we continue to carefully
    manage the dwell time of our forces across the Department and monitor
    the Services' achievements in meeting the established goals. We are
    encouraged that the Services are at or above the deployment to dwell
    objective (1x deployment: 2 x home) for the Active component.
        We monitor and report this objective by quarter through our
    readiness reporting system. For fiscal year 2013, all of the Services
    have met or exceeded this deployment to dwell goal. Specifically:

             The Navy achieved its goal of 95 percent of sailors
            meeting a 1:2 deployment to dwell ratio;
             The Marine Corps goal is also 95 percent and had 97
            percent of marines achieve the goal;
             The Air Force goal is 95 percent and had 97 percent of
            its airmen achieve the goal;
             The Army goal is 85 percent and had 92 percent of its
            soldiers achieve the goal.

                         LANGUAGE AND CULTURE TRAINING

        28. Senator Graham. Secretary Wright, having military members with
    language and culture training are essential to a U.S. global force. The
    NDAA for Fiscal Year 2013 authorized the Secretary of Defense to
    transform the National Language Service Corps from a pilot to a
    permanent program, and also enhance the ability of our Federal agencies
    to hire people with strategic foreign language skills and as National
    Security Education Program awardees. What are DOD's goals with respect
    to the capabilities represented by the National Language Service Corps?
        Secretary Wright. As a result of the NDAA for Fiscal Year 2013, DOD
    will formally establish the National Language Service Corps by July 31,
    2014. In order to respond to increasing demands for foreign language
    skills, the Department plans to increase membership in the National
    Language Service Corps from the current 4,200 to at least 5,500 and
    expand the number of languages/dialects represented from 283 at present
    to at least 350, by fiscal year 2015.
        This increase will provide greater opportunities for the Corps to
    respond to requests in areas such as strategic language support
    operations (interpretation, translation, and analysis), training
    (instruction), logistics activities, emergency relief activities, and
    administrative language support services to Federal Government domestic
    and international activities.

                           MARKETING AND ADVERTISING

        29. Senator Graham. Secretary Wright, one effect of sequestration
    was that DOD quickly moved to end Service advertising, marketing, and
    outreach programs that have been used to aid in recruiting. What is
    your assessment of the value of funding these programs, and the
    projected impact to recruiting if these programs are not funded?
        Secretary Wright. Advertising and marketing programs create a means
    to maintain a high level of awareness of the opportunities and benefits
    provided by military service. In today's world of non-stop media, it is
    important that the Services have the resources to reach prospective
    applicants through a multitude of marketing activities. Research shows
    there has been a gradual reduction in the number of people who know
    someone who has served or is currently serving in the military. Combine
    this with the fact that only 25 percent of our youth are qualified to
    serve, and advertising and marketing become critical to keeping
    propensity to serve at a level necessary to sustain the All-Volunteer
    Force. Awareness and interest in military service is only achieved over
    time with repeated exposures to the opportunities available in today's
    military. By reducing the funding for these programs, the Military
    Services run the risk of reducing awareness and interest over the long-
    term with the greatest impact being felt in future recruiting efforts.

                           FLEXIBLE SPENDING ACCOUNTS

        30. Senator Graham. Secretary Wright, the administration has still
    not implemented flexible spending accounts to enable military families
    to pay health care and child care expenses with pre-tax dollars. When
    can we expect these flexible spending accounts to be established?
        Secretary Wright. The Department does not support establishing
    flexible spending accounts (FSA) due to the administrative cost of
    these programs and the corresponding limited benefit to servicemembers.
        There are two types of FSAs: Dependent Care FSA (DCFSA) and Health
    Care FSA (HCFSA). Annual direct agency costs per member (2013) would be
    $15 for a DCFSA and $16.20 for an HCFSA. According to a 2010 Tricare
    Management Activity (TMA) survey, less than 20 percent of respondents
    indicated interest in participating in an FSA. Yet, the cost to DOD
    each year could be as much as $3.8 million and $4.3 million for a DCFSA
    and HCFSA, respectively. Additionally, the participation rates could be
    even lower than 20 percent given DOD civilian employee participation
    rates for 2012 were 1.5 percent for DCFSAs and 10.1 percent for HCFSAs.
    These costs and anticipated low participation rates argue against
    establishing FSAs.
                                     ______

                  Questions Submitted by Senator Kelly Ayotte

                                MILITARY VOTING

        31. Senator Ayotte. Secretary Wright, it is our moral duty to
    protect the civil rights of our men and women in uniform and their
    families. They make tremendous sacrifices in the defense of our Nation,
    but those sacrifices should not include their right to vote. I believe
    DOD should treat military voting the same way it treats Servicemember
    Group Life Insurance (SGLI). Every time a servicemember changes a duty
    station or in-processes to or out-processes from a unit, DOD actively
    has the servicemember reconfirm their SGLI status. Why can't DOD treat
    registering to vote the same way it treats SGLI?
        Secretary Wright. We agree with you and DOD does treat voting
    rights like SGLI in that at each transition point in their military
    careers individuals are provided the opportunity to apply for voter
    registration or request an absentee ballot. As individual States run
    elections, a voter's completed form is sent directly to the State or
    local election official where the voter is requesting registration. We
    take the following specific actions:

        1.  DOD Instruction 1000.04 requires Installation Voter Assistance
    Offices to be included in the administrative in- and out-processing
    activities of reporting and detaching personnel.
        2.  Voting assistance is also required to be provided to all
    personnel, military and civilian, who are reporting for duty on an
    installation, detaching from duty and when deploying and returning from
    deployment.
        3.  The Instruction requires the registration and absentee ballot
    request form to be delivered by January of each year and again by July
    of even-numbered years.
        4.  The Instruction requires the Military Services to provide
    annually training on absentee registration and voting procedures to all
    servicemembers, including activated National Guard and Reserve
    personnel.
        5.  The FVAP focuses on promoting awareness of the right to vote
    and providing non-partisan tools and resources to vote from anywhere in
    the world. Resources available include the FVAP.gov web portal, an
    information-rich website with live chat assistance and online wizards
    that walk the individual through the process of registering, requesting
    a ballot, or using the back-up ballot (Federal Write-In Absentee
    Ballot).
        6.  FVAP also sends email reminders to all servicemembers with a
    ``.mil'' address, publishes voting notifications on servicemembers'
    Leave and Earnings Statements and uses Public Service Announcements,
    social media, and print and online media.

                     NATIONAL GUARD YOUTH CHALLENGE PROGRAM

        32. Senator Ayotte. Secretary Wright and Secretary Wightman, why
    did DOD cut training services to the entire field well below the
    National Guard Bureau standards, in order to address a small number of
    chronic underperformers by hiring a new and apparently duplicative
    contractor in a near dollar-for-dollar trade-off?
        Secretary Wright and Secretary Wightman. In fiscal year 2013, DOD
    was faced with funding restrictions during the continuing resolution
    period and fiscal challenges due to sequestration reductions. DOD
    placed a priority on fully supporting NGYCP at the maximum DOD cost
    share of 75 percent to ensure continued program operations and cadet
    development. The strategy to ensure operations resulted in restricting
    discretionary spending in other areas; such as staff training and
    travel. Our review revealed that training standards for NGYCP staff
    have not yet been fully certified. Since most NGYCP staff training is
    considered discretionary by the states and currently varies from state
    to state, we are working with National Guard Bureau (NGB) to establish
    staff training criteria. Results will be included in the program's
    annual report to Congress. The goal of these assessments is to find the
    best methods for each individual program to maintain and deliver staff
    training by leveraging existing DOD and other Federal, State, and local
    agency programs.
        The hiring of a new contractor in fiscal year 2012 was based on an
    assessment that a number of sites were not meeting cadet graduation
    targets. It was determined that analysis of student participation was
    required before more staff training. In fiscal year 2010, NGB had
    reported ten programs, nearly 30 percent of the total NGYCPs, failed to
    graduate at least 100 cadets per class. Seven of the thirty-two
    programs (22 percent) failed to meet their graduation goals by more
    than 10 percent. In 2011, DOD further reviewed graduation information,
    and assessed that after recent funding increases over the past several
    years, there had been only negligible increases in the number of NGYCP
    graduates. In fiscal year 2012, we realized that without reversing this
    downward trend, coupled with the continued implementation of the SECDEF
    efficiencies initiative, the funding support for the program could be
    seriously jeopardized. The goal of the new contract proposal is to
    investigate and identify any process and technical reasons for the
    declining trend in the performance of certain NGYCPs, and to recommend
    appropriate solutions to policies and regulations that could be
    implemented at the Departmental, State and local levels.
        We continue to closely oversee the Youth Challenge Program in
    accordance with statutory authority, and intend to assist the NGB to
    further strengthen this important program. We appreciate your support.

             BEYOND YELLOW RIBBON/DEPLOYMENT CYCLE SUPPORT PROGRAM

        33. Senator Ayotte. Secretary Wightman, I would like to thank you
    for your office's past support for National Guard and Reserve outreach
    and integration programs. On March 26, 2013, Senator Shaheen and I sent
    you a letter regarding Beyond the Yellow Ribbon outreach programs.
    These programs have helped thousands of servicemembers and their
    families ease the transition back into civilian life over the better
    part of the last decade. Do you commit to utilizing the full amount
    appropriated by Congress for the purpose of funding existing programs
    with strong records of success and using unspent balances to evaluate
    programs to develop a nationwide set of best practices or to initiate
    similar programs in other States?
        Secretary Wightman. The Department commits to utilizing the full
    amount of supplemental funding appropriated by Congress for its Beyond
    the Yellow Ribbon outreach programs. In accordance with congressional
    guidance, the additional funding shall be used for National Guard and
    Reserve outreach and reintegration programs with strong records of
    success, National Guard and Reserve employment enhancement programs and
    peer-to-peer hotline services. A portion of the funding shall be used
    to evaluate those programs to develop a nationwide set of best
    practices. This is a continuation of efforts that Congress began
    supporting in 2011 with an original $16 million in supplemental OCO
    funding.

                                 NAVY FURLOUGHS

        34. Senator Ayotte. Secretary Wright, I remain concerned about the
    impact furloughs will have on our military readiness--not to mention
    the financial hardship they will inflict on our DOD civilians who
    perform critical tasks at our shipyards and depots. I hope that we can
    eliminate furloughs for the entire department. However, if the Navy has
    a plan to avoid furloughs, the Navy should be allowed to implement that
    plan regardless of the other Services. Are you aware of the Navy's plan
    to avoid furloughs?
        Secretary Wright. The Department must evaluate the impact of
    sequestration cuts across all military service accounts. The
    sequestration cuts $20 billion in operating accounts, requiring cuts in
    training and maintenance that are harming readiness. The Navy delayed
    deployments and cut back on training, including one less carrier strike
    group in the Gulf. In addition to the sequestration cuts, we have a $7
    to $10 billion shortfall in our fiscal year 2013 war costs due to
    higher operating tempo and transport costs than we estimated 2 years
    ago.
        While we appreciate your desire to allow the Navy maximum
    flexibility to avoid civilian furloughs, DOD's most important
    responsibility is national security. In reallocating resources
    throughout the Department to the highest national security priorities,
    we will strive for consistency and fairness across the Department. As
    announced by the Secretary of Defense on May 14, 2013, most of the
    Department's civilian personnel will be subject to furloughs of up to
    11 days to help cover operating shortfalls. However, DOD guidance
    allowed for a specific limited number of exceptions driven by law and
    by the need to minimize harm to mission execution. Accordingly,
    civilian employees in Navy shipyards will be excepted from furloughs
    because it would be particularly difficult to make up delays in
    maintenance work on nuclear vessels and these vessels are critical to
    mission success.

        35. Senator Ayotte. Secretary Wright, would you support the Navy's
    request to avoid furloughs regardless of the actions of the other
    Services?
        Secretary Wright. The Department must evaluate the impact of
    sequestration cuts across all military service accounts. While we
    appreciate your desire to allow the Navy maximum flexibility to avoid
    civilian furloughs, DOD's most important responsibility is national
    security. In reallocating resources throughout the Department to the
    highest national security priorities, we will strive for consistency
    and fairness across the Department. As announced by the Secretary of
    Defense on May 14, 2013, most of the Department's civilian personnel
    will be subject to furloughs of up to 11 days to help cover operating
    shortfalls. However, DOD guidance allowed for a specific limited number
    of exceptions driven by law and by the need to minimize harm to mission
    execution. Accordingly, civilian employees in Navy shipyards will be
    excepted from furloughs because it would be particularly difficult to
    make up delays in maintenance work on nuclear vessels and these vessels
    are critical to mission success.

                             INVOLUNTARY SEPARATION

        36. Senator Ayotte. Secretary Wright, in order to achieve end
    strength reductions, it has been said that the Army in particular might
    have to utilize involuntary separations. Has the Army had to utilize
    involuntary separations thus far?
        Secretary Wright. Yes, the Army has used involuntary separations to
    properly shape their force and ensure they are postured correctly for
    mission readiness and to meet all national security objectives.

        37. Senator Ayotte. Secretary Wright, do you anticipate that the
    Army will have to use involuntary separations to achieve end strength
    reductions?
        Secretary Wright. I anticipate the Army will continue to use
    involuntary separations to properly shape their force and ensure they
    are postured correctly for mission readiness and to meet all national
    security objectives.

        38. Senator Ayotte. Secretary Wright, if sequestration goes
    forward, do you believe that the Army and Marine Corps will have to
    further reduce their end strengths?
        Secretary Wright. The fiscal year 2014 budget builds on the choices
    from the previous budget cycle and further implements the defense
    strategy articulated in January 2012 Defense Strategic Guidance. In
    developing our fiscal year 2014 budget and planning for future years,
    we reduced the size of the Joint Force commensurate with requirements
    for future missions, while at the same time ensuring full support for
    our All-Volunteer Force.
        If sequester levels remain in place, we will ask for flexibility to
    apply the reductions in a more strategic manner than the current
    sequestration rules that require large and sudden reductions to defense
    spending in a rigid, across-the-board manner. The Department has
    initiated the Strategic Choices and Management Review to focus on the
    choices we have to make in fiscal year 2015 and beyond, informed by the
    strategy that was put forth by the President a year ago. We will have
    to look at everything, including further force cuts to absorb a $52
    billion level reduction.

        39. Senator Ayotte. Secretary Wright, would large additional end
    strength reductions due to sequestration likely necessitate the more
    aggressive use of involuntary separations?
        Secretary Wright. Sequestration should have minimal effect on end
    strength. Sequestration primarily affects our civilian personnel, since
    uniformed personnel are exempt from sequestration cuts. If, however,
    reductions to the budget force additional end strength reductions,
    increases in involuntary separation actions may be necessary as this is
    the fastest way to accelerate a drawdown.

        [Whereupon, at 3:59 p.m., the subcommittee adjourned.]

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                   2014 AND THE FUTURE YEARS DEFENSE PROGRAM

                                  ----------

                           WEDNESDAY, APRIL 24, 2013

                                   U.S. Senate,
                             Subcommittee on Personnel,
                                   Committee on Armed Services,
                                                        Washington, DC.

     CONTINUATION OF TESTIMONY ON THE ACTIVE, GUARD, RESERVE, AND CIVILIAN
                               PERSONNEL PROGRAMS

        The subcommittee met, pursuant to notice, at 10:10 a.m. in
    room SR-222, Russell Senate Office Building, Senator Kirsten
    Gillibrand (chairman of the subcommittee) presiding.
        Committee members present: Senators Gillibrand, Blumenthal,
    Ayotte, and Graham.
        Majority staff members present: Jonathan D. Clark, counsel;
    Gabriella E. Fahrer, counsel; Gerald J. Leeling, general
    counsel.
        Minority staff members present: Steven M. Barney, minority
    counsel; and Allen M. Edwards, professional staff member.
        Staff assistant present: Jennifer R. Knowles.
        Committee members' assistants present: Kathryn Parker,
    assistant to Senator Gillibrand; Brad Bowman, assistant to
    Senator Ayotte; Craig Abele, assistant to Senator Graham; and
    Charles Prosch, assistant to Senator Blunt.

      OPENING STATEMENT OF SENATOR KIRSTEN E. GILLIBRAND, CHAIRMAN

        Senator Gillibrand. The subcommittee meets today to receive
    testimony from the Military Services on military and civilian
    personnel programs contained in the administration's national
    defense authorization request for fiscal year 2014 and the
    Future Years Defense Program.
        With us today are the senior leaders responsible for
    military and civilian personnel matters in each of the
    Services. In addition to discussing their plans and programs
    for fiscal year 2014, we will also look forward to hearing
    about specific budget items relevant to our subcommittee's
    oversight responsibilities.
        Your statements and testimony today are extremely important
    as we prepare to mark up the National Defense Authorization Act
    for Fiscal Year 2014, and to find a way ahead with respect to
    the Budget Control Act (BCA) and the effects that sequestration
    is having on our Nation's military.
        Our witnesses today are the Honorable Thomas R. Lamont,
    Assistant Secretary of the Army for Manpower and Reserve
    Affairs; the Honorable Juan M. Garcia III, Assistant Secretary
    of the Navy for Manpower and Reserve Affairs; the Honorable
    Daniel B. Ginsberg, Assistant Secretary of the Air Force for
    Manpower and Reserve Affairs; Lieutenant General Howard B.
    Bromberg, Deputy Chief of Staff, G-1, U.S. Army; Vice Admiral
    Scott R. Van Buskirk, Chief of Naval Personnel, U.S. Navy;
    Lieutenant General Robert E. Milstead, Jr., Deputy Commandant
    for Manpower and Reserve Affairs, U.S. Marine Corps; and
    Lieutenant General Darrell D. Jones, Deputy Chief of Staff for
    Manpower, Personnel and Services in the U.S. Air Force.
        As I stated at our oversight hearing last week, there is no
    greater responsibility for Congress and military leaders than
    to support our courageous and dedicated servicemembers, their
    families, and the civilian employees who are a vital component
    of the military team. For more than a decade, Congress has
    ensured that our military personnel receive a pay raise that
    meets or exceeds the increase in private sector wages. We have
    also been able to substantially enhance health care benefits,
    though I would like to see us expand the benefit further to
    include coverage for autism therapy for all TRICARE
    beneficiaries.
        However, this subcommittee faces a very clear challenge
    this year as we address the need to control the increasing
    costs of personnel programs. I am deeply committed and
    concerned about the rising costs of health care for both our
    Active Duty and retirees, and I believe we need to consider all
    other options before breaking faith with our servicemembers on
    this.
        This challenge is made more difficult by the significant
    budgetary and programmatic pressures imposed by sequestration
    under the BCA. As the result of sequestration, the Department
    has told us that it already has taken extraordinary measures to
    cope with the across-the-board cuts of nearly 8 percent. The
    President's budget request for fiscal year 2014 does not
    account for any sequester of funding for that fiscal year,
    which, if it remains in effect, would reduce the Department's
    budget by yet another $52 billion, further affecting morale and
    military readiness.
        While military personnel pay accounts are exempt from
    sequestration, the funding to pay for the Department of Defense
    (DOD) civilian employees, family support programs, health care
    claims, and training, among other things, are not. I am
    particularly concerned about the effects that possible
    furloughs are already having on the morale of DOD's 800,000
    civilian employees who are an integral component to the
    military's total force in crucial fields, such as cyber
    security and health care. I worry that breaking our commitment
    to our civilian workforce in this way will have devastating
    effects, not only on the morale, but the future propensity to
    continue their civil service, but on the critical services and
    support programs for servicemembers and their families,
    including DOD schools, child care centers, and access to health
    care.
        Because of the tenuous budget environment, difficult
    choices had to be made by the President, DOD leadership, and
    the Services. The subcommittee intends to carefully examine
    each of them as we begin consideration of the annual defense
    bill.
        As you know by now, I am deeply committed to addressing the
    scourge of sexual assault of our men and women in uniform. At
    the hearing with the Office of the Secretary of Defense (OSD)
    officials, I also discussed several other personnel issues that
    are important to me as we begin this budget cycle, in
    particular, hazing, DOD's proposed health care fee increases,
    and the provision of benefits to same sex partners.
        The Army and Marine Corps continue to draw down their
    forces. The Army requested fiscal year 2014 Active Duty end
    strength of 520,000. That is 32,000 below the fiscal year 2013
    authorized level. Moreover, we know that the Army will finish
    this fiscal year with 530,000 soldiers, primarily because of
    success in reducing the backlog of its wounded soldiers
    processing out of the military and back into civilian life,
    which is a good story.
        Finally, I and the rest of Congress remain extremely
    troubled about the number of servicemembers who are committing
    suicide, both Active Duty and Reserve component members.
    Another facet to this issue that was brought to our attention
    at last week's hearing is the military dependent suicides, and
    whether the Services are tracking or even at this point whether
    they have the capability of tracking those tragic deaths.
        I look forward to hearing about each of these issues from
    the Service perspective. We want to hear in your views what you
    believe your Service is doing well, what challenges remain, and
    how Congress can help so that we can best provide for our
    servicemembers, civilians, retirees, and families.
        Now I would like to give the floor to Senator Graham.

                  STATEMENT OF SENATOR LINDSEY GRAHAM

        Senator Graham. Thank you, Madam Chairman. It has been a
    pleasure working with you on the subcommittee. This is, I
    think, the best one to have because we are in charge of the men
    and women who serve and their families. This is really a
    wonderful opportunity to make sure that Congress listens and we
    get it right.
        Two areas: the sustainability of health care costs. They
    are just unsustainable. We are going to have to do something
    about TRICARE. We are going to have to make it more sustainable
    for those who are on it and for the military's budget. Second,
    sequestration seems to me one of the most ill-conceived ideas
    in a place that is known for ill-conceived ideas. That is
    pretty impressive. We can maybe top the list here.
        The Chairman of the Joint Chiefs said that sequestration
    was affecting morale, and it is detrimental to morale. So could
    you please focus on that? Tell us from a military personnel/
    family point of view what are we doing to our men and women in
    uniform and their families under sequestration.
        Thank you all for your service.
        Senator Gillibrand. In the interest of time, I will be
    calling only on the Assistant Secretaries to provide oral
    statements. I ask that each of you keep your oral statements to
    3 to 5 minutes in length. Your complete prepared statements
    will be included in the record. Following the opening
    statements, we will limit our questions to 7 minutes per round.
        I am going to call on our witnesses by Service, starting
    with the Army. Mr. Lamont?

    STATEMENT OF HON. THOMAS R. LAMONT, ASSISTANT SECRETARY OF THE
                 ARMY FOR MANPOWER AND RESERVE AFFAIRS

        Mr. Lamont. Thank you. Chairman Gillibrand, Senator Graham,
    distinguished members of this committee, thank you for the
    opportunity to appear before you today. I am honored to
    represent the 1.1 million men and women serving in the U.S.
    Army in uniform, and our more than 260,000 army civilians.
        This combat seasoned force has performed superbly over more
    than a decade of war and now faces the difficult task of
    reducing strength during this time of fiscal constraint. We
    will do this in a careful and deliberate manner, ensuring the
    future of the All-Volunteer Force while maintaining the best
    army in the world.
        Our challenge is to ensure that we balance the
    congressional mandate, which I quote, ``to fulfill the current
    and future operational requirements of combat and commands,''
    with the need to maintain our All-Volunteer Force. We recognize
    our greatest moral obligation is to ensure that our Nation's
    sons and daughters are fully prepared and trained when called
    on to risk their lives for the defense of freedom, and then to
    ensure the service and capabilities exist to care for these
    brave Americans.
        As we manage constrained resources, we look to ensure that
    soldier-focused programs, such as recruiting, compensation,
    educational opportunities, Sexual Harassment Assault Response
    and Prevention, suicide prevention, and transition assistance
    are balanced with the requirement to train and equip our Army
    to ensure its success on today's complex battlefields. We must
    ensure that however large the Army may be, we maintain its
    readiness, even as we sustain the All-Volunteer Force.
        To ensure a force of the highest quality soldiers, the Army
    must likewise balance recruitment, retention, promotions,
    voluntary and involuntary separations, and natural losses. To
    assist our soldiers and civilians who will transition to
    employment in the private sector, we must equip them with the
    skills and knowledge to continue their professional growth. We
    must continue to keep faith with the soldiers and family
    members who sacrificed so much for our country.
        We continue to work with the Veterans Administration (VA)
    to streamline the disability system and improve coordination
    for health care, compensation, and benefits for our medically-
    separated and retired soldiers. The Army must also maintain its
    focus on assisting our soldiers and family members struggling
    with depression, substance abuse, and other health of the force
    issues.
        The American soldier is the centerpiece of everything we do
    in the Army. Our efforts must remain focused on the
    preservation of our most precious resource: our people. I can
    assure you that your Army will continue to meet the Nation's
    needs whenever and wherever it is called to serve.
        Chairman Gillibrand, Senator Graham, and members of the
    subcommittee, thank you for your support, and I look forward to
    your questions.
        [The prepared joint statement of Mr. Lamont and Lieutenant
    General Bromberg follows:]

      Joint Prepared Statement by Hon. Thomas R. Lamont and LTG Howard B.
                                 Bromberg, USA

                                  INTRODUCTION

        Chairman Gillibrand, Senator Graham, distinguished members of this
    subcommittee, we thank you for the opportunity to appear before you on
    behalf of America's Army. The U.S. Army is a values-based organization
    that exists to serve the American people, to defend the Nation, to
    protect vital national interests, and to fulfill national military
    responsibilities. We are now poised to execute a historic drawdown of
    both our military and civilian personnel, and we are proposing to do it
    in a deliberate, responsible, and careful manner. Thousands of
    individuals will transition out of military and civil service and
    deserve quality transition assistance.
        While the future Army will be smaller, the Army is implementing a
    number of changes in force structure and other capabilities to ensure
    it remains the best led, best trained and best equipped land force in
    the world today and in the future. Our soldiers have performed superbly
    during more than a decade of war, displaying the values, character and
    competence that make our Army second to none. We must not waver on our
    commitment to support all those who have served with courage, pride,
    and honor.
        Thank you for your steadfast commitment to ensuring that the needs
    of our soldiers, their families, and our civilian workforce are met by
    supporting our personnel initiatives to ensure the sustainment and well
    being of our All-Volunteer Force.

                               STRATEGIC OVERVIEW

        The Army has been in a state of continuous war for nearly 12
    years--the longest in our Nation's history. More than 4,800 soldiers
    have given their lives on behalf of this Nation. Today we have more
    than 81,000 soldiers committed to operations around the world with
    approximately 58,000 in Afghanistan. Nearly 1.5 million soldiers have
    deployed and more than half a million have deployed multiple times--
    some as many as six times. Additionally, Army civilians shoulder a
    majority of the Generating Force mission, and 30,000 civilians have
    deployed into harm's way. Our soldiers, civilians, and families remain
    vital to the strength of our Nation.
        Now we will transition to a smaller force, while continuing to
    remain vigilant of new threats and prepare for new capabilities and
    requirements. To maintain an All-Volunteer Force of the highest quality
    soldiers and achieve our end-strength goal, the Army must responsibly
    balance force shaping across accessions, retention, promotions,
    voluntary and involuntary separations, and natural losses. We will
    leverage the Army Total Force Policy, for full integration of our
    Active and Reserve components, maximizing each component's strengths,
    in order to continue accomplishing our mission in a time of fiscal
    constraints. We will expand opportunities to women in the Army by
    opening up previously closed positions and career paths. We will ensure
    quality assistance to our soldiers and civilians who transition from
    their military and civil service careers to employment in the private
    sector.
        We are currently working with the Veterans Administration to
    streamline the disability system and improve coordination for health
    care, compensation, and benefits for our medically separated and
    retired soldiers. The Army also continues to focus on assisting our
    soldiers and family members struggling with depression, substance
    abuse, and other Health of the Force issues. This year we have
    implemented ``Ready and Resilient,'' a new comprehensive campaign--
    designed to enhance individual and collective resilience and improve
    readiness.
        The American soldier is the centerpiece of everything we do in the
    Army. Our efforts must remain focused on the preservation of our most
    precious resource, our people.

                             DRAWDOWN/END STRENGTH

        In keeping with the National Defense Strategy, the Army is building
    our future force to meet the Nation's requirements. The Army is
    reducing its Active component end strength to 490,000 soldiers by
    fiscal year 2017. The Army has already reduced the additional temporary
    end strength increase of 22,000 soldiers, approved in 2009 by the
    Secretary of Defense, and is on target to be at an Active component end
    strength of 530,000 by the end of fiscal year 2013. In fiscal year
    2014, the Army will begin to take further steps to achieve the end
    state force of 490,000 by fiscal year 2017.
        Based on Total Army Analysis of future requirements, the force
    structure effective in fiscal year 2017 requires an additional decrease
    of approximately 5,700 enlisted soldiers and 6,900 officers beyond our
    current rate of attrition over this same period. Our projected drawdown
    ramp allows for funding 490,000 of end strength in the base budget in
    fiscal year 2014 and beyond, with all other end strength resourced with
    Overseas Contingency Operations funding. This ramp allows for a steady
    enlisted annual accession mission of about 68,000 and an Active Army
    Competitive Category officer mission of about 4,600. Our strength
    projections also incorporates additional soldier inventory to mitigate
    the impact of nondeployable soldiers in the Integrated Disability
    Evaluation System. Temporary end strength Army medical is present in
    fiscal year 2013 and fiscal year 2014 and fully eliminated by the end
    of fiscal year 2015.
        To maintain the highest quality All-Volunteer Army, we will execute
    the upcoming force reductions in a responsible and targeted fashion
    while maintaining a ready force. To achieve planned end strength
    reductions, the Army expects to use various types of separation
    authorities across all elements of the force (Officer and Enlisted).
    The National Defense Authorization Acts for Fiscal Year 2012 and Fiscal
    Year 2013 provided several incentive authorities to help the Army shape
    the force over the drawdown period, along with the flexibility to apply
    them to meet specific grade and skill requirements. Under normal loss
    rates, the Army will not be able to reach its end strength goal over
    the fiscal year 2013-fiscal year 2017 period. There is no single force
    shaping method among the choices of accessions, retention and
    separations that will achieve the Army's end strength goals, and there
    will be good soldiers who we cannot retain. Reduced accession levels,
    promotion selectivity and tightened retention standards will help shape
    our force naturally. Through these processes, we expect to lose some
    combat-seasoned soldiers and leaders, but our focus will be on
    retaining the best individuals in the right grades and skills. As
    soldiers depart our active duty formations, the Army is committed to
    assisting them and their families as they transition to the Army
    Reserve, National Guard, or civilian life.

                RECRUITING AND RETENTION (OFFICER AND ENLISTED)

        Our soldiers are the Army's most important resource, and our
    ability to meet the challenges of the current and future operational
    environment depends on our ability to sustain the All-Volunteer Force.
    Even as we drawdown the Army, we must continue to bring high quality
    men and women into the force to grow our future leaders. We must also
    retain the most talented soldiers with the experience and skills
    necessary to meet our future needs.
        Despite the challenges of an ongoing conflict, future drawdown
    plans, and budgetary constraints, the active Army and the Army Reserve
    once again exceeded their enlisted retention missions in fiscal year
    2012. Focusing on required grades and skills, the Army National Guard
    reduced their retention mission in fiscal year 2012 to avoid exceeding
    their congressionally mandated end strength limits. The active
    component achieved its fiscal year 2012 recruiting mission and accessed
    over 96 percent high school diploma graduates, with the lowest number
    of waivers and test category IV enlistments ever. The Total Army's
    percentage of new enlisted soldiers with a high school diploma was well
    above historic rates. Additionally, the Army achieved over 99 percent
    Military Occupational Specialty requirements. In addition, recruits
    scoring 50-99 percent on the Armed Forces Qualification Test exceeded
    the DOD standard of 60 percent, while recruits who scored in the lower
    range (30 percent and below) were at a record low in fiscal year 2012.
    We are currently on track to achieve the fiscal year 2013 recruiting
    mission, with the exception of the U.S. Army Reserve mission. However,
    a tougher recruiting environment and impacts of sequestration have
    already caused a decline in the fiscal year 2014 entry pool.
        Upcoming reductions in Army operating budgets will likely have
    significant impact on recruiting operations. While the Army can
    mitigate many of the fiscal constraints by focusing cuts to preserve
    operational capabilities at the tactical level, the impact of
    reductions across multiple funding lines poses the greatest threat to
    the Army's ability to sustain the All-Volunteer Force.
        In fiscal year 2012, Combined Active Army (AC) and Army Reserve
    component (RC) enlistment and reenlistment incentives totaled slightly
    over $1.03 billion compared to $1.23 billion in fiscal year 2011.
    Entering fiscal year 2013, the combined Active and Reserve components
    will spend slightly over $1.009 billion: AC recruiting ($237 million),
    AC retention ($237 million); Army National Guard recruiting and
    retention ($348 million); USAR recruiting and retention ($187 million).
    A large part of the fiscal year 2013 incentives budget is a result of
    obligations for enlistment bonuses occurring from fiscal years 2008-
    2011. As a result of lower recruiting missions and prior year success,
    the percentage of Army recruits receiving a bonus dropped from over 62
    percent of all recruits in fiscal year 2009 to 3 percent in fiscal year
    2013. Enlistment and reenlistment bonuses are only used to incentivize
    longer-term enlistments in a small percentage of critical skills. These
    incentives ensure the success of the total Army recruiting and
    retention missions and shape the force to meet specific grade and skill
    requirements. The amount budgeted for contractual payments is
    anticipated to decrease until at least fiscal year 2015.
        Recruiting is expected to be more difficult in fiscal year 2014.
    The Army and the Nation still face challenges such as rising obesity
    rates as we recruit the All-Volunteer Force. In today's environment,
    fewer than one in four 17- to 24-year-olds are eligible to serve in the
    Army without a waiver. One in five youths age 12-19 are currently
    overweight, compared to 1 in 20 in the 1960s, and this trend is
    projected to grow to one in four by 2015. More than 20 percent of high
    school students fail to graduate, a critical milestone in becoming
    competitive to serve in highly skilled postions.
        In fiscal year 2012, the Active Army reenlisted 64,012 soldiers.
    The Army Reserve reenlisted 14,377 soldiers, exceeding their annual
    goal by 9 percent. The Army National Guard fell short of their mission,
    achieving 93 percent of their assigned mission, reenlisting 49,272
    soldiers, again purposely under producing to avoid exceeding end
    strength limits.
        During fiscal year 2012 and into fiscal year 2013, retention
    bonuses were carefully monitored and adjusted to ensure that the Army
    met its retention goals while remaining fiscally responsible. During
    fiscal year 2013, the Active component retention program is on track to
    successfully retain a quality force that supports Army end strength and
    readiness requirements. As we posture for future reductions in the size
    of our force, the Army is using lessons learned from past reductions to
    ensure that today's decisions maintain the viability of tomorrow's All-
    Volunteer Force. Retention policies will emphasize retention of
    soldiers with high potential coupled with appropriate force alignment
    and structure.

                         TRANSITION ASSISTANCE PROGRAM

        Our Nation entrusts its best and brightest to the Army to support
    the All-Volunteer Force. Therefore, the Army has a responsibility to
    help our transitioning personnel prepare for post-active duty life by
    providing the training and tools to enable their success. We must help
    them use their Army training, education and experience to successfully
    return to civilian life and to become gainfully employed. With
    thousands of soldiers possessing diverse skills, and scheduled to
    depart over the next few years, the Nation has a motivated, disciplined
    and work-ready force to employ. The redesigned Transition Assistance
    Program (TAP)--entitled ``Transition GPS'' (Goals, Plans, Succeed)--
    will assist our soldiers in understanding and communicating what great
    skills and abilities they do bring to our Nation's workforce. To be
    successful in their transition, we must provide the assistance,
    curriculum, training, skills building and tools our members need so
    they are prepared and most importantly, career ready to achieve their
    goals in civilian life. Transition GPS includes the following elements:

             Pre-Separation Assessment and Individual Counseling:
            Through the new transition program, separating servicemembers
            will have a one-on-one counseling session to discuss their
            transition needs and goals. Each servicemember will develop an
            Individual Transition Plan that documents their personal
            transition, as well as the deliverables they must attain to
            meet the new transition program's Career Readiness Standards.
             5-Day Core Curriculum: The 5-day Transition GPS Core
            Curriculum will include a financial planning seminar, a
            workshop offered by the Department of Veterans Affairs on the
            available veterans' benefits, and a redesigned employment
            workshop offered by the Department of Labor. Transitioning
            servicemembers will also undertake a Military Occupational Code
            Crosswalk to translate their military skills, training, and
            experience into civilian occupations and credentials.
             Career-Specific Additional Curriculum: In addition to
            completing the Transition GPS Core Curriculum, transitioning
            servicemembers will also have the option of participating in a
            series of 2 day tailored tracks within the Transition GPS
            curriculum: (1) an Education track, for those pursing college
            education; (2) a Technical Training track, for those seeking to
            attend technical school or earn a credential; and (3) an
            Entrepreneurship track, for those wanting to start a business.
             CAPSTONE Event: At least 90 days before their
            separation from Military Service, servicemembers will
            participate in a CAPSTONE event, which will verify that
            transitioning servicemembers completed the Transition GPS
            curriculum and achieved Career Readiness Standards.
            Servicemembers who require additional assistance will be
            referred to additional or remedial training opportunities. In
            addition, through the CAPSTONE event, all servicemembers will
            be offered a ``warm handover'' to government agencies and
            organizations that will be able to provide them continued
            benefits, services, and support as veterans.
             Military Life Cycle Transition Model: The new
            transition program will incorporate career readiness and
            transition preparation into the entire span of a
            servicemember's career. In the past, transition and preparation
            for the civilian workforce occurred late in a servicemember's
            lifecycle--near the point of separation. Under this new
            program, these concepts will be incorporated earlier as a way
            to ensure that the counseling, assessments, and access to
            resources to build skills or credentials occur at earlier
            stages.

        In December 2011, the Army published an execution order for
    transition policy which changed our program to a ``Commander's
    program'' to ensure soldiers have their commander's support and take
    advantage of transition services. We have established a Transition
    Strategic Outreach Office to synchronize job connection efforts between
    soldiers and industry. In November 2012, the Army implemented the
    ``Veterans' Opportunity to Work (VOW) to Hire Heroes Act'' and has
    began efforts to implement recommendations from the Veterans'
    Employment Initative Task Force. As part of this effort, the Army
    increased its ACAP counselor support within the Warrior Transition
    Command from 30 to 41 counselors. Through the revamped Transition
    Assistance Program, the Army is working to maximize job opportunities
    by leveraging private industry contacts and local governments to remove
    barriers to job-related licenses and certifications wherever possible.
        To support these recent changes in legislation and policy, we
    reinforced the Army Career and Alumni Program (ACAP) and demobilization
    platforms with a total of nearly 700 contractors and civilian personnel
    comprised of transition and finance counselors, administrative support
    staff, and information technology support team. We established a new
    ACAP center in Kuwait. We have created 25 regionally-located transition
    support teams to support the USAR and ARNG in the soldiers' hometowns.
    We plan to add 65 education counselors at the end of fiscal year 2013.
    The legislative and policy mandates present a 300 percent increase in
    participation and focus our program on compliance.

                        CIVILIAN WORKFORCE/END STRENGTH

        Consistent with the reductions of our authorized end strength for
    active duty and the Army National Guard, we expect to reduce the
    civilian workforce from 272,000 to 255,000 by the end of fiscal year
    2017. The rate of reductions for the civilian workforce will be based
    on the understanding that it will take 2-3 years after our troops
    redeploy from Afghanistan to adequately reset our personnel, families,
    and equipment.
        To help mitigate the Army's budget execution risks, on January 22,
    2013, a hiring freeze went into effect. The memorandum that established
    the freeze also directed commanders to terminate temporary employees
    and to let the appointments of term employees lapse upon the expiration
    of their current appointments. To date, we have released over 1,800
    temporary and term employees and expect to release a total of 3,100 by
    the end of this fiscal year.
        Recognizing the inevitable risks of decreased civilian employee
    productivity and morale, we may need to furlough up to 250,000 civilian
    employees this fiscal year. In addition to the hardship the pay loss
    poses to our dedicated workforce, this furlough will have an immediate
    trickle-down effect as the majority of these civilians are located
    throughout the United States on our posts and stations, and their
    spending directly impacts local economies and contributes towards State
    and local taxes. Although we will endeavor to protect critical services
    as much as possible, any furlough will have an immediate impact on
    important Army services.

                    IMPLEMENTING THE ARMY TOTAL FORCE POLICY

        Approved by the Secretary of the Army in September 2012, the Army
    Total Force Policy is an important milestone in our Army's history
    because it lays out a roadmap for the full integration of our Active
    and Reserve component forces. The Active Army, the Army National Guard
    (ARNG), and the Army Reserve (USAR) each serve vital roles in our
    National Security Strategy, and it is imperative that we use each
    component's strengths to accomplish the Army's missions in a time of
    fiscal constraint. The essence of the Total Force Policy is to manage
    risks by maintaining appropriate levels of readiness while balancing
    immediate response capabilities with operational and strategic depth.
        The Total Force Policy establishes formal guidance for integrating
    the diverse regulations that govern how the Army mans, trains, equips,
    and sustains Active Army, Army National Guard, and Army Reserve Forces.
    To employ Active and Reserve component forces most efficiently, the
    Army will establish common standards for unit training and readiness
    validation; a common deployment period policy; standard procedures for
    mobilizing and deploying Reserve component forces using new activation
    authorities under title 10, 12304b, and will complete fielding of the
    Integrated Pay and Personnel System. The Army Total Force Policy will
    reshape the Army and ensure the Total Force provides the Nation the
    best balance of readiness and depth.

                               WOMEN IN THE ARMY

        On January 24, 2013, the Secretary of Defense and the Chairman of
    the Joint Chiefs of Staff (CJCS) eliminated the Direct Ground Combat
    Assignment Rule. While this resulted in all positions being opened to
    women, the Army must notify Congress through the CJCS and Office of the
    Secretary of Defense and complete the congressional notification period
    prior to recruiting, reclassifying or assigning women to these
    positions. There are significant documentation requirements as the Army
    proposes opening further positions and completes the required
    validation of occupational standards prior to January 1, 2016.
        Female soldiers have demonstrated their ability to excel in combat
    over the last 10 years. The Army is committed to ensuring all soldiers
    have career opportunities that enable them to reach their highest
    potential without regard to gender. The expansion of opportunities for
    women will improve overall Army capability and readiness. With the
    removal of the collocation restrictions in fiscal year 2012, this
    enabled the Army to open an additional 13,139 positions and 6
    additional military occupational specialties previously closed to
    women. Women may now serve in leadership positions previously closed to
    them; allowing them to be competitive with their male peers as they
    gain new experiences.

                            DIVERSITY AND INCLUSION

        The diversity of our Army is a continuous source of strength as we
    recruit soldiers and Army civilians from an increasingly diverse
    America. We must take full advantage of opportunities to bring new
    ideas and expanded capabilities to the mission by reaching out to
    diverse communities and building relationships that will support the
    Army's human resource requirements. To this end, we have developed and
    fully implemented a strategy for conducting outreach activities to our
    Nations's diverse communities on an Army-wide basis. In the first year
    of execution, 9 commands and the Army Staff coordinated 35 outreach
    events for the Total Army. We will continue to build on this strategy
    in the future.
        Our ability to be inclusive of the Nation's diverse citizenry while
    sustaining a high performance Army requires the engagement of senior
    leaders and continuous diversity education throughout the Force. The
    Army Diversity Roadmap outlines a unique approach to an enterprise-wide
    diversity and inclusion initiative over the coming years and guides our
    actions in the areas of leadership, people, structure and resources,
    training and education, and inclusive work environments. Within the
    Roadmap, we are implementing an intra-Army council of senior leaders to
    advise the Secretary and provide a forum for collaboration and sharing
    ideas in connection with implementation of the Army Diversity Roadmap
    and execution of components of our strategy. In addition, the Council
    will facilitate delivering the diversity and inclusion message
    throughout the Army, while receiving direct feedback from senior
    leaders on recommended priorities and areas of emphasis.
        Our initial diversity training and education efforts have focused
    on practitioners who support our commanders and other leaders. We
    continue to ensure high quality initial training for Military Equal
    Opportunity and Equal Employment Opportunity professionals. Over the
    past 4 years, over 600 general officers and civilian senior executives
    have completed a diversity education program that emphasizes inclusive
    leadership, self-awareness, leading change, and other topics that
    ensure a successful diversity and inclusion strategy for the Army. In
    this program senior leaders are presented with challenges and
    opportunities and participate in experiential exercises that enhance
    understanding and perspective.
        We will continue to invest in diversity education and inclusive
    leadership by seamlessly integrating the training for senior leaders
    into their initial leader development programs. Ultimately, we will
    also reach every soldier and Army civilian through the Army's
    institutional professional development system.
        We must position the Army to recruit, develop and retain the most
    talented people our Nation has to offer. Critical to our global mission
    is an understanding of the cultures, languages and social norms of the
    people in locations where we deploy as well as in our own ranks. This
    diversity and inclusion initiative is integral to the Army's long-term
    vision for human capital and our understanding of the human dimension
    of leadership and global engagements.

                     THE ARMY DISABILITY EVALUATION SYSTEM

        Fiscal year 2012 was the first full year in which the Army used the
    Integrated Disability Evaluation System (IDES) Army-wide. Under IDES,
    the Department of Defense (DOD) and the Department of Veterans Affairs
    (VA) use a single set of general and specialty medical examinations and
    a single-source disability rating to execute their respective
    responsibilities. This results in more consistent, less contentious
    evaluations, faster fitness determinations, and timely benefits
    delivery for our medically retired or separated soldiers. As a result,
    the VA can deliver benefits in the shortest period allowed by law
    following discharge, thus reducing the ``benefit gap'' that previously
    existed under the legacy process. IDES also provides assistance to
    soldiers as they transition from the military to the services and
    benefits the VA offers, and has eliminated many of the sequential and
    duplicative processes found in our respective legacy systems.
        The IDES has been strategically successful in reducing the post-
    separation benefit gap; however expansion of IDES across the Army has
    been challenging. Historically, several factors have hindered the
    processing of soldiers through the IDES, including: ineffective
    governance structure, inadequate capacity to meet demands, lack of
    standardization, and a lack compliance with established policies and
    guidance.
        Over the last year, the Army has devoted an extraordinary amount of
    time, attention, resources, and leadership to improve the IDES. In
    addition to adding staff to our Medical and Physical Evaluation Boards
    to support current operational demands, the VA and the Army have
    implemented a number of initiatives to improve the performance of IDES.
    These improvements have resulted in the following:

             Since February 2012, the Army has reduced the number
            of cases over 400 days by 24 percent.
             Over the last year, the Army increased its capacity
            from 1,200 to 3,000 cases per month. Consequently, Medical
            Evaluation Board (MEB) output has exceeded input for the last 8
            months, and the MEDCOM reduced its inventory of MEB from over
            5,000 to 2,300 cases.
             MEB output has exceeded input for the last 8 months;
            the average days to complete the MEB Phase have improved 46
            percent from 146 days in March 2012 to 112 days at the end of
            February 2013. Time to complete the Narrative Summary (NARSUM)
            has improved from 51 days in March 2012 to 22 days in February
            2013 (56 percent improvement).
             The Physical Evaluation Boards (PEBs) achieved DOD's
            120-day goal for the last 4 months. The average number of days
            to complete the PEB Phase has also decreased from 126 days in
            March 2012 to 104 days at the end of February 2013, an 18
            percent improvement.

        Soldiers starting IDES today will complete the process in less than
    295 days. With the added capacity and process improvements in place,
    the Army expects to meet the DOD's goal of completing 70 percent of AC
    cases in 295 days and RC cases in 305 days by January 2014. More
    importantly, we remain committed to making this process more accessible
    to our soldiers and their families.

                          READY AND RESILIENT CAMPAIGN

        For the Army to continue to improve, and increase capability and
    performance, we must continue to build resilience in our total force.
    We have a historic opportunity to understand the lessons of the last 12
    years and make our force even stronger. Thus on February 4, 2013, the
    Secretary of the Army issued a Directive requiring the Army to move
    forward with its Ready and Resilient Campaign (R2C) plan. The R2C will
    address the challenges that stress the Force, and integrate and
    synchronize the multiple efforts and programs designed to improve the
    readiness and resilience of soldiers (Active, Reserve, and National
    Guard), Army civilians, and their families.
        The R2C is a far-reaching, comprehensive campaign, designed to
    enhance individual and collective resilience and improve readiness.
    This initiative will integrate and synchronize existing and emerging
    Army programs that focus on improving physical, psychological and
    emotional health. The goal is to ensure that individuals understand and
    have access to effective programs and feel empowered to seek help if
    and when they need it; free from stigma related barriers.
        The success of the Ready and Resilient Campaign depends on
    commanders and leaders at all levels acting with unity of effort and
    emphasizing the campaign's importance to sustaining Army readiness in
    the future. This campaign will guide the Army's efforts to build and
    maintain resilience across the Total Army to improve unit readiness and
    further reinforce the Army Profession. The Ready and Resilient Campaign
    Execution Order (EXORD) will follow the Campaign Plan with specific
    tasks and details for the execution of the campaign. We expect every
    leader to fully support the campaign by incorporating resilience
    training into all educational and professional development programs.
    Soldiers of all ranks must practice the skills that build resilience as
    part of our collective effort to build a strong Army team. Success will
    come from a cultural change in the Army by directly linking personal
    resilience to readiness and emphasizing the responsibility of personnel
    at all levels to build and maintain resilience.

