    [Senate Hearing 113-465, Part 6]
    [From the U.S. Government Publishing Office]

                                                     S. Hrg. 113-465, Pt. 6

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                   2015 AND THE FUTURE YEARS DEFENSE PROGRAM

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

                                    HEARINGS

                                   before the

                          COMMITTEE ON ARMED SERVICES
                              UNITED STATES SENATE

                        ONE HUNDRED THIRTEENTH CONGRESS

                                 SECOND SESSION

                                       ON

                                    S. 2410

         TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2015 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

                                   ----------

                           MARCH 26 AND APRIL 9, 2014

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

             Printed for the use of the Committee on Armed Services

                                                      S. Hrg. 113-465 Pt. 6

    DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR
                   2015 AND THE FUTURE YEARS DEFENSE PROGRAM

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

                                    HEARINGS

                                   before the

                          COMMITTEE ON ARMED SERVICES
                              UNITED STATES SENATE

                        ONE HUNDRED THIRTEENTH CONGRESS

                                 SECOND SESSION

                                       ON

                                    S. 2410

         TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2015 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

                                   __________

                           MARCH 26 AND APRIL 9, 2014

             Printed for the use of the Committee on Armed Services

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

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

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                          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, Chairwoman

    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

                                  ----------

                                 march 26, 2014

                                                                       Page

    The Active, Guard, Reserve, and Civilian Personnel Programs......     1

    Wright, Hon. Jessica L., Acting Under Secretary of Defense for
      Personnel and Readiness; Accompanied by Hon. Jonathan A.
      Woodson, Assistant Secretary of Defense for Health Affairs;
      Hon. Frederick E. Vollrath, Assistant Secretary of Defense for
      Readiness and Force Management; and Richard O. Wightman, Acting
      Assistant Secretary of Defense for Reserve Affairs.............     3
    Davis, John R., Director, Legislative Programs, Fleet Reserve
      Association....................................................    46
    Hayden, Col. Michael F., USAF (Ret.), Director, Government
      Relations, Military Officers Association of America............    54
    Hanson, CAPT Marshall, USNR (Ret.), Director, Legislative and
      Military Policy, Reserve Officers Association..................    60
    Moakler, Kathleen B., Government Relations Director, National
      Military Family Association....................................    69
    Questions for the Record.........................................   100

                                 april 9, 2014

    To Continue to Receive Testimony on the Active, Guard, Reserve,
      and Civilian Personnel Programs................................   151

    Bromberg, LTG Howard B., USA, Deputy Chief of Staff, G-1.........   155
    Moran, VADM William F., USN, Chief of Naval Personnel/Deputy
      Chief of Naval Operations for Manpower, Personnel, Training,
      and Education, N-1, U.S. Navy..................................   164
    Cox, Lt. Gen. Samuel D., USAF, Deputy Chief of Staff for
      Manpower, Personnel, and Services, A-1.........................   173
    Milstead, Lt. Gen. Robert E., Jr., USMC, Deputy Commandant,
      Manpower and Reserve Affairs...................................   184
    Chandler, SMA Raymond F., III, U.S. Army.........................   205
    Stevens, MCPON Michael D., U.S. Navy.............................   212
    Cody, CMSAF James A., U.S. Air Force.............................   218
    Barrett, SGTMAJMC Michael P., U.S. Marine Corps..................   227
    Questions for the Record.........................................   257

                                     (iii)

     DEPARTMENT OF DEFENSE AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR
                   2015 AND THE FUTURE YEARS DEFENSE PROGRAM

                                  ----------

                           WEDNESDAY, MARCH 26, 2014

                                   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 10:03 a.m. in
    room SR-222, Russell Senate Office Building, Senator Kirsten
    Gillibrand (chairwoman of the subcommittee) presiding.
        Committee members present: Senators Gillibrand, Hirono,
    Kaine, King, Ayotte, Graham, and Lee.

     OPENING STATEMENT OF SENATOR KIRSTEN E. GILLIBRAND, CHAIRWOMAN

        Senator Gillibrand. The subcommittee meets today to receive
    testimony from the Department of Defense (DOD) on the Active,
    Guard, Reserve, and civilian personnel programs in review of
    the Defense Authorization Request for Fiscal Year 2015 and the
    Future Years Defense Program.
        Today, we will have two panels. The first one consists of
    our senior DOD leaders, with whom we will discuss not only DOD
    personnel policy issues but specific budget proposals in
    furtherance of our subcommittee's oversight responsibilities.
        The Honorable Robert F. Hale, Under Secretary of Defense,
    Comptroller; the Honorable Jessica L. Wright, Acting Under
    Secretary of Defense for Personnel and Readiness; the Honorable
    Jonathan A. Woodson, Assistant Secretary of Defense for Health
    Affairs; the Honorable Frederick E. Vollrath, Assistant
    Secretary of Defense for Readiness and Force Management; and
    Mr. Richard O. Wightman, Acting Assistant Secretary of Defense
    for Reserve Affairs.
        Our second panel will consist of representatives from
    beneficiary groups who represent the interests of Active Duty
    and Reserve servicemembers, retirees, and their families. I
    will introduce them after the first panel concludes.
        DOD submits its budget for fiscal year 2015 at a time of
    tremendous challenge and uncertainty for the Nation, the
    military, and our servicemembers, retirees, and their families.
    DOD will not be under sequestration in the coming fiscal year
    but nevertheless faces a constrained fiscal environment. The
    $496 billion top line for DOD is unchanged from the funding
    levels in fiscal years 2013 and 2014 and remains more than $30
    billion below the funding provided to DOD in fiscal years 2010,
    2011, and 2012.
        Military personnel funding, including funding for health
    care for servicemembers, their families, and retirees, totals
    $176.6 billion in the fiscal year 2015 request. This represents
    a slight decline over last year's total, although the portion
    of the total budget devoted to personnel has risen slightly.
        The proposal before us includes numerous reductions in pay
    and benefits about which many, including myself, have serious
    concerns. The budget put forward by DOD proposes significantly
    lower end strengths for the ground forces through 2019,
    including a reduction of 50,000 more than had previously been
    planned in Active Duty Army end strength, with smaller
    reductions in the Guard and Reserve. The budget sets a pay
    raise for servicemembers below the rate of inflation, freezes
    pay for general and flag officers, begins a phased reduction in
    the growth of the housing allowance that will result in
    servicemembers paying 5 percent out-of-pocket for housing
    costs, reduces support to commissaries that will result in
    higher prices, and makes significant and structural changes to
    the TRICARE benefit.
        In all, DOD's personnel and compensation proposal seeks to
    save over $2 billion in fiscal year 2015 and shifts those
    savings to the Operation and Maintenance account. Each of these
    reductions is significant in and of itself, but I am extremely
    concerned about the cumulative effect of all of these cuts,
    especially on the junior members of the force and their
    families.
        These benefit proposals are being made, I would note, while
    the Military Compensation and Retirement Modernization
    Commission (MCRMC), established in the 2013 defense bill, has
    yet to finish its work. The MCRMC was established to review all
    aspects of the military compensation and retirement systems,
    including health care, and how these systems might be reformed
    to modernize and enhance the viability of the All-Volunteer
    Force. It will report its findings and recommendations next
    February.
        The Services continued the process of removing barriers to
    service by women, an effort I strongly endorse. This past
    January, the Army notified Congress of its intent to open
    33,000 positions to women that were previously closed due to
    their proximity to combat. These positions are in military
    occupational specialties (MOS) already open to women. The real
    challenge moving forward will be opening occupations such as
    infantry that are currently closed.
        A little more than a year ago, Secretary Panetta and
    General Dempsey rescinded the Ground Combat Exclusion Policy
    and gave the Services and the Special Operations Command until
    January 2016 to open all positions to service by women or to
    request an exception to keep certain positions closed. I
    believe in the value of a deliberative and scientific approach
    in evaluating occupational standards for all military jobs,
    which I hope will be the Services' approach. I do expect that
    once these standards are properly validated, be they physical,
    mental or technical, that all servicemembers, men and women,
    will be able to serve and compete for any military job for
    which they meet the requirements necessary for the position.
        I remain concerned about sexual assault in the military. I
    was disappointed that despite the support of the majority of my
    colleagues, we were not given an opportunity to vote on passage
    of my proposal to make sure that decisions to prosecute serious
    offenses are made by trained, professional, and independent
    lawyers rather than commanders who don't necessarily have the
    training or perspective to make these decisions objectively.
    But I have not given up on making this change that so many
    survivors have told us will make a difference when it comes to
    reporting the crime.
        I will also continue my efforts to make sure that the
    changes that have been legislated are implemented in an
    effective manner and will continue to work toward initiatives
    to better address this scourge in our military.
        I am also interested to hear more about the standard of
    care you are providing to our servicemembers and their
    families, something which must not be sacrificed in an era of
    belt-tightening. I believe that ensuring that servicemembers,
    retirees, and their families get the best care is fundamental
    to readiness. As you are aware, I am particularly concerned
    about your work in support of the developmentally disabled
    dependents of servicemembers.
        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 to 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 best we can assist
    our servicemembers and their families to ensure that our
    military remains steadfast and strong.
        So now I would like to turn it over. When Senator Graham
    joins us, he can use his opening statement at his discretion.
        Secretary Hale, if you would like to start with your
    statement.
        Secretary Hale. Madam Chairwoman, I'm going to defer to
    Secretary Wright to open up. Then I'll have a brief statement.
        Senator Gillibrand. That's fine.
        Secretary Wright.

    STATEMENT OF HON. JESSICA L. WRIGHT, ACTING UNDER SECRETARY OF
       DEFENSE FOR PERSONNEL AND READINESS; ACCOMPANIED BY HON.
    JONATHAN A. WOODSON, ASSISTANT SECRETARY OF DEFENSE FOR HEALTH
      AFFAIRS; HON. FREDERICK E. VOLLRATH, ASSISTANT SECRETARY OF
      DEFENSE FOR READINESS AND FORCE MANAGEMENT; AND RICHARD O.
      WIGHTMAN, ACTING ASSISTANT SECRETARY OF DEFENSE FOR RESERVE
                                AFFAIRS

        Ms. Wright. Chairwoman 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
    2015 budget request.
        More than a third of the DOD's base budget supports our
    military personnel pay and benefits package. As Secretary Hagel
    testified, DOD's priority for this budget is to balance pay and
    benefit compensation with force readiness.
        We have planned for a capability favoring a smaller force
    that is trained properly and modernized to accomplish the
    mission. This budget reflects long and careful deliberations,
    and it came with some very sobering choices that we had to
    make.
        This budget reflects a 1 percent pay raise in base pay for
    military personnel, with the exception of general and flag
    officers, whose pay will be frozen for a year. DOD is proposing
    to gradually slow the growth of the tax-free basic allowance
    for housing (BAH) until BAH ultimately covers approximately 95
    percent of the average servicemember's housing expense. We will
    also eliminate renter's insurance costs from the allowance.
    These changes will be phased in over several years to allow
    members to plan accordingly.
        We propose a $1 billion decrease over 3 years to the annual
    budget to operate the commissaries. Our plan does not direct
    the closure of any commissaries. Overseas commissaries and
    those commissaries in remote locations will continue to receive
    subsidies.
        We will simplify and modernize our TRICARE health program
    by consolidating all of the plans and by adjusting deductibles
    and co-pays. These changes will encourage members to use the
    most affordable means of care, such as the Military Treatment
    Facilities (MTF), preferred providers, and generic
    prescriptions. The proposed single TRICARE system consolidates
    the various TRICARE options into one plan.
        We know that compensation and benefits are only part of
    what attracts and retains people in our military, and this is
    especially true when we talk directly to our servicemembers.
    Our members join our Services to learn and exercise their
    skills. We believe that readiness and training are clearly the
    ultimate care we can give our servicemembers. If we cannot
    afford to train, exercise, and operate, if the quality of their
    service is diminished, we will precisely lose those
    servicemembers we want to retain.
        We have an obligation to ensure servicemembers and their
    families are fairly and appropriately compensated and that
    caring for them during their time and after their time in
    uniform is also on our radar scope. We also have the solemn
    responsibility to give our troops the finest training and the
    finest equipment possible. When America calls upon our
    servicemembers, they must be prepared with every advantage we
    can give them so they return home safely to their family and
    friends. The President's budget fulfills both of these promises
    to our servicemembers and their families.
        Ma'am, thank you, and I look forward to your questions.
        Ma'am, we were asked for only one statement, and Mr. Hale
    will follow.
        Secretary Hale. Madam Chairwoman, Senator Graham, thank you
    for the chance to appear today. Secretary Wright has outlined
    the key personnel issues with DOD's 2015 budget. I would like
    to expand on a couple of them, with a focus on the budget.
        Balance is the key goal in the 2015 DOD budget. We have
    made hard choices designed to create a force that can carry out
    the overall defense strategy, though with higher risk in some
    missions.
        To minimize risk, we sought a balanced combination of
    military readiness, size, and technical capability, and we did
    this while meeting some pretty stringent budget limits.
    Achieving this balance required a lot of difficult decisions. I
    will focus on just two that are particularly related to
    personnel.
        Even under the budget proposed by the President, we had to
    reduce the size of our military forces. Compared to levels
    expected at the end of this year, total Active Duty military
    personnel will decline by about 6 percent by fiscal year 2019.
    Guard and Reserve personnel decline by a lesser amount, 4
    percent. Civilian personnel decline about 5 percent.
        These planned cutbacks in personnel would be even larger if
    sequester-level budgets return. The President has proposed
    budgeting at levels above the Budget Control Act caps, the
    sequester levels, by a total of $115 billion in the years 2016
    through 2019. If Congress does not increase the caps to
    accommodate the President's proposed budget levels, then
    military forces would have to decline by larger amounts. For
    example, instead of a 6 percent decline in Active Duty, it
    would go to 9 percent under sequester-level budgets.
        These personnel cutbacks mean that we will have fewer
    forces available. Under the President's proposed budget, the
    Air Force will retire more than 300 aircraft, including all of
    its A-10 and U-2 fleets. The Navy will put 11 ships into phased
    modernization and eliminate crews while the ships are in this
    status. The Army will reduce the number of brigade combat teams
    and combat air patrols, and force reductions would be even
    larger under sequester-level budgets.
        We believe that a smaller military force, even though it
    means accepting more risk in some missions, is necessary so
    that we can comply with the budget limits while still having
    enough funds to modernize and provide a high level of
    readiness. Smaller forces are one key to maintaining the
    balance that is the theme of this budget.
        Balance also requires some reductions and rebalancing in
    the Guard and Reserve. The Reserve components have performed
    superbly over the past 10 years. I have watched this for 40
    years. If you had told me we could have seen the Guard and
    Reserve in 13 years of war and still maintain recruiting and
    retention, I think I would have been very skeptical, but they
    did it. We intend to maintain the Reserve components as full
    war-time partners in addition to their homeland defense mission
    and the other important things they do.
        However, there are some missions that are simply best
    suited for the Active Forces--for example, the ``Fight
    Tonight'' kinds of missions. Therefore, as we work toward
    balanced reductions in the size of the military, we plan some
    cutbacks in Reserve component forces, though by a smaller
    percent than the cuts imposed on the Active-Duty Forces.
        Another key to balance is the difficult decisions we have
    made regarding military compensation. As Secretary Wright has
    reviewed those, I won't go through them again. We made them in
    order to comply with budgetary limits while preserving enough
    funds for training and maintenance. We need that to return to a
    high state of military readiness.
        Our compensation proposals follow some clear principles. No
    one's pay and allowances will be cut. We will slow the growth,
    but we will not cut pay and allowances. We will ensure that
    compensation is sufficiently generous to attract and retain the
    people we need to man the military in a very demanding
    profession. We will make sure that we support the All-Volunteer
    Force. The funds saved by slowing the growth in military
    compensation will all be reinvested in training and
    maintenance. That is a commitment we made to the Joint Chiefs
    when they developed these proposals, and we have kept it.
        Secretary Wright, as I said, already reviewed the
    proposals. They have an important effect on the balance in this
    budget. Madam Chairwoman, you referred to this. If Congress
    turns down all of these proposals, most of which require
    legislation, then in order to live within the budgetary limits,
    Congress will have to find $2.1 billion in other cutbacks in
    fiscal year 2015, and together we will have to identify $31
    billion of additional cutbacks over the next 5 years. These
    cuts are going to have to come out of readiness and
    modernization. There is nowhere else to go. This will harm the
    balance that we believe is needed to minimize risk to national
    security.
        Senator King. Excuse me. What was the figure for the 5
    years?
        Secretary Hale. $31 billion.
        We know that this budget features difficult choices. They
    were difficult for us--I sat through I don't know how many
    meetings on the budget as we went through this with the Chiefs
    and the Secretary--and they are also very difficult for you.
    But we believe we have created a balanced package of changes
    that meet budgetary limits while permitting us to carry out the
    current defense strategy, though with some added risks in
    certain missions. We ask for your support for these budgetary
    proposals.
        With that I'll stop, and I believe we are now ready for
    questions.
        [The joint prepared statement of Secretary Wright,
    Secretary Vollrath, Secretary Woodson, and Secretary Wightman
    follows:]
      Joint Prepared Statement by Hon. Jessica L. Wright, Hon. Frederick
       Vollrath, Hon. Jonathan Woodson, and Mr. Richard O. Wightman, Jr.
        Chairwoman Gillibrand, Senator Graham, and distinguished members of
    the subcommittee, I appreciate the opportunity to appear before you to
    discuss key personnel and manpower matters in support of the
    President's fiscal year 2015 budget request. The fiscal year 2015
    Defense budget request of $495.6 billion includes $176.6 billion for
    our military personnel pay and benefits, such as retirement benefits
    and medical care, which make up more than a third of the Department's
    base budget request.
        As Secretary Hagel testified before you, the Department's priority
    was to balance readiness, capability and capacity, favoring a smaller
    force that is properly trained, capable and modernized to accomplish
    its mission. The Secretary of Defense has been very clear that
    sequestration funding limits imposed by the Budget Control Act (BCA) of
    2011 will yield a force that is too small, and not ready enough to meet
    the Nation's security objectives. That said, the President's budget
    allows us to begin responsibly adapting and reshaping our defense
    enterprise in an era of unprecedented uncertainty and change.
        The President's plan reflects the imperative to ensure that our
    military forces are ready and capable of responding to a rapidly
    evolving and complex security environment both now and in the future.
    It also reflects the difficult choices brought about by severely
    constrained resources and extreme fiscal uncertainty. These choices
    include:

             Reductions in troop strength and force structure in
            every Military Service--Active and Reserve--in order to sustain
            our readiness and technological superiority, and to protect
            critical capabilities like Special Operations Forces and cyber
            resources.
             Terminations or delays in some modernization/
            procurement programs to protect our most acute readiness
            challenges in training and maintenance.
             Slowed growth of military compensation costs in ways
            that will preserve the quality of the All-Volunteer Force, but
            also free up critical funds needed for sustaining training,
            readiness, and modernization.
                      balancing a ready and capable force
        Thirteen years of demanding operations in support of Operation
    Iraqi Freedom and Operation Enduring Freedom required the Services to
    generate forces suited to those missions at the expense of maintaining
    the full spectrum of capabilities demanded by the 2012 Defense
    Strategic Guidance (DSG). As those operations began to wind down, the
    Services faced a series of challenges of simultaneously broadening
    their operational focus and reducing force capacity in an era of
    diminishing resources. The President's budget request for fiscal year
    2014 reflected the Services' plans for recovering these full-spectrum
    capabilities over the next 5 years. Sequestration in fiscal year 2013,
    operating under a 6 month continuing resolution, and unanticipated war
    costs all contributed to degraded readiness and hindered those initial
    readiness recovery plans. As a result, readiness was alarmingly low by
    the end of fiscal year 2013.
        The Bipartisan Budget Act (BBA) of 2013 unquestionably stemmed this
    readiness decline. The fiscal year 2014 enacted appropriations targeted
    the most pronounced shortfalls, especially in the areas of training and
    maintenance. However, fiscal year 2015 funding levels do not sustain
    that level of investment. The budget does not provide adequate funding
    for modernization, increased training and facility sustainment needed
    to resolve the Department's readiness challenges. However, under the
    very tight constraints of the fiscal year 2015 funding caps and the
    uncertainty of funding levels in future years, the breadth and scope of
    our existing readiness challenges guarantee that they will take years
    of sustained investment to fix. It took years to produce our readiness
    challenges and it will take years to resolve them.
        Over the last decade, counterinsurgency training and operations
    have crowded out the ability to train for higher-end, doctrinal
    missions. This not only reduced the full-spectrum capability of units,
    it limited the leadership development of the junior and mid-grade
    members who will lead future operations. The Army estimates that over
    5,500 company commanders did not receive the necessary professional
    development in combined arms maneuver as part of unit decisive action
    training. The Air Force, Marine Corps and Special Operations Forces saw
    similar patterns and while their units have performed extraordinarily
    well for the missions they are currently assigned, they are not
    prepared for the full spectrum of conflict. Fiscal year 2014 and 2015
    funding allowed some training recovery, but not enough to relieve this
    backlog.
        Much of the funding requested in the Opportunity, Growth and
    Security Initiative is designed to further close readiness gaps in
    training. For example, while the Army already programmed for 17 full-
    spectrum training rotations for fiscal year 2015, it would apply its
    investment funds to additional ground and aviation training, allowing
    them to make greater progress in regaining full-spectrum capability.
    The Marine Corps would direct additional funds towards training its
    operational forces, maximizing its opportunity to create expeditionary,
    highly capable forces to provide forward presence and crisis response.
    The Air Force would increase flying hours with extra funds to give
    pilots more flying time to further restore capabilities across the full
    range of required missions. U.S. Special Operations Command will
    provide additional funding to help recover maritime skills for SEALs
    and full-spectrum aviation readiness for special operations aviators.
        The Opportunity, Growth and Security Initiative would also help
    resolve some of the Service's maintenance challenges, especially
    aviation maintenance. However, probably the most important use of this
    investment fund is to address mounting degradations in the facilities,
    ranges, logistics support, and procurement. The Services have been
    driven to underfund these accounts in order to protect higher-priority
    training and maintenance concerns. While defendable, this strategy is
    not sustainable. For example, the Navy needs additional funding to
    reinstate a large portion of their facility sustainment,
    recapitalization and modernization accounts. This funding will help
    protect the industrial base and allow for fluid throughput at the
    maintenance centers and shipyards. Similarly the Marine Corps and Air
    Force both seek additional funding to cover range upkeep and
    modernization.
        The President's plan to create a smaller but capable force did not
    come without sobering choices. The most difficult involve drawing down
    end strength and slowing the growth military and civilian personnel
    costs. We know that the single most critical readiness determinant is
    the quality of our people. Our military personnel and their families
    have shouldered the worst costs of the longest war in our Nation's
    history and deserve the most compensation a grateful nation can afford.
    We have also vowed to never again send our people into harm's way
    unprepared for the missions they will face. Today's fiscal climate
    creates huge challenges in balancing these two imperatives. This budget
    reflects long and careful deliberation about how to strike this
    balance. Below are specific force structure and compensation proposals
    that would allow the Department to achieve that end.
    Reduction in End Strength
        Since the Department of Defense (DOD) strategy will no longer size
    the force for prolonged stability operations, the Army will accelerate
    the pace of its drawdown, attaining an end strength of 490,000 by the
    end of fiscal year 2015 from the current 520,000 and will continue to
    drawdown to a range of 440,000 to 450,000 Active Duty soldiers in
    subsequent years. To maintain a balanced force, the Army National Guard
    and Reserves will also draw down in fiscal year 2015 to 350,200 and
    202,000, respectively and continue to 335,000 and 195,000 in subsequent
    years. We will help ensure this force remains well trained and
    equipped.
        However, if sequestration returns in 2016, both the Army Active and
    Reserve components would be forced to be smaller, with an uncertain
    level of readiness, resulting in a drawdown to 420,000 Active, 315,000
    National Guard, and 185,000 Reserves.
        The Marine Corps Active Force numbers about 190,000 today and will
    draw down to 182,000 in the next several years. This figure provides
    for about 900 additional marines for embassy security. Unfortunately,
    like the Army, they will have to reduce further, to about 175,000, if
    sequestration is not avoided. The Marine Corps Reserve is also planning
    for a slight decrease.
        Air Force end strength reflects force structure choices, decreasing
    to 310,900 in fiscal year 2015, while the Reserve and Guard decrease
    slightly to 67,100 and 105,000, respectively. Like the Air Force's,
    Navy end strength complements force structure choices. Navy strength
    remains steady in fiscal year 2015 at 323,600, while the Reserve
    declines slightly to 57,300.
    Pay Increase (except GO/FO for 1 year)
        The fiscal year 2015 President's budget requests a 1 percent raise
    in basic pay for military personnel, with the exception of general and
    flag officers, whose pay will be frozen for a year. Basic pay raises in
    future years will be similarly restrained, though modest increases will
    continue.
        Finding the appropriate balance between providing the men and women
    who serve our great nation a competitive package of pay and benefits
    and, while providing them the best possible training and equipment is a
    monumental challenge in the current fiscal environment. Making
    appropriate adjustments to control the growth in compensation costs now
    will aid the Department in achieving this balance.
    Basic Allowance for Housing (BAH)
        DOD is proposing to gradually slow the growth rate of the tax-free
    basic allowance for housing, until the BAH ultimately covers
    approximately 95 percent of the average servicemember's housing
    expenses, and eliminate renter's insurance costs from the allowance.
    This will allow the Department to effectively operate under constrained
    budgets, while still being able to recruit and retain an All-Volunteer
    Force. These changes will be phased in over several years to allow
    members to plan accordingly. Additionally, the rate protection feature
    already in place for BAH will remain in effect. A member's BAH will not
    be reduced so long as that member retains eligibility for BAH at the
    same location and does not change dependency status or lose rank.
    Servicemembers in the same pay grade but living in different areas
    would have their BAH rates adjusted by the same dollar amount to ensure
    members retain the same purchasing power regardless of the cost of
    housing in their local area. Adjusted rates will be publicly available
    (as they are today) to allow members to make informed decisions when
    making housing choices. Depending on a member's actual housing choices,
    they may or may not have to pay any out of pocket costs. Savings
    generated from this proposal will be reinvested back into the force for
    training and readiness.
                    commissaries--reducing direct subsidies
        Commissaries currently receive an appropriation of $1.4 billion per
    year. We propose a $1.0 billion decrease to the annual budget to
    operate commissaries, with the decrease taking place gradually over the
    next 3 years. Our plan does not direct the closure of any commissary.
    Under this plan overseas commissaries and those in remote locations
    will continue receiving direct subsidies. The Defense Commissary Agency
    (DeCA) will continue to receive approximately $400 million to support
    overseas commissaries and those commissaries designated by the
    Department as remote/isolated. Prices at all commissaries will rise,
    however, and the mix of products may change. Commissaries will also
    need to find additional operating efficiencies. This plan requires
    changes to U.S. law. The Department is drafting a proposal for the
    National Defense Authorization Act (NDAA) for Fiscal Year 2015 to
    implement the adjustments.
        DOD recognizes the value of commissaries to our people, especially
    younger military families and retirees. Stateside commissaries,
    however, have many private-sector competitors and it is reasonable to
    operate more like a business. Commissaries will continue to provide
    good deals to servicemembers, military families and retirees and will
    remain a dependable benefit for families, particularly those serving
    overseas and in remote and isolated areas.
                         tricare--system modernization
        We will simplify and modernize our TRICARE health insurance program
    by consolidating plans and adjusting deductibles and co-pays in ways
    that encourage members to use the most affordable means of care--such
    as military treatment facilities, preferred providers, and generic
    prescriptions, while also increasing their freedom of choice. The
    proposed TRICARE Consolidated Health Plan consolidates the various
    TRICARE plans, while also increasing their freedom of choice. Prime,
    Extra, and Standard, into one plan. The proposal also includes modest
    changes in beneficiary out-of-pockets costs for Active Duty families,
    retirees and their families, and Reserve Component members and their
    families.
        Servicemembers on Active Duty would have no out-of-pocket expenses
    regardless of the point of care delivery (Military Treatment Facilities
    [MTF], network, or out-of-network) and the highest priority for MTF
    care. The cumulative effect of the proposed TRICARE fee increases still
    ensures beneficiary out-of-pocket costs: (a) remain far below costs
    experienced by military beneficiaries in 1994; and (b) remain far
    better than virtually every comparable employer in the United States
    today. The TRICARE benefit remains one of the most comprehensive
    benefits in the country, as it should be.
    The Quality of Service
        The quality of our men and women in uniform directly contributes to
    our role as the world's pre-eminent fighting force. We know that
    pecuniary compensation is only part of what attracts and retains
    people, and this is especially true for military members. Our members
    join the Service to learn and exercise new skills. The opportunity for
    overseas travel is often an explicit benefit cited by recruits.
    However, if we cannot afford to train, exercise, or operate--in other
    words, if the quality of our Service diminished, we will lose precisely
    those members who we want to retain the most.
        We have experienced just these problems before. In the late 1990s,
    when budgets were under significant pressure, the Navy and Air Force
    were not able to keep aircraft up and flying. Problems were so acute,
    that the Navy even experimented with ``bagging'' aircraft as a means of
    storing aircraft that they could not afford to fly. At the same time,
    the airlines were actively recruiting and, as a result, we suffered
    significant losses in second-tour, experienced pilots. It took years
    and a variety of bonuses to recover from the degradation.
        We are very concerned about repeating these mistakes. Today, we are
    struggling to maintain the same promise of a valuable military career
    to our members and must protect our training and exercise dollars to
    keep our best and brightest.
        America has an obligation to make sure servicemembers and their
    families are fairly and appropriately compensated and cared for during
    and after their time in uniform. We also have a responsibility to give
    our troops the finest training and equipment possible--so that whenever
    America calls upon them, they are prepared with every advantage we can
    give them so that they will return home safely to their families. The
    President's budget fulfills both of these promises to our
    servicemembers and their families by making several specific proposals.
                        total force and force management
        A fundamental key to future readiness is the well-reasoned
    management of the Total Force of Active and Reserve military,
    government civilians and contracts for services. DOD must balance force
    readiness with fiscal reality in the face of uncertain, evolving
    operational challenges.
        We do not believe this is simply an issue of the ``least costly
    force.'' Moreover, the Nation's uniformed All-Volunteer Force is the
    implicit assumption upon which all our commanders' plans are
    predicated. If we fail to sustain it, little else will matter. However,
    even the All-Volunteer Force must conform to today's fiscal challenges.
    The proposed Active and Reserve Force structure in the fiscal year 2015
    budget reflects this reality while ensuring that we meet our defense
    strategy.
        The Services continue to reduce their forces to meet their
    prescribed end strengths. With the assistance of Congress, DOD has the
    force shaping tools necessary to meet the drawdown in its current plan.
    However, continued budget reductions make it necessary to revisit the
    composition of all components of the Total Force--Active Duty, Reserve
    component, DOD civilians and contractors. Future assessment may require
    requesting additional congressional authorization for force shaping
    tools to meet reduced end strengths.
    Active and Reserve Component Recruiting and Retention
        The All-Volunteer Force has performed remarkably well for more than
    40 years. This success does not come easily and is the result of
    teamwork and countless hours by a dedicated force of professional
    recruiters. Even after 13 years of protracted conflict our recruiters
    continue to attract the best and the brightest of America's youth from
    around the country. These diverse young men and women represent the
    United States proudly around the world as members of the strongest and
    most respected military in the world.
        Fiscal year 2013 was a successful recruiting year. All but two of
    the components achieved fiscal year 2013 missions, with only the Army
    Guard (99 percent) and the Army Reserve (88 percent) recruiting less
    than their goal. Competition for high quality Reserve recruits will
    increase as the economy improves and the Services draw down. Reserve
    recruiting missions may be more difficult to achieve. As such, the
    recruiting forces have already begun to adopt a more aggressive
    proactive canvassing approach to their efforts. However, as the Active
    component continues to reduce end strength, some Active Duty members
    may choose to continue Service in the Reserve component.
        Collectively, DOD recruited 276,210 new enlisted members for the
    Total Military force in fiscal year 2013. The Department also met or
    exceeded both of the established benchmarks for new recruits in fiscal
    year 2013. DOD-wide, 99.6 percent of new Active Duty recruits, and 96.6
    percent of Reserve recruits, were high school diploma graduates against
    our benchmark of 90 percent. Further, 75 and 67 percent respectively
    scored above average on the AFQT, versus our benchmark of 60 percent.
    Through the first quarter of fiscal year 2014, all Services except Army
    Reserve have met or exceed recruiting quantity and quality objectives
    year-to-date.
        The recruiting market is changing and DOD's continued recruiting
    success may become more difficult and we must remain focused and
    vigilant. Today, nearly 75 percent of our youth are not qualified for
    military Service with medical conditions and weight accounting for most
    of the disqualifications. Data from the Joint Advertising and Market
    Research and Studies (JAMRS) program also show that only 14 percent of
    youth are inclined to serve in the Military. Current economic
    conditions have highlighted the value of serving in the military to
    some people who in the past may not have given it serious
    consideration. However, the downward trend in youth unemployment
    indicates we are entering a more competitive employment environment,
    which can make Military Service less attractive.
        In these times of constrained resources each Service has reviewed
    and made adjustments to its recruiting programs. However, we must be
    prudent in considering further cuts to these programs. In order to man
    the All-Volunteer Force, sustained resources must be available for the
    Services to continue to meet the recruiting missions which are vital to
    our Nation's security.
        Fiscal year 2013 was also a successful year for retention, as each
    of the Services successfully met their overall retention goals. Reserve
    component attrition has also remained consistent in both fiscal year
    2012 and 2013. The aggregate fiscal-year-to-date departmental attrition
    rate was 5.97 percent in fiscal year 2013 and is currently at 5.99
    percent. However, as we reduce the budget and the economy continues to
    improve, it will become increasingly challenging to retain the best and
    most qualified servicemembers. Reduced discretionary funds will limit
    our ability to offer selective reenlistment bonuses in high demand-low
    density skills that are equally valued in the private sector.
    Special Pays and Bonuses
        While retention has been strong over the past several years,
    certain career fields and specialties continue to see manning shortages
    and experience difficulty in filling billets in certain critical
    skills. As a result, DOD continues to rely on the use of special and
    incentive pays. At less than $4 billion, these pays are a small, but
    critical, part of the total budget. They provide a cost effective and
    efficient tool by selectively and precisely targeting pay to
    incentivize specific behaviors in order to address our specific force
    manning challenges.
        DOD is currently in the midst of a 10-year plan to transition the
    legacy special and incentive pays to the new, flexible special and
    incentive pay authorities provided by Congress. To date, the Department
    has implemented seven of the ten consolidated authorities in
    subchapters II and III, chapter 5, title 37 U.S. Code. For example, the
    general bonus authority for enlisted members (section 331) consolidates
    nine separate authorities, allowing the Department to offer enlisted
    bonuses to members in the Active and Reserve components. We are
    currently on schedule in the transition process and expect the entire
    transition process to be complete on time.
    The ``Right'' Mix of the Active and Reserve Forces
        The Reserve component offers the opportunity to preserve military
    capability and capacity at reduced cost. Keeping the Reserve component
    prepared through periodic deployments adds value to the military by
    maintaining Guard and Reserve readiness, augmenting the Active
    component, and providing force structure options in our resource
    constrained environment.
        Recently passed legislation has enabled the Services to program the
    operational use of the Reserve component by providing access for
    National Guard and Reserve utilization. I appreciate the authorities
    and support this committee has provided in this matter.
        The Reserve components are more integrated, and are better manned,
    equipped and trained than ever before in history. Reserve component
    units and servicemembers have answered the call globally and in
    significant domestic crises. The systems for producing ready Active
    component and Reserve component forces have improved dramatically in
    the last 13 years of war. Those systems that are working now must be
    sustained to retain the best of what has been gained. As we shift to a
    smaller military, more modern and capable of global actions, the
    Department will continue to leverage the Reserve component.
        As overall deployments decrease, military integration and
    initiatives to enhance integration will sustain readiness. The Air
    Force, by example, has pioneered a culture of utilization of the
    Reserve component, specifically, where associate units share equipment
    and facilities and maintain readiness to identical standards. Across
    the Services, there are opportunities to further integrate Reserve
    component into Active component and vice versa, leading to greater
    efficiency and effectiveness. The fiscal challenges we face call for
    innovative solutions to readiness problems, and we will continue to
    foster greater utilization and integration of the Reserve component.
    Civilian Hiring Freeze and Furloughs
        One of the highest profile effects of sequestration was the
    furlough of the majority of DOD's civilian workforce. We applied
    furlough actions in a consistent and equitable manner, with exceptions
    based on specific mission requirements. We also implemented, with
    limited exceptions, a civilian hiring freeze during this tough budget
    period.
        The disruptions of the furlough had an immediate negative impact on
    our civilian workforce, potentially damaging our ability to carry out
    the Department's mission. Declines in morale and productivity, as well
    as recruiting were all exacerbated by the challenging fiscal
    environment. The hiring freeze also put the Department further at risk
    of competency gaps and critical skill shortages in key mission critical
    areas.
        Going forward, DOD is working to reshape our civilian workforce to
    increase efficiencies and meet targeted reductions, while ensuring that
    the workforce has the skills needed for the future. As we do so, our
    goal is to do everything possible to avoid more hardship. Where
    necessary, we will continue hiring freezes, and encourage the liberal
    use of Voluntary Separation Incentive Pay (VSIP) and Voluntary Early
    Retirement Authority (VERA), both of which have been valuable in
    reducing involuntary separations and associated costs.
    Achieving Better Governance of Contract Services
        We are giving this element of the Total Force more scrutiny. The
    $29.9 billion in contracting efficiencies DOD has budgeted is a good
    start. Moreover, we have gained efficiencies by improving requirements
    definition, negotiating lower labor and overhead rates, increasing
    competition, improving our purchasing processes, and by aggressively
    reviewing Services contracts. In many cases, Components have
    reprioritized services and divested contracted workload of lower or
    marginal value. Further savings are possible as we reduce the military
    force structure and continue to implement process and system
    improvements to actively manage contracted services.
         sustaining superior and cost-effective military health system
        American medicine has changed since the TRICARE plans were put into
    place 18 years ago, and it is time to update and modernize TRICARE
    based on what we learned. Currently, elements of our TRICARE health
    plan design are costly and administratively complex--differentiation
    for beneficiaries in selecting sources of care, resulting in patients
    using less optimal and more costly care options. For example, no cost-
    sharing for emergency room (ER) care has contributed to almost double
    the ER utilization rate seen in civilian health plans. In addition, we
    have not increased out-of-pocket costs since the TRICARE program was
    first introduced.
        We are taking a number of steps to ensure the long-term viability
    of the TRICARE Program. First, we are taking an aggressive approach to
    health promotion and prevention. Operation Live Well is the overarching
    framework for a set of programs and Services we are offering to our
    military communities. We are also focusing our efforts on the Healthy
    Base Initiative. For this Initiative, 14 military installations and
    Defense agency offices around the world are participating in highly
    customized local efforts to improve health and well-being.
        Second, over the last 4 years, DOD has identified a number of
    efforts focused on reducing purchased care costs--to include the
    implementation of outpatient prospective payment, reimbursement changes
    for Sole Community Hospitals, and changes in how we reimburse the
    Uniformed Services Family Health Plan providers for our dual-eligible
    Medicare/TRICARE beneficiaries.
        Third, we are taking steps to improve the execution of the TRICARE
    Health Plan by better integrating the Services provided in our direct
    care and purchased care systems. As this generation of TRICARE
    contracts nears the end of its contract term, DOD is looking to reshape
    our contracts in ways that can improve integration with military
    medical facilities, reduce unnecessary overhead and achieve greater
    simplicity for the beneficiary and the government.
        Fourth, our fiscal year 2015 budget proposal includes efforts to
    modernize TRICARE, which has not changed since its inception in 1995.
    In this proposal, we plan to simplify and modernize the existing
    TRICARE program in ways that provide incentives for wellness, decrease
    health services overutilization, and allow beneficiaries to choose
    their providers. Preventive Services would be covered at no cost to
    beneficiaries, regardless of where they receive their care--MTF,
    network or out-of-network.
        Finally, we are focused on ensuring that our servicemember,
    families, and retirees continue to receive the best medical care
    possible. Regardless of the budget realities, that commitment and
    priority does not change. They deserve no less.
    Autism and Applied Behavior Analysis (ABA)
        The Military Health System provides one of the most comprehensive
    sets of specialized services for children with an Autism Spectrum
    Disorder (ASD) diagnosis, to include the provision of ABA, in the
    United States. The TRICARE Basic Program is a comprehensive health
    benefit plan offering a full array of medically necessary services to
    address the needs of all beneficiaries with ASD. TRICARE's Basic
    Program provides occupational therapy to promote the development of
    self-care skills, physical therapy to promote coordination/motor
    skills, speech and language therapy to promote communication skills,
    child psychiatry and child psychology to address psychopharmacological
    needs, and psychological testing. The full range of medical specialties
    to address the additional medical conditions common to this population
    are covered.
        All TRICARE family members with a diagnosis of an ASD, established
    by a TRICARE authorized provider, are eligible for ABA by a Board
    Certified Behavior Analyst (BCBA) or Board Certified Behavior Analyst-
    Doctorate-level provider (BCBA-D). Further, the Department is
    processing claims for additional ABA Services authorized under the
    Extended Care Health Option (ECHO) Autism Demonstration, extended to
    March 15, 2015. The central aspect of the ECHO Autism Demonstration is
    to provide reimbursement for one-on-one ABA services delivered by
    individuals who are not TRICARE-authorized providers. These non-
    certified individuals are referred to in the ECHO Autism Demonstration
    as ``ABA Tutors'' by TRICARE, or ``ABA Behavioral Technicians'' by the
    Behavior Analyst Certification Board (BACB). Also, under the added
    authority of the 1-year ABA Pilot Program established by section 705 of
    the 2013 NDAA (the ABA Pilot), a new interim TRICARE ABA reinforcement
    benefit for retired family members was implemented on July 25, 2013,
    modeled after the ECHO Autism Demonstration.
    Mental Health Support
        DOD considers the behavioral health of its servicemembers and their
    families a top priority. The TRICARE plan provides a generous and
    comprehensive mental health benefit for Active Duty, Reserve, and Guard
    servicemembers, retirees, and their families, including psychiatric
    outpatient, inpatient, partial hospitalization, and residential
    treatment services. To ensure access to this care, DOD has hired more
    behavioral health specialists, brought on Public Health Service medical
    professionals, expanded the TRICARE network, issued regulations to
    recognize the independent practice of certified mental health
    counselors, worked to further de-stigmatize mental health treatment and
    expanded the ways by which our beneficiaries can access mental health
    services.
        The requirements of the Mental Health Parity Act of 1996 and the
    Mental Health Parity Addiction Equity Act of 2008, as well as the plan
    benefit provisions contained in the Patient Protection and Affordable
    Care Act, do not apply to the TRICARE program. However, DOD fully
    supports the principle of mental health parity and has undertaken a
    complete review in order to assess and address any perceived gaps in
    parity. Should gaps be identified, DOD will request legislation and
    modify regulations to eliminate any barriers to medically necessary and
    appropriate mental health services.
    Traumatic Brain Injuries (TBI) and Post Traumatic Stress Disorder
            (PTSD)
        Since most Traumatic Brain Injuries (TBIs) incurred by
    servicemembers are mild (mTBI), the Department has focused on early
    identification to ensure effective mitigation and treatment of the
    physical, emotional, and cognitive effects of the injury. DOD is also
    investing heavily in TBI research with an emphasis on the development
    of diagnostic tools, evidence-based care protocols, and studies that
    follow TBI patients over time to better understand the course of the
    condition. This research has already led to advances in understanding
    what happens to the brain after a concussive event, including
    advancements in neuroimaging, biomarkers, and rehabilitation efforts.
        The long-term effects of TBI, including conditions that can occur
    after mTBI is another area of focus for the DOD. We know that a person
    will experience more symptoms and longer recovery times with higher
    numbers of concussions. Some of these symptoms may complicate recovery
    and are often associated with other conditions such as PTSD,
    depression, chronic pain, sleep problems, or substance use disorders.
    DOD has several programs in place to better understand the long-term
    effects of TBI and the effects that occur with it.
        A recent ``game changer'' in the field of TBI is the Defense and
    Veterans Brain Injury Center (DVBIC) developed guidance, a ``how to''
    manual on Progressive Return to Activity following mild TBI, which
    defines what ``rest'' should be after concussion, as well as outlines
    the steps to take and what to avoid in order for an individual to
    successfully return to pre-concussion activities. This tool is the
    first of its kind in the world.
        Following implementation of theater-wide policies, including the
    September 2012 DOD Instruction 6490.11 ``DOD Policy Guidance for
    Management of Mild Traumatic Brain Injury/Concussion in the Deployed
    Setting,'' approximately 16,300 servicemembers were screened for mild
    TBI/concussion following potentially concussive events in theater
    (August 2010 to December 2013). Of those screened, approximately 16.1
    percent (2,629) were diagnosed with mild TBI/concussion, which has been
    a consistent trend over the last 3 years.
        DOD continues to place great emphasis on policies and procedures
    related to Post-Traumatic Stress Disorder (PTSD). Refinements to
    policies and procedures for review of post-September PTSD cases have
    provided unprecedented levels of protections for our affected
    servicemembers. The Department remains committed to maintaining and
    improving policies and procedures to ensure fairness and equity in the
    review of all PTSD claims with a view toward appropriate disposition
    based upon the facts and circumstances of each individual case.
    Substance Abuse Program Policies
        DOD is taking steps to improve and sustain Substance Use Disorder
    (SUD) Services. These efforts include removing the ban on substitution
    therapies for the treatment of SUDs, revision of policy and changes to
    TRICARE coverage of SUD care, and formation of an Addictive Substance
    Misuse Advisory Committee in March 2011 to standardize SUD prevention
    and treatment efforts.
        In addition, DOD Instruction 1010.01, ``Military Personnel Drug
    Abuse Testing Program,'' was published on September 13, 2012, to
    establish standards for specimen and data collection on drug use and
    misuse and to direct the Services to issue guidance regarding
    participation in national anti-drug awareness, community outreach, and
    education campaigns. Finally, a new DOD Instruction 1010.04, entitled
    ``Problematic Substance Use by Department of Defense Personnel,'' was
    published on February 20, 2014. It establishes requirements for
    prevention, screening, and intervention for SUDs.
    Laboratory Developed Tests
        DOD is aware of industry and beneficiary concern with our policies
    regarding the reimbursement for select Laboratory Developed Tests
    (LDTs)--medical tests created and owned by individual laboratories for
    purposes of determining a diagnosis or providing information to guide
    potential treatment. We are in the process of proposing an expanded
    demonstration program to provide a pathway for the Department to
    reimburse laboratories for LDTs that are medically appropriate and meet
    the standard of care. We are committed to identifying and implementing
    administrative solutions that will be more responsive to rapidly
    evolving medical technologies.
    Care of Our Wounded, Ill, and Injured Servicemembers
        We have made great strides towards improving the disability
    evaluation of our wounded, ill, and injured servicemembers. In 2007,
    DOD and Department of Veterans Affairs (VA) created the Integrated
    Disability Evaluation System (IDES) to provide servicemembers a fairer,
    faster, and more transparent process to receive both their DOD and VA
    disability benefits. As of January 2014, the IDES has reduced the
    ``benefits cliff'' between military Service pay and disability
    compensation from 240 to 77 days. In our most recent IDES customer
    survey, 83 percent of servicemembers indicated satisfaction with the
    IDES process.
        The departments continue to improve the IDES process. We have
    increased our IDES staff and improved our timeliness, which has
    decreased DOD process times (106 days against a 105-day goal). We have
    created an electronic case file transfer capability to eliminate
    mailing paper records and are collaborating with VA on completion of
    its interface to the Veterans Benefits Management System that will
    enable both departments to process IDES cases electronically.
        We are not stopping there. We are implementing an IDES Quality
    Assurance Program to measure accuracy and consistency of Medical and
    Physical Evaluation Board decisions. Additionally, we are studying
    options to reform DOD's disability evaluation and temporary disability
    retirement programs. We will not have the recommendations and results
    of those studies until later this year at which time we will decide
    whether legislative relief is required for implementation.
    Electronic Health Records
        A critical force multiplier for our system of care and important
    element of our modernization priorities is to implement a new
    Electronic Health Record (EHR) in the coming years. Over the last 10
    months, we have made tactical changes in how we will work with the VA
    on this effort, but our strategic objectives remains the same: (1)
    Provide seamless, integrated sharing of standardized health data among
    DOD, VA, and private sector providers; and (2) Modernize the electronic
    software and systems supporting DOD and VA clinicians. The Department
    is now moving forward with our plan to procure a new EHR through full
    and open competition.
    Suicide Prevention
        Deaths from suicide in the U.S. Armed Forces increased between 2001
    and 2012, peaking in 2012. Preliminary 2013 data indicates this trend
    is reversing, with Active component deaths from suicide declining (18
    percent), and Reserve component deaths from suicides showing a slight
    increase (5 percent). Several more years of data will be needed to
    substantiate a trend. Reducing suicide in the military will always be a
    difficult task, one that broader society also struggles to accomplish;
    as suicide is the 10th leading cause of death in the general
    population.
        The DOD Suicide Event Report indicates that those who have died by
    suicide have predominately been younger, Caucasian males, in junior
    ranks who used a firearm. About half had deployed and a small
    percentage had seen combat. Less than half had a known mental health
    diagnosis.
        Regardless of the associated factors with suicides, the lives of
    our service men and women are too important for me to not make suicide
    prevention a priority. DOD has responded by focusing on resilience
    training, outreach campaigns that reduce stigma, conducting program
    evaluation and research, and increasing access to behavioral health
    care by increasing the size of its mental health system and embedding
    providers in primary care and line units, at home and abroad.
    Additionally, confidential peer support and resilience case management
    are key components in expanding venues for addressing this complex
    problem.
                     sexual assault prevention and response
        Preventing and responding to sexual assault is a top priority, and
    considerable efforts are underway to combat this crime. Our program is
    proactive, victim-focused, and multi-disciplinary, with leaders at all
    levels taking steps to establish a culture of dignity, respect, and
    professional values. We employ and must sustain a multi-pronged
    approach, which requires persistence and innovation in victim
    assistance, prevention, investigation, accountability, and assessment.
    A critical element to our approach is increasing victim confidence, so
    that more victims are willing to report. We know that our response to a
    report of sexual assault will impact future victims' decisions to
    report--and reporting is essential to delivering care and to holding
    offenders appropriately accountable.
        Our preliminary data for fiscal year 2013 shows a dramatic increase
    in reports when compared to all previous years. Historically, reports
    of sexual assault have increased about 5 percent per year since 2007.
    In fiscal year 2013, reports are up an unprecedented 50 percent with
    commanders at the center of our military justice system making
    disposition decisions. We assess this increase as consistent with a
    growing level of confidence in our response systems. This provides an
    indication that the wide range of sexual assault prevention and
    response initiatives fielded over the past year and a half are having a
    positive impact throughout the force, as more victims are reporting and
    accessing critical support.
    Status of 2013 and 2014 NDAA Progress
        In cooperation with congressional leadership, the Services are
    implementing a number of significant reforms put forward in recent
    Defense Authorization bills. In fact, the 2014 NDAA provided the most
    sweeping reform to the Uniform Code of Military Justice (UCMJ) since
    1968 with 16 different military justice provisions that enhance
    victims' rights and constrain convening authorities' power.
    Specifically, the 2014 NDAA included 33 different sections of law
    containing multiple provisions in each section. We have already taken
    action to put into effect three provisions: the prohibitions on
    accessions for those who have sexual assault convictions; the ability
    to conduct an expedited transfer of the suspect; and the mandatory
    referral of sexual assault incidents to independent Military Criminal
    Investigative Organizations.
        The 2013 NDAA contains 18 substantive provisions and requires five
    congressional reports. With the issuance of an updated DOD Instruction
    earlier this year, the vast majority of these provisions have been
    fully implemented. Four are still in progress. Two involve the
    independent Response Systems Panel review of the UCMJ and a separate
    Judicial Proceedings Panel review, both of which are continuing their
    work. The Panels' reports will be filed by their suspense dates, the
    first of which is June of this year. The two remaining policy
    provisions will be completed when our instructions on Reserve Component
    Line of Duty Findings for Health Care and the Military Equal
    Opportunity Program are issued. Of the five congressional reports,
    three have been completed with the submission of the Special Victims
    Capability report, the fiscal year 2013 Sexual Assault Prevention and
    Response Annual Report, and the report on General Officer reviews of
    separation of members who were sexual assault victims.
    Status and Progress of Secretary of Defense Initiatives
        In addition to the work of Congress, DOD continues to be proactive
    in fielding solutions that will make a difference in preventing and
    responding to sexual assault, particularly when the Secretary has the
    authority to do so. Secretary Hagel has directed the implementation of
    21 specific initiatives since May 2013. These actions are designed to
    empower victims, improve care, and enhance the administration of
    military justice. I wanted to highlight a few for you here today:

             Implementation of the Special Victims Counsel program,
            which offers sexual assault victims legal consultation and
            representation throughout the justice process. More than 185
            attorneys are now fielded across the Armed Forces.
             The Services have fielded evaluation methods to assess
            the performance of military commanders and enlisted leaders in
            establishing command climates of dignity and respect and
            adhering to SAPR principles.
             Another critical element of establishing the culture
            we desire is the Secretary's direction to elevate command
            climate surveys to the next commander in the chain of command
            to increase the level of accountability for maintaining a
            climate of dignity and respect.
             We have also now taken a best practice from one of the
            Services--the Marine Corps 8-day oversight report--and intend
            to make it a common practice across all of the Services. That
            policy is in final coordination and will ensure that general
            officers have oversight of the immediate response to a sexual
            assault report.

        Additionally, in coordination with the release of the Military
    Service Academy Report in January, Secretary Hagel directed five
    additional measures to enhance program effectiveness, advance the
    culture we desire, and expand alcohol policies at the Academies.
    Surveys
        DOD utilizes the Workplace and Gender Relations Survey of Active
    Duty Members, conducted by the Defense Manpower Data Center, to assess
    the prevalence rate of sexual assault and sexual harassment in the
    Active-Duty Force. DOD has comparable unwanted sexual contact rates for
    2006, 2010, and 2012. In fiscal year 2014, DOD survey will be conducted
    by an outside organization. RAND will design, analyze, and report the
    survey results in our Progress Report to the President in December 2014
    and the DOD Annual Report on Sexual Assault in the Military in April
    2015.
    Way Ahead
        Sexual assault is one of the most serious challenges facing our
    personnel and compromising our military readiness. We will continue our
    prevention efforts on all fronts and at all levels by educating all
    servicemembers, commanders, and leaders, and holding them appropriately
    accountable. We must preserve the system of justice and response
    systems that we have fielded and continue to improve upon; they are
    making a difference and motivating more victims to come forward. We
    will sustain our current intense level of attention, focus, and
    emphasis throughout the entire DOD.
              military personnel policy and family support issues
        While we remain attentive to all military personnel policies and
    family support programs, I want to highlight several recent areas of
    interest. We are working to address congressional concerns and I am
    committed to keeping open communications and working closely with you
    to address these important issues to our servicemembers and their
    families.
    Military Retirement System
        While not part of DOD's fiscal year 2015 proposals, DOD completed
    its 2-year review of military retirement. Earlier this month, Acting
    Deputy Secretary of Defense Fox sent a letter to the Military
    Compensation and Retirement Modernization Commission and Congress that
    offered four military retirement design options for consideration: the
    current retirement system, the ``cost-of-living adjustment (COLA) minus
    one,'' and a white paper that outlines two retirement design concepts
    developed by the Department.
        DOD does not specifically endorse any of the four design options
    submitted to the commission, but we offered these four options for
    consideration and further deliberation. DOD, however, continues to
    firmly support the position that any new retirement system must be
    ``grandfathered'' to protect servicemembers currently serving and
    current retirees.
    Women in the Services
        DOD is proceeding in a measured, deliberate, and responsible manner
    to implement changes that will enable servicemembers to serve in any
    capacity based on their abilities and qualifications and not their
    gender. Using the Joint Chiefs' guiding principles to ensure successful
    implementation, the Services and the U.S. Special Operations Command
    (SOCOM) are conducting thorough doctrine, training, education,
    facilities, and policy analyses to ensure deliberate and responsible
    implementation. DOD is committed to opening positions and occupations
    when and where it makes sense while preserving unit readiness,
    cohesion, and the quality of the All-Volunteer Force.
        Implementation through 2016 will be an evolutionary process. Since
    start of the Women in Service Review effort in 2012, DOD has notified
    Congress of our intent to open approximately 57,000 positions that were
    previously closed to women, and we look forward to expanding
    opportunities for women into all newly opened positions and occupations
    within the Armed Forces, to the fullest extent, over the next 2 years.
    Religious Accommodation
        DOD has the responsibility to safeguard the First Amendment rights
    and the free exercise of religion for all military personnel. DOD
    places a high value on the rights of personnel and their families to
    observe the tenets of their religions and recognize that the free
    exercise of religion is an important element of the operational
    readiness and well-being of our force.
        DOD, as well as its respective Services, has, through policy and
    practice, consistently sought to strike the proper balance in
    respecting members' religious practices and maintaining military
    operational readiness.
        To maintain this balance, DOD revised and published policy in DOD
    Instruction 1300.17, Accommodation of Religious Practices within the
    Military Services, to ensure the protection of rights of conscience of
    members of the Armed Forces in accordance with the 2013 and 2014 NDAA.
    Specifically, this policy balances and protects individual expression
    of sincerely held beliefs with military readiness and indicates to
    servicemembers and their commanders that requests for religious
    accommodation will be considered on a case-by-case basis.
        To ensure more specific protections for the chaplains, DOD also
    revised policy in DOD Instruction 1304.28, Guidance for the Appointment
    of Chaplains to the Military Departments. Chaplains are protected from
    being required to perform any rite, ritual, or ceremony that is
    contrary to the conscience, moral principles, or religious beliefs of
    the chaplains, or to discriminate or take any adverse personnel action
    against a chaplain, including denial of promotion, schooling, training,
    or assignment, on the basis of the refusal by the chaplain to perform
    such duties. Because chaplains are servicemembers, their rights are
    also protected in DOD Instruction 1300.17.
        In summary, DOD policies more clearly provide for individual
    expressions of religious beliefs and strive to accommodate requests for
    religious accommodation. If concerns arise, commanders of the unit
    involved handle these issues on a case-by-case basis with advisement
    from chaplains to find the best avenue in balancing religious freedoms
    with mission accomplishment.
    Diversity Management and Equal Opportunity
        The purpose of the Defense Equal Opportunity Management Institute
    (DEOMI), under my oversight, is to enhance mission readiness by
    promoting human dignity through education and research in equity,
    diversity and cultural competence. DEOMI's primary mission is to
    enhance unit combat and operational readiness and organizational
    leadership and cohesion by training DOD military personnel assigned to
    units as equal opportunity advisors (EOAs) to military commanders.
    DEOMI has trained thousands of EOAs in its 43 years of existence and
    recently celebrated 30 years of accreditation with the National Council
    on Occupational Education.
        Recent congressional and media interest have focused on DEOMI after
    military members in the field identified in their equal opportunity
    training certain organizations as extremists or hate groups.
    Maintaining or relating lists that identify organizations as extremists
    or hate groups is inconsistent with DOD policy and DEOMI training.
    DEOMI does not support or endorse any entities list of extremist
    organizations or hate groups.
    The Military Tuition Assistance (TA) Program
        DOD supports servicemembers in the pursuit of their educational
    goals via the military TA program, which helps to defray the rising
    cost of tuition. Given the current and projected fiscal environment, we
    must continually evaluate programs across DOD and provide guidance to
    the Services to ensure consistency. Each year, a third of our
    servicemembers enroll in post-secondary education courses leading to
    associates, bachelors and advanced degrees. During fiscal year 2013 we
    saw over 827,000 course enrollments, and more than 55,000
    servicemembers earn degrees and certifications. This statistic has held
    steady over the previous few years.
        Ensuring the quality of education provided our servicemembers is
    essential to DOD. Underpinning this effort is DOD's requirement that
    all post-secondary institutions that participate in the TA program must
    be accredited by an accrediting body recognized by the Department of
    Education. The implementation of the requirements in Executive Order
    13607 makes it easier for servicemembers and veterans to make informed
    decisions regarding their educational choices and helps counter
    deceptive practices by some educational institutions.
        Starting in summer of 2013, the DOD, VA, Department of Education,
    and agency partners, including: the Department of Justice, the Consumer
    Financial Protection Bureau. and Federal Trade Commission, began
    implementing pieces of the legislation. These efforts included
    launching a student complaint system. This system provides a
    centralized, online tool for students to provide feedback on schools.
    The Postsecondary Education Complaint System went on line on January
    30, 2014. The system ensures judicious stewardship of taxpayer dollars
    by increasing and improving oversight of the educational programs
    offered to our servicemembers by the 3,245 educational institutions
    that signed an MOU with DOD agreeing to provide special protections for
    military students.
        DOD is committed to offering high quality, comprehensive, lifelong
    learning opportunities for servicemembers and effectively delivering
    voluntary education programs that meet the changing needs of the
    military.
                support for military families with special needs
        DOD continues to make progress addressing gaps in Services
    supporting military families with special needs. At the forefront of
    this effort is a multi-year functional analysis of the current
    Exceptional Family Member Program (EFMP), which will standardize the
    EFMP to be completed across the military Services. The goal is to
    provide families with the same level of access to the program
    regardless of location or Service affiliation, to include uniform
    procedures to support timely identification and enrollment and to
    centralize management of cross-service data. A working group within DOD
    is being formed to further address challenges for families with special
    needs. Training has already been conducted on the new Quick Reference
    Guide and Family Needs Assessment form.
    Future of Servicemember and Family Support--Efficiencies and
            Transformation
        The Task Force on Common Services for Servicemember and Family
    Support Programs conducted a joint 1-year senior-level review of total
    cost and methods of providing common Services for military and family
    programs DOD-wide. It explored 15 different support areas in detail
    (such as child care, youth, family programs; lodging; Exceptional
    Family Member Program; personal financial management programs) and
    documented more than 200 actionable recommendations to improve
    effectiveness, increase economies of program delivery, and reduce
    related overhead expenses. The results suggest that there is
    significant room for improvement in cooperation and collaboration, with
    the potential for consolidating certain kinds of support to all, with
    no impact to the end user.
                               transition support
        Our commitment continues as we assist our servicemembers transition
    successfully to civilian careers and veteran status. Transition
    assistance is a vital to aiding our servicemembers, spouses, and family
    members. We will continue to work closely with the VA, Department of
    Labor (DOL), and other Federal, State, and local entities to coordinate
    our efforts to better meet the needs of those who have served our
    Nation in uniform.
    DOD-VA Backlog
        An increasingly important element of support that we give to all
    servicemembers is the careful regard shown when they transition out of
    the U.S. military, especially those who require care. To that end, we
    maintain a close collaborative relationship with our counterparts in VA
    through executive committees for benefits, health and information
    sharing.
        The backlog of Service-related disability benefit claims is a major
    concern. DOD has refined our processes whereby we respond to VA
    requests for personnel and medical information required to finalize
    veterans' claims. These include Service central cells and single points
    of contact to manage individual Service Treatment Records.
    Additionally, we have provided military liaison officers to assist VA
    with a more efficient and accurate transfer of necessary information.
    In fact, as of January 1, 2014, we now provide Service Treatment
    Records in an electronic format, and we are on track to develop
    interoperable electronic health records. These initiatives will help VA
    to focus on the current backlog and preclude future disability benefit
    claims from becoming a part of the backlog.
    Transition Assistance Program
        DOD, along with its interagency partners (VA and DOL), has made
    significant improvements to the content, delivery, and availability of
    the Transition Assistance Program (TAP). We have implemented Career
    Readiness Standards that servicemembers meet prior to separation. We
    launched a comprehensive new curriculum--Transition GPS (Goals Plans
    Success), with a robust set of core training modules (pre-separation
    counseling, VA benefits briefing, DOL employment workshop, including
    resume preparation) and specialized optional tracks (assessing higher
    education track, career technical track and entrepreneurship track)
    tailored to a servicemember's goals and interests.
        Transition GPS is now also accessible virtually to all
    servicemembers and spouses even after separation. Also, in January, we
    completed a Memorandum of Understanding that was signed by all
    interagency partners to include VA, DOL, Small Business Administration,
    the Office of Personnel Management, and the Department of Education.
    This MOU codifies our shared commitment to transitioning servicemembers
    and establishes formal roles and responsibilities for all partners
    contributing to Transition Assistance.
        As part of our 2015 Agency Priority Goals, our next major step is
    to embed the Transition Assistance Program throughout the military
    lifecycle, beginning as early as accession. Rather than confining
    career readiness preparation to a servicemember's final months of
    service, this model will provide our servicemembers with knowledge and
    support to conduct proactive career planning early and often in their
    military careers. Implementation of the Military Lifecycle Transition
    Assistance Program model will be completed by the end of 2014.
    The Yellow Ribbon Reintegration Program
        The Yellow Ribbon Reintegration Program (YRRP) continues to evolve
    to meet the unique resilience and transition challenges facing the
    Reserve component community. Through fiscal year 2013, YRRP has served
    1,326,758 servicemembers and families through 10,382 events hosted by
    the Reserve components. In response to high RC unemployment rates, as
    well as the accompanying unemployment compensation (UCX) costs, YRRP
    partnered with Employer Support of the Guard and Reserve (ESGR) to
    launch Hero2Hired (H2H), a comprehensive career Services program
    containing tools that help connect job seekers with military-friendly
    employers. H2H tools include a military skills translator; resume
    builder; military-friendly job listings; career exploration tools; and
    education and training resources. Since its launch, H2H has registered
    more than 173,878 job seekers and 21,530 employers through https://
    h2h.jobs and supported 13,068 direct hires through 56 Employment
    Transition Coordinators.
                                   conclusion
        During the past 13 years, 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. DOD is committed to
    our servicemembers' success. Now we need your help in the most ready
    and capable force that will apply the lessons-learned from the past and
    prepare to address the challenges of the future.
        Thank you for your continued support for our Total Force.

        Senator Gillibrand. Thank you very much for your testimony.
        Senator Graham is going to submit his opening statement for
    the record at this time.
        [The prepared statement of Senator Graham follows:]
                  Prepared Statement by Senator Lindsey Graham
        Thank you, Madam Chairwoman. I look forward to hearing from our
    witnesses this morning concerning the administration's proposed cuts to
    pay and benefits to servicemembers in the 2015 budget request;
    specifically, why these changes cannot be made, if necessary, after the
    Military Compensation and Retirement Modernization Commission reports
    it finding in early 2015. I also want to thank the witnesses for
    appearing today and for their willingness to serve our Nation.

        Senator Gillibrand. I will start with Secretary Wright.
        With the MCRMC set to report out about a comprehensive
    approach next February, what is the rationale for the timing of
    these proposals? Why not wait until the commission reports?
        Ms. Wright. Thank you, ma'am. Frankly, with the proposals
    that we are submitting in this budget, we know DOD has gone
    through enough rigor and enough analysis to submit them. We are
    looking to the commission. We have submitted four retirement
    proposals to them. As you see, there is nothing in the budget
    that looks at retirement. We are waiting until they come back.
    We have submitted four different proposals to them. We are
    waiting for them to do the rigor and the analysis on those
    retirement proposals for us to look at moving forward on them.
        But on the BAH, the commissary, and the pay, we really
    believe that we have looked at enough information, that we have
    gathered all of the data in order to make some of these very
    difficult choices to balance between both compensation and
    benefits, and readiness and modernization.
        Secretary Hale. May I just add to that briefly? As
    Secretary Wright said, we think we have the information. But
    the budget caps are in effect right now. If we wait 2 years
    until we have the commission results, and it will take that
    long, then we are going to have to take all this money out of
    readiness and modernization, and we think that will destroy a
    balance and damage national security. So that is why we are
    doing this.
        We would rather wait. We would rather not do it. But the
    limits are in effect, and we don't see them changing.
        Senator Gillibrand. But there is no requirement that you
    have a certain amount of savings out of every aspect of
    spending within the military. You don't have to silo every
    budget and find savings in every budget. You in your opening
    statement said that it was important that you offer pay
    packages that are sufficient that we keep an All-Volunteer
    Force.
        But if you're looking at the enlisted rates E-2 through E-
    9, you're talking about salaries from $20,000 to roughly
    $70,000, and so much of what you're cutting is considered
    compensation to men and women who serve. For example, having a
    pay raise that is equivalent at least to the cost-of-living
    adjustment (COLA). So, yes, we can cut the rate by which their
    pay increases, but if you cut it less than the COLA, it just
    means their paycheck doesn't go as far. If you cut their
    housing allowance and have them have some kind of co-pay or a
    percentage, you're basically just undercutting how much is
    defrayed from the housing allowance. If you cut TRICARE through
    your modernization efforts, again that is out-of-pocket money
    for retirees or for families. If you limit what places they can
    go to get services, what it means is you have much longer drive
    times. If you are no longer Active Duty or your family doesn't
    live near a base, you may have to drive 90 miles or 100 miles
    to get basic services.
        Commissaries, which, I can understand they filled a need
    before that isn't necessarily true today. But again, average
    personnel, they see about a 30 percent savings for their weekly
    grocery bills.
        So we offer a set of benefits and pay to incentivize our
    forces to take on these very tough jobs and make the sacrifices
    of having to relocate your family every 2 years, every 3 years,
    have to sacrifice that your spouse may not be able to work
    because of that relocation. So we really are changing the deal.
        My concern is, if we have this commission and they are
    going to do a more balanced approach, it seems to be a missed
    opportunity to not wait to see what they can come up with as
    well, because these are, as you've said in your testimony, very
    tough cuts to figure out. This was not an easy process. But
    these are real cuts.
        So if you're a family that's making $20,000 a year, or
    $30,000 a year, that 30 percent of groceries that you were just
    taking away, that savings, matters. So I would like to push
    back a bit that this is easy. I just don't think $2 billion in
    1 year is easy.
        Secretary Hale. Let me start, and then I would ask
    Secretary Wright if she wants to add.
        I agree with what you said. These are tough choices. The
    Chiefs had meeting after meeting debating these very points.
    But if we choose or if you choose to go back on these
    proposals, you're going to have to take it out of somewhere. I
    don't think you want to take it out of modernization. We could
    have the same debate about whether we are buying enough
    aircraft and ships. I know, or I hope you don't want to take it
    out of readiness. But those are the choices you have.
        So we feel we have provided you a balanced proposal.
    Incidentally, you used the word ``cuts.'' I respectfully
    disagree. They are slowing the growth. We are not cutting
    anybody's pay and allowances. We are slowing the growth to free
    up money so that we can keep them ready in case they have to
    put themselves in harm's way, and that is what the Chiefs have
    repeatedly said.
        We feel strongly that we need to provide the training and
    maintenance and the equipment to give them the best opportunity
    if they have to be in harm's way, and we think our proposal
    does it. But these are difficult choices, and I'd fully agree
    with you in that regard.
        Senator Gillibrand. Thank you, Mr. Secretary.
        My time has expired. I have questions that I will submit
    for the record and if we have a second round, specifically
    about the TRICARE changes, the Defense Finance and Accounting
    Service cuts, also concerns about benefits for families that
    have children with special needs, educational challenges,
    autism and other developmental disabilities. That is still an
    issue that Secretary Wright and I have worked on in the past
    that is a very important issue for me. So in the second round,
    if we have one, or for the record, I will submit those
    questions.
        Senator Graham?
        Senator Graham. Thank you, Madam Chairwoman.
        I want to associate myself with the chairwoman's comments.
    I understand where you're coming from. You have a budget cap,
    and this is the world we've created in a bipartisan fashion,
    which seems to me every day becoming more and more a bizarre
    world. I hope we'll reevaluate what we've done to the military
    and to some other vital programs and see if we can come up with
    a more sensible way to make budget cuts.
        Secretary Wright, the commissaries, $1.4 billion basically
    is salaries and transportation; is that right?
        Ms. Wright. Yes, sir.
        Senator Graham. The base exchange (BX), post exchange (PX),
    most of that is non-appropriated fund activity; is that true?
        Ms. Wright. Yes, sir.
        Senator Graham. If you get people going off base in terms
    of shopping, what effect would a change in commissaries have on
    the PX or the BX?
        Ms. Wright. So, right now, as I have indicated, we are not
    looking to close any commissaries, and we are looking for our
    commissary population to remain. I understand that our budget
    does bring it down from a 30 percent savings to somewhere
    around a 10 percent savings, but it is still a savings.
        However, to your point, if people do not use the
    commissary, we suspect that they also won't come into the PX.
    We understand that, and so the PX savings and/or what they
    contribute to the Morale, Welfare, and Recreation (MWR) fund
    may go down. But at this point in time, with our research and
    what we're looking at, we believe that we are on firm ground.
        Senator Graham. For the benefit of the committee here, in a
    prior life I dealt with appropriated fund and non-appropriated
    fund activities and spent a lot of legal time figuring out what
    account was the right one to be looking at and how you could
    move money around.
        The PX and the BX, whatever money they make, about 40
    percent of the people that work at these places are family
    members of Active Duty or retired veterans; is that correct?
        Ms. Wright. In the commissaries? Yes, sir.
        Senator Graham. What about the BX or the PX?
        Ms. Wright. I'm going to defer to Mr. Vollrath for that,
    please, sir.
        Secretary Vollrath. Sir, I don't have a specific number for
    you, but it's about the same.
        Senator Graham. Yes. So, basically, you've moving your
    families around a lot, and if you have a teenage son or
    daughter, it's a place you can go be a bag person. Your spouse
    can work maybe part-time at the BX, and that's some money for
    the family, and I think that's what Chairwoman Gillibrand is
    trying to say. The structural changes do have a ripple effect,
    and if the shopping becomes less at the commissary, eventually
    people are less likely to shop at the BX and PX.
        I know you're shaking your head.
        The MWR account, the quality-of-life issues that are pretty
    much funded by the servicemembers themselves take a hit. Could
    you maybe--what's your name, sir?
        Secretary Vollrath. Vollrath.
        Senator Graham. Do you generally agree with what I'm saying
    as a concern?
        Secretary Vollrath. Fundamentally, yes, because in the
    deliberations, in taking a look at the commissary reduction, we
    did have discussions about potential impacts on the exchange
    system.
        Senator Graham. Yes.
        Secretary Vollrath. The leaders of the exchange system told
    us that if the patronage in the commissaries goes down, that
    they would expect the patronage in the exchanges to go down
    because of the habits of the patrons now.
        Senator Graham. The auto hobby shop, and you can just name
    whatever MWR activities you might have on base, eventually get
    hit, right?
        Secretary Vollrath. That depends on where the commanders
    and the local commanders want to spend the MWR dividend.
        Senator Graham. They'll just have less choices because
    they'll have less money.
        Secretary Vollrath. Correct. The money won't go as far.
        Senator Graham. It's not just one thing but they will have
    an inventory of MWR activities and they'll have to delete some
    of them.
        I just bring that up to show that one thing is connected to
    the other.
        Mr. Hale, we've had great discussions over the last several
    years about budgets. Would it be fair to say if Congress could
    find $2 billion outside of DOD to interject into this budget
    process this year, a lot of these choices that we're talking
    about, structural changes, could be delayed until the
    commission reports back?
        Secretary Hale. If you find another way to offset it, yes.
    I'm not going to go to where you do that. I'll leave that up to
    you to do that. But if you find a way to offset it, I guess
    that's true. But given the budget caps and the seeming no
    chance of changing them, it's going to come out of defense.
        Senator Graham. I got you.
        Here's the challenge for the subcommittee, for all the
    bright minds at this table, excluding myself. [Laughter.]
        Could we find $2 billion outside DOD, or even inside DOD,
    that would avoid us having to make structural decisions about
    commissaries, about TRICARE and other things, about
    compensation, which I will eventually probably support? I'd
    just like the commission to do it. It's not that I don't trust
    your work product. We have ourselves in a bind here. You have a
    commission studying the same subject matter. You have an
    administration that has to come up with money in the budget
    caps. You're doing what we required you to do.
        So if we could find a $2 billion safety valve here, I think
    it would prevent them from having to just ignore the personnel
    account and raid other accounts and allow the commission to do
    its work. To me, that would be a great exercise, because the
    structural changes that are going to come--and they will come--
    have to be better thought out, I think. If you're going to ask
    people to give up housing allowances, pay 5 percent or
    whatever, I'd just like to make it a more thoughtful process
    and be able to go to these folks and say we've had people, the
    best minds in the country outside of the administration,
    outside of Congress, to look at this. I just think it would
    make sense and be easier for us to sell.
        So that's my challenge to the subcommittee, not to you
    guys, to see if we can find $2 billion.
        Secretary Hale. Can I add two thoughts? First, I think
    these are well thought out. There were more than a dozen
    meetings the Joint Chiefs participated in fully. In the end,
    with all due respect to the commission, I think the Chiefs have
    a great deal of expertise and they are the ones that you want
    to make recommendations to you.
        Second, it's just not the $2.1 billion in fiscal year 2015.
    If you delay all these, the whole budget slips. So we're going
    to have to take another $10 billion or so out of the--I don't
    know the exact number, but if you delay it a year or probably
    2----
        Senator Graham. I don't want to--you said just a few
    minutes ago that if you could find $2 billion----
        Secretary Hale. In fiscal year 2015. But then we will have
    to turn around in 2016 through 2020 and, because you've delayed
    it probably 2 years to wait for the commission, probably
    another $15 billion or so in that period. I don't know the
    exact number. I will supply it for the record. But what you're
    doing is forcing further cuts in perhaps numbers of personnel
    or modernization in the out-years.
        [The information referred to follows:]

        By delaying the proposed pay and compensation changes included in
    the fiscal year 2015 President's budget by 2 years in order to wait for
    the results of the Military Compensation and Retirement Modernization
    Commission, the Department of Defense would lose approximately $18
    billion of the savings assumed within the current Future Years Defense
    Program (fiscal year 2015 to fiscal year 2019). With the topline fixed,
    these added costs will lead to cuts in needed funds for readiness or
    modernization.