             HEALTH PROMOTION RISK REDUCTION AND SUICIDE PREVENTION

        The Army continues to institute a multi-disciplinary, holistic
    approach to readiness and resilience and suicide prevention. Increased
    emphasis remains on developing and implementing targeted training
    programs as well as funding for support programs that impact the entire
    Army Family. This approach is also reflected in the various senior
    leader forums that are conducted throughout the Army: the Army Vice
    Chief of Staff-led Senior Suicide Review Group; the Health Promotion
    Risk Reduction Council; and the Community Health Promotion Councils at
    posts, camps, and stations.
        Key elements of the Army's approach are: (1) Prompt access by
    soldiers to quality behavioral health care; (2) Multi-point screening
    and documentation of mild Traumatic Brain Injuries/Post-Traumatic
    Stress Disorders; (3) Improved leader and soldier awareness of high-
    risk behavior and intervention programs; and (4) Increased emphasis on
    programs that support Total Force (soldiers, Army civilians, and family
    members) readiness and resilience.
        The Army had 324 potential suicides during 2012--the highest annual
    total on record. Of those, 184 deaths occurred within the AC and RC
    (Army National Guard [ARNG]/U.S. Army Reserve [USAR]) on Active Duty.
    This total exceeds the previous Active Duty high of 166 in 2009 and
    2011. The RC not on Active Duty total of 140 is the second highest on
    record, exceeded only by the 2010 not on Active Duty total of 146.
    While most Army suicides continue to be among junior enlisted soldiers,
    the number of suicides by noncommissioned officers has increased over
    each of the last 3 years. By far, most Army suicides were in the 21-30
    age range, a trend that held each year from 2010 to 2012.
        In November 2012, the Army published the ``2020 Army Strategy for
    Suicide Prevention'' as Annex C of the ``Headquarters Department of the
    Army (HQDA) EXORD 037-13, Ready and Resilient Quick Wins.'' It is
    deliberately and closely synchronized with the ``2012 National Strategy
    for Suicide Prevention'' in order to promote coordinated
    implementation. It features four major lines of Effort: (1) Healthy and
    Empowered Individuals, Families, and Communities-Prevention; (2)
    Clinical and Community Support Services--Intervention; (3) Treatment
    and Recovery Services--Postvention; and (4) Surveillance, Research, and
    Evaluation. The references to Prevention, Intervention and Postvention
    tie the 2020 Army Strategy back to extensive work done over many
    preceding years, while at the same time it presents a forward-looking
    way-ahead in step with the National Strategy.

                          ARMY SUBSTANCE ABUSE PROGRAM

        The Army Substance Abuse Program (ASAP) is a commander's program
    that uses prevention, education, deterrence, detection, and
    rehabilitation, to reduce and eliminate alcohol and drug abuse. It is
    based on the expectations of readiness and personal responsibility.
        In March 2010, the Army conducted a counselor requirements analysis
    based on each installation's average daily client census with a ratio
    of one counselor for 30 patients. Patient caseload was as high as 60
    patients per counselor at some installations. The Army has shifted to a
    1:30 ratio as an acceptable ratio based on literature and counselor
    input. Applying this ratio yielded a requirement of 563 counselors
    assuming a 20 percent growth in number of patients over a 5 year
    period.
        An Army priority in this area includes the hiring of more
    counselors. There is a finite pool of qualified substance abuse
    counselors nationwide and the Army is competing for this scarce talent
    with private industry, the Veteran's Administration and State and local
    governments. As of March 20, 2013, the Army has hired 436 of the 563
    counselors needed. The Army is increasing the use of recruiting,
    relocation, and student loan reimbursement incentives to attract more
    qualified candidates, and is developing a ASAP Counselor Internship
    Program which will allow students with Master's degrees to work in a
    supervised internship for up to 2 years as they obtain their licenses
    and substance abuse counselor certifications.
        The Confidential Alcohol Treatment and Education Pilot began in
    July 2009 and offers confidential alcohol treatment and education to
    eligible soldiers. This pilot was initially offered at Fort Lewis, Fort
    Richardson, and Schofield Barracks. The Secretary of the Army directed
    that the pilot be expanded to include Forts Carson, Riley, and Leonard
    Wood with successful treatment outcomes at these sites.

           SEXUAL HARASSMENT/ASSAULT RESPONSE AND PREVENTION PROGRAM

        Over the last year, the Army made great strides to institutionalize
    our Sexual Harassment/Assault Response and Prevention (SHARP) Program
    to enable Army readiness, combat sexual violence and reinforce the
    Army's commitment to create a climate where soldiers live the Army
    Values, thereby eliminating sexual assault and sexual harassment.
        As we assess our efforts, results from our recent Operational Troop
    Survey indicate a significant increase (28 percent in 2009 to 42
    percent in 2012) of female soldier survey respondents who indicated
    they experienced a sexual assault and reported the crime. This increase
    in soldiers propensity to report this crime is critical to ensure
    commanders can provide support to survivors, take appropriate action
    against offenders, and effectively address command safety issues.
        The Army's goal is to eliminate sexual violence through cultural
    change, thereby, creating a professional climate where every member of
    the Army family (soldiers, civilians, and family members) trusts their
    leaders to treat them with dignity and respect. The Army is
    aggressively pursuing this goal through the integration of policies,
    training, communication and a unity-of-command approach to our sexual
    harassment and sexual assault response and prevention efforts.
        Highly trained SHARP staff are key to achieving SHARP goals. The
    Army trained approximately 19,000 command-selected program personnel on
    a prevention-focused 80-hour program certification course. The Army is
    institutionalizing this training at the command level by establishing
    73 full-time SHARP 80-hour certification course trainer positions
    within our Active and Reserve components. The Army is aggressively
    pursuing DOD certification of more than 10,000 SHARP personnel by the
    end of fiscal year 2013.
        The Army also continues to expand our SHARP Life-Cycle Training.
    The training is designed to improve the capabilities of our force to
    address sexual assault at every level of career progression.
        While the primary objective is prevention, when an incident occurs,
    the Army is committed to providing the best possible support and
    protection of the survivor through our advocacy efforts. In 2012, the
    Army implemented the requirement to have two full-time program
    personnel to serve as Sexual Assault Response Coordinators (SARC) and
    Victim Advocates (VA) at brigade and equivalent units. To
    institutionalize these efforts, the Army is resourcing 829 military and
    civilian full-time SARC and VA positions at AC/RC brigade and
    equivalent units and thousands of collateral positions at battalions
    and below.
        In 2012, the Army began executing its executive agent role to train
    military investigators/prosecutors from all Services at the U.S. Army
    Military Police School 80-hour Special Victim Unit Investigation
    Course. The course includes the ground-breaking Forensic Experiential
    Trauma Interview technique developed by the Army. This interviewing
    technique reduces the survivor's risk of re-traumatization during
    interviews and produces stronger case evidence.

      DON'T ASK, DON'T TELL REPEAL/EXTENDING BENEFITS TO SAME SEX PARTNERS

        The Army, in coordination with the DOD, is proceeding with the
    planning necessary to implement the extension of benefits to same sex
    domestic partners.
        With the repeal of ``Don't Ask Don't Tell,'' discrimination based
    on sexual orientation no longer has a place in the military. All
    soldiers who serve our Nation deserve to be treated with equal dignity
    and respect. As such, on February 11, 2013, the Secretary of Defense,
    directed the Services to develop plans to extend family member and
    dependent benefits that can be lawfully provided to the same-sex
    domestic partners of military servicemembers and their children.
        These 22 family member and dependent benefits identified by the
    Joint Benefits Review Working Group require policy revisions, training,
    and technical upgrades to our automated personnel identification
    system. However, the Army will be ready to make these benefits
    available to same-sex domestic partners by August 31, 2013 as directed
    by the Secretary of Defense.
        While our work is focused on changing our policies and practices in
    accordance with current law to ensure fair and equal treatment of all
    our members and their families, we will ensure we implement this change
    in the same disciplined manner that has characterized the Army's
    service for the past 237 years.

                            CONGRESSIONAL ASSISTANCE

        As the Army continues the deliberate and methodical reductions in
    the force, we will need congressional support to drawdown accurately
    and efficiently while maintaining readiness. The Army will maximize
    voluntary measures, but will need congressional support as it resorts
    to inevitable involuntary measures in the coming fiscal year. The
    continued support of Congress for competitive military benefits and
    compensation, along with incentives and bonuses for soldiers will
    remain critical to the All-Volunteer Army's efforts to recruit, retain,
    and support the highest caliber of individuals. The Army must retain
    the flexibility to offer incentives to attract and retain talent. The
    continued funding of these programs by Congress is absolutely critical.
    These incentives assist in shaping the force for both quality and
    specific talent required. Finally, predictability in the authorization
    and appropriation bills that are aligned with the President's budget
    request would help the Army tremendously in preparations for the force
    of the future.

                                   CONCLUSION

        We have invested a tremendous amount of resources and deliberate
    planning to develop and preserve the All-Volunteer Force. People are
    the Army, and our enduring priority is to preserve the high quality,
    All-Volunteer Force--the essential element of our strength.
        While we transform to a smaller Army, we remain dedicated to
    improving readiness, and building resilience in our soldiers,
    civilians, and their families. The Army will not sacrifice readiness as
    it draws down. We must draw down wisely to preserve the health of the
    force and prevent breaking faith with the brave men and women who serve
    our Nation. The Army has gained the trust of the American public more
    now than at any other time in recent history, while fulfilling our
    responsibilities toward those who serve.
        The well-being of our force, regardless of its size, is absolutely
    dependent upon your tremendous support. The Army is proud of the high
    caliber men and women whose willingness to serve, is a credit to this
    great nation. To conclude, we wish to thank all of you for your
    continued support, which has been vital in sustaining our All-Volunteer
    Army through an unprecedented period of continuous combat operations
    and will continue to be vital to ensure the future of our Army.
        Chairman Gillibrand, Senator Graham, and members of the
    subcommittee, we thank you again for your generous and unwavering
    support of our outstanding soldiers, civilian professionals, and their
    families.

        Senator Gillibrand. Thank you.
        Secretary Garcia?

     STATEMENT OF HON. JUAN M. GARCIA III, ASSISTANT SECRETARY OF
               THE NAVY FOR MANPOWER AND RESERVE AFFAIRS

        Mr. Garcia. Thank you, Chairman Gillibrand, Senator Graham,
    and distinguished members of the subcommittee. Thank you for
    this opportunity to speak about the Department of the Navy's
    personnel programs, about the sailors, the marines, and the
    civilians who comprise the Navy.
        There have been several significant and successful changes
    in the Navy in personnel policies and programs since we last
    testified before this subcommittee. In accordance with the
    January 24, 2013 Secretary of Defense memorandum entitled
    ``Elimination of the 1994 Direct Ground Combat Definition
    Assignment Rule,'' we will submit the Navy-Marine Corps
    implementation plans next month to the Secretary of Defense.
    These plans will provide details on how we intend to move
    forward with our expansion of opportunities for females to
    serve in previously closed Military Occupational Specialties
    (MOSs), ground combat units, and those positions closed due to
    privacy and berthing restrictions.
        We have made great strides by opening positions on
    submarines and assigning women to previously closed ground
    combat units at the battalion level. We continue to offer the
    opportunity for female lieutenants to volunteer for training at
    the Marine Corps Infantry Officer Course immediately following
    graduation from The Basic School. We are committed to providing
    women with the same opportunities as their male counterparts
    while maintaining the highest levels of combat readiness and
    capitalizing upon every opportunity to enhance our warfighting
    capabilities.
        The Navy is supporting ongoing efforts by DOD to review and
    extend benefits, including compensation benefits, to same sex
    domestic partners of servicemembers. Many benefits are
    currently available to same sex domestic partners by
    designation of servicemembers. At the direction of the
    President, DOD established a Joint Benefits Review (JBR)
    Working Group, comprised of representatives from each of the
    Services. The JBR's mission is to conduct a careful and
    deliberative review of the benefits currently provided to the
    families of servicemembers.
        The working group has identified 22 additional family well-
    being, child and youth programs, family support, travel and
    transportation, and survivor and death benefits that can be
    lawfully provided to the same sex domestic partners of
    servicemembers and their families through changes to DOD
    policies and regulations. On February 11, 2013, then Secretary
    of Defense Panetta directed the extension of those benefits to
    same sex domestic partners and their children once the
    servicemembers and their same sex partners sign declarations
    attesting to the existence of a committed relationship.
        Implementation of these benefit changes requires
    substantial policy revision, training, and technical upgrades.
    The Department of the Navy will extend the 22 additional family
    member and dependent benefits to eligible partners of the
    servicemembers no later than October 1 of this year, subject to
    approval by the Secretary of Defense. Meanwhile, the Department
    will continue to comply with existing law and will review the
    extension of military benefits in conjunction with OSD and
    other Services should a change in law occur.
        In addition to ensuring our manpower and personnel policies
    meet our country's security requirements, it is my honor and
    privilege to represent and advocate for the more than 800,000
    sailors, marines, and civilian teammates who are always
    prepared to respond to whatever our Nation needs. Vice Admiral
    Van Buskirk and Lieutenant General Milstead will have the
    opportunity to address their respective Services' personnel
    plans in detail, but I would like to touch on some common
    challenges the Navy faces as a whole.
        After more than a decade of war and given the challenges in
    the broader economy, we must honor our commitment to veterans
    and wounded warriors by taking concrete steps to facilitate
    their transition to civilian life. A key achievement over the
    last year is the progress made with regard to transition
    support and reintegration. In fiscal year 2012, the Navy hired
    10,867 veterans into civilian positions. Fifty-nine percent of
    those were new hires. Of these, nearly one-quarter were
    disabled veterans and 1 in 10 was a wounded warrior.
        The Navy has just over 200,000 U.S. direct hire civilians
    as of December. Veterans, including wounded warriors and
    disabled veterans, comprise a majority of our civilian
    workforce. Civilians operate across a broad spectrum of 558
    occupations to include world class scientists and researchers
    who develop and procure cutting-edge weapons and equipment.
    More than half of the civilian workforce is made up of
    technical professionals, such as engineers, logisticians,
    mathematicians, scientists, acquisition specialists, and
    members of the medical community.
        Because of the combination of sequestration and the fiscal
    year 2013 continuing resolution, Navy commands have been
    operating under an across-the-board civilian hiring freeze to
    reduce spending, primarily in the Operations and Maintenance
    (O&M) accounts, since January. Fortunately, the Marine Corps
    has been able to avoid so drastic a measure. Sustained
    execution of a hiring freeze simply hampers the Navy's ability
    to recruit a skilled and talented workforce capable of
    executing the mission. Critical gaps created by ongoing
    vacancies affect the Navy's readiness and could negatively
    impact execution for many months to come.
        Our Department level sexual assault prevention strategy
    since 2009 has had three main components, each of which has
    shown progress during fiscal years 2012 and 2013. I know we
    will have a chance to address those.
        From suicide reduction to sexual assault prevention and
    response, the Navy's 21st Century Sailor and Marine Initiative
    is addressing head-on the critical and urgent issues facing our
    sailors, marines, and their families. As part of our aggressive
    drug demand reduction efforts, we have expanded our drug
    testing panel to include synthetics, like spice. We have also
    ended discount subsidies on the sale of tobacco products in our
    Navy and Marine Corps exchanges, while providing no cost
    tobacco cessation products for those trying to quit, and
    improved education and training programs to steer potential new
    consumers away from starting.
        In short, the 21st Century Initiative is providing the
    tools needed to face challenges through a variety of programs
    aimed at fostering a healthy lifestyle both on and off duty. We
    are committed to continuing these efforts to ensure a safe,
    healthy, resilient, and ready force.
        I wish to thank the committee members for your continued
    and unwavering support to the Navy, Marine Corps, and the men
    and women who are sailors and marines, who serve bravely in
    Afghanistan, spend months at sea apart from their families,
    guard embassies throughout the world, conduct humanitarian
    assistant missions whenever and wherever needed, and perform
    countless other missions under often unimaginably demanding
    conditions and circumstances.
        We look forward to your questions. Thank you.
        [The prepared joint statement of Mr. Garcia, Vice Admiral
    Van Buskirk, and Lieutenant General Milstead follows:]

      Prepared Joint Statement by Hon. Juan M. Garcia, VADM Scott R. Van
            Buskirk, USN, and Lt. Gen. Robert E. Milstead, Jr., USMC

                               EXECUTIVE SUMMARY

        The Department of the Navy's fiscal year 2014 manpower and
    personnel budget request appropriately balances risk in supporting the
    readiness requirements of the fleet and providing for the care and
    compensation of our sailors and marines. Our active budget request will
    support active end-strength of 323,600 within the Navy and 182,100
    within the Marine Corps (190,200 with Overseas Contingency Operations
    support) and a Reserve end strength of 59,100 within the Navy and
    39,600 within the Marine Corps.

    Personnel Efficiencies
        The overall pressure on the budget and the need for efficiency made
    achieving an appropriate balance between resources and requirements
    particularly difficult this year. The pay raises and changes in TRICARE
    fees for fiscal year 2014 and across the Future Years Defense Program
    (FYDP) represent the Department's best effort to balance personnel
    requirements, budget realities, and the welfare of our servicemembers
    and retirees. Because the increases in base pay are more modest than
    those of recent years, funding of special pays and bonuses will be
    particularly important. In addition, the budget includes increases for
    Basic Allowance for Housing (4.2 percent) and Basic Allowance for
    Subsistence (3.4 percent). As indicators of an improving economy
    emerge, we are closely monitoring for any downward trend in recruiting
    and retention. Meanwhile certain critical skills and positions remain
    difficult to fill.

    Sailor, Marine, and Family Care
        In fiscal year 2014 our team of dedicated family readiness
    professionals will continue to respond with agility to the needs of
    sailors, marines, and their families. Our goal is to address the needs
    of individual service and family members while also providing for the
    family unit as a whole. Technology, such as handheld applications and
    more sophisticated tools like eMarine, provides a wide range of
    communication capabilities. By providing information for self-help and
    education electronically, these tools enable our staff to focus their
    efforts on providing face-to-face interaction when and where it is
    needed the most. In addition, the Department continues to support vital
    programs such as the Military Spouse Employment Partnership, both as a
    resource for our members' spouses and as an employer, and the Yellow
    Ribbon Reintegration Program, a popular and proven reintegration tool.

    Recruiting
        Both the Navy and Marine Corps continue to experience strong
    performance in our recruiting programs across both the officer and
    enlisted force. Accordingly, both Services' fiscal year 2014 budget
    requests for accession bonuses represent reductions from fiscal year
    2013. However, accession bonuses remain critical to achieving our goals
    for certain hard to fill positions such as health professionals,
    nuclear operators, and special warfare/special operations in both the
    Active and Reserve components and Unrestricted Line officers in the
    Navy Reserve component.

    Retention
        The overall economic conditions, particularly with the improving
    but still weak civilian job market, contribute to the Navy and Marine
    Corps having had considerable success with retention across the force.
    As a result, bonuses and special pays have been reduced significantly
    in recent years. While we continue to make selected reductions in
    bonuses and special pays paid to sailors and marines, these highly
    targeted forms of compensation remain crucial to filling critical skill
    areas. In many cases these skill areas require significant investments
    in training and education and civilian demand for people with these
    skills remains strong despite the overall economic environment.

    Transition Support
        While higher than normal unemployment in the civilian sector makes
    it easier to meet our retention goals, it also makes it more difficult
    for those who leave the military to find a job. In fiscal year 2012,
    the Department of Navy spent nearly $344 million on unemployment
    benefits for those who left active service. While the unemployment rate
    for veterans is lower than the national average, and the vast majority
    of our veterans do find civilian employment, it is taking many of them
    too long to do so. The newly redesigned Transition Assistance Program
    (TAP)--entitled ``Transition GPS'' (Goals, Plans, Succeed)--is intended
    to prepare sailors and marines to make a successful transition from
    military to civilian life and help shorten their time to post-service
    employment. Transition GPS includes the following elements:

             Pre-Separation Assessment and Individual Counseling:
            Through the new transition program, separating servicemembers
            will have a one-on-one counseling session to discuss their
            transition needs and goals. Each servicemember will develop an
            Individual Transition Plan that documents their personal
            transition, as well as the deliverables they must attain to
            meet the new transition program's Career Readiness Standards.
             5-Day Core Curriculum: The 5 day Transition GPS Core
            Curriculum will include a financial planning seminar, a
            workshop offered by the Department of Veterans Affairs on the
            available veterans' benefits, and a re-designed employment
            workshop offered by the Department of Labor. Transitioning
            servicemembers will also undertake a Military Occupational Code
            Crosswalk to translate their military skills, training, and
            experience into civilian occupations and credentials.
             Career-Specific Additional Curriculum: In addition to
            completing the Transition GPS Core Curriculum, transitioning
            servicemembers will also have the option of participating in a
            series of 2 day tailored tracks within the Transition GPS
            curriculum: (1) an Education track, for those pursing college
            education; (2) a Technical Training track, for those seeking to
            attend technical school or earn a credential; and (3) an
            Entrepreneurship track, for those wanting to start a business.
             CAPSTONE Event: At least 90 days before their
            separation from Military Service, servicemembers will
            participate in a CAPSTONE event, which will verify that
            transitioning servicemembers completed the Transition GPS
            curriculum and achieved Career Readiness Standards.
            Servicemembers who require additional assistance will be
            referred to additional or remedial training opportunities. In
            addition, through the CAPSTONE event, all servicemembers will
            be offered a ``warm handover'' to government agencies and
            organizations that will be able to provide them continued
            benefits, services, and support as veterans.
             Military Life Cycle Transition Model: The new
            transition program will incorporate career readiness and
            transition preparation into the entire span of a
            servicemember's career. In the past, transition and preparation
            for the civilian workforce occurred late in a servicemember's
            lifecycle--near the point of separation. Under this new
            program, these concepts will be incorporated earlier as a way
            to ensure that the counseling, assessments, and access to
            resources to build skills or credentials occur at earlier
            stages.
                                     ______

        Chairman Gillibrand, Senator Graham, and distinguished members of
    the subcommittee, thank you for the opportunity to speak about the
    Department of the Navy's personnel programs and about the sailors,
    marines, and civilians who comprise the Department of the Navy.
        There have been many significant and successful changes in the
    Department of the Navy personnel policies and programs since I
    testified before you last spring.
        In accordance with the January 24, 2013, Secretary of Defense
    Memorandum, ``Elimination of the 1994 Direct Ground Combat Definition
    and Assignment Rule,'' we will submit the Navy and Marine Corps
    implementation plans in May to the Secretary of Defense. These plans
    will provide details on how we intend to move forward with our
    expansion of opportunities for females to serve in previously closed
    Military Occupation Specialties (MOS), ground combat units, and those
    positions closed due to privacy and berthing restrictions. We have made
    great strides by opening positions on submarines and assigning women to
    previously closed ground combat units at the battalion level. We
    continue to offer the opportunity for female lieutenants to volunteer
    for training at the Marine Corps Infantry Officer Course immediately
    following graduation from The Basic School. We are committed to
    providing women with the same opportunities as their male counterparts
    while maintaining the highest levels of combat readiness and
    capitalizing upon every opportunity to enhance our warfighting
    capabilities.
        The Department of the Navy is supporting ongoing efforts by the
    Department of Defense to review and extend benefits, including
    compensation benefits, to same-sex domestic partners of servicemembers.
    Many benefits are currently available to same sex domestic partners by
    designation of servicemembers. At the direction of the President, the
    Department of Defense established a Joint Benefits Review (JBR) working
    group. Comprised of representatives from all the Services, the JBR's
    mission is to conduct a careful and deliberative review of the benefits
    currently provided to the families of servicemembers. The working group
    has identified 22 additional family well-being, child and youth
    program, family support, travel and transportation, and survivor and
    death benefits that can be lawfully provided to the same-sex domestic
    partners of servicemembers and their families through changes to
    Department of Defense policies and regulations. On February 11, 2013,
    then-Secretary of Defense Panetta directed the extension of these
    benefits to same-sex domestic partners and their children once the
    servicemembers and their same-sex domestic partners sign declarations
    attesting to the existence of their committed relationship.
        Implementation of these benefit changes requires substantial policy
    revision, training, and technical upgrades. The Department of the Navy
    will extend the 22 additional family member and dependent benefits to
    eligible same-sex domestic partners of servicemembers no later than
    October 1, 2013, subject to approval by the Secretary of Defense.
    Meanwhile, the Department of the Navy will continue to comply with
    existing law and will review the extension of military benefits in
    conjunction with OSD and the other services should a change in law
    occur.
        In addition to ensuring our manpower and personnel policies meet
    our country's security requirements, it is my honor and privilege to
    represent and advocate for the more than 800,000 sailors, marines, and
    civilian employees who are always prepared to respond to whatever our
    Nation demands.
        Vice Admiral Van Buskirk and Lieutenant General Milstead will
    address their respective Service's personnel plans in detail, but I
    would like to touch on some common challenges the Department of the
    Navy faces as a whole.
        Last March, the Secretary of the Navy unveiled the 21st Century
    Sailor and Marine Initiative which is designed to place an increased
    focus on the resiliency and fitness of our servicemembers. With so much
    of our new defense strategy dependent upon the Navy and Marine Corps,
    we must ensure that our resources support the most combat effective and
    the most resilient force in our history. We set high standards and
    provide individuals with the services and training needed to meet those
    standards.
        Aligned with the Defense Strategic Guidance's direction to maintain
    a ready and capable force, the 21st Century Sailor and Marine
    Initiative is designed to maximize sailor and marine personal
    readiness, to maintain the resiliency of the force, and to hone the
    most combat effective force in the history of the Department of the
    Navy. The 21st Century Sailor and Marine Initiative consists of five
    basic ``pillars'': Readiness, Safety, Physical Fitness, Inclusion, and
    Continuum of Service. Our intention is to maximize sailor and marine
    personal readiness and resilience by concentrating on all five pillars.
        The Navy will continue to provide a well-trained, healthy force in
    order to maximize our greatest military advantage and the bedrock of
    our Navy and Marine Corps--our sailors and marines. To accomplish this,
    our leadership team will do all we can to provide each member with the
    resources needed to maintain resiliency. The Navy will continue efforts
    to reduce suicides, curb alcohol abuse, deter the illegal use and
    misuse of drugs--including emerging synthetic drugs and prescription
    drugs, prevent sexual assaults, improve motorcycle safety, move to a
    culture of physical readiness, offer healthful and nutritious dining
    options, expand diversity (ideas, expertise and backgrounds) and
    provide tools for life after military service.
        After more than a decade of war, and given the challenges in the
    broader economy, we must honor our commitment to veterans and Wounded
    Warriors by taking concrete steps to facilitate their transition to
    civilian life. A key achievement over the last year is the progress
    made with regard to transition support and reintegration. In fiscal
    year 2012, The Department of the Navy hired 10,867 veterans into
    civilian positions (59 percent of new hires). Of these, nearly one-
    quarter (2,540) were disabled veterans and 1-in-10 was a Wounded
    Warrior.
        The Department of the Navy has just over 200,000 U.S. direct hire
    civilians as of December 2012. Veterans, including wounded warriors and
    disabled veterans, comprise a majority of our civilian workforce. The
    Navy civilians operate across a broad spectrum of 558 occupations, to
    include world-class scientists and researchers who develop and procure
    cutting-edge weapons and equipment. More than half of the civilian
    workforce is made up of technical professionals such as engineers,
    logisticians, mathematicians, scientists, acquisition specialists, and
    members of the medical community.
        Because of the combination of sequestration and the fiscal year
    2013 continuing resolution, Navy Commands have been operating under an
    across-the-board civilian hiring freeze to reduce spending, primarily
    in the Operations and Maintenance (O&M) accounts, since January.
    Fortunately, the Marine Corps has been able to avoid so drastic a
    measure. Sustained execution of a hiring freeze severely hampers the
    Navy's ability to recruit a skilled and talented workforce capable of
    executing its mission. Critical gaps created by ongoing vacancies
    affect the Navy's readiness and could negatively impact execution for
    many months to come.
        One consequence of the hiring freeze is a significant reduction in
    our hiring of veterans and Wounded Warriors. The number of veterans
    hired in February 2013 totaled only 355, compared to 925 in December
    2012. Similarly, the numbers of Wounded Warriors and disabled veterans
    brought onboard in February dropped to 97, a sharp decrease from the
    306 in December.
        Additionally, the sequestration required DOD to consider
    furloughing civilian personnel. The reduction in pay associated with
    furloughs, in conjunction with the hiring freeze, could severely impact
    our ability to attract and/or retain employees in our mission critical
    occupations.
        The Navy views civilian furloughs as an option of last resort. Our
    civilian employees are absolutely critical to the Navy and Marine Corps
    team that is more than 10 years into the longest sustained period of
    combat operations in American history. Our civilians have responded to
    the increased operational tempo of the last decade, but the impact of a
    furlough, combined with continued pay freezes, may severely damage
    morale and retention. This proposed civilian furlough affects all
    levels of the department, from blue collar workers to members of the
    Senior Executive Service. Exceptions are extremely rare, largely
    limited to those deployed in a combat zone; those responsible for
    safety of life and property (mostly police, fire fighters, and nuclear
    accident responders); those who provide 24-hour inpatient and emergency
    care; those funded by the Foreign Military Sales trust fund; and
    civilian mariners at sea. DOD has also exempted foreign nationals,
    select child care employees and non-appropriated-fund employees. As it
    currently stands, mid-June is the earliest possible date for a civilian
    furlough. We continue to prepare our employees and our Commands for the
    impact this would have on our operations.
        Another topic of special concern is sexual assault and prevention.
    Both the CNO and the CMC have clearly made these issues a high priority
    for senior leaders. The Marine Corps instituted the Sexual Assault
    Prevention and Response Campaign Plan 2012, and the Navy focused on
    improving the victim support process. We hold ourselves to a high
    standard of conduct and we will not tolerate sexual assaults within our
    ranks.
        The Department of the Navy is committed to a Department-wide
    culture of gender respect where sexual assault is completely eliminated
    and never tolerated, and where sexual assault victims receive
    compassionate and coordinated support. This ongoing effort is a top
    priority of the Department and its two Services--the Navy and the
    Marine Corps. There are challenges yet to overcome, but we have
    accomplished much.
        Our Department-level sexual assault prevention strategy since 2009
    has had three main components, each of which has shown progress during
    fiscal year 2012 and fiscal year 2013. The first involves the
    progressive dissemination of a clear, consistent, top-down leadership
    message that sexual assault is never acceptable anywhere in the
    Department of the Navy, and that all sailors and marines have shared
    responsibilities for their own behavior and for protecting each other
    from sexual assault. The second component involves the broad
    application of updated Service-wide training tools across the Navy and
    Marine Corps. Influencing the attitudes and behaviors of young sailors
    and marines requires their repeated exposure to training that is
    informative, relevant, and pertinent to them. Our third strategy
    component involves testing new initiatives to determine their efficacy
    in actually preventing sexual assaults. Experience at the Navy's
    Training Support Command Great Lakes has been very encouraging, and we
    are working to distill the key insights from numerous simultaneous
    initiatives there, and to apply the more effective ones elsewhere.
    Underlying all of these concepts is our commitment to candid self-
    assessment using insights from anonymous surveys, sexual assault case
    reviews, and site visits to Navy and Marine Corps locations worldwide.
    Our tactical objective is to reduce the number of sexual assaults
    involving sailors or marines with a special focus on preventing the
    most egregious forms of sexual assault.
        During fiscal year 2012, both Services deployed innovative new
    sexual assault prevention training tools. At the Department level, we
    distributed over 15,000 copies of a newly-published Commander's Guide
    containing information on departmental priorities, background data, and
    specific suggestions on the management of sexual assault cases. We also
    fielded half-day leadership programs at eight concentration sites of
    Navy and Marine Corps operational forces in the United States and
    abroad. Each session combined summaries of Departmental insights and
    priorities, along with presentations by an outside civilian expert with
    unique experience in sexual assault criminal investigations and
    offender profiling. A separate, live-acted, vignette-based educational
    program, which emphasized the importance of bystander intervention in
    preventing sexual assault, was presented simultaneously to packed
    theaters of sailors and marines. In addition, work is nearing
    completion on a professionally produced Department-level sexual assault
    prevention and response (SAPR) training video suitable for Department-
    wide use and focused on educating and orienting Navy civilians.
        The Navy leadership has worked with both Services to improve sexual
    assault victim support services. In addition to coordinating Service-
    level strategies for implementing new requirements established in NDAA
    2012 for full-time victim advocates and sexual assault response
    coordinators, the Under Secretary of the Navy worked directly with the
    Naval Audit Service and Navy-SAPRO to assess the responsiveness of 24/7
    telephone access to SAPR services for sexual assault victims. The
    result has been a dramatic improvement in performance and the
    establishment of formal Navy standards. In another area, the Department
    partnered during fiscal year 2012 with the Department of Justice (DOJ)
    to develop a DOJ grant project to explore the efficacy of tele-medicine
    support for Sexual Assault Forensic Exams at remote sites. The
    Department of the Navy is the only Military Department engaged with DOJ
    in this effort, and our insights have helped shape the focus of ongoing
    project development.
        From suicide reduction to sexual assault prevention and response,
    the Department of the Navy's 21st Century Sailor and Marine Initiative
    is addressing, head on, the critical and urgent issues facing our
    sailors, marines, and their families. As part of our aggressive drug
    demand reduction efforts, we have expanded our drug-testing panel to
    include synthetics like ``Spice''. We have also ended discount
    ``subsidies'' on the sale of tobacco products in our Navy and Marine
    Corps Exchanges while providing no-cost tobacco cessation products for
    those trying to quit and improving education and training programs to
    steer potential new consumers away from ever starting. In short, the
    21st Century Initiative is providing the tools needed to face
    challenges through a variety of programs aimed at fostering a healthy
    lifestyle, both on and off duty. We commit to continue these efforts to
    ensure a safe, healthy, resilient and ready force.
        The budget process requires a careful balancing of resources and
    assessment of risk. The President's fiscal year 2014 budget and the
    Future Years Defense Program are the results of difficult decisions and
    tradeoffs. The final product meets mission requirements while providing
    appropriate compensation and benefits for our Active Duty, Reserves,
    civilian employees, and military retirees.
        In response to the newly enacted requirement to ``establish
    policies and procedures for determining the most appropriate and cost
    efficient mix of military, civilian, and contractor personnel to
    perform the mission of the Department of Defense'' contained in Section
    931 of the National Defense Authorization Act of 2012, the Department
    of the Navy has established the Total Force Integration Board (TFIB),
    which I chair. The TFIB serves as the principal forum for Total Force
    Planning and Management efforts, including determination of optimal
    workforce mix across the Navy enterprise. Additionally, as of September
    2012, the Department of the Navy has implemented the Contractor
    Manpower Reporting Application (CMRA) which provides for the
    identification of Service contracts and labor hours expended within the
    Navy as reported by the contractors. These data will be aggregated and
    reported to Congress beginning in fiscal year 2014. The application is
    modeled after the Army's version of CMRA and may eventually transition
    to an enterprise-wide version of CMRA at the OSD level.
        Both Sea Services will strive to meet their operational
    requirements with as efficient a force as possible. For the Navy this
    means continuing to move sailors from shore support functions to sea
    duty to enhance operational readiness. Such a shift means not only
    fewer sailors available for mission critical work ashore, but also that
    sailors will, on average, spend more time at sea away from their
    families. For the marines, the reduction of nearly 20,000 end strength
    coincides with the planned withdrawal from Afghanistan, but will
    require careful balancing to maintain the right mix of seniority and
    specialties.
        Our highest priority remains the care and the recovery of our
    wounded, ill, and injured servicemembers. The Department of the Navy is
    leading the way in innovative therapeutic treatments of our wounded
    warriors and these efforts include our continued focus and research in
    the areas of traumatic brain injury (TBI) and post-traumatic stress
    disorder. The Navy is collaborating with the other Services, our
    Centers of Excellence, the Veterans Administration, and leading
    research and academic centers. We continue to make progress but
    recognize there is more work ahead in this area.
        We continue to search for innovative ways to improve the efficiency
    and capability of our forces as well as the quality of life of our
    members and their families. The Navy is actively preparing for the
    congressionally-created commission on military compensation and hopes
    for increased flexibility to meet our requirements with both efficiency
    and fairness to our members and retirees.
        We wish to thank the committee members for your continuous and
    unwavering commitment to support the Navy and Marine Corps and the men
    and women who, as sailors and marines, serve bravely in Afghanistan,
    spend months at sea apart from their families, guard embassies
    throughout the world, conduct humanitarian missions whenever and
    wherever needed, and perform countless other missions, often under
    unimaginably demanding conditions and circumstances.
        The following service specific information is provided for the
    committee. We look forward to your questions.

        [The prepared statement of Vice Admiral Van Buskirk
    follows:]

              Prepared Statement by VADM Scott R. Van Buskirk, USN

                                I. INTRODUCTION

        Chairman Gillibrand, Ranking Member Graham, and distinguished
    members of the subcommittee, I am honored to appear before you today to
    review Navy manpower, personnel, training, education and family support
    programs and priorities for fiscal year 2014.
        These are clearly challenging times for all of us. With budget
    concerns continuing and the pressures of increased OPTEMPO we are
    asking sailors to do more than ever before. Navy has had to make tough
    and sometimes unpopular decisions; however, we remain committed to
    supporting sailors and their families through this challenging time.
    While we have planned for, and are executing, prudent reductions; the
    majority of the impacts will not take effect until this summer. My
    primary concern is the potential for a slowdown in training and impacts
    on recruiting our future force, resulting in reduced manning and
    quality of our deployable forces. Our sequestration planning
    specifically attempted to avoid training and recruiting impacts;
    however, the depth and prevalence of reductions, increase the
    probability of an unintended training slowdown and challenge in
    accessing quality recruits.

                      II. A READY AND CAPABLE GLOBAL NAVY

        In the past year, since assuming duties as Chief of Naval Personnel
    and Deputy Chief of Naval Operations (Manpower, Personnel, Training,
    and Education), I have had the opportunity to observe and assess where
    the Navy is and where it needs to go within the manpower, personnel,
    training, and education domain. Navy is America's away team--relevant
    and in demand--for peace keeping duties and power projection. As we
    expand America's focus in the Pacific Theater, Navy assumes an
    increasingly critical role in the Defense Strategic Guidance. As we
    work to achieve the Chief of Naval Operations' tenets of Warfighting
    First, Operate Forward, and Be Ready, I have established as my three
    strategic priorities, Responsive Force Management, Effective Personnel
    Readiness and Sound Organizational Management.

    Responsive Force Management:
        We must maintain forward progress to properly man the fleet with
    trained and experienced sailors. This begins with attracting the most
    qualified youth of America to serve in the Navy by demonstrating the
    many opportunities and rewards associated with naval service, and
    appealing to their pride in our Nation, commitment to its ideals, and
    devotion to protecting its freedoms. It continues with providing world-
    class training and education opportunities to prepare them to excel in
    maritime-centric jobs in an increasingly technical fleet comprised of
    fewer and less manpower-intensive platforms and weapon systems.

    Effective Personnel Readiness:
        We must capitalize on investments in sailors, both officer and
    enlisted, by providing the incentives needed to retain the best and to
    achieve and sustain optimum fleet readiness. Compensation remains an
    important part of our incentives system but is only a part of what we
    must do to preserve the world's best All-Volunteer Force. We must
    continue to offer the best training available and provide opportunities
    for off-duty education to enhance the force and help our people meet
    their education goals. Highly educated sailors are our best performers
    and tend to stay in the Navy making them key to Navy's success. We must
    continue to build resiliency among sailors and their families. We ask
    much of our men and women in uniform and those who support them at
    home. We owe them the tools to help them endure and thrive in
    challenging environments and under demanding circumstances.

    Sound Organizational Alignment:
        The fleet is our primary customer and we must ensure that every
    decision and action supports the needs of the fleet and its sailors.
    Shortly after assuming the helm as Chief of Naval Operations, Admiral
    Greenert issued direction to optimally position his headquarters staff
    to meet the demand signals provided by fleet and combatant commanders.
    We continue to evaluate our effectiveness in delivering what the fleet
    requires and to ensure that we align ourselves to be on time and within
    budget. We must ensure effective coordination and communications among
    major headquarter organizations, fleet and shore commands, and our
    support organizations, to deliver the best possible services to sailors
    and their families in all areas of Navy manpower, personnel, training,
    and education.
        In addition to these three strategic priorities, my primary mission
    objectives are to effectively Stabilize, Balance and Distribute the
    force. Since the mid-1990s, Navy end strength has trended downward,
    consistent with manpower needs dictated by a decreasing force structure
    and, more recently, withdrawal from Iraq and Afghanistan. However,
    beginning in fiscal year 2013, we began a period of slow growth to
    stabilize the force, increase manning at sea, improve sea/shore flow
    and increase the Navy's Cyber capabilities. As we worked to determine
    the proper force size, we conducted a requirements-based process to
    properly balance the force in size, seniority, and skill mix, and to
    enhance capabilities to better distribute qualified personnel to the
    right places at the right time. This set the stage for long-term force
    stabilization while maintaining effective personnel readiness.
        To stabilize, balance, and distribute the force, it is essential
    that sailors are assignable, deployable, and distributable. Given the
    demands placed on our people over the past decade, including the
    stresses of war and high operational tempo, we have placed
    unprecedented emphasis on force resiliency. Fit and resilient sailors
    are critical to Navy readiness. We must continue to bolster Navy
    families to meet the demands we place on them; the 21st century sailor
    initiatives provide the priority and resources necessary to permit
    sailors to achieve excellence while instilling confidence through our
    unwavering commitment to them and their families. It is imperative that
    we continue to commit resources toward programs that build force
    resiliency.

                        III. RESPONSIVE FORCE MANAGEMENT

        Responsive Force Management strategic priorities are focused on end
    strength, compensation, fleet manning, retention, recruiting, and
    training throughput.

    Stabilize End Strength:
        The President's fiscal year 2014 budget request supports active end
    strength of 323,600, and selected Reserve end strength of 59,100. The
    request seeks $27.8 billion in Military Personnel, Navy (MPN)
    appropriations, and $1.8 billion in related Operation and Maintenance,
    Navy (O&MN), appropriations. The request includes $1.9 billion for
    Reserve Personnel, Navy (RPN) and $24.9 million in related Operation
    and Maintenance, Navy Reserve (O&MNR) appropriations.
        Navy has invested in additional strength to help reduce manning
    gaps at sea, while concurrently restoring targeted shore billets to
    provide adequate shore rotational assignments for sailors in sea-
    intensive ratings, and at regional maintenance centers and afloat
    training groups. These additional billets will not only help improve
    sea/shore flow, they will develop additional trained sailors with
    advanced maintenance skills while on shore duty, who will return to sea
    better prepared to make an immediate technical contribution to their
    commands. In the near-term, we are also increasing strength among
    junior officers in the surface and submarine warfare communities to
    meet future department head requirements. Our budget request
    appropriately balances risk, preserves capabilities to meet current
    fleet and joint requirements, fosters growth in emerging mission areas,
    and provides vital support to sailors and Navy families, as we
    carefully monitor personnel and fleet readiness. We are also applying
    and adjusting force management tools to retain the right skills, pay
    grade, and experience-mix necessary to provide mission-ready naval
    forces. End strength continues to grow across the Future Years Defense
    Program until it stabilizes at approximately 326,100 in fiscal year
    2018.
        We are carefully managing reduction of over 3,000 positions from
    the Reserve billet base, to 59,100 end strength. These adjustments
    align the Selected Reserve with post Operation Enduring Freedom
    requirements, reconfiguration of the Navy Expeditionary Combat Command,
    and the new Defense Strategy, while retaining capabilities vital to
    fulfilling the Reserve component role in Navy's Total Force mission. By
    calibrating accessions, offering increased active duty augmentation and
    recall opportunities, and allowing for natural attrition, the Navy
    Reserve will accomplish this reduction within strength and fiscal
    controls. In the long term, however, the Navy Reserve Force will grow
    to approximately 60,000, and the Reserve mission-set is increased to
    include shipyard maintenance augmentation, unmanned aerial vehicle
    support, maritime operations center augmentation and additional
    intelligence, cyber and information dominance.

    Effective Force Management:
        Perform to Serve (PTS) remains our primary force-management tool to
    maintain balance across all enlisted ratings by ensuring that we have
    the right number of enlisted sailors in each rating at the right
    experience level. Through PTS, which uses performance criteria within
    individual ratings and length of service cells to ensure long-term
    sustainment of experience, we have made significant progress toward
    achieving balance across all enlisted ratings, reducing the number of
    overmanned ratings from 35 in 2011, to just 9 today.
        Improved rating balance has resulted in more reenlistment
    approvals. In 2011, approximately 60 percent of PTS requests were
    approved, while just 1 year later 80 to 90 percent were approved, and
    advancement opportunity increased. PTS also allows sailors not selected
    for retention in their current rating to consider, as alternatives to
    leaving the Navy, converting to a new rating or transitioning into the
    Navy Reserve.

    Compensation:
        Compensation is a critical force-management tool. As we look for
    cost saving measures, we strive to ensure that we will not disadvantage
    sailors; rather we will look to preserve the strength of the All-
    Volunteer Force and ensure fiscal sustainability of our pay and
    benefits programs. Special and Incentive (S&I) pays provide flexible
    compensation incentives to address specific manning needs or other
    force management issues not efficiently addressed through basic pay
    increases alone. Navy judiciously applies S&I pays, such as Enlistment
    Bonuses, Selective Reenlistment Bonuses and Critical Skills Retention
    Bonuses, to recruit and retain sailors in key occupation specialties or
    critical skill areas. S&I pays are also provided as compensation for
    onerous or hazardous duty assignments or conditions, and for
    maintaining proficiency in specific skills important to national
    security.

    Recruiting:
        Navy has worked hard to achieve strong recruiting success over the
    past 5 years by attracting the Nation's best and brightest for
    America's Navy. Our recruiting brand, ``America's Navy-A Global Force
    for Good'', captures CNO's priorities while appealing to our 17-24
    year-old recruiting market. In fiscal year 2012 and fiscal year 2013-
    to-date, Navy achieved accession goals for officers in the Active
    component, and for enlisted in both the Active and Reserve components.
    We continue to do well recruiting into priority ratings in the Naval
    Nuclear Propulsion Program (NNPP) and Navy Special Warfare/Special
    Operations (NSW/SPECOPS). Additionally, we attained the highest quality
    future sailors in history, with 99 percent of accessions entering as
    high school diploma graduates, and 90.2 percent of accessions scoring
    in the upper 50th percentile on the Armed Services Vocational Aptitude
    Battery (ASVAB).
        Navy Recruiting leading indicators forecast that our recruiting
    mission will become increasingly challenging. While the quality of
    accessions rose between fiscal year 2009 and fiscal year 2012,
    accession quality has begun trending downward, and is expected to
    close-out the year with approximately 85 percent of accessions scoring
    in the upper 50th percentile on the ASVAB. While still well above DOD
    and Navy minimum standards, this trend is a source of concern as we
    continue our efforts to recruit the best America has to offer.
    Additionally, each month, Navy is meeting enlistment contracting goals
    later in the month. The impact of sequestration on recruiting
    resources, particularly marketing and advertising, will further
    increase our recruiting challenges.
        Navy achieved most Active component officer recruiting goals in
    fiscal year 2012, but experienced a shortfall in attaining direct
    accession physicians, which was offset by success in recruiting within
    student medical officer programs. We were also successful in recruiting
    officers into the priority NNPP and NSW/SPECOPS mission areas. Success
    in officer program recruiting was further reflected by the highest ever
    quality and number of diversity applicants into the NROTC Program.
        For the Reserve component, Navy faced challenges again this past
    year with recruiting for the General Officer unrestricted line
    communities (e.g., surface, submarine, and aviation warfare) primarily
    because of high active duty retention rates. In recent years, we have
    also had challenges in recruiting specialized medical professionals for
    the Reserve Component (e.g., surgeons, anesthesiologists) due to high
    active duty retention, stiff competition from the civilian healthcare
    community, and perceived risk to civilian medical practices due to
    frequent mobilizations.
        Fiscal year 2014 is projected to be more challenging for both
    officer and enlisted recruiting. Consequently, we will balance
    recruiter manning, accession bonuses, and the marketing and advertising
    budget, to continue to aggressively attack challenging areas, such as
    healthcare specialties, and maintain focus on priority recruiting
    mission areas. The fiscal year 2014 budget requests $269 million for
    recruiting programs, including accession incentives, advertising, and
    support for Active and Reserve recruiters despite the improving
    economic forecast, our budget request ensures that the recruiting force
    remains appropriately sized and resourced for success.

    Selection and Classification Programs:
        Effective selection and classification programs are the foundation
    of Navy efforts to properly man the fleet to current and future
    requirements in this dynamic environment. We are using state-of-the-art
    technology and processes to hire recruits into jobs optimally suited to
    their abilities and interests. This same technology is used to identify
    sailors for lateral conversion into mission critical career fields.
    These programs have had a significant impact on reducing training
    losses, increasing retention and increasing promotion opportunity.

    Fleet Manning:
        Navy manpower has decreased by more than 50,000 sailors since 2004,
    through a combination of reduced force structure and reduced manning
    aboard individual ships and aircraft, causing an imbalance between sea
    and shore billets and between ratings. As a result of efforts that
    began in fiscal year 2012 to improve fleet manning by moving
    approximately 6,000 billets from shore to sea, fleet manning is
    projected to improve throughout the remainder of the fiscal year while
    gaps at sea decrease from about 11,600 to 7,800. We also project that
    by the end of the fiscal year, nearly 95 percent of all enlisted
    billets at sea will be manned, with close to 90 percent filled by the
    right sailor with the proper seniority and appropriate skill level and
    training.
        Through various force management tools, including special and
    incentive pays applied to critical skills, voluntary/involuntary
    distribution, funding the Individuals Account and shore billets for sea
    intensive ratings, Reserve to Active augmentation, and Active Duty
    Definite Recall Program for Reserve Enlisted, we are shaping sailor
    behavior to attain optimum fleet manning. Selective application of
    these tools is helping retain sailors in undermanned skills, but
    requires continuous assessment and regular adjustments to account for
    changing economic conditions. Ultimately, we must ensure that gaps at
    sea are filled by the right sailor, with the right skills at the right
    time.

    Retention:
        Navy aggregate enlisted retention continues to be strong compared
    to last year, with increased retention in all zones. However, retention
    in select areas is challenging and our current key focus is on first
    term sailors. Four years ago, we reduced accessions so that we could
    retain more career sailors. Consequently, as these cohort groups enter
    their reenlistment windows, we now need a greater percentage of first
    term sailors to reenlist. As we monitor personnel and fleet readiness,
    with a focus on increasing sea duty manning, we are applying force
    management tools, where appropriate, to retain the right skills across
    pay grades. Our new and existing policies encourage sailors to commit
    earlier to stay for longer periods, affording increasing predictability
    of future personnel readiness. We recently updated reenlistment bonuses
    to target junior enlisted personnel to attain first term retention
    goals in fiscal year 2013, and sustain a healthy force into the future.
        To position Navy to meet future mission requirements, we must
    balance the force by recruiting and retaining officers in the right mix
    of specialties. Officer inventory shortfalls remain in several critical
    communities. Offering precise targeted incentive pays and bonuses is
    essential to maintaining and improving manning in these mission-
    essential specialties.

                       IV. EFFECTIVE PERSONNEL READINESS

        The Effective Personnel Readiness strategic priorities focus on
    matching sailors with jobs for which they are well-suited; and on
    sailor quality of life, training, education, and family support.
    21st Century Sailor and Marine Initiative:
        In March 2012, the Secretary of the Navy announced the 21st Century
    Sailor and Marine initiative. To maximize sailor personal readiness, we
    designed objectives and policies to maintain the resiliency of the
    force and to hone the most combat effective force in the history of the
    Department of the Navy. Our aim is to prepare sailors and their
    families to face life's challenges through a myriad of programs focused
    on creating a balanced lifestyle, on- and off-duty, while specifically
    addressing the needs of wounded warriors through our Navy Safe Harbor
    Program.

             Health of the Force. Navy's assessment of the overall
            health of the force is good, morale remains high and work
            satisfaction increased over the last 12 years. Our sailors are
            choosing to remain in the Navy; aggregate retention remains
            strong, though some areas continue to prove challenging. The
            2012 Quality of Life Survey and Behavioral Health quick polls
            revealed positive feedback with standard of living/income and
            job satisfaction, while concern was expressed about manning
            shortages, long work hours and high operational tempo. As
            deployment lengths and schedules change, based on world events,
            we must monitor the impact on sailors and their families and
            understand the underlying factors that may distract from our
            operational goals. We expect the assessment of the health of
            the force to remain strong; however, there are areas that
            require significant continued focus and efforts, specifically
            prevention of suicides and sexual assaults. Additionally, we
            remain committed to providing quality care and robust programs
            through our wounded warrior Safe Harbor program.
             Suicide Prevention and Operational Stress Control.
            Suicide prevention extends beyond specific program efforts and
            strives to create an open environment that reduces barriers and
            encourages sailors to seek help. Navy's suicide prevention
            strategy concentrates on moving prevention as far left of the
            potential event as possible through effective execution of five
            lines of effort: Education and Awareness, Prevention and
            Intervention, Sailor Care and Transformational Growth,
            Physical, Mental and Spiritual Fitness, and Assessment. Navy
            focuses on building personal resilience, promoting peer-to-peer
            support, enhancing family relationships, enabling intervention
            up-and-down the chain of command, and fostering a command
            climate in which help-seeking behaviors enable sustained
            personal resilience. Our robust programs include:

                     Navy's Operational Stress Control (OSC)
                    Program;
                     Reserve Psychological Health Outreach Program
                    (RPHOP);
                     Navy Mobile Care Teams;
                     Deployment Health Assessments;
                     Returning Warrior Workshops;
                     Project FOCUS (Families Overcoming Under
                    Stress);
                     Coalition of Sailors Against Destructive
                    Decisions (CSADD); and
                     Crisis Intervention and Response.

                      Navy leadership is determined to prevent suicides in
                    our force; the loss of even one life to suicide is a
                    one too many.

             Sexual Assault Prevention and Response (SAPR). Sexual
            assault rates in the Navy remain unacceptable; we are committed
            to achieving a steady reduction in the incidence of sexual
            assault to eradicate this abhorrent crime from our ranks. Our
            lines of effort to combat sexual assault are: Education and
            Awareness, Prevention and Intervention, Victim Advocacy and
            Resiliency, Investigation and Accountability and Assessment.
            Navy has focused proactively on prevention programs, expanded a
            successful model instituted at Recruit Training Command,
            focused on individual unit climates and instituted enhanced
            victim care, prosecution measures and reporting procedures. We
            will continue to aggressively promote and foster a culturally
            aware and informed Navy; respectful of all, intolerant of
            sexual assault, and supported by a synergistic program of
            prevention, advocacy and accountability.
             Alcohol and Substance Abuse Prevention. Navy's ``zero
            tolerance'' drug abuse policy is comprised of three key
            elements: detection, deterrence, and prevention. Navy Alcohol
            and Drug Abuse Prevention (NADAP) is a comprehensive, science-
            based program consisting of sailor education, prevention
            awareness, advocacy, trend analysis/threat assessment, and
            intervention. This past year, NADAP achieved tangible goals in
            reducing the number of positive urinalysis and alcohol-related
            incidents and increasing Navy leadership awareness of
            prevention programs. In 2012, Navy incorporated testing for
            synthetic drugs, including spice and bath salts. The testing
            regimen is robust and flexible enough to adjust testing
            protocols to the dynamic synthetic drug market through a
            collaborative arrangement with intelligence resources that
            track market changes. Initial indications are that this is
            having the desired deterrent effect on synthetic drug use. We
            recently implemented use of hand-held Alcohol Detection Devices
            (ADD) as an education and awareness tool to provide sailors and
            commands the ability to readily identify the impact of alcohol-
            use decisions.
             Family Support. Navy recognizes that military service
            presents unique challenges and opportunities for sailors and
            their families. Family support programs assist commanding
            officers and Navy families in managing the demands of military
            life in concert with a healthy family life. Fleet and Family
            Support Centers provide services that include deployment
            support, crisis response, and career support and retention
            programs. Navy leadership is committed to investing and
            increasing resources for Sailor and Family Readiness Programs,
            including:

                     sexual assault prevention and response;
                     alcohol awareness and deglamorization;
                     drug detection and abuse prevention;
                     Navy Safe Harbor wounded warrior support;
                     suicide prevention and resiliency;
                     casualty assistance and funeral support;
                     child care; and
                     Morale, Welfare, and Recreation.

                      We are working to minimize the impacts of
                    Sequestration on Sailor and Family Readiness programs
                    to avoid adverse affects on the people each of them
                    supports.
                      Navy's budget request adds $18 million to support
                    full implementation of the VOW Act and Veterans
                    Employment Initiative (VEI). We are also implementing a
                    re-designed Transition Assistance program, entitled
                    ``Transition GPS'' (Goals, Plans, Succeed)), which
                    includes delivery of legally mandated requirements,
                    such as Pre-Separation Counseling, Department of Labor
                    (DOL) Employment Workshop and a Department of Veterans
                    Affairs (VA) Benefits briefing. Transitioning sailors
                    will also have the option of participating in a series
                    of two-day tailored instructional tracks within the
                    transition GPS curriculum:

                     a higher education track, for those pursuing a
                    college degree;
                     a technical training track, for those seeking
                    job-ready skills and industry-recognized credentials in
                    shorter-term training programs; and
                     an entrepreneurship track for those desiring
                    to start a business.

                      The design of all of fleet and family support
                    programs is to help families be resilient, well-
                    informed, and adaptable.

    Training and Education:
        Our most critical obligation in the continuum of training is
    providing sailors with the most relevant knowledge, skills, and
    abilities as quickly as possible to achieve optimal knowledge transfer
    and make best use of finite resources. This means using our established
    end-to-end curriculum content development-and-revision process to
    identify the most cost-effective solutions to deliver training without
    sacrificing quality. As new weapon systems and platforms are
    introduced, we must ensure that innovative techniques, such as
    interactive multimedia, simulators, and avatars, are applied when
    appropriate.
        Navy has developed a plan to improve timeliness, relevance, and
    comprehensiveness of technical training. Modularized training optimizes
    the initial training pipeline and provides continuous training
    opportunities as sailors progress through their first tours. This
    approach creates flexibility in the pipeline and allows sailors to
    report sooner to their first duty station, armed with the necessary
    skills to have an immediate positive impact. Strategically distributing
    training delivery, so that sailors receive only the instruction
    necessary to perform their immediate duties, minimizes time between
    instruction and utilization, thereby, reducing knowledge-and-skill
    decay associated with current delays. Pilot programs evaluate the
    modularized training concept to ensure training quality remains high
    along the continuum.

             Asymmetric Advantage: There is an inherent premise
            that asymmetric warfare must deal with unknowns. The ability of
            our maritime forces to respond quickly to crises and eliminate
            threats is a direct result of exemplary training. Technical
            expertise gained through a variety of initial and advanced
            skills training gives sailors the ability to evaluate what
            needs to be done to fight and win. Navy's leadership training,
            mentoring, and coaching, contribute directly to development of
            a sailor's critical thinking skills, willingness to accept
            prudent risks, and ability to adjust rapidly based on
            situational assessment.
             The discipline, technical expertise and esprit de corps that
            enable us to win in combat also enable us to adapt to, and
            accomplish, other complex missions, such as humanitarian relief
            efforts at home and abroad. New technologies, combined with
            proven learning strategies, continue to drive cost-effective
            improvements in training. Intelligent tutoring systems and
            learning strategies leveraging simulation, virtual worlds, and
            emerging technologies, allow us to maximize training efficiency
            while improving training effectiveness and timeliness of
            delivery, ensuring our asymmetric edge is maintained.
             Nationally Recognized: In addition to meeting fleet
            performance requirements, initial skills training provided to
            new accessions has been consistently recognized by leading
            industry and training organizations for innovations that
            improve workplace learning. Over the past 2 years, our training
            commands were recognized by the prestigious American Society
            for Training and Development, with three ``Excellence in
            Practice'' awards and three citations. For the last 4 years,
            Navy has ranked as one of the country's top training
            organizations on Training Magazine's ``Top 125'' list. The high
            quality of training provided to our force is also demonstrated
            through thousands of college credit hours recommended by the
            American Council on Education, which supports our efforts to
            compete for the best talent in the Nation.
             Additionally, our training programs are internationally
            recognized. We provide training and education to foreign
            servicemembers and civilians from over 160 nations in support
            of the DOD Guidance for the Employment of Forces and the
            Maritime Strategy, for deeper partnerships, building partner
            nation capacity; and improving joint, allied and coalition
            interoperability. On any given day, over 1,270 international
            military students train at over 150 schools and activities in
            the United States and participate in a wide-range of training
            activities in foreign countries. In fiscal year 2012, we
            finalized training arrangements for U.S. grant programs, such
            as the International Military Education and Training Program,
            Counter Terrorism Fellowship Program and African Partnership
            Station.
             Transformative Training and Technology. Traditional
            Navy war-fighting communities (e.g., surface, aviation, and
            submarine) and the recently reconstituted expeditionary
            community, rely increasingly on simulators to conduct training.
            Simulators are among the most significant improvements in our
            training programs. As fidelity and access to simulator
            technology increase, prevalence of this technology is building
            at Navy schoolhouses, training commands and in the fleet.
            Investment in simulator training increases training capacity,
            effectiveness, and efficiency and reduces wear on platforms and
            operational equipment; thereby, minimizing operation
            maintenance and replacement costs. Simulators used for the
            expeditionary community are currently resourced through
            Overseas Contingency Operations (OCO) funding. Accordingly, we
            have requested an additional $3.3 million to facilitate
            shifting funding for this vital simulator training into the
            baseline budget.
             Joint and Professional Military Education. Naval War
            College (NWC) and Naval Postgraduate School (NPS) continue to
            deliver core mission functions that provide critical support to
            the maritime strategy. Both are central to Navy's strategic
            investment in Navy- and DOD-relevant education to develop a
            resilient, knowledgeable and adaptable force. With
            implementation of Enlisted Professional Military Education
            (EPME) in 2008, which includes Joint Professional Military
            Education (JPME), Navy has a progressive continuum of Navy-
            specific PME coupled with JPME, from pay grade E-1 through O-9.
             Voluntary Education/Tuition Assistance. Navy remains
            steadfast in our commitment to sustain the Tuition Assistance
            (TA) Program. The Chief of Naval Operations has assured sailors
            that TA will remain intact and available. We have made no
            changes to the program and continue to provide 100 percent
            funding up to the established caps for eligible sailors. While
            ongoing fiscal pressure will necessitate continued scrutiny of
            all investments, our goal is to ensure that we can continue
            meeting current obligations and fulfilling the educational
            goals of every sailor who desires to enroll. Our course
            completion rate is well over 90 percent, which we attribute in
            part to the exceptional support sailors receive from trained
            Navy education counselors. Each sailor, working with a
            qualified counselor, must develop an appropriate educational
            plan, which the counselor must approve before TA funding can be
            authorized and classes begin. Counselors ensure that sailors
            are prepared for the academic requirements associated with each
            sailor's approved plan and help them streamline an attainable
            degree completion process.
             Credentialing and Licensure. Navy Credentialing
            Opportunities Online funds over 17,000 credentials each year
            for approximately 7,500 individuals. Every Navy occupation has
            at least one professional credential available, with more than
            1,800 civilian certifications now funded. Additionally, the
            Navy Credentialing Program Office actively participates in the
            President's Education, Training, and Credentialing Strategic
            Working Group, in supporting the Presidential Call for a
            Career-Ready military by maximizing servicemember
            certifications in critical civilian job fields.
             Language, Regional Expertise and Culture (LREC).
            Navy's LREC program builds capability by incentivizing
            language, regional, and culture learning through relevant,
            cost-effective education and training products structured to
            meet operational requirements while leveraging proven, existing
            resources. The program incorporates regional and cultural
            content in Navy Professional Military Education (NPME),
            provides language acquisition and sustainment training to
            Cryptologic Language Analysts (CTIs) and Foreign Area Officers
            (FAOs), and makes nonresident language instruction available to
            sailors who require it. To encourage language learning for
            Naval Special Warfare commands, expeditionary units, and
            Afghanistan-Pakistan Hands, Navy expanded its Foreign Language
            Proficiency Bonus (FLPB) program to incentivize language skills
            at the proficiency levels specifically required for the
            operational readiness of those forces. Navy LREC also provided
            products and services to more than 110,000 sailors and
            coastguardsmen in 2013. In response to the Defense Strategic
            Guidance of January 2012, Navy has developed an Asia-Pacific
            Hands Pilot, which leverages existing educational resources to
            provide enhanced regional knowledge to select officers ordered
            to assignments in the Pacific Command Area of Operations.

                                   CONCLUSION

        The President's fiscal year 2014 budget request resources critical
    programs that will continue to support Navy manpower, personnel,
    training, and education priorities of: Responsive Force Management,
    Effective Personnel Readiness, and Sound Organizational Alignment,
    while maintaining a ready and capable global Navy. I look forward to
    working with you as we continue to shape the Navy to meet current and
    emerging requirements, while confronting the challenges that lie ahead.
    On behalf of the men and women of the U.S. Navy, and their families,
    thank you for your leadership, commitment, and unwavering support.

        [The prepared statement of Lieutenant General Milstead
    follows:]

           Prepared Statement by LTGEN Robert E. Milstead, Jr., USMC

                                I. INTRODUCTION

        Chairman Gillibrand, Ranking Member Graham, and distinguished
    members of the subcommittee, it is my privilege to appear before you
    today to provide an overview on Marine Corps personnel.
        As our commandant recently testified to you, sequestration--both
    the immediate cuts in fiscal year 2013 and the associated reductions in
    discretionary caps in future years--could have a significant impact on
    our Nation's readiness both short- and long-term. However, no matter
    what the implications, there are some things that must endure. Your
    Marine Corps is, and will continue to be, our Nation's expeditionary
    force in readiness. We will be ready to rapidly respond to crises
    around the globe to ensure the continued security of the American
    people and to protect the interests that underpin our prosperity.
    Marines will be always faithful to the trust which the American people
    have vested in them. Already a lean organization, your marines will
    continue to give you the best capability that can be squeezed from the
    resources you allocate for our Nation's defense. Our individual marines
    are the Corps' most sacred resource, and always will be.

                                II. END STRENGTH

        Pursuant to guidance issued by the President and the Secretary of
    Defense, the Marine Corps has initiated a reduction in our Active
    component end strength from 202,100 to 182,100 by the end of fiscal
    year 2016. We are conducting our drawdown in a measured way. Our plan
    is to reduce our end strength by no more than 5,000 marines per year
    and will be accomplished primarily by natural attrition, voluntary
    separation, and retirement authorities. Involuntary separations will be
    minimized as much as possible, and we have no plans to conduct a
    reduction-in-force. Such an approach would no doubt do significant
    long-term damage to our ability to recruit and maintain a quality
    force. Our overarching goal must be to keep faith with our marines and
    their families.
        During fiscal year 2012, we made a conscious decision to get a
    `head start' on our drawdown rather than wait for fiscal year 2013.
    This early drawdown was achieved primarily through increased voluntary
    attrition of junior enlisted marines as part of the large Grow-the-
    Force cohort population. As a result, the Marine Corps' active duty end
    strength at the end of fiscal year 2012 was 198,479 marines (including
    reservists who served on active duty at least 3 out of previous 4
    years). Our end strength goal for fiscal year 2013 is 193,500 marines.
        While our military personnel accounts have been exempted from
    sequester in fiscal year 2013, it would be inaccurate to assume that
    your marines are not to be impacted by it. Overall, the readiness of
    your Corps stands to take a hit. In essence, those whom have given the
    most to the security of this Nation are asked to accept the bulk of the
    risk sequestration poses to this Nation.

                           III. MARINE CORPS RESERVE

        Our Reserve component continues to make essential contributions to
    Total Force efforts in Overseas Contingency Operations. We are
    continuing to refocus our recruiting and retention efforts on meeting
    our Reserve component grade and skill requirements at the unit-level.
    These efforts include retraining marines affected by force structure-
    directed actions, lowering rates of attrition, providing travel
    reimbursement for our senior staff noncommissioned officer and company
    grade officer leadership, and discreet targeting of those marines
    eligible to receive an incentive. As a result, we have achieved our end
    strength goal of 39,600 over the last 2 years.
        For fiscal year 2013 and beyond, we have refined the use of
    incentives to strengthen unit staffing in specialties and grades where
    we remain critically short. In particular, our Selected Marine Corps
    Reserve unit staffing of company grade officers, aviators, and staff
    noncommissioned officers (SNCO) remains most challenging. Targeted
    incentives and transition assistance outreach programs help us to
    attract junior officers and aviators who are leaving the Active
    component. While transitioning officers from the Active component
    provides the majority of our company grade officer leadership, we have
    had considerable success commissioning officers directly into the
    Reserve. The Reserve Officer Commissioning Program, which includes
    Officer Candidate Course-Reserve (OCC-R)--has produced a total of 561
    lieutenants for the Marine Corps since its creation in 2006 and has
    been key to increasing ground company grade officer fills from 21 to 67
    percent. More importantly, it enables the Marine Corps Reserve to place
    officers in critical small unit leadership positions at the platoon and
    company level.
        To complement outreach efforts and the use of incentives, and to
    address the challenges of geographic constraints, we offer occupational
    specialty retraining. Our retraining programs are crucial in our
    efforts to join enlisted marines to units that are located in areas of
    the country where it is geographically challenging to recruit, that are
    undergoing Force Structure Review Group actions, or that are in high-
    demand low-density Military Occupational Specialties (MOS). This
    training has helped us to build positive trends with respect to
    recruiting and retention and are integral to our future success in
    staffing our SNCO above the current level of 63 percent.
        This year we increased efforts to fully staff Reserve aviation
    squadrons. To achieve this goal, we developed a number of Reserve
    aviation manpower initiatives designed to encourage transitioning
    Active component aviators to affiliate with Reserve units. Since there
    are a limited number of Reserve squadrons, the use of travel
    reimbursement, incentives, and aviator transition and conversion
    programs are critical to achieving our staffing goals. Altogether,
    these programs, combined with our prior service recruiting efforts,
    should provide for at least 90 percent staffing of critical combat arms
    and company grade officer billets by the end of fiscal year 2015 with
    Reserve squadrons reaching this mark 1 year later.

                                 IV. RECRUITING

        The Marine Corps is unique in that all recruiting efforts (officer,
    enlisted, regular, Reserve, and prior-service) fall under the purview
    of the Marine Corps Recruiting Command. Operationally, this provides us
    with tremendous flexibility and unity of command, allowing us to meet
    accession requirements.
        To meet future challenges in the current recruiting environment, it
    is imperative that we maintain our high standards both for our
    recruiters and those who volunteer to serve in our Corps. Recruiting
    quality youth ultimately translates into higher performance, reduced
    attrition, increased retention, and improved readiness for the
    operating forces. Our actions, commitment, and investments today in
    recruiting ensure a high state of readiness in our Corps tomorrow.
    Severe budget constraints related to sequestration that result in
    reductions in recruiters, recruit advertising, and potential civilian
    furloughs at our recruit processing stations will degrade the quality
    of our recruit pool, cause disruptions in our pipeline of recruits, and
    place added stress on our recruiters, 71 percent of whom already work
    in excess of 60 hours per week. Reductions to our recruit advertising
    budget jeopardizes our established market share and awareness with
    prospects, their influencers, and multicultural audiences, which
    includes diversity outreach capacity. It is important we acknowledge
    that today's successes are dividends from the investments made in
    recruiting and advertising 4 to 5 years ago.
        Last year, we successfully achieved all enlisted and officer
    recruiting goals for both the Active and Reserve components. Our
    current mission for enlisted marines is 33,200 regulars (Active
    component) and 5,780 reservists. We expect to achieve our annual
    recruiting `shipping' mission (i.e. new accessions sent to recruit
    training) and quality goals, but sequestration-related budget
    constraints may impact our contracting efforts and capacity to achieve
    success in fiscal year 2014. The fiscal year 2014 mission forecast is
    30,200 regulars and 5,481 reservists.
        Our officer accessions mission for fiscal year 2013 is 1,400 Active
    Duty and 125 Reserve officers. Historically, the Active component has
    been the exclusive source of lieutenants and captains for the Reserves.
    As previously noted, filling company grade officer billets for our
    Selected Marine Corps Reserve units is traditionally our greatest
    challenge, but the success from the OCC-R program is proving to help in
    remedying this shortfall.
        Our greatest asset continues to be the individual marine.
    Recruiting remains the lifeblood to the Corps and our bedrock to ``Make
    Marines, Win Battles, and Return Quality Citizens.'' We thank you for
    the generous support you have provided to us and look forward to
    working with you to ensure continued success in the future.

                                  V. RETENTION

        For fiscal year 2013, the Marine Corps is on track to achieve its
    end strength target of 193,500 Active component marines (and
    approximately 250 reservists who have served on active duty at least 3
    of the previous 4 years). It is vital during our drawdown that the
    Marine Corps continue to shape our force to meet continuing mission
    requirements and fill critical military occupational specialties (MOSs)
    with the most qualified marines. Incentive pays remain critical to this
    effort, allowing the Marine Corps to fill hard to recruit positions,
    such as crypto linguists and reconnaissance. Enlistment bonuses also
    allow us to ship new recruits at critical times to balance recruit
    loads at the depots and meet school seat requirements. It is important
    to note that only 8 percent of new Marine Corps recruits receive an
    enlistment bonus. Similarly, Selective Reenlistment Bonuses (SRBs)
    allow us to shape our career force. SRBs target critical MOSs and
    supports lateral movement of marines to these MOSs.

                              VI. CIVILIAN MARINES

        Our civilian marines support the mission and daily functions of the
    Marine Corps and are an integral part of our Total Force. They
    exemplify our core values; they embrace esprit de corps, teamwork, and
    pride in belonging to our Nation's Corps of Marines. Serving alongside
    our marines throughout the world, in every occupation and at every
    level, our civilian appropriated funded workforce remains the leanest
    of all Services, with a ratio of 1 civilian to every 10 active duty
    marines. Over 93 percent of our civilians do not work in headquarters'
    elements in the Pentagon; they are at our bases, stations, depots, and
    installations. Sixty eight percent are veterans who have chosen to
    continue to serve our Nation; of those, a full 13 percent have a
    certified disability. Our civilian non-appropriated funded workforce
    steadfastly continues to provide vital support to our marines, Reserve
    marines, their families, and our wounded, ill, and injured.
        The potential human impact associated with furloughing our civilian
    marines is significant. While we would like to believe that a
    discontinuous furlough will reduce the impact on our employees, most
    will not be able to easily absorb this sudden loss of income, even over
    a period of several months. With prolonged budgetary uncertainty
    employee stress is increasing, morale is declining, and at some point
    productivity will begin to suffer. Marine Corps bases and commands in
    Virginia, California, North Carolina, and Georgia will feel the most
    dramatic impact as hiring pools stagnate and the essential talent
    needed to conduct missions there begins migrating.
        Our civilian labor represents less than 5 percent of the Marine
    Corps' total O&M budget, demonstrating that our ``best value'' for the
    defense dollar applies to our civilians as well as our marines.

                          VII. WOMEN IN SERVICE REVIEW

        On January 24, 2013, the Secretary of Defense rescinded the 1994
    policy that restricted women from combat roles. The Secretary has
    provided the services ample time to assess this change in policy by
    setting a deadline for full implementation of 1 January 2016. The
    Commandant and the entire Marine Corps are dedicated to maintaining the
    highest levels of combat readiness and capitalizing upon every
    opportunity to enhance our warfighting capabilities and the
    contributions of every marine; it is the right thing to do. Our ongoing
    deliberate, measured and responsible approach to validate occupational
    performance standards for all marines is consistent with the
    Secretary's decision to rescind the direct combat exclusion rule for
    women. As our Corps moves forward with this process, our focus will
    remain on combat readiness and generating combat-ready units while
    simultaneously ensuring maximum success for every marine. The talent
    pool from which we select our finest warfighters will consist of all
    qualified individuals, regardless of gender.
        Our implementation plan will take a two-pillar approach, which will
    be conducted concurrently--one for previously closed occupational
    specialties and the other for closed units. The first pillar will
    include a three-step process: (1) review and validate the physically
    demanding tasks by occupational specialty; (2) test male and female
    marines on these physically demanding tasks and correlate their
    performance to scores on the current Physical Fitness Test and Combat
    Fitness Test; and (3) develop a safe, physical test that will serve as
    a predictive mechanism for recruiters to use to determine an
    applicant's physical propensity to successfully accomplish the
    physically demanding tasks required of an MOS.
        The second pillar will include a phased expansion of our
    assignments of females in open MOSs to previously closed ground combat
    units. These assignments are a continuation of an effort which the
    Marine Corps began in June 2012 known as the Exception to Policy (ETP)
    pilot program. The Marine Corps opened 371 Marine and 60 Navy billets
    in open Military Occupational Specialties to females in previously
    closed units under the ETP. These 19 previously closed operational
    units included artillery, tanks, assault amphibian, combat engineers,
    and low altitude air defense communities. The assessments and feedback
    from these units are positive. Expansion of this pilot program in
    newly-opened units to female noncommissioned officers will be
    considered as assessment of the current assignments of SNCOs and
    officers to those units indicate that additional assignments would be
    successful. A phased approach will provide leadership the opportunity
    to address issues, establish a solid mentorship program, and progress
    towards the necessary social/cultural shifts within these units.
    Overall, 90 percent of our military occupational specialties are open
    to females, as well as 68 percent of our table of organization (T/O)
    billets.

                                  VIII. HAZING

        Hazing violates our institutional character and disrespects our
    most precious asset--our marines and sailors. Consequently, the Marine
    Corps will continue to pursue the actions necessary to eliminate hazing
    in any form. In April 2012, a Marine Corps working group was convened
    to examine hazing prevention and response within the Marine Corps. The
    working group's efforts centered on conducting a critical review of the
    Marine Corps' current policies and procedures and culminated with the
    development of specific recommendations for increasing our
    effectiveness at preventing and responding to hazing. These
    recommendations, upon final approval, will be incorporated into our
    current policy.
        The most significant planned changes to the Marine Corps' new
    hazing policy include: mandatory and immediate reporting all hazing
    allegations irrespective of the initiation or completion of the initial
    investigation, mandatory reporting of hazing allegations within the
    existing Discrimination and Sexual Harassment (DASH) database,
    utilization of the DASH database as a comprehensive, service-level
    hazing database enabling tracking of all reported hazing allegations
    from start to finish, and amplification of the Marine Corps' hazing
    definition in order to enhance its application in real-world scenarios.
        In the short-term, implementation of these procedural changes may
    result in an increased number of reported hazing incidents. However,
    the positive consequence of this potential increase is that it may
    indicate growing trust in leadership to effectively respond to hazing
    allegations. Through this foundation of mutual trust, the Marine Corps
    will more accurately determine the prevalence of hazing within our
    ranks and ultimately develop more effective prevention plans.

                                 IX. DIVERSITY

        The Marine Corps is committed to attracting, mentoring and
    retaining the most talented men and women who bring a diversity of
    background, culture and skill in service to our Nation. In both
    representation and assignment of marines, diversity remains a strategic
    issue. Our diversity effort is structured with the understanding that
    the objective of diversity is not merely to strive for a force that
    reflects a representational connectedness with the rich fabric of the
    American people, but to raise total capability through leveraging the
    strengths and talents of all marines.
        We are near completion of a new comprehensive campaign plan to
    focus our diversity effort in areas where improvement is most needed
    and anticipate release of this roadmap this year. This is an effort
    facilitated through our standing Diversity Review Board and Diversity
    Executive Steering Committee chartered to establish the foundations for
    diversity success in the Total Force. During January 2013, the Marine
    Corps held an Executive Off Site for Diversity to commence senior
    executive action in support of the long term diversity effort. In
    addition, since 2010, we have conducted leadership seminars that
    introduce diverse college undergraduates and high school students to
    Marine leadership traits and leadership opportunities in the Marine
    Corps; we are actively seeking new communities within which to continue
    this effort.
        The Marine Corps has established minority officer recruiting and
    mentoring as the highest priority in our recruiting efforts. Because we
    acknowledge the accession and retention of minority officers has been a
    challenge for our Corps, we are committed to taking steps to further
    facilitate the mentoring and career development of all our officers
    with emphasis on our minority officers in order to encourage the
    retention of our best officers no matter their background.
        Overall, we seek to communicate the Marine Corps diversity mission
    through community outreach and recruit marketing; to ensure continued
    opportunities for merit based development and advancement; and to
    optimize training and education to increase the understanding for all
    marines of the value that diversity brings to the Total Force.

                X. TAKING CARE OF MARINES, SAILORS, AND FAMILIES

        The Marine Corps' approach to potential sequestration cuts to our
    Marine and family support portfolio is focused on preserving programs
    that support the health and welfare of our marines and their families.
    These protected programs collectively promote the physical and mental
    well-being of marines and families and are considered most essential in
    meeting the operational objectives of the Marine Corps. We will have to
    prioritize our resources to ensure we maintain these protected programs
    while taking risk in lower priority programs.
        Furthermore, any actions that impact our civilian workforce will
    directly impact our capability to provide essential support services to
    marines and their families. A furlough would impact our direct-care
    service, decreasing service hours across Behavioral Health, Family
    Readiness, Personal and Professional Development, and Family Care
    programs, including child care. However, our highest priority family
    programs will be protected to the greatest degree possible, as will our
    Wounded Warrior Regiment, the command responsible for recovery care for
    our wounded, ill, and injured marines.

    Caring for our Families
        Our Family Readiness Program strengthens and fortifies marines and
    families by providing official unit communication, readiness
    preparedness training, information on and referral to qualified helping
    professionals, and vital unit, installation and community connection.
    Our Family Readiness Officers are an asset throughout the Total Force
    and support the commander's family readiness mission through direct
    interaction with marines and families. Our Marine Corps Family Team
    Building training provides preventative education to marines and
    families and enhances their quality of life, provides a feeling of
    empowerment, and increases levels of resiliency. Lifestyle, Insights,
    Networking, Knowledge, and Skills (L.I.N.K.S.) training, for example,
    helps marines and families connect to the military culture and teaches
    how best to thrive in it. eMarine, our secure family readiness website,
    delivers strategic communications to marines and their families, both
    Active Duty and Reserve, whether they are stationed at large
    installations or in remote locations. It gives family members access to
    documents, photos and videos, discussion forums, and information about
    their marine's unit from anywhere in the world, 24/7. We continue to
    improve and streamline our programs in fiscal year 2013, with a focus
    on our computer-based Marine Corps Family Team Building curriculum and
    a new initiative to promote volunteerism to enhance unit morale and
    family readiness.
        Our Family Care programs support the development continuum of
    Marine Corps children from birth to their teens. First, our school
    liaisons provide school districts with information about the needs of
    Marine Corps families and access to training and counseling services to
    support teachers and students. Marine parents are comforted by the
    support of a local education expert, who provides meaningful insight to
    new transfers and those with questions on local education policies.
    Second, child care services remain a high priority, and we plan to
    increase our child care capacity with additional spaces in fiscal years
    2013 and 2014. Third, families enrolled in our Exceptional Family
    Member Program strongly endorse our focus on providing a continuum of
    care and the improvements made to their level of support. The Marine
    Corps continues to underwrite the cost of up to 40 hours of short-term
    respite care per month for enrolled families, providing more than
    400,000 hours of respite care in fiscal year 2012.

    Transition Assistance
        Our transition assistance will be integrated into the lifecycle of
    a marine from recruitment, through separation or retirement, and beyond
    as a veteran marines. Our first step is our revised Transition
    Readiness Seminar, which now gives marines a choice of one of four
    pathways during this program: College/University Education; Employment;
    Vocational or Technical Training; or Entrepreneurship. This tailored
    approach reduces information overload, targets individual needs of the
    marine, promotes effective military skills translation, and is in full
    compliance with the VOW to Hire Heroes Act and the recommendations of
    the President's Veterans Employment Initiative. The Marine for Life
    Program, with its nationwide network of Marine for Life
    Representatives, will support improved reach-back and outreach support
    for those veteran marines who require localized support in their
    hometowns with information, opportunities, or other specific needs.
    These assets help veterans develop and maintain local networks of
    Marine-friendly individuals, employers, and organizations.

    Sexual Assault Prevention and Response
        Sexual assault is a crime that is incompatible with Marine Corps
    values of honor, courage, and commitment. Not only does it undermine
    mission readiness and unit cohesion, sexual assault results in an
    irrevocable loss of faith in the institution and violates the basic
    principles every marine has vowed to uphold and defend. In step with
    our Commandant-directed 2012 Sexual Assault Prevention and Response
    (SAPR) Campaign Plan, the SAPR Program implemented large-scale Corps-
    wide training initiatives, utilizing a top-down leadership model.
    SAPR's training message charges leadership with establishing an
    environment that is non-permissive to any misconduct or crime--
    especially sexual assault--and making certain that the Marine Corps'
    high standard of discipline is maintained. SAPR training remains
    unequivocal in its assertion, however, that the inherent duty of
    preventing sexual assault belongs ultimately to marines of every rank.
        While aggressive in our prevention initiatives, we remain steadfast
    in our commitment to victim care and response, never ceasing in our
    efforts to ensure that all victims of sexual assault receive the kind
    of supportive services and justice that preserve their dignity and
    safety. Response systems have been strengthened through intensified
    credentialing requirements for SAPR personnel, as well as through an
    increased number of SAPR personnel in the field. In addition, the
    Commandant directed a reorganization of our legal community to improve
    our ability to prosecute complex cases. The centerpiece of this new
    model is the regional complex trial team comprised of experienced
    military prosecutors and augmented by civilian highly qualified
    experts, providing a wealth of experience for the prosecution of such
    cases. Eliminating sexual assault in our ranks is our ultimate goal,
    and the Commandant intends to stay personally and actively engaged in
    leading this campaign.

    Behavioral Health Support
        The integration of our behavioral health programs seamlessly weaves
    our efforts in suicide prevention and response, combat and operational
    stress, substance abuse, and family advocacy into the support network
    of command structures and the health and human services across the
    Marine Corps. We focus on evidence-based practices to ensure we are
    providing effective support in these critical areas. The Marine Corps
    is increasing the number of personnel available on installations to
    develop, implement, and execute behavioral health prevention and
    treatment assistance. Community Counseling Centers are being
    established to enhance clinical case management capabilities as well as
    easier resource system navigation and ensure that marines are properly
    screened, tracked, and referred to appropriate behavioral health
    services. We are expanding our Military Family Life Consultant program
    so that these licensed clinical providers are embedded into the larger
    support network of command structures and can provide confidential
    counseling when needed.
        We are implementing our Behavioral Health Integrated Training,
    which will consolidate all behavioral health information into a single
    training session that focuses on common risk and protective factors
    across the full spectrum of behavioral health issues. Our Behavioral
    Health and Brain Injury Advisory Committee meets quarterly to advise
    senior Marine Corps leadership on emerging programs and issues, solicit
    senior leadership guidance and feedback regarding integration efforts,
    and identify gaps in services delivery as well as opportunities to gain
    efficiencies. Our Behavioral Health Integrated Case Management System
    will facilitate the communication of clinical and administrative data
    across behavioral health programs.

    Suicide Prevention and Response
        One suicide is too many. Suicide prevention is not a single act but
    rather a series of actions. The Marine Corps is actively engaged in
    making lasting improvements to the overall health, well-being, and
    quality of life for marines. Each tragic loss to suicide has a far-
    reaching impact on families, friends, and our entire Marine Corps
    community. Saving lives requires vigilance and our concerted effort to
    harness the strength of engaged leaders. Engaged leaders are alert to
    those at risk for suicide and take action to help marines address the
    hard times or pain in their lives, helping individual marines optimize
    their physical, psychological, social, and spiritual spheres and
    revitalize depleted areas. Fit marines are fortified and strengthened
    and better able to withstand the tensions and stressors of life in and
    out of the Marine Corps.
        Leaders prevent suicide by strengthening all marines and
    encouraging them to engage helping services early when problems are
    most manageable. Whenever possible, we deploy evidence-based prevention
    practices such as our award-winning ``Never Leave a Marine Behind''
    suicide prevention training program, which is peer-led and updated to
    reflect emerging evidence-based practices. Our Suicide Prevention
    Program Officers, located at our battalions and squadrons, will be an
    administrative and coordinating resource for the commander to use in
    managing a unit's suicide prevention program. Our DSTRESS Line, which
    is staffed by veteran marines and corpsmen, family members and civilian
    counselors trained in Marine Corps culture, provides anonymous, 24/7
    counseling services to any marine, attached sailor or family member. We
    work closely with DOD and forge strong relationships with other Federal
    agencies, academia, and private industry in an effort to work together
    to better understand suicide and improve our programs.

    Combat and Operational Stress Control
        Our Combat and Operational Stress Control (COSC) program assists
    marine leaders with maintaining warfighting capabilities by addressing
    the impacts of stress, enhancing fitness, and addressing the long-term
    health and well-being of marines and their families. COSC resources
    support all of the tenets of good leadership. Understanding the full
    range of stress reactions and associated leader actions enhances the
    ability to mitigate risk and take care of marines in all environments.
    COSC efforts prevent, identify, and manage combat and operational
    stress-related issues and increase access to mental health care by
    breaking stigma and raising awareness. COSC principles are embedded in
    Operational Stress Control and Readiness Team Training, Deployment
    Cycle Training and third location decompression events that reach the
    Total Force. We have improved training including education and
    awareness on Traumatic Brain Injury, continuing the destigmatization of
    behavioral health care, and incorporating current information from
    Operation Iraqi Freedom and Operation Enduring Freedom deployments.
        Marine Total Fitness. In fiscal year 2013, we are continuing to
    advance our Marine Total Fitness concept to develop marines of
    exemplary physical, psychological, spiritual, and social character.
    Marine Total Fitness infuses fitness-based information and concepts
    into all aspects of a marine's training and readiness and prepares
    marines to successfully operate in and respond to the rigors, demands,
    and stressors of both combat and garrison.

                      XI. SEMPER FIT AND EXCHANGE SERVICES

        Semper Fit and Recreation programs supports the social and physical
    cords of Marine Total Fitness efforts by providing the best mix of
    programs and services to marines and their families. This year we are
    expanding programs, such as High Intensity Tactical Training (HITT), a
    comprehensive strength and conditioning program geared towards
    optimizing physical performance and combat readiness. Another program
    slated for expansion to additional installations is Operation
    Adrenaline Rush (OAR), which combines Combat and Operational Stress
    Control (COSC) principles with an Outdoor Recreation Adventure activity
    to aid in mitigating boredom and high risk behavior for marines
    recently returned from deployment. OAR assists marines with
    reintegration by empowering small unit leaders, maintaining combat
    readiness, and reinforcing unit cohesion. The goal is to increase
    social resilience through unit-driven recreational activities such as
    whitewater rafting, mountain biking, and deep sea fishing. Semper Fit
    is focused on providing relevant programs that promote the overall
    fitness and health of our Corps.
        The Marine Corps Exchange (MCX) is an important part of the overall
    non-monetary benefits package. MCX success is measured on the program's
    value and contributions to the readiness and retention of marines, as
    well as our ability to provide unparalleled customer service, premier
    facilities, and valued goods and services at a significant savings.
    With MCX, unlike any other retail store, marines can rely upon a high
    quality product at a fair price and know that the proceeds are returned
    to their community, creating a stronger Marine Corps.
        Deployed support is one of the most important services we provide.
    Our Exchange, Recreation and Fitness, Communication, and MCCS Amenity
    Wi-Fi services not only boost and maintain morale, but also help to
    reduce mission-related stress:

             Exchange. Ongoing missions in Afghanistan include the
            operation of two Direct Operation Exchanges Tactical at Camps
            Leatherneck and Dwyer, one Tactical Field Exchange at Camp
            Delaram II, one Imprest Fund Site at Forward Operating Base
            (FOB) Edinburgh, and numerous Warfighter Express Services Teams
            operating out of Camps Leatherneck, Dwyer, and FOB Edinburgh.
             Recreation and Fitness. We assist in providing
            transportable recreation, sports, and fitness equipment to
            units throughout Helmand Province.
             Communication. We have delivered 13 satellite
            communications systems to units in Afghanistan. Each system has
            2 phones which each provide 6,000 free minutes per month and 5
            laptops that allow internet access and chat/video capabilities
            to deployed marines. In 2012, there were 94,272 phone calls
            using 776,644 minutes of air time; approximately 72,860 marines
            were able to use the Morale Satellite services at several
            different FOBs/COPs during 2012.
             MCCS Amenity Wi-Fi Solution. The Marine Corps
            Community Services Amenity Wireless Fidelity (Wi-Fi) Solution
            program deploys Wi-Fi capability at various facilities on
            installation at no cost to marines and families. This morale
            and welfare initiative helps families stay in contact while
            separated from their marine.

                         XII. WOUNDED WARRIOR REGIMENT

        The Marine Corps' Wounded Warrior Regiment (WWR) is a fundamental
    component of the Marine Corps' pledge to ``keep faith'' with those who
    have served. The WWR supports marines wounded in combat, who fall ill,
    or who are injured in the line of duty.
        The WWR administers the Marine Corps' Recovery Coordination Program
    that ensures wounded, ill, and injured (WII) marines' medical and
    nonmedical care needs are fully integrated. Through its comprehensive
    organization of nonmedical care assets, the WWR has been supporting the
    recoveries of WII marines and their families since it was established
    in 2007. In the broadest terms, this includes determining the degree of
    support required through case review, working with marines and their
    families to develop recovery plans, and executing those plans for their
    return to duty or reintegration to their hometowns. When WII marines
    successfully execute their recovery plans, they are well-positioned for
    their future endeavors.
        Under the Marine Corps' proven care model, WII marines may remain
    with their parent units so long as their medical conditions allow and
    their units can support them. When WII marines remain with their parent
    units, they are also supported by the WWR through its various assets.
    This support is accomplished through direct contact with the WII marine
    and family members and by providing information and resources to the
    WII marine's commander. WII marines not assigned to a WWR element are
    still connected through the Wounded Warrior Battalion Contact Centers,
    where staff reaches out at regular intervals to ensure their needs are
    being met.

    Recovery Care Coordinators and Marines' Comprehensive Recovery Plans
        To be successful in his or her recovery mission, a WII marine must
    take a pragmatic look forward and set attainable goals. These goals
    must be developed based on each marine's, and his or her family's
    needs, and incorporated into a plan with carefully articulated and
    monitored actionable steps.
        The Marine Corps continues to fully comply with the ``Wounded
    Warrior Act'' section of the National Defense Authorization Act for
    Fiscal Year 2008. Prominent in this section is the requirement to
    assign a Recovery Care Coordinator (RCC) to recovering marines. All
    eligible marines, generally those who are severely to catastrophically
    ill or injured and unlikely to return to duty, may be assigned an RCC.
    RCCs meet with a WII marine within 72 hours of assignment and begin a
    comprehensive assessment process which takes into consideration the
    various recovery components (i.e., housing, finances, counseling,
    family support, disability evaluation, employment, and more). The
    results of this assessment process form the basis for the Marine's
    Comprehensive Recovery Plan (CRP). Each CRP is tailored to the WII
    marine's and family's specific recovery circumstances. The CRP
    document, which is owned by the WII marine, is frequently updated and
    adjusted to suit the WII marine's evolving situation.

    Support for Caregivers
        Compassionate and dedicated caregivers are central to recovery and
    they endure many hardships, to include financial setbacks when they
    leave their jobs, to be with their recovering marine. We thank Congress
    for authorizing Special Compensation for Assistance With Activities of
    Daily Living. The WWR is also providing our marines' caregivers the
    opportunity to receive caregiver training, which is identical to the
    caregiver training provided by the Department of Veterans Affairs to
    support their Caregiver Stipend Program.