        Senator Graham. I look at it the other way. I'm looking at
    trying to make structural changes that will affect quality-of-
    life in a more reasoned way. That's what I'm looking at, and I
    think $2 billion would help. Everything does affect the other.
    That's why I'm going with this thing. I will be your strongest
    advocate for structural changes because you're going to have
    to, but not this way.
        Thank you.
        Senator Gillibrand. Senator King?
        Senator King. Thank you, Madam Chairwoman.
        Mr. Hale, it would help me to understand the context of
    this if, for the record, you guys could produce a graph, an
    historic graph of compensation costs per capita, not
    compensation costs as a percentage of the defense budget,
    because that relates to the number of soldiers. I'm looking for
    what has been the growth over, say, a 10-year, 15-year period
    of compensation costs; and then secondarily, compensation costs
    per capita as a percentage of the DOD budget. Because I get 50
    percent, 30 percent, 65 percent, and I'm trying to separate
    that from numbers of people to the package.
        If you want to respond, that's fine. But I assume----
        Secretary Hale. We can do that for the record. If it helps,
    I'll say that since 2001 the pay and benefits for military
    personnel have gone up about 40 percent more than the growth in
    the private sector. So we've seen--we created a new healthcare
    system, we had higher pay raises than the Employment Cost Index
    (ECI), we phased out all the out-of-pocket costs in the
    Department of Veterans Affairs (VA). So we've seen sharp
    growth.
        Now, some of that was needed to make up for problems in the
    1990s, but we do believe our analysis says we can recruit and
    retain the people we need even with these modest slow-downs in
    compensation that we're proposing now. But we will supply the
    details for you.
        Senator King. You understand what I'm looking for.
        Secretary Hale. I do.
        [The information referred to follows:]

        The attached graphs provide the historical military personnel
    compensation costs per capita requested for the record. The first graph
    shows the Department of Defense's (DOD) base budget military pay and
    benefit costs for fiscal year 2001, fiscal year 2012, and the fiscal
    year 2015 President's budget request along with the total Active and
    Reserve component end strength levels. For fiscal year 2001, these
    costs totaled $99.5 billion and supported a total end strength of
    2,253,650, which equates to an average cost per end strength of
    approximately $44,200. By fiscal year 2012, pay and benefit costs
    increased to $183.8 billion while the total end strength actually
    decreased to 2,239,942--equating to an average cost per end strength of
    roughly $82,000. Therefore, over the 11-year period from fiscal year
    2001 to fiscal year 2012 the average pay and benefit cost per end
    strength increased by 86 percent.
        The second graph attempts to provide per capita figures for Active
    component personnel only by excluding the Reserve component Military
    Personnel Appropriations and Medicare-Eligible Retiree Health Care
    Accrual costs from the numerator and the Reserve component end strength
    from the denominator. However, it should be noted that DOD's military
    pay and benefit costs include many programs and in-kind benefits (e.g.,
    commissaries, family programs, et cetera) that are utilized or
    available to all military and their families (Active component and
    Reserve component), and in some cases retirees and their families, but
    are not specifically funded or easily allocated by component.
    Therefore, these costs are fully allocated to the Active component in
    the per end strength figures shown.
        As shown in the second graph for fiscal year 2001, Active component
    pay and benefit costs totaled $88.3 billion and supported an Active
    component end strength of 1,385,116, which equates to an average cost
    per Active component end strength of approximately $63,700. By fiscal
    year 2012, pay and benefit costs increased to $161.4 billion while
    Active component end strength increased by about 1 percent to
    1,399,622--equating to an average cost per end strength of roughly
    $115,300. Therefore, over the 11-year period from fiscal year 2001 to
    fiscal year 2012, the average pay and benefit cost per Active component
    end strength increased by 81 percent.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Senator King. Of course, the other question is, this is a
    business, a business that's very dangerous, but the real
    question is recruiting and are you able to recruit and retain
    the people you need based upon whatever the compensation
    schedule is.
        Secretary Hale. We believe we can.
        Senator King. I'd appreciate doing that, and I think it
    should be noted for the record that you didn't ask to be thrown
    into this situation, that this is a zero-sum game that you're
    in, in terms of the way the budget caps work, and that every
    dollar that stays in compensation is a dollar that comes out of
    readiness or modernization, and Congress has certainly had a
    major role in creating that situation, and I think we have to
    own up to that.
        The other important thing, it seems to me, is to be
    thinking about prospective changes, because even though some
    changes--for example, on retirement--should only affect new
    people, and they may not take effect for 20 years. They may not
    save us money, but 20 years has a way of coming. We learned in
    the budget deal that changes in current retirees' structure
    isn't going to fly, at least not for more than about 42 days, I
    think.
        But we really do need to think about prospective changes
    that will provide savings to future presidents and future
    Congresses.
        Secretary Wright?
        Ms. Wright. Sir, I fully agree, and DOD agrees. The four
    proposals that we sent to the commission went with the
    understanding that those individuals that are presently in the
    Services under the retirement system that they're in need to be
    grandfathered, because that's the retirement system that they
    signed up for. So we understand that the savings won't come
    immediately, or maybe there won't even be savings, but the
    retirement system can be different.
        But the issue is that grandfathering, to use that term, is
    extremely important when we talk about the retirement system.
        Senator King. The other piece, and you alluded to this, is
    what people sign up for. In other words, what are the
    expectations, and what is in writing when you sign that paper.
    Now, I realize 18-year-olds probably don't study the fine print
    of the enlistment form, but it seems to me that that's an area
    that deserves some thought in terms of bold print, this is what
    you're committing to, and this is what the likely compensation
    is, this is the retirement plan, so that we can have some clear
    understandings going forward for people, what it is they're
    committing to.
        Ms. Wright. Sir, if I can add, I'm a retired officer, and I
    was an enlisted soldier, and when I signed up, you sign an oath
    of office. It doesn't, to my knowledge--and, of course, I was
    young when I did it, but it doesn't have on there what the
    retirement system is, what the healthcare system is, what the
    pay system is. It has that you will support and defend the
    Constitution of the United States against all enemies, foreign
    and domestic.
        I will turn it over to Mr. Vollrath, who is also retired,
    to add if there is more to that than I remember.
        Secretary Vollrath. You have a very good memory, but so do
    many other Americans.
        Senator, I would agree with your point. The young recruit,
    in most cases, does not start out saying ``I think I'm going to
    go for 20 years because it's just a knockout retirement.'' They
    primarily join for various other reasons. But in the back of
    their mind, we know that is also there.
        Equally important, what we know is that the influencers of
    those young men and women understand what the long term means.
    I don't know what anybody's experience on the committee has
    been, but in my experience, I can't tell you how many people I
    have bumped into in my lifetime that said: ``If I'd only stayed
    in the military,'' and they are referring to the retirement and
    the benefits, et cetera.
        So what we do know when it comes to recruiting is that the
    influencers understand the system, and that also drives that
    new recruit and the decision of that young man or woman. So it
    is an art, unfortunately. It's not a science.
        Second, I would agree with your point. I think if and when
    we do change the retirement system, we need to be very clear,
    right up front with the new cohorts coming in, as to what that
    retirement system is, because those that are grandfathered will
    have one set of experiences and beliefs, and that will have an
    effect on the new cohort coming in.
        Senator King. Is there a potential issue or problem of
    recruiters making promises or assertions that may not turn out
    to be, or could--in other words, the paper doesn't say it, but
    the recruiter says ``sign here and you have 20 years and
    lifetime''?
        Secretary Vollrath. That is certainly a possibility, and we
    know that from time to time it does occur. But, frankly, we
    work overtime to make sure that the recruiters have the facts
    and only the facts and put forth that in their recruiting
    efforts.
        Senator King. Thank you.
        Thank you, Madam Chairwoman.
        Senator Gillibrand. Senator Lee?
        Senator Lee. Thank you, Madam Chairwoman.
        Thanks to each of you for being here. It's an honor to have
    you here with us.
        Secretary Wright, I have a few questions for you. I was
    alerted to a situation a few weeks ago that occurred at the Air
    Force Academy involving the removal of a Bible verse from a
    whiteboard outside of a cadet's dormitory room. Are you
    familiar with that incident?
        Ms. Wright. Yes, sir, I am.
        Senator Lee. Okay. Let me just restate the basic facts as
    I'm aware of them and then tell me what I'm missing.
        Based on the information that I and my staff have been able
    to obtain from the Air Force, the cadets at the Air Force
    Academy use these whiteboards, according to the Air Force, in
    order to display ``items, quotes, or other things that reflect
    their personality or from which they draw inspiration.''
        The cadet in question made this display, wrote this Bible
    verse up on his whiteboard, found himself being reported
    through his chain of command within the cadet structure, and
    also apparently the commanding officer became involved in the
    situation and used it as what someone described as a teachable
    moment, and the cadet apparently took it down.
        Now, those who have provided this account said that he took
    it down voluntarily, although I do find the use of the word
    ``voluntarily'' to be curious given that it occurred after
    intervention from those in his chain of command.
        The Bible verse in question that he was quoting was not one
    that I would regard as offensive. It was from Galatians,
    chapter 2, verse 20, which is fairly innocuous, as I read it.
    It says simply, ``I am crucified with Christ, nevertheless I
    live, yet not I but Christ liveth in me, and in the life which
    I now live, in the flesh, I live by the faith of the Son of God
    who loved me and gave himself for me.''
        Now, last year, the Senate Armed Services Committee passed
    an amendment that I introduced in connection with the National
    Defense Authorization Act (NDAA) for Fiscal Year 2014. The
    amendment I introduced passed in this committee, survived the
    various iterations of the NDAA for Fiscal Year 2014, and it now
    appears in section 532(a). It says, ``Unless it could have an
    adverse impact on military readiness, unit cohesion, and good
    order and discipline, the Armed Forces shall accommodate
    individual expressions of belief.''
        Now, I regard this as an individual expression of belief.
    It's also an expression of something from which this cadet
    apparently draws inspiration. So my question for you is how can
    this particular Bible verse quoted by this cadet from the Book
    of Galatians simply declaring his faith from which he draws
    inspiration, placed on a board that traditionally is used for
    that purpose, to reflect that cadet's personality and sources
    from which the cadet draws inspiration, how can that be deemed
    inappropriate?
        Ms. Wright. First, sir, I am not as familiar with the case
    as it appears you are, and what I have heard from the members
    of the Air Force, I have a little conflicting information. So
    to address the case right now I think would be inappropriate,
    but I would like to come over or bring someone over
    specifically to address this case myself and/or somebody from
    the Air Force.
        But globally, for DOD, we do support freedom of speech, and
    we totally support the freedom to exercise your religion. I
    will be honest with you. I'm of the Catholic faith. I have a
    mass card of St. Theresa on my desk which I use as my faith. I
    don't start out my meetings that way because as a leader of
    32,000 people, that would be inappropriate. But I use that.
        So I think that common sense needs to clearly be applied
    when we talk about whether or not they can have an article of
    faith or something like that on their desk or on their wall.
    But when you're a leader, you have to understand that you have
    all faiths that you command, and you must respect everybody's
    faith.
        So again, I don't know the very specific facts of the Air
    Force case. I don't want to get into that in public.
        Senator Lee. You said a moment ago that your understanding
    of it is a little bit different than mine. Can you enlighten me
    as to how it was different?
        Ms. Wright. Sir, I heard that it wasn't he that wrote the
    verse. I heard it was his roommate. But I need to make sure
    that I am getting the correct information if it conflicts with
    your information. I think the bottom line is we both need to
    know exactly the end state.
        Senator Lee. Right, right.
        Ms. Wright. So, if you don't mind, sir, if I can come over
    and bring the Air Force A1, the person in charge of personnel,
    that would be great.
        Also, Mr. Vollrath, do you have anything to add on the
    religious----
        Secretary Vollrath. No, I don't, Secretary Wright, except
    just to reinforce what she said. We certainly are trying to
    comply with the law, and intend to. It is fundamental to free
    speech and the exercise of religion. It is part of what makes
    America America.
        Senator Lee. Certainly, and I definitely agree with that.
    My time is winding down, and so I appreciate the offer to come
    by and inform me as to what the facts were.
        Ms. Wright. Yes, sir.
        Senator Lee. As to whether it was this cadet or whether it
    was the cadet's roommate, somebody wrote it----
        Ms. Wright. Yes, sir.
        Senator Lee.--as an expression of their faith, and somebody
    took it down. The fact that it was taken down is itself
    alarming, much as it would be alarming, I would think, if
    someone came to you and removed something from your desk that
    is a source of faith and inspiration for you. This is exactly
    the kind of scenario we had in mind when we adopted this
    amendment, certainly when I introduced this amendment.
        I would also note that on the Army's Web site can be found
    a very inspiring statement from General Eisenhower sent just
    prior to the invasion at D-Day in which he concluded his
    remarks by saying to the soldiers, sailors, airmen, and marines
    who were about to embark on this very dangerous mission, ``Let
    us all beseech the blessings of almighty God upon this great
    and noble undertaking.'' If that's not offensive, then I find
    it difficult to understand how the decision by this cadet at
    the Air Force Academy, placed on a whiteboard outside his
    dormitory for the purpose of expressing something about his
    personality and about sources from which he draws inspiration,
    how that could possibly be deemed offensive, how that could
    require a teachable moment, and how that could require those in
    his chain of command to give him encouragement that would
    result in him taking it down.
        Thank you very much.
        I see my time has expired. Thank you, Madam Chairwoman.
        Senator Gillibrand. Secretary Wright, did you want to
    respond?
        Ms. Wright. I was only going to say that I totally
    understand and would be more than happy to come over with the
    Air Force and clear up the facts as they are.
        Senator Lee. Thank you. That would be wonderful.
        Senator Gillibrand. I would be grateful for a report on it,
    as well.
        Ms. Wright. Yes, ma'am.
        Senator Gillibrand. Thank you.
        Senator Hirono.
        Senator Hirono. Thank you, Madam Chairwoman.
        I have a follow-up question regarding the commissary
    changes. The testimony indicates that prices in the
    commissaries will go up. So my question is, would these
    increase in prices to servicemembers, retirees, and families be
    the same across all locations? Would there be some
    differentiation that would occur in these price increases?
        Ms. Wright. Ma'am, if I could, I'm going to turn to Mr.
    Vollrath. The commissary comes under his direct supervision.
        Secretary Vollrath. Thank you, Senator, a very good
    question. The intent in this change is to have common pricing
    throughout all commissaries, be they overseas, remote sites, or
    in metropolitan areas such as Fort Bragg or here in Washington,
    DC, common pricing, not differentiated based on rank or Active
    Duty or Reserve or retired status. It would be the same.
        Senator Hirono. Right now, the difference between the
    prices at commissaries and what the prices would be outside,
    although we have a lot of competition for lower prices through
    Costco and other places, is about 30 percent right now, isn't
    it?
        Ms. Wright. The savings in the commissary?
        Senator Hirono. The savings in the commissary.
        Ms. Wright. Yes, ma'am.
        Senator Hirono. So if the savings becomes only about 10
    percent, would you expect to lose a lot of commissary customers
    to these other places? What would that do to the entire
    commissary system?
        Secretary Vollrath. It is a possibility that that would
    occur. The probability we don't know yet until we embark on it.
    But in working with some of the other retail organizations,
    when your price goes up, the patronage tends to go down. So we
    would expect a reduction in patronage.
        Senator Hirono. Yes.
        Secretary Vollrath. Again, that's not just based on working
    with other retail organizations. We know that some of the
    patrons, particularly retirees, will drive a long distance
    because of the current savings, and they may not if the savings
    drop. They may not drive 2 hours from where they are retired to
    come in to get those savings. So there is a probability that
    the patronage will go down, yes.
        Senator Hirono. If it goes down very significantly to the
    point where we may be having to close some commissaries, that
    might happen, that could happen?
        Secretary Vollrath. It's a possibility. I don't know what
    the probability is. Our hope in working this, which is an art,
    that we will still offer enough benefit that the servicemembers
    and their families will value that.
        Senator Hirono. Well, I hope so.
        Regarding recruitment and retention, on page 12 of your
    testimony I note that there's a reference that only 14 percent
    of youth are inclined to serve in the military. So there is
    already just a small percentage of the young people who want to
    serve in our military, and that even for those who want to
    join, a huge percentage of them are not able to join. Maybe 75
    percent--that's a number that I came across in some other
    setting--are not qualified, a lot of them due to the fact that
    they may not have high school degrees.
        While this may not be in your wheelhouse, we're talking
    about a very small number of people who would even be able to
    qualify. So what are your thoughts on what we can do to enhance
    graduation from high school as a start?
        Secretary Vollrath. You have your facts right. About 75
    percent of the youth 18 to 24 in America do not meet the basic
    qualifications for enlistment because of weight or lack of
    schooling or some other run-in with the law, for example. So
    that leaves us with about 25 percent of the youth that can
    qualify to our standards.
        The 14 percent propensity is within that, and of course the
    key to recruiting is to increase that propensity and get as
    many as we can out of the 25 percent that are eligible. So
    that's the challenge in recruiting, is to expand from the 14
    percent up.
        We have been very successful with our recruiting incentives
    and with our quality-of-life and with the challenging lifestyle
    to attract sufficient people from that small population in
    America over the last 10 years. All of the Services last year
    met their recruiting numbers except for the Army Reserve, which
    went down slightly for the first time in years, and the quality
    standards that we have have been far exceeded, to the degree
    that 95.9 percent of all of the recruits last year had a high
    school diploma and were graduates, or the equivalent of that.
    So we're taking the best of the best given the current
    conditions that we have.
        We are, however, cognizant of the fact that as the economy
    improves--and thank goodness for America, it is improving--as
    the economy improves, it may present us with greater challenges
    in recruiting. Therefore, we are vigilant now to make sure that
    we have enough recruiters and we're not going down that road,
    and we have enough recruiting incentives and we're not taking
    any great shots at that, because we have learned our lesson
    from the 1990s, the last time DOD had a significant drawdown.
    We're concurrent with the drawdown. We cut recruiters, we cut
    advertising budgets, we cut incentives and, of course, hit the
    wall at the end of the 1990s in trying to recruit.
        So we are cognizant of the fact that we don't need to make
    those mistakes twice.
        Senator Hirono. I think, as a general proposition, that it
    behooves all of us to care about the graduation rates
    throughout our country, and clearly whatever the military can
    do, what you all can do to support the education efforts
    across-the-board, that would be a good thing.
        My time is running out, but I do have a question also about
    the GI bill. There have been some concerns about certain,
    basically, for-profit colleges that recruit heavily among
    veterans, and the outcomes may not be all that terrific. They
    rely a lot on loans and all that.
        Do you have any concerns about the recruitment tactics used
    by some of these schools? What are you doing about it, if you
    have such concerns?
        Ms. Wright. First, yes, we do. We're working with a lady
    named Holly Petraeus, who also has a huge concern over this
    particular issue. We're also working with the education centers
    that we have throughout DOD that are on the post, camps, and
    stations that people come into to apply for college to let them
    understand that there are for-profit colleges that you can get
    a degree, but the degree is very expensive and not marketable
    once you get it. So you've spent all this time, energy, and
    money for a degree that's not marketable if you choose to not
    stay in the military and potentially use that degree.
        So we're working to make sure our servicemembers understand
    that there are great institutions throughout this Nation that
    will not only take your money but also give you a great
    education and a very marketable degree.
        Mr. Vollrath?
        Secretary Vollrath. We have also instituted a document that
    all institutions of higher learning have to sign, which has in
    the document principles of excellence, how they will conduct
    the education and how they will treat the students, and we have
    more than 3,200 already signed up. So they have to meet
    standards going in and coming out.
        We have set up a system with other agencies in the Federal
    Government for students to report, both by phone or
    electronically, any problems they have with the school, and
    then we will take them on in DOD; or if they appear to be
    criminal in some way, we do pass them over to the Department of
    Justice, because we understand that there may be people who are
    not that well-intentioned.
        Senator Hirono. Thank you.
        I do thank the chairwoman for her indulgence. I went over
    my time.
        Senator Gillibrand. Your questions were so good, I didn't
    want to interrupt you.
        Senator Hirono. Thank you.
        Senator Gillibrand. Senator Ayotte?
        Senator Ayotte. Thank you, Madam Chairwoman.
        I wanted to, first of all, thank you all for being here and
    for the work that you're doing.
        I was just in Afghanistan last week, and I met a New
    Hampshire soldier who has been in the Army for 8 years, and
    he's done five deployments in those 8 years, and I can tell you
    some of the personal experiences he's had with his personal
    life have been very difficult as a result of being deployed so
    many times.
        I think it's also a very difficult challenge for our Guard
    and Reserve because they're being deployed multiple times, and
    then they come back to a civilian setting where they're not on
    a base where other people have had the similar experiences that
    they've had, and that presents unique challenges for us as the
    Guard and Reserve have been operational.
        We have a program in New Hampshire that I've mentioned
    before that I'm very proud of. It's called the Deployment Cycle
    Support Program. It's really a public-private partnership where
    we've partnered State resources with Easter Seals in the non-
    profit sector that has raised money for it, and then taken some
    of the Yellow Ribbon money from DOD and really leveraged it.
        In our State, we just last year served 523 servicemembers.
    We intervened in 10 suicides where there was a suicide risk;
    102 participants previously unidentified for mental health
    issues were diagnosed and received treatment. We got 77 people
    to work, 55 people prevented from homelessness, 62 people were
    going to lose their homes and we stopped them. We referred over
    1,000 participants overall to other care providers, and raised
    a lot of money on the local level from the private sector to
    really maximize the Federal dollars.
        So although I'm supportive of the Yellow Ribbon program,
    the way we've done it, frankly, I'm quite proud of being able
    to really leverage those dollars.
        So I wanted to ask you, all of you who--certainly Secretary
    Wright, Secretary Woodson, Secretary Wightman, what you think
    of this program, and if you haven't had a chance to see how
    it's working, we would love to have you in New Hampshire
    because I think it's a model to leverage scarce Federal dollars
    in a way that brings the entire community in.
        Ms. Wright. Yes, ma'am. First, your panel members up here
    are comprised of a guardsman and two reservists. So we do
    understand what the National Guard and Reserve have done,
    particularly in the last years, and I am very familiar with
    your program from the standpoint of hearing about it. I have
    not had the pleasure of going up and seeing exactly what they
    do.
        Senator Ayotte. We'd love to welcome you if you'd like to
    come up.
        Ms. Wright. I will take you up on that.
        But to your point, the program funded with Beyond the
    Yellow Ribbon money is excellent, and it does do exactly what
    you have said, and potentially more, because those individuals
    who either get housing or get jobs or are taken care of then
    affect tons of people that are their immediate and also
    extended family. So it does support many more than just the
    guardsman and the reservist.
        I'd like Mr. Wightman also to add information. He is
    responsible for the Reserve components.
        Mr. Wightman. Thank you. Senator, this is a great program.
    I have not been there as well, and I would love to come out
    there and see the program in action.
        It appears that Beyond the Yellow Ribbon is an extension of
    the Yellow Ribbon program, and what you've done out there is
    fantastic. The Yellow Ribbon program goes up to a point through
    the entire deployment cycle, and then this program gets down
    with a care coordinator, with the family in the community, and
    that seems to be the full spectrum from one end to the other.
        So I would commend the program. I know you have $1.2
    million coming your way as a result of the work that's been
    done in the past.
        Senator Ayotte. Thank you. I appreciate it. I think it also
    gets the community more involved, which is really important, I
    think, to provide that support structure back in the community.
        Let me just ask about the proposed benefit changes. I want
    to associate myself with the comments of the chairwoman, as
    well as the ranking member, about really looking at this in a
    holistic manner with the commission. I'm concerned about moving
    on this now.
        Here is one of my big concerns. It's usually the junior
    military personnel who are going to spend a higher percentage
    of their total income on housing, food, and health care. As I
    see these changes, they're going to be hit the biggest because,
    frankly, they're the junior enlisted soldiers that make the
    least. As I understand it, unfortunately, some of our soldiers
    are even having to be on food stamps.
        When I think about those soldiers having to pay whether
    it's more at the commissary or, if they have to live off base,
    a reduction in housing allowance, I'm very concerned for our
    enlisted soldiers, not that I'm not concerned for all of our
    soldiers because I am, but it seems that we're also hitting our
    enlisted disproportionately here as we look at the economic
    challenges that these families face.
        Can you help me understand what is going to be the impact
    on the junior enlisted, and do you agree with me that they're
    likely to get hit, looking at how much they make and how much
    they just logically have to spend on housing and food, that
    they're going to get hit the biggest on this? They already have
    a lot of challenges, so I'm worried about this.
        Secretary Hale. Perhaps I can start. First off, I think we
    did look holistically. The Joint Chiefs designed this program
    personally, and I have great respect for the commission and I
    understand why you set it up, and I would hope you would listen
    to them.
        In terms of the overall design, I haven't done the numbers
    by grade, but I can tell you that we have benchmarks that
    suggest that we can recruit and retain the people that we need.
    The enlisted now are around the 90th percentile or in the 90s
    in terms of their pay and allowances, and the officers in the
    80s. So our benchmarks suggest we can do it.
        If we're wrong and we find that we have created retention
    and recruiting problems with these really fairly modest changes
    overall, then we'll reverse them. We're going to support the
    All-Volunteer Force. We have a strong commitment to do that.
    But we don't think we'll have to do that. We think we can do
    this and free up the money to help their training. I keep
    asking you to come back to that because that's why we're doing
    this. If you don't mind cutting readiness, then I suppose that
    we can do away with these proposals. But none of us want to do
    that.
        Senator Ayotte. Let me just be straight. I voted against
    sequestration, and I think that we should work together to
    address sequestration, especially since the world is in a very
    challenging time, not only with Ukraine, Syria, every other
    risk we face in the world. I understand the challenges you're
    under.
        What I would like to hear from the panel, I would very much
    like to know what will be the financial impact and what
    analysis you did, particularly looking at the junior enlisted
    and how much your average junior enlisted, and I assume before
    you proposed this, you all ran these numbers and really looked
    at rank versus how much that person will pay more.
        I think that that's really important for us to see the
    numbers that you relied on and the underlying data, because
    this, to me, is, again, I think of deep concern to the greatest
    asset we have in our military, our people. We can have all the
    greatest equipment and everything else, but without the people,
    as I know you all agree, we can't do anything.
        I'm just going to submit that for the record, just to get
    the numbers, and I'm sure that all of us would like to see what
    was the analysis done, and also by rank and what your average
    person makes and how this would impact them.
        Thank you.
        [The information referred to follows:]

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Senator Gillibrand. I'd like to associate myself with
    Senator Ayotte's comments. I would like that report as well. I
    think she's exactly right.
        Senator Ayotte. Thank you.
        Senator Gillibrand. Senator Kaine?
        Senator Kaine. Thank you, Madam Chairwoman. I know we have
    a vote call, so I'll try to move quickly.
        Senator Lee asked some important questions, I think, about
    accommodations of religious expression. I know that it is a
    very challenging and subjective issue, often, for a leader to
    determine what is expression and what is proselytization or
    pressure that makes others feel uncomfortable, and that's
    something you can't write a rule for.
        But here's something that is pure expression, and it's a
    particular passion of mine, and I know of the chairwoman's as
    well, and that's the treatment of Sikhs who serve in the
    military. Sikhs could serve in the military and wear their
    traditional hair, beard, garb, up through the late 1980s, but
    then there's been a change to make that more difficult.
        The chairwoman and I have written a couple of letters about
    this and we want to continue our focus on this issue. For me,
    this is not just an issue of the protection of an individual's
    religious rights, which is extremely important, but in a world
    now where so many of the conflicts we are seeing are conflicts
    driven by sectarian religious intolerance, one of the best
    things we can do as a Nation is demonstrate that we are
    welcoming and open and we tolerate different religious
    practices that don't go over the line into proselytization.
        I think actually a change in accommodation for Sikhs would
    serve an important purpose of showing how we as a society can
    model this. I am just really putting that on the radar screen.
    It's something I'm going to continue to focus on with others
    here.
        Secretary Wright, I want to ask you a question. Part of the
    testimony deals with a brief report about the success of the
    military in eliminating gender exclusions in MOSs in the last
    year. Could you just talk about progress there?
        Ms. Wright. Yes, sir. Secretary Panetta and Chairman
    Dempsey are the ones that eliminated the 1994 Ground Combat
    Exclusion Rule. The Services have until 1 January 2016 to
    thoughtfully and deliberately integrate women into those closed
    positions. The Services are continuing the review to come up
    with gender-neutral standards which will allow women to then
    come into these otherwise closed occupations.
        The Army and the other Services have opened up and,
    frankly, I will have to turn to Mr. Vollrath for the specific
    number, but many different jobs for women, and they have also
    opened up--the Army, in particular, I can use as an example. If
    you are, say, for example, a medic, which women can go into,
    they have opened up units that were previously closed, an
    infantry battalion if you will, so that female medics can be in
    those units.
        Senator Kaine. Can I just say, something that I would ask
    you to pay attention to, and we will, and I hope this isn't a
    concern but just history being a guide. In Virginia and in many
    States, when the Federal Government changed via Constitution
    the ability of a State to exclude voters on the grounds of
    race, my State said, okay, we can't exclude voters on the
    grounds of race, but we can come up with new requirements that
    have never been imposed before to basically exclude those
    voters, and that might trip up some others as well.
        I would just hope in this effort, and I assume good faith,
    and I was so excited with this announcement last year, in the
    effort to come up with the neutral criteria to use to determine
    suitability for MOSs other than gender, I hope that there is
    some scrutiny to what those criteria are in an effort to make
    sure that they really are fair and objective and they're not an
    attempt to exclude women from MOSs without having a specific
    gender exclusion.
        Ms. Wright. Yes, sir, they are. In fact, we have hired
    scientists to do this. We are not doing this on our own as an
    organization. We need to pay attention to the occupational
    standards that are required to perform these jobs, and that's
    why I used the term ``thoughtful and deliberate,'' because we
    have to continue to do the mission in the fashion that the
    mission needs to be done, and we can't negate that mission or
    lower that mission or lower standards to perform that mission.
        We need to also have the standards be scientifically
    reviewed and established for anyone to perform those particular
    jobs.
        Mr. Vollrath?
        Secretary Vollrath. The only thing that I would add,
    Senator, is that in addition to the scientific approach to make
    sure that any bias isn't there, if perchance there is, and we
    don't think there is honestly, we also know that implementation
    has to be done in good fashion. You can't just dictate this.
    Given the military assignment-reassignment system, that process
    has already begun, and we are very cognizant of the fact that
    there will always be the first in some of these units. So we
    are cautioning commanders and senior noncommissioned officers
    that they need to understand and make sure that they are
    prepared for this, because it needs to be successful for the
    proper defense of this country.
        Senator Kaine. I'm extremely supportive of this effort, and
    I recognize that human beings are human beings, so there are
    going to be some glitches along the way. Our best wishes in
    this effort, and we'll continue to dialogue on it.
        One last question, briefly, for Secretary Wright. My first
    legislation got wrapped up and included in the NDAA last year,
    which is the Troop Talent Act, largely about the credentialing
    of military members during Active Duty service with the skill
    sets they obtain, when they obtain them, and I know that
    there's been a pilot project on this, and the DOD evaluation of
    the pilot was very positive. It found in the pilot that the
    cost of credentialing, about $285 a person, was significantly
    less than trying to go in and deal with people's employment
    needs once they were veterans or much later as they're getting
    ready to transition out. The cost of Department of Labor
    programs, the cost of unemployment insurance that the military
    pays, these are significant costs, and much better to give
    somebody a civilian translatable skill set for $285 than have
    to pay costs down the road.
        What more can we be doing to facilitate DOD and Service
    branch-wide acceleration of credentialing initiatives?
        Ms. Wright. Sir, we have someone that is clearly working
    that aspect, credentialing and licensing, from the DOD job,
    from the military job to a civilian job. Frankly, yesterday I
    met with financial people to see what their standards were to
    see if we can move forward on that. So we are doing it all the
    time.
        The individual's name is Mr. D--we call him D9. I
    apologize.
        Secretary Vollrath. DiGiovanni.
        Ms. Wright. DiGiovanni, yes. He works for Mr. Vollrath, so
    if you want to add a little bit?
        Secretary Vollrath. Senator, we're right in line with your
    philosophy and direction, and it's a two-way street. It is not
    just focused on the individual and trying to get the individual
    credentialed for life after Service. What we've learned in the
    process is we, DOD, get benefit from this, too. So, for
    example, if a medic can be credentialed as an emergency medical
    technician, we in DOD gain, as does that individual, and they
    can take it with them through life. So it increases our
    professionalism in those particular skills.
        What we've also learned is that members who drive vehicles
    can begin to move toward the commercial driver's license, that
    they become more professional and more turned on, if you will,
    about their job.
        We've also discovered that we can take this into some other
    areas that people generally don't think about--for example,
    human resources. There is a professional body that licenses
    civilian human resource professionals. So we're going to move
    in that area and improve professionalism there.
        So it is a win-win proposition from our perspective.
        Senator Kaine. Thank you.
        Thank you, Madam Chairwoman.
        Senator Gillibrand. Thank you for your testimony.
        Because we will vote, and Senator Kaine and I only have
    about 5 minutes to get there before the close, we need to close
    this panel. I do have additional questions that I will submit
    for the record.
        I am very grateful for your service and your testimony. I
    know how hard you've worked on this issue. I know it's not
    easy. As you can see, there's a lot of concern among the
    subcommittee about doing this because we somehow have to pay
    for all our cuts within personnel, and I think there's a push-
    back on that within the subcommittee, and we may be waiting for
    the larger-scale, longer-term structural reforms that come with
    the commission's recommendations.
        Thank you for your work. Thank you for your service.
        We will reconvene this hearing at 12:10 p.m., which will
    accommodate the votes--we have four votes--for the next panel.
    You are dismissed. Thank you very much. [Recess.]
        Welcome, everyone. Our second panel has convened. We have
    members of The Military Coalition (TMC), a consortium of
    nationally prominent uniformed service and veteran
    organizations. Retired Colonel Michael F. Hayden is the
    Director of Government Relations, Military Officers Association
    of America (MOAA); Mrs. Kathleen B. Moakler is the Government
    Relations Director of the National Military Family Association
    (NMFA); Mr. John R. Davis is the Director of Legislative
    Programs, Fleet Reserve Association (FRA); and retired Captain
    Marshall Hanson is the Director of Legislative and Military
    Policy, Reserve Officers Association (ROA).
        I invite you all to give an opening statement, to keep your
    oral statement to under 5 minutes. I invite John Davis to speak
    first.