    Transition
        Most WII marines will not return to duty and will transition to
    veteran status. Meeting this transition milestone prepared and
    confident is paramount to a WII marine's success in his or her civilian
    community. The WWR's transition support is twofold: we help WII marines
    and families successfully enter the VA system and assist them with
    securing rewarding and fulfilling careers.
        For WII marines with CRPs, prior to leaving active duty service,
    the Marine's RCC will schedule phone conferences with the Marine's VA
    recovery team members to ensure all required paperwork is transferred
    and benefits are on schedule for payment. Marines not joined to a WWR
    element may be provided VA transition information via the WWR's fact
    sheets and staff who hold subject matter expertise. They are also
    assisted through the WWR's Call Center. The WWR highly encourages all
    WII marines to register with the VA's eBenefits, a joint VA/DOD web
    portal that provides resources and self-service capabilities to
    veterans, servicemembers, and their families.
        WWR has transition cells at its Regimental Headquarters and its
    Wounded Warrior Battalions where coordinators work with marines in a
    one-on-one setting to conduct comprehensive career assessments; develop
    education and career plans; provide career coaching; identify
    education, internship and training opportunities; and facilitate
    networking and transition activities such as job fairs. WWR also
    coordinates with external entities to enhance WII marines' transition
    success. The Regiment has facilitated the placement of Vocational
    Rehabilitation and Employment Service counselors aboard various Marine
    Corps installations; WII marines continue to take advantage of Federal
    internships through the Operation Warfighter Program; and the WWR
    continually coordinates with charitable organizations, such as the USO
    and Hire Heroes USA, to provide transition workshops and opportunities
    specifically geared toward WII servicemembers and their families.
        To further ensure WII marines are succeeding in their civilian
    lives, we utilize our Sergeant Merlin German Call Center to make
    outreach calls to marines and families who have transitioned. The Call
    Center conducts an average of 7,000 calls per month. Call Center staff,
    to include psychological health professionals, is also available 24/7
    to accept calls from marines and families. Moreover, WII marines who
    transition from the WWR receive varying levels of needs-based support
    for 90 days (or more if needed) to ensure smooth transition to the VA.
        The WWR's District Injured Support Coordinator Program (DISC)
    provides assistance to WII marines transitioning from military to
    veterans status through its geographically dispersed network of
    marines. Our DISCs are purposefully aligned with the Department of
    Veterans Affairs Veterans Integrated Service Networks to further
    enhance coordination with VA services. DISCs provide a multitude of
    services to include conducting face-to-face visits with marines and
    families, ensuring marines are registered with the VA, providing
    information on various community resources, and linking WII marines in
    need back to the WWR for assistance.

    Collaboration with the Department of Veterans Affairs
        Given the transition outcomes of our WII marines, the value of our
    collaboration with the Department of Veterans Affairs cannot be
    overstated. Although our WII marines may depart our ranks, they are
    always considered marines and we have a sense of duty to advocate for
    them after they have transitioned. At the strategic, tactical, and
    operational levels, the WWR partners with various VA entities to ensure
    our marines receive the transition support they require. With our VA
    colleagues, we engage in policy development that will suit the
    interests of WII marines from point of incident throughout their
    veteran status. Currently, we are active participants in the
    Interagency Care and Coordination Committee, which is working to better
    harmonize the efforts of the Departments of Defense and Veterans
    Affairs, simplify processes, and reduce confusion for our recovering
    servicemembers and their families. We have a Marine Corps Liaison
    Officer position established at the VA for enhanced coordination. Our
    RCCs and other multi-disciplinary team advocates regularly engage with
    Federal Recovery Coordinators on behalf of our WII marines who have
    sustained serious or very serious wounds, injuries, or illnesses. We
    will continue to identify ways to collaborate with our VA partners on
    behalf of our Nation's wounded, ill, and injured.
        As this statement demonstrates, the Marine Corps is heavily
    invested in providing for WII marines and their dedicated family
    members. Whether we are a Nation at war or in times of peace, the WWR
    will continue to successfully meet their care and support needs. For
    the Marine Corps, wounded warrior care is not a process, but a
    persistent relationship between the Marine Corps and our marines.

                                XIII. CONCLUSION

        To continue to be successful, we must always remember that our
    individual marines are our most precious asset, and we must continue to
    attract and retain the best and brightest into our ranks. Marines are
    proud of what they do. They are proud of the ``Eagle, Globe, and
    Anchor'' and what it represents to our country. With your support, a
    vibrant Marine Corps will continue to meet our Nation's call.
        Thank you for the opportunity to present this testimony.

        Senator Gillibrand. Thank you.
        Secretary Ginsberg?

            STATEMENT OF HON. DANIEL B. GINSBERG, ASSISTANT
              SECRETARY OF THE AIR FORCE FOR MANPOWER AND
                            RESERVE AFFAIRS

        Mr. Ginsberg. Chairman Gillibrand, Ranking Member Graham,
    and members of the subcommittee, Lieutenant General Jones and I
    would like to thank you for the honor and opportunity to
    testify today on behalf of more than 700,000 Active, Guard,
    Reserve, and civilian airmen who make up the most capable air
    space and cyber space force the world has ever known. We know
    that you and the members of this subcommittee are keenly
    interested in the well-being and support of our airmen. We must
    start by thanking you for all that you have done and continue
    to do on their behalf.
        As the Nation draws down its efforts in the U.S. Central
    Command area of responsibility and prepares to support a
    strategic shift to the Asia-Pacific, the Air Force finds itself
    at a critical juncture. The Air Force faces continual demands
    on its people and all its specialized capabilities, while
    dealing with new fiscal realities. Our airmen have met every
    challenge and are poised to respond to these new challenges in
    the future.
        The strictures of sequestration have forced the Air Force
    to face tough choices, like a furlough of civilians and
    standing down of some our combat coded flying squadrons. At the
    direction of the Office of the Secretary of Defense, the Air
    Force is protecting funding for war time operations, wounded
    warrior programs and, to the extent feasible, programs most
    closely associated with this new defense strategy, as well, of
    course, as family programs.
        The Air Force remains committed to providing cost-effective
    medical care, services, and programs to maintain balanced,
    healthy, and resilient airmen and families. Initiatives
    implemented by our airmen and Family Readiness Centers, such as
    transition assistance, wounded warrior, Yellow Ribbon, and
    suicide prevention programs, have made considerable progress.
        This past year, we confronted the problem of sexual assault
    and unprofessional relationships at basic military training,
    and we have strengthened our sexual assault prevention efforts
    with new initiatives, like an Air Force-wide health and welfare
    inspection and the establishment of a Special Victim's Counsel
    program. The Air Force remains steadfast in our commitment to
    prevent incidents of sexual assault, provide victim care where
    assault has occurred, and hold those who commit such acts
    accountable.
        Looking ahead, the Air Force will continue to balance
    competing defense needs among the size of our force structure,
    today's readiness, and modernization in the future. The Air
    Force is committed to carrying out our national defense mission
    while dealing with the disruption of sequestration.
        As I have said before, it is both an honor and a privilege
    to represent and advocate on behalf of our Nation's airmen as
    we search for better and smarter ways to approach and solve our
    Nation's security challenges. Thank you for your continued
    commitment and overwhelming support to our total force airmen,
    civilians, and families. I look forward to answering your
    questions.
        [The prepared joint statement of Mr. Ginsberg and
    Lieutenant General Jones follows:]

       Prepared Joint Statement by Hon. Daniel B. Ginsberg and Lt. Gen.
                             Darrell D. Jones, USAF

        Today the 690,000 Total Force airmen of your Air Force are a highly
    trained, experienced, and battle tested force, standing as vanguards of
    freedom around the world. Despite the last 2 decades of sustained
    conflict, the men and women of your Air Force are as dedicated,
    innovative and hard working as ever before. The Air Force does not take
    lightly its primary role of training and equipping the highest quality
    airmen the President, Congress, combatant commanders, and ultimately
    our Nation can call upon as needed.
        Airmen are the backbone of our Air Force. Throughout our Service
    history and ingrained in our culture, is a spirit of innovation where
    airmen are enabled and expected to find novel solutions to ensure
    domination in our multi-dimensional battlefield of air, space, and
    cyber space. In order for airmen to continue to fulfill their expected
    roles as innovative leaders and warriors, the Air Force must remain
    focused on recruiting, training, developing, supporting and retaining a
    world-class, All-Volunteer Force. Maintaining an All-Volunteer Air
    Force is a significant undertaking and requires a continuous and
    deliberate investment of time and national resources.

                    MILITARY AND CIVILIAN PERSONNEL BUDGETS

        The Air Force is committed to maintaining and sustaining the
    appropriate size and force mix to meet mission requirements with
    acceptable personnel tempo and associated stress on the force. Total
    Force Military changes in end strength are based on Strategic Guidance,
    the Air Force operating budget, and an operational assessment to align
    manpower resources to critical missions. Fiscal realities require the
    Air Force to face tough choices, trading size to protect a high quality
    and ready force while balancing overall risk to military capabilities.
    The Air Force will focus on reinforcing military end strength in high
    priority areas, such as Cyber, Intelligence, F-35, KC-46, and Sexual
    Assault Prevention and Response (SAPR) programs.
        The Air Force's total military end strength forecast for fiscal
    year 2014 will be reduced by 2,640 from 506,040 to 503,400, which
    represents an approximate 0.5 percent reduction from fiscal year 2013
    levels. This will result in an Active Duty (AD) military end strength
    reduction from 329,460 to 327,600. Our Air Force Reserve (AFR) military
    end strength will decrease by 480 to 70,400, and Air National Guard
    (ANG) military end strength will decrease by 300 to 105,400. The fiscal
    year 2014 budget includes a total budget authority request of $29.2
    billion for AD, ANG and AFR military personnel. Included in this budget
    is a 1 percent military base pay increase, a 4.2 percent increase in
    the housing allowance and a 3.4 percent increase in subsistence
    allowance. In addition, the civilian personnel budget requested for
    fiscal year 2014 is $11.4 billion for a programmed civilian strength of
    186,026, and includes a 1 percent pay raise.
        Programmed reductions were accomplished in base/management
    operating support and logistics/maintenance functional areas, as a
    result of declining defense budgets, and in an effort to make the best
    use of our resources, including military manpower. These reductions to
    our military end strength would place greater responsibilities on the
    remaining civilian and contractor workforce.
        Subsequently, OSD tasked the Services to analyze their civilian
    workforce requirements. Working with OSD, Air Force conducted a
    comprehensive, enterprise-wide review examining the full spectrum of
    operations--from base level to headquarters activities in an effort to
    develop a wide range of initiatives to forge a leaner, more effective
    Air Force in support of defense guidance. As a result, civilian
    workforce reductions are planned which are commensurate with our
    programmed military reductions. The civilian workforce review also
    provided a means to shift resources in support of Cyber Command and
    source emerging requirements such as enhanced transition programs
    compliant with the Veterans Opportunity to Work (VOW) to Hire Heroes
    Act and the Veteran Employment Initiative (VEI).

                           MILITARY FORCE MANAGEMENT

        By trading size for quality, the Air Force is postured to rapidly
    respond to a full range of contingencies and threats to national
    security interests. Our Force Management program is a tailored multi-
    year strategy focused on sizing and shaping the total force with the
    right balance of skills to meet current and emerging joint mission
    demands. The program ensures career field sustainability as we retain
    sufficient personnel inventory and experience to meet career field
    requirements. The Air Force's strategy over the past few years has been
    aggressive, allowing us to meet congressionally mandated end strength
    requirements and maintain a high quality force by leveraging voluntary
    programs first, offering incentive programs where needed, and
    implementing involuntary actions when required.
        Our active duty officer and enlisted force experienced continued
    high retention rates in fiscal year 2012, just below the 20-year high
    of 2011. This continued trend required us to employ a variety of
    voluntary and involuntary force management programs to achieve the
    required losses to stay within our fiscal year 2012 332,800 programmed
    end strength. Our force management initiatives brought the force within
    0.1 percent of end strength for fiscal year 2012, with the officer
    force 408 below and the enlisted force 545 above their targets.
        Our force management efforts in fiscal year 2012 positioned us well
    for fiscal year 2013 but a National Defense Authorization Act (NDAA)
    for Fiscal Year 2013 mandated 3,340 end strength reduction and
    lingering high retention require the continued use of Force Management
    tools. The Air Force's voluntary programs in fiscal year 2013 are
    similar to the officer and enlisted programs offered in fiscal year
    2012. For our officer force, we will rely solely on voluntary measures
    to achieve additional losses over normal attrition. Voluntary programs
    will include time-in-grade, active duty service commitment, 8 versus 10
    years of commissioned service waivers for certain year groups and
    overage career fields. We will also continue the Palace Chase program
    for eligible lieutenant colonels and below to retain experience levels
    in our Reserve component.
        For our enlisted force, we will rely on a number of voluntary and
    involuntary measures to achieve additional losses over normal
    attrition. Voluntary programs include Limited Active Duty Service
    Commitment and time-in-grade waivers, as well as Palace Chase
    opportunities. Additional enlisted measures include Date of Separation
    Rollbacks, a very limited reduction in accessions, reduced
    opportunities for retraining after initial skills training failures,
    and Career Job Reservation constraints.
        The AFR is also experiencing a reduction in end strength and while
    the cuts are smaller, they still require meticulous handling to
    maintain a strong force. Since AFR units are primarily filled by
    reservists who live relatively close to their base of assignment, force
    structure changes typically result in members separating from the AFR
    if they cannot find a position reasonably close to their residence. A
    number of authorities like Inactive Duty Training (IDT) travel pay and
    even Permanent Change of Station (PCS) entitlements, however, will help
    retain some of these well-trained and experienced assets in other
    vacant billets nation-wide. Authorities such as 180 days of Tricare and
    retention of the Montgomery GI Bill we help ease transition from the
    selected Reserve for those members unable to be placed in a suitable
    position. In anticipation of future reductions, the ANG and AFR are
    also submitting legislation to request approval for the Temporary Early
    Retirement Authority (TERA) and retention of education benefits for
    those members involuntarily discharged because they could not find a
    position. These additional authorities will help shape the force while
    allowing a smooth landing for those who are forced to end their
    careers.
        The objective of our fiscal year 2014 Force Management strategy is
    to continue to maximize voluntary programs first in order to minimize
    the need for involuntary measures. Given the current fiscal challenges,
    we will continue to assess the need to pursue voluntary and involuntary
    force management actions to meet future authorized end strength levels.

                           CIVILIAN FORCE MANAGEMENT

        The Air Force continues to perform strategic assessments to ensure
    our civilian workforce maintains mission critical competencies and to
    eliminate redundant functions in order to improve the effectiveness of
    the Air Force mission. The Air Force's civilian Strategic Human Capital
    Plan identified Cyber, Acquisition, Nuclear, and Engineering as
    critical occupational series necessary to meet current mission
    requirements and defense guidance. Our efforts are focused on ensuring
    these critical functions have the necessary talent to meet mission
    requirements, including heavy recruiting efforts to fill these highly
    technical specialties.
        In 2010, the Defense Department began a comprehensive effort to
    increase efficiencies, reduce overhead costs, and eliminate redundant
    functions in order to improve the effectiveness of the DOD enterprise.
    In fiscal year 2012, the Air Force voluntarily retired or separated
    approximately 3,500 civilian employees through three rounds of
    Voluntary Early Retirement Authority (VERA) and Voluntary Separation
    Incentive Pay (VSIP) to achieve civilian reductions. In addition, the
    service received limited approval to implement Reduction In Force (RIF)
    actions on positions in the Air Force Reserve Command (AFRC), Air
    Education and Training Command (AETC) and Air Force Space Command
    (AFSPC). The RIFs resulted in 77 separations, 27 reassignments, and 69
    grade reduction actions (without reductions in pay) which mitigated the
    need for involuntary separations.
        The Air Force requires latitude to continue voluntary separation
    programs, such as VERA and VSIP to allow civilian employees to retire
    or separate on a voluntary basis and avoid involuntary separations for
    fiscal year 2013 and fiscal year 2014. The Air Force will also require
    RIF authorities, including involuntary separations, as an option to
    balance the civilian workforce skills if reductions are not achieved
    through voluntary separation programs.

                      QUALITY TRAINED AND DEVELOPED FORCE

        Our Chief of Staff clearly articulated in his recent vision
    statement that ``Education and training are the foundation of our
    airpower advantage . . . and . . . we must safeguard and reinforce that
    foundation'' by ensuring we remain the most technically proficient,
    best-educated, and best-trained air force in the world. Developing the
    world's best airmen requires the best education and training. The
    developmental education pillar of our force development framework
    includes Professional Military Education (PME), Fellowships, Advanced
    Academic Degrees (AAD), Professional Continuing Education (PCE) and
    voluntary education. The training pillar includes initial skills
    training and retraining as well as skills and proficiency training such
    as Language, Region, and Culture training.
        Our enlisted PME and Officer developmental education programs
    provide an educational foundation through the delivery of carefully
    prescribed skill sets or institutional competencies. Our leadership
    doctrine defines these competencies and lays out a road map to develop
    our force to accomplish national security and national defense
    objectives. Reductions to developmental education would have severe
    long-term effects to the professional and innovative capabilities of
    our Air Force.
        The Air Force is striving to enhance the development, sustainment,
    and utilization of cross-culturally competent airmen across the Total
    Force to lead and enhance partnerships in today's dynamic global
    environment. The ability to work collaboratively with stakeholders and
    support the Department of Defense (DOD) Security Cooperation mission of
    building international partnerships is critical in meeting complex and
    emergent threats and will require greater foreign-language, regional,
    and cultural skills.
        Air Force Voluntary Education (Vol Ed) programs provide
    comprehensive opportunities for airmen to pursue programs of higher
    education in order to meet Air Force goals of a highly trained and
    educated workforce. Vol Ed program funding is largely comprised of
    Military Tuition Assistance (MilTA) which is provided to servicemembers
    to pursue accredited post-secondary programs. MilTA supports and
    affects approximately 105,000 military airmen in an active duty status
    (of those, approximately 78,000 are junior noncommissioned officers
    (NCO)). It contributes to force readiness by assisting our airmen in
    attaining a higher level of skill and management proficiency. This core
    group of young airmen will one day become our Senior NCOs responsible
    for leading and developing other young airmen as well as advising Air
    Force leaders. MilTA has historically cost more than budgeted, and we
    fund it in execution years to maintain the commitment to our airmen. In
    the current fiscal environment, we must establish updated enrollment
    and compensation controls in the MilTA program to sustain the
    programmed budget.

              RETENTION, RECRUITMENT, BONUSES, AND INCENTIVE PAYS

        The Air Force continues to successfully attract, assess and retain
    innovative airmen to maintain our status as the world's preeminent
    aerospace nation. The Service has consistently met its accession goals
    since 1999 and this positive trend continued through fiscal year 2012.
    Our recruiting strategy is founded on a powerful organization and
    network of professional recruiters in communities across the country
    supported by a compelling, multi-layered, local, regional and national
    marketing campaign. In the recovering economy, the Air Force Recruiting
    Service (AFRS) is predicting challenging recruiting conditions from
    fiscal year 2013 through fiscal year 2016. We are projecting enlisted
    accession requirements will reduce by 2,661 to 26,376 for fiscal year
    2013 and then stabilize at 27,085 in fiscal year 2014. The Air Force
    strategy to sustaining an All-Voluntary Force includes: Maintaining a
    Strong and Experienced Recruiter Force; Understanding the Recruiting
    Environment; leveraging the Power of Marketing; and leveraging
    Technology and Information Systems to Improve the Mission.
        The AFRS' success is partially attributed to its advertising and
    marketing campaign that targets America's best and brightest youth
    across a broad slice with respect to race, gender, geography and socio-
    economic background. We are projecting a $63 million advertising budget
    for fiscal year 2014--$6 million less than this year's budget. Air
    Force advertising and marketing strategies continue to attract quality
    recruits as validated by our recent success in recruiting 99.5 percent
    of our enlisted accessions (EA) as high school graduates (HSG) while
    98.4 percent of our EA scored in the top three mental categories (CAT I
    to IIIA) of the Armed Services Vocational Aptitude Battery (ASVAB). Our
    fiscal year 2012 EA production quality outpaced the Department of
    Defense (DOD) standards of 90 percent HSG and 60 percent for CAT I to
    IIIA. The Initial Enlistment Bonus (IEB) program ensured AFRS recruited
    100 percent of all critical skills accessions. We used the IEB program
    to target nine career fields for 6-year enlistments with the majority
    of these being Battlefield Airmen such as Combat Control and
    Pararescue. Our programed budget for IEB is $14.5 million in fiscal
    year 2014. We expect the fiscal year 2014 IEB career fields will
    continue to focus primarily on Battlefield Airmen.
        The Air Force Reserve (AFR) will continue to focus on filling geo-
    specific vacancies in critical skills needed to ensure wartime
    capability. In fiscal year 2012, the AFR accessed 9,429 personnel
    against a goal of 9,229 obtaining 102 percent of their fiscal year 2012
    recruiting goal. The AFR is projecting to finish at 100.3 percent of
    their 8,900 fiscal year 2013 recruiting goal and their fiscal year 2014
    goal is also expected to be approximately 8,900.
        The Air National Guard (ANG) achieved 100.7 percent of their
    officer and enlisted goal in 2012. They are on pace to meet their
    11,600 (10,500 enlisted/1,100 officer) goal for 2013. However, the ANG
    is experiencing a percentage of losses not seen since 1989, as well as
    multiple mission changes across the country as a result of the 2013
    NDAA.
        ANG Incentive Program is a national program designed to attract and
    retain quality personnel in critical enlisted and officer career
    fields, with additional focus on Health Professionals (HP) and
    Chaplains. Other targeted commissioned career fields include
    Engineering, Intelligence, Cyber and Battlefield Airmen. The enlisted
    accession and reenlistment bonuses focus on critical skills within
    Aircraft Maintenance, Intelligence, Civil Engineering, Medical, and
    Battlefield Airmen. This effort includes a Local Program designed to
    assist units in recruiting and retaining personnel in critical enlisted
    and officer career fields, by wing and geographically separated unit.
        The ANG's fiscal year 2013 Incentive Program Budget is $88.5
    million for Recruiting and Retention and includes HP Bonus, HP and
    Chaplain Loan Repayment, Officer Accession and Affiliation, Enlistment,
    and Reenlistment Bonuses. Funding covers initial payments for new
    contracts and anniversary must-pays for prior year contracts. The
    fiscal year 2014 Incentive Program budget of $65.2 million continues to
    target all critical skills and professional officer specialties.
        Overall, our Active component officer force continued to experience
    strong retention in 2012 with an average career length (ACL) of 14.8
    years of service, a value just slightly below the all-time high of 15.9
    in 2010--the highest since tracking began in 1993. Despite high
    retention trends, however, there are pockets of concern for our
    stressed career fields. Currently, 11 out of 96 officer career fields,
    6 pilot and combat systems officer career fields and 5 Special
    Operations Forces (SOF) and non-rated career fields, are stressed with
    high operational demand, low manning and insufficient retention. To
    stem attrition, we are excluding all stressed career fields when
    possible from targeted voluntary and involuntary Force Management
    programs in fiscal year 2013 and fiscal year 2014. Where necessary, we
    will add accessions and retrainees to stressed career fields to
    increase overall inventory and bring undermanned year-groups closer to
    required levels. Additionally, we offer Aviator Retention Bonuses and
    Critical Skills Retention Bonuses (CSRB) to specific skills and year
    groups in our stressed career fields to include Combat Rescue, Special
    Tactics, and Contracting officers.
        Enlisted force retention rates remained high for the third year in
    a row; however, retention is still problematic for certain skills and
    year groups. Currently, 13 out of 329 enlisted career fields,
    specifically Battlefield Airmen, Intelligence, and Career Enlisted
    Aviator career fields, are stressed with high operational demand, low
    manning and insufficient retention. The Selective Reenlistment Bonus
    (SRB) continues to be the most effective, responsive and measurable
    tool for retention, encouraging airmen to stay and/or retrain into
    career fields with high demand requirements. Additionally, CSRB remains
    a vital tool to retain Senior Noncommissioned Officers (SNCO) in
    certain high-demand specialties experiencing manning shortfalls, and
    high operational demand.
        The fiscal year 2013 budget for all Special and Incentive Pay is
    $926.5 million, with recruiting and retention pays accounting for
    $420.4 million. The remaining $506.1 million of the total budget pays
    for health profession incentive pay, flying duty pay, hazardous duty
    pay and other special pays, such as Special Duty Assignment Pay and
    Foreign Language Proficiency Bonus/Pay. The Air Force allocated $232
    million of the Special and Incentive Pay budget in fiscal year 2013 for
    SRBs for 55 Air Force specialties, up slightly from 53 specialties at
    the end of fiscal year 2012 but down considerably from 78 specialties
    at the beginning of fiscal year 2012.
        The fiscal year 2014 budget for all Special and Incentive Pay is
    $894.2 million, with recruiting and retention pays accounting for
    $412.5 million. The remaining $481.7 million of the total budget pays
    for health profession incentive pay, flying duty pay, hazardous duty
    pay and other special pays, such as Special Duty Assignment Pay and
    Foreign Language Proficiency Bonus/Pay. The Air Force allocated $232
    million of the Special and Incentive Pay budget in fiscal year 2014 for
    SRBs and will continue to focus on Battlefield Airmen; Intelligence,
    Surveillance and Reconnaissance; and Career Enlisted Aviator career
    fields. SRB investments have shown to improve retention from 1 to 8
    percent per SRB increment, depending on the reenlistment zone.

                              OPERATIONAL RESERVE

        The Air Force has successfully employed the Operational Reserve
    concept for more than 2 decades. During this timeframe, the three
    components (Active, Air Force Reserve, and Air National Guard) have
    become an increasingly integrated force fully capable of supporting
    combatant commander requirements as a single seamless team. Continued
    expansion of Total Force associations will further enhance the
    operational effectiveness of the forces provided to combatant
    commanders. Under this concept, the components routinely train together
    at home station, which allows individual members of all three
    components to develop effective working relationships and team
    cohesiveness prior to deploying. Additionally, they develop an
    understanding and appreciation of the strengths (and inherent
    limitations) of each component.
        Looking to the future, the Secretary and Chief of Staff of the Air
    Force have chartered the Total Force Task Force to take a holistic
    approach to provide strategic options on the appropriate Total Force
    capabilities mix to meet current and future Air Force requirements.
    Three Major Generals (one from each component) will be leading this
    effort The task force will consider the strategic shifts driven by
    post-Afghanistan reconstitution and the new Defense Strategic Guidance.
    The expectation is for the task force to recommend policy, legislation,
    personnel, organizational, and force structure changes that would
    maximize the overall effectiveness of the Air Force's total force team
    in a budget-constrained environment.
        Our Total Force Air Force will continue to be structured on a
    balanced foundation that relies on the strengths of each component, to
    provide and sustain the capabilities required in the years ahead. Total
    Force Task Force recommendations anchored on this principle will inform
    the Air Force Strategic Planning and Programming Process for fiscal
    year 2015 and beyond.
        The Secretary of Defense recently approved the Air Force policy and
    procedures for Reserve involuntary mobilization authority under title
    10 U.S.C. Sec. Sec. 12304a and 12304b. The Air Force is prepared to
    implement Sec. 12304a to involuntarily access the Air Force Reserve if
    needed to respond to a major disaster or emergency within the United
    States. We are working closely with the Air National Guard and Air
    Force Reserve to develop the plans and specific missions where it may
    be necessary to augment the Active component for preplanned missions
    using Sec. 12304b involuntary mobilization authority. We will apply
    this authority judiciously in order to ensure predictability for
    Reserve component members to minimize the impact to their families and
    employers. Appropriate use of this authority is being considered as we
    develop the Air Force input to the fiscal year 2015 President's budget.

                      SUPPORT TO AIRMEN AND THEIR FAMILIES

        The Air Force will continue to prioritize quality airmen and family
    support programs to sustain the resiliency of our force. Our strategy
    to meet the Service's evolving demographics and demands is to tailor or
    eliminate services where appropriate and capitalize upon community
    resources to gain efficiencies where possible.
        Our Airman and Family Readiness Centers (A&FRC) have made
    considerable progress implementing the Transition Assistance Program
    (TAP) requirements that will expand training and employment services
    for our Active and Reserve component members who transition from the
    military. The Air Force was compliant with the Veterans Opportunity to
    Work (VOW) To Hire Heroes Act of 2011 as mandated by law on 21 November
    2012 and is on schedule for compliance with the Veterans Employment
    Initiative (VEI) Task Force goals by 1 October 2013. In support of VEI,
    the Air Force was the first service to pilot the redesigned 5-day TAP
    workshop and the Higher Education optional track at Joint Base San
    Antonio (JBSA) and the first to pilot the Small Business
    Administration's Entrepreneurship track Outside the Continental United
    States (OCONUS) at Royal Air Force Mildenhall, United Kingdom. During
    fiscal year 2013, all Air Force installations will complete the rollout
    with the addition of three 2-day tracks of Entrepreneurship, Technical
    Training, and Education and a Capstone ensuring that members are ready
    to make a successful civilian transition.
        In fiscal year 2012, Air Force Child Development Programs supported
    more than 61,000 children ages 6 weeks to 12 years, with over 4,600 of
    these children having special needs care requirements. We have
    continued to focus on increasing our care capacity in our Child
    Development Centers, adding 5,794 childcare spaces from fiscal year
    2005 to fiscal year 2012. The Air Force also participated in piloting
    the first centralized web-based DOD request for childcare system, which
    will provide our families with easier access to DOD-wide childcare
    options.
        We are concerned about the effect Sequestration will have on our
    Child and Youth Programs in fiscal year 2013 due to potential
    Appropriated Fund (APF) civilian furloughs. The furlough of Child Care
    support staff could impact approximately 25 percent of our caregiving
    staff as well as our entire management and administrative team, who are
    charged with ensuring health and safety standards are maintained. To
    maintain these mandated standards, installations may be forced to
    reduce hours of operation or reduce class sizes, which may require
    single and dual working parents to adjust their work hours or find
    alternative care off base at a higher cost. Reduced staffing and
    construction project delays could also stall the opening of
    approximately 750 childcare spaces that are currently in different
    phases of construction. Due to limited off-base childcare options
    (particularly for infants and toddlers at many locations), the result
    may be growing on-base child care waiting lists at a time when
    community-based funding for such programs has simultaneously been cut.
        The Air Force is equally committed to supporting Child and Youth
    programs that are designed for the unique requirements of our ANG and
    AFR members. The Home Community Care (HCC) Program continues to provide
    ANG and AFR members access to quality childcare services that are
    similar to those available to military assigned to or living on a
    military installation and provides free quality childcare during
    primary drill weekends. In 2012, HCC provided care for 7,632 children
    within 35 ANG and AFR units with 59 State licensed providers.
        Recognizing our recent funding challenges and the evolving
    demographics and lifestyles of today's airmen and families, we are
    reviewing all Family and Morale, Welfare and Recreation (MWR) programs
    through customer satisfaction surveys and business analysis. Our goal
    is to determine how best to provide family and MWR programs and base-
    level support services in today's budget-constrained environment. For
    instance, we are focusing our resources on those core programs (ex:
    Food, Fitness, Child and Youth Programs) which best support ready,
    resilient airman and may be forced to make hard decisions to not fully
    support other programs (ex: Libraries, Outdoor Recreation). To support
    this initiative, we launched our Services Transformation Project (STP)
    in July 2011 to conduct an Air Force-wide program business assessment
    of base-level service and support, MWR programs. Major Commands
    (MAJCOM) and installations were provided STP business assessment
    results with proposals to keep, divest or repurpose programs. These
    assessments contributed to Wing Commander decisions to eliminate 22
    programs at various installations. Additionally, a STP team visited 8
    test bases making recommendations to create Community Commons and
    Information Learning Centers among other recommendations that will
    combine MWR programs into a central location.
        Airmen and family quality of life is also significantly enhanced by
    the contributions of our non-pay programs. The Army Air Force Exchange
    Service (AAFES) provides merchandise at an average savings of 24
    percent compared to similar retail stores and gave back $223.9 million
    in dividend contributions to military communities in fiscal year 2012.
    Additionally, the Defense Commissary Agency (DeCA) operates as a
    nonprofit organization and can save a family of four an estimated
    $4,500 a year.

                    COMPREHENSIVE AIRMAN AND FAMILY FITNESS

        The Focus of Comprehensive Airman and Fitness (CAF) is building
    resilience among our Total Force airmen and their families. While we
    have completed our mission in Iraq, airmen are still in Afghanistan
    where they have been for more than 10 years and in the Middle East for
    over 20 years. Continued high operations tempo at home and abroad
    coupled with downsizing the force and budget cuts stress the need to
    deliberately increase our focus on building strong, resilient airmen
    and families. Resilient airmen are better equipped to withstand,
    recover and/or grow in the face of stressors and changing demands. Many
    of our programs are designed to continue to build resilient airmen and
    families.
        The planned way-ahead for 2013 through 2014 includes the
    development of a Virtual Wing-Man smart phone application, continued
    production of Master Resilience Trainers (MRT) and the rigorous
    analysis of scientific data collected to validate the effectiveness of
    the MRT training on First Term Airmen Center (FTAC) students.

                     SEXUAL ASSAULT PREVENTION AND RESPONSE

        The Air Force remains steadfast in our commitment to prevent
    incidents of sexual assault, provide victim care where assault has
    occurred and hold accountable those who commit such acts, while
    protecting the due process rights of the accused. Our current and
    ongoing initiatives to achieve a zero tolerance environment are
    targeted toward prevention (dissuade, deter, and detect) and response
    (victim care and responsibility).
        In fiscal year 2013, we stood up our first of several Integrated
    Product Team meetings, incorporating university experts and other
    subject matter experts, to assess our pre-command, senior enlisted and
    entry-level SAPR education and training curricula with the goal to make
    it more relevant, impactful and reality based. Increased emphasis on
    Investigations and Accountability included an Advanced Air Force Sexual
    Assault Investigations course and Special Victims' Counsel ``Pilot''
    program to provide representation and advocacy throughout the
    investigation and prosecution processes by a specially trained Judge
    Advocate.
        The Air Force also distributed a Wing Commander's SAPR Guide,
    developed by subject matter experts and Wing Commanders and Command
    Chiefs. The guide includes statistics, facts and talking points to help
    installation leaders encourage healthy conversations with their airmen.
    It was distributed to installation commanders, MAJCOM commanders, six
    area of responsibility commanders, and the ANG. DOD SAPRO recognized
    this guide for how well it was done.
        In March 2013, HQ Air Force Office of Special Investigations
    (AFOSI) published new policy guidance to improve the investigation of
    sexual assault offenses. One change directs Command-wide use of AFOSI's
    new Sexual Assault Investigative Plan Worksheet and Sufficiency
    Assessment Tool in drafting written investigative plans. The tool will
    help focus collaboration between agents and military justice attorneys,
    as it integrates legal sufficiency (Articles 120, 125, and 80 elements
    of proof) with investigative sufficiency (i.e. investigative activities
    apt to reveal information probative to the elements). Additionally, HQ
    AFOSI has equipped its field units with cutting-edge alternate light
    sources to greatly enhance agents' ability to detect the presence of
    forensic evidence at sexual assault crime scenes. The field was also
    armed with new cyber tools that significantly improved agents' ability
    to identify and collect probative information from computers and cell
    phones.
        The Air Force is assessing manpower requirements needed to execute
    fiscal year 2012 and projected NDAA for Fiscal Year 2013 requirements.
    Our goal is to increase manpower in policy oversight, education and
    training and legal/investigation roles. We will comply with the
    requirements by establishing at least one full time Sexual Assault
    Prevention and Response Coordinator (SARC) and one full time Victim
    Advocate (VA) at each Air force host wing. Additionally, we are going a
    step further by placing additional SARCs or VAs at larger installations
    and those with higher risk populations (such as our training bases),
    while also providing a capacity for supporting expeditionary
    requirements. We have created standardized position descriptions for
    SARCs and VAs to facilitate hiring, and we are continuing efforts
    toward SARC and VA certification by 1 October 2013.
        The Air Force SAPR office utilized the Unit Climate Assessment
    (UCA), a known commander's management tool, to proactively assess
    climate for Air Force individual units. Embedded in the Air Force
    Climate Assessment are six questions that illuminate four dimensions of
    the SAPR climate factors. These Air Force climate factors and results
    detailed areas for further work in 2013 and beyond, namely more
    information geared towards junior enlisted, civilians and lessening the
    barriers to reporting. Additionally, the UCA revealed that our
    Bystander Intervention training and reporting options are both
    understood and found to be highly viable tools. In 2013, we will launch
    a follow-on survey to the initial 2010 Gallup survey which established
    a baseline measurement of actual prevalence and incidence of sexual
    assault in the Air Force. This repeat measurement will be compared to
    our baseline data to assess the progress of our SAPR program. As we
    move forward with our program, ongoing biannual measurement and
    tracking will allow the Air Force to continue monitoring changes and
    improvements.

                                     HAZING

        The Air Force has a zero tolerance policy for hazing, bullying,
    maltreatment, and discrimination as it is contrary to the standards of
    conduct that we expect of all airmen--entitling every airman to
    dignity, respect, and equal opportunity. Guided by our core values of
    Integrity, Service and Excellence, the Air Force utilizes a
    comprehensive approach to prevent and/or respond to such allegations or
    observations. We believe that using a comprehensive, continual training
    approach throughout an airman's career not only ensures that these
    concepts and preventative measures are delivered at the right time, but
    more importantly, become part of the Air Force culture and help to
    ensure good order and discipline. If an allegation of hazing is
    substantiated, it may be punishable by court-martial or nonjudicial
    punishment under several punitive Articles of the Uniform Code of
    Military Justice.

            INTEGRATION OF AIR FORCE COMPONENT PERSONNEL MANAGEMENT

        To better support our airmen and families, we continue to move
    forward with our ``3 to 1 Total Force Personnel Management''
    initiative. This effort integrates personnel management policies,
    processes and procedures across the Active, Reserve, and Air National
    Guard components to create a more efficient and effective Air Force.
        In May 2012, we successfully completed a high level review of all
    laws, regulations and policies to determine where barriers to
    integration existed. This review yielded 69 recommendations, spanning
    over two dozen human resource activities. We learned that few legal
    barriers exist to the integration of Air Force Human Resource policies,
    but there are many opportunities for us to consolidate directives and
    instructions, while still allowing for component uniqueness where
    warranted. This will pave the way for significant process improvement,
    facilitate better collaboration and coordination across Air Force
    components, optimize warfighter support and improve service levels for
    our airmen.
        A few examples of change include the establishment of a Total Force
    Recruiting Council which is analyzing consolidated storefronts and
    conducting a Total Force review of schoolhouse curriculum; the
    implementation of enlisted performance reports for Traditional
    Guardsmen; process and training enhancements to remedy issues
    associated with transition between components; and the deployment of an
    electronic operating support system for our Total Force promotion and
    force development board processes. This will transition manual and
    cumbersome paper boards to a new technology that will garner
    significant efficiencies in the coming years.
        Finally, the most significant outcome from this effort to date is
    the institution of a Total Force Human Resource Management governance
    structure which stood up on 1 April 2013. For the first time in our Air
    Force's history, we will have a unified Total Force forum where we can
    discuss challenges and shape shared solutions towards a common Total
    Force human capital strategy.

                                   DIVERSITY

        The Air Force recognizes a diverse force is a military necessity
    and we continue to focus efforts on advancing our strategic priorities
    of institutionalizing diversity, attracting, recruiting, developing and
    retaining a diverse and inclusive workforce of highly qualified total
    force individuals who reflect the rich tapestry of the Nation we serve.
        Over the past 2 years, we have made significant progress in our
    efforts to execute these priorities. First, in response to the
    Presidential Executive Order (13583) establishing a Coordinated
    Government-Wide Initiative to Promote Diversity and Inclusion in the
    Federal Workforce, we recently updated our Diversity Strategic Roadmap.
    The Roadmap is an action plan that directly supports Air Force
    diversity objectives and is designed to move us forward in key areas
    essential for success and posture us to compete for a finite pool of
    candidates in a changing nation. Additionally, in July 2012, the Air
    Force published Air Force Instruction 36-7001, Diversity, which
    provides policy and oversight for Air Force Diversity and guidance for
    its implementation within the Air Force.
        Outreach programs remain key to attracting and recruiting diverse
    talent. In partnership with the Office of Diversity Management and
    Equal Opportunity within the Office of the Secretary of Defense, our
    sister services and Air Force total force stakeholders (active duty,
    Guard, Reserve and civilian service), the Air Force plans, coordinates
    and provides oversight to national-level diversity outreach programs
    supporting our priorities, goals and objectives. In fiscal year 2012,
    our Global Diversity Division collaborated with the AFRS to conduct a
    targeted advertising campaign aimed at attracting high performing
    African American and Hispanic students who might qualify for U.S. Air
    Force Academy (USAFA) or Air Force Reserve Officer Training Corps
    programs. In fact, the recruiting service devoted 20 percent of its
    fiscal year 2012 marketing budget to initiatives targeting specific
    minority communities (African American and Hispanic) to locate high
    performing applicants and counter cultural biases against military
    service.

                             U.S. AIR FORCE ACADEMY

        The USAFA continues to thrive as a world-class university, creating
    strong leaders of character that are prepared for today's strategic
    environment that includes a broad range of threats and an unpredictable
    set of challenges.
        USAFA cadets have performed impressively over the past 12 months.
    The graduating class of 2013 has a Marshall Scholar and the U.S. News
    and World report ranked USAFA's undergraduate management program #1 in
    the Nation. The Academy's undergraduate engineering program is ranked
    #4 in the Nation, civil and computer engineering programs are ranked #5
    nationally, and USAFA has the #2 air and space engineering program for
    the 12th consecutive year.
        Respect for human dignity and integrity are at the core of the
    USAFA's leadership development. The Academy continues to enhance sexual
    assault prevention and response programs by identifying new ways to
    advance a climate of dignity and respect, and to more completely
    integrate sexual assault, harassment and violence prevention into
    Academy life and learning. Additionally, the Academy continues to
    conduct Religious Respect Training which is receiving national
    attention as a benchmark program.
        USAFA is committed to recruiting a diverse force and its numerous
    recruitment efforts and programs such as Summer Seminar, Diversity
    Visitation, and Admissions Forum have succeeded in many aspects and
    serve as the foundation for future efforts. The Summer Seminar Program
    targets high performing, diverse students who would be USAFA direct
    entry, USAFA Prep-School or Falcon Foundation candidates. The Diversity
    Visitation Program brings prospective minority cadets to the Academy
    for a 4-day program, which includes academics, interaction with senior
    leaders, tours of the Prep School and airfield and attendance at a
    sporting event. The USAFA Admissions Forum Initiative conducts up to
    ten admissions events per year in strategically selected locations
    across the country that have under-representation of target populations
    at the USAFA.

                                WOUNDED WARRIORS

        The Air Force is dedicated to continuously improving the support to
    our combat and seriously wounded, ill, and injured airmen by leveraging
    prior Air Force investments including the Recovery Care and Coordinator
    Program (RCCs). In fiscal year 2012 the Air Staff, Air Force Personnel
    Center and Office of Surgeon General jointly planned and reengineered
    the Air Force Recovery Coordination Process to integrate the medical
    and nonmedical care of all Air Force wounded, ill, and injured into one
    7-phased Continuum of Care process. This initiative eliminated
    redundancies and minimized confusion for our recovering airmen and
    their families. This effort produced a single centralized and
    coordinated line of command for operations and a decentralized
    execution process. In addition, a singular referral and identification
    process was implemented for determining eligibility for these
    specialized services and added to the combat ill and injured
    population, the management of care for all seriously ill and injured.
    This design approach relates to airmen's perspective by better meeting
    their anticipated needs in advance and leading to improved sustained
    care. The Recovery Team now provides concentrated care while
    simultaneously providing services to all current ill and injured and
    results in a 30 percent reduced active case load ratio to the current
    45/1 (40/1 is DOD standard). As a result, the AF now manages this
    population in an improved and inclusive process, which currently stands
    at 2,583 (498 ill; 1,299 psychological; 786 injured [including TBI]).
    Of this total population 1,048 are still on active duty and 1,535 have
    separated from the AF. In summary, the AF focuses its support of airmen
    and their families through medical and non-medical programs on behalf
    of DOD and in coordination with the VA as follows:

             DOD Medical Support: Clinical Care & Case Management
             Line Non-Medical Support: Directorate of Airman &
            Family Care and Recovery Care Coordinators
             VA Support: Poly Trauma Centers, Case Management &
            Federal Recovery Coordinators

        Air Force sponsored, along with other Services, Adaptive Sports
    Camps to assist recovering airmen to heal not only physical, but
    socially, emotionally and spiritually. Warrior Game participation has
    grown from 27 to more than 100 new athletes in fiscal year 2012 and 50
    participants have been selected for the 2013 Air Force Wounded Warrior
    Games team. In addition to Warrior Game participation, the Air Force
    purchased adaptive sports equipment now located in its fitness centers
    and established a dedicated adaptive sports staff under the new Air
    Force Wounded Warrior directorate to host advanced adaptive sports and
    recreation camps and clinics. As simply put by AF Staff Sgt. Larry
    Franklin, a program participant, ``This program saved my life. Being
    part of a team again gives me a sense of pride and makes me feel like
    I'm a part of something.''

                        AIR FORCE YELLOW RIBBON PROGRAM

        The Air Force Yellow Ribbon Reintegration Program (YRRP) has
    promoted the well-being of Air National Guard and Air Reserve airmen
    and their families. Driven by high tempo deployment cycles, these
    events have taken on an increased importance given the increased
    accumulated stress on our ARC airmen and their families. The events,
    offered at key stages in the deployment cycle, have clearly addressed
    the need for the providing critical support information to family
    members and more importantly, given the multiple deployments, supported
    the build-up of resilience skills to better cope with the significant
    stress on families caused by absence of their airmen.
        The value-added propositions of these events, which further allow
    for the development of inter-family support teams, cannot be
    overstated. Many of these ARC units are not in close proximity to
    Active Air Force airmen and family care centers, so the YRRP events
    serve as form of resilience support and training.

                    INTEGRATED DISABILITY EVALUATION SYSTEM

        The purpose of the Integrated Disability Evaluation System (IDES)
    is to maintain a fit and vital force. Air Force uses the IDES to
    determine if airmen who are wounded, ill, or injured are still fit for
    continued military service and quickly returns those who are. If they
    are deemed unfit for continued service, the IDES process ensures
    servicemembers receive a Veteran's Affairs (VA) disability rating and
    are aware of their compensation and benefits before they transition
    from military service. We are aggressively working to meet OSD's goal
    to process airmen through the IDES in 295 days. Currently, the Air
    Force Active component is averaging 362 days processing time from
    referral for disability evaluation to the date of VA benefits decision
    or return to duty. Within the IDES, the Medical Evaluation Board (MEB)
    phase performance is averaging 63 days, which is well below the IDES
    goal of 100 days. However, the Physical Evaluation Board (PEB) phase is
    averaging 141 days, which falls short of the IDES 120-day goal.
        The Air Force is committed to improving IDES timeliness to better
    serve airmen as they rehabilitate, reintegrate or transition from
    military service. We are diligently working various measures to improve
    the IDES timeliness. We have realigned manpower and made hiring a
    priority within the Air Force Personnel Center to assist the PEB. The
    Air Force has partnered with OSD and the VA to enhance IDES information
    technology (IT) to create a seamless and integrated system to improve
    IDES timeliness. While DOD and VA develop an enterprise IT solution,
    the Air Force is exploring short-term IT solutions to expedite the
    transfer of IDES cases between the Military Treatment Facilities (MTFs)
    and the Informal and Formal PEBs. In addition, we have improved
    communications between the VA, the Air Force Personnel Center, and the
    Air Force Surgeon General to ensure consistency of IDES tracked data.
    Finally, the Air Force rolled out its IDES pre-screening initiative to
    ensure the right airmen are referred into the IDES. The IDES pre-screen
    process provides a centralized review at the Air Force Personnel
    Center's Medical Retention Standards Branch of potential IDES cases
    which may not meet retention standards. The intent of the pre-screening
    process is two-fold, to identify airmen who may be returned to duty
    (RTD), instead of entering the IDES, thus preserving resources and
    reducing hardship on the airman and the unit. Additionally, the process
    identifies airmen, who need a complete Medical Evaluation Board, and
    refers them to the IDES, preserving readiness and a fit force. The pre-
    screening process does not alter any stage of the IDES, airmen rights
    remain intact and the Air Force ensures due-diligence. As of 10 April
    2013, the Informal PEB adjudicated 978 cases referred into the IDES by
    our Personnel Center's Medical Retention Standards shop as a result of
    pre-screening. Of those, only 27 were returned to duty by the Informal
    PEB, for a 2.7 percent RTD rate, far below the 15-20 percent RTD rate
    historically seen prior to pre-screening implementation. We expect
    these major improvement strategies to improve the Air Force IDES
    timeliness by fall 2013.
        On 13 June 2012, former Secretary of Defense, Leon Panetta,
    directed the Department to conduct a comprehensive review of mental
    health diagnoses for prior servicemembers who completed a disability
    evaluation process from 11 Sep 2001 to 30 Apr 2012. The Office of the
    Under Secretary of Defense for Personnel and Readiness is the delegated
    authority to establish the Special Review Panel as a collaborative
    undertaking of the DOD Physical Disability Board of Review (PDBR) and
    the Military Department Boards for Correction of Military Records.
    These reviews will include a re-evaluation of servicemember records
    whose mental health diagnoses were changed to their possible
    disadvantage during the disability evaluation process. The PDBR has
    coordinated with the Services and has defined the resources required
    for the timely completion of these important reviews.