      STATEMENT OF JOHN R. DAVIS, DIRECTOR, LEGISLATIVE PROGRAMS,
                       FLEET RESERVE ASSOCIATION

        Mr. Davis. My name is John Davis and I'm Director of
    Legislative Programs with the FRA. I want to thank you for
    allowing me to speak with you today.
        At the heart of the budget challenges facing DOD is the
    devastating effect of sequestration. FRA and our coalition
    partners insist Congress should exclude defense from
    sequestration. We agree with Secretary of Defense Hagel, who
    stated at his February 24th press conference that continued
    sequestration cuts will create a hollow force.
        While debt reduction is a national priority, we believe
    that such a disproportionate share of this burden must not
    continue to be foisted on DOD, especially on the backs of
    military members and families who sacrifice so much for their
    country.
        Adequate pay increases are needed to at least in part
    offset the extraordinary demands and sacrifices expected in a
    military career. We want to thank the chairwoman for her
    mentioning junior enlisted families regarding pay cuts and
    benefit cuts. FRA advocates that to sustain a first-class
    career military force requires a strong bond of mutual
    commitment between the servicemember and his or her employer.
    Pay and allowances remain the top retention choice for Active
    Duty military personnel since the beginning of the All-
    Volunteer Force. The highest rated benefit for Active Duty in
    FRA's online survey done in February and March 2014 was base
    pay, 93 percent of Active Duty believe base pay is very
    important, the highest rating.
        The Active Duty community is disappointed that Congress
    capped the 2014 Active Duty pay raise at 1 percent, which is
    0.8 percent less than the growth of the private sector pay
    measured by the ECI, and is the smallest pay increase in recent
    memory.
        In 1999, it was determined that there was a 13.5 percent
    pay gap between military and private sector pay, and Congress
    made a commitment then to gradually close that gap. FRA
    believes that Congress should hold fast to that commitment. The
    gap was reduced to 2.4 percent, but it is now headed in the
    other direction with the 2014 pay increase.
        BAH is an allowance paid to Active Duty servicemembers
    based on pay grade, dependency status, and geographic location
    within the United States. The fiscal year 2015 budget
    eliminates compensation for renter's insurance and cuts the
    average payment by 5 percent.
        BAH is the third highest priority for Active Duty members
    in FRA's online survey, indicating that 83 percent of Active
    Duty see BAH as very important. In 2000, BAH payments provided
    80 percent of housing costs. Congress at that time made a
    commitment to increase the benefit to 100 percent as part of
    the overall effort to enhance pay and other benefits to improve
    retention and recruitment. FRA is concerned that Congress has
    not learned from past mistakes that pay caps and other benefit
    cuts eventually impact negatively on retention and recruitment.
        Also, adequate military end strength is vital in sustaining
    our national security. The strain and inadequate dwell time of
    repeated deployments are significant and related to end
    strength levels. This is reflected in troubling stress-related
    statistics that include alarming rates of suicide, prescription
    drug abuse, alcohol use, and military divorce rates.
        For the last 13 years, servicemembers and their families
    have endured unprecedented sacrifices, often having less than a
    year at home before returning again for another year in combat.
    Roughly 1 percent of the population has volunteered to shoulder
    100 percent of the responsibility of our national security.
    Now, with these even greater end strength reductions, many
    servicemembers worry if they will be able to continue serving
    their Nation.
        I'll be glad to answer any questions. Thank you.
        [The prepared statement of Mr. Davis follows:]
              Prepared Statement by The Fleet Reserve Association
                                  introduction
        Chairwoman Gillibrand and Ranking Member Graham, the Fleet Reserve
    Association (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. 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.
        The current All-Volunteer Force (AVF) has been through a dozen
    years of wartime sacrifices never envisioned by those who designed a
    voluntary military force. The U.S. military is a stressed force with
    many serving in multiple deployments in Iraq and Afghanistan. The
    current benefit package is the glue that holds the AVF together, and
    any budget-driven cuts in pay and benefits could have adverse impact on
    recruitment and retention and ultimately threaten the very foundation
    of the AVF. 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.
        The whole purpose of a unique military retirement pay and health
    care benefit is to offset the extraordinary demands and sacrifices
    expected in a military career. FRA advocates that to sustain a first-
    class, career military force requires a strong bond of mutual
    commitment between the servicemember and his/her employer.
                                    synopsis
        The 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.
                          dod budget and sequestration
        FRA notes with concern the decrease in the Department of Defense
    (DOD) personnel programs from $144 billion in the current fiscal year
    2014 budget to $135 billion proposed in the administration's fiscal
    year 2015 request. Secretary of Defense Chuck Hagel stated that this is
    the first budget to reflect the end of American involvement in
    Afghanistan, and will significantly reduce end strength for all
    branches of the military including the Reserve component. Hagel warned
    that future sequestration budget cuts mandated by the 2011 Budget
    Control Act (BCA) will create a ``hollow force.'' FRA shares the
    Secretary of Defense's concerns about a ``hollow force'' military and
    supports adequate end strengths for our military's operational
    commitments. The Association believes that Defense should be excluded
    from sequestration cuts mandated by the BCA. FRA opposes new TRICARE
    fee increases, cuts to commissary benefits and cuts to Basic Allowance
    for Housing (BAH). FRA also believes that active-duty pay increases
    should at least keep pace with comparable civilian pay increases as
    measured by the Employment Cost Index (ECI).
        Pentagon officials have repeated expressed concern that personnel
    cost are ``eating us alive.'' The facts do not support that assertion.
    Other data indicates that personnel costs have remained at
    approximately one-third of the Defense budget for many years.
        The BCA of 2011 established automatic budget cuts known as
    sequestration that mandates that 50 percent of the cuts come from
    Defense even though Defense only makes up 17 percent of the budget.
    These cuts put America's national defense capabilities at greater risk.
    Unless current law is changed, the DOD will have to cut an additional
    $54 billion in fiscal year 2016 and some $269 billion over the
    following 5 fiscal years.
        The DOD budget was already scheduled to be cut by $487 Billion over
    a 10-year period BEFORE the enactment of sequestration, that if fully
    implemented will cut an additional $500 billion in the defense
    spending. The Bipartisan Budget Act of 2013 mitigated the spending cuts
    for fiscal year 2014 and 2015. However, the original sequestration cuts
    fiscal year 2016 thru 2021 remain in effect continuing to place
    national security at risk.
        Sequestration has already forced the Services have already canceled
    deployment of ships, slashed flying hours, renegotiated critical
    procurement contracts, temporarily furloughed civilian employees, and
    are in the process of reducing force structure by some 124,000
    personnel. Additionally, the Defense Authorization Bill for Fiscal Year
    2014 capped military pay raises at 1 percent, the lowest pay raise in
    50 years.
        The proposed fiscal year 2015 defense budget assumes some
    additional monies will be forthcoming to mitigate sequestration
    impacts. However, the budget proposes additional force reductions of
    some 78,000 personnel in the Army, Army Reserves, Army National Guard,
    and the Marines Corps (6,000) giving America the smallest military
    force since before World War II. If sequestration relief is not ended,
    additional force reductions will likely go deeper and training and
    modernization will be further impacted.
        The fiscal year 2015 budget submission proposes several
    compensation measures to free monies for force structure and
    modernization by capping the fiscal year 2015 pay raise at 1 percent, a
    figure below the mandated ECI, slowing the growth in base housing
    allowances and increasing out-of-pocket expenses for personnel,
    reducing commissary savings and increasing TRICARE fees for both
    retirees and active duty personnel.
        While debt reduction is a national priority, such a disproportional
    share of this burden must not be imposed on military families who
    already have sacrificed for their country.
                         cost-of-living adjustment cuts
        FRA welcomed the repeal of the 1-percent cost-of-living adjustment
    (COLA) cut for those joining the military before January 1, 2014 but
    was disappointed the COLA cut applies to future retirees that joined
    the military on or after January 1, 2014. The Association is delighted
    that all current retirees and almost all of those currently serving are
    excluded from the 1-percent COLA cut. FRA remains concerned, however,
    that the 1-percent COLA cut provision for those enlisting after January
    1, 2014, could have a negative impact on recruitment. Further, these
    changes should go through the ``regular order'' of subcommittee and
    committee hearings in the House and Senate to thoroughly review the
    impact on the future of the All-Volunteer Force (AVF). Additionally,
    FRA argues that any changes to retirement benefits and military
    compensation should be put on hold until the Military Compensation and
    Retirement Modernization Commission (MCRMC) makes its final report in
    February 2015. FRA will continue to advocate for repealing COLA cuts
    for all future retirees.
                      retirement reform and the commission
        Secretary of Defense Hagel clarified at his February press
    conference that he will await the final report from the MCRMC, which is
    due February 2015, before proposing any changes to military retirement
    benefits. FRA is thankful for the Secretary's restraint but wonders why
    DOD has proposed other changes in TRICARE, and military compensation
    that is also be reviewed by the Commission. The nine-member MCRMC,
    created by the NDAA for Fiscal Year 2013, has held a series of hearings
    and has continued to seek input from various interested parties. The
    commission has been charged to review ``the full breadth of the
    systems,'' including healthcare, military family support, and any
    Federal programs that could influence the decision of current or future
    servicemembers to stay in uniform or leave the Service. Before making
    their final recommendations to Congress and the President, the
    commission must examine the impacts of proposed recommendations on
    currently serving members, retirees, spouses, children, and survivors.
                       tricare benefits and fee increases
        FRA's membership appreciates the following Sense of Congress
    provisions in the National Defense Authorization Act (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.
        The fiscal year 2015 DOD budget will shift costs to military
    beneficiaries by:

              Consolidating the TRICARE Health Plans into one--results in
            much higher costs while reducing access
              Raising annual fees for retired and active duty families of
            all ages and categories
              Dramatically increasing pharmacy copays
              Imposing means-testing of military retiree health benefits--
            which no other Federal retirees endure

        FRA advocates that DOD must sufficiently investigate and implement
    other options to make TRICARE more cost-efficient as alternatives to
    shifting costs to TRICARE beneficiaries, and the Association opposes
    any indexing of future TRICARE Fee increases beyond CPI indexed COLA
    increases.
        The administration's fiscal year 2015 budget request includes a
    complex plan to merge TRICARE Prime, Standard and Extra into one
    program for all retirees under age 65; Raising annual fees for retirees
    under age 65 and active duty family members; Dramatically increasing
    pharmacy co-pays for retirees under age 65; and new annual fee for new
    TIRICARE-for-Life (TFL) beneficiaries. FRA opposes the new proposed fee
    increases included in the fiscal year 2015 administration's budget and
    opposes the merger of programs that will result in TRICARE Standard and
    Extra beneficiaries paying a new annual ``participation'' fee, and
    TRICARE Prime beneficiaries paying higher co-pays and deductibles.
    Background
        TRICARE Prime enrollment fees for military retirees increased by 13
    percent in 2012 with future increases tied to the annual COLA increase.
    In addition Congress increased pharmacy co-pays and mandated future
    increases tied to the annual percentage increase in the retiree COLA
    starting in 2014 through 2022. A 5-year pilot program also requires TFL
    beneficiaries to obtain refills of maintenance drugs through the
    TRICARE home delivery program for at least 1 year.
        FRA will vigorously oppose Pentagon efforts to shift the cost of
    health care to beneficiaries. DOD has proposed merging TRICARE Prime,
    Standard, and Extra into one program. The Association believes under
    the pretext of this merge that retirees under age 65 will be forced to
    accept TRICARE Standard benefits with TRICARE Prime enrollment fees and
    more fees.
        Military retirees under age 65 and are enrolled in TRICARE Prime
    experienced a 13-percent increase in their annual enrollment fees 2
    years ago, and these fees are increased annually based on inflation.
    TRICARE Standard, Extra, and Prime beneficiaries have their pharmacy
    co-pays increased every year with the rate of inflation.
        FRA will vigorously oppose Pentagon efforts to shift the cost of
    health care to beneficiaries. DOD has proposed merging TRICARE Prime,
    Standard, and Extra into one program. The Association believes under
    the pretext of this merge that retirees under age 65 will be forced to
    accept TRICARE Standard benefits with TRICARE Prime enrollment fees and
    more fees.
        The Association believes that DOD should fix inefficiencies first
    before shifting health care costs to retirees. There have been many GAO
    reports that indicate that the DOD cost accounting system is
    dysfunctional and cannot be audited. Also consolidating the DOD health
    care system into a unified medical command would create a more
    efficient organization that could obtain substantial savings.
                                active duty pay
        FRA strongly supports a full Employment Cost Index (ECI) military
    pay increase for fiscal year 2015. Pay and allowances remain the top
    retention choice for active duty military personnel since the beginning
    of the All-Volunteer Force and that is reflected in the FRA online
    survey (February/March 2014) indicates that 93 percent of active duty
    see base pay as ``Very Important''--the highest rating. So I'm sure the
    active duty community is disappointed that Congress capped the 2014
    active duty pay raise at 1 percent, which is 0.8 percent less than the
    growth of private sector pay (ECI), and the smallest pay increase in
    recent memory.
        In the 1970s several annual pay caps contributed to a serious
    retention problem that was fixed by large salary increases in 1981 and
    1982. Throughout the 1980s and 1990s budget limitations lead to several
    salary caps providing salary increases below the annual ECI. In 1999 it
    was determined that there was a 13.5 percent gap between military and
    private sector pay, and Congress made a commitment then to gradually
    close that gap, and FRA believes that Congress should hold fast to that
    commitment. The gap was reduced to 2.4 but now is headed in the other
    direction with the 1 percent increase in 2014 the smallest increase in
    many years. Adequate pay increases are needed to at least in part
    offset the extraordinary demands and sacrifices expected in a military
    career.
                        basic allowance for housing cuts
        Basic Allowance for Housing (BAH) is an allowance paid to active
    duty servicemembers based on pay grade, dependency status, and
    geographic location within the United States. The fiscal year 2015
    budget eliminates compensation for renter's insurance and cuts the
    average payment by 5 percent. The fiscal year 2015 budget eliminates
    compensation for renter's insurance and cuts the average payment by 5
    percent. BAH is the third highest priority for active duty in FRA's
    online survey indicating that 83 percent of active duty sees BAH as
    ``very important.''
                uniformed services former spouses protection act
        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 enforce-able by the Department of Justice
    (DoJ) 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 DoJ or DOD 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 com-mitted 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.
                            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).
    The Association also wants to make the early retirement credit
    retroactive to September 11, 2001, after which the Reserve component
    changed from a strategic reserve to an operational reserve.
        The Association 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 have no access to
    health care.
        FRA 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.
                               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).
      survivor benefit plan/dependency and indemnity compensation offset
                                     repeal
        FRA supports the ``Military Surviving Equity Act'' (H.R. 32)
    sponsored by Representative Joe Wilson (SC) and its Senate companion
    bill (S. 734) sponsored by Senator Bill Nelson (FL), to eliminate the
    Survivor Benefit Plan (SBP)/Dependency and Indemnity Compensation (DIC)
    offset for widows and widowers of servicemembers. These bills 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. Further FRA believes Congress should
    reduce the age for paid-up SBP to age 67 for those who joined the
    military at age 17, 18 or 19. Congress should also 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.
                  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
    (DFAS) 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.
                             dislocation allowance
        Moving households on government orders can be costly. Throughout a
    military career, servicemembers endure a number of permanent changes of
    station (PCS). Often each move requires additional expense for
    relocating to a new area far away from the servicemember's current
    location. To help servicemembers defray these additional expenses
    Congress in 1955 authorized the payment of a special allowance referred
    to as ``dislocation allowance.'' Unfortunately servicemembers preparing
    to retire from the military are not eligible for this allowance, yet
    are subject to the same additional expenses they experience a PCS. In
    either case, moving on orders to another duty station or retiring are
    both reflective of a management decision. Therefore FRA supports
    authorizing payment of a dislocation allowances to servicemembers
    retiring or transferring to an inactive status such as the Fleet
    Reserve or Fleet Marine Reserve who execute a ``final change of
    station'' move.
                    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 health data.
        The importance of fully implemented interoperability of electronic
    medical records cannot be overstated. The Association was grateful that
    the National Defense Authorization Act (NDAA) for Fiscal Year 2014 has
    a provision that requires DOD and VA to implement a seamless electronic
    sharing of medical health care data by October 1, 2016. This provision
    was in response to the VA and DOD shelving plans to jointly develop an
    iHER system due to cost and schedule challenges, and instead the two
    agencies decided to pursue separate efforts to modernize or replace
    their existing systems. However, according to a new Government
    Accountability Office (GAO) report (GAO-14-302) the VA and DOD ``have
    not substantiated their claims that the current approach will be less
    expensive and more timely than the single-system approach.'' The GAO
    report also notes that neither department has provided a joint
    strategic plan that explains lines of responsibility, time schedule,
    how to eliminate management barriers, and how much the project will
    cost. FRA has long supported efforts to ensure adequate funding for DOD
    and VA health care resource sharing in delivering seamless, cost
    effective, quality services to personnel wounded in combat and other
    veterans, and their families.
        There is some sharing now between DOD, VA, and the private sector,
    but more needs to be done. Wider expansion of data sharing and exchange
    agreements between VA, DOD, and the private sector is needed. VA's
    ``Blue Button'' initiative permits veteran's online access to some
    medical history, appointments, wellness reminders and military service
    information, but most is only accessible only after in-person
    authentication. VA is also moving forward on its paperless disability
    processes that is Health Insurance Portability and Protection Act
    compliant.
        Jurisdictional challenges notwithstanding this subcommittee must
    remain vigilant regarding its' oversight responsibilities associated
    with ensuring a ``seamless transition'' for our Nation's wounded
    warriors.
                             mental health/suicide
        FRA believes post-traumatic stress (PTS) should not be referred to
    as a ``disorder.'' This terminology adds to the stigma of this
    condition, and the Association believes it is critical that the
    military and VA work to reduce the stigma associated with PTS and TBI.
    Access to quality mental health service is a vital priority, along with
    a better understanding of these conditions and improved care. ``Roughly
    20 percent of the 2.5 million men and women who served in Afghanistan
    and Iraq have PTSD or other mental ill. About 200,000 incarcerated
    veterans in the United States, about 14 percent of the Nation's
    prisoners. Contrary to public perception, Afghanistan and Iraq vets are
    only half as likely to be incarcerated as those who fought in earlier
    wars, but . . . suffer from PTSD at three times the rate of older
    veterans.'' \1\ PTS diagnosis and treatment remain a major challenge
    for the VA. ``The number of veterans who received VA treatment for PTSD
    and other mental health issues reached 1.3 million last year, up
    400,000 since 2006.'' \2\
    ---------------------------------------------------------------------------
        \1\ Time Magazine, Feb. 10, 2014, ``A Troubled Marine's Final
    Fight'' page 38-39, Mark Thompson
        \2\ The Washington Post, Nov. 11, 2013 ``VA Shinseki is determined
    to Leave no Vet Behind'' Steve Vogel
    ---------------------------------------------------------------------------
        An average of 22 veterans a day commit suicide and because of that
    fact suicide prevention is a priority issue for FRA. More specifically
    the Association is deeply concerned that ``suicides among young
    veterans climbed sharply in a recent 3-year period, according to a new
    government analysis focused on Veterans Health Administration clients.
    The number of suicides among 18- to 29-year-old men increased from 88
    in 2009 to 152 in 2011. That translates into a 44 percent rise in the
    suicide rate, which jumped to 57.9 suicides per 100,000 veterans.'' \3\
    In 2005 the VA's 13,000 mental health professionals were providing care
    for veterans. Today there are more than 20,000 mental health
    professionals at the VA and that number should continue to increase.
    The VA/DOD crisis hot line has assisted more than 640,000 people and
    rescued over 23,000 from potential suicide, and there must be readily
    available counseling support and expanded awareness of help that's
    available to veterans in crisis.
    ---------------------------------------------------------------------------
        \3\ Los Angeles Times, Jan. 12, 2014, ``More Young Veterans
    Committing Suicide, Data Show'' Alan Zarembo
    ---------------------------------------------------------------------------
        A member posted this on FRA facebook page January 14, 2014:
    ``Suicide prevention and the FAILURE of the VA. 22 Veterans committed
    suicide every day in 2010. This past Sunday (January 12, 2014) at 2008
    hours I chose to call the VA's suicide/crisis hotline on behalf of a
    veteran I felt was in distress and prone to taking his life. My call
    was answered by a machine, was immediately placed on hold with elevator
    music and my call was DROPPED after 4:15 min/sec . . . having never
    spoken to a human. Suicide/crisis line . . . never answered after 4+
    minutes . . . REALLY?!?!?!'' FRA passed on this information to VA
    staff.
        Expanding VA counseling to veteran's family members, strengthening
    oversight of IDES, and requiring VA to establish accurate measures for
    mental health were included in the NDAA for Fiscal Year 2013 are also
    important in addressing this issue. ``The number of military suicides
    declined significantly in 2013, a relief to the Services after record
    and near record levels in 2012.'' \4\
    ---------------------------------------------------------------------------
        \4\ Marine Corps Times, Feb. 17, 2014, ``Military Suicides Decline
    but Data Incomplete,'' Patricia Kime
    ---------------------------------------------------------------------------
                             adequate end strengths
        Adequate military end strength is vital in sustaining our national
    security, and FRA is concerned about budget-driven calls for reducing
    end strength. The strain and inadequate dwell time of repeated
    deployments are 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. For the last 13 years, servicemembers and their families
    have endured unprecedented sacrifices often having less than a year at
    home before returning for another year in combat.
        Now with these even greater end strength reductions, many
    servicemembers worry if they will be able to continue serving their
    nation.
        FRA believes that the Nation needs to maintain an adequate force to
    respond to unexpected contingencies and retaining combat experience by
    encouraging departing veterans to join the Guard and Reserve. On
    September 10, 2011 no one expected the following 12 years decade would
    find us engaged in a protracted war.
        Cutting Guard/Reserve Forces as well as Active Forces will make
    achieving these goals even more difficult to obtain. The Association is
    thankful that Congress has provided the Services with various voluntary
    tools to draw down the forces, but in the sequester-driven budget
    times, the Services are reverting to use of involuntary methods.
                         military predatory lending law
        FRA thanks this subcommittee for improvements in the Military
    Lending Act (MLA) specified in 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 (FTC).
    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 CFPB in January 2013 took its first enforcement action against
    a payday lender by ordering Cash America International, Inc. to refund
    consumers for robo-signing court documents in debt collection lawsuits.
    The CFPB also found that Cash America--one of the largest short-term,
    small-dollar lenders in the country--violated the Military Lending Act
    (MLA) by illegally overcharging servicemembers and their families. Cash
    America will pay up to $14 million in refunds to consumers and it will
    pay a $5 million fine for these violations and for destroying records
    in advance of the Bureau's examination.
        After a routine CFPB examination of Cash America's operations, the
    CFPB found multiple violations of consumer financial protection laws.
    This is the Bureau's first public enforcement action against a payday
    lender, its first public action under the Military Lending Act (MLA)
    and the first public action for a company's failure to comply fully
    with the CFPB's supervisory examination authority.
        FRA applauds CFPB efforts to regulate predatory lenders through
    enforcement of the MLA. The Association was in the forefront of
    supporting the enactment of the MLA in 2006 and supported the creation
    of the Office of Military Liaison within the CFPB when the Bureau's
    enabling legislation was enacted in 2010. FRA continues its work to
    ensure active duty personnel are protected from predatory lenders, and
    urges this subcommittee to ensure that the MLA is effectively
    administered.
        The NDAA also called on DOD to conduct a study to identify harmful
    credit products and practices and recommend protections to close
    loopholes. DOD is also required to promulgate a regulation to implement
    changes in the law. FRA, CFPB, and consumer groups have asked DOD 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
        FRA opposes the proposed reduced funding for military commissaries.
    Military commissaries and exchanges are essential parts of the military
    benefit package and FRA's on-line survey completed in February/March
    2014 indicates that 61 percent of active duty respondents and more than
    63 percent of retirees rated Commissary/Exchange privileges as ``very
    important.''
        A 2013 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. Exchange profits also
    fund important base morale, welfare and recreation programs (MWR) that
    contribute to an enhanced quality of life for military beneficiaries.
                                   conclusion
        FRA is grateful for the opportunity to provide these
    recommendations to this distinguished subcommittee.

        Senator Gillibrand. Thank you.
        Colonel Hayden?

      STATEMENT OF COL. MICHAEL F. HAYDEN, USAF (RET.), DIRECTOR,
     GOVERNMENT RELATIONS, MILITARY OFFICERS ASSOCIATION OF AMERICA

        Colonel Hayden. Madam Chairwoman, the MOAA, along with our
    coalition partners, disagree strongly with the budget proposal
    to shift billions more in health care costs to military
    beneficiaries. Fortunately, Congress rejected last year's
    TRICARE fee proposals, and we thank you for that.
        Yet this year, TRICARE fee proposal is much more than a
    regurgitation of last year's. It includes similar
    disproportionate pharmacy fee increases and means-tested
    TRICARE for Life enrollment fees, both rejected by Congress. It
    also includes a plan to consolidate the three major elements of
    TRICARE--Prime, Standard, and Extra--to what is being
    characterized as streamlining or modernization, which you heard
    this morning. Actually, this proposal will have families and
    retirees paying more and getting less. It retains the TRICARE
    Prime enrollment fee by relabeling it as a participation fee,
    yet eliminates the one major element that the enrollment fee
    assured, and that was guaranteed access standards.
        But even more concerning is that this includes fees where
    fees never existed before and provides no additional
    discernible value. For the first time, this proposal would have
    working-age retirees paying to be seen in the MTFs. DOD's
    proposal would also have military families paying more for
    their health care when they have limited or no access to
    military facilities.
        A main argument of this year's budget submission is to slow
    the growth of personnel costs to include health care. Critics
    continue to make claims of unsustainable health care cost
    growth since 2000, as if that was some type of reasonable
    starting point. But it's 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 cost growth has
    been declining ever since, and since 2010 the combination of
    military personnel and health care cost growth has been slowed
    to less than 2 percent per year.
        I do want to make one thing clear. The military TRICARE
    benefit is, by and large, an excellent one, but it has to be to
    help induce large numbers of top-quality people to accept the
    extraordinary demands and sacrifices inherent in a multi-decade
    military career. That's why assertions that military retirees
    pay far less for health care than civilians are so aggravating
    to those who wear the uniform or who have worn the uniform.
    Military people already pay far steeper premiums for health
    care coverage than any civilian ever has or ever will.
        We realize DOD is in a very difficult situation with
    sequestration's arbitrary and disproportionate cuts, cuts that
    need to be eliminated. However, we also believe that DOD can
    look at making the system much more efficient instead of simply
    shifting costs onto the beneficiaries. For example, there is no
    single point of responsibility for budgeting or delivery of DOD
    health care. The Defense Health Agency is a small step in the
    right direction, and the jury is still out on the projected
    savings. However, this fiscal year 2015 proposal does nothing
    to improve the benefit. It simply shifts DOD's cost onto the
    families and retirees because it's easier to do.
        We have worked with this subcommittee and the House of
    Representatives counterparts for the past several years to put
    what we think are reasonable fee standards in law, including
    annual adjustments tied to the retiree pay COLA percentage. We
    have accepted mail order requirements in lieu of higher
    pharmacy co-pays. All of these changes we accepted will save
    DOD billions in the coming years and have slowed the growth of
    health care costs. Now we think it's time to develop management
    efficiencies that won't impact beneficiaries, access to care,
    or delivery of quality of care.
        In closing, Secretary Hagel stated before the fiscal year
    2015 budget release that ``continuous piecemeal changes will
    only magnify uncertainty and doubt among our servicemembers
    about whether promised benefits will be there in the future.''
    We couldn't agree more. Any changes to pay, compensation, and
    benefits to include health care should be looked at
    comprehensively, not piecemeal. Since the congressionally-
    directed MCRMC has been tasked to take a holistic and
    comprehensive look at the entire compensation package and
    propose even broader reforms next year, these piecemeal budget-
    driven changes are even more inappropriate.
        Finally, we believe the budget will require balance, but we
    are concerned that DOD is heading down a previous path,
    repeating some of the very same mistakes that led to
    significant retention problems the Nation experienced by the
    late 1990s. History shows comparability can't work unless it is
    sustained through both good times and bad budget times. We are
    still a Nation at war. Capping pay and forcing troops and their
    families to pay more for their housing, health care, and
    groceries sends the wrong message.
        Thank you. I look forward to your questions.
        [The prepared statement of Colonel Hayden follows:]
       Prepared Statement by The Military Officers Association of America
        Madam Chairwoman and Ranking Member Graham, on behalf of over
    380,000 members of the Military Officers Association of America (MOAA),
    we are grateful for this opportunity to express our views and
    appreciate the subcommittee for hosting this hearing on the fiscal year
    2015 defense budget submission and the related personnel program
    proposals.
        MOAA does not receive any grants or contracts from the Federal
    Government.
        We are truly grateful for your unwavering commitment to men and
    women who defend our fine Nation.
        We appreciate that Congress have given personnel issues top
    priority in the past decade. You have had difficult choices to make
    while bolstering a weak economy and addressing budget deficits. The
    past few years have been arduous, with our military winding down
    operations in Afghanistan and the Nation dealing with the effects of
    sequestration.
                                 sequestration
        Sequestration was thought to be so harmful that it would have never
    come to pass. But it is a reality with DOD still taking a
    disproportionate share of the fix.
        The Bipartisan Budget Act of 2013 mitigated the sequestration
    spending cuts for fiscal years 2014 and 2015. However, the original
    sequestration cuts of fiscal year 2016 thru 2021 remain in effect,
    continuing to place national security at risk.
        This concern for readiness and national security was reinforced
    during Secretary Hagel's February 24, 2014, press conference outlining
    the fiscal year 2015 budget submission when he stated `` . . . the only
    way to implement sequestration is to sharply reduce spending on
    readiness and modernization, which would almost certainly result in a
    hollow force . . . the resulting force would be too small to fully
    execute the President's defense strategy.''
        The Services have been forced to slash flying hours, cancel the
    deployment of ships, renegotiate critical procurement contracts,
    temporarily furlough civilian employees, and are in the process of
    reducing force structure by some 124,000 personnel.
        As a result, sequestration caused the Pentagon to submit proposals
    in fiscal year 2014 that have started to reverse some of the needed pay
    and benefits fixes Congress put in place over the past decade--
    specifically, the military pay raise cap below the Employment Cost
    Index (ECI) of 1 percent, the lowest pay raise in 50 years and cutting
    the housing allowance.
        The proposed fiscal year 2015 defense budget assumes some
    additional monies will be forthcoming to mitigate sequestration
    impacts. However, the budget proposes additional force reductions of
    over 78,000 personnel. If sequestration is not ended, additional force
    reductions will likely go deeper and training and modernization will be
    further impacted--to include putting our national security strategy at
    risk.
        But what greatly concerns MOAA and should concern the subcommittee
    are the fiscal year 2015 budget submission proposals to ``slow the
    growth'' of personnel costs--a second year of capping the military pay
    raise below ECI with the possibility of four additional years,
    increasing out-of-pocket housing expenses for military families,
    significantly reducing commissary savings, and a consolidation of
    TRICARE plans which will have all beneficiaries except those in uniform
    paying more for their health care while eliminating access standards.
        While debt reduction is a national priority, such a disproportional
    share of this burden must not be foisted on the backs of military
    families who already have sacrificed more for their country than any
    other segment of Americans.
        Congress needs to end the harmful effects of sequestration by
    supporting a bipartisan debt reduction package that avoids
    disproportional penalties on the Pentagon and on servicemembers and
    their families.
                   military personnel and healthcare overview
        The most important element to a strong national defense is
    sustaining a top-quality, All-Volunteer Force. This requires a pay and
    benefits package that is fundamentally different from those of the
    private sector in order to induce young men and women to wear the
    uniform for not only one term of enlistment, but also for two decades
    or more.
        But military pay and benefits continue to come under attack. For
    many years, critics have claimed military personnel costs are ``rising
    out of control'' and, if left un-checked 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 time and some hard experiences have proven such claims wrong in
    the past--and they are still wrong today.
        But with this year's budget rollout, defense leaders were
    suggesting cuts to pay, the housing allowance, the commissary, and
    health care stating spending on pay and benefits for service members
    has ``risen about 40 percent more than growth in the private sector''
    since 2001.
        In addition, late last year there have been other alarming
    statements on the glide path that personnel costs are on, such as: ``by
    2025 or so 98 cents of every dollar [will be] going for benefits.''
        The truth is the same one-third of the defense budget has gone to
    military personnel and health care costs for the last 33 years. That's
    no more unaffordable now than in the past.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                          the fiscal year 2015 budget
        The fiscal year 2015 budget submission proposes several significant
    pay and benefit cuts which are inconsistent with the sacrifices
    exemplified by the last 12 years of war.

             Capping pay below the Employment Cost Index (ECI) for
            a second straight year (with more planned);
             Reducing Basic Allowance for Housing (BAH) by 5
            percent, reversing DOD's own initiative to eliminate out-of-
            pocket housing cost completed in 2005;
             Reducing commissary savings for uniformed service
            families; and
             Restructuring the TRICARE benefit where active duty
            families and retiree beneficiaries will pay more for their
            health care.

        The Pentagon is suggesting these cuts, in order to ``slow the
    growth'' of personnel costs stating personnel costs have ``risen about
    40 percent more than growth in the private sector'' since the turn of
    the century.
        But this is statement needs to be put in the proper context.
    Personnel cost growth has gone up at a rate greater than the private
    sector since 2000 . . . that's true. Since 2000, personnel and health
    care costs experience an average rate of growth of nearly 7.6 percent
    annually.
        But using ``2000'' as the baseline without reflecting on the
    historical context is misleading--it implies that 2000 was an
    appropriate benchmark for estimating what reasonable personnel and
    healthcare spending should be--it's not.
        Years of budget cutbacks led to a 13.5 percent pay gap, a 25
    percent reduced retirement value for post-1986 entrants, a point where
    service members were paying nearly 20 percent out-of-pocket for their
    housing costs, and beneficiaries over 65 were completely thrown out of
    the military health care system.
        In the late 1990s, retention was on the ropes, and Congress was
    being asked to correct these problems to prevent a readiness crisis.
        Congress did so over the next decade restoring military pay
    comparability (slide to the left), repealing the retirement cuts,
    zeroing-out member out-of-pocket housing costs, and restoring promised
    health coverage for older retirees.
        Cost growth since 2000-2001 was essential to keep the previous
    compensation cutbacks from breaking the career force.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Since 2011, personnel cost growth has already slowed to less than 2
    percent per year.
        The rate of military personnel and health cost change will only
    decline further in the out-years due to:

             Significant pharmacy copay increases which started
            last year (fiscal year 2013);
             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;
             Significant reductions to end strength;
             Recent changes to the retirement system for new
            entrants; and
             Savings from sustaining pay with private sector pay
            growth (ECI) since 2011.

        However, the proposals in this year's defense budget are a huge
    step backwards repeating many of the same bad habits during past
    drawdowns--cutting end strength, capping pay, and attacking benefits--
    that led to the difficult retention times of the late 1990s.
        Past experience of capping military raises below private sector pay
    growth has proven that once pay raise caps begin, they continue until
    they undermine retention and readiness--and this is the second year of
    proposed pay caps with a possibility of four more.
        One pay cap is a data point, two is a line, and three is a trend.
    Six years of planned caps is definitely a bad trend and does not bode
    well for the currently serving.
        This proposal is not limited to pay. This ``quadruple whammy'' of
    capping pay, increasing out-of-pocket expenses for housing, slashing
    commissary savings, and having military families pay more for their
    health care, would be major steps backward on the road towards
    repeating the insidious measures which led to retention and readiness
    problems in the past.
        Each may seem small by themselves . . . a pay cap of .8 percent. A
    5 percent out-of-pocket housing cost. Copays for family off-post doctor
    visits. Reduced savings at the commissary.
        However, the elimination of the $1 billion subsidy for the
    commissary benefit itself will reduce the purchasing power of a
    military family of four by nearly $3,000 annually.
        When you add up the fiscal year 2014 and fiscal year 2015 pay caps,
    the proposed BAH reductions, the reductions in commissary savings, and
    the new TRICARE fee structure, an E-5's family of four would experience
    a loss of nearly $5,000 in purchasing power annually; and an O-3's
    family of four would experience a loss of nearly $6,000.
        These are very conservative projections seeing that it only
    includes 2 years of pay caps and the new TRICARE consolidation/fees
    will be very dependent on a military family's access to an MTF and
    special needs.
    TRICARE Consolidation
        DOD again is proposing similar disproportionate pharmacy fee
    increases and a means-tested TFL enrollment fee as they did last year
    and in the past that thankfully Congress has rejected.
        But it also includes a plan to consolidate the three major elements
    of TRICARE--Prime, standard, and extra--into what is being
    characterized as ``streamlining'' or ``modernizing''.
        In this proposal currently serving families and retirees will pay
    more and get less. It retains the TRICARE prime enrollment fee by re-
    labeling it as a ``participation'' fee yet eliminates the one element
    that the enrollment fee assured . . . guaranteed access standards.
        But even more disconcerting is that the proposed change includes
    fees where fees never existed before and provides no discernable value.
    For the first time, this proposal would have working-age retirees
    paying to be seen in the military treatment facilities.
        The Pentagon proposal will have military families paying more for
    their health care when they have limited or no access to military
    facilities.
        MOAA wants to make one thing clear. The military TRICARE benefit is
    by and large an excellent one.
        But it has to be, in order to induce large numbers of top-quality
    people to accept the extraordinary demands and sacrifices inherent in a
    multi-decade military career.
        Military people already pay much steeper premiums for health
    coverage than any civilian ever has or ever will.
        Defense leaders say they'll keep faith with the currently serving
    on retirement reform, and would apply changes only to new entrants.
        But if it's breaking faith to change the rules for someone with 10
    years--or 1 year--of service, it's doubly so to impose new fees on
    military families who don't have access to the MTFs as well as imposing
    fees for use of the MTF on those who already completed 20 or 30,
    whether they'll retire next year or are already retired.
        We believe DOD must look at making the system much more efficient
    instead of simply shifting costs. For example, there's still no single
    point of responsibility for budgeting or delivery of DOD health care.
        DHA is a small step in the right direction and the jury is still
    out on projected savings; however, this fiscal year 2015 proposal does
    nothing to improve the benefit . . . it simply shifts DOD's costs onto
    the families and retirees, because it's easier.
        We've worked with this subcommittee and the House counterpart for
    the past several years to put what we think are reasonable fee
    standards in law . . . including annual adjustments tied to the retired
    pay COLA percentage.
        We've accepted mail-order requirements in lieu of higher pharmacy
    copays.
        All of these changes we accepted will save DOD billions in the
    coming years and has slowed the growth of health care costs.
        Now we think it's time to develop management efficiencies that
    won't impact beneficiary fees, access to care, or delivery of quality
    care and simply shift more of DOD's costs onto them.
                                    summary
        In closing, Secretary Hagel stated before the fiscal year 2015
    budget release that, ``Continuous piecemeal changes will only magnify
    uncertainty and doubts among our service members about whether promised
    benefits will be there in the future.''
        We couldn't agree more. Any changes to pay, compensation, and
    benefits, to include health care, should be looked at comprehensively--
    not in a piecemeal manner.
        Since the congressionally-directed Military Compensation and
    Retirement Reform Commission has been tasked to take a holistic and
    comprehensive look at the entire compensation package, and propose
    broader reform proposals next year, these piecemeal, budget-driven
    changes are even more inappropriate.
        What's needed is to sustain pay and benefits for the men and women
    in uniform and their families as well as those that have faithfully
    served two decades or more.
        MOAA remains concerned that the Pentagon is heading down a
    previously taken path, repeating some of the very same mistakes that
    led to significant retention problems the Nation experienced by the
    late 90s and undoing the needed compensation improvements Congress has
    made since 2000 to match the extraordinary demands and sacrifices of
    military service and a military career.
        History shows comparability can't work unless it's sustained
    through both good and bad budget times. We are still a nation at war -
    capping pay and forcing troops and their families to pay more for their
    housing, health care, and groceries sends the wrong message.
        The most important element of a strong national security is the
    sustainment of a dedicated, top-quality mid-level noncommissioned
    officer and office force. These changes will significantly devalue the
    compensation and benefits needed to sustain those seasoned, trained,
    and talented troops and ultimately have a negative impact on
    recruiting, retention, and overall readiness.

        Senator Gillibrand. Thank you.
        Captain Hanson?