                               SUICIDE PREVENTION

        Air Force leaders at all levels are committed to suicide prevention
    through our wingman culture. We do not view suicide prevention as
    belonging to either personnel or medical communities, but to all
    members of the Air Force community, including commanders, supervisors,
    and peers. Suicide prevention is a Total Force responsibility. This is
    the premise upon which our Community Action Information Board (CAIB)
    was built and the cornerstone of the Air Force suicide prevention
    program as we established it in 1996. We believe evidence shows it is
    the necessary framework for effective intervention across the
    enterprise. Prevention starts with leadership involvement from the top
    down and across all spectrums of the Air Force.
        In a wingman culture, airmen look out for fellow airmen. We teach
    them to identify risk factors and warning signs for suicide, and to
    take appropriate action once these indicators are identified. We call
    it: Ask, Care, Escort (ACE). We have taken Air Force-wide training to a
    new level with required Frontline Supervisor Training for the highest
    risk career fields. We are increasing our mental health provider
    staffing across the Air Force by more than 300 professionals by 2016.
    All of our mental health providers are trained to use the Air Force
    Guide to Managing Suicidal Behavior, a clinical guide for assessing,
    managing and treating suicidal ideation.
        Within the Air Force, we have not seen a link between suicide and
    deployments, Post-Traumatic Stress Disorder, or Traumatic Brain Injury.
    For our Total Force, the most frequently linked risk factors to suicide
    continue to be relationship problems, legal or administrative problems,
    work related issues, or a combination of these factors.
        We are keenly focused on reducing stigma through positive commander
    messages and by expanding opportunities to access mental health
    resources such as embedding mental health providers in our primary care
    clinics. Although the 2012 Air Force Climate Survey found stigma is
    still an issue for many airmen, we are encouraged that most reported
    they are willing to seek help, and 90 percent see leadership as
    genuinely interested in preventing suicide.
        We continue to research how we can better identify those at risk
    for suicide to achieve the earliest possible intervention. One such
    study explores how airmen's use of social media impacts their
    relationships, help-seeking, and emotional well-being. We are also
    conducting research that examines the role of life events and social
    stressors in the suicides of specific clusters of airmen.
        In addition, we continue to collaborate with the Defense Suicide
    Prevention Office, our sister Services, and the Department of Veterans
    Affairs to leverage the full extent of our internal resources,
    combining our experiences and best practices to improve our suicide
    prevention efforts.

                                   CONCLUSION

        Our airmen and their families will always remain as the cornerstone
    to the success of the U.S. Air Force. The enduring contributions
    provided by Air Force airpower are a direct result of the innovative
    spirit that resides in all our airmen. Investments in our Air Force
    capabilities are inextricably linked to our Service's ability to
    recruit, train, develop, support and retain a world-class, All-
    Volunteer Force. We are confident that our Air Force will continue to
    overcome any challenge or adversary if we, as a Service and a Nation,
    keep faith with our commitment to train and equip the highest quality
    airmen.

        Senator Gillibrand. Thank you all for your statements. We
    have also received a statement for the record from the National
    Guard Association of the United States. Without objection, it
    will be included in the record.
        [The information referred to follows:]

        Senator Gillibrand. I am going to talk about a couple of
    issues in my 7 minutes. I want to go through sexual assault,
    hazing, suicide. I have enormous respect for the men and women
    who serve in the military, and that is why I am absolutely
    committed to ending violent crime, sexual assault, and rape
    among those in uniform.
        The new DOD health related behavior survey of the Active
    Duty military personnel was released this week, and I was
    disturbed by the findings that more than one in five women on
    Active Duty in the armed services reported experiencing
    unwarranted sexual contact by a fellow servicemember. The rate
    for men was 3.3 percent. Those rates are absolutely
    unacceptable, and the men and women who serve in our armed
    services are the military's most precious resource, as you
    said, Secretary Lamont. Clearly the system is failing to
    protect them from the worst kinds of violence.
        As you may know, I am working on legislation that will
    remove the initial disposition authority from commanding
    officers and put them in the hands of experienced military
    prosecutors. Over the past few months, we have been examining
    this change, and one of the concerns that has been voiced is
    that it will disrupt the good order and discipline of the unit.
        In your opinion, what precisely about this change would
    disrupt good order and discipline? What other recommendations
    do you have for dealing with this crisis and actually getting
    results? You may start, Secretary Lamont.
        Mr. Lamont. One thing that detracts from the dignity and
    respect of a soldier, and we have carefully considered it, we
    are very much aware of our most recent challenges in this
    regard.
        While I have not seen your proposed legislation, I am aware
    of bits and pieces of it. I will leave for General Bromberg the
    concerns that you made reference to with regard to good order
    and discipline.
        Senator Gillibrand. General Bromberg?
        General Bromberg. Yes, Senator. Certainly we are just as
    concerned as you are obviously, and it is just not good enough
    the progress we are making. We need to continue to make
    progress. Certainly we want to look at all options on how we
    can improve as we go forward.
        I think the team approach we put into effect, we are in the
    third year of our campaign plan. This year, we are focusing on
    achieving cultural change, and I think cultural change is key
    to our success as we move forward. We need to continue to push
    that at every level across the Services.
        But the teaming approach we have added over--almost 829
    full-time victim advocates and sexual assault response
    coordinators. They are all trained. They are all nationally
    certified. They have 80 hours of training. We have also added
    over 9,000 collateral duty part-time victim advocates and
    sexual assault coordinators. We have added 20 special
    prosecutors, 30 additional lab technicians, 10 additional
    headquarters, what is called special highly qualified experts,
    to help with this process to enable the commanders to more
    fully understand the program, and increased training of all our
    Criminal Investigations Command agents with another additional
    80 hours of special investigating procedures.
        We think this team approach that we have put together is an
    alternative to go forward, to include paralegals, victim
    liaisons from the local judge advocate office as well. So
    achieving cultural change, including the approach of training,
    as well as prosecution and putting this larger team together is
    an alternative we certainly are pushing forward on.
        Senator Gillibrand. How much time do you think those
    changes will take to start getting the numbers down, because
    obviously the difference between the 2008 report and the 2011
    report was in the wrong direction. Now, that might just be a
    difference in feeling comfortable reporting, so we do not know
    why the change increased the number. How long do you think you
    will see results, tangible results, see numbers coming down,
    see reporting going up?
        General Bromberg. I think it is always difficult to put a
    time on cultural change. But we have seen an increase in our
    own internal surveys that we are looking at right now and
    balancing those with other reports we are seeing to make sure
    we are looking at the right data.
        We have seen an increase in the propensity to report. Our
    last survey showed a 28 percent propensity report. Our most
    recent survey shows a 42 percent propensity report for females.
    Now, I am not saying that is----
        Senator Gillibrand. What is that report called?
        General Bromberg. It is an internal operational troop
    survey that we have done internal to the Army.
        Senator Gillibrand. You said ``propensity report?''
        General Bromberg. Propensity. The propensity of a female to
    report that she has been either harassed or assaulted. We have
    to go back and really dig in the numbers, so I caution on the
    numbers. We are not claiming that as a victory, but certainly
    it may be a leading indicator.
        We want to continue to do that. We want to continue to
    watch those leading indicators. A slight increase for males as
    well.
        Mr. Lamont. I do want to point out, though, that the actual
    assaults reported did drop this year. Of course, nowhere where
    we want it to be, but I would like to believe it is an
    indication that some of these programs, and particularly with
    regard to the investigators and the special prosecutors will be
    having an effect.
        Senator Gillibrand. How did the numbers drop? You mean
    between 2008 and 2011, or in your own internal numbers?
        General Bromberg. Our internal numbers. That is one of our
    challenges when we look at the surveys, Senator, we have to
    make sure we are all looking at the same data on the surveys. I
    have not seen the reports you are referring to in detail yet,
    so as we peel those numbers back, then we will be able to tell
    the differences, because the numbers could be totally different
    for the different surveys.
        Senator Gillibrand. I would like you to furnish all your
    internal tracking so that we have the benefit of that.
        Admiral Van Buskirk? Secretary Garcia? General Milstead?
        Mr. Garcia. If I could start, Senator.
        Senator Gillibrand. Go ahead.
        Mr. Garcia. The Navy leadership shares your belief these
    numbers are unacceptable, and we appreciate the approach you
    have taken with your proposed legislation and sharing it with
    us and letting us offer input.
        We concur that the court martial process as we know it has
    evolved since World War II. The introduction of specialized
    prosecutors, defense counsel, a robust appeals process, has
    changed. That is why we are working at the Secretary of
    Defense's direction to revisit and reform the convening
    authority process as it exists now.
        But know that we are not waiting on that process, and we
    are not living with these numbers. As we had a chance to visit
    the other day, you know that we have hired additional full-time
    sexual assault response coordinators and advocates and
    instituted a fleet-wide training programs. Every sailor and
    marine in the Navy has received training this year. Bystander
    intervention, training is taking place at every fleet
    concentration center.
        Special training for our Judge Advocate General and Naval
    Criminal Investigation Service agents ensure they are armed
    with the optimal prosecution and investigative tools available.
    You know about our expedited transfer policy. You know about
    the elevation of the sexual assault initial disposition
    authority. More than that, we are seeking to, as my Army
    colleagues referenced earlier, change the command culture where
    events like this could take place. We know, for example, there
    is an undeniable correlation all too often between incidents of
    assault and alcohol use, and that is why we are in the process
    of introducing across the Navy and across the Marine Corps, at
    every command, the use of alcohol detection devices, which is a
    new step that we have never taken before, to educate our
    personnel and our force about responsible use.
        I am aware of the study you cited earlier. I echo the
    concerns voiced earlier that the numbers are challenging, and
    we are digging into that. Within those numbers, for example, an
    increase in unrestricted reports versus restricted reports is a
    trend we want to see. An increase in personnel being willing to
    report events on the lower end of the unwanted sexual contact
    spectrum is positive if they are experiencing an atmosphere
    where they feel more comfortable coming forward.
        We have our teeth into this, and we are committed to this,
    Senator.
        Senator Gillibrand. Thank you. My time has expired, the Air
    Force can submit your answer for the record.
        [The information referred to follows:]

        Mr. Ginsberg. The challenge we face regarding sexual assault in the
    military is complex. Sexual assault damages unit cohesiveness and
    mission accomplishment at the unit level. Because of this impact, our
    commanders need to be at the forefront of the fight to reduce sexual
    assault in the military.
        One example of how good order and discipline could be directly
    impacted by removing initial disposition authority from commanders is
    with respect to the ability to enforce discipline through nonjudicial
    punishment under Article 15 of the Uniform Code of Military Justice. If
    an airman commits an offense that is appropriately disposed of through
    nonjudicial punishment under Article 15, the commander cannot compel
    the member to accept an Article 15. In the Article 15 process, if an
    airman accepts the forum, his commander assumes the role of trier of
    fact as well as sentencing authority for the offense alleged. However,
    an airman has the right to demand trial by court-martial instead. The
    ability of commanders to swiftly deal with those charges would be
    impacted if the commander did not have the authority to initiate court
    martial for an airman who turned down an Article 15 and essentially
    could render void one of the key tools for commanders to enforce good
    order and discipline through nonjudicial punishment by Article 15.
        When commanders consider the appropriate level of discipline before
    exercising their initial disposition authority, they are advised by a
    judge advocate. By teaming a commander and a judge advocate, we achieve
    the purposes of military law. The commander fulfills the obligation to
    preserve good order and discipline in the pursuit of combat capability;
    the Judge Advocate General fulfills the purpose of the independent
    provision of legal advice in the pursuit of justice.
        We continue to enhance our sexual assault prevention and response
    program to eliminate sexual assault from the Air Force, improving
    specific initiatives in the realms of prevention, investigation,
    accountability, and assessment in line with the Secretary of Defense's
    strategic guidance.

        Senator Gillibrand. But if we have a second round, that
    will be my first question. Thank you. Secretary Graham, I mean,
    Senator Graham.
        Senator Graham. Thank you.
        Senator Gillibrand. Mr. Secretary. [Laughter.]
        Sorry, Senator Graham.
        Senator Graham. Does it pay more and you get a plane? I
    will take it. [Laughter.]
        Senator Gillibrand. More than that.
        Senator Graham. The country has enough problems without
    making me secretary of anything. [Laughter.]
        TRICARE, from the Army, Navy, and Air Force's perspective
    at the Secretary level in 30 seconds or a minute, tell me about
    the sustainability of TRICARE.
        Mr. Lamont. Our health care costs are rising out of sight,
    as you can imagine. We would support the Secretary of Defense's
    efforts to increase minimally our fees where necessary.
        Senator Graham. They really have not been adjusted since
    1995, have they?
        Mr. Lamont. No. While we do have cost-of-living adjustments
    and our other benefits have gone up for our servicemembers, our
    TRICARE fees and costs to them have remained flat. I think we
    are really going to have to address that in the future.
        Senator Graham. Secretary Garcia.
        Mr. Garcia. Senator, the numbers speak for themselves. Our
    medical health system as a whole has gone from a $19 billion
    enterprise in 2006 to a $49 billion.
        Senator Graham. Nineteen to $49 billion?
        Mr. Garcia. That is right.
        Senator Graham. Wow.
        Mr. Garcia. Like you, we know how critical this benefit is
    to our personnel, but it has to be sustainable. We are willing
    and in support of the efforts to enact sensible and reasonable
    adjustments to do so.
        Senator Graham. Air Force.
        Mr. Ginsberg. Senator, obviously, sustaining an All-
    Volunteer Force is the Department's most critical priority, and
    medical readiness, and the medical care we provide for our
    airmen, and all of our servicemembers, is obviously vital.
        That said, of course, the trend in health care costs is
    certainly rising, and in the flat to declining budgetary
    environment, that means that there is additional pressure on
    other areas of our budget, including force structure,
    modernization, and readiness. So, if we do not address those
    larger issues and make sure we strike that right balance. The
    continual formula for the Air Force is continually shrinking to
    become a smaller force, a less ready force. So again, we have
    to make sure we take care of our people, but then do it in a
    sustainable fashion.
        Senator Graham. So the glide path for the budget is pretty
    much not growing very fast, but health care costs are. So
    eventually that is not good news for the budget, and we have to
    make it more sustainable.
        From an Army perspective in about 1 minute, tell us what
    sequestration is doing on the personnel side, even though pay
    is exempt from sequestration. From a morale point of view and a
    readiness point of view, on the personnel side, including
    families and civilians, how is this playing out in the Army?
        General Bromberg. Yes, Senator, if I could, first of all,
    as I am sure you are aware, we have had to curtail training in
    about 80 percent of the force, focusing on Afghanistan forces,
    those next deployers, as well as those in Korea.
        Additionally, we have curtailed for the first time six
    combat training center rotations at our national training
    center. I do not recall a time we have ever done that before.
    We have cut our flight training hours by 37,000 hours. That
    takes about 500 aviators out of the force. That will take us a
    couple of years to recover that, and aviation is one of our
    most used assets in Afghanistan.
        Senator Graham. If you do not fly a lot, it is dangerous,
    right?
        General Bromberg. Yes, sir, very much so. So that is going
    to be significant for us. We have had to cancel some courses
    this year, leader development courses. We have had to defer
    maintenance, both the depots and also down to the units. We
    have had to release over 3,000 temporary employees, and
    additionally, we had to reduce the Reserve component and
    medical readiness. We have had to cut that budget as well.
        For the families as far as morale, those civilian cutbacks
    have then translated into reduced services on installations, so
    everything you can think about that services a family on a
    post, camp, or station is going to see less hours, less
    availability. That, of course, creates great angst in the
    force.
        Senator Graham. Okay. The Navy.
        Admiral Van Buskirk. Senator, I would like to focus on--you
    asked specifically about the morale, and I think from the great
    part of our jobs and being in the personnel business, you
    mentioned, is about the people. I get a chance to actually go
    visit all of our homeports and actually hold townhalls and all
    hands call our people.
        I would say that the morale is good, yet what is cropping
    up more and more recently is uncertainty in terms of as they
    listen to the debates that are being carried among the Services
    and here in Washington, DC, they are watching very closely how
    they can be impacted in terms of the budget.
        Senator Graham. Are families beginning to feel it?
        Admiral Van Buskirk. Yes. Well, they are questioning are
    services going to be available. So we are reassuring them that,
    yes, the services are going to be there. The counseling
    services, our family and readiness services are going to be
    there. Our critical components of our 21st century sailor and
    marine are going to still be there.
        However, while we are able to do the services, there is a
    mortgaging of the future because we may not be able to do
    repairs to the facilities that they are operating in and
    modernize at the same time. So we are foregoing some of our
    future perhaps enhancements at the bias towards providing the
    services on a day-to-day basis.
        So a little bit of the uncertainty I think is creeping in
    there with what is next. You mentioned health care, is health
    care still going to be there for them? So it is important for
    us to go out, talk to them, hear their concerns, and address
    them straightforwardly to let them know what is going on.
        Senator Graham. Thank you.
        Admiral Van Buskirk. But overall, I think the morale still
    remains good, but there is some uncertainty there.
        Senator Graham. The Marines?
        General Milstead. Thank you, Senator. The U.S. Marine
    Corps, 61 percent of our budget goes to the military personnel
    account. Of that 61 percent, only approximately about 4 percent
    is discretionary. So a large chunk of our money goes for
    people. I will echo the uncertainty.
        But we have been able to, with the authorities that we have
    had, the commandant has been able to shift monies around in
    2013. We have been able to do that. But 2014 and out----
        Senator Graham. If we do this over 10 years, will it be
    devastating?
        General Milstead. Yes. I would say that the Marine Corps is
    going to have to make some hard decisions. You mentioned that
    the personnel account is protected. It is protected this year,
    but the President may not choose--that is a policy decision. He
    could unprotect it.
        But regardless of whether it is protected or not next year,
    we cannot afford to have the other 39 percent or so go to our
    readiness, as the Admiral pointed out, in our O&M accounts. The
    Marine Corps will be forced to do some things, some draconian
    things, and they may have to do with industry.
        Senator Graham. And----
        General Jones. Sir, many of our civilian employees are also
    military spouses. As we cut, as furlough would hit the civilian
    spouses, it will hit the joint income of the family. But you
    have to remember, morale is also part of the mission. We have
    very proud airmen, and we are very proud of what they do every
    day, and as we take down flying hours by 203,000 flying hours
    across the Air Force, as sustainment modernization and
    restoration accounts are hit significantly under sequestration,
    all of that begins to eat away at the comfort level of their
    ability to do the mission.
        Our airmen and their families feel the uncertainty of what
    is going forward in the future because of sequestration as it
    impacts them personally as a family and professionally as a
    mission.
        Senator Graham. One final thought. It is one thing to be
    inconvenienced and not have the nicer stuff. People, I think,
    understand that they are sacrificing their lives in military.
    But one thing I think would destroy morale is to believe that
    your spouse is not well equipped and well trained.
        Voice. Senator, is your microphone on?
        Senator Graham. Yes, sorry. I said the one thing that will
    hurt family morale more than anything, they can live without
    conveniences. They are a tough lot. But if they believe that
    their loved ones are not well trained and well equipped, we are
    going to destroy the family.
        Thank you.
        Senator Gillibrand. Senator Blumenthal?
        Senator Blumenthal. Thank you, Madam Chairman. I would like
    to pursue a line of questioning that Senator Gillibrand began.
    I am pleased to be working with her on some of these sexual
    assault initiatives, and thank her for her leadership.
        To come back to the question that she raised, and I am not
    sure it was answered, General Bromberg, if prosecutorial
    decisions were removed from the commanding officer either for
    sexual assault or more broadly, would that pose an insuperable
    obstacle to the good order and discipline of the military?
        General Bromberg. Senator, it could. It could very well,
    and that is what we have to look at. We have to look at the
    authorities and responsibilities of the commander, not just in
    this area, but across the whole spectrum of what we ask
    commanders to do from the company level, at the captain level,
    all the way through the general office level, particularly in a
    deployed environment where you expect officers to maintain good
    order and discipline in combat operations as well as when
    people are in garrison. Of course, this problem spans both
    deployment situations as well as at the home station.
        I think we have to look at the fundamental reasons why we
    want the Uniform Code of Military Justice (UCMJ) and the
    authority with our commanders in the field. So I think there is
    a real potential. We have to discuss it, and we have to
    understand the full range of impacts of those kinds of----
        Senator Blumenthal. But you are willing to discuss it,
    because if there were certain kinds of crimes, and these are
    really predatory crimes, violence often, that kind of decision
    as to whether to commence a criminal prosecution in some
    instances might well be at least lodged in some independent
    authority.
        General Bromberg. I think right now today, Senator, with
    the special teams we have put together advising the commander,
    it gives the commander that capability in the first place. So I
    would like to start to have that discussion.
        Senator Blumenthal. Those special teams include a victim's
    advocate or a survivor's advocate?
        General Bromberg. They include the special prosecutors, the
    highly qualified experts, the additional training of the
    criminal investigation units----
        Senator Blumenthal. I know that the Air Force, and maybe I
    can ask you, General Jones, when I received a briefing from
    General Welsh, he described the victim's advocate program that
    the Air Force was implementing. I wonder if you could describe
    for us perhaps some of the most recent lessons learned, some of
    the experience, and your evaluation of it.
        General Jones. Sir, I would be happy to. We started with 60
    legal experts who we trained to be special victim's counsels to
    give the victims a voice in this process, because the process
    can be intimidating. The process can be daunting, and many
    victims will tell us that they are revictimized as they go
    through the system.
        When we appointed 60 attorneys to specifically focus as
    special victim's counsels, the number of cases they took
    quickly ramped up to over 250 cases. I say ``over 250'' because
    literally every day we go back to look at the numbers. They are
    continuing to increase. It is empowering the victims to feel
    that they can go through with the process.
        In speaking with national experts that everyone recognizes,
    individuals such as Anne Munch and David Lisak, are real
    experts in this area. They will tell us that one of the
    benchmarks that you should look at is how many people did not
    follow through with the allegations once they were sexually
    assaulted, that did not see things through to the end.
        You can argue that the number of people who report sexual
    assaults may go up if you have a good program and people feel
    comfortable reporting. There is evidence that if people do not
    feel like there is trust in the system, the numbers will go
    down. So the experts will tell us the number of people who will
    not follow through is something we should look at.
        The fact that we have instituted this special victims
    counsel within the Air Force, the fact that our chief of staff
    called in every operational level commander, every wing
    commander, to specifically look them in the eye and tell them
    that we are going to get after sexual assault in the Air Force.
    We had 790 sexual assaults in the Air Force last year. One is
    too many. We have to be able to go make sure that the
    individuals are protected, that the individuals, when they come
    forward with a crime, that we investigate the crime, we punish
    the perpetrators.
        Senator Blumenthal. We have at this point, and I apologize
    for interrupting you.
        General Jones. No, that is okay.
        Senator Blumenthal. We are all limited in terms of the
    amount of time we have. Do you have benchmarks or metrics
    that--and I know they may be very difficult to establish, show
    the success of this program, although it has been operating for
    a relatively short period of time.
        Mr. Ginsberg. Senator, this program just started in
    January, but it is something we are looking at very carefully.
    We get reports frequently from our Judge Advocate General,
    Lieutenant General Harding. We are going to do some interim
    reports and then a more final report as this goes on, but the
    initial results, as General Jones says, is that this is making
    the victims very comfortable with the legal and investigative
    process.
        They have already gone through what can be a life altering
    experience, and then they are going to go through this very
    fatiguing investigatory and prosecutorial process. Now to have
    somebody to help interpret this process, help be there with
    them, along with the full-time victim advocates that we are
    bringing on, and the sexual assault response coordinators. You
    have this whole sort of interdisciplinary team that is there to
    back up victims as they go through.
        Senator Blumenthal. Have the other Services expressed
    interest or inquired about this program?
        Mr. Ginsberg. Senator, we are certainly very open with the
    other Services about our program and how we are doing it, but I
    certainly do not want to characterize where they are.
        Senator Blumenthal. I want to express my appreciation for
    the good work that you are doing in this area, and suggest that
    perhaps the other Services might, as you generally do, learn
    from the experience of your colleagues in your brother and
    sister Services.
        If I may ask, General Milstead, I know that there has been
    a plus up of the Marine Corps cyber command, Marine security
    guards, and special operations. As the Marine Corps draws down,
    are you concerned that the increase in personnel in these
    various commands could detract from or hollow out the strength
    of the other units?
        General Milstead. Senator, as we have incrementally
    downsized the Marine Corps, we have done it through a structure
    review. We have gone at this through a deliberate process of
    analysis.
        We are currently on target for a 1,821 force, and that
    1,821 force sufficiently fills the needs to keep the Marine
    security guard. The extra 1,000 marines that has come out of
    late is additive to that. The Commandant has made it very clear
    that the cost of those personnel and the cost for their
    training, the O&M for those personnel and for those billets
    must be above and beyond what is in our budget piece.
        As far as the cyber community, that has an increased
    appetite, and we have been feeding it, and we will continue to
    do so in an analytical way. That has been a part of the
    process. So as we downsize, you will not see a corresponding
    decrease in those two forces. They are manned for a specific
    mission, and they will be kept at that.
        Senator Blumenthal. Thank you. My time has expired, but I
    want to thank every one of you for your extraordinary service
    to our Nation in a difficult time. I very much appreciate your
    being here today and your very excellent testimony. Thank you.
        Thank you, Madam Chairman.
        Senator Gillibrand. Thank you, Senator.
        Senator Ayotte.
        Senator Ayotte. Thank you, Madam Chairman.
        I would ask, first of all, Secretary Garcia and Admiral Van
    Buskirk, about the civilian furlough impact in the Navy. I am
    very proud of the work done at the Portsmouth Naval Shipyard,
    having visited there recently, and talked to them about the
    civilian furlough impact on the maintenance schedule for our
    fleet.
        Obviously, I think this is a situation that ends up being
    pennywise, pound foolish because we will get behind on the
    maintenance schedule, and will not be able to have our fleet
    ready obviously. Then it costs more in the end as we are
    looking forward to the maintenance costs here for our submarine
    fleet. I just wanted to say I think it is critical that the
    hiring freeze be lifted or waivers approved, particularly for
    critical areas, like maintenance of our submarine program.
        Recently it has been brought to my attention that the Navy
    has developed a plan that could allow the Navy as well as the
    Marine Corps, General Milstead, to use its funds within
    existing appropriations to avoid the civilian furloughs all
    together. Do you anticipate the Office of the Secretary of
    Defense will permit the Navy to move forward with this plan?
        Mr. Garcia. Senator, I appreciate the question, and I know
    you are aware that from the beginning of this process, the
    Navy's position has been that furlough is the last resort. We
    have developed daily plans to minimize--the number, as we
    speak, is 14 days--to bring that number as far down as
    possible. But there are tradeoffs, and this is a deliberative
    process across DOD. We are working with them every day,
    including as recently as a session with the comptroller and our
    Secretary of the Navy yesterday.
        In the meantime, we have no alternative but to--our jobs
    are to manage our workforce such that if the furloughs do go
    forward, the impact on readiness, on long-term maintenance, is
    as minimal as possible, spreading those out where we can,
    trying to drive that number as far down as possible. Scott?
        Admiral Van Buskirk. I would just like to add that I think
    you hit it on the mark. Our biggest concern lies in the
    maintenance areas because that is directly associated with our
    ability to maintain a fleet ready and ready to deploy.
        Senator Ayotte. Yes. You get behind on those issues.
        Admiral Van Buskirk. Yes, ma'am. Of course, we are very
    concerned about that. We are also concerned about it from the
    total force aspect. One of my contemporaries also mentioned
    here about the impact on morale. As this goes forward, it is
    one that we are concerned with because this hits just one
    specific area of our workforce. But still the burden of the
    work is going to be there and have to be picked up by the
    remaining civilians who are there, and uniformed service, and
    Active and Reserves. So we are watching it very carefully.
    Certainly as low as we can get in terms of the furlough days is
    the better for us to be able to manage.
        From a personnel perspective, I represent as well training
    and education uniquely as chief of naval personnel. So we are
    just as concerned there in terms of the furlough days because
    we have many civilians who work in the training environment
    that are the instructors that work in our school houses.
    Therefore, we are concerned about potential impacts to the
    throughput of our sailors who then have to go--will be manning
    the ships to fulfill--to backfill those who are leaving. So it
    concerns us in that area as well.
        Senator Ayotte. I appreciate that it certainly concerns all
    of you. My concern is that we know that certainly the Navy can
    avoid the civilian furloughs, has a way forward to do it. It is
    up to OSD right now.
        I understand what they are saying about looking total
    force, but we have a situation where we are going to pay for
    this in the end. I hope OSD actually goes forward with the plan
    that the Navy has put forward. I will leave it with that.
        I wanted to ask about the Army Integrated Disability
    Evaluation System (IDES). Secretary Lamont, in your prepared
    testimony, you said that fiscal year 2012 was the first full
    year in which the Army used the IDES Army wide, and that it has
    eliminated many of the sequential and duplicative processes
    found in the respective Legacy systems.
        Thank you for you doing that. I appreciate it. I applaud
    your efforts. But currently, what is the average time for a
    soldier to process through IDES?
        Mr. Lamont. We still exceed over 400 days in that.
        Senator Ayotte. Obviously, I think we can all agree that is
    totally unacceptable.
        Mr. Lamont. Yes, we do agree.
        Senator Ayotte. I know that in your prepared remarks, you
    said that soldiers starting IDES today will complete the
    process in less than 295 days. Is that true?
        Mr. Lamont. That is certainly our goal, and we expect to be
    there by the end of this fiscal year.
        Senator Ayotte. Let me ask you this. Please, do not tell me
    you think that 295 days is acceptable either.
        General Bromberg. Two hundred and ninety-five is the duty
    goal, Senator, but what is most important is the care they get.
    Whatever we do, whether it is a complex case to a simple case,
    some will get through in 180 days, but they get the appropriate
    care with the appropriate compensation with appropriate
    benefits in the amount of time that we desire. That is our
    primary goal first.
        Senator Ayotte. But you are not setting the ultimate goal
    at 295 days, are you?
        General Bromberg. That is the DOD goal right now, and that
    is probably pretty reasonable for what the process----
        Senator Ayotte. That is where we are going to keep the
    goal.
        General Bromberg. Ma'am, it may change in the future, but
    we need to meet that goal first.
        Senator Ayotte. No, I want you to meet it, but do not tell
    me that that is where we are going to stop because I just do
    not think that is acceptable.
        General Bromberg. We will not stop there, but we will never
    shortchange the medical care that these folks need to get.
        Senator Ayotte. I think we are certainly all in agreement
    on that.
        General Bromberg. It does take a while for complex cases.
        Senator Ayotte. I have to say, certainly thank God you are
    all in a better--having been in a hearing the other day with
    Secretary Shinseki before the VA, I mean, at least it is better
    than what is happening in many of those cases there. But we
    still have a significant coordination issue obviously with the
    VA that needs to be addressed. It is really important because
    we just hear from too many people that are waiting too long.
        Mr. Lamont. Well, we have been very fortunate, frankly,
    because Congress did give us the ability to increase the
    resources necessary for our health care workers and the people
    who are involved in this process. Through the years, we have
    now standardized our process. We understand where we are going,
    and our throughput is much, much better than it was before. In
    fact, we may have contributed, because of that unexpected
    success, to the VA's problem in that we have created a backlog
    for them that may not have been able to compensate for without
    those additional resources.
        Senator Ayotte. Well, at least you got a system online.
    They are finally getting their system online. I mean, it is
    taking too long for these things. I know you had a comment,
    Secretary Ginsberg.
        Mr. Ginsberg. Just to add to the discussion of the DOD
    standard. This is something, of course, of prime interest to
    our Secretary of Defense and Deputy Secretary. Periodically
    they will get the Service Secretaries, Assistant Secretaries,
    and those responsible for personnel, to look up and down the
    various stages of the IDES and say, is this reasonable? What
    can we do to improve it? Is this really a good metric that is
    in place. So a critical concern is to make sure that we are
    moving everybody through the process, and that the standards
    that are being set are reasonable.
        Senator Ayotte. I thank you all very much for being here
    today and for your service. This is a very important issue that
    I look forward to continuing to work with you on, so that we
    can obviously get our servicemembers evaluated as quickly as
    possible. I know that you are focused on making sure they get
    the care that they need in the interim. But we all share the
    same goal.
        I appreciate you leading in difficult times with
    sequestration, and I thank you for what you are doing.
        Senator Gillibrand. We have time for another round, so if
    you would like to stay, you can have another 7 minutes.
        I would like to ask a little bit more about cyber. I
    appreciated Senator Blumenthal's focus on that. The fiscal year
    2014 budget indicates a large investment in our military cyber
    capabilities. The Pentagon approved a major expansion of the
    U.S. Cyber Command, increased ranks from 900 to 4,900
    personnel, or create the cyber warriors. I understand you are
    going to fortify DOD's own networks, help guide executive
    offense attacks, protect critical infrastructure like power
    grids and power plants.
        Senator Vitter and I have a bill called the Cyber Warrior
    Act, which provides the National Guard to serve a robust role
    in providing cyber experts to the Department. I understand that
    General Alexander is seeking thousands more cyber personnel,
    and that the Services do not have the adequate experts among
    your active duty.
        What is each of your Services doing to recruit and retrain
    individuals with the skills needed for military cyber
    requirements? Do you need additional legislative authority to
    track these individuals to military Service? Is there a better
    way to make use of our National Guard and Reserve to make use
    of cyber skills resident in our society? Why do we not start
    with the Air Force?
        General Jones. Ma'am, we are looking at how we have been
    doing cyber for a while in the Air Force, but we are looking at
    how we take that next step, how we retain and recruit these
    very specialized individuals. Many of them today are military.
    We can use recruiting bonuses. We can use continuation bonuses.
    But under sequestration, all bonuses will be getting severe
    scrutiny as we look to reduce the budget.
        Right now we do not know of any special legislative
    authorities we would need at this point, although we are still
    evaluating that. But we just have to make sure we are not being
    caught up in the old way of thinking as we look down at what
    clearly is going to be a new form of warfare.
        Mr. Ginsberg. Ma'am, if I could just dovetail on General
    Jones' remarks and talk specifically about the role of the Air
    Reserve component, Guard and Reserve. As we go forward and
    figure out what are the requirements to staff up to this new
    cyber command, we are going to make sure that we are looking at
    the portion of that mission that the Guard and Reserve can
    contribute to very carefully. This is certainly relevant. The
    Guard and Reserve could bring some very key contributions.
        You need a continuity of expertise in this mission area. We
    do not move people in the Guard and Reserve at the same level,
    so you need somebody who understands the details, understands
    the change in technology. That could very well be a mission
    that the Guard and Reserve take on more. We have a process in
    the Air Force to really look at what the Air Force mission
    requirements are over the long term, and then think mission
    area by mission area, what is the best balance among the
    various components.
        Admiral Van Buskirk. Senator, I think nothing like that--as
    I look across this table, all of us who are sitting at this
    table, we are collectively working with OSD on this very issue,
    sharing our best practices, our lessons learned as we are
    trying to all, I think, work jointly towards attacking this
    issue, and collectively working towards what should be the
    incentives that we apply. What should be the makeup of the
    people that make up our cyber warriors, the seniority, the
    ratings, the ranks, the MOSs? I think you should be encouraged
    by how well I think the Services are working towards providing
    this critical capability for our national defense.
        Additionally, we are looking at all those things to see if
    there are legislative things that we do need, and that is what
    we all have been working on to make sure we do this together
    jointly so there is no fratricide between us as we go forward,
    or with the other agencies. Clearly, there are a lot of skill
    sets that are demanded from our people which would be in demand
    for other agencies to use. So to make sure we are working with
    the other agencies that are involved in the cyber area, that we
    attack it jointly and look towards how we build the workforce,
    how we sustain it.
        So I think, again, you should be encouraged by how well I
    think we are working towards this to solve those issues, look
    to see where there are seams.
        General Bromberg. Senator, yes. Very similar to my
    colleagues here, looking at everything in detail. But there is
    definitely a place for the Reserve component, particularly when
    we look at the particular skillsets we need.
        We are going to start by using our existing forces
    obviously and build from those capabilities. We have already
    started screening. It does not matter what you are doing today,
    but do you have the right skills and attributes that we would
    look for in cyber warfare?
        We also believe there might be the need for legislation if
    we want to look at something along direct commissioning, going
    out into the civilian market and trying to pull people in. But
    of course with that will come dollars, and I think we will have
    to talk in the future about what kind of incentives because I
    think to maintain this talent and not have it transferred to
    the civilian sector back and forth, we will have to talk about
    compensation at some point. A very unique skill set. From my
    time at the U.S. Strategic Command, a couple of years ago I saw
    the same thing happen as we started this off. So we would be
    very sensitive to that, and we will bring those proposals
    forward jointly, I believe.
        Senator Gillibrand. Thank you. That sounds wonderful. I
    really want to work with you on this and to develop the plan,
    and whatever support you need we want to make sure we get it
    for you because it is such an urgent issue.
        Since I have a minute and a half left, I want to return
    back to hazing and suicides. Obviously the suicide rate is
    horrible. Suicide is not a military specific tragedy, but I
    would like to know what you are doing specifically to prevent
    suicides.
        I have heard that for a lot of the servicemembers, there is
    still a stigma associated with seeking mental health services,
    and there is a fear that it could end a member's career. So
    what is being done specifically to encourage servicemembers to
    come forward? The increase in suicide among people who have
    never been deployed is especially troubling, so what are we
    doing for that particular group?
        Now, with regard to hazing specifically, two of the recent
    suicides were New Yorkers, Private Danny Chen and Private
    Hamson McPherson. They were both minorities serving in the
    military, and it has been suggested that the lack of diversity
    in the military played some role in the hazing that led to
    their suicides.
        It is my understanding that hazing is not an enumerated
    offense in the UCMJ, leaving convening authorities with limited
    options for charging the perpetrators. Do you believe with that
    specifically we should change the UCMJ to make hazing a
    criminal offense? Just more broadly, what is your status
    reporting on hazing? What policy changes do you propose? Do you
    agree that increasing diversity will reduce instances of hazing
    based on individuals being different? What are your Services
    doing to increase diversity? Whoever wants to take it first.
        General Bromberg. Just in time, ma'am, very quickly, we
    have already changed our regulations as far as hazing. We have
    also modified the UCMJ to include where that is chargeable, and
    that is with hazing. We will follow up with the details on
    that.
        Senator Gillibrand. Okay.
        General Bromberg. Because it is a much more longer answer.
        As far as the stigma on suicide--Ready and Resilience
    Campaign in the Army. Again, we will take this for a follow-up.
    We will give you a full detail. That is now we are approaching
    it, building resiliency in individuals and engaging leadership.
        Senator Gillibrand. Thank you. Any other----
        Mr. Garcia. If I could start with the suicide challenge. If
    time permits, Admiral Van Buskirk and General Milstead can take
    you through the specifics of the programs. You will hear things
    about the DSTRESS Line. You will hear about the effort to end
    the stigma of raising their hand. The fact that every marine or
    sailor who have spent 30 days or greater with boots on the
    ground will receive a mental health assessment without having
    to raise their hand. Everyone gets it.
        Senator Gillibrand. Great.
        Mr. Garcia. We will do it again 120 days later. You will
    hear about the mobile training teams that are out in theater
    affirmatively seeking out our individual augmentees and
    assessing their mental health. They can get into those details.
        But if I was to give an overarching departmental wide
    perspective on this challenge, it is this: perhaps the most
    vexing piece of this is that, as I suspect you are aware, 50
    percent of our suicides--our worst tragedy--are nondeployers.
    Of those, 80 percent have never gone outside the proverbial
    wire. When we drill down on these tragedies, and we drill down
    on every one, what we find are all too often, as you alluded to
    earlier, non-military components that came together to cause
    this individual to take the most tragic action.
        Personal finance, relationship issues, professional
    challenges, stress, and that is why we have enacted a series of
    programs from enhanced financial management for our junior
    enlisted personnel and their families to address each one of
    those. If time permits, I know the flag officer----
        Senator Gillibrand. You can submit a full answer for the
    record.
        [The information referred to follows:]

        Mr. Ginsberg and Lieutenant General Jones. We do not believe the
    Uniform Code of Military Justice (UCMJ) should be amended to include an
    enumerated offense for hazing. Under its current construct, our
    military justice system has multiple tools that can be used to respond
    to incidents of hazing.
        Violating the Department of Defense (DOD) anti-hazing regulations
    is an offense under Article 92 of the UCMJ and subjects an offender to
    the possibility of a dishonorable discharge and confinement for up to 2
    years. In addition, the offender could still be accountable for any
    underlying offenses committed during the hazing (most commonly assault
    under Article 128, UCMJ). There is no shortage of enumerated offenses
    under the current UCMJ with which to charge misconduct otherwise
    characterized as hazing.
        Although section 534(b)(3) of the National Defense Authorization
    Act for Fiscal Year 2013 requires each of the Service Secretaries to
    report the methods currently implemented to track and report incidents
    of hazing, and Section 534(b)(4)(E) requires an assessment of the
    feasibility of establishing a database to track incidents of hazing, no
    requirement currently exists for any of the Services to formally report
    hazing.
        Data on hazing in the Air Force, however, is indirectly collected
    through use of our Judge Advocate General (JAG) Corps' Automated
    Military Justice Analysis and Management System (AMJAMS) database.
    AMJAMS is an offender-centric database used by the Air Force legal
    community to track the administration of justice for airmen suspected
    of any UCMJ violation that could result in preferral of court-martial
    charges or nonjudicial punishment. Offenses are tracked in AMJAMS
    according to the specific UCMJ article or articles suspected to have
    been violated in a particular case. Since there is no specifically
    enumerated offense under the UCMJ for hazing, a query of hazing
    offenses in the Air Force is accomplished by searching the narrative
    fields of the database files for key words.
        In the past 5 years, the Air Force has had six reports of hazing,
    with five of those reports substantiated. We have no evidence that
    there is any link between diversity in the Air Force workplace and our
    five substantiated reports of hazing. While there are many benefits to
    increasing diversity in the workplace, it is not clear to us that it
    will have any impact on incidents of hazing.
        We are working hard to identify specific areas of interest in under
    recruited geographic labor markets to enable us to attract and recruit
    the highest quality, diverse individuals to serve in our Air Force. In
    FY12, our Global Diversity Division partnered with the Air Force
    Recruiting Service to conduct a targeted advertising campaign in direct
    mail, digital media and print aimed at attracting high performing
    African American and Hispanic students who might qualify for U.S. Air
    Force Academy (USAFA) or Air Force Reserve Officer Training Corps
    (AFROTC) programs. In fact, the recruiting service devoted 20 percent
    of its fiscal year 2012 marketing budget to initiatives targeting
    specific minority communities (African American and Hispanic) to find
    high performing applicants and counter cultural biases against military
    service.
        In addition to the recruiting service's efforts, the USAFA's
    numerous recruitment efforts and programs, such as its Summer Seminar
    Program, Diversity Visitation Program and Admissions Forum Initiative
    have been successful in many areas and serve as the foundation for the
    future. The Summer Seminar Program targets high performing, diverse
    students who would be USAFA direct entry, USAFA Prep-School or Falcon
    Foundation candidates. The Diversity Visitation Program brings
    prospective minority cadets to the Academy for a 4 day program which
    includes academics, interaction with senior leaders, tours of the Prep-
    School and airfield and attendance at a sporting event. The USAFA
    Admissions Forum Initiative conducts 6-10 admissions events per year in
    strategically selected locations with under-representation of target
    populations and includes presentations to area high school students and
    their parents/guardians, training sessions with area Admissions Liaison
    Officers (ALO), informational presentations to local educators/
    counselors, and informational/training sessions with local
    congressional staffers.
        In its fourth year as a renewed program for recruiting, AFROTC's
    Gold Bar Recruiting Program will utilize 20 newly commissioned second
    lieutenant Gold Bar Recruiters (GBR) during the 2012-2013 school year.
    GBR's continue to refine their enterprise to find and influence high
    school minority candidates who have exceeded minimum High School
    Scholarship Program (HSSP) selection averages. The diverse backgrounds
    of GBRs allow them to connect with and recruit highly valued diverse
    applicants, some having similar experiences. The young, diverse faces
    of AFROTC recruiting, GBRs attend local, regional and national
    recruiting events.
        In fiscal year 2013/2014, continued coordination between all Air
    Force stakeholders regarding the recruitment of future diverse military
    and civilian candidates will be crucial to our success. Organizations
    across the Air Force enterprise will continue to leverage integration
    of their accession efforts with the goal of gaining economies of scale
    and scope while maximizing the strategic effectiveness and impact of
    the Air Force message to key target audiences.
                                     ______

        Vice Admiral Van Buskirk. Chairman Gillibrand, your question
    included multiple parts. I will respond to each one, individually:
    Question:
        What you are doing specifically to prevent suicides?
    Answer:
        Navy's Suicide Prevention Program employs five Lines of Effort,
    guided by an official fleet-wide policy instruction. The first two
    lines of effort--Education & Awareness and Prevention & Intervention,
    prepare leaders and sailors with the tools to navigate life's
    challenges and recognize the factors and warning signs that lead to
    suicide. Operational stress control and suicide prevention awareness
    and skills training are institutionalized at all accession points and
    career milestones. Additionally, in 2011, the Chief of Naval Operations
    established mobile training teams to deliver detailed professionally-
    facilitated fleet skills training, on-demand worldwide, for both deck-
    plate and senior leaders.
        Because risk factors and warning signs may be more obvious to
    qualified professionals, we've developed collaborative partnerships
    with care providers; medical, chaplains, and other Navy-affiliated
    counselors, to leverage their unique expertise in recognizing risks in
    care and treatment settings to actualize our third line of effort--
    Sailor Care & Transformational Growth. These experts are key in the
    reintegration process as well, returning ready sailors to their
    commands. We've also developed and instituted training for legal
    officers, designed to enable them to proficiently recognize at-risk
    sailors in legal trouble, and focused staff training for transient
    personnel units where sailors are temporarily billeted while they
    prepare for separation from naval service.
        Navy suicide prevention policy mandates that every command appoint
    a suicide prevention coordinator, who receives formal training and is
    responsible for local suicide prevention activities, annual command
    general military training, crisis response preparedness and reporting
    requirements. Suicide prevention coordinators contribute to building a
    supportive command climate and assisting leaders with maintaining an
    environment that promotes our fourth line of effort, Physical, Mental
    and Spiritual Fitness. Program-branded strategic communications
    products provide suicide prevention coordinators, leaders, and sailors
    with information on tools and education available to help them preserve
    their personal readiness, navigate stress and seek help before
    stressors compound. Additional ``postvention'' outreach is conducted
    for commands that have experienced a suicide to help them return to a
    mission-ready state.
        The fifth line of effort, Assessment, informs program managers and
    Navy leaders through suicide data collection and analysis, and fleet
    feedback using annual Behavioral Health Quick Polls and the Command
    Stress Assessment, which is part of the Defense Equal Opportunity
    Climate Survey required to be completed annually by every Navy unit.
    Question:
        What is being done specifically to encourage servicemembers to come
    forward?
    Answer:
        Encouraging help-seeking behavior is a critical component of our
    program's mission. Navy addresses policy barriers that lead to hiding
    stress injuries, suicidal behaviors and emotional stress, to ensure
    that commands understand leadership's commitment to upholding seeking
    help as a sign of strength. All of our training, informational
    products, leadership messages and multi-media resources encourage
    sailors to ``ACT: Ask, Care, Treat.'' The 2012 Behavioral Health Quick
    Poll revealed that over 87 percent of sailors were able to correctly
    identify the ACT acronym, and many believed that shipmates would be
    supportive if a sailor sought help from the Navy for suicidal thoughts
    or actions. Committed to minimizing the negative perceptions and
    misconceptions regarding seeking help, Navy introduced the message
    "It's Okay to Speak up When You're Down" in 2012. This message was
    presented to the fleet through a highly successful Public Service
    Announcement (PSA) contest that offered first-hand depiction of sailor
    perceptions. Several high quality PSAs are now being used for command-
    level training and awareness. We have also developed resources to
    promote healthy discussion of stress and suicide, as well as those that
    address myths about the perceived negative effect of reporting
    psychological health issues on security clearance form SF86.
    Additionally, this year, Navy has initiated a high degree of
    collaboration with the Chaplain Corps to reinforce their
    confidentiality campaign and promote awareness of Navy chaplains' 100
    percent confidentiality policy. We continue to find new and creative
    ways to encourage those who have successfully sought treatment for
    emotional or psychological issues to come forward and be an example for
    shipmates, normalizing and rewarding help-seeking actions.
    Question:
        So, what are we doing among people who have never been deployed?
    Answer:
        The current Navy operating environment and operational tempo do not
    appear to directly increase the risk of suicide, likely due to high
    unit cohesion and camaraderie during deployment, in conjunction with an
    elevated sense of belonging and purpose. These are protective factors
    against suicide. Therefore, our Operational Stress Control and Suicide
    Prevention training and awareness efforts focus heavily on recognizing
    the same stressors faced by both civilians and sailors, deployers or
    non-deployers, e.g., relationship difficulties, financial troubles,
    career decline, substance abuse, and psychological health, in
    conjunction with service-related factors such as transition periods.
    From the time sailors enter the Navy--having never experienced a
    deployment--throughout the duration of their careers, operational
    stress control courses are the cornerstone of our fleet stress
    management training, providing an integrated structure of health
    promotion and resilience-building designed to improve stress coping
    skills and ultimately to prevent suicide. Initial program awareness
    training is delivered at Recruit Training Command, and is then mandated
    annually through General Military Training at every Navy command.
    Additionally, tailored senior leadership training is delivered at the
    Senior Enlisted Academy and Command Leadership School, to help leaders
    recognize the signs of distress in all sailors and all operating
    environments.
    Question:
        Do you believe we should change the UCMJ to make hazing a criminal
    offense?
    Answer:
        There is no need for a new article of the UCMJ to specifically
    create an enumerated offense of hazing. The conduct which constitutes
    hazing is already sufficiently punishable under existing articles.
    Although hazing is not a stand-alone offense under the UCMJ, the UCMJ
    does allow for its effective prosecution. It is punishable under
    Article 92, UCMJ, for Violation of a Lawful General Order. The maximum
    punishment for hazing as an orders violation is dishonorable discharge,
    2 years of confinement, total forfeiture of pay and allowances, and
    reduction to pay grade E-1.
        Under Navy instruction, hazing is defined as any conduct whereby a
    military member or members, regardless of service or rank, without
    proper authority causes another military member or members, regardless
    of service or rank, to suffer or be exposed to any activity which is
    cruel, abusive, humiliating, oppressive, demeaning, or harmful. No one
    can consent to hazing under the instruction.
        In addition to Article 92, servicemembers alleged to have committed
    hazing can also be charged with additional offenses under the following
    articles:

            -  Article 93, Cruelty and Maltreatment. This article may apply
            when the accused is in a position of authority over another
            person (such that the accused can issue orders to that person),
            and the accused is cruel toward, or oppresses, or maltreats
            that person. Maximum punishment: dishonorable discharge, 1 year
            confinement, total forfeitures of pay and allowances, and
            reduction to pay grade E-1.
            -  Article 128, Assault. Depending on the circumstances and
            method of assault, the crime may be prosecuted as simple
            assault; assault consummated by a battery, or aggravated
            assault. Maximum punishment for the type of aggravated assault
            that may be the result of hazing: dishonorable discharge, 3 or
            5 years confinement (depending on the facts), total forfeitures
            of pay and allowances, and reduction to paygrade E-1.