       STATEMENT OF CAPT MARSHALL HANSON, USNR (RET.), DIRECTOR,
     LEGISLATIVE AND MILITARY POLICY, RESERVE OFFICERS ASSOCIATION

        Captain Hanson. Thank you, Madam Chairwoman. I am Marshall
    Hanson. In addition to my legislative job at the ROA, I am also
    a co-chair for TMC's Guard and Reserve Committee. We appreciate
    the opportunity to testify this afternoon.
        All of us have heard how the Army expects to reduce its
    numbers to below the manning levels prior to World War II. What
    is missing from this explanation is a back-up plan if DOD's
    strategy is wrong. Between 1924 and 1939, while the Active Army
    was small in size, the plan was to mobilize 1.3 million men
    within 4 months of any crisis. No such fallback plan exists
    today, placing the full onus onto the Reserve and National
    Guard to provide any surge.
        While there is an increasing number of studies supporting
    the Reserve and Guard cost efficiencies, the Army is pushing
    back against the role of the Reserve Force. Using the
    Quadrennial Defense Review as a reference, the Army is now
    challenging how quickly the Reserve or Guard can be mobilized
    to respond to a crisis. Over the last 13 years, nearly 900,000
    Reserve and Guard members have been mobilized.
        TMC believes that the Nation needs to continue to use the
    Reserve components as an operational force and sustain this
    number as a surge capacity for unexpected contingencies. As DOD
    is willing to accept risks, as we heard this morning, the
    Reserve and Guard are the only insurance policy. It is
    important to retain the combat experience of veterans in the
    Reserve component during a reduction in the total force.
    Cutting the Reserve and Guard, as well as the Active-Duty
    Forces, will make achieving readiness goals even more
    difficult.
        This is why there needs to be caution before making
    compensation cuts to the Reserve Force. Compensation needs to
    keep pace with the Nation's ever-increasing reliance on the
    Reserve and the Guard. Yet DOD wants to reduce monthly
    reimbursement, has suggested changes to retirement, and cost
    increases for benefits.
        If you calculate the number of days worked against current
    pay, the ratio for both Active and Reserve components are the
    same. Reducing monthly pay will drive away the best, as they
    can reap higher rewards elsewhere. Suggested changes to
    retirement will actually pay Reserve Force retirees less over
    their lifetime.
        A fiscal year barrier exists, denying reservists a 90-day
    credit if their service crosses between 2 fiscal years. TMC
    supports S. 240 by Senators Tester, Chambliss, and Blumenthal
    to retroactively fix this problem in U.S. Code. TMC also
    advocates expanding the early retirement to the warriors who
    served since September 11, 2001. As many senior officers and
    enlisted are performing duty without pay, TMC also endorses
    crediting all inactive duty toward Reserve retirement.
        Several years ago, DOD reassured beneficiary associations
    that TRICARE Reserve Select (TRS) would not be included in fee
    increases that DOD had requested. This year, however, if fees
    are increased, DOD leaders say they will be the same for TRS as
    it will be for TRICARE Standard beneficiaries. DOD views TRS
    not as a health program for Reserve and Guard, but as a health
    insurance option. Reserve Force members have proven themselves
    over the last 13 years and should have a health care program
    fit for warriors.
        Undesirably, 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 Active
    Duty. This has caused many Reserve members to be uncertain
    about TRS. TMC supports an option to pay a stipend to employers
    during mobilization periods, permitting family members to
    continue on their civilian medical insurance.
        For those reservists who are wounded or injured, many are
    not receiving the same disability rating as their Active Duty
    counterparts. If any warrior is asked to take a risk, their
    benefits should not be discounted, because no one is part-time
    in a war zone. Similarly, if they make the final sacrifice in
    the line of duty, Reserve and Guard surviving family members
    should receive the same level of survivor benefits as their
    Active Duty counterparts.
        TMC looks forward to working with this subcommittee on
    these and other issues highlighted in the written testimony. I
    thank you. I await your questions.
        [The prepared statement of Captain Hanson follows:]
     Prepared Statement by the Reserve Officers Association of the United
                    States and 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.
        With less than 7 percent of the U.S. population ever having served
    and less than 1 percent of the population currently in uniform, the
    Reserve Forces provide a necessary link between the military and the
    civilian communities. 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.
        Both the Title 10 Reserve and the National Guard provide support to
    States during natural and man-made disasters, as well as provide
    homeland defense against foreign threats.
        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.
                          eliminating the reserve gap
        After 13 years of war, Reserve Force members feel they have done
    their share as equal partners in the total force. Bolstered by comments
    such as ``when you go into the combat theater, you can't tell the
    difference between Guard, Reserve, or Active-Duty member--which have
    been made by both congressional and Pentagon leadership--members of the
    Reserve Force feel they have contributed to the total All-Volunteer
    Force.
        Congress and the American people in many cases do not recognize the
    incredible value of the Reserve Forces, overlooking the contributions
    that have been made, and the readiness factor that the Reserve Force
    provides. Sadly, the Reserve Force is often overlooked when legislation
    is written, leaving gaps in protections, benefits, and funding.
        At 1.1 million serving members, the military's Reserve Force makes
    up 48 percent of the Armed Forces. During the last 13 years of war, the
    Pentagon has ordered nearly 900,000 call-ups from the Reserve and
    National Guard in support of the Total Force. The war couldn't have
    been fought without the Reserve Force.
        Yet, a perception gap exists between the Active and Reserve
    components that has lead to the current clash between the Army and the
    National Guard. Recent comments by Army leadership suggested that the
    Army Reserve Force was assigned missions that required less
    sophisticated tactical planning, coordination, and execution that has
    been interpreted as casting the Army Reserve Component, in particular
    the Guard, as a second-rate fighting force. This is insulting and
    shocking to a generation of Guard and Reserve warriors who thought Army
    leaders valued their service.
        Starting from the top with Army Chief of Staff Ray Odierno, Army
    active duty leadership have argued that Reserve Force troops who train
    part-time are ill-prepared to quickly mobilize for missions that are
    reactive to crises and rapidly emergent threats.
        The Reserve component leadership, on the other hand, wants their
    components to be considered equally vital and used more operationally.
    Active Duty leadership sees vulnerability in an availability cycle that
    is ``mobilize, train, and deploy.'' Reserve leadership supports a cycle
    of ``train, mobilize, and deploy'' to improve mobilization readiness.
    These differences in view are based on available resources and
    willingness to invest in advance on the training.
        DOD directive 1235.10 states that ``Predictability of the Reserve
    component forces is maximized through the use of defined operational
    cycles and utilizing force generation plans to provide advanced
    notification that allows the implementation of the train-mobilize-
    deploy model.''
        Advance notification is becoming a stumbling block. Last year's
    National Defense Authorization Act (NDAA) requires a minimum 120-day
    notification prior to deployment and a minimum 180-day notification
    prior to cancellation of deployment for the operational Reserves. This
    causes the active duty leadership to prefer Active-Duty Forces over
    Reserve Forces for deployment because of greater flexibility.
        The Active Navy views their Reserve as an augmentation force. The
    Navy Reserve has declined in size by nearly 63 percent since the end of
    the Cold War. Today, there are fewer units with specific fleet missions
    or operational responsibilities. Expeditionary missions that were
    developed within the Navy Reserve were taken over by the Active Force.
    With the end of the Iraq War and the draw down in Afghanistan, the U.S.
    Navy is reducing the size of the supporting Navy Reserve Expeditionary
    Force. Thirteen years of war merely delayed the active duty plans to
    reduce the Reserve Seabee battalions with the Navy announcing a 45
    percent reduction in Navy Reserve construction forces.
        The Air Force is perhaps the most integrated service. It
    acknowledges that traditional guardsmen and reservists in the Air Force
    dedicate themselves fully to their service's core principles and
    ideals, and the Reserve components cannot be a traditional strategic
    Reserve Force, but there is still a separate but ``equal'' status
    between the components. Unlike other Services, the Air Force components
    don't have to necessarily train together. Associate units exist but not
    necessarily with integrated crews. Parallel commands, missions and
    administration continue despite common use of equipment.
        The National Commission on the Restructuring of the Air Force found
    that barriers remain between the Active and Reserve components in the
    Air Force. ``Some of those barriers are contained in law, but others
    reside solely in service policy, tradition, and culture.''
        The report points out that ``the Air Force must embrace the idea
    that service in the Reserve components does not constitute `separation'
    or `getting out of the Air Force,' but rather is a way for airmen to
    continue to serve and for the Nation to maintain capability and
    preserve its investment in highly trained and dedicated people.''
        The Coast Guard Reserve has been embedded into the active Coast
    Guard since the mid-1990s. During the war it was undermanned at 8,100,
    but met mission requirements both in war overseas and domestically
    during natural and manmade disasters. Budget constraints have required
    the active duty leadership to transfer about 1,000 of the authorized
    end strength into the non-paid Individual Ready Reserve.
        Also, at issue for all Reserve components is training to service
    standards. Reserve and Guard members need to be trained and equipped to
    the standards expected of the Active Force, to do otherwise, will leave
    the United States a military that is ill-prepared to meet future
    challenges.
        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.
        This committee need not be reminded about the 2010 study ``The
    Independent Panel Review of Reserve Component Employment in an Era of
    Persistent Conflict,'' written by Gen. Dennis J. Reimer, LTG Roger C.
    Schultz, and LTG James R. Helmly, all retired. Also known as the Reimer
    report, it says that Reserve Forces must be ``consistent and sustained
    over time instead of the past paradigm of fight-win-demobilize-return
    to garrison and subsequently mobilize for another conflict--at huge
    cost in people and money.''
    Requested Action:

             Include the Reserve Force in legislation protecting
            serving members.
             Recognize the Title 10 Reserves as well as the
            National Guard in bills and press releases.
             Provide funding for family, health care and veteran
            support for Reserve Force members:

                     Family Support Programs for families of
                    serving Reserve and Guard members.
                     Mental and behavioral health care for pre- and
                    post-activation periods.
                     Military and Veteran Health coverage in remote
                    locations.

             Restore Reserve Force education parity to Active Duty:

                     Begin eligibility when the service member
                    elects to use the program the first time.

                             Extend eligibility to 10 years
                            following enrollment.

                     Increase MGIB-Selected Reserve to 47 percent
                    of MGIB-Active of $1,564 per month.
                     Include 4 year as well as 6-year reenlistment
                    contracts to qualify for MGIB-SR.
                     Allow use of the MGIB benefit to pay off
                    student loans.
                     Continue eligibility for up to 10 years after
                    separation from the Selected Reserves.

        Recent studies by both the Reserve Forces Policy Board and by DOD
    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.
                               economic argument
        The Reimer report included many common-sense ideas for maintaining
    what is arguably the most cost-effective part of the military.
        The National Commission on the structure of the Air Force report
    echoes the Reserve as the cost saving component: The ``Part-time''
    force structure--that capability delivered by traditional reservists
    and guardsmen who do not serve continuously on active duty--costs less
    than the force structure provided by ``full-time personnel . . . Based
    on the record before the Commission, and subject to all the caveats set
    out [in the report], the Commission determined that the cost of a
    traditional reservist, who is not performing active duty missions
    during a year, is approximately 1/6th the cost of a full-time Active
    component airman.''
        While the Reserve Force Policy Board (RFBP) calculated different
    savings, it came to the same conclusion: ``The cost of a Reserve
    component servicemember, when not activated, is less than one third
    that of their Active component counterpart,'' reported the RFPB to the
    Secretary of Defense in January 2013. ``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 Active component
    counterparts' per capita costs, depending on which cost elements are
    included. While Reserve component forces account for 39 percent of
    military end strength, they consume only about 16 percent of the
    Defense budget.''
        Even DOD's internal Cape Report concludes that Reserve and Guard
    troops are not only cheaper when in drilling status but also when fully
    mobilized, in part because their overall compensation is lower when
    taking into account noncash benefits such as retirement accrual and
    health care. Additionally, the overhead cost overall for reservists are
    lower because part-time troops do not tap into many military perks such
    as family housing, DOD schools, military base family support and
    permanent change of station moving allowances while active-duty troops
    move every few years when they are reassigned.
        With so many studies supporting the life-cycle saving if DOD better
    utilized the Reserve component, the Active component leadership is now
    pushing back, using the Quadrennial Defense Review (QDR) as their
    reference. DOD is challenging how quickly the Reserve Force can be
    mobilized during a crisis, and emphasizing that conducting operations
    with Reserve component forces is not always less expensive than doing
    so with Active component forces.
        An example of the latter is Gen. G. Michael Hostage, III, Commander
    Air Combat Command, who while acknowledging the need to operationalize
    reservists in order to maintain dwell cycles for the active duty,
    stressed that in order to activate a reservists, he would have to have
    a 270-day call-up in order to gain 180 days of operational support.
        General Martin E. Dempsey noted in the 2014 QDR that ``since time
    is a defining factor in the commitment of land forces, I strongly
    recommend a comprehensive review of the Nation's ability to mobilize
    its existing Reserves as well as its preparedness for the potential of
    national mobilization.''
        The Active component wants to return to the days of round-out units
    (strategic reserve). No one argues that Active Duty units will not
    always be the first responders, but Reserve Force units if properly
    trained and equipped are perfectly capable for follow-on operations or
    during a long conflict.
        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. Civilian skill sets add to the value of the
    individual Reserve component serving member.
        A common sense balance between Active and Reserve components is
    needed; as the American people are unwilling to pay for an Active Army
    large enough to meet all of Nations defense responsibilities by itself.
    If we don't take care of the Guard and Reserve, we'll have no ``safety
    net'' for the next fight.
        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
    guidance policy.
        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.''
        In the Hamilton Project report--``National Defense in a Time of
    Change'', authors ADM Gary Roughhead, U.S. Navy (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 suggested that while Congress should reduce the Army, ``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.''
               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.

        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, because of suggested changes to compensation
    and benefits.
        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.
        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 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.
        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 (NGREA)
        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 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 to continue to close the Active/
    Reserve component modernization and interoperability gap.
           additional funding for reserve component support programs
        While Reserve components have worked closely with their parent
    services to develop seamless, integrated family readiness and support
    programs to provide information and services to all members, support
    differs between the Active and Reserve components.
        Family Support
        Family readiness centers are located on military bases, but
    unfortunately few Reserve units are located near such bases. It is more
    likely for spouse and dependents to move to families for support rather
    than onto active military locations. Additionally, active units have
    developed internal family support networks. These are not as easy to
    maintain in the Reserve and Guard as member families are scattered
    throughout the civilian community. The most common support for Reserve
    Force families is online at such websites as Military OneSource.
        Reserve Force members face unique challenges balancing military
    service with civilian life. Unlike active duty members of the Armed
    Forces, they juggle the demands of both military and civilian jobs.
    Their families often live where there is less community support
    available to them than active duty military families who can share
    issues and concerns with people dealing with the same challenges.
        Many in Congress and in the Pentagon overlook the challenges faced
    by Reserve families. The 2004 Quadrennial Quality of Life Review noted,
    from a spouse survey, that more than 60 percent of Reserve component
    spouses had 2 weeks or less notification before activation. The spouses
    indicated they needed time during pre-activation to resolve dependent
    care, legal, health coverage, and financial issues. Due to limited
    support, marital problems for the Reserve components have increased
    from 37 percent in 2006 to 44 percent in 2008.
        A child of an active duty military family whose parent is deployed
    often has several friends with military parents, whereas a reservist's
    child may be the only one in his or her school with a parent who is
    deployed. ROA is working up a school kit to explain to teachers about
    the stresses faced by children of Reserve or Guard members who are
    deployed.
        Mental Health
        A team of Medill students found significant gaps between the health
    care and support for the Reserve and National Guards members who have
    fought in Iraq and Afghanistan and their active-duty counterparts. Many
    Reserve Force members have been hastily channeled through a post-
    deployment process that has been plagued with difficulties, including
    reliance on self-reporting to identify health problems. They report
    higher rates of some mental health problems and related ills than
    active-duty troops. The students' 2011 research suggest that attempts
    by Congress, the military and private contractors to address the
    problems have been uncoordinated and often ineffective.
        A study by Marian E. Lane, Ph.D. found rates of post-traumatic
    stress disorder (PTSD) and suicidal ideation were significantly higher
    in the deployed reservists compared to deployed active-duty personnel.
    Lane believes that reservists may react more extremely to the anxiety
    of potential deployment than active-duty personnel because they are
    somewhat removed from the daily stresses of military action. One size
    treatment doesn't fit all; providing services and interventions
    tailored to reservists will better facilitate the successful return and
    reintegration of servicemembers experiencing post-deployment mental
    health issues.
        Reservists lack access to the system or networks that are needed to
    assess and treat their injuries. After brief demobilization
    assessments, Reserve troops return home and must navigate disparate
    health-care and support providers. This is further complicated by
    distances between Reserve Force members and the military health and
    behavior provider networks.
        Education
        The Reserve Force education allowance is woefully inadequate, at
    less that 23 percent of the Active Duty MGIB (Chapter 30) and 11.5
    percent of the new Post-9/11 GI Bill tuition and allowances. Most
    selected reservists (which include National Guard as well as Reserve
    members) don't apply, because they are unable to take advantage of the
    education benefit while performing their Reserve duties. Based on their
    service in the global war on terrorism at home and abroad, today's
    military reservists deserve enhancements to their eligibility under the
    MGIB for Selected Reserves.
        In 2008, amendments to U.S. Code, chapter 1606 made the Montgomery
    GI Bill for Selected reservists in a drill status even more
    restrictive. The only education program is offered to traditional
    reservists after their initial active duty obligation, when they
    reenlist is for a period of 6 years. Eligibility ends when the
    individual is separated from the Selected Reserve, either upon
    completion of their reenlistment, upon retirement, or when transferred
    out of a pay status.
        Where servicemembers once had up to 14 years to use their MGIB-SR
    benefits from the time they became eligible, such language has been
    stricken. Eligibility for these benefits now only lasts until the
    reservist or guardsman stops drilling. An exception is if a reservist
    stops drilling after being activated, he or she may switch back to
    Chapter 1606 for a period equaling the length of deployment plus 4
    months. Active Duty recipients have 10 years after separation to use
    their benefits.
                                  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.
        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.

        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 September 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.

    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.
        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
    members.
    Requested Actions:
             Make Tricare Reserve Select a standalone health care
            program by:

                     Decoupling it from any changes made to Tricare
                    Standard; and
                     Requiring members to opt out rather than
                    enroll in.

             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,
                     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. REA and REA
    cannot support recommended fee increases and the relabeling of the
    military health program. 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.
                 a second look at base realignment and closure
        Reports have surfaced that the Pentagon has authority (10 U.S.C.
    Section 2687) to close bases domestically, as archaic laws remain on
    the books providing DOD with authority to close facilities without
    congressional approval. This authority only requires notification. Both
    the Army and the Air Force say that without further infrastructure that
    budget reduction would require deeper end strength cut, reduced
    readiness, and reductions in weapons procurement.
        To oversee the process, Congress must maintain control; the most
    effective tool is Base REalignment and Closure (BRAC). The BRAC process
    reduces political influences with the establishment of an independent
    panel, and an up or down approval of the commission's recommendations
    by Congress.
    Requested Action:
             Limit any BRAC to base closures where expenses will be
            covered by savings within the first 5 years.
             Set a goal to maintain a Title 10 military presence in
            every State.
             Study overseas basing and relocation within the United
            States before determining excess domestic infrastructure.
             Do not use Reserve and Guard installations to be the
            bill payers to keep active facilities open.
             Update bonuses and travel allowances for Reserve Force
            personnel displaced by future BRAC decisions.
             Provide Reserve Transition Incentives to offset the
            penalty of earlier retirement. Include the cost of allowances
            and incentives in calculation of overall BRAC expenses.

        Any future round of BRAC must include force realignment analysis to
    take into account future integration of Reserve and Active duty units,
    as the elimination of parallel unit structures may give reason for
    consolidation of infrastructure.
                                   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 and sequestration
    are going to make this committee's job that much harder.
        ROA and REA look forward to working with the personnel sub-
    committee where we can present solutions to these challenges and other
    issues, and offers our support in anyway.

        Senator Gillibrand. Thank you.
        Mrs. Moakler?

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

        Ms. Moakler. Good afternoon, Madam Chairwoman. I am
    Kathleen Moakler, Government Relations Director of the NMFA and
    a proud military family member. I also co-chair two committees
    for TMC.
        Thank you for allowing me to speak to you on behalf of
    military families this afternoon, and thank you for your
    eloquent words about military families in your comments before
    the first panel this morning. My statement will reinforce your
    words.
        While some families still have loved ones deployed, many
    families felt the hardships were over for a while. For 13
    years, they have experienced repeated deployments, worried
    about a loved one in harm's way, parented on their own, and put
    their lives on hold year after year. They know this is what
    their servicemember had signed up for, but they also felt their
    government was there to support them, to have their backs, and
    had provided them the tools they needed to get through it, many
    provided by this subcommittee.
        Servicemembers and their families have kept trust with
    America through over 13 years of war. Unfortunately, that trust
    is being tested. Recent national fiscal challenges have left
    military families confused and concerned about whether the
    resources contributing to their strength, resilience, and
    readiness will remain available to support them. We know that
    looming cuts mandated by sequestration threaten these programs
    and services they rely on.
        The administration's proposals to cut pay increases, reduce
    housing allowances, eliminate commissary savings, and increase
    health care costs, all at the same time, pose significant risk
    to the financial well-being of military families.
        We ask Congress to oppose shifting health care costs to
    Active Duty family members. The proposed consolidated TRICARE
    health plan would create a barrier to accessing care by making
    military families pay more when they need to see a doctor
    outside the military hospital or clinic.
        We have been successful over the past few years in reducing
    the stigma associated with military families seeking behavioral
    health counseling. Because of the shortage of military
    behavioral health providers and the appropriate focus on first
    providing care to the servicemember in the MTF, our families
    often have no choice but to seek counseling outside the
    military hospital. Special needs families face the same limited
    choices for most of their specialty care. Let's not prevent
    military families from seeking the help they need because they
    have to pay out-of-pocket.
        Military families tell us they rely heavily on the
    commissary savings and appreciate the good deal they get. We
    believe that the 30 percent savings available to military
    families who regularly shop at the commissary is an important
    part of compensation. In 2013, for every dollar spent from
    appropriations, military families realized $2 in savings. Why
    are we messing with a successful system?
        We repeat and reiterate what we told this subcommittee last
    year. We need Congress to end sequestration once and for all,
    which places a disproportionate burden on our Nation's military
    to reduce the deficit.
        We also want to speak for those who have been affected the
    most by these past years of war. We ask you to correct
    inequities in survivor benefits by eliminating the Dependency
    Indemnity Corporation (DIC) offset to the survivor benefit
    plan. We agree with the recommendations of the 11th Quadrennial
    Review to ensure Survivor Benefits Plan (SBP) annuities for the
    family of a reservist who dies while performing Active Duty
    training are calculated using the same criteria as for a member
    who dies while on Active Duty.
        Servicemembers and their families must be assured that our
    Nation will provide continued, unwavering support to the
    wounded, ill, and injured. This support must also include
    programs and services that help military caregivers, typically
    spouses or parents, successfully navigate their new role.
    Please continue to support these important resources and ensure
    that the resources adapt as the needs of these families change.
        In order to keep the trust of military families, the Nation
    must keep its promises. Reject budget proposals that threaten
    military family financial stability as a way to save money for
    the government. Military families continue to do their part to
    ensure the readiness of our fighting force. We ask the Nation
    to do their part in providing for the readiness of military
    families. Our highest priority, as is yours, is a ready force.
        Thank you. I await your questions.
        [The prepared statement of Ms. Moakler follows:]
         Prepared Statement by the National Military Family Association
        Chairwoman Gillibrand, Ranking Member Graham, and distinguished
    members of the subcommittee, the National Military Family Association
    thanks you for the opportunity to present testimony concerning the
    quality of life of military families--the Nation's families. After more
    than 13 years of war, we continue to see the impact of repeated
    deployments and separations on our servicemembers and their families.
    We appreciate the Personnel Subcommittee's recognition of the service
    and sacrifice of these families. Your response through legislation to
    the ever-changing need for support has resulted in programs and
    policies that have helped sustain our families through these difficult
    times.
        We also appreciate the creation by Congress of the Military
    Compensation and Retirement Modernization Commission. We feel it is
    imperative that its charter be honored. It was formed to examine the
    entirety of the military compensation system. We have provided input to
    the Commission on issues important to military families and suggested
    alternatives that could enable the Department of Defense (DOD) to
    provide benefits and family support services more effectively. We are
    not opposed to changes in the compensation system if they are made
    after thoughtful research and consultation and careful study about how
    the changes in individual elements of the system affect the whole. A
    piecemeal approach will not work. We expect the commission process to
    be respected and the recommendations thoughtfully considered in
    consultation with all the stakeholders.
        We endorse the recommendations contained in the statement submitted
    by The Military Coalition on personnel issues and health care. We have
    chosen to focus our statement on issues affecting current
    servicemembers and their families.
                               executive summary
        The U.S. military is the most capable fighting force in the world.
    Over more than a decade of war, servicemembers and their families never
    failed to answer the call, gladly sacrificing in order to protect our
    Nation. They made these sacrifices trusting that our government would
    provide them with resources to keep them ready. Recent national fiscal
    challenges have left military families confused and concerned about
    whether the programs, resources, and benefits contributing to their
    strength, resilience, and readiness will remain available to support
    them and be flexible enough to address emerging needs. DOD must provide
    the level of programs and resources to meet this standard.
    Sequestration weakens its ability to do so. Servicemembers and their
    families have kept trust with America, through over 13 years of war,
    with multiple deployments and separations. Unfortunately, that trust is
    being tested. The fiscal year 2015 budget proposal put forward by the
    administration will undermine military family readiness in fundamental
    ways, by cutting families' purchasing power and forcing them to bear
    more of their health care costs. At the same time, looming cuts
    mandated by sequestration threaten the programs and services they rely
    on for support. Our Association makes the recommendations in this
    statement in the name of supporting the readiness of military families
    and maintaining the effectiveness of the All-Volunteer Force. We ask
    the Nation to keep the trust with military families and not try to
    balance budget shortfalls from the pockets of those who serve.
        We ask Congress to:
        Let the Military Compensation and Retirement Modernization
    Commission (MCRMC) do its job in evaluating compensation, including
    health care, Basic Allowance for Housing (BAH), and commissaries,
    holistically.
        As you evaluate the proposals submitted by DOD, we ask you to
    consider the cumulative impact on military families' purchasing power
    and financial well-being, as well as their effects on the morale and
    readiness of the All-Volunteer Force now and in the future. We ask you
    to:

             reject budget proposals that threaten military family
            financial well-being as a way to save money for the government.
             keep military pay commensurate with service and
            aligned with private sector wages.
             oppose shifting health care costs to active duty
            family members. We especially ask you to oppose any TRICARE
            change that will create a barrier to military families' access
            to behavioral health care.
             protect the 30 percent savings military families
            receive when shopping at the commissary by continuing the
            annual appropriation to support the system at its current
            level. Commissaries are part of compensation and provide
            important savings for military families.
             ask DOD how the reduction in BAH payments will impact
            the contracts that have been negotiated with the privatized
            housing contractors. Will this result in fewer services,
            reduced maintenance or families paying over and above their BAH
            for their privatized housing?

        We especially ask Congress to end sequestration, which places a
    disproportionate burden on our Nation's military to reduce the deficit.
        We have addressed the immediate and long-term impacts of the
    proposed fiscal year 2015 budget on military families. Our Association
    also asks Congress to make improving and sustaining the programs and
    resources necessary to keep military families ready a national
    priority. We ask Congress to:

             Provide oversight to ensure DOD and the individual
            Services are supporting families of all components by meeting
            the standards for deployment support, reintegration, financial
            readiness, and family health in Department of Defense
            Instruction (DODI) 1342.22. Fund appropriately at all levels.
            Special attention needs to be paid to the flexibility for surge
            capabilities.
             Join with DOD to help civilian communities realize
            their role in supporting servicemembers and families is
            ongoing, even as servicemembers transition to veteran status.
             Continue funding the Yellow Ribbon program and stress
            the need for greater coordination of resources supporting
            Reserve component families.
             Ensure families of all seven Uniformed Services have
            timely access to high quality, affordable health care and a
            robust TRICARE benefit including preventive health care
            services.
             Instruct DOD to ensure future TRICARE policy changes
            are thoroughly analyzed before being implemented with the
            impact on beneficiary access to the medical standard of care as
            a top consideration.
             Ensure military families' access to the medical and
            non-medical counseling they need to recover from the stress of
            long years of war.
             Ensure TRICARE makes the process for accessing
            specialty care more flexible and streamlined to address the
            unique aspects of military life without having families pay
            more out-of-pocket.
             Instruct TRICARE to enhance the Extended Care Health
            Option (ECHO) program's utility to military families by
            ensuring it covers the products and services families need.
            Extend ECHO eligibility for 1 year following separation to
            provide more time for families to obtain services in their
            communities or through employer-sponsored insurance.
             Continue funding DOD's Spouse Education & Career
            Opportunities (SECO) programs. Make military spouse preferences
            and hiring authorities non-discretionary. Expand outreach and
            eligibility for the My Career Advancement Account (MyCAA) to
            spouses of all of the Uniformed Services to facilitate better
            utilization and access.
             Ensure adequate funding for military child care
            programs, including child care fee assistance programs.
             Ensure appropriate and timely funding of Impact Aid
            through the Department of Education (DoEd) and restore funds to
            the Impact Aid Federal properties program.
             Continue to authorize DOD Impact Aid for schools
            educating large numbers of military children and restore full
            funding to Department of Defense Education Activity (DODEA)
            schools and the DODEA Grant Program.
             Help families in crisis by funding ongoing tracking of
            military family suicides. Ensure Family Advocacy programs are
            funded and resourced appropriately to help families heal and
            aid in the prevention of child and domestic abuse.
             Correct inequities in Survivor benefits by eliminating
            the Dependency and Indemnity Compensation (DIC) offset to the
            Survivor Benefit Plan (SBP); allowing payment of the SBP
            annuity into a Special Needs Trust to preserve disabled
            beneficiaries' eligibility for income based support programs;
            and ensuring SBP annuities for a reservist who dies while
            performing active duty training are calculated using the same
            criteria as for a member who dies while on active duty.
             Ensure better cooperation and accountability between
            DOD and the Department of Veterans Affairs (VA) at the highest
            levels in the support of transitioning wounded, ill, and
            injured servicemembers and caregivers. The lack of a seamless
            transition between agencies still exists and must be corrected.
             Exempt the Special Compensation for Assistance with
            Activities of Daily Living (SCAADL) from income taxes, enhance
            marketing of SCAADL to the eligible population, and add an
            electronic application process to reduce the burden of
            completing SCAADL paperwork.
             Encourage DOD and the VA to develop a solution to
            continue in-vitro fertilization (IVF) coverage for veterans and
            military retirees facing service connected infertility.
             Require DOD and VA to regularly assess the unmet needs
            of caregivers and develop programs to address their evolving
            requirements.
                     keeping the trust of military families
        America's All-Volunteer Force is the most capable fighting force in
    the world. Over more than a decade of war, servicemembers and their
    families have heroically answered our Nation's call to serve. Their
    sacrifice--of life, limb, and family--is offered selflessly, trusting
    in the steadfastness of our government to provide for their readiness
    and the needs of their families.
        Many military families feel their sacrifices go unnoticed by
    civilian society, which is consumed with domestic concerns such as the
    economy and unemployment. Military families share those concerns. But
    they also feel the Nation is forgetting the price they alone have paid
    in 13 long years of war.
        Trust in government is essential to the long term viability of the
    All-Volunteer Force. That trust is reinforced through the
    predictability, efficiency and fairness of compensation and benefits.
    Since 2006, throughout the wars in Iraq and Afghanistan, the
    administration has proposed various benefit ``reforms,'' mostly in
    health care, which would have increased the financial burden of those
    who have served. The changes proposed in the fiscal year 2015 budget,
    coupled with the arbitrary reductions forced by sequestration,
    undermine the trust military families have in the government's
    commitment to support the All-Volunteer Force over the long term. This
    is a price the Nation cannot afford to pay.
        Moreover, the administration's proposals to cut pay increases,
    reduce housing allowances, eliminate commissary savings, and increase
    health care costs pose significant risk to the financial well-being of
    military families. Congress must resist these changes.
        The forthcoming report of the Military Compensation and Retirement
    Modernization Commission (MCRMC) should become a catalyst for a broad
    discussion of military compensation and benefits for future
    generations. Taxing those currently serving, and those who have served,
    in order to finance other priorities, is wrong headed and unacceptable
    to military families. We ask Congress to honor its commitment to
    military families and not to balance budget shortfalls on the backs of
    those who serve.

              ``The All-Volunteer Force is comprised of people who trust--
            they trust that we will treat them with dignity, respect, and
            due regard for their overall well-being. This trust is
            priceless. This trust puts in place the greatest weapons system
            we can provide the sailors of the U.S. Navy. That weapons
            system is called unit morale.''--Master Chief Petty Officer of
            the Navy (MCPON) Mike Stevens
      the administration budget proposal: a disaster for military family
                                  pocketbooks
        The administration's budget proposal has only added to the growing
    sense of frustration in the military community. Military families are
    financially savvy. They are doing the math and feel they are
    shouldering the burden for balancing the budget when they've shouldered
    the entire burden of the last 13 years of war.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Pay Raise
        For the second year in a row, the administration is proposing a pay
    increase of only 1 percent, below the level of private sector wage
    increases. The Employment Cost Index (ECI) was chosen as the standard
    for active duty pay raises in order to recruit and retain the quality
    of servicemembers needed to sustain the All-Volunteer Force. What's
    changed?
        We ask Congress to keep military pay commensurate with service and
    aligned with private sector wage increases.
    Basic Allowance for Housing
        Under the administration proposal, servicemembers will receive 95
    percent of the Basic Allowance for Housing (BAH) for their rank and
    location resulting in greater out of pocket housing costs. This
    ``slowed growth'' of the BAH will affect families whether they rent or
    own their own home. We appreciate the lower BAH will not affect a
    military family until their next duty assignment, but are concerned
    about the long-term impact on families' ability to find and pay for
    appropriate housing.
        BAH is paid at a with-dependent or without-dependent rate and
    varies based on the servicemember's rank and the rental and utility
    costs for housing within a reasonable commuting distance of where the
    servicemember is assigned.
        What will be the effects of lower BAH rates on privatized housing?
    Right now, the rent for privatized housing is tied to the BAH rate for
    each rank. Privatized housing has been a good deal for the government
    and for military families. If the amount paid to the contractors is
    reduced, what will that mean in terms of maintenance and renovation
    down the road? Would military families be responsible to pay the
    difference between rent and BAH?

              Please ask DOD how the reduction in Basic Allowance for
            Housing (BAH) payments will impact the contracts that have been
            negotiated with the privatized housing contractors. Will this
            result in fewer services, reduced maintenance, or families
            paying over and above their BAH for their privatized housing?
    Commissaries
        Our Association believes that the 30 percent savings available to
    military families who regularly shop at the commissary is an important
    part of compensation. Re-engineering the way the commissary does
    business by reducing the appropriation and thus raising prices wreaks
    havoc with a system that has been recognized as a model of efficiency.
    In 2011, the commissary saved customers more than $2.79 billion,\1\
    with a cost to DOD of only $1.34 billion. In 2013, the commissary
    continued to provide $2.08 billion in savings to patrons for every $1
    of appropriations.\2\ Why would the government want to cut a program
    that returns twice the value to customers that it costs DOD to provide?
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    DeCA--28--12.cfm
        \2\ http://www.commissaries.com/press--room/press--release/2014/
    DeCA--01--14.cfm
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        Military families appreciate that efficiencies must be found,
    especially to preserve readiness. However, the commissary is not just a
    quality of life program that can be downsized. It, too, is intended
    ``to support military readiness, recruitment, and retention'' (10
    U.S.C. Sec. 2481). While other readiness programs have had to grow in
    cost to support growing numbers of servicemembers and patrons, the
    government contribution for the commissary has stayed relatively level.
        DOD proposes commissaries take on a business model closer to that
    used by the exchanges. The exchanges operate on a for-profit model that
    allows them to set prices above cost, currently prohibited by law to
    the commissary. Furthermore, the exchanges and commissaries carry few
    of the same products and serve entirely different purposes. Profits
    from the exchange are used for operations and help fund Morale, Welfare
    and Recreation (MWR) programs. We wonder if military installations
    would be able to support two for-profit entities in their environs,
    especially if they carry duplicate products. We wonder what the effect
    will be on contributions to MWR when the commissary starts selling more
    of the same products as the exchange. If the purpose of the commissary
    system is to support servicemembers and families by selling groceries
    at cost plus a surcharge for construction and renovation, why is
    raising prices acceptable?
        Out of all of the cuts in the fiscal year 2015 budget proposal,
    many families tell us the reduction in commissary savings is what will
    prove most detrimental to their financial well-being. Even with the 10
    percent savings proposed by DOD, a family of four that shops regularly
    at the commissary would lose at least $200 per month.\3\
    ---------------------------------------------------------------------------
        \3\ Current estimations show that a military family of four
    shopping regularly/exclusively at the commissary saves $3,600/$4,500
    annually (http://www.commissaries.com/press--room/fast--facts.cfm).

              I think it's personally ridiculous that we're going to go
            after something that saves some . . . young lance corporal, . .
            . $4,500 a year for every time he walks in there--he has two
            kids and every time he . . . shops it's $240. Well, . . . he
            just put $80 worth of gas into his car and he doesn't even know
    ---------------------------------------------------------------------------
            it.--Sergeant Major of the Marine Corps Micheal Barrett

        Military families tell us they rely heavily on the commissary
    savings and appreciate the good deal they get. Some tell us they don't
    use the commissary often due to distance, unfamiliarity, or
    inconvenience and they may not realize the overall savings they can
    achieve. For servicemembers who qualify for the Supplemental Nutrition
    Assistance Program (SNAP) or the Women, Infants and Children (WIC)
    nutrition program, using the commissary allows families to stretch
    their benefit and provides a buffer to the many others who may be
    teetering on the financial edge. The many who use the commissary tell
    us they not only value this benefit, they do not know how they would
    provide for their families without it. Recently, a family member told
    us:
        Anyone who says the commissary is unnecessary has never tried
    raising a family on $1,400/month and has never been on recruiting duty.
    The commissary is a budget lifesaver.
        Senior leaders tell us they will not close commissary stores as
    part of this proposal. But when military families lose their savings at
    the commissary, they will stop shopping there. Fewer patrons will
    reduce the ability of the commissary system to leverage economies of
    scale--the revenues generated at the larger commissaries such as Fort
    Belvoir allow the family shopping in a smaller commissary in Guam or
    Dugway, UT, to realize the same savings. This will have tragic
    consequences for a system that currently works. Military families need
    savings; they don't need just another grocery store that is convenient
    to where they live!
        Protect commissary savings by continuing the annual appropriation
    to support the system at its current level. Commissaries are part of
    compensation and provide important savings for military families.
    Consolidated TRICARE Health Plan
        Our Association opposes shifting health care costs to active duty
    family members. We are particularly troubled the Consolidated TRICARE
    Health Plan proposal does not spread these costs evenly among all
    beneficiaries. Rather, the additional out of pocket expenses will be
    concentrated among those who cannot receive care at a Military
    Treatment Facility (MTF) and special needs families who require
    extensive specialty care. Even though the Consolidated TRICARE Health
    Plan proposal suggests the impact on families will be modest, we
    believe the proposed plan will have a significant negative impact on
    those populations mentioned above. We also firmly oppose any policy
    that will create a barrier to military families' access to behavioral
    health care. The Consolidated TRICARE Health Plan raises many
    unanswered questions and significant concerns that it will ultimately
    result in diminished access to care for military families.
        The Consolidated TRICARE Health Plan proposed in the fiscal year
    2015 budget would eliminate the current TRICARE managed care and fee-
    for-service options (Prime, Standard, and Extra) and replace them with
    a cost sharing structure for everyone including active duty family
    members.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Currently, the 79 percent of active duty family members enrolled in
    Prime \4\ pay no cost shares for treatment received at an MTF or from
    civilian providers in the TRICARE network, assuming the beneficiary
    follows TRICARE referral and authorization policies. Previous reform
    proposals have focused on retirees. The fiscal year 2015 proposed
    Consolidated TRICARE Health Plan reform will create unavoidable out of
    pocket health care costs for many active duty families, driven largely
    by their geographic location, health care condition, and ability to
    access care in an MTF.
    ---------------------------------------------------------------------------
        \4\ Evaluation of the TRICARE Program: Access, Cost, and Quality,
    Fiscal Year 2013 Report to Congress, Office of the Office of the
    Assistant Secretary of Defense (Health Affairs)
    ---------------------------------------------------------------------------
        The current TRICARE Prime referral and authorization process can be
    cumbersome and sometimes prevents timely access to specialty care.
    While we appreciate that the Consolidated TRICARE Health Plan proposal
    provides beneficiaries with open access to providers of specialty care,
    we are concerned cost will become the new barrier to accessing health
    care. Proposed cost shares are the lowest in MTFs, higher in the
    network, and highest out of network. While we understand this cost
    structure is designed to encourage use of military clinics and
    hospitals, thereby improving efficiency of the Defense Health Agency's
    (DHA) fixed facility cost structure, we believe it is important to
    understand that not every active duty family has access to a military
    hospital or clinic.
        Some servicemembers, for instance those in recruiting positions,
    are stationed far from the nearest MTF. Others are at installations
    where the MTF is at capacity and family members are routinely referred
    to the network for most or all of their care. Still other military
    families are at installations with limited direct care resources. For
    instance, when the Army reactivated the 10th Mountain Division at Fort
    Drum, Army leaders decided to take advantage of excess capacity in
    local hospitals rather than building an inpatient facility on post to
    serve 10th Mountain military personnel and their families. As a result,
    nearly 20,000 Fort Drum family members receive most of their specialty
    care from civilian providers because the post clinic only offers basic
    services. Because there is no hospital on post, Samaritan Hospital of
    nearby Watertown, NY, provides 90 percent of the post's inpatient care
    needs.\5\ With the Consolidated TRICARE proposal, Fort Drum families
    will face cost shares for much of their health care, not because they
    have chosen civilian providers, but because they do not have the option
    of seeking care at an MTF.
    ---------------------------------------------------------------------------
        \5\ Defense Communities 360: Community Network Provides Inpatient,
    Specialty Care for Fort Drum Personnel, January 29, 2014 http://
    www.defensecommunities.org/headlines/community-network-provides-
    inpatient-specialty-care-for-ft-drum-personnel/#
    ---------------------------------------------------------------------------
        DHA has characterized the proposed cost shares as modest. However,
    the relatively low ``per family'' dollar impact the DHA presents \6\ is
    an average assuming cost shares are spread evenly across the
    beneficiary population. In reality, costs shares will be borne
    disproportionately by families without MTF access, those who need
    specialty care, and those with special needs family members. We fear
    that, for these families, co-pays will become a barrier to accessing
    necessary medical care.
    ---------------------------------------------------------------------------
        \6\ U.S. Department of Defense fiscal year 2015 Budget Request
    Overview, March 2014, Office of the Under Secretary of Defense.
    ---------------------------------------------------------------------------
        While cost shares will disproportionately impact all families
    without MTF access, junior enlisted families will be particularly
    vulnerable. With their relatively lower incomes, cost shares ranging
    from $10 to $50 per visit (see chart above) will necessarily have a
    greater impact on their family budgets. Junior enlisted families
    without access to an MTF may not be able to absorb co-pays for every
    medical appointment. We are concerned they may elect to forego medical
    care to avoid the out of pocket costs.
        We are pleased DOD has listened to requests for protections of
    benefits for those who have been medically retired and surviving
    spouses. Keeping their health care fees at the same level as active
    duty family members reflects their extraordinary sacrifice and service.
        Due to their greater requirements for specialty care, the
    Consolidated TRICARE Health Plan will also have a pronounced effect on
    special needs families. Many special needs families require medical
    care that is not typically delivered at MTFs. While special needs
    families enrolled in TRICARE Prime can now seek specialty care in the
    network at no cost, the new proposal will result in cost shares for
    each network appointment. Given the number of specialty appointments
    many of these families require, we fully expect their expenses to reach
    the catastrophic cap: $1,500 for network care, $2,500 for combined
    network/out-of-network care. The $1,500 cap for network care is $500
    above the current cap for active duty military families, thus they will
    have to spend more for health care before DOD will pick up additional
    costs. This will have a significant impact on the purchasing power of
    special needs families.
        Our Association finds the behavioral health care co-pays in the
    Consolidated TRICARE Health Plan absolutely unacceptable. Network
    behavioral health appointments are treated the same as any other
    specialty care with co-pays of $20-$25 per visit. Because of the heavy
    demand by servicemembers in the MTF, more families have no choice but
    to seek care in the network. With co-pays of $20-$25 per appointment,
    we fear this will have a devastating effect on military families'
    ability and willingness to seek behavioral health care.
        Recognizing that 13 years of war has taken a toll on our community,
    TRICARE has made improvements in facilitating access to behavioral
    health care for military family members. Currently, TRICARE
    beneficiaries do not need referral or prior authorization for the first
    eight outpatient behavioral health care visits per fiscal year.\7\ This
    has allowed military family members to more easily access critical
    mental health resources. TRICARE Prime family members currently incur
    no costs for behavioral health care whether they access it at an MTF or
    in the network.
    ---------------------------------------------------------------------------
        \7\ TRICARE Behavioral Health Care Resources Fact Sheet
    ---------------------------------------------------------------------------
        Our Association believes it is imperative that behavioral health
    care, whether it is delivered in the Military Treatment Facility (MTF)
    or in the network, continues with no out of pocket costs for active
    duty military families.
        The Consolidated TRICARE Health Plan is designed to increase demand
    for MTF health care. We are concerned about how this increased demand
    will be managed. How will active duty families be prioritized within
    the MTF? Will they face longer waits for appointments? Will acute care
    be available when needed? We fear military families' access to care
    will be hampered by the increased demands placed on the MTFs.
        In addition to the concerns outlined above, our Association has
    many unanswered questions about the proposed TRICARE Consolidated
    Health Plan and its potential impact on military families, including:

              What modifications will be needed to the current TRICARE
            Managed Care Support Contracts to implement these changes? Will
            there be changes in requirements for the contractors to build
            and maintain networks and to keep accurate listings of which
            providers are in the network?
              What resources will remain in place for the management of
            complex illnesses or conditions where coordinated care is
            needed? Where will that responsibility reside, with the MTF or
            the TRICARE contractor?
              Will military retirees and their family members with Other
            Health Insurance (OHI) who wish to use TRICARE as a second
            payer be required to pay the same participation fee as those
            who want to keep TRICARE as their primary insurance?
              Will there be changes in how network maternity care will be
            reimbursed? Maternity is generally a bundled benefit with
            different cost sharing. For example, instead of paying a co-pay
            for each doctor's visit, the doctor accepts a flat amount,
            regardless of the number of visits and the mom pays a
            percentage of the fee. Also, maternity hospitalization has a
            different rate for mom and then for baby, generally less than
            traditional hospitalization. How will this be handled?
              What will be the cost to the Services/MTFs to create systems
            to process co-payments by retirees and their families?
              How much savings will the Consolidated TRICARE Health Plan
            provide to DOD?
    Transition Challenges During Downsizing
        Downsizing of the force has already begun as a result of
    sequestration. The fiscal year 2015 budget calls for a greater decrease
    especially in the Army. The effects of this downsizing are many. The
    servicemember and their family may feel the many years they spent
    facing multiple deployments are not appreciated. Morale will be low.
    Families are still dealing with the after-effects of war, problems with
    reintegration, with coming together again as a family, and the impact
    of the invisible signature wounds of these conflicts--post-traumatic
    stress and traumatic brain injury. We don't know what the long term
    implications are and what services will be needed by the servicemember
    and by the family as well.
        A national debate is needed now on how veterans' families will be
    supported once they leave the safety net of support they had while the
    servicemember was on active duty. What can the VA do to help families
    as well as veterans ease into civilian life and recover from multiple
    wartime deployments? What help will communities need to support these
    families?
    A Holistic Approach Is Needed
        We firmly believe the administration's fiscal year 2015 budget
    proposal did not consider the cumulative effects of a reduced pay raise
    combined with lower BAH payments, loss of commissary savings, and
    possible out-of-pocket health care costs on the purchasing power of
    servicemembers and their families. This budget proposal would reduce
    cash in a servicemember's pocket!
        We ask Congress to reject budget proposals that threaten military
    family financial well-being as a way to save.
        Let the Military Compensation and Retirement Modernization
    Commission (MCRMC) do its job in evaluating compensation, including
    health care, holistically.
              sequestration: an ongoing threat to family readiness
        The effects of sequestration have already resulted in cuts to
    benefits and programs that military families have come to rely on. Much
    of the funding for these programs is embedded in the Service Operations
    and Maintenance Accounts, which have been the hardest-hit by
    sequestration. Understanding what is affected by sequestration has been
    confusing for families. Our Association used social media to help
    military families tell truth from fiction and to keep them up to date
    on how sequestration would affect them. Our families used social media
    to voice their frustration about sequestration's effects on their
    servicemembers' ability to do their jobs and on the damage caused to
    the military community.\8\ Military families were impacted by
    sequestration with cuts to services and the threat of closure of DOD
    schools when civilian workers were furloughed and hiring was frozen.
    Sequestration limited the availability of health care appointments
    because furloughs of civilian medical staff resulted in reduced hours
    of operation at military hospitals and clinics. Military families
    reported longer wait times for appointments and delays in obtaining
    treatment. Some were told to go to the emergency room for acute care
    that would normally be handled at the MTF.
    ---------------------------------------------------------------------------
        \8\ http://www.militaryfamily.org/assets/pdf/Sequestration-Photo-
    Book--final--web.pdf
    ---------------------------------------------------------------------------
        When we speak to military families about sequestration, one of
    their major areas of concern is child care. Servicemembers who rely on
    installation child care centers worry centers will reduce their
    operating hours or turn more families away. Families who use the fee
    assistance program wonder if those funds will still be available. We
    have already heard from families that child care respite programs for
    families of deployed servicemembers are being phased out. Other
    locations have curtailed or eliminated hourly or drop-in care. Losing
    these services is a particular hardship to families overseas or in
    remote locations, who may have few child care alternatives.
        Impact Aid was one of the first casualties of sequestration cuts,
    because unlike other education programs, Impact Aid is current-year
    funded. Over the course of the past year, we heard reports from school
    districts facing significant funding cuts due to sequestration. For
    example, the Killeen Independent School District, which serves 18,000
    military children, faced the loss of more than $2.6 million in 2013.
    Our Association thanks Congress for restoring $65 million to the
    Department of Education Impact Aid program in the fiscal year 2014
    Consolidated Appropriations Act. This funding is critical to public
    school districts educating large numbers of military children. However,
    we continue to be concerned about the long-term consequences the
    spending caps imposed by the Budget Control Act (BCA) will have on
    school districts reliant on Impact Aid.
        While the Bipartisan Budget Act of 2013 provided some relief, we
    know that with future cuts required down the road, military families
    will continue to see cuts and threats to the programs and resources
    they require for readiness.
        We ask Congress to end sequestration and end the threat to the
    resources military families depend on for their readiness.
      keeping military families ready: what do military families require?
        We have addressed the immediate and long-term impacts of the
    proposed fiscal year 2015 budget on military families. But we ask you
    not to forget that military families depend on a variety of programs
    and resources that must be sustained and, in some cases, improved.
        The National Military Family Association believes our Nation's
    leaders should guarantee the readiness of our force by taking care of
    servicemembers and their families, serving in both Active and Reserve
    components, no matter where they live. We ask you to sustain support by
    providing: quality, accessible health care; behavioral health support;
    spouse career opportunities; good schools for military children;
    quality, affordable child care; a secure retirement; and unwavering
    support for those wounded, widowed, or orphaned. We challenge Congress
    and the administration to join us in seeking greater collaboration
    between government and community agencies to enhance support and enable
    military families to thrive and be ready to answer any call to duty,
    now and in the future.
        DOD created a blueprint for the framework of family readiness in
    DODI 1342.22, ``Military Family Readiness''. \9\ The DODI integrates
    policy for core family readiness services into a single source,
    including requirements for financial education and counseling,
    relocation assistance, emergency family assistance, spouse employment
    and requirements for delivery of services to the Reserve Components. It
    spells out the expectation that families be empowered to enhance their
    own readiness, but have the ability to access a trusted network of
    services regardless of branch of Service, active or Reserve status, or
    geographic location. It changes the traditional mindset of military
    family support, which focused on installation-based services and
    created the expectation that families should come to the support rather
    than having the support service connect with families where they are.
    The DODI emphasizes the importance of creating a family readiness
    system in which servicemembers, families, other government agencies,
    and private organizations collaborate to support troops and families.
    It focuses on three areas of readiness: mobilization and deployment
    readiness, mobility and financial readiness, and personal and family
    life readiness.
    ---------------------------------------------------------------------------
        \9\ http://www.dtic.mil/whs/directives/corres/pdf/134222p.pdf
    ---------------------------------------------------------------------------
        Our Association believes full implementation of DODI 1342.22 across
    all Services and components is essential for the readiness of both the
    current and future force. It sets the structure and expectations for
    family readiness and must be resourced appropriately.
    Deployment and Reintegration Support
        Military families have been living a revolving door existence since
    the beginning of the wars in Afghanistan and Iraq. They experienced
    repeated deployments, each the same with the strains of separation, but
    unique with the dynamic of their family at that moment in time. They
    had repeated reunions, honeymoons followed by the hard work of
    rebuilding their family. As they rebuild, they still worry about the
    future, the nagging thought that soon their family will be doing this
    again.
        Despite the drawdown in the Middle East, the mission of the U.S.
    military continues. Deployment patterns will change, but deployments
    will continue. A downsized force will still be busy doing more missions
    with fewer troops. A structure should be maintained to meet families'
    deployment related needs. DODI 1342.22 requires that programs be
    flexible enough to respond swiftly to the changes in needs of
    servicemembers and families. If deployment support programs are
    dissolved completely they will not easily be regenerated when needed
    again. We cannot lose the structure for proven programs such as pre-
    mobilization briefs that prepare families for deployment. During
    deployment, families rely on the programs and staff that support them,
    including respite care and the Army family readiness support assistants
    (FRSAs), Marine Corps family readiness officers (FROs), ombudsmen, and
    Military OneSource. This support network is essential for the families
    of many servicemembers who are sent apart from their units as
    individual augmentees. Readiness does not stop when a unit comes back
    from an operation or start up when a new operation is identified.
    Readiness is the underpinning that must be maintained and sustained at
    an appropriate level for the unit and their families.

              ``With guys doing multiple deployments, they're getting a
            tough 9 to 10 deployments over a 12-year period, the impact on
            families is going to be noticeable. Anything that can cut down
            and make the deployments less vigorous in terms of operation
            tempo is going to be a better thing''.--Rear Admiral George
            Worthington, USN (retired), retired Navy seal \10\
    ---------------------------------------------------------------------------
        \10\ Read more: http://www.washingtontimes.com/news/2014/mar/11/
    special-ops-forces-wearing-thin-from-high-demand/?utm--source=RSS--
    Feed&utm--medium=RSS

        Reintegration programs, along with deployment support, are key
    ingredients in the family's success. Our Association believes we need
    to focus on treating the whole family with programs offering
    readjustment information; education on identifying stress, substance
    abuse, suicide, and traumatic brain injury; and encouragement to seek
    assistance when having financial, relationship, legal, and occupational
    difficulties. DODI 1342.22 calls for this support to promote positive
    adjustment to deployment, family separation, and family reunion.
        Successful reintegration programs will require attention over the
    long term, as well as a strong partnership at all levels between the
    various mental health arms of DOD, VA, and State agencies. DOD and VA
    need to provide family and individual counseling to address these
    unique issues. Opportunities for the entire family and for the couple
    to reconnect and bond must also be provided. Our Association has
    recognized this need and established family retreats in national parks
    under our Operation Purple program, promoting family reintegration
    following deployment.
        During the past 13 years of war, our Nation has relied on the
    services of the National Guard and Reserve more than ever before. Our
    Association appreciates the great strides made by both Congress and the
    Services to help support our Reserve component families. We believe
    sustaining effective support programs for our ``Citizen Soldiers'' and
    their families is essential at every stage of deployment. DOD agrees by
    integrating family readiness for the Reserve component into DODI
    1342.22. We ask Congress to provide funding for preventive and follow-
    up counseling and behavioral health services for mobilized Reserve
    component members and their families.
        We have been in touch with the staff of the Yellow Ribbon
    Reintegration Program (YRRP) and are pleased they have developed a way
    ahead for the Yellow Ribbon program as a best practice for continued
    Reserve Component family readiness. The Reserve components will
    continue, for the foreseeable future, to execute operational missions
    globally in response to our Nation's security needs. As the operating
    environment evolves, YRRP will be there to provide vital information
    and resources to servicemembers and families throughout and beyond
    deployment periods. It will remain an enduring component of unit and
    individual readiness and reintegration challenges. More about the
    program and the resources can be found at www.yellowribbon.mil.
    Additionally, the YRRP has been working with Office of Military
    Community and Family Policy (MC&FP) on accreditation standards as MC&FP
    works to accredit Family Programs in the Army Reserve and National
    Guard.
        Provide oversight to ensure the Defense Department and the
    individual Services are supporting families of all components by
    meeting the standards for deployment support, reintegration, financial
    readiness, and family health in DODI 1342.22. Fund appropriately at all
    levels. Special attention needs to be paid to the flexibility for surge
    capabilities.
        Continue funding the Yellow Ribbon Reintegration Program (YRRP) and
    stress the need for greater coordination of resources supporting
    Reserve Component families.
    Support for Transitioning Families
        Transitioning due to downsizing affects the whole family. In
    addition to the transition assistance program available to
    servicemembers, resources need to be identified that is pertinent to
    the family members that would also be transitioning. Training on issues
    like health care coverage for dependents including information on the
    Affordable Care Act, how to find community resources to replace DOD
    programs and general inclusion of the military spouses role in the long
    term care of the family as a whole aren't really covered in the
    transition classes.
        We are developing a transition program specific to spouses. We will
    highlight the programs available through the DOD and develop a
    framework of best practices for family transition. Military spouses are
    a critical component in familial stability, often leading issues in
    health care and finances in the home. Their role in transition is
    equally critical to the success of the entire family in the move to
    civilian life.
        Expand the opportunity for spouses to attend transition classes
    with servicemembers. Through other military information portals tailor
    other information to address family transition issues.
        We encourage Congress to join with DOD to help civilian communities
    realize their role in supporting servicemembers and families is
    ongoing, even as servicemembers transition to veteran status.
    Military Health Care
        Affordable and timely access to health care is important to all
    families, but it is vital for military families. Repeated deployments,
    caring for the wounded, ill, and injured, the stress and uncertainty of
    military life, and the ability to maintain family readiness, demand
    quality, and readily available health care. A robust and reliable
    health care benefit allows families to focus on managing the many
    challenges associated with military life versus worrying about how they
    are going to access and pay for essential health care. Any changes to
    the military health care benefit must recognize the unique conditions
    of service and the extraordinary sacrifices demanded of servicemembers
    and their families.
        The National Military Family Association strongly asserts that any
    discussion of military health care, especially its costs, must make a
    distinction between the health care readiness needs of servicemembers
    versus the earned health care benefit provided to family members,
    retirees, and survivors. Ensuring the physical and mental health of
    servicemembers so they can perform their mission is a readiness cost
    and not part of the compensation package.
        Likewise, the health care costs associated with wartime operations
    or the care of wounded, ill, and injured servicemembers should not be
    included as part of the cost of providing a health care benefit to the
    children, spouses, and surviving family members of servicemembers and
    retirees. Our Association believes DOD, in its statements about the
    rising costs of the military health care benefit, has not effectively
    differentiated health care readiness costs from the costs of providing
    the earned health care benefit. This failure, we believe, puts both the
    readiness function and access to care for family members and retirees
    at risk.
        The military health care system--because of its dual readiness and
    benefit provision missions--does not function like civilian plans. The
    TRICARE benefit includes both direct care provided by MTFs as well as
    coverage that enables military families to access health care within
    the civilian community.
        Access to care is also impacted by TRICARE's reimbursement
    policies. We believe TRICARE's reimbursement policies should be
    comparable to commercial and other government plans. They should align
    with current standards of medical care. Furthermore, they should be
    flexible enough to accommodate changes in medical technologies and
    treatment protocols.
        Ensure families of all seven Uniformed Services have timely access
    to high quality, affordable health care and a robust TRICARE benefit
    including preventive health care services.
        In the past year, military families have faced several
    reimbursement policy decisions that made TRICARE coverage inferior to
    commercial and other government plans, ignored medical standards of
    care, and created hardship for beneficiaries. These policy decisions
    include:

             Changes to the referral and authorization requirements
            for Applied Behavior Analysis (ABA) created significant
            barriers to military families accessing this therapy. These
            changes were later reversed for the TRICARE Basic and ECHO
            Demonstration programs and were applied only to the ABA Pilot.
             Compound prescription coverage changes. In June,
            TRICARE announced it would cease coverage of all compound
            pharmaceuticals containing non-Federal Drug Administration
            (FDA) approved bulk chemicals or ingredients. This policy
            change would have created difficulties for many beneficiaries,
            such as children, who rely on compounding for safe and
            effective prescriptions. TRICARE eventually reversed this
            decision.
             Laboratory Developed Tests coverage denials. In
            January 2013, TRICARE ceased coverage of over 100 diagnostic
            genetic tests without notice to health care providers or
            beneficiaries. These tests are covered by Medicare and Medicaid
            as well as commercial health plans. They represent the standard
            of care and include a common prenatal screening for cystic
            fibrosis that the American Congress of Obstetricians and
            Gynecologists has recommended for over 10 years. Denying access
            to these tests could lead to substandard health care for
            military families. We have been working with DHA and
            congressional offices for over a year to get this policy
            reversed. In the meantime, we have heard from numerous families
            faced with paying for lab tests out of pocket or foregoing
            tests ordered by their physicians.

        Reimbursement denials for diagnostic genetic tests have significant
    implications for military families. An active duty Army family
    contacted our Association regarding their daughter whose eye was
    removed due to retinoblastoma, a cancer that can spread to the brain.
    Her physician recommended genetic testing to determine the likelihood
    that the cancer would appear in her other eye. Without the genetic
    test, the child would require close monitoring until age 6 including
    eye exams under anesthesia as well as sedated magnetic resonance
    imaging (MRIs) every 4-6 weeks. After getting the genetic test results,
    her treatment plan was modified to greatly reduce the number of eye
    exams and MRIs. Because TRICARE refused to cover the diagnostic genetic
    test, this Army family had to find a third party to pay for it. Without
    the test results, this family would have faced greater uncertainty
    about their daughter's condition, while the child would have been
    subjected to many more sedated eye exams and MRIs--at a significant
    cost to the government. We appreciate the understanding of the
    egregiousness of this policy expressed by members of the Senate in
    their recent letter to Assistant Secretary of Defense for Health
    Affairs Dr. Jonathan Woodson.
        Arbitrary reimbursement policy changes create confusion and
    uncertainty among military families. We request that DOD ensure future
    policy changes are thoroughly analyzed before being implemented. The
    impact on beneficiary access to the medical standard of care should be
    a top consideration. Should reimbursement policy changes be made, we
    request that TRICARE inform providers and beneficiaries with sufficient
    lead time to allow alternative treatment plans to be developed.
        TRICARE's reimbursement policies should be comparable to commercial
    and other government plans.
        DOD should ensure future TRICARE policy changes are thoroughly
    analyzed before being implemented with the impact on beneficiary access
    to the medical standard of care as a top consideration.
        We remain especially concerned about access to care for National
    Guard and Reserve families. We continue to believe that paying a
    stipend to a mobilized National Guard or Reserve member for their
    family's coverage under their employer-sponsored insurance plan may
    work out better for many families in areas where the TRICARE network
    may not be robust. This option will remain viable as the current
    pattern of mobilizations declines with the end of conflicts. DOD
    leaders say our military will continue to rely on National Guard and
    Reserve members to perform the changing missions of the future. A
    different set of health care options may be needed to accommodate the
    needs of these mission-critical servicemembers, their families, and the
    military.

              Pay a stipend to a mobilized National Guard or Reserve member
            for their family's coverage under their employer-sponsored
            insurance plan.

        TRICARE's policies often present challenges in accessing the
    appropriate pediatric care. Children's health care needs differ from
    those of adults. Because TRICARE is modeled on Medicare, its policies
    are sometimes ill-suited for pediatric care. TRICARE's policies should
    address the unique needs of children when defining medical necessity to
    ensure military children receive comprehensive and quality health care
    consistent with pediatric best practices. It is imperative the quality
    of health care provided to our military children is commensurate with
    the sacrifices made by our servicemembers and their families.
        We appreciate the inclusion in the National Defense Authorization
    Act (NDAA) for Fiscal Year 2013 for a report to comprehensively review
    TRICARE health care policies and practices to make recommendations that
    specifically account for children's health care and pediatric care
    settings. Encourage DOD to release the results of the review as soon as
    possible.
        TRICARE's policies should address the unique needs of children when
    defining medical necessity to ensure military children receive
    comprehensive and quality health care consistent with pediatric best
    practices.
    Behavioral Health
        Research validates the high level of stress and mental strain
    military families are experiencing.

             A recent study published by the Journal of Adolescent
            Health indicates children with a parent or sibling deployed in
            the military during the last decade of war are more likely than
            their peers to experience depression and suicidal thoughts,
            particularly if the servicemember deployed more than once.\11\
            The same study also found multiple deployments by a parent or
            sibling were associated with an increased likelihood of drug
            and alcohol use.\12\
    ---------------------------------------------------------------------------
        \11\ Tamika D. Gilreath, et al., ``Well-Being and Suicidal Ideation
    of Secondary School Students From Military Families'', Journal of
    Adolescent Health, November 18, 2013
        \12\ Tamika D. Gilreath, et al., ``Substance Use Among Military-
    Connected Youth'', American Journal of Preventative Medicine, January
    8, 2013
    ---------------------------------------------------------------------------
             Another study, Wartime Military Deployment and
            Increased Pediatric Mental and Behavioral Health Complaints,
            found an 11 percent increase in outpatient behavioral health
            visits for military children from the ages of 3-8 during 2006-
            2007. Researchers found an 18 percent increase in pediatric
            behavioral health visits and a 19 percent increase in stress
            disorders when a parent was deployed.\13\
    ---------------------------------------------------------------------------
        \13\ Gregory H. Gorman, Matilda Eide, and Elizabeth Hisle-
    Gorman,``Wartime Military Deployment and Increased Pediatric Mental and
    Behavioral Health Complaints'', Pediatrics: The Official Journal of the
    American Academy of Pediatrics, November 8, 2010.
    ---------------------------------------------------------------------------
             Additional research found an increase in mental health
            care use by spouses during their servicemembers' deployments. A
            study of TRICARE claims data from 2003-2006 published by the
            New England Journal of Medicine showed an increase in mental
            health diagnoses among Army spouses, especially for those whose
            servicemembers had deployed for more than 1 year.\14\
    ---------------------------------------------------------------------------
        \14\ Alyssa J. Mansfield, et al., ``Deployment and the Use of
    Mental Health Services among U.S. Army Wives,'' The New England Journal
    of Medicine, January 14, 2010.
    ---------------------------------------------------------------------------
             In the research they conducted for our Association,
            RAND found military children reported higher anxiety signs and
            symptoms than their civilian counterparts. Our research also
            found the mental health of the caregiver directly affects the
            overall well-being of the children.\15\ Therefore, we need to
            treat family members as a unit as well as individuals.
    ---------------------------------------------------------------------------
        \15\ Anita Chandra, et al., RAND Center for Military Health Policy
    Research, Views from the Homefront: The Experiences of Youth and
    Spouses from Military Families, 2011

        The body of research focusing on the increased levels of anxiety
    and utilization of mental health services causes our Association
    concern about the overall shortage of mental health providers in
    TRICARE's direct and purchased care network. While TRICARE contractors
    have expanded their behavioral health provider networks to help meet
    demand, military families in some areas continue to report provider
    shortages, especially for psychiatric care for children and teens. We
    believe one of the consequences of almost 13 years of war is demand for
    mental health services that continues to outstrip supply. More must be
    done to persuade mental health care providers to participate and remain
    in the TRICARE network, even if that means raising reimbursement rates.
        It is also critical that TRICARE keeps provider lists up-to-date.
    We hear from families about the number of times they contact network
    providers using the TRICARE provider list only to find the providers
    cannot meet access standards, are no longer taking TRICARE, or are not
    taking new TRICARE patients. Behavioral health provider lists must be
    up-to-date and robust enough to handle real time demands by military
    families. Inaccurate provider lists present a barrier to accessing
    behavioral health care for military families.
        Families tell us they appreciate the access to non-medical
    counseling through Military OneSource and the Military Family Life
    Counselors (MFLC). DOD implemented these resources to help
    servicemembers and their families access counselors where they work and
    where they live with a certain degree of anonymity. MFLCs have also
    been used effectively in training local educators on techniques to help
    their military students cope with deployment and in supporting National
    Guard and Reserve Yellow Ribbon events. We believe the need for
    behavioral health care will continue to grow over the next several
    years and we encourage DOD to continue to seek innovative solutions to
    providing care for military families.
        It is a moral imperative to provide military servicemembers and
    their families with the help they need after years of enduring repeated
    combat deployments and to meet the challenges of the future.
        Ensure military families' access to the medical and non-medical
    counseling they need to recover from the stress of long years of war.
    Access to Health Care for Military Special Needs Families
        Caring for a special needs family member can be difficult and
    draining for any family. However, the impact for military families is
    magnified by the unique challenges associated with military service.
    Frequent geographic relocations are a fact of life for military
    families. A geographic relocation will, by definition, disrupt the
    continuity of care that is so important in managing complex medical
    conditions. After every move, special needs military families must
    begin a lengthy cycle of referrals, authorizations and waitlists at
    each new duty station, resulting in repeated gaps in care. A nationwide
    shortage in pediatric specialists means even when families have
    successfully navigated the authorization and referral process at their
    new location, they may face a delay of weeks or even months before
    treatment can restart. Military families fear these repeated treatment
    delays have a cumulative and permanent negative effect on their special
    needs family members.
        It is frustrating for military parents to know these treatment
    delays could be mitigated if the process for accessing specialty care
    were more flexible and streamlined to address the unique aspects of
    military life. Unfortunately, TRICARE's rigid referral and
    authorization process too often hinders the transition process for
    military families rather than facilitating it. In addition, providers
    often tell us working with TRICARE is overly complex. Many choose not
    to participate in the TRICARE network because it is too difficult to
    navigate and administer. The resulting shortage of TRICARE network
    providers further impedes families' access to specialty care. While the
    fiscal year 2015 budget proposal appears to fix this problem by getting
    rid of referrals and authorizations, it will force these families to
    pay more out of pocket.
        TRICARE should make the process for accessing specialty care more
    flexible and streamlined to address the unique aspects of military life
    without forcing active duty families to pay more out of pocket.
        For special needs military families, frequent relocation presents
    another obstacle: the inability to qualify for services through
    Medicaid waivers. Caring for children with complex medical needs can be
    incredibly expensive. Most families in this situation ultimately
    receive some form of public assistance, typically through State
    Medicaid waivers. State Medicaid programs provide assistance not
    covered by TRICARE: incontinence supplies, respite care, employment
    support, housing, and more flexible medical coverage. Because the
    demand for these services far outstrips the supply, there is a lengthy
    waiting list to receive assistance in most states. For that reason,
    these services are often out of reach for a military family who must
    relocate every 2 to 3 years. Even if a military family places their
    special needs child on a Medicaid waiver waiting list, they must start
    again at the bottom of the waiting list when they move to a new state.
    The Defense State Liaison Office (DSLO) has recognized military
    families' inability to access care through Medicaid waivers as one of
    its high priority issues and is working with State legislatures to
    address this problem. However, little progress has been made in
    resolving this disparity.
        TRICARE's ECHO program was designed in part to address this
    imbalance, by allowing families to access non-medical services not
    covered under TRICARE. According to TRICARE's website, benefits covered
    under ECHO include ``training, rehabilitation, special education,
    assistive technology devices, institutional care in private nonprofit,
    public and State institutions/facilities and, if appropriate,
    transportation to and from such institutions/facilities, home health
    care and respite care for the primary caregiver of the ECHO-registered
    beneficiary.'' However, in practice military families find it difficult
    to obtain services through the program.
        This reality was reflected in TRICARE's May 30, 2013 report, The
    Department of Defense Report to Congress on Participation in the ECHO,
    detailing military families' usage of the ECHO benefit. They reported
    that, in 2012, 99 percent of funds expended through the ECHO program
    were spent on Applied Behavioral Analysis (ABA) therapy and ECHO Home
    Health Care (EHHC). Although these services are important and popular
    with special needs families, it is impossible to see this statistic and
    not wonder why families are not accessing the long list of other
    services ostensibly available to them under ECHO.
        When families do manage to navigate the process of applying for
    benefits through ECHO, they often find that it does not pay for the
    products and services they actually need. For example, many families
    need larger than normal diapers for their disabled children. ECHO deems
    this a convenience item and will not pay for it, although incontinence
    supplies are regularly paid for by state Medicaid programs.
        Another service much in demand by families is respite care. For
    families with special needs children, the time away afforded by respite
    care is vital. Access to quality respite care allows families to run
    errands, spend time with other children, and simply recharge. Studies
    even show that parents of special needs children have healthier
    marriages when they are able to access regular respite care. Thus,
    access to respite care can be seen as an important element in military
    family readiness. Respite care is ostensibly available through the ECHO
    program, but TRICARE policies limit its utility. ECHO sets strict
    requirements for respite care providers, making it difficult for
    families to identify eligible providers. In addition, TRICARE requires
    that families use another service through ECHO in any month that
    respite care is also provided. In its May, 2013 report to Congress,
    TRICARE describes this rule as a ``reasonable demand management tool.''
        Congress has given DOD much more discretion in its coverage of ECHO
    benefits than it has concerning medical benefits provided under the
    Basic Program. Thus, TRICARE has the authority to make changes that
    would enhance the ECHO program's utility to military families. Easing
    the restrictions on respite care, for example, would do much to enhance
    special needs military families' readiness and quality of life.
        Our Association has suggested a DOD pilot study to identify what
    products and services special needs families need to enhance their
    quality of life. We recommend that families in the pilot receive $3,000
    annually above what is provided under ECHO to purchase self-selected
    items not currently covered, such as cooling vests, cranial helmets,
    diapers and nutritional supplements. DOD would be required to authorize
    each type of purchase to verify that it was appropriate. The program
    would be similar to the ``money follows the patient'' model already
    adopted by several state Medicaid programs and would identify gaps in
    coverage while providing a better picture of what military special
    needs families really need.
        TRICARE should enhance the ECHO program's utility to military
    families by ensuring it covers the products and services families need.
        The transition out of the military and into civilian life is
    difficult for many families but especially so for special needs
    families, who immediately lose access to ECHO benefits. Families may
    still face long waits before being eligible for care through Medicaid,
    which leads either to gaps in treatment or financial hardship for a
    family trying to pay for needed care. As more servicemembers and
    families transition out of the military, this problem will become more
    widespread. To ease the hardship for families in this situation, we
    recommend ECHO eligibility be extended for 1 year following separation
    to provide more time for families to obtain services in their
    communities or through employer-sponsored insurance.
        We ask Congress to extend eligibility for the ECHO for 1 year
    following separation to provide more time for families to obtain
    services in their communities or through employer-sponsored insurance.
    Additional Support for Special Needs Families
        The main vehicle through which DOD provides support to special
    needs military families is the Exceptional Family Member Program
    (EFMP). The EFMP is intended to perform three interrelated functions:
    identify and enroll eligible family members; coordinate the assignment
    process to ensure special needs families are not sent to locations that
    lack adequate resources; and provide families with information about
    and referral to local resources.
        To be successful, the EFMP requires smooth communication and
    coordination. The offices responsible for assigning families to new
    duty locations must work with installation medical personnel and
    service providers to ensure that families are assigned appropriately.
    EFMP personnel at sending and receiving installations must coordinate
    to make sure that families receive information about programs available
    at the new installation to avoid interruption in services and ensure a
    smooth transition. Too often, however, this communication does not
    occur. In the worst case scenario, families may find themselves
    assigned to locations without appropriate medical or educational
    services for their special needs family member. Other families tell us
    about delays in receiving services at their new installations because
    of a lack of communication between EFMP Coordinators at the old and new
    locations.
        This problem is exacerbated when families move to an installation
    operated by a different Service. Currently communication and
    coordination among the different Services' medical, personnel, and
    family support components is extremely limited. This lack of
    coordination adds to the stress of families who are already coping with
    the difficulty of moving with a special needs family member. Families
    need the reassurance that they will have continuity of care and a warm
    hand-off as they move from installation to installation.
        The Office of Community Support for Military Families with Special
    Needs (OSN) was created in the NDAA for Fiscal Year 2010 to enhance and
    improve DOD support for military families with special needs, whether
    medical or educational. A 2012 GAO report, Better Oversight Needed to
    Improve Services for Children with Special Needs, (GAO-12-680,
    September 10, 2012) noted there are no Department-wide benchmarks to
    set standards for the Services' EFM programs. As a result, DOD has been
    unable to assess the effectiveness of the branches' EFM programs and
    ensure that improvements are made when needed. In addition, although
    OSN was created to enhance and monitor the military branches' support
    for families with special needs, it has no authority to compel the
    branches to comply with DOD or Service-level program requirements and
    it has no direct means by which to hold them accountable if they fail
    to do so. We appreciate that OSN has been working closely with the
    Services' EFMP programs to standardize services and improve
    communications. However, much work remains to be done in this area.
        We ask DOD to improve coordination and communication within and
    among Services' EFMP and to set consistent standards for support of
    special needs military families.
                              financial readiness
        While military families are shown to have better financial literacy
    rates than their civilian counterparts, their military commitments
    often make it difficult to grow their investments over the long
    term.\16\ Frequent moves and deployments can be a barrier to home
    ownership or force families in and out of lease agreements. Spouses
    have reduced earning power, yet many military families are paying on
    one or more student loans. Frequent moves make spouses ineligible for
    public service loan forgiveness programs.
    ---------------------------------------------------------------------------
        \16\ http://www.usfinancialcapability.org/downloads/NFCS--2012--
    Report--Military--Findings.pdf
    ---------------------------------------------------------------------------
        Some elements of the military compensation package are meant to
    take the sting out of those losses. However, as sequestration continues
    and budgets are cut, military families will face more and more
    disadvantages compared to their civilian counterparts. We ask Congress
    keep in mind the fiscal restraints imposed on military families when
    evaluating changes to the military compensation package.
    Support for Spouse Education and Employment
        Every time a permanent change of station (PCS) occurs, a working
    military spouse, or one who would like to be employed, has to start
    from scratch. Lack of longevity in any one location or job position
    negatively affects career trajectory and earning power. Frequent moves
    disrupt educational goals. State licensing requirements and industry
    tenure restrict employment opportunities for military spouses. Military
    spouse unemployment or underemployment affects the total earning power
    of the military family. The First Lady and Dr. Biden initiated Joining
    Forces in 2011 to help address these issues, and we have seen progress,
    but military spouses continue to face significantly lower earnings,
    higher unemployment and underemployment than their civilian
    counterparts.\17\ Syracuse University Institute for Veterans and
    Military Families released a Military Spouse Employment Survey with
    Military Officers Association of America that showed 90 percent of
    active duty spouses responding are underemployed meaning they possess
    more formal education/experience than needed at their current or most
    recent position.\18\ The results are evidence of ongoing career
    barriers that military spouses face during their servicemembers
    commitment.
    ---------------------------------------------------------------------------
        \17\ Http://vets.syr.edu//reserach-highlights/milspouse-survey
        \18\ Http://vets.syr.edu//reserach-highlights/milspouse-survey
    ---------------------------------------------------------------------------
        DOD has realized spouse education and employment opportunities are
    linked. DOD provides the Spouse Education & Career Opportunities (SECO)
    program, which oversees the Military Spouse Employment Partnership
    (MSEP) and the My Career Advancement Account (MyCAA) Scholarship.
    Recently, SECO launched the My Individualized Career Plan (MyICP) tool
    to help military spouses build a roadmap specific to their goals and
    plans, educational and professional. These programs are vital to
    bridging the unemployment and wage gap (26 percent and 25 percent,
    respectively) military spouses face as a result of the requirements and
    pressures of military family life. These programs provide financial
    assistance in education and training for portable careers, career
    planning and job search assistance, networking assistance and advocacy
    at no cost to the military spouse.

              We ask Congress to continue funding DOD's Spouse Education &
            Career Opportunities programs.