        Hazing-related offenses can be prosecuted at general, special, or
    summary courts-martial or servicemembers can receive non-judicial
    punishment or administrative separation for conduct that constitutes
    hazing.
        The Acting General Counsel of the Department of Defense recently
    tasked the Joint Service Committee on Military Justice (JSC) to
    evaluate the possibility of establishing a specific ``hazing'' offense
    within the UCMJ. The JSC concluded that the UCMJ currently provides
    sufficient authority to prosecute hazing offenses. The JSC did propose
    a change to the Manual for Courts-Martial: the inclusion of an Analysis
    section, which will provide specific guidance to trial prosecutors on
    charging hazing incidents as a violation of a lawful order, under
    Article 92. Another proposal being reviewed is a sentence enhancement
    for hazing. If adopted by the President, this enhancement would
    increase the authorized maximum punishment for an Article 92 violation,
    if that violation constituted hazing.
    Question:
        What is your status on reporting on hazing?
    Answer:
        The requirement to report an act of hazing is outlined in the
    Department of the Navy's hazing instruction and Navy's Special Incident
    Reporting Procedures. By Department of the Navy policy, any allegation
    of hazing must be reported to the commanding officer, who must report
    any substantiated incident to the Chief of Naval Operations.
    Question:
        What policy changes do you propose?
    Answer:
        We propose no changes to current hazing policy, which is clear and
    unambiguous.
    Question:
        Do you agree that increasing diversity will reduce instances of
    hazing based on individuals being different?
    Answer:
        There is currently no data that supports the premise that increased
    diversity will reduce instances of hazing. Every member of the
    Department of the Navy must be afforded the opportunity to be a
    productive and contributing member, free of hazing and its ill effects.
    Question:
        What are your Services doing to increase diversity?
    Answer:
        Navy is utilizing focused outreach and recruiting to maintain and
    expand diversity of accessions, and is utilizing internal programs to
    enhance retention and development of all sailors. The rescission of the
    combat exclusion rule opened equal professional opportunity for women
    and the implementation of proactive programs e.g., longer post-partum
    deployment waivers, changes to sea/shore rotations, the career
    intermission pilot program, are having a positive impact on retention
    of women. Navy has moved away from an episodic, to a sustained, model
    of outreach to underrepresented groups. A Vice Chief of Naval
    Operations-led panel oversees the allocation of Navy outreach funds and
    strategy. Navy Recruiting Command utilizes Navy City Outreach Officers
    to directly contact diverse groups in their respective areas of
    responsibility. Individual Navy communities are accountable to the
    Chief of Naval Operations during their annual community self-assessment
    briefs for diminishing barriers to retention and advancement of diverse
    groups.
                                     ______

        Lieutenant General Milstead. Senator Gillibrand requested the
    following responses based on the hearing transcript page 56 thru page
    59:

        1.  Obviously the suicide rate is horrible. Suicide is not a
    military specific tragedy, but I would like to know what you are doing
    specifically to prevent suicides? Preventing suicide requires vigilance
    and our concerted effort to harness the strength of engaged leaders.
    Answer:
        Suicide is a very complex problem and it takes a multilevel (unit,
    family, peer, individual, community, society), multifaceted
    (individual/peer suicide prevention, family training, responsible
    reporting of suicide, stigma reduction of receiving behavioral
    healthcare treatment, case management) public health approach to
    prevent suicide. The mission of the Marine Corps as it relates to
    suicide prevention is to consistently and aggressively identify sources
    of risk and develop a comprehensive and strategic approach to address
    them.
        Identifying at risk: All marines are taught to recognize the
    warning signs of suicide, ask if a marine is thinking of suicide,
    express genuine care and concern for the marine, and immediately escort
    the marine to help. Marine Corps leaders are taught to know their
    marines on a personal and professional level and show genuine
    compassion and concern for all of the marines. Leaders are also taught
    that they serve as models to show marines that it takes a strong,
    committed marine to ask for and receive help.
        Comprehensive and Coordinated Services: To efficiently manage
    behavioral health risk, protective factors, and ultimately prevent
    suicide, the Marine Corps has combined all related programs under one
    behavioral health branch, and is developing integrated training
    programs to address common risks and protective factors across all
    domains of behavioral health. The training supports universal awareness
    and selected and indicated training for certain high risk Marine
    populations. It will consolidate all behavioral health information,
    including our Never Leave A Marine Behind training, into a single
    training session that focuses on common risk and protective factors
    across the full spectrum of behavioral health issues.
        Operational Stress Control and Readiness (OSCAR) serves suicide
    prevention by providing marines the avenue to recognize, acknowledge
    and seek help for stress reactions, which can lead to suicide. OSCAR
    supports commanders in building unit strength, resilience and
    readiness, therefore, keeping marines in the fight. The OSCAR team
    training creates teams of marines, medical, religious personnel, and
    mental health professionals within each battalion, or equivalent unit,
    who work together to create a network of support. This model empowers
    marines with leadership skills to break stigma and act as sensors for
    the commander by noticing small changes in behavior and taking action
    early.
        The Marine Corps is implementing a Case Management System (CMS)
    that reaches across multiple programs. The system assists in the
    identification of at-risk marines and improves appropriate service
    delivery as well as aftercare efforts. The CMS better equips the Marine
    Corps to closely monitor marines at-risk for suicide to ensure they
    receive appropriate care.
        The Marine Corps DSTRESS Line provides anonymous, 24/7 counseling
    services to any marine, attached sailor, or family member. The line is
    staffed by veteran marines and Fleet Marine Force corpsmen, Marine
    family members and civilian counselors specifically trained in Marine
    culture. The counseling gives callers `one of their own' to speak with
    about their issues.
        Additional ongoing and new prevention efforts are happening as
    well. This includes appointment and training Suicide Prevention Program
    Officers for each battalion and squadron to essentially serve as the
    ``eyes and ears'' of the suicide prevention program for the commanding
    officer.

        2.  I have heard that for a lot of the members of the troops, there
    is still a stigma associated with seeking mental health services, and
    there is a fear that it could end a member's career. So what is being
    done specifically to encourage servicemembers to come forward?
    Answer:
        It is important for marines to know that their leadership believes
    that they should seek help when faced with hard times and pain in their
    lives. Having engaged leaders that are alert to those at risk for
    suicide and take action to help them get help goes far to removing any
    notion of stigma. Additionally, it is essential to have leaders that
    show genuine care and concern for the marine, and who immediately
    escort the marine to help. It is also necessary for our leaders to
    serve as models to show marines that it takes a strong, committed
    person to ask for and receive help and by doing so lives up to the
    marine ethos. Through our various training programs, the Marine Corps
    is showing that our leaders are committed to standing behind our
    marines and their families when they need help spiritually, physically,
    psychologically and socially.
        One particular program that helps remove stigma is OSCAR. OSCAR
    serves suicide prevention by providing marines the avenue to recognize,
    acknowledge and see help for stress reactions, which can lead to
    suicide. OSCAR supports commanders in building unit strength,
    resilience and readiness, keeping marines in the fight. The OSCAR team
    training creates teams of marines, medical, religious personnel, and
    mental health professionals within each battalion, or equivalent unit,
    who work together to create a network of support. This model empowers
    marines with leadership skills to break stigma and act as sensors for
    the commander by noticing small changes in behavior and taking action
    early.

        3.  The increase in suicide among people who have never been
    deployed is especially troubling, so what are we doing for that
    particular group?
    Answer:
        Regardless of the deployment history of a marine, the Marine Corps
    has programs that are available to decrease stress involving suicide
    risk factors, such as, relationship problems, legal or disciplinary
    problems, behavioral health diagnoses, financial problems and substance
    abuse. In addition, our Operational Stress Control and Readiness
    (OSCAR) program is currently being refreshed with a curriculum that is
    applicable to all duty assignments. Content is driven by questions
    rather than scenarios and key messages/topics are relevant regardless
    of deployment history. Pilots are underway for the updated OSCAR
    training with planned force-wide implementation in late summer 2013.

        4.  It is my understanding that hazing is not an enumerated offense
    in the UCMJ, leaving convening authorities with limited options for
    charging the perpetrators. Do you believe with that specifically we
    should change the UCMJ to make hazing a criminal offense?
    Answer:
        The Marine Corps recommends that no specific hazing offense should
    be created under the UCMJ or the MCM because it is unnecessary.
    Enumerating a specific hazing offense under the UCMJ or the MCM would
    be duplicative of existing articles under which hazing can be
    appropriately charged. Creating a new hazing offense will not improve
    accountability or adjudication of hazing. Under its current construct,
    our military justice system has multiple tools that can be used to
    respond to incidents of hazing.
        Violating the DOD anti-hazing regulations, in and of itself,
    subjects the offender to the possibility of a dishonorable discharge
    and confinement for up to 2 years. That charge, however, does not speak
    to the underlying offense. The offender could still be accountable for
    any additional offenses committed during the acts which constitute
    hazing. There are no shortage of enumerated offenses with which to
    charge misconduct that qualifies as hazing.
        Hazing often has an assault component, and such misconduct will
    generally be charged separately. In many such cases, the assault is the
    gravamen of the offense. Since the prevention of hazing is tied to good
    order and discipline, Article 92 (violation of failure to obey a lawful
    general order or regulation) is an appropriate mechanism by which to
    enforce that standard. Moreover, statutory definitions are difficult to
    amend and update over time. When using Article 92 to prosecute hazing,
    DOD and the Service branches may update or amend the parameters of
    hazing much more effectively.
        To the extent that Article 92 is the appropriate mechanism with
    which to charge those who violate the hazing policy, the Marine Corps
    recommends including guidance on pursuing charges against
    servicemembers suspected of hazing under Article 92, in a discussion
    section to be added under that Article, in Part IV of the MCM. The
    discussion would read as follows:
        ``Department or Service regulations may promulgate policies on
    hazing and prescribe punitive provisions. Where such punitive
    regulations exist, incidents of hazing may therefore be charged as
    violations of Article 92(1), violation of failure to obey a lawful
    general order or regulation. In addition to Article 92, practitioners
    in all armed services may consider additional charges under other
    punitive articles based upon the underlying conduct of hazing
    incidents.''

        5.  With regard to hazing specifically, two of the recent suicides
    were New Yorkers, Private Danny Chen and Private Hamsom McPherson. And
    they were both minorities serving in the military, and it has been
    suggested that the lack of diversity in the military played some role
    in the hazing that led to their suicides. What is your status reporting
    on hazing?
    Answer:
        Effective 20 May 2013, the Marine Corps' policy for reporting
    allegations of hazing was revised and republished within Marine Corps
    Order (MCO) 1700.28B. Under this order, all allegations of hazing will
    be reported to Headquarters, U.S. Marine Corps (HQMC). This reporting
    requirement is not subject to, or dependent upon, the results of
    investigation used for determining whether or not allegations are
    substantiated.
        As a result of this revised reporting policy, HQMC will be more
    aware of the prevalence of hazing throughout its ranks and more
    effective in tracking hazing cases as they proceed through adjudication
    processes.

        6.  With regards to hazing, what policy changes do you propose?
    Answer:
        Effective 20 May 2013, the Marine Corps' hazing policy was revised
    and republished as MCO 1700.28B. The most significant changes reflected
    in the Marine Corps' new hazing policy include expanded reporting
    requirements, implementation of new tracking procedures, and
    refinements to the definition of hazing. With it promulgation all
    allegations of hazing will be reported to Headquarters, U.S. Marine
    Corps (HQMC). This reporting requirement is not subject to, or
    dependent upon, the results of investigation used for determining
    whether or not allegations are substantiated.
        In addition to the implementation of increased reporting
    requirements, MCO 1700.28B mandates the entry of all hazing allegations
    into the already existing Discrimination and Sexual Harassment (DASH)
    database. Once entered into the DASH database, all allegations will be
    tracked by HQMC from initial report to final disposition.
        Finally, the definition of hazing has been refined to specifically
    describe actions or activities that may be considered hazing. Marines
    of all ranks participated in the revision process, which has resulted
    in a more refined definition that will provide increased clarity to
    junior marines.
        In addition to providing a more comprehensive and presumably
    effective hazing policy, the Marine Corps has also taken the necessary
    actions to ensure that questions directly related to hazing are
    included on command climate surveys. The purpose of this initiative is
    to proactively identify and address underlying issues within the
    command environment that may contribute to incidents of hazing.

        7.  Do you agree that increasing diversity will reduce instances of
    hazing based on individuals being different?
    Answer:
        Currently, we have not identified a linkage between hazing and
    race, ethnicity, or gender.

        8.  What are your Services doing to increase diversity?
    Answer:
        Four main points illustrate the Marine Corps' diversity strategy:

        1.  Identify, attract and retain the best.
        2.  Create a climate that allows marines to perform at their peak.
        3.  Assess and understand the eligible population and their
    influencers.
        4.  Remove institutional barriers that hinder opportunities
    Executive Engagement on Diversity
        The Commandant's Diversity Initiative includes four diversity task
    forces. These task forces have taken ownership of diversity challenges
    associated with ethnic minorities, leadership, women and service
    culture. Three-star executive sponsors are providing guidance and
    oversight of each task force. The task force concept represents a
    significant philosophical shift-from ignoring human variations to
    uncovering and understanding them in order to drive actions. Through
    research and discussion of key questions, marines assigned to the task
    forces will play a key role in charting the way ahead for diversity in
    the Marine Corps. In order to ensure all officers and senior staff
    noncommissioned officers have an opportunity to be heard regarding
    diversity in the officer corps, all have been invited to participate in
    an online survey. The survey is a supporting arm of the task force
    effort in that it addresses: Culture and Leading Change; Leadership,
    Accountability, and Mentoring; Race/Ethnicity; and Women in the Corps.
    Analysis of the focus groups' themes and other resources may be used to
    direct future diversity actions and initiatives.
    Marine Corps Leadership Seminar (MCLS)
        The Marine Corps continues to present the Marine Corps Leadership
    Seminar to university students and community influencers at venues
    across the nation. In calendar year 2012, the Marine Corps conducted 6
    MCLSs and reached 242 students and 334 influencers. During the spring
    of calendar year 2013, the MCLS held 5 seminars and 1 reception which
    provided the opportunity for Marine officers to interact with a diverse
    audience of over 275 students and 40 influencers. The MCLS schedule
    included seminars at Virginia Commonwealth University, University of
    North Carolina at Chapel Hill, North Carolina State University, North
    Carolina Central University, and the Wake County Young Men's Leadership
    Academy, a magnet high school. The MCLS in conjunction with Marine
    Corps University is currently scheduled to visit the University of
    Washington's Daniel J. Evans School of Public Affairs in June 2013. In
    addition, leadership seminars are scheduled in Louisville, KY, in
    September and Atlanta, GA, in October. These seminars showcase Marine
    Corps leadership to diverse communities across the United States. The
    focus is on providing instruction and establishing dialogue with both
    student and faculty groups at colleges and universities. The intent is
    to offer participants an introductory understanding of the Marine
    Corps' unique brand of leadership. The MCLS accomplishes this by
    employing General Officers, active and retired, field-grade officers,
    company-grade officers and Staff Noncommissioned Officers to deliver
    personal leadership perspectives to each target audience.

        Senator Gillibrand. It is something I want to work with you
    on. I also want to offer whatever resources you need. Any
    collaboration you need from the Senate on these issues I will
    provide because it is such an urgent issue.
        Mr. Garcia. Great.
        Senator Gillibrand. Thanks.
        General Jones. Ma'am, one of the things we have done which
    is innovative is we have started embedding our mental health
    providers in the primary care facilities, not in the mental
    health clinic, but where you go for sick call, so that if you
    go in to see a doctor and the doctor is questioning you about
    how things are going, and he feels like there is a mental
    health issue here, he does not need to take you down the hall
    to mental. He walks you across the hall to a provider within
    that little office of six or seven providers so no one knows
    that you are going to see someone, where you can be evaluated
    to see if there is a mental health issue.
        We, like all the other Services, have found in the Air
    Force specifically there is no causal relationship between
    deployment, so we have to go after those things that do cause
    it. Relationships, financial problems, and legal problems are
    the top three things in the Air Force that cause it. The
    numbers will continue to be a challenge for us all, but we
    cannot take our eye off the ball.
        We share your concern and your passion for this issue
    because it is just a tragedy we cannot afford to let happen in
    our Services.
        Senator Gillibrand. Thank you.
        Senator Blumenthal?
        Senator Blumenthal. Thank you. I would like to pursue a
    topic that a number of you raised in your written testimony,
    which is the transition assistance program (TAP), preparation
    for life after the military, which will be an increasingly
    important and prevalent challenge given the draw downs and the
    reduced numbers of active duty that are going to occur.
        I assume that every one of the Services are at work on
    initiatives going forward, even beyond what you described in
    your testimony. So maybe I could ask each of the Services to
    expand on what you have given us in your testimony. We can
    just--in whatever order.
        Mr. Ginsberg. Senator, this was a major priority of the
    President last year, and he launched into a veterans
    opportunity work, veterans employment initiative, that
    basically really directed the Services to look at our
    transition assistance up and down. That goes well beyond just
    redoing the TAP, which held a 3-day seminar. It was
    fundamentally enhancing it, adding new career tracks.
        It also helps servicemembers be more career ready earlier
    on, to help start thinking about the transition and what they
    are going to do next even if they might be in the Service for
    20 years. But as they go along, to always just be ready so that
    if for some reason through force management actions they find
    themselves in a transition, they will be prepared and be able
    to move out.
        So we have applied manpower to this. We have applied
    resources. But it is an entirely redesigned program, again,
    presidentially directed that we will be rolling out in the
    months and years ahead.
        [The information referred to follows:]

        The Air Force is aggressively rolling out the redesigned Transition
    Assistance Program (TAP), and capturing monthly updates from
    installations Air Force-wide on the status of implementation. The Air
    Force was in compliance with the Veterans' Opportunity to Work Act by
    the 21 Nov 12 due date, with all active duty installations ready to
    provide the redesigned TAP.
        The Air Force TAP assists our transitioning airmen to be
    competitive in the private sector during this period of challenging
    economic conditions. The overall goal of TAP is to provide separating
    or retiring servicemembers and their families the information, skills,
    and resources, as well as personal and financial wellness and life
    skills needed for a successful transition to the civilian sector. Prior
    to the re-design of TAP, the Air Force provided pre-separation
    counseling, workshops, and Department of Veterans Affairs (VA) benefits
    briefings to separating airmen.
        With the redesign of TAP, there were major changes and improvements
    to the program. An example includes the increased partnership between
    the Department of Labor (DOL), the Department of Education (DOE), the
    Small Business Administration (SBA) with the Department of Defense and
    the VA to provide new courses to transitioning servicemembers. Also,
    Transition Goals, Plans and Successes (GPS), a 5-day workshop, is now
    mandatory for all separating servicemembers as part of the new program.
    Part of Transition GPS is a new 3-day curriculum on gaining employment
    administered by the DOL. Also part of Transition GPS, the VA benefits
    briefing has been revised and is mandatory for everyone. Other changes
    surround the policy on attendance. Airmen who do not already have
    confirmed employment or acceptance to school, must participate in one
    of the following workshops: Technical Track (Run by VA),
    Entrepreneurial Track (Run by SBA), and the Education Track (Run by the
    DOE). In addition, a capstone event is added to provide a time for the
    service to verify the airman has completed all components of TAP, has
    met the Career Readiness Standards, and has received the resources and
    information he/she needs to be successful upon separation. Ultimately,
    TAP will no longer begin at the time a servicemember decides to
    separate from the Air Force. With the redesign, TAP will start from the
    time an airman enters the Air Force and continue throughout the
    Military Life Cycle. Lastly, additional resources have been added to
    support the new requirements, to include manpower and funding.
        Feedback from airmen who are separating or retiring and have
    attended the new TAP program has been consistently positive, and have
    found the program useful. Our stern focus on providing our Air Force
    personnel who are separating and/or retiring with the information,
    skills, and resources needed for a successful transition to the
    civilian sector continues to grow. We are committed to exploring new
    means of sustaining innovative, timely and relevant support to our
    airmen that have defended this Nation.

        General Milstead. For the Marine Corps, our effort to
    rebuild our TAP precedes the Veterans' Opportunity to Work Act.
    The Commandant started that. That was one of the Commandant's
    planning guidance. It was to fix TAP. It was broken terribly.
    It had not received any attention in 15 years.
        We are actually stepping out now with the new program. It
    has a common module where everybody goes through. There could
    be somebody that is, say, an officer or enlisted. They get the
    same common presentations that they need on VA, those sorts of
    things. Then we bust them off to use the analogy of whatever
    your window is. If you are going to college, you go down the
    college path. If you are going to get into an entrepreneurship,
    you are going to open up your own business, you go down that
    path. If you are going to do a vocation or do something like
    that, be a truck driver, then you go down that path. If you are
    going to college, then you go down that path because you do not
    want to sit there--I do not need what you need, and you do not
    need what I need, and it is a waste of time. We constrict it to
    1 week because after a week, you lose them.
        Then, we are putting it online, and we are having the reach
    back capability for those that do not listen, sit there, they
    text the whole time because, you know what? They are going to
    Costa Rica and surf for 6 months. Then when they come back and
    then they decide, oh, my gosh, what was it they said, they can
    come back online. They can reach back in. So this has the
    Commandant--it is one of his top, top topics.
        Senator Blumenthal. Thank you.
        Mr. Garcia. The only thing I would add to that, Senator, is
    TAP, which we have known for the last decade and a half, is
    unrecognizable to this new regime. I will just caveat that the
    General's insights into the individual, specifically tailored
    tracks by saying there is a baseline that every transitioning
    member will get before they go into those individuals chutes.
    They will be signed off on having received their full VA
    benefit package review, their full Department of Labor series
    of benefits and programs available to them there. Each of them
    will be advised on how their specific military specialty, their
    MOS, their Navy Enlisted Classification (NEC), translates into
    civilian industry in the private sector.
        Senator Blumenthal. Thank you.
        Admiral Van Buskirk. One thing I would like to add is, and
    I think General Milstead pointed to this, is that by virtue of
    going after this jointly, we are also stimulating some great
    innovation on how to deliver these products. You mentioned
    reach back and application, apps, so that the information is
    not just available to the person for a short period of time. It
    is available for a long period of time and can be updated and
    made more current, and, I think, more of interest to our
    members who are transitioning so they will pay attention, and
    they will have the resource for a longer period of time.
        General Bromberg. Senator, as my colleagues have said,
    totally different program, mandatory, 5 days. Great program.
        As far as the Army, we have increased counselors to over
    400. This year we have almost 700 counselors worldwide to help
    soldiers. We have 25 forward locations to help the Reserve
    component as they demobilize or as they leave Service and
    Reserves. We also have 76 locations for the Active component.
    Virtual capabilities have now been added. Virtual job fairs are
    becoming very popular.
        In addition, the Army has wrapped this up in a Soldier for
    Life program where we are engaging industry in the communities.
    Many, many partnerships. I meet quarterly with 25 global
    companies to talk about removing barriers to veterans, and that
    has shown us a lot of product and a lot of great initiatives.
        Lastly, a great initiative with the American Pipefitters.
    We have started a pilot up at Fort Lewis, WA, where they have
    actually taken soldiers while on duty time have trained, and
    they will become journeymen with a job guarantee when they
    complete the course. So great initiatives going forward.
        Mr. Lamont. Just to follow up on that, it is the
    credentialing that we are really trying to help with with some
    new programs. If you are a truck driver, for instance, in the
    Army, you may be very well qualified to receive a commercial
    driver's license in the State of Connecticut. Without having to
    go through additional training or pass a test, or what's the
    equivalent? We are trying to make sure that in many of these
    occupations, we can have a direct transfer, whether you are an
    electrician--what are your qualifications you would have to
    have in the various States.
        We have any number of occupations similar to that, as you
    say, the pipefitter situation. In Illinois, for instance, the
    Heroes to Heart has a program with the teamsters, is very much
    focused on the over the road driver.
        But those credentialing programs are going to be very, very
    important in moving them very quickly into the private sector.
        Senator Blumenthal. I would like to thank each of you for
    your information on this point. I think I do not need to tell
    you because you know it better than I, that this area is really
    so critically important, not only to our present service men
    and women, but also to the veterans who are merging and have
    such contribution and skills to provide to our Nation. So thank
    you very much. I would like to follow up individually with you
    afterward.
        My time has expired. Thank you, Madam Chairman.
        Senator Gillibrand. Thank you to each of you for your
    extraordinary service, your very, extremely helpful testimony.
    We look forward to writing this year's authorization bill with
    your assistance. Thank you again for all you have done.
        [Questions for the record with answers supplied follow:]

                 Questions Submitted by Senator Lindsey Graham

                               CIVILIAN FURLOUGHS

        1. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, I am concerned about the potential impact of
    civilian furloughs on the Services' critically important family support
    programs. If furloughs take place, do you expect any cutbacks in your
    operating hours at commissaries, exchanges, and child development
    centers or curtailment of morale, welfare, and recreation, Department
    of Defense Education Agency (DODEA) programs, Transition Assistance
    Program or military spouse employment programs?
        Mr. Lamont. As a result of funding reductions/furlough guidance,
    each commissary will close 1 day per week. Operations at 7-day stores
    will reduce to 6-day operations; 6 days to 5; and 5 days to 4. Stores
    will be closed 1 additional day a week unless adequate local nationals
    are available to remain open in overseas locations. HQ/Areas Operations
    will be closed to coincide with store closures. There will be no impact
    on operating hours at the Exchange.
        As far as DODEA, furloughs will not affect the end of the 2012-2013
    school year. Though furloughs will be in place at the start of the
    2013-2014 school year, the number of days has not been confirmed.
    Regardless, DODEA will ensure that all students have a robust academic
    year. School staff will ensure students receive a full year of academic
    study even within a slightly shortened academic year due to the
    furloughs.
        Transition counseling services are contracted by a fully-funded
    contract through 30 Sep 13. There will not be a decrease/delay in
    providing transition services to soldiers and their families. However,
    the program is overseen at most installations by Transition Services
    Managers (TSMs), who are civilian employees. Garrisons will have a
    civilian employee or military personnel available to oversee contract
    operations during the time the TSM is furloughed. At smaller
    installations, transitioning soldiers will utilize virtual counseling
    services to meet Veterans Opportunity to Work Act requirements.
        Family and Morale, Welfare, and Recreation (FMWR) programs and
    services are currently frozen at fiscal year 2012 levels.
    Nonappropriated Fund (NAF) employees are currently exempt from
    furlough, which includes 2,637 full-time Child Development Center (CDC)
    and School Age Center (SAC) employees. These individuals will continue
    to maintain 5-day coverage of centers to accommodate the needs of
    soldiers and families.
        Although NAF employees are the primary service providers for most
    FMWR programs and services, appropriated fund (APF) employees are
    utilized within Army Community Service (ACS) Centers and, in some
    cases, Community Recreation programs. These employees are subject to
    furlough and some services will be impacted. Installation Senior
    Commanders and Garrison Commanders will determine the optimum method of
    furlough implementation with the goal of minimizing disruption to
    critical soldier and family programs. Some of these key programs
    include spouse employment, victim advocacy for sexual assault and
    domestic violence, Army emergency relief, support to exceptional family
    members, child abuse prevention and intervention support, support to
    wounded warriors and their families, and support to survivors. In most
    cases, our ACS Centers plan to close one day per week during the
    furlough period. In order to mitigate the effect of furlough, ACS
    Centers will develop strategies to ensure 24/7/365 coverage for key
    services such as victim advocacy and child abuse/domestic violence
    response. We encourage our centers to rely on electronic resources such
    as Army OneSource and Military OneSource to provide information and
    link up service providers to our soldiers and families.
        Mr. Garcia. The Defense Commissary Agency has advised that the
    furlough may result in the closure of each commissary one day a week.
        Nonappropriated Fund (NAF) employees are exempt from furloughs and
    there is no anticipated impact to Navy Exchange or Marine Corps
    Exchange operations.
        There is no anticipated impact to operating hours for child
    development centers as child care providers are exempt from the
    furlough.
        The Navy does not expect any significant disruptions to family
    programs. Navy Family Support Programs and Services will establish
    staggered staffing hours and utilize furlough-exempt personnel to
    minimize the service delivery impact. This will accommodate furlough
    days for GS staff and allow us to maintain uninterrupted support for
    family services such as, family readiness centers, Sexual Assault
    Prevention and Response (SAPR) programs, spouse employment services,
    clinical counseling services, and financial counseling services.
        Navy Morale, Welfare and Recreation activities, while implementing
    reduced hours of operation in all programs, including libraries,
    swimming pools and fitness centers, will minimize disruption by
    adjusting hours to peak usage periods.
        The Defense Education Activity (DODEA) has indicated that furloughs
    will be in place at the start of the next school year 2013-2014. DODEA
    is planning an approach that will not risk a full year of academic
    credit for our students.
        Furloughs will have no direct impact on the Department's ability to
    implement the new transition assistance program as directed by the
    Veterans Employment Initiative Task Force.
        Mr. Ginsberg. Civilian furloughs will have a negative impact on our
    ability to provide, and maintain, a variety of services to our airmen
    and their families. Specifically, commissaries will close 1 additional
    day per week and MWR programs are projected to experience reduced hours
    of operation and/or closed facilities. Additionally, budget reductions
    will have a negative impact on our ability to timely transform our
    activities to make our Services more efficient.
        With the exemption of 1,610 child care employees, we will continue
    to provide child care operations and minimize the impact to airmen and
    their families. Additionally, we do not anticipate Army and Air Force
    Exchange Service, TAP and Military Spouse Employment to be affected by
    furloughs.

        2. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, if civilian furloughs, in response to
    sequestration, impact the mission of the Military Entrance Processing
    Stations, then what options does your Service have to ensure your
    recruit accessions are not disrupted?
        Mr. Lamont. By shifting funding, the Army addressed the risk of
    accession mission failure in fiscal year 2013 and fiscal year 2014 due
    to sequestration. Civilian furloughs will not affect the ability of
    Army accessioning agencies to achieve fiscal year 2013 accession
    missions. If the U.S. Military Entrance Processing Command curtails
    operations in fiscal year 2013 due to civilian furloughs, some delays
    in contracting new soldiers for entry into the Army in fiscal year 2014
    may occur. For example, the Military Entrance Processing Stations will
    be shut down for one day per week. This will significantly increase
    applicant travel costs and adversely affect the streamlined process of
    new recruits. The Army plans to mitigate these delays by processing
    these soldiers after the beginning of the new fiscal year.
        Mr. Garcia. Marine Corps - All service recruiting will be impacted
    by civilian furloughs at Military Entrance Processing Stations (MEPS);
    because 80 percent of MEPS personnel are civilians. The possible
    civilian furlough reduces their available processing capacity.
    Implementation of a 4-day processing week would likely degrade our
    accession efforts.
        Navy - Navy ships its recruits from Monday through Thursday. We
    anticipate the furlough would shut down MEPS processing on Friday only.
    Therefore, Navy Recruiting accession mission may not be impacted as a
    result of planned MEPS furloughs in fiscal year 2013. However, with the
    planned 11 day MEPCOM furlough, Navy Recruiting would experience a New
    Contract mission shortfall of approximately 2,900 total new contracts
    for both Active component (AC) and Non-Prior Service Reserve component
    (RC). This shortfall represents approximately 15 percent of the
    remaining fiscal year 2013 New Contract mission of 19,675 (AC/RC). This
    shortfall would result in a 5 percent decrease in the Delayed Entry
    Program (DEP) posture for the beginning of fiscal year 2014. The
    reduction of the DEP posture from a target of 50 percent will increase
    our New Contract mission for fiscal year 2014. However, we anticipate
    meeting our accession mission in fiscal year 2014. If Military Entrance
    Processing Command (MEPCOM) furloughs continue into fiscal year 2014,
    MEPS capacity to process new contracts will be restricted and Navy's
    accession mission could be at moderate risk.
        Mr. Ginsberg. As approximately 80 percent of MEPCOM employees are
    civilian, if fully implemented, the 11-day furlough (as announced on
    May 14, 2013) will have a significant impact on MEPCOM's ability to
    process recruits and manage military accessions testing programs.
    Processing will be reduced from 5 days down to 4 days.
        There are no options to overcome recruit processing disruptions as
    a result of the MEPCOM furlough. Another mechanism doesn't exist to
    qualify youth for military service. MEPCOM is the sole entity for
    enlisted accessions. The Air Force will adjust to the reduced
    processing capacity by tightly managing the available processing slots.
    The Air Force will ensure slots are first utilized to send fiscal year
    2013 recruits to Basic Military Training (BMT), and then whatever slots
    remain will be prioritized to best meet fiscal year 2014 needs. These
    processing restrictions will force the Air Force to delay processing
    motivated applicants until slots become available at a later date.

                    INTEGRATED DISABILITY EVALUATION SYSTEM

        3. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, it is unconscionable that servicemembers
    must wait many months to receive a disability determination from the
    Department of Veterans Affairs (VA). While the Department of Defense
    (DOD) and the VA have made some progress in decreasing the amount of
    time it takes to get disability claims completed in the Integrated
    Disability Evaluation System (IDES), more work must be done. What is
    your Service doing to help the DOD and the VA doing to expedite claims
    through the system?
        General Bromberg. To assist the VA in managing this additional
    workload, the Army is providing personnel to perform administrative
    procedures to allow VA adjudicators to focus rating activities. Army is
    also making additional entries into the Veterans Tracking Application
    to allow VA to better manage cases in Benefits delivery phase of IDES.
    VA estimates this assistance will provide a 10-15 percent increase in
    the number of Ready for Decision cases over the 90-day period. We
    continue to explore and implement other solutions that provide the
    information that VA needs to finalize their rating decisions in a
    timelier manner.
        Admiral Van Buskirk. IDES performance data for April 2013, reflect
    that the average time to complete IDES processing for sailors is 258
    days, the fewest in DOD. This is measured against an IDES goal of 295
    days, which was established to ensure sailors receive all appropriate
    medical treatment, due process, and transition assistance while
    undergoing disability evaluation. Sailors continue to receive pay and
    benefits while going through the IDES, which helps narrow any ``benefit
    gap.''
        Navy is supporting the VA portion of the IDES process through
    efforts to provide the VA with a complete Service Treatment Record and
    by ensuring VA claim development and medical appointments are not
    missed. We are also participating in a joint-DOD/VA effort to improve
    timeliness in transferring information included in the DD Form 214,
    ``Certificate of Release or Discharge from Active Duty'', which is
    needed to initiate benefits delivery.
        Recent changes to the Transition Assistance Program and the
    Veterans Employment Initiative create a direct connection with VA
    counselors. As a result, awareness of benefits available through the VA
    is increasing, which may lead to an increase in the number of claims
    being filed prior to separation or retirement. Processing of such
    claims should be quicker since establishing service connection and
    access to medical records are typically easier before the servicemember
    transitions. Additionally, we have agreed to include an audiogram as
    part of our Separation Health Assessment (SHA) to establish a baseline
    for potential future VA evaluations.
        General Milstead. The Marine Corps does not own the IDES process.
    However, on behalf of our marines we have successfully undertaken
    various advocacy measures to reduce processing times. The Marine Corps
    is working to improve processing times in coordination with the Bureau
    of Medicine and Surgery through teleconferences with IDES stakeholders.
    Additionally, we have been providing Marine Corps leadership with
    detailed IDES information, which has resulted in their ability to work
    closer with the Regional Medical Commanders on specific issues
    impacting IDES performance. The Marine Corps has provided the Physical
    Evaluation Board (PEB) processing center with five enlisted marines, in
    excess of their authorized allowance, to ensure their authorized
    manning is kept at 100 percent. Additionally, four senior
    noncommissioned officers, above the PEB's allowance are being provided
    to perform field-level counseling and case processing assistance.
    Since, the Marine Corps began tracking the performance of marines
    processing through the IDES (June 2011), the number of cases exceeding
    the 100-day goal for the Medical Evaluation Board phase has decreased
    by 91.8 percent (610 cases down to 50). The Marine Corps will continue
    to work to identify and execute methods to ensure claims process
    expeditiously in the best interest of the marine.
        General Jones. The Air Force is committed to improving the IDES
    timeliness to better serve airmen as they rehabilitate, reintegrate or
    transition from military service. We are diligently working various
    measures to improve the IDES timeliness. We have realigned manpower and
    made hiring a priority within the Air Force Personnel Center to assist
    the PEB.
        The Air Force has partnered with OSD and the VA to enhance IDES
    information technology (IT) to create a seamless and integrated system
    to improve IDES timeliness. While DOD and VA develop an enterprise IT
    solution, the Air Force is exploring short-term IT solutions to
    expedite the transfer of IDES cases between the Military Treatment
    Facilities (MTF) and the Informal and Formal PEBs. In addition, we have
    improved communications between the VA, the Air Force Personnel Center,
    and the Air Force Surgeon General to ensure consistency of IDES tracked
    data. Finally, the Air Force rolled out its IDES pre-screening
    initiative to ensure the right airmen are referred into the IDES. The
    IDES pre-screen process provides a centralized review at the Air Force
    Personnel Center's Medical Retention Standards Branch of potential IDES
    cases which may not meet retention standards. The intent of the pre-
    screening process is two-fold. First, to identify airmen who may be
    returned to duty (RTD), instead of entering the IDES, thus preserving
    resources and reducing hardship on the airman and the unit. Second, the
    process identifies airmen, who need a complete Medical Evaluation
    Board, and refers them to the IDES, preserving readiness and a fit
    force. The pre-screening process does not alter any stage of the IDES,
    airmen's rights remain intact and the Air Force ensures due-diligence.
    As of 10 Apr 2013, the Informal PEB adjudicated 978 cases referred into
    the IDES by our Personnel Center's Medical Retention Standards shop as
    a result of pre-screening. Of those, only 27 were returned to duty by
    the Informal PEB, for a 2.76 percent RTD rate, far below the 15-20
    percent RTD rate historically seen prior to pre-screening
    implementation. We expect these major improvement strategies to improve
    the Air Force IDES timeliness by fall 2013.

        4. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, do you believe that the VA is doing all
    that it can do to decrease the amount of time for disability case
    reviews and claims adjudication?
        General Bromberg. Yes. I believe our partners in the VA are doing
    everything they can to decrease the amount of time for disability case
    reviews and claims adjudication.
        Admiral Van Buskirk. The delays in case review and adjudication are
    unacceptably long. At the same time, VA is coping with an enormous
    increase in claims being filed. We are very supportive of our VA
    partners in helping to decrease their disability case review and
    adjudication backlog. The Department of the Navy is moving ahead to
    support the VA's request to certify the Service Treatment Record
    completeness when forwarding for disability claim reviews. This will
    expedite the VA's ability for claim adjudication. Innovative solutions
    are always possible and we stand ready to assist the VA as they explore
    solutions for improvements.
        General Milstead. We are aware that the VA has objectives and key
    initiatives to reduce the case backlog. However, as a matter of
    protocol, the Marine Corps defers to VA for quantifiable data on their
    level of effort to decrease claims adjudication times. The Marine Corps
    Wounded Warrior Regiment, the military command charged with recovery
    care coordination for wounded, ill, and injured marines, regularly
    coordinates with VA on various disability-related matters. From an
    individual casework perspective, we find VA efforts to be complementary
    and oftentimes the actions of VA employees enhance our marines'
    recovery experiences, to include disability claims issues.
        General Jones. DOD and VA have implemented several improvement
    strategies to improve the IDES PEB timeliness.

        1.  VA has added 109 personnel to reach 264 full-time equivalents
    for claims adjudication, and consolidated Army claims at Seattle
    Disability Rating Activity Site to reduce processing times.
        2.  VA has proactively engaged DOD to expedite adoption of
    Disability Benefits Questionnaires (DBQs) within the IDES Program.
        3.  To better support DOD and members of the Reserve components
    (RC), VA implemented a process to perform IDES Compensation and Pension
    examinations closer to the residence of RC servicemembers.
        4.  VA's Chief of Staff conducts bi-monthly internal Video
    Teleconferences (VTC) with Central Office and Field Executive staff to
    review IDES performance metric and discuss process improvement
    measures. VA also has joint monthly VTCs with both Army and Navy/Marine
    Corps to discuss site performance and general collaboration
    opportunities.
        5.  VA's IDES leadership conducts weekly meetings with IDES
    leadership from Office of the Secretary of Defense (OSD), Warrior Care
    Policy, and the Military Services. These meetings have been occurring
    since July 2011.
        6.  VA Central Office personnel conduct periodic site visits to
    identify best practices and provide assistance.
        7.  VA and DOD routinely collaborate to improve and refine policies
    and procedures.

        Air Force continues to collaborate with VA to improve the overall
    disability evaluation process. Despite improvements, challenges still
    remain and all of the DOD is committed to working diligently with VA to
    continue streamlining and improving the overall disability process.

        5. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, does the VA need additional resources to
    hire more claims adjudicators?
        General Bromberg. The Army does not know if VA requires additional
    resources to hire more claims adjudicators.
        Admiral Van Buskirk. The VA continues to balance their workforce.
    We are confident the VA presented their defensible resource
    requirements in the President's budget.
        General Milstead. We defer to the VA for information on their
    manning and resource requirements.
        General Jones. The Air Force continues to collaborate with VA to
    improve the overall disability evaluation process. Despite
    improvements, challenges still remain, the DOD and the Air Force are
    committed to working diligently with VA to continue streamlining and
    improving the overall disability process.

                        PROTECTING PROSPECTIVE RECRUITS

        6. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, a recent tragic case in Maryland appears
    to have been a murder/suicide involving a prospective recruit and her
    recruiter. What guidance has your Service provided to ensure that
    prospective recruits and their parents or guardians are fully aware of
    the limits for relationships with recruiters?
        General Bromberg. Army Recruiter contact with newly contracted
    soldiers, prospects and applicants is highly restricted by Army policy.
    Recruiters who violate the regulations governing this contact are
    subject to disciplinary action, relief, or separation. Cards describing
    sexual harassment prohibitions and what the prohibited activities are
    for recruiters and applicants are given to all applicants upon first
    contact as well as to their parents. These cards are used by the US
    Army Recruiting Command in their recruitment of Regular Army and Army
    Reserve applicants. The Army National Guard has similar cards in
    development. In addition, all recruits in all the Army's components
    sign contracts which include descriptions of sexual harassment
    prohibitions and what the prohibited activities are for recruiters and
    members of the DEP.
        Admiral Van Buskirk. Navy Recruiting Command (NRC) provides
    applicants information on the first day of their enlistment into the
    DEP at MEPS. Additionally, recruiters and their supervisor also provide
    the same information to the future sailor and their parents or
    guardians during the 72-hour indoctrination. This policy is included in
    the Enlisted and Officer Recruiting Manuals. NRC also has a
    Fraternization Policy Acknowledgement that details the proper behaviors
    of future sailors and recruiters, which all future sailors must read
    and sign.
        At the time of DEP enlistment, NRC provides all future sailors a
    Standards, Transitions, Acknowledgements, Requirements, and Training
    (START) Guide. Recruiters and immediate supervisors are required to
    review the contents with each future sailor during the 72-hour
    indoctrination. The START Guide contains information regarding Sexual
    Harassment and Fraternization. Additionally, the START Guide lists
    ``Recruiter Prohibited Practices,'' which includes a prohibition on any
    relationship other than a formal, professional, relationship. Every
    Navy recruiter business card contains the following personal pledge
    from Commander NRC: ``We at Navy Recruiting Command are committed to
    professional, honest, and respectful treatment of every prospect and
    applicant.'' Also included is the NRC headquarters number, which is
    answered by Admiral Gay's personal staff.
        Finally, NRC is completing an intensive, updated SAPR Delayed Entry
    Program (SAPR-D) video presentation, which will be shown to every
    future sailor. It provides training on the Navy's SAPR Program,
    fraternization and sexual harassment policies. The video clearly
    articulates and emphasizes the future sailor's rights and responses if
    they feel they have been violated or mistreated.
        General Milstead. The Marine Corps has enacted additional policy
    and products that augment long standing ethical standards and
    procedures between applicants and recruiters. We established the
    requirement that all officer candidates and members of the DEP read,
    sign, and certify a Statement of Understanding regarding sexual assault
    and sexual harassment. This document includes notification and
    reporting procedures, which are also included in our formal ``Welcome
    Aboard'' materials. Additionally, a required values-based training
    curriculum, which includes video vignettes and ethical decision
    discussions to include sexual misconduct, has been incorporated into
    the DEP for all accessions. All marines attending the Basic Recruiters
    School are provided formal instruction on an `Ethics Package' that
    addresses specifically, relationship restrictions between applicants
    and recruiters, fraternization, sexual harassment, sexual assault, and
    alcohol issues and usage. Additionally a training product has been
    introduced for leaders at the recruiting station level to emphasize and
    reinforce ethics standards with their marines. This standardized
    product provides leaders videos and briefing points that require the
    interactive participation by their marines on the topic of instruction.
    All of the aforementioned were done to maintain and uphold the existing
    Marine Corps ethical standards of conduct between applicant and
    recruiter.
        General Jones. Air Force Recruiting has instituted an aggressive
    and comprehensive program to inform and educate recruits and their
    parents on the subject of inappropriate behaviors, to include
    unprofessional relationships throughout the recruiting process. This
    program employs video, talking points, ``Applicant Rights/
    Responsibilities Cards'', and signed statements. The program clearly
    defines what constitutes an unprofessional relationship vs.
    professional relationship between recruits and their recruiters, and
    advises the recruits of their right and obligation to report suspected
    or actual cases. The program also outlines sources of assistance and
    steps to be taken to address concerns.