        Military spouse preferences and non-competitive hiring authority
    for military spouses have been expanded over the years, but
    implementation is onerous and complex. The process for using these
    options must be simplified for the job seeker and non-discretionary for
    the hiring agency in order to serve the purpose intended; aiding
    military spouses seeking Federal employment. The Office of Personnel
    Management (OPM) is considering revising its rules to make it easier to
    achieve career tenure in the Federal Government by allowing employees
    to earn time toward tenure in aggregate rather than in continuity. We
    are pleased frequent moves are recognized as a barrier to this career
    goal for military spouses, but are concerned more bureaucratic barriers
    will exist that make Federal career employment an impossibility for
    most spouses.
        We ask Congress to make military spouse preferences and hiring
    authorities non-discretionary.
        Since 2004, our Association has been fortunate to sponsor our
    Joanne Holbrook Patton Military Spouse Scholarship Program. Of
    particular interest, of nearly 7,000 applicants from our 2013
    scholarship applicant pool, more than 50 percent were not eligible for
    the MyCAA program because of rank or service ineligibility. We ask
    Congress to better address the educational needs of spouses of all
    servicemembers, including those in the Coast Guard and the Commissioned
    Corps of NOAA and the U.S. Public Health Service.
        We ask Congress to expand outreach and eligibility for MyCAA to
    spouses of all of the Uniformed Services to facilitate better
    utilization and access.
    Quality, Affordable Child Care
        Media reports about military compensation often refer to subsidized
    child care as one of many ``benefits'' provided to military families.
    To our Association, this view is a mischaracterization of the role and
    importance of child care to the military and military families. Access
    to quality, affordable child care is not just a ``nice-to-have'' part
    of a benefit package. Rather, it is central to servicemember and family
    readiness.
        More than 40 percent of servicemembers have children, and the
    largest cohort of military children is under age 5.\19\ Servicemembers
    face the same challenges as all working parents. If child care
    arrangements fall through or the babysitter gets sick, a parent may
    find himself forced to miss work. When the parent who must miss work is
    in the military, his or her absence may threaten the readiness of an
    entire unit.
    ---------------------------------------------------------------------------
        \19\ 2012 Demographics: Profile of the Military Community
    ---------------------------------------------------------------------------
        Quality child care is also essential to military family financial
    stability. Like most families, many military families rely on having
    two paychecks in order to make ends meet. However, military spouses
    face many barriers to employment, including distance from extended
    family who might otherwise be available to assist with child care.
    Quality, accessible child care is inextricably linked to spouse
    employment and thus to military family financial readiness.
        We appreciate that Congress and DOD have recognized the importance
    of child care to military families and have taken steps to make quality
    child care both more available and more affordable. Thanks to those
    efforts, military families have access to a wide range of child care
    options to meet their needs, from on-installation Child Development
    Centers (CDCs) to in-home care providers.
        While installation CDCs are the preferred option for many families,
    they are not always a viable choice, either because of long waiting
    lists or because the family lives far from the installation. However,
    particularly in high cost areas, quality child care is often
    unaffordable for military families. Recognizing this need, DOD
    established a program to provide fee assistance to families without
    access to on installation child care centers. This program, operated
    through a partnership with Child Care Aware, has proven to be popular
    with families and an effective means of ensuring that families can
    afford quality care. Because this partnership has been so successful,
    we are concerned about the Army's plan to begin managing its fee
    assistance program itself in 2014. We intend to watch closely to ensure
    the transition is seamless and Army families can continue to benefit
    from the fee assistance program.
        Ensure adequate funding for military child care programs, including
    child care fee assistance programs.
                         support for military children
        The military lifestyle includes inevitable challenges for children,
    who must cope with repeated moves and frequent separation from their
    servicemember parent. Parents worry about the effect of these
    disruptions on their children's emotional well-being and academic
    achievement. Ensuring that military children receive a quality
    education as well as emotional support is both a moral imperative for
    our Nation and essential to military family retention and readiness.
    Education of Military Children
        The task of educating military-connected children falls largely to
    the Nation's local public schools, where more than three-quarters of
    school-aged military children are enrolled.
        Although most communities welcome military children and families,
    the fact remains that an influx of children connected to a military
    installation presents increased costs to a school district. At the same
    time, the presence of a military installation or other Federal property
    in a school district reduces its tax base and thus its available
    funding level. Most school districts receive the majority of their
    operating funds through local property taxes. Since Federal land--
    including military installations--is not subject to local property tax,
    school districts with large numbers of military connected children
    often have few sources of revenue.
        Department of Education (DoEd) Impact Aid was established in 1950
    to address this imbalance and reduce the burden on local communities
    and taxpayers. It recognizes the Federal Government has a
    responsibility to help communities educate children who are only there
    because of their connection to a military installation or other Federal
    activity. federally-impacted school districts rely on these funds to
    meet payroll, operate school buses, and purchase textbooks. All
    children and families in a district--not just military families--
    benefit from Impact Aid funding.
        We also note for the third year in a row the administration has
    proposed the elimination of the Impact Aid category covering Federal
    properties. Eliminating this funding would affect more than 50
    military-impacted school districts in 19 States. We thank Congress for
    acting to restore these section 8002 funds last year and ask that you
    do the same this year.
        While we understand this committee does not have jurisdiction over
    this program, we ask you to work with your colleagues to ensure
    appropriate and timely funding of Impact Aid through DoEd and restore
    funds to the Impact Aid Federal properties program as essential to
    meeting the needs of military families.
        We strongly urge Congress to ensure appropriate and timely funding
    of Impact Aid through the Department of Education and restore funds to
    the Impact Aid Federal properties program.
        We appreciate the inclusion of $40 million for DOD Impact Aid in
    the NDAA for Fiscal Year 2014 to support public schools with large
    numbers of military children, as well as $5 million for districts
    educating military children with disabilities. This funding is vitally
    important to help districts provide the military children they serve
    with a high quality education. We also thank Congress for appropriating
    funds to renovate and expand public schools on military installations,
    many of which are overcrowded and in disrepair.
        Continue to authorize Department of Defense Impact Aid for schools
    educating large numbers of military children.
        In 2007, the John Warner National Defense Authorization Act
    established a grant program to directly support public schools
    educating large numbers of military-connected children. These grants,
    which are managed by the Department of Defense Education Activity
    (DODEA), support programs that enhance student achievement in science,
    technology, engineering, and mathematics. Funds have also been directed
    toward programs that support military children as they transition to
    new schools or cope with the stress of a parent's deployment. Grant
    funds have given military children in more than 50 public schools
    greater access to and success in Advanced Placement (AP) courses in
    math, science, and English. Since 2009, this innovative partnership
    program has directly supported 320,000 military students at 1,500
    public schools. We were disappointed funding for this valuable program
    was not included in the NDAA for Fiscal Year 2014 and encourage
    Congress to restore this program in fiscal year 2015.

              Restore funding for the DODEA Grant Program.
    Department of Defense Schools
        More than 80,000 military children in grades pre-K through 12 are
    enrolled in schools operated by the DODEA. The agency operates schools
    both at overseas locations and at 15 installations in the United
    States. DODEA is vital in helping to ensure military children can
    receive a quality education regardless of where their parents are
    stationed. Thus, our Association was concerned to see the
    administration's budget proposal included a cut to funding for DODEA.
    How can DODEA absorb these cuts without affecting the classroom
    experience of the military children they serve? We believe strongly the
    education of military children should not be compromised due to budget
    constraints. We ask Congress to restore DODEA funding to ensure
    military children receive the best possible education.
        In late 2013, DOD announced the launch of the CONUS Education
    Options Assessment (CEOA), which will analyze the operations of the
    Domestic Dependent Elementary and Secondary Schools (DDESS) at
    installations in the United States. The purpose of this study is to
    assess education options that effectively balance cost and quality
    considerations. Possible recommendations include maintaining the status
    quo, turning the schools over to local school districts, and
    establishing charter schools, among other options. We welcome the
    opportunity to learn more about DDESS schools and are pleased DOD is
    including the views of parents, students, administrators and local
    public school officials in its study. However, we urge DOD to move
    cautiously before making any changes to its education program. These
    schools have become tightly woven into the fabric of the communities
    they serve. Eliminating them would be complicated and expensive for
    DOD, costly for local communities, and painful for military children
    and their families. Most importantly, closing DDESS schools would
    jeopardize the education of thousands of military children, at least in
    the short term. In some cases, the existing school buildings are not up
    to state standards and would have to be extensively renovated. States
    and localities would have to be compensated for the additional expense
    of educating military children over and above what they receive from
    Impact Aid.

              Restore full funding to Department of Defense Education
            Activity schools.

                          military families in crisis
        Even though the war in Afghanistan is coming to an end, military
    families continue to live extraordinarily challenging lives.
    Reintegration continues to pose challenges for some. Others are
    concerned they will be impacted by the military drawdown and are
    anxious about their financial futures. Most military families are
    resilient and will successfully address whatever challenges come their
    way. However, some will need help. It is critical that military
    families trust DOD services and programs and feel comfortable turning
    to them in times of need. These programs and services must be staffed
    and resourced adequately so when families reach out for help, they can
    trust it is available. Military families must be assured our Nation
    will support them in times of family or personal crisis.
    Suicide
        Earlier this year, the Defense Suicide Prevention Office (DSPO)
    released a report outlining an approach for tracking military family
    member suicides. The report, Suicide and Military Families: A Report on
    the Feasibility of Tracking Deaths by Suicide among Military Family
    Members, was requested by the Senate and House Armed Services
    Committees.
        The National Military Family Association appreciates that DSPO in
    its report has identified a methodology for tracking military family
    member suicides. Anecdotal reports indicate the number of military
    family suicides is growing. We cannot address the problem until we know
    its extent. Identifying a methodology is an important first step in
    accomplishing this goal.
        The National Military Family Association strongly urges Congress to
    fund ongoing tracking of military family member suicides.
    Preventing Child Abuse and Neglect, and Domestic Violence
        Research commissioned by our Association \20\ and others during the
    past decade documents the toll of multiple deployments on children and
    families, the difficulties many families face on the servicemember's
    return, and the added strain a servicemember's physical and invisible
    wounds can place on a family. These stressors put military families at
    risk for marital/relationship problems and compromised parenting that
    must be addressed with preventative programs.
    ---------------------------------------------------------------------------
        \20\ Anita Chandra, et al., RAND Center for Military Health Policy
    Research, Views from the Homefront: The Experiences of Youth and
    Spouses from Military Families, 2011
    ---------------------------------------------------------------------------
        Current research validates families will experience the effects of
    war long after deployments end. A recent study highlighted parenting
    challenges fathers face following deployment. The study found that
    while deployment is a time of great stress for families, the need for
    support and a strong community continues during the extended period of
    reintegration after the servicemember returns. This need is
    particularly pronounced when the returning servicemember is father to a
    young child, and he faces the core challenge of reconnecting with a
    child who has undergone significant developmental changes while he was
    away.\21\ A 2013 research brief issued by Child Trends, Home Front
    Alert: The Risks Facing Young Children in Military Families,\22\
    concluded many children negatively impacted by a parent's repeated
    combat deployments will continue to have exceptional needs as they grow
    older.
    ---------------------------------------------------------------------------
        \21\ Tova B. Walsh, et al., ``Fathering after Military Deployment:
    Parenting Challenges and Goals of Fathers of Young Children,'' Health &
    Social Work: A Journal of the National Association of Social Workers,
    February 2014.
        \22\ ``Home Front Alert: The Risks Facing Young Children in
    Military Families'', Child Trends, July 22, 2013.
    ---------------------------------------------------------------------------
        As the war winds down in Afghanistan, those looking for budget cuts
    may find it tempting to slash family support, family advocacy, and
    reintegration programs. However, bringing the troops home does not end
    our military's mission or the necessity to support military families.
    Recent media coverage indicates the incidence of child abuse and
    neglect among Army families has increased. We are concerned the
    extraordinary stress military families have faced could lead to
    increased domestic violence as well. Preventative programs focused on
    effective parenting and rebuilding adult relationships are essential.
    The government should ensure military families have the tools to remain
    ready and to support the readiness of their servicemembers.
        We are encouraged that the Family Advocacy Program, a
    congressionally-mandated DOD program designed to prevent and respond to
    child abuse/neglect and domestic abuse in military families, has
    redoubled its focus on prevention programs. Their efforts to repair
    relationships and strengthen family function will be essential.
        We thank Congress for the study included in the National Defense
    Authorization Act for Fiscal Year 2014 that will look at the needs of
    the families of those servicemembers convicted of a crime.
        We encourage Congress and DOD to ensure that Family Advocacy
    programs are funded and resourced appropriately to help families heal
    and aid in the prevention of child and domestic abuse.
    Military Sexual Trauma
        Our Association appreciates the legislation included in the NDAA
    for Fiscal Year 2013 concerning Military Sexual Trauma (MST) and the
    further legislation that was passed this year. We believe these changes
    will enhance trust in the system among both victims and their loved
    ones. However, we feel the impact of MST on both the families of
    victims and perpetrators has been overlooked.
        Our research indicates civilian organizations supporting sexual
    assault survivors recognize both the importance of family support for
    the victim and the difficulties family members face following their
    loved one's assault. Some of these civilian resources offer guidance on
    how to help the sexual assault survivor through the recovery process.
    They also provide tips to help family members cope with their own
    emotions, including shock, anger, sadness, anxiety and fear, so they
    are better equipped to help the sexual assault victim. Perpetrators'
    families are not addressed by these resources or any others we could
    find. They could also be invisible victims.
        It appears there are limited resources specific to MST victims'
    families. Although the DOD Safe Helpline website (operated by RAINN -
    Rape, Abuse & Incest National Network), has a section called What to Do
    if You or Someone You Know has been Sexually Assaulted, we feel more
    needs to be done to support family members of MST victims and
    perpetrators.
        We request DOD conduct a needs assessment among family members of
    MST victims to determine the ways in which they are struggling to
    support their servicemembers and deal with their own emotions. Together
    with an environmental scan to determine currently available resources,
    this will provide a foundation for developing a family support
    strategy. Directing MST victims' families to existing civilian
    resources may be part of the solution.
        We encourage those supporting victims of sexual assault to remember
    to share resources and support with the families of the victims and the
    families of the perpetrators.
    Survivors
        The Services continue to improve their outreach to surviving
    families. We appreciate the special consideration, sensitivity, and
    outreach to the families whose servicemembers have committed suicide.
    We do have some concerns about the effect Federal civilian employee
    downsizing or hiring freezes will have on programs when certain
    expectations for survivors have been established. DOD and the VA must
    work together to ensure surviving spouses and their children can
    receive the mental health services they need.
        Our Association still believes the benefit change that will provide
    the most significant long-term advantage to the financial security of
    all surviving families would be to end the Dependency and Indemnity
    Compensation (DIC) offset to the Survivor Benefit Plan (SBP). 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.
        Eliminate the Dependency and Indemnity Compensation (DIC) offset to
    the Survivor Benefit Plan (SBP) to recognize the length of commitment
    and service of the career servicemember and spouse. We support H.R. 32,
    which provides for that elimination.
        We believe several other adjustments could be made to the Survivor
    Benefit Plan. Allowing payment of the SBP benefits into a Special Needs
    Trust in cases of disabled beneficiaries will preserve their
    eligibility for income based support programs. This cost of this
    adjustment cannot compare to the peace of mind this affords the parents
    of these special needs children.
        Allow payment of the Survivor Benefit Plan annuity into a Special
    Needs Trust to preserve disabled beneficiaries' eligibility for income
    based support programs.
        The 11th Quadrennial Review of Military Compensation released in
    June 2012 recognized the Survivor Benefit Plan (SBP) annuity for
    Reserve component personnel who die while performing inactive duty is
    significantly less than the benefit available to survivors of active
    duty members and Reserve members who die on active duty. Despite their
    inactive status, these reservists are still performing military duties
    at the time of their death. The review report recommends calculating
    SBP benefits for a reservist who dies while performing active duty
    training using the same criteria as for a member who dies while on
    active duty.
        Calculate Survivor Benefit Program annuities for a reservist who
    dies while performing active duty training using the same criteria as
    for a member who dies while on active duty.
    Wounded Servicemembers Have Wounded Families
        Our Association asserts that behind every wounded servicemember and
    veteran is a wounded family. It is our belief the government,
    especially DOD and the VA, must take a more inclusive view of military
    and veterans' families. Those who have the responsibility to care for
    the wounded, ill, and injured servicemember must also consider the
    needs of the spouse, children, parents of single servicemembers and
    their siblings, and the caregivers. DOD and VA need to think
    proactively as a team and one system, rather than separately, and
    address problems and implement initiatives upstream while the
    servicemember is still on active duty status.
        Reintegration programs become a key ingredient in the family's
    success. For the past 5 years, we have held our Operation Purple
    Healing Adventures camp to help wounded, ill, and injured
    servicemembers and their families learn to play again as a family. We
    hear from the families who participate that many issues still create
    difficulties for them well into the recovery period. Our Association
    believes everyone must focus on treating the whole family, with DOD and
    VA programs offering skill based training for coping, intervention,
    resiliency, and overcoming adversities. DOD, the VA, and non-
    governmental organizations must provide opportunities for the entire
    family and for the couple to reconnect and bond, especially during the
    rehabilitation and recovery phases.
        Ensure better cooperation and accountability between the
    Departments of Defense (DOD) and Veterans Affairs (VA) at the highest
    levels in the support of transitioning wounded, ill, and injured
    servicemembers and caregivers. The lack of a seamless transition
    between agencies still exists and must be corrected.
    Caregiver Support
        Servicemembers and their families must be assured that our Nation
    will provide unwavering support to the wounded, ill and injured. This
    support must extend beyond the recovering warrior's medical and
    vocational rehabilitation. It must also include programs and services
    that help military caregivers, typically spouses or parents,
    successfully navigate their new role. The VA acknowledges that:
    ``Caregivers provide crucial support in caring for veterans.'' However,
    providing this support often has an enormous personal impact on
    caregivers. The time required can result in lost jobs or lost
    wages.\23\
    ---------------------------------------------------------------------------
        \23\ U.S. Department of Veterans Affairs web page: http://
    www.caregiver.va.gov/support--benefits.asp
    ---------------------------------------------------------------------------
        Our Association appreciates the strides DOD has made in providing
    monetary compensation to caregivers of catastrophically wounded, ill,
    and injured servicemembers. The Special Compensation for Assistance
    with Activities of Daily Living (SCAADL) helps offset the loss of
    income by a primary caregiver who provides non-medical care, support,
    and assistance to the servicemember. We believe, however, more can be
    done to optimize the program. SCAADL is considered taxable income,
    which diminishes its value to wounded warrior families. Awareness of
    SCAADL is low and families report difficulties in applying for the
    benefit. Consistent with recommendations from the Recovering Warrior
    Task Force, we request a legislative change to exempt SCAADL from
    income taxes, enhance marketing to the eligible population, and add an
    electronic application process to reduce the burden of completing
    SCAADL paperwork.
        Exempt SCAADL from income taxes, enhance marketing to the eligible
    population, and add an electronic application process to reduce the
    burden of completing SCAADL paperwork.
        One of our legislative priorities is to help wounded warrior
    families become whole again, including addressing service-connected
    infertility. Combat injuries involving pelvic, abdominal, or urogenital
    wounds have led to an increase in the number of servicemembers and
    veterans facing infertility. DOD has authorized assisted reproductive
    services, including in-vitro fertilization (IVF), for severely or
    seriously injured active duty servicemembers. Unfortunately, once
    wounded warriors leave active duty, they are no longer covered for IVF
    by TRICARE or the VA, greatly limiting their ability to start or grow
    their families. Considering the sacrifices these wounded warriors and
    their families have made, we believe it is incumbent on our Nation to
    make every effort to restore their reproductive capabilities. We urge
    DOD and the VA to develop a solution to continue IVF coverage for
    veterans and military retirees facing service connected infertility.
        We urge the Departments of Defense (DOD) and Veterans Affairs (VA)
    develop a solution to continue in vitro fertilization (IVF) coverage
    for veterans and military retirees facing service connected
    infertility.
        Thanks to a grant from the Elizabeth Dole Foundation, our
    Association conducted a study with caregivers last year. This resulted
    in a tool developed by military caregivers for military caregivers to
    help them navigate their new role.\24\
    ---------------------------------------------------------------------------
        \24\ http://www.militaryfamily.org/get-info/caregiver/care-for-the-
    caregiver/tips-from-caregivers.html
    ---------------------------------------------------------------------------
        We believe that DOD and VA must regularly assess the unmet needs of
    caregivers and develop programs to address their evolving requirements.
    These programs not only enable our military caregivers to provide
    essential support to recovering warriors, they also signal a commitment
    to all servicemembers and their families. These assurances allow
    military families to more willingly accept the risks inherent in
    military service resulting in enhanced family readiness.
        Require DOD and the Department of Veterans Affairs (VA) to
    regularly assess the unmet needs of caregivers and develop programs to
    address their evolving requirements.
                 military families--maintaining their readiness
        We have made many recommendations in our statement today all in the
    name of supporting the readiness of military families. Recent national
    fiscal challenges have left military families confused and concerned
    about whether the programs, resources, and benefits contributing to
    their strength, resilience, and readiness will remain available to
    support them and be flexible enough to address emerging needs. Our
    Association believes the DODI 1342.22 must be the baseline for military
    family readiness. DOD must provide the level of programs and resources
    to meet this standard. Sequestration weakens its ability to do so.
        Servicemembers and their families have kept trust with America,
    through over 13 years of war, with multiple deployments and
    separations. We ask the Nation to keep the trust with military families
    and not try to balance budget shortfalls from the pockets of those who
    serve.
        Bringing the troops home does not end our military's mission or the
    necessity to support military families, dealing with the long-term
    effects of more than a decade at war. The government should ensure
    military families have the tools to remain ready and to provide for the
    readiness of their servicemembers. Effective support for military
    families must involve a broad network of government agencies, community
    groups, businesses, and concerned citizens.

        Senator Gillibrand. Thank you for your testimony. I think
    it is vital that each of your testimonies is part of this
    debate because you are the voice for so many who have served
    our country, who are still serving our country, and those who
    rely on the support that benefits and wages actually provide
    for these families.
        So I have three questions for all of you to answer in
    whatever measure you prefer.
        The first is, do you support any of the proposals that the
    administration has offered?
        Second, if you don't, do you have any proposals that could
    yield savings that could be used to restore readiness and
    modernization?
        Third, do you believe that we should wait for the MCRMC to
    report next February so we can consider these proposals more
    holistically? Some of you said that in your testimony.
        But those are the three questions.
        Mr. Davis, you can start if you like.
        Mr. Davis. I'm not sure where you'd want me to start with
    as far as what the proposals are for the--
        Senator Gillibrand. Wherever you like.
        Mr. Davis. Okay. We certainly don't have any problem with
    them looking at the merger of the TRICARE as long as it's done
    in an adequate way. We do oppose them shifting the cost of
    TRICARE to the beneficiaries, as Colonel Hayden mentioned in
    his statement.
        Senator Gillibrand. Do you have concern about the fact that
    you have to travel to a hospital or medical services on a base
    for those who are retired? I thought that might be an issue for
    a lot of people.
        Mr. Davis. It is. We have a considerable number that are
    near MTFs, but it is for a lot of our members as well the
    travel that they want to save money. We have come forward with
    some proposals with that. For example, the direct mail, which I
    know is being implemented for the TRICARE for Life, and I know
    it's been talked about for extending that to other beneficiary
    groups as well, and I think that's important.
        I think the main thing is we've painted ourselves into a
    corner with sequestration, and we need to look at how we can
    get around that, not only just with the benefits for enlisted
    people and for the retirees but also just for our national
    security. I think when you see the cuts coming down the road in
    the coming years, we could cut all kinds of benefit programs
    and we still wouldn't have enough, and we'd end up cutting
    significant end strength and weapons programs and other parts
    of the military that would really jeopardize our national
    security.
        Senator Gillibrand. Thank you.
        Colonel Hayden. Senator, if I could, it's an interesting
    question, line of questioning when you take a look at it. I'm
    going to actually try to answer the last question first,
    because it really comes down to piecemeal approaches.
        It appears that the budget proposal this year, especially
    when you're talking about the overall impact on what it would
    be for military members and their families, as well as the
    retiree population, this is like Jello on a wall. We just threw
    as many things as we could, and we've had to do some things,
    we've had to assume some risk, and DOD is basically saying here
    are the areas where we can assume some risk, and we may or may
    not impact recruiting and retention.
        From our perspective, those piecemeal approaches should be
    the last thing that we should be looking at. If you're going to
    look at broader reforms and you have a commission that Congress
    directed to do just that, that's what we should be looking for,
    much broader reforms.
        I'm encouraged that TMC has had an opportunity to meet with
    the members of the commission, as well as with their staffs,
    and we're encouraged that they're looking at it from more of a
    perspective of how do we provide the same level of benefits, or
    even much better benefits, which potentially could be at a
    lower cost. The idea there is that this is the way this should
    be approached. Unfortunately, what we see, and at least from
    MOAA's perspective, that these are really budget-driven
    decisions.
        This overall impact of the E-5, as we have on the chart
    there, it shows it's about $5,000 annually. When you start
    looking at our pay caps of just 2 years, and the proposal is
    actually for pay caps of what would be 6 years, and all of
    those just repeat the same bad behaviors that we did in the
    1990s. When I was in the Service, I was a recruiter in the
    1990s, turn it around, was the chief of personnel policy in the
    Air Force in 2003 to the 2005 time period, with all of the
    drawdown aspects we were doing at the time, these are starting
    to be some of the same repeat bad behavior that I was involved
    with in the 1990s. So we're capping pay, we're cutting back on
    a commissary benefit, and all of this has a direct impact.
        So the first question that you asked, I'd say no. I'd say
    that we have to take a look at this. How can we do this much
    more efficiently? That's what the commission is supposed to be
    doing and provide those holistics, as well as much more
    streamlined.
        We even offered that a single budget authority could be one
    of the ways we look at it just in the health care delivery.
    There are other things that can be done as you look forward and
    going on to provide the benefit structure.
        But these that they've proposed right now is just Jello on
    the wall.
        Senator Gillibrand. Thank you.
        Captain Hanson. Thank you. I'm going to be the one who says
    it. The proposals for TRICARE that DOD is coming up with is
    just slapping a label onto a bottle of wine that already
    exists. There aren't really new proposals. They just want to
    re-identify things, and one of the best examples is the fact
    that they're changing what used to be called ``enrollment
    fees'' to ``participation fees.''
        When a group of the beneficiaries were on a teleconference
    call with DOD leadership, they got confused on what term to
    use. When it was pointed out that they were confusing
    enrollment fees with participation fees with premiums, they
    said, oh, it's all the same.
        Senator Gillibrand. It's about how much money are you going
    to pay, how much money can we get from you.
        Captain Hanson. Right. So the whole purpose of this
    repackaging is to find ways to shift the cost burden from DOD
    onto the backs of the beneficiaries.
        On to the question of travel to hospitals and MTFs, it
    should be remembered that the Guard and the Reserve for the
    most part are outside of the normal TRICARE network. Because of
    this, they have long distances to travel, and they also have
    challenges to get doctors to accept their TRICARE. So, one,
    they have longer distances to probably find someone, a provider
    who accepts it. Two, with a relabeling, you're going to see the
    same confusion occur in the civilian area that occurred when
    CHAMPUS changed to TRICARE, and those two terms are still being
    used interchangeably today. So we may actually drive providers
    out of the system because things get relabeled.
        As to the question on alternatives, I can share with you
    that when the COLA minus 1 percent issue came up, and we thank
    Congress for having fixed that so quickly, the associations got
    together and started considering certain options to find
    offsets to help correct that problem. You managed to do that on
    your own, and I can share with you that we do have some in our
    pocket to discuss with the subcommittee if we have to find
    these offsets in the near future.
        Now, one example that I can share with you that we tend to
    agree with, a big area that can be improved upon within DOD is
    their acquisition programs. Purchasing of weapons systems is
    not the most efficient, and a lot of dollars are being lost in
    how things are occurring, and that money could be used to save
    some of the benefits.
        We are working, as was mentioned, with the MCRMC, and what
    concerns the ROA the most is DOD's white paper that they
    submitted to the MCRMC already. What we found is this white
    paper is a patchwork of utilizing previous studies and throwing
    out a lot of different choices to the MCRMC. Again, these
    aren't well thought through. I describe it as Jello on the
    wall, but it's definitely a patchwork, and this is a concern
    that we have to go through and analyze these things thoroughly.
        If people are going to submit things to the MCRMC, they
    should do the full staff work in advance rather than relying on
    the MCRMC to do the work for them.
        Thank you.
        Senator Gillibrand. Ms. Moakler?
        Ms. Moakler. First off, I agree with the previous panelist
    that we cannot stress how important it is for the MCRMC to
    finish their work. We agree that they have been most open in
    speaking with us. We have had chances to submit testimony, to
    speak with the different commissioners. So they are really
    doing due diligence to try to look at the entire compensation
    picture.
        Military families know that there are budget cuts coming
    down the pike, and they have already experienced them, and
    they've seen the agencies that provide programs and resources
    for them trying to do more with less, with the people in the
    brick and mortar buildings wearing multiple hats. They kind of
    expect that.
        But what they didn't expect was the volley of hits to their
    pocketbook that were the budget proposals, the less-than-ECI
    pay raise, the slowing of the growth of the BAH, the attack on
    the savings from the commissary. The commissary is such an
    important part of life and the source of such savings to really
    help the financial stability of our military families, it is
    something that they rely on.
        Was it 8 years ago that we finally opened it to the Guard
    and Reserve so they could shop there as often as they wanted
    to? So that is a great resource for them, as well.
        I think the most egregious is forcing Active Duty families
    to assume some of their costs for health care. When we were on
    that same phone call with the leadership, it was implied that
    families have a choice whether they want to go to a provider in
    the network or out of the network, as opposed to going to the
    MTF, the military hospital or clinic. As I spoke to in my
    statement, sometimes they don't have a choice.
        Senator Gillibrand. Is that because the military provider
    doesn't exist, or because----
        Ms. Moakler. No, because you may be the family of a
    recruiter. You may be a family of someone doing Reserve
    Officers' Training Corps duty. You may be attached to a Reserve
    unit. We were reminiscing earlier. When my husband was in
    graduate school, that was the first time I had to use treatment
    for my children that was outside the MTF back in the days of
    CHAMPUS, and that was quite a hit to our pocketbook then.
        Senator Gillibrand. That's because your kids weren't
    covered under your husband's----
        Ms. Moakler. No, because we weren't near a military
    hospital.
        Senator Gillibrand. Oh, logistically.
        Ms. Moakler. Logistically, and that's what is going to be
    tough for our families.
        Senator Gillibrand. That's what I'm worried about. If your
    kid is sick, you can't drive 90 minutes to get him antibiotics.
    That is not going to work with your schedule. There is not
    going to be time in the day to do that. I think it's crazy.
        Ms. Moakler. It's not good health care.
        Senator Gillibrand. It's terrible health care.
        Ms. Moakler. It's not good practice, even for our retirees.
    To think that they're going to drive 2 hours just because
    they're going to be able to access the MTF is a fallacy. They
    should have health care close to where they live.
        Senator Gillibrand. Right.
        Ms. Moakler. Plus, we are wondering how they are going to
    address capacity issues, because they're talking about giving
    preference to those folks who are already enrolled in TRICARE
    Prime so that they would be able to stay in the military
    hospital. But one of the beauties of the TRICARE system was
    that it allowed the military hospitals to ebb and flow, for
    them to make sure that there was room in the hospital or in the
    network, before they had to pay, that they would be able to be
    seen.
        Now we don't know what capacity there will be for military
    families as they move from place to place because we have a
    mobile society with our military families, and how are they
    going to know when they move from one station to another
    whether there is going to be room in the military hospital for
    them? So that's a big concern that we have.
        It's just an awful lot for families to take considering the
    sacrifices that they've made over the past few years. I think
    there is some other way that DOD could come up with to make
    these cuts. We don't have any suggestions on our part, but
    we're hoping that they would be able to come up with those.
        Senator Gillibrand. Let me ask you specifically, for all of
    you who have an answer on this. I am very worried. Our last
    hearing we had was on suicide rates, and there has been a
    horrible increase in the number of both Active Duty and veteran
    status personnel who have committed suicide, and family
    members, because of the strains with multiple deployments,
    because of the nature of the deployments, and because of a lot
    of untreated issues like sexual assault in the military.
        My concern is, under these new proposals for health care,
    that we won't have the access that we need for specialists,
    particularly mental health specialists, for family members, or
    for veterans, or for retired, or for Active Duty, and I'd like
    you to speak to that to the extent you know how these proposals
    could impact that access.
        Mr. Davis. One of the things that I could tell you is, and
    this is from not only hearings of the Senate Armed Services
    Committee but also the Senate Veterans Affairs Committee, there
    is a shortage of mental health professionals.
        Senator Gillibrand. Yes.
        Mr. Davis. So we can mandate that we can hire more mental
    health professionals, but literally there may not be enough out
    there to take care of everyone. So that's a major concern that
    we're very concerned about.
        We are concerned about, like I said, with the reduction in
    end strengths, that that can cause a lot of stress on the
    families. That includes the kids and the spouse and the
    servicemember, and this can cause a lot of problems with regard
    to suicide, but also alcoholism and other bad behavior that
    just exacerbates that situation.
        So we're very concerned about it, but we're very concerned
    that there may not be enough mental health counselors out there
    to fill that void.
        Senator Gillibrand. I think you have to be very aware, and
    we heard that from the statements by Senators today, that the
    recommendations of this panel will be taken very seriously, and
    you have to recognize that it could include every single one of
    the administration's recommendations. I think, in order to
    prepare and to actually give them access to the information
    that they need, you must document what the impact of these
    administration proposals are for the MCRMC, because these are
    minor compared to, I think, what the MCRMC will come up with.
        I think while we're resting on this, the MCRMC is going to
    look at everything, it's going to be more holistic, we're very
    hopeful. If we see what the MCRMC's recommendations are and
    it's all of these cuts plus 10 more, we are going to be in a
    very concerned place.
        I think this is an opportunity for you to heighten your
    advocacy, to get more specifics, and I think even begin to
    document not only the suicide rate but the increase in domestic
    violence rate, and the increase in divorce rate. You can show
    the trauma that is going on amongst these retirees, veterans,
    and family members that is not being addressed. When you change
    the access to mental health services and other health care
    services, you're going to continue to degrade the force,
    because ultimately this is about military readiness, and you
    will not have the force you have today if you can't meet their
    medical needs, and that includes their family members. If you
    have increases in divorce rates and domestic violence rates,
    you're not going to have a ready force.
        I really think you need to look into this issue. We've
    never seen suicide rates as high as we've seen in the military
    today. We've never seen family members committing suicide at
    the rate we've seen today. It's because of the pressure we're
    putting on the force.
        I really think, to the extent you can spend a lot of time
    and effort investigating and actually coming up with this is
    the impact of these cuts on every single constituency that you
    represent, it will be very meaningful, because people are
    thinking these are just numbers.
        I can tell you how Washington works. When they look at
    budgets, they think it's just a number, and we know from the
    administration's proposal how much every single one of these
    budget proposals add up to. This one is $400 million, that one
    is $600 million. We know it's a number, and it adds up to $2.1
    billion, and they're going to just see it as a number, and we
    have to change that reality and see it as a consequence to real
    people, real families, men and women that we ask everything
    from and who deserve better from this country. I will request
    your help.
        Does anybody else want to speak to mental health while
    we're still on that topic?
        Captain Hanson. Mental health is a challenge for those that
    are in the Guard and Reserve because, as I mentioned before,
    they're further away from the network, and some of the tele-
    counseling programs have been cut back on that were
    experimented with a couple of years ago under demonstration
    projects.
        The suicide rate for the Guard and Reserve is a challenge.
    Oddly enough, what brings it about is employment, or I should
    perhaps say unemployment, relationships because of the stresses
    that you pointed out, and in some ways deployment. Ironically,
    it's not so much having been deployed but not having been
    deployed to where we have young reservists and Guard members
    who are now left out of the cadre of the people who went over
    and fought overseas.
        One thing that I know we support is a mental evaluation
    program done upfront when an individual affiliates. One, it can
    filter out personality disorders, which has been a challenge
    for the Services; and two, create a benchmark so that if
    someone is indeed deployed, you know what their mental state
    was before they went, and then you can measure it again when
    they come back. I think that would help on the mental health
    side to see these changes so you can target those people who
    need to be counseled the most.
        Senator Gillibrand. Certainly, that would be helpful in
    benefits, because for a lot of those who have been sexually
    assaulted or raped in the military, one of the ways some of
    these personnel were retaliated against was giving them a
    mental disability, literally saying we're kicking you out of
    the military because you have now displayed emotional problems,
    which these members of the military did not have coming in,
    that they were created because they were subjected to the worst
    kind of treatment, not only by the assailants but then by their
    command structure that should have protected them but allowed
    retaliation and didn't allow proper reporting and justice to be
    done.
        It's a dual betrayal which is undermining so much of their
    ability to be able to continue to thrive in the military, and
    many have been forced out with, now, emotional or personality
    disorders. I think that would be a very useful thing to be able
    to have a baseline, because it's been a tool, unfortunately,
    used to get rid of members of the military who have been so
    bold to report a sexual assault or a rape.
        Ms. Moakler. Madam Chairwoman, I just want to highlight the
    recent study that DOD provided to Congress that was
    congressionally mandated on the feasibility of tracking
    suicides of family members, and to encourage you to encourage
    DOD to take the next step and start tracking the suicides of
    family members so we can help analyze what's causing it and
    what tools are needed to help stop it.
        Senator Gillibrand. We will try to get that in the next
    NDAA, because it would be very useful.
        The last question I want to talk about is, particularly for
    military families, what are the most useful programs we have
    now for our military families? What are the things that support
    them the most? Do the reintegration programs after military
    deployments meet the needs of our military families? Is there
    sufficient transition assistance? What should be done to
    improve on these programs?
        Ms. Moakler. I think one of the most helpful programs that
    has far-reaching effect on all military families, no matter
    where they live, is Military OneSource. That was an innovative
    program at the beginning of the war to address the needs of
    Guard and Reserve families, geographically dispersed families.
    The website is available for those non-ID-card-holding
    families.
        The counseling session of it was amazing and really helped
    a lot of folks cope with the challenges that they met during
    deployments. So we really appreciate Military OneSource and
    feel that it was money well spent.
        In our testimony we highlighted the fact that the Yellow
    Ribbon program, the folks at the headquarters are working on a
    plan for the future, and they've come up with a plan for the
    future on how to adapt the Yellow Ribbon program to the ebb and
    flow of how we're using the Guard and Reserve and how to adapt
    it. They offer three different ways to reach everyone, whether
    they're drilling, whether they're being deployed, however
    they're being used.
        Senator Gillibrand. I would like to work with you on that
    because I think that's very important.
        Ms. Moakler. Yes, it really is. We are very concerned with
    downsizing and how we are going to help our families
    transition, because they have been used to a very robust set of
    support services, and the challenges that they have aren't
    going to go away just because their servicemember is out of
    uniform.
        Senator Gillibrand. Correct.
        Ms. Moakler. How we can educate them on the services that
    are available in their community, and educate communities on
    meeting the challenges that these families are going to have.
        Senator Gillibrand. I want to thank all of you for your
    testimony.
        Yes, Mr. Hanson?
        Captain Hanson. Thank you, ma'am. One of the things that
    was covered in the ROA written testimony is the fact that
    support for families is one of the Reserve gaps that we found.
    I think Kathy has given a good summary of efforts that are
    occurring to help the Guard and Reserve in family support. But
    the big challenge you have, of course, is the geographic
    dispersement, unlike military Active Duty organizations where
    families are close together.
        I think it's going to take a public-private partnership to
    accomplish building additional programs to help the Guard and
    Reserve in this area because there is still a void there.
        One area I know that the ROA is working on is School Kits,
    as we call it, because when you have Active Duty children going
    on-base to school or just off a base to school, the teachers
    are very familiar with deployments and things like this, but
    you could very much have a Reserve child as an individual
    within a school with the teachers not realizing the type of
    stresses that they face.
        We've been working with the NMFA on developing this kit,
    and we've been trying to get partnership in the private sector
    so that we can beta test this.
        Senator Gillibrand. I'd be delighted to work with you on
    that. I think we should also try to engage the Governors
    Association because, obviously, the Governors are supposed to
    have a responsibility towards National Guard and Reserve. So
    maybe a collaborative effort between Federal Government and
    State government could be beneficial in that.
        Again, thank you all for your testimony. You can submit any
    additional testimony for up to a week. I think it's been very
    important that you're here to be part of this debate. As I
    mentioned, this is going to be a very long debate, and so I
    urge constant advocacy in every State because I think people
    have to see the face and understand the family impacts of these
    types of decisions. If it's just a number, it's very easy to
    cut. If it's families and people and real lives, it is less
    easy to cut.
        Thank you. We are adjourned.
        [Whereupon, at 1:09 p.m., the subcommittee adjourned.]