        7. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, what information does your Service require
    to be provided to prospective recruits to ensure that they have
    immediate access to assistance and intervention, if necessary, if they
    believe a recruiter is intending to take improper advantage of them?
        General Bromberg. Army Recruiter contact with newly contracted
    soldiers, prospects and applicants is highly restricted. Cards
    describing sexual harassment prohibitions and what the prohibited
    activities are for recruiters and applicants are given to all
    applicants upon first contact as well as to their parents. These cards
    are used by the U.S. Army Recruiting Command in their recruitment of
    Regular Army and Army Reserve applicants. The Army National Guard has
    similar cards in development. Applicants and recruiters are offered a
    hotline phone number on the card to report any violation of a safe and
    proper environment. In addition, all recruits in all the Army's
    components sign contracts which include descriptions of sexual
    harassment prohibitions and what the prohibited activities are for
    recruiters and members of the DEP. The contract also provides the
    applicant a recruiting agency senior leader's telephone number for
    reporting sexual harassment or prohibited activity violations.
        Admiral Van Buskirk. Each Navy Recruiting Station has posters with
    Navy Recruiting District points of contact if applicants or future
    sailors have any issues during the recruiting process for which they
    desire assistance from someone other than their recruiter. Posters
    include the Department of Defense Safeline phone number and NRC
    Inspector General hotline number. Every applicant receives a business
    card from their recruiter that contains the recruiter's information on
    the front of the card and the following personal pledge from Commander,
    Navy Recruiting Command (CNRC) on the back: ``We at Navy Recruiting
    Command are committed to professional, honest, and respectful treatment
    of every prospect and applicant.'' Also included is CNRC phone number,
    which is answered by Admiral Gay's personal staff. We provide
    additional information at the time of Delayed Enlistment Program
    enrollment while at Military Entrance Processing Station, and again
    during the 72-hour indoctrination. Command Hotline and NRC Headquarters
    phone numbers are provided.
        General Milstead. The Marine Corps has introduced new policy and
    products that augment long standing ethical standards and procedures
    between applicants and recruiters. Our efforts include but are not
    limited to the expansion of ethics instruction at the Recruiters
    School, sustainment training for the recruiting force, and for all new
    accessions a mandatory recruiter-driven values-based training program
    and written `Statement of Understanding' that address sexual misconduct
    and reporting procedures. A Marine recruiter's immediate supervisor is
    identified during the initial process as an applicant's or parent's
    primary point of contact for any concerns or complaints, specifically
    including inappropriate conduct. Renewed command emphasis combined with
    improved education and information for applicants and parents increases
    the safety of our applicants and reinforces confidence in Corps-wide
    actions directed toward the prevention of sexual assaults.
        General Jones. Air Force Recruiting Service (AFRS) personnel are
    required to provide all applicants with an ``Air Force Applicant
    Rights/Responsibilities Card'' as early as practical in the application
    process before Military Entrance Processing Command (MEPCOM)
    processing. This card clearly defines professional relationships to
    potential applicants and provides guidance on how to report any
    violations. Recruiters are directed to discuss and train DEP recruits
    on expectations.
        In addition, each applicant views a video discussing professional
    relationships--what is professional and unprofessional, as well as
    expectations of recruits as Air Force members and what they can expect
    from their recruiter and the recruiting process. By defining what is
    and is not acceptable, the applicant knows what is expected and what is
    expected of the recruiter. This enhances the Rights/Responsibilities
    card--if the recruit notices unacceptable behavior, he/she can then act
    on it by contacting local Air Force leadership or the contacts listed
    on the card.
        Each recruit has the opportunity to discuss potential misconduct
    when they visit the Military Entrance Processing Station (MEPS) for the
    first time. Here, away from his/her recruiter, our MEPS liaison
    completes a survey with each recruit and asks if there were any
    instances of misconduct or action/words that made the recruit
    uncomfortable. If so, leadership addresses the concerns with the
    recruit and investigates allegations further to determine if additional
    action is necessary.
        Applicants will also receive periodic briefings from supervisors
    and squadron leadership during their time in the DEP. These briefings
    will further emphasize rights, roles, and responsibilities of all
    members as well as ways to report suspected or actual cases.
        The survey process completed with the MEPS liaison in the
    recruiting process is repeated both in BMT and Technical Training.
    Essentially the survey becomes a cradle to grave document within the
    accessions and training continuum.

                    DEFENSE SEXUAL ASSAULT INCIDENT DATABASE

        8. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, DOD has told us they have achieved full-
    deployment of the congressionally-mandated Defense Sexual Assault
    Incident Database (DSAID). Is your Service providing data to populate
    the database?
        General Bromberg. Yes. The Army pushes the DOD required sexual
    assault data to DSAID on a monthly basis using our Sexual Assault Data
    Management System (SADMS).
        Admiral Van Buskirk. Navy uses DSAID as a centralized, case-level,
    database for the collection and maintenance of information regarding
    sexual assaults. Navy Sexual Assault Response Coordinators (SARCs) use
    DSAID as a case management system, entering information within 48 hours
    of a report of sexual assault (96 hours in deployed locations
    presenting internet connectivity issues). DSAID includes available
    information about the nature of assaults, the victim, services offered
    to the victim, the offender, and disposition of reports associated with
    the assault. Naval Investigative Service uploads final case disposition
    weekly into DSAID.
        General Milstead. Yes. Full migration to the DSAID was completed in
    October 2012.
        General Jones. Yes, the Air Force is providing data to populate
    DSAID.

        9. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, what information, specifically, is this
    database providing your Services' leadership concerning sexual assault
    incidents?
        General Bromberg. The Army provides the required sexual assault
    data to DSAID from SADMS on a monthly basis. This information includes
    the type of report (Restricted or Unrestricted), type of assault (rape,
    forcible sodomy, aggravated sexual contact, etc), gender and rank of
    victim and alleged offenders, location (on/off post), investigation
    status, disposition status (court-martial, nonjudicial punishment,
    adverse administrative action, et cetera.) and victim services provided
    (counseling, healthcare, advocacy, legal, et cetera).
        Admiral Van Buskirk. The DSAID is a centralized, case-level,
    database for the collection and maintenance of information regarding
    sexual assaults, which Navy has been using since October 2012. DSAID
    includes information about the nature of assaults, the victim, services
    offered to the victim, the offender, and the disposition of reports
    associated with the assault. Over time, as DSAID becomes populated with
    more case data, it will increasingly provide the ability to identify
    and manage trends, analyze risk factors or problematic circumstances,
    and assist with actions and plans to mitigate risks.
        General Milstead. DSAID provides Marine Corps leadership accurate
    information on sexual assault cases and trends, which will inform
    assessments and decisions regarding future programs and training
    efforts. DSAID affords the Services enhanced ability to provide
    comprehensive and standardized victim case management, improved overall
    administrative functionality, and accountability in the tracking of
    victim services. DSAID also allows for the Military Criminal
    Investigative Organization data to be linked directly to a case,
    ensuring investigative data is accurate and allows cases to be
    transferred between military Services without re-creating case
    information, a functionality that was not provided for previously in
    each individual Service database.
        General Jones. The DSAID provides information on the following:
    Restricted and unrestricted reports, safety concerns identified, if the
    victim assessment was completed, status of investigation, location of
    the assault (on/off base), victim relationship to offender, and
    demographic information of the victim.

        10. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, before this committee, DOD witnesses described the
    recently revised DOD-wide policy on the Sexual Assault Program to
    standardize prevention, health care, victim safety, training and
    response efforts, and to clearly convey the role of servicemembers and
    employees in sexual assault prevention and recovery. This committee is
    concerned that medical care providers were not fully aware of their
    obligations concerning restricted reports, including the obligation to
    withhold disclosure to the chain of command. What actions have been
    taken to ensure standardization with response to protecting the
    sanctity of restricted reports?
        Mr. Lamont. The Army follows DOD policy and requires our healthcare
    providers to notify a SARC when a sexual assault victim seeks care at a
    MTF. The SARC (if not present with the victim) will then respond to the
    victim as quickly as possible.
        Health care providers are trained to safeguard the confidentiality
    of medical information and maintain it in accordance with current
    Health Insurance Portability and Accountability Act (HIPAA) guidelines
    regardless of whether the soldier elects restricted or unrestricted
    reporting. Improper disclosure of covered communications and improper
    release of medical information are prohibited and may result in
    disciplinary actions under the Uniform Code of Military Justice, loss
    of credentials, or other adverse personnel or administrative actions.
        Additionally, each Army MTF has a Sexual Assault Care Coordinator
    (SACC), Sexual Assault Clinical Provider (SACP), and a SARC who train
    other healthcare providers and healthcare personnel on their
    requirements regarding the preservation of restricted reports
        Mr. Garcia. Bureau of Medicine and Surgery Instruction 6310.11A
    (Sexual Assault Prevention and Response Medical-Forensic Program) has
    been recently revised and signed on May 2, 2013. This policy
    establishes the training requirements for all health care providers who
    will complete medical-forensic examinations.
        A subset of the multi-disciplinary policy revision working group
    has been convened to oversee and support implementation of policy
    guidance. The training is 14 hours in length and in a standardized
    format that supports health care providers in completing a Sexual
    Assault Forensic Examination (SAFE), reviews the SAFE kit and contents,
    chain of custody, preparing to be a factual witness and Navy specific
    policy guidance and reporting options. Restricted reporting is
    thoroughly covered in this training as well as the current medical
    response training required of all Navy Medical Department personnel.
    Documentation of completion is required and metrics have been
    established to support tracking of training implementation.
        Mr. Ginsberg. DOD and the Air Force have established policy
    concerning restricted reporting cases as detailed in Department of
    Defense Instruction (DODI) 6495.02 and Air Force Instruction (AFI) 36-
    6001. Sexual assault policy pertaining to medical care is listed in AFI
    44-102. All sexual assault cases are referred to a SARC who insures the
    victim is briefed on their options for reporting. If the victim elects
    restricted reporting, then all medical assessments are completed but no
    reporting occurs to command authorities. Documentation of the medical
    assessment is flagged to prevent unauthorized release. In addition
    healthcare providers are required to take standardized first responder
    training.

        11. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, what additional challenges do you see in attaining
    the required level of standardization?
        Mr. Lamont. I do not see any challenges in standardization that the
    Services and DOD, working together, have not already addressed. Two
    examples include the decisions by DOD to standardize SARCs and Victim
    Advocate (VA) credentialing requirements and train sexual assault
    investigators from all Services at the U.S. Army Military Police
    School.
        Mr. Garcia. Each Military Service has a unique culture and
    operating environment. Beyond that, sexual assault prevention, sexual
    assault victim support, and sexual assault criminal investigations and
    prosecutions are overlapping but separate areas of activity.
        First, we need to better distinguish between specific activities
    that should be performed in just about the same way everywhere, and
    those where tailored approaches may be more effective. Sexual assault
    victim support is a good example of the former--victims should expect
    the same services everywhere. Sexual assault prevention is a good
    example of the latter--the Services need flexibility to implement
    strategies that work for them.
        Second, we need to evolve beyond standardizing exactly how to do
    things, and instead explore performance-based standards for key aspects
    of our processes that are most important to those affected. That will
    be hard work, and it will require genuine collaboration. For example,
    we want to know what aspects of our victim support processes are most
    important to victims themselves, so we can focus on making them more
    personal and effective.
        Mr. Ginsberg. DSAIDS is the system of record for all reports of
    sexual assault. The Navy and Air Force both update each incident
    (restricted and unrestricted) reported into DSAIDS while the Army uses
    their Sexual Assault Data Management System (SADMS) which interfaces
    with DSAIDs. Each Service participates on the OSD SAPRO Change Control
    Board (CCB) to ensure standardization and system improvements.

        12. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, what additional tools does your Service need in
    order to continue to reduce--with the goal of eliminating--sexual
    assault?
        Mr. Lamont. Continuing our partnership with Congress is necessary
    so we can work together toward our common goal of eliminating sexual
    assault. Recent legislation has facilitated that effort. However, it is
    our responsibility to establish the positive organizational climate and
    culture needed to appropriately prevent and respond to sexual assault.
        An area where Congress may be able to assist is to establish
    programs in communities and schools that counteract the negative social
    influencers that contribute to behavior that may lead to sexual
    assault.
        Mr. Garcia. We need more expert resources for investigations of
    alleged sexual assault crimes. NCIS has come a long way in the past
    several years. They have implemented impressive special training, and
    they have hired criminal investigators with civilian expertise, but the
    workload impact of new requirements to investigate all alleged sexual
    assaults, regardless of severity, is daunting.
        We also need to establish new, tailored, programs for sailors and
    marines who have been victims of sexual assault. We are in the early
    stages of developing such programs. Sexual assault victims have an
    especially high risk of re-victimization, and we must break that cycle
    by providing peer support and personal tools to help them succeed and
    fulfill their personal and professional goals without unduly labeling
    them or undermining their performance of primary duties.
        We are in the process of expanding across the entire Navy
    Department best practices from local pilot projects involving focused,
    synchronous, SAPR efforts. We must maintain visible and consistent
    senior leadership engagement working across organizational boundaries
    to change our culture and re-shape the attitudes and behaviors of our
    sailors and marines. It will require dogged commitment and perseverance
    over a prolonged effort. Key to our success will be our ability to
    partner across the Department of the Navy uniformed and civilian
    leadership to identify common goals and standards while implementing
    effective solutions that work in various settings and operating
    environments.
        Mr. Ginsberg. Air Force leaders have worked diligently towards the
    goal of eliminating sexual assault from our ranks. While there is no
    single tool to fix the sexual assault problem, we're attacking it from
    every angle. The Air Force is constantly evaluating our techniques and
    mediums to provide education and training content that will increase
    awareness of sexual assault and the importance of prevention,
    intervention, and victim care. Additionally, we are bolstering the
    investigative and prosecutorial process to show we're serious about
    taking action against offenders, which we believe will increase
    confidence in the process. This is evidenced by the introduction of the
    Special Victims' Counsel (SVC), effective January 28, 2013, which has
    had the greatest influence on victim empowerment and willingness to
    cooperate in the military justice system. Prior to the implementation
    of our SVC program, the rate of change from restricted to unrestricted
    reports was 17 percent. Now approximately 55 percent of our victims
    assigned to a SVC change from restricted to unrestricted reports.

        13. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, some have suggested that it would be
    appropriate to incorporate standardized assessments of commanders'
    performance in prevention, investigation, accountability, advocacy and
    assessment of sexual assault response and prevention lines of effort.
    What is your assessment of the feasibility of implementing commanders'
    performance in service-specific performance appraisals?
        General Bromberg. It is very appropriate to assess all officers and
    noncommissioned officers (NCO) on their enforcement of SAPR principles
    including their establishment or support of a positive command climate.
    The current Officer and NCO Evaluation Report allows for comment
    regarding support of Equal Opportunity and Sexual Harassment. Army
    Regulation 600-20, Army Command Policy also encourages comment for this
    topic. The future Officer Evaluation Report (OER) and Noncommissioned
    OER will continue to stress this topic and will be further reinforced
    by the Army Doctrine Reference Publication 6-22, Army Leadership under
    the Leader Competency of Trust.
        Admiral Van Buskirk. Incorporating standardized assessments of a
    commander's performance in prevention, investigation, accountability,
    advocacy, and assessment of sexual assault response and prevention
    lines-of-effort, could be accomplished using the current Navy fitness
    report by amending our governing instruction to require such an
    assessment, or by revising the current form. Additionally, current Navy
    fitness reports evaluate an officer's performance related to Command or
    Organizational Climate/Equal Opportunity.
        General Milstead. The Marine Corps Fitness Report system provides
    the official evaluation and record of an officer's performance and
    contains a section entirely dedicated to leadership. This section
    evaluates the commander's ability to set the example, communicate
    effectively, provide direction, and motivate, which includes his or her
    ability to develop, lead, and ensure the well-being of subordinates.
    Ensuring the well-being of subordinates necessitates that officers
    demonstrate a genuine concern for their safety--a characteristic rooted
    in the defining Marine Corps values of honor, courage, and commitment.
    The commander's efforts must enhance the concentration and focus of the
    subordinate on unit mission accomplishment, which includes setting an
    environment free of any criminal behaviors, such as sexual assault
        In line with the Secretary of Defense (SECDEF) memorandum dated 6
    May 2013, the Marine Corps is exploring methods to assess the
    performance of our commanders in establishing command climates that
    foster dignity and respect. To this end, the Commandant has directed
    the development of new command climate surveys to be administered
    within 30 days of a new commander taking command and at the commanding
    officer's 12-month mark. Designed to measure the ``health'' of a
    particular command, the survey will cover a spectrum of issues,
    including sexual assault, and will be integrated with the ongoing
    efforts to stop all behavior-related offenses, including sexual
    harassment, hazing, and alcohol misuse. This initiative fulfills a
    specific provision in the National Defense Authorization Act (NDAA) and
    the 6 May SECDEF memo, which also mandates that survey results be
    provided for review to the next level up in the chain of command.
        General Jones. The current Air Force Officer Performance Report
    (OPR) already evaluates a commander on all leadership performance
    factors which include the implementation of the SAPR program within
    their units.

        14. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, the annual report on sexual assault at the
    Service academies revealed that many people who enter the armed
    services have experienced and report sexual assault or unwanted sexual
    contact that occurred before they entered the Service Academies or the
    armed services. What could your Service be doing to improve support to
    men and women in the accession process, to identify whether individuals
    have experienced sexual assault?
        General Bromberg. The U.S. Military Academy does not screen
    applicants for a history of sexual assault, but does provide all new
    cadets information about the Army's Sexual Harassment/Assault Response
    and Prevention Program.
        When a New Cadet self-identifies during Cadet Basic Training, or
    subsequently over the course of their career as a Cadet, the cadet is
    referred to a SARC or Victim Advocate who provides essential support
    and care to the victim.
        This support includes, but is not limited to, providing information
    on available reporting options (restricted and unrestricted), available
    resources to assist the victim in the healing process (e.g., on- and
    off-post counseling, chaplaincy, DOD SafeHelpline), and due process and
    investigation procedures (legal assistance and/or law enforcement to
    include Criminal Investigation Division--even if serving in a liaison
    role between civilian law enforcement and the military for off-post
    incidents).
        The Victim Advocate provides continual support until the victim
    states that she/he no longer requires assistance or until departure
    from the academy, at which point she/he receives information about
    resources available after departure.
        Admiral Van Buskirk. Navy has a thorough application process, which
    includes detailed medical screening of applicants at Military Entrance
    and Processing Station (MEPS). Although not asked explicitly, are
    questioned by MEPS Chief Medical Officers using a Supplemental Health
    Screening Questionnaire to determine if they have experienced any
    significant abusive events in their life.
        To improve support for men and women during the accession process,
    NRC has developed training focused specifically to indoctrinate them on
    military SAPR policies, to help prevent sexual harassment and assault,
    and to provide them with procedures to act on an incident that might
    occur. In addition to attending this training, there are a wide variety
    of products and resources (e.g., videos, posters, and brochures)
    recruiters use for local training programs and to increase awareness
    with the future sailors in the DEP.
        The U.S. Naval Academy (USNA) also has a thorough application
    process, which includes medical screening of applicants. USNA ensures
    that each entering freshman is made aware of the services of the
    Academy's SAPR Office, including medical, counseling and advocacy, and
    legal assistance. All incoming plebes receive a SAPR indoctrination
    brief within 14 days of arrival. This session includes an in-depth
    overview of the USNA SAPR Program; a discussion on sexual assault,
    consent, types of reports, and services available; and stresses that
    these services are available regardless of when they experienced the
    sexual or interpersonal violence. Academy SAPR staff follow up with
    plebes, conduct refresher training, answer questions and again stress
    the availability of services.
        As a result of findings in the most recent Service Academy Gender
    Relations survey, the USNA has implemented additional process changes
    for the entering Class of 2017 that will arrive this June.
    Specifically, during the Indoctrination-Day check-in each plebe will be
    asked in a confidential setting if they have experienced sexual assault
    prior to entering the Academy. Regardless of response, each plebe will
    receive a data sheet identifying available services and points of
    contact, should they desire to use them. This information will provide
    the SAPR Office and chain-of-command with real-time data on our at-risk
    population, and provide individuals information they can use to access
    services discreetly.
        Navy is sensitive to the fact that asking explicit questions
    regarding sexual assault could lead to revictimization of an applicant,
    which is something that should be carefully avoided. DOD is currently
    conducting a review of the applicant accessions process as one aspect
    of the 2013 DOD SAPR Strategic Plan released by the Secretary of
    Defense on May 6, 2013.
        General Milstead. Sexual assault policies are explained to all
    members within 14 days of their entrance on active duty. The brief
    includes how to report a sexual assault and what supportive resources
    are available pertaining to care and justice. During the process,
    servicemembers are afforded the opportunity to speak to a Victim
    Advocate.
        Servicemembers who were assaulted prior to entry in the military
    are provided the same resources and care as those who were assaulted
    during their service in the military. All victims are given the option
    to file a restricted or unrestricted report and, after exercising this
    option, are assigned a Victim Advocate and SARC and afforded medical
    and counseling services. If the case is unrestricted, it is referred to
    the Naval Criminal Investigative Service and the victim's command is
    notified.
        General Jones. The U.S. Air Force Academy (USAFA) has programs in
    place to inform incoming cadets about available helping agencies and
    resources to assist them, along with information on how to access those
    services. USAFA makes every effort to provide an environment where
    these victims can thrive as they begin their military careers. In these
    instances, our goal is to ensure the victim's choices are honored and
    that they are comfortable coming forward to get help and report if they
    choose. USAFA will also cooperate to support the civil authority with
    jurisdiction should the cadet pursue filing charges. Several
    initiatives are in place to help victims of trauma connect with support
    mechanisms.
        Under the current program, basic cadets are briefed on sexual
    assault and associated helping agencies on day two after their arrival.
    This briefing addresses coping with assaults that may have occurred
    prior to coming to USAFA. The briefing also discusses the numerous
    resources available to include: SARC; chain of command; Military
    Guidance Officers--cadets trained to interface with other helping
    agencies; chaplains; counseling services; equal opportunity experts;
    medical providers.
        Later in basic training, in conjunction with sexual assault
    awareness training, anonymous polls are conducted to get an idea of the
    number of basic cadets previously assaulted and to remind them of the
    resources available to them. Individuals are not asked to identify
    themselves to protect their ability to file a restricted report, if
    desired. Some basic cadets are unaware that they experienced a sexual
    assault until they receive the training and understand the Air Force
    definitions.
        Similar to USAFA, Air Education and Training Command has an
    aggressive and comprehensive program for new recruits regarding proper
    relationships and to explain and educate them on their rights and how
    to report inappropriate conduct. In October 2012, AFRS rolled out its
    Dissuade, Deter, Detect, Hold Accountable (D3A) program to train
    recruiters and applicants alike on professional relationships. The D3A
    program is designed to baseline professional relationships from day one
    as they work through the recruiting process and follows them to BMT.
    Following initial professional relationship training, applicants are
    provided an ``Applicant Rights/Responsibilities Card'' and both the
    recruiter and applicant sign a ``Professional Relationship Contract''.
    Professional relationship training is then reinforced at each stage of
    the recruiting process. Additionally, the applicant is provided the
    opportunity to address relationship concerns/issues through a
    ``Professionalism Questionnaire'' provided at initial Military Entrance
    Processing Station (MEPS) processing and on ``ship day'' when they
    depart for BMT.

                          COMMAND CLIMATE ASSESSMENTS

        15. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, what percent of your commands conduct
    command climate assessments?
        General Bromberg. According to the records maintained in the Equal
    Opportunity Reporting System the Army is 80 percent on the completion
    rate for this fiscal year. Our units rely on the Defense Equal
    Opportunity Management Institute Organization Climate Survey (DEOCS), a
    web-based survey instrument, and it was offline from Septempter 12
    through mid March 13 due to budget issues which account for a lower
    rate. Units relied on the Army Research Institute paper and pencil
    survey during the time DEOCS was offline and this is a time consuming
    process and caused delays in meeting the mandated timelines in our
    regulation.
        Admiral Van Buskirk. All commanders are required to conduct a
    Command Climate Assessment (CCA) within 90 days of taking command and
    yearly thereafter. In fiscal year 2012, 90 percent of Navy commands
    participated in the Defense Equal Opportunity Management Institute
    (DEOMI) Organizational Climate Survey (DEOCS), before the system went
    down on 19 September 2012. However, the DEOCS is just one portion of a
    CCA. Echelon II commands are charged with tracking their subordinate
    command's completion of the CCA. We entrust Commanders to hold their
    Commanding Officers accountable for 100 percent completion of the CCA.
        General Milstead. 100 percent. All commands conduct climate
    assessments in accordance with current DOD, Navy, and Marine Corps
    directives.
        General Jones. All Air Force units have the opportunity and are
    encouraged to conduct climate assessments by the Equal Opportunity (EO)
    Office. EO Offices, on behalf of the commander, administer Unit Climate
    Assessments (UCA) on organizations that have 50 or more personnel (both
    military and civilian combined). For those organizations with less than
    50 members, commanders are not afforded the UCA; however, they are able
    to utilize other forms of EO climate assessment such as Out and Abouts,
    Focus Groups, and Interviews. In addition, the Defense Equal
    Opportunity Climate Survey (DEOCS) is available through the Defense
    Equal Opportunity Management Institute (DEOMI) to gauge the climate of
    the organization. The difference between the UCA and the DEOCS is that
    contractors are permitted to be survey participants in the DEOCS.
        The UCA is required every 2 years or upon commander's request. With
    the passage of the NDAA for Fiscal Year 2013, the new requirements
    necessitate annual climate assessments and they must be completed
    within 120 days upon assumption of command. The Air Force is currently
    revising Air Force regulations to reflect the new requirements.

        16. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, what are your Services doing to improve
    the regularity of command climate assessments?
        General Bromberg. We updated Army Regulation 600-20 in September
    2012 to read ``Company level commander (or their equivalents) will
    conduct a unit command climate survey within 30 days of assuming
    command (120 days for ARNG and USAR), again at 6 months, and annually
    thereafter. Assessments must include a facilitated small group
    discussion of topics. Company level commanders (or equivalents) may
    supplement any survey efforts with individual and group interviews, the
    analysis of unit records, and statistical information (awards,
    promotions, reenlistments, incidents of misconduct resulting in UCMJ,
    and EO complaint reports).'' We report and track the compliance rates
    for command climate surveys.
        Admiral Van Buskirk. Every commanding officer is required to
    conduct a command climate assessment within 90 days of taking command
    and annually thereafter. The Navy will continue to track the completion
    of the Defense Equal Opportunity Management Institute (DEOMI)
    Organizational Climate Survey (DEOCS), by Echelon II command, on a
    quarterly basis.
        General Milstead. Current changes in the command climate survey
    requirements will result in commanders surveying their commands within
    30 days via the Defense Equal Opportunity Climate Survey and annually
    thereafter. Results of the completed surveys will be provided to the
    next higher level command.
        General Jones. The overall Air Force climate assessment is
    conducted annually. Current regulatory guidelines require units to
    conduct climate assessments in units once every 2 years and upon
    request by a commander. The NDAA for Fiscal Year 2013 has a requirement
    to conduct a climate assessment annually and within 120 days upon
    assumption of command by a new commander.
        The Air Force is considering several courses of action on how to
    increase the regularity of command climate assessments with existing
    resources, including increasing the use of focus group interviews and
    various other survey assessments.

        17. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, what is your Service doing to evaluate the
    results of the command climate assessments to ensure necessary follow-
    up action?
        General Bromberg. Equal Opportunity Advisors assist the company
    commanders with accomplishing the command climate assessment by
    assisting with completion of a command climate survey, focus groups,
    evaluation of complaints requests for assistance (if any). Once the
    assessment is complete, EOAs assist the commander with developing a
    training plan to address any issues discovered during the assessment
    and provide guidance on the feedback required to the unit to complete
    the assessment cycle. Commanders and EOAs then brief equal opportunity
    training during Quarterly Training Briefings to their superior
    Commander. Additional command climate surveys will be reviewed by the
    superior Command on a research basis.
        Admiral Van Buskirk. Each Immediate Superior in Command (ISIC)
    ensures subordinate commanders assess their command climate within 90
    days of assuming command with annual follow-up assessments during their
    command tenure. Every commanding officer is required to provide an
    executive summary of survey results and any intended actions, within 60
    days of completing a command climate assessment. The ISIC also ensures
    necessary follow-up action on the results of command climate
    assessments. Additionally, we are constantly evaluating what we can do
    to increase the effectiveness of our leaders in command. A working
    group has been assigned to evaluate and make recommendations on
    expanding and reinforcing supervisory command relationships. By
    identifying potential or ongoing issues early, timely correction is
    likely to set conditions for a successful command environment.
        General Milstead. The Commandant of the Marine Corps has directed
    new command climate requirements to be administered within 30 days of a
    new commander taking command and annually thereafter, in order to
    continue fostering a positive climate within each Marine Corps unit.
    The survey covers a spectrum of personnel issues and will be closely
    integrated with ongoing efforts focused on reducing all behavior-
    related offenses. The results of the surveys will be measured in order
    to obtain accurate knowledge on the health of each command. To assure
    accountability, the results of the surveys will be shared with each
    commander's next higher headquarters. The Commandant's intent is to
    provide commanding officers with the necessary tools to identify high-
    risk behaviors and positively act on behalf of the health of their
    commands.
        General Jones. The Air Force Climate Survey is conducted biennially
    and the results are out-briefed to the Secretary of the Air Force and
    released to the units. Commanders with ten or more respondents are
    provided survey results along with a guide developed by behavioral
    scientists from the Air Force Personnel Center, Directorate of Manpower
    containing specific recommendations and lists of resources to improve
    their unit climate. Leaders that use previous survey results to make
    improvements with the organization have yielded higher levels of
    agreement in all areas.
        In addition to the Air Force Climate Survey, the Air Force has
    Equal Opportunity (EO) subject matter experts that conduct UCAs,
    analyze the results, and provide an out-brief to unit commanders.
    During the out-brief, EO professionals discuss recommendations and
    strategies for problem resolution and offer follow-up services to help
    resolve EO or managerial related problems. With the passage of the NDAA
    for Fiscal Year 2013, UCAs will be conducted annually, rather than
    biennially, and within 120 days upon assumption of command.

                       FEDERAL VOTING ASSISTANCE PROGRAM

        18. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, what is your assessment of the performance of your
    Services' Federal Voting Assistance Program (FVAP)?
        Mr. Lamont. It is my assessment the Army has a very robust voting
    assistance program. We have a large network of Installation Voting
    Assistance (IVA) offices and Unit Voting Assistance Officers (UVAOs)
    who are providing voting assistance on a year round basis. In 2012, the
    Army voting assistance program had over 7,800 appointed and trained
    active duty UVAOs who provided information to eligible voters within
    their organizations. The Army also created Public Service Announcements
    that were seen overseas and state-side and participated in Absentee
    Voters Week and Armed Forces Voters Week to encourage eligible voters
    to register and vote. The Army voting assistance program has also
    successfully leveraged social media by using Facebook and Twitter, and
    established and maintain a vigorous communications strategy. We empower
    individual voters and continue to provide voting assistance and
    guidance to soldiers, civilians, and their dependents.
        Mr. Garcia. The U.S. Marine Corps has an effective Voting
    Assistance Program (VAP) and the Marine Corps is complying with the
    requirements put forward by title 10, U.S.C., section 1566 and the DOD
    FVAP. This assessment is based upon the results of 19 inspections
    conducted during calendar year 2012 and 7 inspections so far during
    calendar year 2013 at all levels of command. The Marine Corps VAP
    operates in accordance with established policies and procedures and is
    effective in assisting eligible voters. The Marine Corps is confident
    that servicemembers and their eligible family members were aware of all
    2012 voting events and were provided assistance and documentation for
    all absentee voting requirements. The current Marine Corps order
    covering VAP was republished on 1 April 2013, and incorporates
    previously issued interim guidance as was required by changes to the
    law from the MOVE Act that passed as part of NDAA for Fiscal Year 2010
    (P.L. 111-84) and updated DOD Instructions. The Marine Corps will
    continue to inspect, review, and provide guidance to update appropriate
    Marine Corps orders, policies, and procedures to ensure eligible voters
    have the opportunity to exercise their voting rights.
        Mr. Ginsberg. The Air Force FVAP is a successful program within the
    department at all levels of command. In 2012, the Air Force Major
    Command inspection teams reviewed 134 Voting Assistance Programs at
    squadron, group, wing and command levels with just 12 discrepancies
    reported. All discrepancies were classified as ``minor deficiencies''
    by the SAF/IG. As a result, the Air Force is confident we have an
    effective FVAP in place and military members have the resources to
    exercise their right to vote.

        19. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, what Service-specific initiatives have you
    implemented to improve compliance with FVAP and to maximize the
    opportunity for servicemembers to exercise their right to vote?
        Mr. Lamont. The Army welcomes the responsibility for providing
    voting assistance to our servicemembers, their family members, and our
    civilian employees. Before the 2012 elections, we made weekly phone
    and/or e-mail communications to IVA offices to ensure proper manning
    and updated any changes to office contact information. The Army
    continues to complete monthly phone and/or e-mail communications to the
    IVA offices. To maximize voter participation, over 7,800 active duty
    UVAOs provided voting assistance at the unit level. They presented
    registration and voting information during meetings, training sessions,
    and formations. The UVAOs provided assistance and encouraged
    servicemembers to access the FVAP website for fast and efficient voter
    registration and assistance. Some of the Army voting activities for
    2012 included participation in Armed Forces Voters Week and Absentee
    Voters Week with IVA offices setting up voting information tables in
    high traffic areas. To increase voter awareness and participation, the
    Army Voting Assistance Program uses Facebook, Twitter, public service
    announcements, print media, and mass e-mail distribution. The Army
    continues to use collaborative tools and information sharing with FVAP
    to push current and relevant voting information to our voting
    assistance personnel and eligible voters.
        Mr. Garcia. In addition to publishing a revision to the Marine
    Corps order on 1 April 2013, several steps were taken to increase
    voting awareness, improve compliance with FVAP and maximize voting
    opportunities for servicemembers. The Marine Corps released two video
    public service announcements for inclusion on all units annual training
    and Marine Corps movie theaters during the months leading up to the
    2012 Federal Election. There are 18 IVA Offices established on bases
    and stations across the Marine Corps in accordance with FVAP
    directives, and every unit with 25 persons or more are required to have
    a Voting Assistance Officer appointed in writing by the Commander of
    the unit to assist and train all personnel in voting processes and
    responsibilities. Family member outreach for voting age dependents is
    also coordinated at Headquarters Marine Corps, and the Family Readiness
    Officer network is utilized to convey voting and election information
    to the spouses and other voting age dependents.
        The 2012 election cycle saw a wide range of initiatives taken by
    the Navy to provide a better-than-ever level of support to voters.
    Efforts included the full implementation of the MOVE Act and
    establishment of an IVA Office at every Navy Installation, the
    engagement of senior leadership, strengthening of command level voting
    assistance programs, innovative marketing and awareness efforts, and
    training. The Navy took a holistic approach to ensure that voters were
    aware of elections and their rights and afforded every opportunity to
    register and vote absentee.
        Mr. Ginsberg. The U.S. Air Force (USAF) Voting Assistance Program
    initiated several initiatives to improve compliance with FVAP and title
    42, U.S.C.

         1.  The USAF made a change to Air Force Policy Directive (AFPD)
    36-31 which effects the requirement for an IVA office in the Military
    and Overseas Voter Empowerment (MOVE) Act, establishing the office as a
    voter registration agency within the installation headquarters
    organization reporting directly to the installation commander
         2.  USAF moved ahead quickly with changes to the AF Voting Action
    Plan in December 2009, implementing various requirements of the MOVE
    Act prior to OSD and FVAP releasing any guidance (i.e., service
    requirements for moving members and deployers immediately implemented).
         3.  USAF implemented the ``Core Unit Voting Assistance Officer
    (UVAO)'' position which is authorized by the installation commander's
    appointment letter for the IVA office. IVA Offices are given the
    authority to appoint up to four Core UVAOs to assist in the manning and
    workload of the IVA Office, which remains an unfunded mandate to date.
    Special training is required for IVA Office and Core UVAO positions.
         4.  USAF produced an ``IVA Office Handbook'' supplement to the
    ``FVAP IVA Office Handbook'' on 30 Aug 2010. To date, seven versions
    have been published. In May 2013, the Handbook contents are being
    incorporated into the AF Voting Action Plan so that IVA Offices and
    other IVA Office workers have a single document for the execution of
    the AF Voting Assistance Program.
         5.  USAF established an effective communication dissemination
    system from Service Voting Action Officer (SVAO) to IVA Office to UVAO
    to all Squadron members and their voting age family members. Any voting
    news items generated by FVAP were immediately passed on to voters
    through this streamlined network.
         6.  USAF IVA Offices are required to be clearly marked and
    advertised on base, giving voters a visible office; and UVAOs were not
    forgotten. 85 percent of voting assistance during the past quarter was
    done at the unit level by UVAOs.
         7.  USAF SVAO scripted a Public Service Announcement which the
    USAF Chief of Staff released in January 2012, encouraging military
    members, DOD civilians and their families to vote.
         8.  USAF SVAO implemented a new Staff Assistance Visit
    (inspection) requirement for IVA Offices to perform on all assigned
    UVAOs between Feb and March of every even-numbered year.
         9.  IVA Offices are instructed to partner with military and
    civilian personnel offices to have the IVA Office included on in/out-
    processing checklists for Permanent Change of Station (PCS) and
    deployment processing as well as for address changes.
        10.  USAF maintains an online website that allows IVA Offices and
    UVAOs to access all current documents and guidance; search for and
    submit ``best practice'' documents; and communicate via the forum.
        11.  USAF IVA Offices are encouraged to work with local election
    officials (LEOs) during biannual Armed Forces Voters Week and Absentee
    Voters Week events to invite the LEOs on base to assist in the booth
    for local voters.
        12.  USAF IVA Offices are provided an intuitive, stand-alone,
    forms-based ``IVA Office's Database'' for easy management of UVAO
    manning and training requirements as well as documenting UVAO ``due-
    outs'' (tasks), voters week plans and after action reports. Reports are
    generated at the push of a single button.
        13.  The USAF Voting Action Plan provides IVA Offices and UVAOs
    multiple tools to use in the execution of their voting assistance
    duties. These include instructions for ordering forms, posters, and
    banners online at no cost to their units; template voting assistance
    information forms; and a biannual chronological sequence of events.
        14.  Various other measures were taken following the passing of the
    MOVE Act: (a) IVA Office voicemail and email is answered within 48
    hours (24 hours if within 60 days of a Federal election); and (b) USAF
    SVAO hosted a webinar to train IVA Offices on establishing and running
    IVA Offices (three webinars done to ensure time zones around the world
    were supported).

                           OPERATION TEMPO OVERSIGHT

        20. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, what is your assessment of your Services'
    Operation Tempo (OPTEMPO) reporting and how well are we meeting our
    OPTEMPO requirements to reduce stress on our servicemembers and their
    families?
        General Bromberg. Overall the Army is meeting its operational
    tempo, with the exception of the Army Reserve. The Active component
    goal is a ratio of 1:2 (time deployed vs. time home). The Active
    component is exceeding this goal with a ratio of 1:2.46. The Army
    National Guard is achieving the goal of 1:4 (time deployed vs. time
    home). The Army Reserve is continuing to improve and currently at a
    ratio of 1:3.5.
        Admiral Van Buskirk. Current Navy individual personnel tempo
    (ITEMPO) reporting is effective and we remain focused on reporting
    compliance and accuracy. In April 2013, Navy achieved 94.8 percent
    reporting compliance which included 98.9 percent of all Navy personnel
    represented in compliant activities. Additionally, we are in the
    process of improving our capability to analyze ITEMPO data for use in
    assessing ITEMPO days away from homeport and its relationship to stress
    on the force.
        General Milstead. For individual marines, we actually report and
    track Personnel Tempo/Deployment Tempo, for how much time marines are
    deployed or away from home. Our reporting is consistent with OSD's
    guidance on same. Our reporting indicates that generally both Active
    component and Reserve component marines are deploying for shorter
    durations and/or less frequently, which we expect will reduce the
    stress on our marines and their families.
        General Jones. The Air Force is successfully meeting our
    operational requirements. We have approximately 186,000 Active Duty
    airmen supporting combatant commander operations. However, some airmen
    have a higher Operational Tempo (OPTEMPO) than others. We assess
    OPTEMPO within our career field stress assessment. Approximately 10
    percent of our Active-Duty Force resides in stressed career fields, of
    which, OPTEMPO is a contributing factor. The Air Force prioritizes
    force management policy and programs, including bonuses, to maintain
    sufficient numbers of personnel in critical career fields to reduce
    stress and meet operational requirements. Additionally, we provide
    airmen a predictive deployment schedule, via the Air Expeditionary
    Force construct, so they can plan and prepare their families for their
    deployments.

                         LANGUAGE AND CULTURE TRAINING

        21. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, military members with language and culture training
    are essential to a U.S. global force. The NDAA for Fiscal Year 2013
    authorized the Secretary of Defense to transform the National Language
    Service Corps (NLSC) from a pilot program to a permanent program, and
    also to enhance the ability of our Federal agencies to hire people with
    strategic foreign language skills and as National Security Education
    Program awardees. What are your Services' goals with respect to the
    capabilities represented by the NLSC?
        Mr. Lamont. The Army continues to support and leverage the
    capabilities provided by the NLSC under the NDAA. Currently, the Army
    works with NLSC's recruiters to hire language proficient soldiers
    departing the Army to work at NLSC. We display NLSC advertisements on
    various portals targeting language qualified soldiers and civilians.
    Additionally, the NLSC provides an overview of their organizational
    opportunities to our 09L soldiers (native speakers of foreign languages
    who serve as interpreters) planning to depart military service. The
    Army is very active in supporting this program's growth. In addition,
    the Army leverages NLSC capabilities to fill short-term foreign
    language requirements that cannot be met within. Some of these
    categories include: role players, interpretation, translation and
    analysis, training (instruction), and administrative language support
    services.
        In order to respond to increasing demands for foreign language
    skills, the NLSC plans to increase membership from the current 4,200 to
    at least 5,500 personnel along with the number of languages/dialects
    represented is expected to increase from 283 to at least 350 by fiscal
    year 2015. The Army continues to work with the Secretary of Defense to
    more actively expand the NLSC membership, reaching out to groups in
    which the government has already invested along with leveraging the
    capabilities of this organization
        Mr. Garcia. Marine Corps - The Marine Corps recognizes the valuable
    service provided by the NLSC. In fact, Marine units have employed NLSC
    services on several occasions for operational and exercise support and
    foreign language instruction. As a matter of practice, however, the
    Marine Corps will seek assistance from the NLSC only after all internal
    Marine Corps options to satisfy language requirements could not be met
    through organic Service capabilities. For this reason, the Marine Corps
    has not set any specific parameters or goals for the employment of NLSC
    services. Rather, the Marine Corps requests NLSC assistance on an ad
    hoc basis similar to other language resources including the National
    Virtual Translation Center. The Marine Corps has implemented several
    programs to increase foreign language capacity and capability within
    its uniformed and civilian workforce, to include the Regional, Culture
    and Language Familiarization program for career marines; expanding the
    Foreign Area Officer program; and the creation of a Foreign Area
    Specialist program for senior enlisted marines.
        Navy - Navy recognizes the broad range of language and culture
    capabilities provided by the NLSC, and finds particular value in their
    ability to satisfy short notice requirements. Navy has utilized NLSC
    resources for both standard fleet operations and humanitarian missions.
    NLSC personnel have served as interpreters/translators for
    multinational maritime exercises when service personnel either were not
    available or non-existent for the task.
        In the future, Navy plans to formalize its process for filling ad
    hoc requests for language, regional expertise, and culture (LREC)
    support. To that end, and similar to Navy's employment of the National
    Virtual Translation Center, the NLSC will be included as an option when
    organic assets are unavailable or nonexistent. Therefore, the intent is
    not to establish explicit, quantifiable goals for usage. Navy will
    continue to train its own assets based on identified, validated, and
    documented requirements. For ad hoc LREC support requests, Navy will
    try to use sailors first and will consider other government options
    afterwards. Navy is pursuing several initiatives to enhance LREC
    capability within its force, but it is neither reasonable nor fiscally
    sound to invest in LREC training and sustainment to meet all
    contingency needs. Navy plans to coordinate as necessary with the
    Defense Language and National Security Education Office on any
    policies, procedures, or business practices to improve or better
    utilize the NLSC.
        Mr. Ginsberg. The purpose of the NLSC is to have a pool of
    language-capable individuals available to support sudden and short-term
    requirements. The NLSC construct is not currently used to support the
    type of exercises and operations conducted by the Air Force. Rather,
    the Air Force meets its language needs by deliberately developing
    individuals to meet its requirements. The Air Force intends to
    encourage separating and retiring airmen who have existing language
    skills to join the NLSC.

                           MARKETING AND ADVERTISING

        22. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, one effect of sequestration was that DOD
    quickly moved to end service advertising, marketing, and outreach
    programs that have been used to aid in recruiting. What is your
    assessment of the value of funding these programs, and the projected
    impact to recruiting if these programs are not funded?
        General Bromberg. It is essential that the Army conduct a vigorous
    and sustained marketing and advertising program in order to recruit a
    quality force capable of handling 21st century mission challenges.
        Admiral Van Buskirk. Navy currently has an annual accession mission
    of over 45,000 officer and enlisted sailors with potential recruits
    dispersed throughout the country. Recruiting quality individuals is the
    first step in ensuring that we have intelligent, capable, high quality
    people in the future force. Paid advertising, marketing and outreach
    are critical components in our efforts to attain the proper recruiting
    mix. Working together to inform the American public of opportunities
    available in the Navy, they collectively communicate efficient and
    effective messages that favorably impact recruiting mission and
    contribute to end strength attainment in support of national security
    objectives. Further reduction in marketing, advertising, and outreach
    efforts and resourcing, would clearly present challenges to future
    accession goal attainment.
        Specific impacts to recruiting are measured through leads and
    contracts with direct linkage to advertising efforts. In fiscal year
    2008, 44.7 percent of Navy accessions (20,218 contracts) originated
    from advertising efforts. The national unemployment rate at that time
    was 5.2 percent. As the unemployment rate declines, recruiters will
    need more assistance from advertising-generated leads to meet accession
    goals. With current levels of unemployment, 22.64 percent of contracts
    (9,810) come from advertising. These are direct effects and do not
    account for the indirect effects that advertising has on influencing
    and reinforcing the joining behavior of our market.
        Outreach programs, including Navy Weeks and Blue Angel appearances,
    allow the American public to directly interact with Navy
    representatives and afford them opportunities to observe examples of
    the technology and equipment sailors use in the daily performance of
    their duties around the world. These interactions prompt them to
    consider military service.
        The value in funding paid advertising and participating in outreach
    events is derived from end strength requirements. Joint Advertising and
    Marketing Research Studies (JAMRS) indicate that 53 percent of armed
    forces accessions come from youth who, when asked if they would
    consider joining the military, had previously indicated ``definitely
    not'' or ``probably not''. Additionally, approximately 74 percent of
    high quality applicants indicated they initiated first contact with a
    recruiter. Advertising, marketing, and outreach events serve to drive
    these initial interactions by creating awareness and a positive image
    of the Navy and its career opportunities.
        General Milstead. In fiscal year 2012, 99.9 percent of Marine
    recruits were high school graduates and 74.8 percent scored in the
    upper half of the written military entrance exam. The quality of our
    applicants is higher than ever before. A critical requirement to
    continued success is our recruit advertising program. Our advertising
    program is used both strategically and tactically to deliver branded
    communications to support marines on recruiting duty, generate leads
    and create positive awareness that engages our prospect and influencer
    audiences. In total, recruiting a quality and representative force
    costs less than 1 percent of the Marine Corps' overall budget.
    Recruiter success is inextricably linked to operational and advertising
    support. Advertising creates awareness and drives consideration to
    serve in the military--it produces `leads'. Advertising leads enable
    recruiters to efficiently focus their prospecting activities.
    Advertising dollars currently generate approximately 25 percent of all
    new contracts (enlisted) through numerous avenues, such as television
    commercials, enhanced area canvassing activities and social media
    outlets. A further loss of funding to advertising will ultimately lead
    to increased stress and reduced quality of life for Marine Corps
    recruiters most of whom currently work in excess of 60 hours per week.
    If advertising spending is cut back too much when recruiting is strong,
    potential long-term gain in awareness and propensity may be lost. The
    dramatic advertising cutbacks between 1986 and 1993 coincided with a
    considerable erosion of public awareness regarding military service.
        General Jones. The Air Force advertising, marketing, and outreach
    programs are a critical component to our mission--to attract the best
    and brightest youth of America. Reduced funding for these programs will
    jeopardize the Air Force's ability to meet career field and DOD quality
    requirements. Even though the Air Force has greatly benefited from
    historic highs in the quality of accessions in recent years, initial
    indicators are signaling a potential shrinking market for high quality
    recruits per JAMRS ``State of the Recruiting Market,'' briefing April
    2013. That same study indicates that 47 percent of new recruits were
    undecided about a career path and were influenced within a year of
    joining the Service. The Air Force must continue to strategically
    advertise, market, and maintain outreach programs to target the highest
    quality recruits and to convert applicants that are less propensed to
    serve.

                      INTEGRATED ELECTRONIC HEALTH RECORD

        23. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, DOD and VA have been working on an integrated
    electronic health record (EHR) for a number of years with very little
    progress being made towards a truly seamless transition of health
    information between the two Departments. In January 2013, VA decided to
    use VistA, its legacy system, as its core health record despite the
    findings of a recent study commissioned by the VA that identified many
    VistA deficiencies. We've been told that DOD has been evaluating
    existing solutions to determine the appropriate core health record to
    use. Has DOD coordinated its proposed EHR program with your Service?
        Mr. Lamont. Yes, the Army has coordinated with the Navy and Air
    Force in the review of the request for information submissions. This
    information was released to the public on February 8, 2013. Results and
    recommendations were briefed to DOD leadership and the three Service
    Deputy Surgeon Generals. Army functionals were active contributors in
    defining EHR Core capabilities.
        Mr. Garcia. Yes, DOD has coordinated with the Navy while analyzing
    and determining requirements for a proposed EHR program. We have
    participated in the review of the request for information submissions
    which were publicly released on 8 February 2013.
        Mr. Ginsberg. Yes, the Air Force (AF) Surgeon General Chief Medical
    Information Officer has been involved in the Analysis of Alternatives
    (AoA) between VistA and other commercial electronic health records.
    Additionally, the AF Deputy Surgeon General has been a regular
    participant in DOD and Veterans' Affairs meetings regarding validation
    of requirements and evaluation of solutions. The Deputy Surgeon General
    has kept me and the Surgeon General updated.

        24. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, how much will it cost for your Service to field a
    new EHR?
        Mr. Lamont. Specific dollar figures would be better obtained by DOD
    Cost Assessment and Program Evaluation as the numbers are acquisition
    sensitive.
        Mr. Garcia. The Services do not provide funding to this effort as
    all funding is centrally managed through the DOD/VA Interagency Program
    Office (IPO), the organization responsible for oversight and
    coordination of DOD/VA information-sharing initiatives. The Navy
    remains focused on tri-service planning for the joint deployment of an
    integrated EHR which achieves maximum economies of scale and
    standardization of the business process of healthcare among the three
    Services.
        Mr. Ginsberg. DOD's electronic health record cost estimates must be
    redetermined after the Secretary of Defense evaluates the results of
    the AoA. Prior cost estimates were based on a previous DOD and VA
    strategy that was determined by both Departments to be infeasible.

        25. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, what impact do you anticipate for your Services'
    medical readiness?
        Mr. Lamont. The integrated EHR provides a platform for a lifetime
    electronic health record from the time of accessions through a soldiers
    service and is a key enabler for seamless transition to the Department
    of Veterans' Affairs.
        Deploying the integrated EHR will provide improved access to
    medical records data and improve readiness capabilities, such as
    improved immunization tracking. The integrated EHR will improve medical
    records extraction to support the IDES process. The integrated EHR must
    have full compatibility with readiness data systems for all Services to
    enable crucial bi-directional data exchange. Current systems require
    duplicate efforts that introduce errors and gaps.
        Mr. Garcia. A new integrated EHR should enhance the ability to
    assess medical readiness for our sailors and marines. While information
    can currently be viewed via the Bi-directional Health Information
    Exchange, a single integrated EHR will afford expanded access to the
    source of that health information; permitting quicker assessment and
    care coordination among healthcare providers.
        Mr. Ginsberg. With a new electronic health record, data and
    documentation pertaining to individual medical readiness will be better
    integrated into clinical processes, enhancing our ability to provide
    timely health measures to sustain the readiness of the servicemembers
    under our care.

        26. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, do you believe the EHR must be deployable?
        Mr. Lamont. Yes, it is essential that the integrated EHR be
    deployable to support soldiers deployed to theaters of operation or
    contingency operations. A deployable integrated EHR will allow data
    input and visibility throughout the continuum of care from point of
    injury to DOD medical treatment facilities to VA treatment facilities.
    Documenting care in the deployed environment will enhance the accuracy
    of a soldier's medical history, which could affect future disability
    assessments and benefits determination.
        Documenting pre-hospitalization care and assessment provides
    valuable retrospective data to conduct research to improve patient care
    to address preventable causes of battlefield death. Finally, a
    deployable integrated EHR also enables deployed providers to access the
    medical history of the injured soldiers, thereby improving the quality
    of care.
        Mr. Garcia. It is absolutely essential that the IEHR be deployable
    to support marines in the field and sailors at sea since a vast
    majority of marines and sailors spend significant portions of their
    careers deployed away from home station. A key feature of the
    integrated EHR is the ability to continue to document medical care in
    times of low or no network connectivity, and then synchronize data once
    a connection is restored so it is available for future use. To that
    end, the integrated EHR will provide one system permitting both the
    inputting of data and the visibility of that data throughout the
    continuum of care--from the initial point of injury through the
    Military Treatment Facility and on to the VA treatment facility.
        Documenting healthcare in the deployed environment will enhance the
    accuracy of the medical history for our sailors and marines, which is
    key to ensuring they receive the right healthcare at the right time.
    Well documented healthcare is also critical for use in determining
    future disability assessments and benefits determination.
        Mr. Ginsberg. In the Initial Capability Document approved by the
    Joint Requirements Oversight Council, the electronic health record
    should be deployable in theater and support the mobility requirements
    for en route care. The solution would eliminate the need for three
    separate theater electronic health record solutions and enhance
    continuity of care, even in ``low-communication/no-communication''
    environments.

        27. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, what input has each Service had on the EHR program?
        Mr. Lamont. Army Medicine as well as the Navy Bureau of Medicine
    and Air Force Surgeon General have been involved in the integrated EHR
    program from the beginning. Army's contributions to the integrated EHR
    program include: requirements generation and support with Clinical
    Informatics, Capability Management, and Enterprise Architecture assets.
    The Army Surgeon General is a non-voting member of the Interagency
    Program Office Advisory Board, which is responsible for integrated EHR
    governance.
        Mr. Garcia. Navy Medicine is actively engaged and currently
    collaborating with our Army and Air Force counterparts, as well the
    Veterans Health Administration. The Navy has provided subject matter
    experts to work on the Capability Integrated Project Teams, Clinical
    Informatics Teams and Enterprise Architecture Teams as well as staffing
    to assist with the requirements generation process. The Navy Surgeon
    General is also a non-voting member of the DOD Integrated Program
    Office Advisory Board which is responsible for integrated EHR
    governance.
        Mr. Ginsberg. The Air Force (AF) Surgeon General Chief Medical
    Information Officer has been involved in the AoA between VistA and
    other commercial electronic health records. Additionally, the AF Deputy
    Surgeon General has been a regular participant in DOD and Veterans'
    Affairs meetings regarding validation of requirements and evaluation of
    solutions. The Air Force Medical Service and AF Communications
    communities have provided more than 100 clinical subject matter experts
    for the functional and technical requirements process.

                         BENEFITS FOR SAME-SEX PARTNERS

        28. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, recently, former Secretary of Defense Panetta
    announced that DOD will expand benefits to unmarried same-sex domestic
    partners who declare a committed relationship, but will not extend
    those same benefits to unmarried heterosexual domestic partners. Do you
    agree with former Secretary Panetta, that when it comes to benefits
    paid for by hard-working American taxpayers, that DOD should favor
    same-sex domestic partners over heterosexual partners?
        Mr. Lamont. We support former Secretary Panetta's decision.
    Heterosexual couples, if they so choose, have the opportunity in every
    State to get married; currently, same-sex couples do not have this
    opportunity. The steps announced today are an effort to close the
    equity gap for benefits, consistent with current law. Once implemented,
    same sex domestic partners will be required to sign DD Form 683,
    (Declaration of Partnership) attesting to the committed relationship.
    Similarly, a DD Form 684, (Dissolution of Partnership) will be required
    if the relationship ends. Soldiers must notify their personnel official
    within 30 days of the dissolution and will be required to wait 6 months
    before entering attesting to another relationship.
        Mr. Garcia. As an assistant secretary of a military department, I
    am committed to supporting the requirements and priorities as
    determined by the Secretary of Defense. Many benefits for families in
    same-sex relationships remain restricted by law. Heterosexual couples,
    in contrast, have the option to marry and enjoy the full range of
    benefits. I am committed to working with OSD to ensure fairness and
    equal treatment and to taking care of all of our servicemembers and
    their families to the extent allowable under law.
        Mr. Ginsberg. Heterosexual couples, if they so choose, have the
    opportunity in every State to get married, and their marriage is
    recognized in Federal law. Currently, same-sex couples do not have this
    opportunity (per Defense of Marriage Act), we can only recognize
    marriage between a man and a woman. The extension of benefits to same-
    sex domestic partners of military members closes the gap in equity for
    benefits consistent with current law.

        29. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, was your Service consulted to determine the cost
    impact of extending these benefits to same sex partners?
        Mr. Lamont. The respective Services were not consulted directly.
    However, the Joint Benefits Review Working Group, which includes
    service representatives, considered cost impact as part of the overall
    analysis and determined that the cost was negligible.
        Mr. Garcia. Yes. The Department of the Navy was included among the
    representatives in the DOD working group established by the Secretary
    of Defense which, among other things, determined the cost impact of
    extending these benefits to same-sex partners.
        Mr. Ginsberg. Benefit subject-matter experts were consulted during
    the OSD-led Joint Benefits Review working group and the Air Force
    provided input via this working group and various other Senior Leader
    briefings and discussions leading up to the announcement of benefits
    extension. From a fiscal perspective, the benefits that are being
    extended are of negligible cost. Some are cost neutral and self-
    sustaining such as MWR Programs, and Commissary and Exchange
    privileges.

                                TOTAL FORCE MIX

        30. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, General Dempsey said, in his testimony
    last week, that DOD needs flexibility to keep the force in balance and,
    that everything must be ``on the table'' including the mix among
    Active, Reserve, and National Guard units. In view of the heavy wartime
    demand on the forces including the Reserve and Guard, what do you
    envision as a viable option to change that force mix for your Service?
        General Bromberg. The Army remains committed to the Army Total
    Force Policy. The Active Army, the Army National Guard, and the Army
    Reserve each serve vital roles in our National Military Strategy, and
    it is imperative that we use each component's strengths to best
    advantage to accomplish all of the Army's missions. We will carefully
    review force structure and mix changes as we gain more clarity on a
    future budget.
        Admiral Van Buskirk. Navy conducts a comprehensive review every
    programming cycle after reviewing all applicable strategies (e.g.,
    Defense Strategic Guidance and Cooperative Strategy for the 21st
    Century Sea Power). Our program, as submitted, provides Navy with the
    optimal Active and Reserve component mix, by which Navy can surge,
    regenerate and flex capabilities needed for current operations and
    future contingencies. This optimal mix is predicated on the assumption
    that the Overseas Contingency Operations (OCO) Individual Augmentation
    demand for Navy personnel will continue to decline and that the Reserve
    component will continue to have the capacity to source those
    requirements. This strategy enables the active component to man our
    force structure units (i.e., ships, submarines, aviation squadrons, and
    other operational units) and provide forward presence required by the
    ongoing rebalance to the Asia-Pacific region.
        Navy has leveraged some of the authorities enacted in the NDAA for
    Fiscal Year 2011, to more fully utilize the Reserve component to
    increase readiness and operational capacity. Specifically, title 10
    U.S.C., sections 12304a and 12304b, allow involuntary access to Reserve
    component personnel in response to a major disaster or emergency
    (12304a) or to meet preplanned missions in support of combatant
    commanders (12304b). Trained and qualified reservists provide increased
    capability and capacity to meet strategic Navy requirements and enable
    us to transition to a force that can seamlessly integrate into an
    active unit or replace an entire active unit to perform routine
    operational missions. Additionally, we have successfully implemented
    continuum of service policies by which Reserve enlisted sailors have
    options for voluntary recall to serve on active duty for up to 3 years
    or to return to the Active component and resign their Reserve
    contracts. As we continue progressing from a strategic reserve to an
    operational reserve, opportunities for further adjustments in the
    Active/Reserve Force mix may become increasingly evident.
        General Milstead. While the Marine Corps is reducing the end
    strength of the Active component from 202,000 to approximately 182,100
    for the post Operation Enduring Freedom environment, we do not plan to
    draw down its Reserve end strength. We believe the proportion of 39,600
    reservists and 182,100 Active Duty marines is the right level for the
    foreseeable future.
        General Jones. Total Force Task Force was formed to examine the
    operational impacts and cost factors associated with various approaches
    to total force integration. By identifying and implementing the optimum
    force mix of an Active, Reserve, and Guard component, we should be able
    to maximize operational effectiveness, better optimize total force
    efficiencies; and provide better stability over time to our Guard
    units, States, and Reserve organizations.

                             MILITARY COMPENSATION

        31. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, our Nations' historical experience of pursuing cost
    savings by cutting military compensation has demonstrated that periods
    of designed reduction in overall compensation levels resulted in
    retention problems. And those retention problems, especially in the
    context of generally improving civilian employment opportunities, meant
    Congress was required to come back and authorize catch up increases to
    help us keep the highly trained talents and skills that we need. What
    is your assessment of the impact of the President's proposed slowdown
    in military compensation on retention and recruiting in your Service?
        Mr. Lamont. The Army believes that a slowdown in the increase in
    military compensation can be accomplished without sacrificing recruit
    quality or member retention. Conditions appear favorable for slowing
    the increase in military pay. Recruiting quantity is being met and
    recruit quality is high; retention goals are typically being exceeded.
    Any unanticipated changes in circumstances, such as a significant
    improvement in civilian employment opportunities, could negatively
    affect Army retention and recruiting. However, at present and in the
    anticipated future environment, the Army does not believe that a
    slowdown in the increase in military compensation will adversely affect
    its ability to recruit and retain an adequate number of high-quality
    personnel.
        Mr. Garcia. Military compensation is highly competitive today, and
    the President's proposed slowdown in base pay is not likely to cause
    recruiting or retention problems in the near term provided recruiting
    bonuses and retention pays are preserved. The most recent Quadrennial
    Review of Military Compensation reported enlisted members were paid at
    the 90th percentile and officers were paid at the 83rd percentile
    relative to private sector counterparts with comparable education and
    experience. Just 13 years ago, both officer and enlisted personnel were
    below the 70th percentile benchmark, and DOD made deliberate
    investments in military pay to meet that threshold. In the current
    fiscal environment, there is room to slow down base pay growth, thereby
    helping to mitigate further cuts to force structure, readiness and
    modernization.
        Mr. Ginsberg. At this time, the Air Force does not foresee
    significant challenges to our recruiting and retention efforts as a
    result of the proposed slowdown in military compensation. Our Force
    Management program is a tailored multi-year strategy focused on sizing
    and shaping the total force with the right balance of skills to meet
    current and emerging joint mission demands. The Air Force's strategy
    over the past few years has been aggressive, allowing us to meet
    congressionally mandated end strength requirements and maintain a high
    quality force by leveraging voluntary programs first, offering
    incentive programs where needed, and implementing involuntary actions
    when required. Due to the expected improvements in the economy and the
    importance our airmen place on overall compensation, our recruiting and
    retention will be increasingly challenged, particularly as the Air
    Force addresses the need for its highly technically-skilled force.
    These compensation challenges may require increased recruiting and
    retention incentives for our future force.

                            FAMILY SUPPORT PROGRAMS

        32. Senator Graham. Secretary Lamont, Secretary Garcia, and
    Secretary Ginsberg, General Dempsey testified last week that
    unsustainable costs and smaller budgets require DOD to examine every
    warrior and family support program to make sure we are getting the best
    return on our investment. How do you assess the investments our Nation
    has already made in family support programs, and suicide prevention in
    particular, in moving the needle with demonstrable positive return on
    investment?
        Mr. Lamont. In late 2011, the Army adopted a portfolio approach to
    managing warrior and family support programs. This portfolio approach
    promotes a shift in the governance focus from individual program
    proponents to the entire group of related programs such as Suicide
    Prevention. In 2012, the Army piloted its first enterprise evaluation
    to assess how programs within the Health Promotion and Risk Reduction
    Portfolio contribute to specific strategic outcomes (Help-Seeking, Risk
    Reduction, Transition, and Resilience and Coping). The findings of this
    and future evaluations will focus on how programs could increase their
    ability to achieve the Army's strategic outcomes and improve our return
    on investment.
        Mr. Garcia. The Navy and Marine Corps continually evaluate the
    effectiveness of their programs to ensure the needs of our sailors,
    marines, and their families are being met. Assessment and research
    efforts help identify program deficiencies, program best practices and
    satisfaction. This insight enables the Department of the Navy to adjust
    internal programming and accurately direct external support to best
    serve sailors, marines, and their families.
        The Navy actively participates in the Defense Suicide Prevention
    Office's (DSPO) program evaluation initiative. DSPO is conducting an
    analysis of the Services and the OSD Suicide Prevention programs in
    order to align and integrate programs, resources, policy, and strategy.
    The analytical method being utilized has the following three
    components:

        (1)  Strategic Coverage: The Navy is supporting efforts to align
    and analyze suicide prevention programs to assess whether there are
    gaps in addressing the overall OSD suicide prevention strategic
    objectives.
        (2)  Resource Allocation & Analysis: OSD and the Services are
    conducting a review of Suicide Prevention Programs to determine full
    costing of requirements/level of effort, funding amounts, and potential
    shortfalls. This review includes examining program duplication and AoA
    in an effort to reduce costs without significant negative impact.
        (3)  Program/Portfolio Effectiveness: The DSPO recently completed
    an effort to establish a common framework and understanding of measures
    of effectiveness (MOEs), and ground rules, for Suicide Prevention
    Programs. The Services and OSD are examining measures of effectiveness
    and performance measures. This analysis will be used to realign
    existing program resources and ensure that highly ranked suicide
    prevention programs are implemented across all of the military
    Services,

        Mr. Ginsberg. We have multiple forums that enable us to monitor the
    delivery of family support programs. Within our Airman and Family
    Readiness Centers, we have a very robust computer management system
    that provides us with real time data for our supported populations-
    service codes are used to record the type of support sought (e.g.,
    financial management) and the system allows the provider to make
    notations of the visits. Additionally, the Air Force conducts biennial
    community assessments, through the Air Force Surgeon General, that
    provide valuable data on our ability to meet individual needs, and also
    collects information regarding behaviors that may place an individual
    at risk. Further, the Air Force Community Action Information Board
    (CAIB), convened at the installations, major commands, and Headquarters
    Air Force, identifies community issues to emphasize the importance of
    taking care of airmen and their families. Since 1996, the CAIB process
    has focused extensively on monitoring, managing, and implementing
    suicide prevention best practices for use by commanders. Additionally,
    the CAIB provides detailed actions and discussions on sexual assault
    prevention, child and family maltreatment issues, and resilience. A
    significant outcome from the CAIB process has been the development and
    implementation of the Comprehensive Airman Fitness concept that
    concentrates exclusively on developing our airmen and families to
    become more resilient and better prepared to meet the unique challenges
    of military service.

                           TUITION ASSISTANCE PROGRAM

        33. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, I am pleased to learn that DOD has now
    reinstated the Tuition Assistance program, previously cancelled by the
    Army, Marine Corps, and Air Force in response to the administration's
    failure to plan for sequestration. How does Tuition Assistance enable
    your Active-Duty Forces to meet the professional development
    requirements described by General Dempsey to establish the Profession
    of Arms as the foundation for the Joint Force?
        General Bromberg. Tuition Assistance supports soldiers in
    completion of classes leading to Associate's, Bachelor's and Master's
    degrees as well as certificate programs. This off-duty voluntary
    education program develops critical and adaptive thinking skills
    soldiers and leaders need to make informed decisions. These skill sets
    allow the Army to learn faster and adapt more quickly than its
    adversaries and inable, necessary skills to meet the challenges of
    today's operational environment.
        Admiral Van Buskirk. Education is a critical strategic investment
    that enhances the overall effectiveness of our force. All assignments
    benefit from well-developed skills in critical thinking, problem
    solving in complex environments, and effective communications. Navy's
    unwavering support of the Tuition Assistance program, along with our
    numerous other educational programs and opportunities, support
    development of these skills and attributes across the force. Education
    becomes an asymmetric advantage in our ability to develop leaders who
    are able to innovate, adapt, and succeed in the planning and delivering
    of maritime joint warfighting and support capabilities.
        General Milstead. The Marine Corps' tuition assistance program is
    focused on providing exposure to higher education for our marines. We
    expose marines to the critical thinking, analysis and problem-solving
    skills that one learns through higher education. While we know that
    most of our marines will leave the Corps after their first enlistment,
    we value involving them in higher education for two reasons. First, if
    they stay marine and continue to pursue higher education, they will
    develop the cognitive skills required of thinking institutions, as
    described by General Dempsey. Second, if those marines leave the Corps
    and re-enter civilian life, they return prepared to pursue higher
    education, develop similar skills, and contribute to the advancement of
    society. Either way, our Nation improves its thinking and problem
    solving capacity.
        General Jones. Military Tuition Assistance provides the financial
    means for our airmen to pursue higher education. In turn, higher
    education provides the educational background crucial in developing the
    critical thinking skills needed for practitioners of the profession of
    arms. This means our airmen are more able to work in the dynamic
    climate of today's conflicts. Additionally, higher education allows
    airmen to develop the critical ability to make connections between
    seemingly unrelated events or information and develop holistic
    solutions quickly and accurately. Military tuition assistance will
    continue to be integral to the recruiting, retention and readiness of
    our airmen. However, competing funding requirements will necessitate
    changes in fiscal year 2014 and beyond to ensure the financial health
    of the program.

                               SUICIDE PREVENTION

        34. Senator Graham. General Bromberg, Admiral Van Buskirk, General
    Milstead, and General Jones, our force is exceptionally well-trained on
    suicide awareness and prevention, and yet we still experience the
    tragedy of suicide at an unacceptably high rate. What is your
    assessment on whether the current level of training and leadership
    engagement is sufficient or whether it has inadvertently created a
    climate in which some vulnerable individuals may have contemplated
    suicide because we talk about it so much?
        General Bromberg. We continually assess our training for
    effectiveness. The Ready and Resilience Campaign requires an assessment
    of programs that support the campaign. The Army has not completed an
    assessment on the correlation of suicide prevention training and the
    incidences of suicides overall. Suicides are complex issues with a
    multitude of variables influencing each. The Army focus on identifying
    the early signs of suicidal behaviors and intervention skills remains
    the best option in attempting to reduce the number of suicides. There
    is no known direct correlation that the increase in suicide prevention
    training has created a higher propensity of soldiers to consider
    suicide as a viable option to their problems.
        Admiral Van Buskirk. The U.S. Surgeon General's 2012 National
    Strategy for Suicide Prevention recommends emphasis on resiliency in
    training, messaging and communications, as well as clinical practice
    guidelines. Navy's operational stress control training teaches skills
    that build resilience, navigate stress and identify resources that
    reduce risk of crises. By helping sailors develop life skills and
    promote comprehensive wellness--physical health, nutrition, fitness,
    proper rest, sound financial decisions, strong relationships and
    spirituality--suicide risk factors are reduced without explicitly
    discussing the subject. Navy's training is designed to foster
    meaningful discussion of stress and proactive ways to mitigate it and
    instill awareness of stress injury warning signs for those having
    trouble navigating through challenges.
        Our strategic and tactical communications products provide best
    practices on how to discuss stress injuries that avoid risk of suicide.
    Adapted from the national suicide prevention resource center's
    recommendations, these Navy branded products are not only useful to
    guide training, but encourage leaders to engage in meaningful dialogue
    with their sailors, reinforcing the message that ``It's okay to speak
    up when you're down.'' Finally, unit leadership engagement is critical
    to enable sailors to move beyond decades of negative psychological
    health perceptions and barriers, and to seek the help needed to remain
    resilient and operationally ready. Navy is confident that both the
    training strategy and leadership commitment to engage all aspects of
    suicide prevention will provide sailors and their families with the
    necessary tools to choose life.
        General Milstead. The Marine Corps continually evaluates the
    effectiveness of its suicide prevention training and makes periodic
    updates to incorporate the latest evidence-based practices. Our
    evaluation includes partnering with Federal agencies, academia and
    private industry in cooperation with Defense Centers of Excellence for
    Psychological Health and Traumatic Brain Injury to study the
    effectiveness of our suicide prevention training.
        To ensure that we do not inadvertently create a climate that talks
    about suicide too much, the Marine Corps adheres to the latest
    recommendations for reporting of suicide, which include offering hope
    and avoiding talks about suicide. We do not discuss suicide method,
    dramatic images, or act to glamorize a death. Discussing suicide
    carefully can correct myths and encourage those who are vulnerable or
    at risk to seek help.
        General Jones. The current level of training on suicide prevention
    for leaders in the Air Force is appropriate. Suicide is one of the most
    challenging issues Air Force leaders at all levels face. The Air Force
    Suicide Prevention Program (AFSPP) is an effective evidenced-based,
    leader-led, community program that relies on 11 overlapping elements.
    The core of these 11 Elements is leadership involvement.
        In 2011, as part of the Air Force response to the findings of the
    2010 Volpe report on suicide in the military and the RAND report, ``The
    War Within,'' enhancements were made to the 11 Elements of the AFSPP.
    One of the most critical enhancements was the development of a
    strategic communication plan to promote responsible reporting of deaths
    by suicide, encouraging help-seeking behaviors among all airmen, and
    removing barriers to seeking care. This was done to ensure that in our
    efforts to prevent suicide, the Air Force was not inadvertently
    promoting suicide. To that end, the Air Force Public Affairs Guidance
    (PAG) on Suicide Prevention was developed based on the World Health
    Organization's (WHO) ``Preventing Suicide: A Resource for Media
    Professionals.'' The Air Force PAG provides guidelines on crafting
    suicide prevention messaging, responsible reporting information on
    death by suicides, delivering strength-based messages, championing
    responsible help-seeking behaviors in airmen, and modeling healthy
    behaviors and choices throughout our wingman culture. This approach is
    mirrored in annual training for all airmen and frontline supervisor
    training for at-risk career fields. Another enhancement was the
    development and issuance of comprehensive post-suicide and post-
    suicide-attempt guidelines. These guidelines assist leaders in the
    critical time after a suicide attempt or the loss of an airman to
    suicide to appropriately support the bereaved and prevent additional
    suicides. Research shows that the time immediately following a death by
    suicide is a period of increased risk for friends, family, and co-
    workers of the deceased.
                                     ______

                 Questions Submitted by Senator Kelly A. Ayotte

                    INTEGRATED DISABILITY EVALUATION SYSTEM

        35. Senator Ayotte. Secretary Lamont and General Bromberg, what
    must be done to further reduce the time it takes for soldiers to
    progress through IDES?
        Mr. Lamont and General Bromberg. The Army remains committed to
    making this process more accessible to our soldiers and their families.
    Over the last year, the Army has devoted an extraordinary amount of
    time, attention, resources, and leadership to improve the Integrated
    Disability and Evaluation System. These include doubling the total
    number of personnel supporting IDES nationwide, establishing and
    enforcing Army-wide processing standards, placing a General Officer in
    charge of IDES overall, and establishing three Medical Evaluation Board
    remote operating locations to reduce the backlog of Reserve component
    soldiers. The results of those efforts are evident in our Medical
    Evaluation Board and PEB processing time metrics and will reflect in
    the average time for the entire process once the current backlog of
    cases have finished the process. However, this is still a very
    complicated process touching unit, personnel, medical, Veterans'
    Health, Veterans' Benefits, and finance systems. Short of complete
    overhaul of the system, we believe redesigning the existing process
    within the constraints of current statutes will only result in
    unnecessary turmoil and confusion and will likely result in another
    inefficient process.

        36. Senator Ayotte. Secretary Lamont and General Bromberg, what are
    the leading causes of delay?
        Mr. Lamont and General Bromberg. The Army is meeting OSD's
    processing goals in all subprocesses of the IDES with the exception of
    the VA Preliminary Rating Stage and VA Benefits Stage. Recent process
    improvements in the Army's Medical and PEB processes have increased the
    average monthly input of cases to the Disability Evaluation System
    Rating Activity Site, creating a backlog. Until this backlog is
    eliminated, the Army will have difficulty meeting OSD's 295-day goal.

                             INVOLUNTARY SEPARATION

        37. Senator Ayotte. Secretary Lamont and General Bromberg, in your
    prepared remarks, you state that the Army will ``need congressional
    support as it resorts to inevitable involuntary measures in the coming
    fiscal year.'' Why is it inevitable that the Army will need to utilize
    involuntary separations?
        Mr. Lamont and General Bromberg. The Army must retain the very best
    soldiers to continue to succeed in performing our critical missions on
    behalf of the Nation. Our modeling has shown that current volunteer
    separation rates will not achieve the required end strength goals.
    Experience from the 1990s drawdown showed us that incentivizing
    voluntary separations prevented the Army from keeping many of its
    promising members. In addition, funding to support financial incentives
    for voluntary separations would be pulled from critical programs
    already significantly impacted by sequestration adjustments. For
    today's force shaping efforts, the Army is committed to deciding who we
    will retain and who must transition by putting in place a robust
    program of transition assistance for servicemembers and families. This
    will ensure all who must separate will have the tools needed to care
    for family needs and transition their hard won skills into our Reserve
    components or to civilian careers.

        38. Senator Ayotte. Secretary Lamont and General Bromberg, what
    level of involuntary separations do you anticipate in the next fiscal
    year?
        Mr. Lamont and General Bromberg. Approximately 1,000 officers will
    need to be separated through promotion nonselection and Selective Early
    Retirement Board actions in fiscal year 2014.

        39. Senator Ayotte. Secretary Lamont and General Bromberg, in terms
    of grade, years of service, number of deployments, and military
    occupational specialty, what type of soldiers will be involuntarily
    separated in the coming fiscal year?
        Mr. Lamont and General Bromberg. The Army expects to separate
    enlisted soldiers in the ranks of private through sergeant major, and
    officers at the grades of captain through colonel. The majority of the
    members separating will have deployed and will span a range of
    specialties. We anticipate that many of these soldiers will be eligible
    to apply for Temporary Early Retirement Authority or regular
    retirement.

        40. Senator Ayotte. Secretary Lamont, General Odierno testified
    that if sequestration continues, the Army may have to reduce at least
    100,000 additional personnel. During last year's subcommittee hearing,
    you said that the Army may have to involuntarily separate as many as
    24,000 enlisted soldiers and up to 5,000 officers. Has your estimation
    changed or are those the numbers we are still looking at in terms of
    involuntary separation?
        Mr. Lamont. For the Army to achieve an end strength of 490,000, we
    expect to have to require the involuntary separations of approximately
    6,500 officers and just under 6,000 enlisted over the period between
    today and fiscal year 2017. If sequestration remains in place, those
    numbers would have to be increased based on any additional end strength
    reductions required.

        41. Senator Ayotte. Secretary Lamont, consistent with current law,
    what is the approximate number of anticipated involuntary separations
    if sequestration continues until 2021?
        Mr. Lamont. The Army has not completed its analysis of
    sequestration impacts on the force. It would be imprudent to provide
    any numbers at this time.

        42. Senator Ayotte. Secretary Lamont, will the majority of
    involuntarily separated soldiers be retirement eligible?
        Mr. Lamont. Yes. Since Temporary Early Retirement Authority is
    available, we anticipate that the majority of our separating soldiers
    will qualify for a retirement pension and benefits.

                            REDUCED RECRUITING POOL

        43. Senator Ayotte. Secretary Lamont, Secretary Garcia, Secretary
    Ginsberg, General Bromberg, Admiral Van Buskirk, General Milstead, and
    General Jones, in Secretary Lamont's and General Bromberg's prepared
    remarks, they stated that ``recruiting is expected to be more difficult
    in fiscal year 2014.'' You mention that ``one in four 17-& 24-year-olds
    are eligible to serve in the Army without a waiver''. You also state
    that ``One in five youths age 12-19 are currently overweight, compared
    to 1 in 20 in the 1960s, and this trend is projected to grow to one in
    four by 2015.'' From a broad, national security perspective, what
    concerns, if any, do you have regarding a declining pool of eligible
    recruits?
        Mr. Lamont and General Bromberg. A declining pool of eligible
    recruits is a national security concern because it impacts the ability
    to field a quality, and diverse, All- Volunteer Force. This directly
    impacts readiness. While beneficial to the country, the steadily
    improving economic environment compounds the problem of the declining
    pool and adds to today's recruiting challenge. The Army has the mission
    to recruit over 100,000 eligible and qualified young men and women
    across all three of its components each year. The Army competes for
    these qualified youth with the other Services as well as colleges,
    universities, and industry. Of those who are eligible, only a small
    portion (8 percent) is interested in joining the Army. In order to
    convince this limited pool of the value of Army service over the other
    options available to them, Army marketing must be sufficiently
    resourced.
        Mr. Garcia and Admiral Van Buskirk. Navy is concerned about the
    trends, but has no concern from a broad, national security perspective,
    as the remaining Qualified Military Available (QMA) pool is projected
    to remain relatively stable. QMA is the official DOD metric for
    eligibility. Based on a fall 2012 assessment by OSD JAMRS, the high
    quality, eligible, and propensed, target market is estimated at
    approximately 529,500, which will meet the DOD accessions requirement.
    Navy will meet accessions requirements in the foreseeable future
    without relaxing accessions standards.
        Mr. Ginsberg and General Jones. The Air Force role in national
    security requires us to carry out activities conducted by the brightest
    and most capable airmen and our ability to seek out and recruit these
    individuals is critical to our success. A declining recruiting pool
    reduces the Air Force's ability to find the diverse mix of applicants
    to sustain our highly technical career fields. Based on current
    worldwide trends and threats, the Air Force projects increased
    requirements in career fields such as Cyber. These technical
    specialties depend on our ability to provide sufficient numbers of
    qualified recruits to sustain these career fields over the course of a
    20- to 30-year career.
        General Milstead. The pool of highly qualified eligible recruits
    has been declining for several years now and shows no sign of improving
    in the near future. The Marine Corps has been proactive in addressing
    this concern. The backbone of the Marine Corps' recruiting effort is
    the High School and Community College program in which we focus our
    recruiters' efforts on the most qualified youth; although qualified
    prospect numbers are diminishing they are presently adequate. Access to
    high schools and college campuses is critical to our recruiters being
    able to meet face-to-face with quality applicants. With about 75
    percent of the market being unqualified for military service, recruiter
    access to these educational institutions is imperative. Adequately
    funding our recruiting efforts, specifically advertising and personnel
    structure, will enable the Marine Corps to avoid mission failure in the
    coming years.

        44. Senator Ayotte. Secretary Lamont, Secretary Garcia, Secretary
    Ginsberg, General Bromberg, Admiral Van Buskirk, General Milstead, and
    General Jones, is the declining recruit pool a long-term trend we
    should be concerned about?
        Mr. Lamont and General Bromberg. Yes, the declining long-term trend
    of young Americans who are eligible to serve in the Army is a concern.
    The United States is facing a national security challenge--not only a
    military recruiting problem. Recruiting is expected to be more
    challenging in fiscal year 2014; the Army and the Nation still face
    challenges such as rising obesity rates and decreasing high school
    graduation rates as we recruit the All-Volunteer Force. Today, fewer
    than one in four 17- to 24-year-olds are eligible to serve in the Army.
    More than 20 percent of high school students fail to graduate and one
    in five youths, 12-19 years old, are currently overweight. This trend
    is projected to grow to one in four by 2015. Recruiting soldiers to
    meet the challenges of the 21st century will prove increasingly
    difficult due to these changing U.S. demographics. Trends such as
    increased requirements for technological proficiency, increasing
    obesity and a reduced interest in military service not only limit the
    recruiting population, but potentially prevent some of the best and
    brightest from serving in our ranks and benefitting from an Army Strong
    foundation. The Army requires quality prospects that can adapt and
    operate in complex environments; the declining recruit pool is
    concerning as it may impact future capabilities.
        Mr. Garcia and Admiral Van Buskirk. Navy is concerned about the
    trend in obesity, increase in substance abuse, and the general lack of
    military awareness; however, analysis of the data indicates that the
    recruit pool is relatively stable through 2020. The size of the age 17-
    24 youth population is projected to increase between 2020 and 2030.
    Analysis of OSD JAMRS data suggests that, even with QMA factors applied
    to gross census numbers, the recruit pool remains large when compared
    with the projected number of DOD annual accessions of approximately
    150,000; therefore, it is not expected to impact accession goals.
        Mr. Ginsberg and General Jones. Yes, a declining recruiting pool
    threatens the Air Force's ability to meet future national security
    requirements and marketing data, provided by the JAMRS, indicates that
    this trend is growing.
        General Milstead. Yes, for the sake of our national character as
    well as national security. Based on ethnicity or race, between 21 to 42
    percent of young Americans did not graduate from high school in 2012.
    Another 10 percent cannot join the military because of their criminal
    records. When weight problems are combined with educational deficits,
    criminal records, and other disqualifiers, such as asthma or drug
    abuse, 75 percent of Americans 17 to 24 years old are unable to join
    the military.

        45. Senator Ayotte. Secretary Lamont, Secretary Garcia, Secretary
    Ginsberg, General Bromberg, Admiral Van Buskirk, General Milstead, and
    General Jones, will your Service be forced to lower standards in order
    to recruit a sufficient number of people?
        Mr. Lamont and General Bromberg. The Army has no plans to lower
    recruit quality standards to achieve its goals.
        Mr. Garcia and Admiral Van Buskirk. Navy does not need to lower its
    accession standards. NRC's analysis of the data indicates that the
    recruit pool is relatively stable through 2020. The age 17-24 youth
    population is projected to increase between 2020 and 2030. Even with
    QMA factors, the official DOD eligibility metric, applied to gross
    Census numbers, the recruit pool remains large when compared with the
    DOD projected annual accessions of approximately 150,000. Based on a
    fall 2012 assessment of OSD JAMRS data, the high quality, eligible, and
    propensed, target market is estimated at approximately 529,500, which
    will meet the DOD accessions requirement.
        Mr. Ginsberg and General Jones. It is too early to determine if the
    Air Force will need to lower standards in the future to meet accession
    goals. We have enjoyed a robust recruiting environment in recent years
    mostly due to the relatively high unemployment rate and a struggling
    economy. This recruiting environment has produced inflated quality
    indicators such as a higher than normal number of applicants qualifying
    in the highest mental aptitude test categories. We will continue to
    monitor our recruiting trends as the economy improves and other factors
    continue to shrink our recruiting pool and make adjustments if we feel
    it is necessary to meet production goals.
        General Milstead. The Marine Corps has not, and does not plan to
    reduce our quality standards or enlistment criteria. Quality standards
    were maintained when the Marine Corps expanded in size during the
    recent decade. Studies and research confirm that quality applicants are
    an investment that ultimately saves money due to lower attrition--
    specifically, more individuals will complete their enlistment--which
    helps stabilize our recruiting accession mission. Most importantly it
    provides the highest caliber of force capable of adapting and
    succeeding on 21st century battlefields. Lowering standards to chase
    short-term gains in meeting accession missions leads ultimately to
    higher costs, a less capable force, and negative implications for
    national security.

        46. Senator Ayotte. Secretary Lamont, Secretary Garcia, Secretary
    Ginsberg, General Bromberg, Admiral Van Buskirk, General Milstead, and
    General Jones, how can programs like the National Guard Youth Challenge
    Program increase the number of eligible recruits?
        Mr. Lamont and General Bromberg. While the mission of the Army
    Reserve National Guard (ARNG) Youth Challenge Program is to intervene
    and assist 16-18 year old high school dropouts, the impact on expanding
    the ARNG recruiting market is minimal. Many of the National Guard Youth
    Challenge participants have law violations and would thus require
    misconduct waivers. Very few program participants join (14 percent) and
    many may not qualify if they do receive a GED or high school diploma.
        Mr. Garcia and Admiral Van Buskirk. The National Guard Youth
    Challenge Program (NGYCP) is recognized as a Tier II education program
    by OSD. Per fiscal year 2013 DOD quality standards, 90 percent of total
    force non-prior service accessions must be Tier I High School Diploma
    Graduates (HSDG). Navy's higher quality standards require 95 percent to
    be Tier I HSDGs. Navy does access some NGYCP participants, but is
    limited by the academic quality standard. Absent modification to Tier I
    and Tier II HSDG standards, or increased academic performance on the
    part of NGYCP applicants, and applicants of similar programs, the NGYCP
    cannot increase the number of eligible recruits.
        Mr. Ginsberg and General Jones. The Air Force agrees that national
    and local level programs such as the NGYCP can be effective in
    generating potential recruits by providing a means to qualify otherwise
    disqualified youth. The NGYCP is a community-based program that leads,
    trains, and mentors at-risk youth so they may become productive
    citizens. Many of these at-risk youth have other disqualifying factors
    prohibiting them from serving in the Air Force.
        The Air Force has found it more cost effective to use our resources
    to generate awareness and interest for our programs by targeting youth
    still in school. The Air Force currently participates in various
    national-level sponsorships that focus on STEM and targets mechanically
    inclined youth, as well as the many local-level programs with
    involvement of our 27 squadrons and approximately 1,100 recruiters. The
    intent of our efforts is to educate youth and influencers on the high
    tech opportunities in the Air Force, and formulate a favorable
    impression of the Air Force as a viable and noble career option for
    youth.
        General Milstead. The Marine Corps does not utilize programs like
    the NGYCP for expanding eligible recruits. Our source for our quality
    applicant resides in the traditional high school market. Applicants
    from the high school market consistently have lower attrition, score
    higher in qualifying test scores for classification to military
    specialties, and have fewer moral issues compared to applicants with
    alternative education credentials.

                            WOMEN IN SERVICE REVIEW

        47. Senator Ayotte. General Milstead, from a Marine Corps
    perspective, can you provide an update on the Women in Service Review?
        General Milstead. We are on track to have the new policy fully
    implemented by the deadline of 1 January 2016. We are continuing to
    follow a two pillar approach as we implement our plan in a deliberate,
    measured, and responsible manner. The first pillar is the opening of
    closed MOSs; we are nearly complete with the full review and validation
    of all physical standards for MOS qualification. Throughout this summer
    and fall, we will be testing 800 male and female Marine volunteers on
    MOS physical tasks and looking for correlations to our Physical Fitness
    Test (PFT) and Combat Fitness Test event performance. Following this
    research, we plan to have a physical screening mechanism in place to
    aid in MOS classification by the end of this year.
        Our research at the Infantry Officer Course is ongoing. Over the
    last six months, four female lieutenants have volunteered for the
    course but none have completed it. An additional four lieutenants have
    volunteered for the course this July.
        The second pillar of our plan is the opening of closed units. This
    process was initiated in 2012 with the approved ``Exception to
    Policy.'' Currently, 48 female Marine officers and staff
    noncommissioned officers have been assigned to 19 previously closed
    battalions (Artillery, Amphibious Assault Vehicle, Tanks, Combat
    Assault, Combat Engineer, and Low Altitude Air Defense); continual
    assessment of this program will shape expansion to full integration by
    2016.

                                    SUICIDES

        48. Senator Ayotte. Secretary Lamont, Secretary Garcia, Secretary
    Ginsberg, General Bromberg, Admiral Van Buskirk, General Milstead, and
    General Jones, in Secretary Lamont's prepared statement, he discussed
    the serious problem of suicide in the Army. He states that, ``The Army
    had 324 potential suicides during 2012--the highest annual total on
    record.'' New Hampshire's Deployment Cycle Support Care Coordination
    Program has received national recognition and has achieved tangible
    results on this front--not only in preventing suicide but also in
    assisting servicemembers and their families in the areas of mental
    health care, employment, and homelessness. In 2012, program care
    coordinators intervened successfully in 29 suicide risk situations. Are
    each of you aware of New Hampshire's Deployment Cycle Support Care
    Coordination Program?
        Mr. Lamont and General Bromberg. Yes, we are aware of the New
    Hampshire Deployment Cycle Support Care Coordination Program. The Army
    National Guard partners with the legislatively mandated Yellow Ribbon
    Reintegration Program, which helps National Guard and Reserve component
    servicemembers and their families nation-wide, connect with their local
    support community before, during, and after deployments. All National
    Guard and Reserve components hold events and activities to provide
    servicemembers and their families training, information on child and
    youth programs, available benefits, resources, and services. The
    National Guard mandates servicemembers to attend Yellow Ribbon events,
    and family members are strongly encouraged to attend.
        Mr. Garcia and Admiral Van Buskirk. Yes; the Department of the Navy
    is aware of New Hampshire's Deployment Cycle Support Care Coordination
    Program and the successes it has reported since its inception. Many of
    the core elements of this program are duplicated in the Navy
    initiatives and programs that support sailors, marines, and their
    families throughout the deployment cycle and transition to civilian
    life. The Navy applauds the National Guard for providing comprehensive
    protective initiatives that assist guardsmen with navigating stress. We
    continually review best practices of all Services and components to
    identify those that can be tailored to fit the needs of sailors,
    marines, and their families.
        Mr. Ginsberg and General Jones. We were not aware of New
    Hampshire's Deployment Cycle Support Care Coordination program. We
    appreciate being made aware of the program and our subject matter
    experts are reviewing it for potential application to the Air Force
    Suicide Prevention Program.
        General Milstead. The Marine Corps is aware of the New Hampshire
    Deployment Cycle Support Care Coordination Program. We are pleased that
    the program provides support to the National Guard members prior to,
    during, and post deployment.
        The Marine Corps' Community Counseling and Prevention Services
    provides similar programs such as Operational Stress Control and
    Readiness, Deployment Cycle Training, and Third Location Decompression
    events, which are intended to prevent, identify, and manage combat and
    operational stress-related issues and increase access to mental health
    care by breaking stigma, raising awareness, and providing education and
    resources to support marines. Combat and Operational Stress Control
    principles are embedded in training that reaches the total force
    supporting marines in theater, in garrison, and at home.
        Additionally, the Yellow Ribbon Reintegration Program (YRRP) has
    been incorporated into the Marine Corps overall Unit, Personal and
    Family Readiness Program. YRRP, which was developed for National Guard
    and Reserve servicemembers and their families, is one of the many tools
    available to our units to ensure our marines and family members are
    well equipped to deal with the many challenges facing them.

        49. Senator Ayotte. Secretary Lamont, Secretary Garcia, Secretary
    Ginsberg, General Bromberg, Admiral Van Buskirk, General Milstead, and
    General Jones, are each of your Services looking to the National Guard
    for best practices that can inform your Services' efforts going
    forward?
        Mr. Lamont and General Bromberg. Yes. Potential best practices
    provided by the National Guard are shared across the Total Force.
    Senior Army Leaders and Commanders also share potential best practices,
    lessons learned, and identify trends and themes implemented across the
    Army during monthly Vice Chief of Staff of the Army-led Suicide Senior
    Review Group meetings in an effort to help mitigate suicides and reduce
    risky behaviors. These lessons-learned and potential best practices are
    also posted on the Army G-1, Army Suicide Prevention website at:
    www.preventsuicide.army.mil.
        Mr. Garcia and Admiral Van Buskirk. Yes, the Department of the Navy
    collaborates with all the Services suicide prevention offices (SPO),
    including the National Guard, to identify the best practices and
    successes of individual programs. Collaboration is realized through
    group engagements with SPO representatives and the DOD Suicide
    Prevention and Risk Reduction Committee monthly meetings. Best
    practices are carefully considered for inclusion into Navy and Service
    initiatives to improve support to servicemembers and their families.
        Mr. Ginsberg and General Jones. The Air Force works collaboratively
    with the Guard and Reserve through the CAIB and the Integrated Delivery
    System (IDS) at each level of the Air Force (Headquarters Air Force,
    Major Command, and installation). CAIBs are cross-functional forums
    created to identify and resolve or elevate to the next appropriate
    level those community issues that impact readiness or affect the
    quality of life of Air Force members and their families. The IDS
    functions as the action arm of the CAIB and develops a comprehensive,
    coordinated plan for integrating and implementing community outreach,
    prevention, and resiliency programs, such as suicide prevention.
        Also, all components of the Air Force (Active Duty, Guard, and
    Reserve) are actively engaged with the Defense Suicide Prevention
    Office in helping shape suicide prevention efforts across DOD through
    the Suicide Prevention and Risk Reduction Committee, the General
    Officer Steering Committee on Suicide Prevention, and other working
    groups and committees. The Air Force also continues to collaborate with
    our sister Services to leverage the full extent of our internal
    resources, combining our experiences and best practices to improve our
    suicide prevention efforts across the force.
        General Milstead. The Marine Corps shares all of our resources,
    plans and findings with our sister Services, including the National
    Guard, through the Suicide Prevention and Risk Reduction Committee
    chaired by Defense Suicide Prevention Office. Additionally, we look to
    our sister Services and the National Guard for best practices to inform
    our prevention efforts. We regularly compare our initiatives to the
    best practices registry sponsored by the Department of Health and Human
    Services through the federally funded Suicide Prevention Resource
    Center.

        [Whereupon, at 11:13 a.m., the subcommittee adjourned.]

                                     &