        [Questions for the record with answers supplied follow:]
              Questions Submitted by Senator Kirsten E. Gillibrand
                                tricare changes
        1. Senator Gillibrand. Dr. Woodson, every year since at least 2006,
    the Department of Defense (DOD) has proposed changes to the TRICARE
    program to shift more of the cost to beneficiaries. Congress has not
    supported these efforts. While we have not yet seen the DOD legislative
    proposal for this year, we understand that it is an effort to
    fundamentally restructure TRICARE. How does this year's proposal differ
    from prior DOD proposals?
        Dr. Woodson. Previous years' proposals were largely proposed
    changes (increases) to the costs borne by participants. The fiscal year
    2015 President's budget proposal is a wholesale renovation of the
    TRICARE program that offers real improvements to participants. This
    proposal would simplify and modernize the existing TRICARE program in
    ways that provide incentives for wellness, decrease overutilization of
    health services, and allow beneficiaries to choose their providers
    whenever they need care. This proposal includes modest increases in
    beneficiary out-of-pocket costs for Active Duty families, retirees and
    their families, and Reserve component members and their families,
    although some families may actually see a decrease. The TRICARE benefit
    would remain one of the most comprehensive benefits in the country, as
    it should be. Servicemembers on Active Duty would have no out-of-pocket
    expense regardless of where care is delivered (Military Treatment
    Facility (MTF), network, or out-of-network) and the highest priority
    for access to MTF care.

        2. Senator Gillibrand. Dr. Woodson, how would this year's proposal
    increase the out-of-pocket cost of healthcare for Active Duty family
    members, military retirees under the age of 65, and military retirees
    using TRICARE for Life (TFL)?
        Dr. Woodson. In the fiscal year 2015 President's budget submission,
    DOD seeks to leverage proven utilization management controls by
    building a shared commitment to health care while offering
    beneficiaries more flexibility and choices. DOD is proposing a
    consolidated TRICARE health plan to replace the TRICARE Prime,
    Standard, and Extra health insurance-like plans. Following are key
    financial elements of the consolidated health plan:

             No change for Active Duty--who would maintain priority
            access to health care without any cost sharing and would still
            require authorization for civilian care.
             Cost shares--will depend on beneficiary category
            (excluding Active Duty) and care venue and are designed to
            minimize overutilization of costly care venues, such as
            emergency departments. Cost shares would be the lowest in MTFs,
            higher in the network, and highest out of network, which will
            facilitate the effective use of military clinics and hospitals
            and thereby improve the efficiency of our fixed facility cost
            structure.
             Participation Fee--for retirees (not medically
            retired), their families, and survivors of retirees (except
            survivors of those who died on Active Duty). They would pay an
            annual participation fee or forfeit coverage for the plan year.
             Catastrophic caps--which have not gone up in 10 years
            would increase slightly but still remain sufficiently low to
            protect beneficiaries from financial hardship. The
            participation fee would no longer count towards the cap.
             Medically retired members and their families and
            survivors of those who died on Active Duty would be treated the
            same as Active Duty family members with no participation and
            lower cost shares.

        In addition to consolidating TRICARE Prime, Standard, and Extra,
    DOD proposes to:

             Increase co-pays for pharmaceuticals (excludes Active
            Duty servicemembers). While the National Defense Authorization
            Act (NDAA) for Fiscal Year 2013 included some adjustments to
            the TRICARE pharmacy co-pay structure and initiated a pilot
            program requiring the use of mail order to refill maintenance
            medications for TFL beneficiaries, DOD determined that
            additional adjustments are necessary to fully incentivize the
            use of mail order and generic drugs. The proposed pharmacy
            changes in the fiscal year 2015 budget are phased-in over a 10-
            year period, and prescriptions will continue to be filled at no
            cost to beneficiaries at MTFs. In addition, the proposal
            requires that all prescriptions for long-term maintenance
            medications (e.g., blood pressure, cholesterol) must be filled
            through the MTFs or the TRICARE mail order pharmacy.
             Implement modest annual fees for TFL coverage, but the
            proposal will grandfather TFL beneficiaries in the program
            prior to enactment. The TFL enrollment fees will be phased in
            over a 4-year period and will be based on a percentage of the
            beneficiary's military gross retired pay up to an annual fee
            ceiling, with indexing to retiree cost-of-living adjustment
            after fiscal year 2018. There will be a separate fee ceiling
            specifically for general/flag officers.

                               record integration
        3. Senator Gillibrand. Secretary Wright, in your written testimony
    you discuss the work being done to integrate DOD and Department of
    Veterans Affairs (VA) Electronic Health Records (EHR) systems. DOD and
    VA previously worked to integrate their two existing systems, and after
    many years and millions of dollars the plans were scrapped and DOD
    announced it would find a way to build its own system. In fact, a
    recent Government Accountability Office (GAO) report stated ``VA and
    DOD have not substantiated their claims that the current approach will
    be less expensive and more timely than the single-system approach.''
    Every day that we wait for an integrated Electronic Health Record
    (iEHR) system is a day that veterans are held up while trying to
    process their claims. It is unacceptable. Please explain why work to
    establish a joint system fell apart last year and why DOD thinks trying
    to establish and integrate separate systems will work better than
    finding a way to create a single system?
        Ms. Wright. In December 2012, Secretaries Panetta and Shinseki
    directed a joint review of the iEHR program with the goal of
    simplifying and accelerating the achievement of data interoperability
    while reducing the cost and technical risk of what had proven to be a
    complex and expensive joint IT development program.
        In January 2013, the Secretaries of both Departments directed the
    DOD/VA Interagency Program Office (IPO) to execute several near-term
    data interoperability initiatives on an accelerated timeline. The
    accelerators included the creation of a data management service that
    retrieves electronic data from across DOD and VA EHR system data
    repositories for any given patient and shares it between DOD and VA in
    a standardized format. This enables data that was previously shared
    between the two Departments as ``viewable'' only, to be more clinically
    useful to providers in the delivery of care. This has been accomplished
    for seven critical clinical areas--medications, problem lists,
    allergies, laboratory results, vital signs, immunizations, and note
    titles--which represent the vast majority of most patients' clinical
    information. This level of interoperability was achieved without
    replacing the healthcare management software system for either
    Department. The standardized health data is easily exchanged regardless
    of the EHR system used, similar to how two different email systems are
    able to exchange email messages.
        It is important to note that, for the DOD, achieving data
    interoperability is also the path forward to exchanging health
    information with private healthcare providers. Today, 65 percent of all
    servicemember, dependent, and beneficiary healthcare is provided
    outside the military health network through private providers.
    Capturing this health information from patient encounters that are
    performed outside the military health system (MHS) can only be
    accomplished through interoperability standards championed by the
    Department of Health and Human Services (HHS) and being adopted by
    commercial health care providers. The use of open national standards to
    express the content and format of the information, not a single
    healthcare management software system, is the cornerstone of seamless
    exchange of health information.
        Today, DOD and VA are pursuing complimentary but different paths to
    modernize the EHR. On May 21, 2013, Defense Secretary Hagel announced
    the DOD decision to pursue a full and open competition to modernize its
    EHR systems while continuing to ensure interoperability with VA. VA
    will be modernizing their VistA-based platform over the coming years.
    DOD under the DOD Healthcare Management System Modernization (DHMSM)
    Program will be acquiring an industry-based EHR platform with the goal
    to have initial operating capability by the end of calendar year 2016.
    DOD will build upon many of the iEHR and legacy interoperability
    efforts so that when the DHMSM EHR system comes on line it will have
    developed interoperability capabilities to interact with the modernized
    VA EHR system and private healthcare providers. Further, DOD will work
    with IPO and the HHS Office of the National Coordinator to drive the
    adoption of national data standards required for seamless exchange of
    health information through the DHMSM acquisition.

                     defense finance and accounting service
        4. Senator Gillibrand. Mr. Hale, it has come to my attention that
    the Army is considering a proposal to restructure its financial
    enterprise in a way that would impact how the Army uses the Defense
    Finance and Accounting Service (DFAS). This plan could severely impact
    the civilian employees currently working at DFAS sites like the one in
    Rome, NY, who ensure the centralization, professionalism, and
    efficiency of DOD's accounting. I believe DFAS is a logical focal point
    to ensure that DOD has independent accountants developing standardized,
    auditable records. What can you tell me about this plan?
        Mr. Hale. The Army Financial Management Optimization initiative is
    intended to adopt best practices, increased effectiveness and
    efficiencies, reduce redundant capacity, and produce auditable
    financial statements.
        As part of this initiative, the Army will conduct a pilot program
    that will consolidate internal Army Finance Corp activities into a
    single location to gain efficiencies. This pilot will begin October 1st
    of this year. We cannot forecast the results of this pilot program;
    however, the pilot itself will not have an effect on the workload of
    any DFAS location.

        5. Senator Gillibrand. Mr. Hale, what is your vision for DFAS's
    role and functions?
        Mr. Hale. As a service provider, DFAS supports DOD's finance and
    accounting needs. DFAS will meet these needs in the most cost effective
    and efficient means possible while maintaining high standards and
    supporting DOD's audit readiness goals.

        6. Senator Gillibrand. Mr. Hale, I am concerned that I had to hear
    about the impact to my State through back channels. Do I have your
    assurances that you will highlight this with your successor as a
    priority and ask that my office be kept apprised of all future action
    relating to changes in the DFAS mission and force structure?
        Mr. Hale. I will ask my successor to keep you and Congress informed
    of any changes to the DFAS mission or force structure.

                                     autism
        7. Senator Gillibrand. Dr. Woodson, I would like to update you on
    changes to applied behavioral analysis (ABA) coverage since the last
    time you addressed this subcommittee: in 2013 Federal Employees Health
    Benefits Program plans began offering coverage of ABA as a medical
    treatment; there are now 34 States that require insurers to cover ABA
    as medical care; since the roll out of the Affordable Care Act (ACA),
    half of the State exchanges picked up coverage of ABA as a medical
    benefit; dozens of large self-insured companies like Home Depot, United
    Technologies, Capital One, Qualcomm, and American Express provide ABA
    coverage, including services delivered by ABA technicians and assistant
    behavior analysts, for their employees as medical care, yet TRICARE
    does not. I understand that TRICARE offers three different programs
    through Basic, Extended Care health Option (ECHO), and the pilot
    program, yet each program comes with its own set of restrictions on
    coverage. And during last year's hearing you even stated that you would
    prefer ABA to be an educational benefit instead of a medical benefit
    despite a broad recognition of it as a medical benefit. We are now less
    than 4 months away from the end of the pilot program that was
    authorized during the NDAA for Fiscal Year 2013. Please update me on
    the ABA therapy pilot program that was authorized as part of the NDAA
    for Fiscal Year 2013. How many families have made use of the program?
        Dr. Woodson. The ECHO Autism Demonstration ABA tiered service
    delivery model was extended to non-Active Duty family members (NADFM)
    under a 1 year pilot project (these NADFMs include retiree dependents
    and participants in TRICARE Reserve Select (TRS), TRICARE Retired
    Reserve, TRICARE Young Adult, TFL, and the Continued Health Care
    Benefit Program). Any NADFMs who choose not to participate in the ABA
    pilot may still receive ABA under the TRICARE Basic Program. Based on
    contractor feedback (TRICARE purchased-care claims can be submitted up
    to 1 year after the service is provided and, therefore, claims data is
    incomplete and not a reliable indicator of current ABA pilot
    participation), as of March 2014, there were 124 beneficiaries approved
    to receive ABA for Autism Spectrum Disorder (ASD) under the ABA pilot
    and another 177 pending approval.

        8. Senator Gillibrand. Dr. Woodson, do you have data you can share
    on the success of the program?
        Dr. Woodson. Based on contractor feedback (TRICARE purchased-care
    claims can be submitted up to 1 year after the service is provided and,
    therefore, claims data is incomplete and not a reliable indicator of
    current ABA pilot participation), as of March 2014, there were 124
    beneficiaries approved to receive ABA for ASD under the ABA pilot and
    another 177 pending approval.

        9. Senator Gillibrand. Dr. Woodson, I understand that several
    primary barriers to service have been identified as a result of the
    requirements to participate in the pilot program. I have heard from
    families that these barriers were so restrictive that many families
    decided it was not worth it to participate in the program, which has
    contributed to low enrollment. What are those barriers and what are you
    doing to eliminate them?
        Dr. Woodson. Completion of psychometric testing and assessment
    requirements is the biggest barrier. Specifically, obtaining the
    required psychometric testing--Autism Diagnostic Observation Schedule,
    Second Edition (ADOS-2) and/or Vineland Adaptive Behavior Scale II
    (Vineland-II), is primary reason for reported treatment delays.
        TRICARE has been engaging in focus groups with various stakeholders
    regarding the ABA pilot and TRICARE's coverage of ABA for ASD. Included
    in these focus groups have been participants from various
    organizations, families of children with ASD, military providers who
    treat ASD, and ASD advocacy groups. Feedback was provided regarding the
    ABA pilot, to include concerns about the availability of psychometric
    testing.
        Adjustments have already been made to policy regarding the ABA
    pilot in response to feedback from focus groups. For example,
    administration of the ADOS-2 is required only at the beginning of
    enrollment in the ABA pilot, and waiver requests for continued ABA
    beyond 2 years will not require a repeat ADOS-2. Another example of
    feedback from the focus groups was a concern regarding continuity of
    care during transition periods. Subsequently, Active Duty family
    members enrolled in the ECHO Autism Demonstration who transition to
    retiree status will be allowed direct entry into the ABA pilot, and a
    1-year grace period will be granted to meet the ABA pilot's diagnosis,
    referral, and assessment requirements. TRICARE continues to integrate
    feedback from the focus groups to make improvement in the delivery of
    ABA services.

        10. Senator Gillibrand. Dr. Woodson, families report that the
    limited number of available board certified behavior analysts makes
    access to ABA services under the TRICARE basic program difficult. To
    meet the demand for care in the civilian marketplace, ABA services are
    often delivered through a tiered service delivery model that uses
    assistant behavior analysts and ABA technicians who work under the
    supervision of a board certified behavior analyst. This delivery model
    is allowed by insurance carriers under State insurance laws and State
    exchanges, helps deliver treatment economically, and allows for the
    expertise and oversight needed to reach treatment goals. As we have
    seen through the Autism Demonstration, the tiered service delivery
    model has the ability to greatly expand the number of providers that
    deliver ABA services, thereby improving access to care for TRICARE
    beneficiaries. Are there any statutory or regulatory barriers that
    prevent the TRICARE basic program from covering ABA services delivered
    under the tiered service delivery model? Are there any emergency
    regulations that allow you to address this need immediately?
        Dr. Woodson. Yes, ABA has not been shown by reliable evidence to
    meet the requirements of 10 U.S.C. 1079 (a)(13) and 32 C.F.R. section
    199.4(g)(15) to be proven medically or psychologically necessary
    appropriate medical care for ASD. The reliable evidence standard for
    cost-sharing required by 32 C.F.R. section 199.4(g)(15) has not been
    met. An interim coverage determination of June 28, 2013, reaffirmed
    that reliable evidence does not support coverage under the basic
    program, but deferred any change during the 1-year NDAA-2013 ABA pilot,
    which has a statutory end date of July 24, 2014.
        In response to the second question, yes, using DOD's demonstration
    authority in section 1092 of title 10, U.S. Code, DOD will address this
    need by consolidating TRICARE coverage of ABA into a new Autism Care
    Demonstration to improve the quality, efficiency, convenience, and cost
    effectiveness of those autism-related services that do not constitute
    the proven medical care provided under the medical benefit coverage
    requirements that govern the TRICARE basic program. The Autism Care
    Demonstration will offer comprehensive ABA, including the tiered model,
    for all TRICARE eligible beneficiaries with an ASD when diagnosed by an
    appropriate provider.

        11. Senator Gillibrand. Dr. Woodson, the pilot program is set to
    expire on July 24, 2014. Do you have a plan in place to allow for
    continued coverage of ABA therapy for families accessing the pilot?
        Dr. Woodson. Yes, DOD seeks to consolidate TRICARE coverage of ABA
    based on DOD's demonstration authority in section 1092 of title 10,
    U.S. Code.

        12. Senator Gillibrand. Dr. Woodson, have you addressed this with
    the impacted families so that they may plan for coverage after the
    pilot expires?
        Dr. Woodson. Yes, the Defense Health Agency (DHA) has been engaging
    in focus groups with various stakeholders regarding the ABA pilot and
    TRICARE's coverage of ABA for ASD. Included in these focus groups have
    been participants from various organizations, families of children with
    ASD, military providers who treat ASD, and ASD advocacy groups. The DHA
    will proactively educate beneficiaries, providers, and other
    stakeholders about the new Autism Care Demonstration (ACD). To ensure
    continuity of ABA care for all beneficiaries, the ACD will be
    implemented in a phased approach to transition from those coverage
    rules that currently exist under the patchwork of programs to the new
    consolidated ACD, and all contracting actions necessary to start
    services under the ACD are completed. DOD will commence ABA coverage
    under the ACD model by July 25, 2014, the statutory end date of the
    current ABA pilot, with all beneficiaries transitioned from their
    current ABA coverage model to the new consolidated ACD not later than
    December 31, 2014.

        13. Senator Gillibrand. Dr. Woodson, what have you included in your
    budget submission for fiscal year 2015 to improve upon TRICARE's
    coverage of ABA therapy for military dependents?
        Dr. Woodson. Using DOD's demonstration authority in section 1092 of
    title 10, U.S. Code, DOD will consolidate TRICARE coverage of ABA into
    a new ACD to improve the quality, efficiency, convenience, and cost
    effectiveness of those autism-related services that do not constitute
    the medical care provided under the medical benefit coverage
    requirements that govern the TRICARE basic program. An independent
    government cost estimate for this initiative is pending. However,
    reflecting the growth in the number of program users, total government
    costs for Active Duty family member ECHO and Basic ABA program
    participants with ASD diagnoses nearly quadrupled between fiscal year
    2009 and fiscal year 2013 (from $31.0 to $122.8 million) increasing at
    an average annual rate of 41 percent over the period. In addition, non-
    Active Duty family members incurred a total of $6.4 million in
    expenditures using the TRICARE basic and ABA pilot programs.

        14. Senator Gillibrand. Dr. Woodson, I would like specifics on how
    many TRICARE beneficiaries have been diagnosed with ASD and other
    disorders requiring ABA treatment. How many are dependents of Active
    Duty service members; how many are dependents of non-Active Duty
    servicemembers, including National Guard, Reserve, and retirees; how
    many are dependents of members of the Coast Guard, National Oceanic and
    Atmospheric Administration, the Public Health Service, and their
    retirees?
        Dr. Woodson. In fiscal year 2013, there were a total of 7,808
    Active Duty family member beneficiaries with an ASD requiring and
    receiving ABA services. Of those beneficiaries, 3,397 were dependents
    of Active Duty Army, 1,733 Navy, 1,656 Air Force, 775 Marine Corps, 192
    Coast Guard, and 55 other. In addition, 634 non-Active Duty family
    members required and received ABA services.

                          basic allowance for housing
        15. Senator Gillibrand. Secretary Wright, DOD has proposed
    increasing out-of-pocket housing costs by approximately 5 percent and
    also the same dollar amount for everyone in a certain rank regardless
    of location over the next several years. The current housing allowance
    is based on rental data and is intended to cover 100 percent of housing
    costs. Can you please explain how you plan to implement this?
        Ms. Wright. The out-of-pocket percentage will be phased in
    beginning in fiscal year 2015; because members will be rate protected
    at their current location, the exact percentage to be taken each year
    during the phase-in is dependent on the actual change in housing costs
    from 1 year to the next. Renter's insurance accounts for about 1
    percent of BAH rates and will be removed in 2015. The proposal allows
    for a growth in BAH rates of 1.5 percent per year, with the difference
    between this and otherwise unconstrained BAH rates to be made up
    through increasing out of pocket. Using a planning factor of 4.2
    percent growth in housing costs per year and removing renter's
    insurance in the first year, we expect to see out-of-pocket housing
    costs growing as follows: 1.6 percent in 2015, 4.1 percent in 2016, and
    5 percent for 2017 and beyond (when also considering the removal of
    renter's insurance, the average impact to the member is expected to be
    2.6 percent/5.1 percent/6 percent). However, the actual out-of-pocket
    percentage could then be modified each year based on other factors such
    as retention.
        In order to ensure members are treated equally regardless of
    whether they are stationed in high-cost or low-cost areas, the out-of-
    pocket percentage will be taken from the national average BAH rate for
    each grade. This will determine the dollar amount of reduction to be
    applied to each BAH rate for that grade.

                         sexual assault and harassment
        16. Senator Gillibrand. Secretary Wright, although you discussed an
    increase in reports of sexual assault last year, you did not do a
    prevalence survey, making it impossible to know if reporting rates
    actually went up or down. Why did you not do a prevalence study last
    year and do you plan to do one this year?
        Ms. Wright. Section 481 of title 10, U.S.C. requires DOD to conduct
    a Workplace and Gender Relations Survey (WGRS) so as to solicit
    information on issues relating to gender-based harassment, assault and
    discrimination, and the climate in the Armed Forces for forming
    professional relationships between men and women. The WGRS is conducted
    biennially and is to be conducted for 2014. The WGRS includes
    prevalence rate and fulfills this requirement. DOD understands that
    servicemembers are asked to respond to numerous surveys from internal
    DOD agencies and external organizations on a variety of topics and
    interests, including sensitive topics such as sexual assault. As the
    number of surveys rises, we have seen decreasing response rates across
    all military survey efforts. We feel maintaining a biennial cycle for
    the WGRSs is the best way to protect our members from survey fatigue
    and produce the most accurate data on this topic to DOD, Congress, and
    the public.

        17. Senator Gillibrand. Secretary Wright, are you making any
    changes to how the study will be implemented?
        Ms. Wright. Yes, we are. The fiscal year 2014 WGRS was contracted
    with RAND Corporation, a federally-funded research and development
    center (FFRDC) to independently design, administer, and analyze.
        In addition to reporting prevalence of sexual assault and
    associated risk factors (e.g., sexual harassment, alcohol use, etc.),
    RAND will also conduct a critical review of the DOD's survey
    methodology, implement improvements for the 2014 WGRS to increase
    response rates and reduce non-response bias, and recommend additional
    improvements for future WGRS administrations by DOD.
        With respect to development of the survey questions and
    definitions, RAND intends to consult with an advisory panel of
    nationally-recognized experts in survey methodology, assessment of
    sexual assault and harassment, military law, and related topics. The
    panel will review and modify, as necessary, the sexual assault and
    harassment survey questions to ensure consistency with the offense
    definitions in Articles 120, 125, and 80 of the Uniform Code of
    Military Justice (UCMJ).
        RAND's methodological design will include:

             A Larger Sample. RAND will invite 100 percent of
            Active Duty female servicemembers and 25 percent of Active Duty
            male servicemembers to take the survey. This approach will
            produce a sample of about 500,000 Active Duty servicemembers--
            or one-third of the Active Force. In order to support the
            requirements of the report to the President due later on this
            year, a sample of Reserve component members will also be
            included. This approach will maximize our ability to examine
            the impact of these behaviors on subgroups in the military
            sample. Given the census of women and the large sample of men,
            weighting of results is not planned.
             Comparability of Results to Prior Survey
            Administrations. RAND will administer the unwanted sexual
            contact and sexual harassment survey questions from the 2012
            WGRS to a subsample of survey respondents. This will allow them
            to assess the effects of survey question wording on assessed
            prevalence rates, and will clarify how the new survey relates
            to earlier time trend data.
             Methods to increase response rates. Finally, RAND will
            make recommendations to improve response rates to this and
            other DOD surveys.

        DOD considers the comparability of previous Defense Manpower Data
    Center surveys with the results of the 2014 WGRS of utmost importance.
    RAND has also been asked to evaluate and validate DOD's current survey
    methodology to identify areas of improvement, if any, for future DOD-
    administered surveys.

        18. Senator Gillibrand. Secretary Wright, you also mentioned in
    your testimony that the increase in the number of reports suggests an
    increase in confidence in response systems. Last year the DOD Inspector
    General (IG) evaluated the handling of 501 sexual assault cases by
    Military Criminal Investigative Organizations (MCIO) and found that 56
    had significant deficiencies. Of the 56 cases, the MCIOs reopened 31
    cases for additional investigative work but determined that for the
    remaining 25 cases additional investigative activity was not
    practicable due to the amount of time elapsed or based on their
    judgment that additional efforts would be useless. What measures has
    DOD put in place to ensure the accuracy of these investigations and the
    proper investigation of all sexual assault cases by MCIOs?
        Ms. Wright. In July 2011, the OIG DOD established the Violent Crime
    Division (VCD) as a means of anticipating and meeting DOD's current and
    future needs for oversight of sexual assaults and other crimes of
    violence. The VCD completed the evaluation you mentioned and they
    continue to provide oversight for these reopened investigations as they
    are completed to ensure the deficiencies have been resolved to the
    maximum extent possible.
        The VCD continues to work closely with the MCIOs to oversee their
    closed sexual assault investigations by providing a program of regular
    and recurring oversight in order to monitor and evaluate investigative
    quality and conformance with policy guidance.
        In response to Secretary Hagel's August 2013 request to ensure
    investigative quality, the OIG DOD will evaluate the adequacy of
    ``closed sexual assault investigations on a recurring basis.'' As such,
    the OIG DOD recently announced the second recurring review of MCIO
    sexual assault investigations with adult victims. The case reviews
    began in April 2014 and the project will consider a statistically valid
    sample of over 500 investigations closed in 2013, for cases opened
    since January 1, 2012. The objective of this project is to determine
    whether MCIOs completed each investigation as required by guiding DOD,
    Military Service, and MCIO policies and procedures.
        It is the responsibility of the OIG DOD to issue criminal
    investigative oversight policy. As such, in January 2013, the OIG DOD
    published DOD Instruction 5505.18, ``Investigation of Adult Sexual
    Assault in the Department of Defense,'' which establishes policy,
    assigns responsibilities, and provides procedures for the investigation
    of adult sexual assault within the DOD. This policy made the MCIOs
    solely responsible for thoroughly investigating all sexual assault
    allegations of which they become aware, irrespective of severity or
    credibility. It also established minimum training requirements for all
    MCIO personnel engaged in the conduct of sexual assault investigations.
        In February 2014, the OIG DOD published a Directive-Type Memorandum
    setting forth department-level policy for the establishment of the
    investigative portion of the Special Victim Capability (SVC) required
    in the NDAA for Fiscal Year 2013, which mandates a distinct,
    recognizable group of appropriately trained investigators to
    investigate allegations of all designated SVC covered offenses. SVC
    covered offenses include: allegations of adult sexual assault offenses,
    domestic violence involving sexual assault and/or aggravated assault
    with grievous bodily harm, and child abuse involving sexual assault
    and/or grievous bodily harm.

        19. Senator Gillibrand. Secretary Wright, the evaluation also found
    that there were differences between the MCIOs' policies and gaps in all
    of their work. What is DOD doing to ensure that the MCIOs use best
    practices in investigating cases of sexual assault?
        Ms. Wright. The OIG DOD is conducting a comprehensive review of
    current MCIO sexual assault investigation policies, including their
    alignment with DOD and Service requirements relative to sexual assault
    investigations. The evaluation compares the MCIOs' policies against:

        (1)  DOD and Military Service level guidance,
        (2)  each set of MCIO policies to identify gaps between them and to
    identify MCIO best practices not yet shared,
        (3)  industry best practices, and
        (4)  the Council of Inspectors General on Integrity and Efficiency
    (CIGIE) Quality Standards for Investigation (QSI).

        While CIGIE QSI and law enforcement best practices are not mandated
    by DOD, OIG DOD's research identified some of them as useful for
    consideration in DOD's sexual assault investigations. The OIG DOD is
    also evaluating whether the MCIOs' sexual assault investigation
    policies include procedures equivalent to the relevant CIGIE QSIs and
    law enforcement industry sexual assault investigative best practices.
    The results of this review will not only inform the MCIOs, but be used
    by OIG DOD to assess the need for additional DOD level, overarching
    sexual assault investigative policy.

        20. Senator Gillibrand. Secretary Wright, I understand that there
    is good research being done on how to identify predators. Is DOD
    looking at ways to identify predators before they enter the military?
        Ms. Wright. DOD has been consulting with researchers on this topic
    for a number of years. Research in the civilian sector has consistently
    shown that there is no psychological test or psychometrically sound
    screening tool that reliably and accurately differentiates individuals
    who have committed sexual crimes from those that have never committed
    sexual crimes. In addition, there is no scientifically sound research
    that can predict to a quantifiable degree of certainty whether someone
    will commit a sexual crime, if there is no prior, documented sex crime
    conviction. Prototype screening instruments developed in the civilian
    sector demonstrate unacceptably high rates of false positives
    (identifying people as potential offenders when they're not) and false
    negatives (identifying people as non-offenders when they actually are).
    Nevertheless, given the data we've collected since the inception of the
    Sexual Assault Prevention and Response (SAPR) Program, we will continue
    to investigate whether military sexual offenders have behavioral and/or
    history factors that might be used to improve screening efforts.

        21. Senator Gillibrand. Secretary Wright, I understand that you are
    working on a congressionally-mandated report on a comprehensive
    approach to dealing with sexual harassment that was due earlier this
    year, but it is part of a broader program of implementing equal
    opportunity efforts that is not yet complete. When can we expect to see
    the report?
        Ms. Wright. NDAA for Fiscal Year 2013 required a plan to collect
    data and information from the Military Services on substantiated
    incidents of sexual harassment. We submitted the plan in August 2013.
    This month, we will submit to Congress the DOD Report on Substantiated
    Incidents of Sexual Harassment in the Armed Forces, resulting from the
    data collection plan. This initial report will serve as a baseline for
    future sexual harassment data and information collection and reporting,
    as we continually work toward zero incidents of sexual harassment in
    the DOD workplace.
        NDAA for Fiscal Year 2013 also required a comprehensive policy on
    reporting, preventing, and responding to incidents of sexual
    harassment. We are coordinating a directive-type memorandum, with
    interim sexual harassment policy guidance to the Services and expect it
    to be issued in early summer. Meanwhile, our revised DOD Military Equal
    Opportunity (MEO) Instruction, which details sexual harassment policy
    guidance, has been updated and is in coordination. We expect to publish
    the DOD MEO Instruction this year.

        22. Senator Gillibrand. Secretary Wright, I understand that
    currently sexual harassment fits under the Office of Equal Employment
    Opportunity and Diversity. Do you think that this is the most effective
    place for it?
        Ms. Wright. I do think the current alignment under our Office of
    Diversity Management and Equal Opportunity (ODMEO) is most effective.
        Relevant laws define sexual harassment as a form of sex
    discrimination for DOD civilians and military personnel. Therefore DOD
    centralizes policy oversight responsibility for sexual harassment in
    the same functional area as is housed discrimination based on other
    protected categories defined in law and policy.
        To move sexual harassment policy oversight to another office that
    currently does not have policy oversight for other types of unlawful
    discrimination would create management challenges that could detract
    from our current prevention efforts. Under such a construct, DOD would
    have to maintain at least two separate offices both performing the same
    task of policy oversight for programs to prevent unlawful
    discrimination.
        As we continue to work to eliminate sexual harassment in DOD, we
    are reviewing the roles, responsibilities, and resources of ODMEO in
    its sexual harassment policy oversight function.

        23. Senator Gillibrand. Secretary Wright, I recently held a hearing
    about the links between sexual assault, post-traumatic stress disorder
    (PTSD), and suicide in which it was clear that sexual harassment can
    also lead to PTSD and other mental health injuries. At the same time, I
    understand that predators often start with harassing behavior before
    attempting assaults. How can we address it properly if it is not seen
    as part and parcel of our approach to addressing sexual assault? Where
    and how should we draw the lines?
        Ms. Wright. DOD believes that we cannot effectively address sexual
    assault without considering the impacts of harassing behaviors and
    other risk factors defined by DOD as the continuum of harm. The newly
    revised 2014-2016 DOD Sexual Assault Prevention Strategy defines and
    explains the relationship between harassing behaviors and sexual
    assaults.
        Currently, the DOD organizational framework and the Military
    Services, with the exception of the Army, handle sexual assault and
    sexual harassment under separate programs. However, every Service
    acknowledges the continuum of harm in their prevention training and has
    taken steps to eliminate the environments that support these
    inappropriate behaviors.
        Leaders are responsible for creating climates of mutual respect and
    diginity. To help leaders better understand the factors at play within
    their units, DOD updated the SAPR questions on the DEOMI Equal
    Opportunity Climate Survey to assist commanders in identifying damaging
    attitudes and behaviors within their units. Conducting a climate
    assessment enhances a leader's knowledge about the specific needs of
    his or her unit or organization. Commanders must then use this unit-
    specific information to develop their approach to eliminate sexual
    violence from their ranks. To this end, leaders must employ targeted
    interventions, standards, and messaging to address issues unique to
    their unit climate.
        The 2013 DOD SAPR Strategic Plan tasks the Sexual Assault
    Prevention and Response Office (SAPRO), in conjunction with DEOMI, with
    ``assessing the extent to which the continuum of harm is or should be
    addressed in SAPR policy.'' Also, the 2014-2016 DOD Sexual Assault
    Prevention Strategy tasks SAPRO to evaluate prevention focus on the
    continuum of harm. This recognizes the connection between preventing
    sexual assault in terms of the continuum of harm such as sexist jokes,
    bullying, sexual harassment, hazing, excessive drinking, and stalking.
    The assessment will provide additional insight on DOD's approach to
    preventing sexual assaults.

        24. Senator Gillibrand. Secretary Woodson, two survivors of
    military sexual assault recently testified that they were diagnosed
    with PTSD as a result of their military sexual trauma, and that their
    medical treatment involved overmedication. We have also heard from many
    of our wounded warriors that they were overmedicated as part of their
    medical treatment. Do you believe that military doctors overuse
    medication in the treatment of PTSD, other mental health conditions,
    and for pain management?
        Dr. Woodson. There is little evidence to suggest that
    overmedication of the population of servicemembers is an ongoing
    problem. Our most recent analysis, in February 2014, of medications
    used for PTSD and other mental health conditions was very reassuring.
    The analysis suggests that less than 5 percent of servicemembers take
    antidepressants, less than 1 percent take anti-anxiety medication, and
    less than 0.5 percent take antipsychotic medication.
        Further, DOD has multiple programs and risk mitigation strategies
    in place to safeguard the therapeutic use of medication in the
    treatment of PTSD, other mental health conditions, and for pain
    management.
        The culmination of more than 10 years of war and advanced medical
    practices and medical evacuation has resulted in unprecedented combat
    injury survival rates. However, these factors have also contributed to
    significant emotional and physical challenges for many combat injured
    warfighters. Unfortunately, many of psychological and physical wounds
    of war are chronic conditions whose long-term treatment often requires
    both complicated pharmacotherapy and other supportive care. Scientific
    evidence that has accrued over the past several decades shows that
    appropriately selected and timed medications, or combinations of
    medications, can limit the severity and duration of mental illness,
    while medication to treat chronic physical conditions (e.g. chronic
    pain) is essential to the physical and emotional rigors of
    rehabilitation.
        DOD has undertaken several actions to mitigate the risk of adverse
    outcomes related to the prescribing of pharmaceuticals which include:

             The DOD Pharmacy Operations Division (POD) uses the
            Pharmacy Data Transaction Service (PDTS), an online centralized
            prescription data repository that automatically checks new
            prescriptions against the patient's computerized medication
            history for possible adverse events or therapeutic duplications
            before the new drug is dispensed. In addition, prescriptions
            filled at retail, mail order, and MTFs are also screened
            against theater prescriptions. PDTS provides a single,
            comprehensive patient drug profile for DOD beneficiaries and it
            permits DOD to monitor and conduct surveillance for drug usage
            patterns of concern. PDTS has helped to avoid more than 171,000
            potentially life-threatening drug interactions ensuring our
            patients receive medication that is safe and medically
            indicated.
             When a suspicion of patient drug-seeking behavior is a
            concern, the Sole Provider Program is available to providers in
            all Services. This program requires periodic reviews of all
            prescriptions for controlled substances, and seeks to identify
            suspicious patterns of drug use. Should patterns of drug use be
            validated or remain of concern, the issuance of prescriptions
            can be assigned to a single provider.
             Prescribing safeguards include guidelines in clinics
            that limit the number of pills dispensed to potentially high-
            risk patients, warning flags that appear in electronic drug
            dispensing menus which require physician attention, and the MTF
            prescription restriction program. We have also increased our
            reviews of the circumstances of manual overrides of system
            warning flags by physicians.
             Pharmacists throughout the MHS provide consumers with
            a medication information sheet on each new and renewed
            prescription. DOD evaluates for drug-drug interactions on every
            prescription filled at mail order, a retail pharmacy or MTF,
            ensuring our patients receive safe medications. Additionally,
            the Provider and Prescription Program is an integrated program
            between medical and pharmacy which focuses on utilization
            management of narcotics. Pharmacy identifies high utilizers of
            narcotics and refers these beneficiaries to their primary care
            medical provider or MTF. The medical contractor or MTF reviews
            the profiles to determine if the beneficiary has a medical
            condition that supports increase use of narcotics and offers
            the appropriate case management or pain management options. A
            PDTS warning flag was recently added to advise MTF providers
            and pharmacies of restricted patients.

        The misuse or abuse of prescription drugs is not consistent with
    military service and may be indicative of psychiatric conditions that
    require treatment. In order to identify personnel engaged in such
    activities all servicemembers are subject to random drug testing for
    both licit and illicit substances. Presence of drug metabolites in
    urine in the absence of a bona fide prescription or other evidence of
    therapeutic use (e.g. anesthesia) is grounds for punitive legal action.
    These actions involve due process for the servicemember and nearly
    always occur while treatment avenues are pursued. Additional measures
    are in place to mitigate risks that may be associated with abuse of
    prescribed medications:

             In November 2010, the Chairman of the Joint Chiefs of
            Staff sent a memorandum to the Under Secretary of Defense for
            Personnel and Readiness (USD(P&R)) describing the new drug
            threat to military personnel from prescription drug misuse and
            abuse. USD(P&R) concurred and moved forward with an initiative
            to add prescription drug monitoring to the panel of testable
            drugs within the Military Personnel Drug Abuse Testing Program.
             Drug testing has been expanded to identify nearly all
            prescription opiates and benzodiazepines. This is the single
            most important effort DOD has made in demand reduction for
            potentially dangerous medications.

        In addition to risk mitigation measures associated with
    prescription medication, DOD promulgates evidence-based care guidelines
    for pain management and mental health care. For example, the DOD-VA
    Clinical Practice Guideline, ``Management of Opioid Therapy for Chronic
    Pain'' (2010) describes the critical decision points in the management
    of opioid therapy for chronic pain and provides clear and comprehensive
    evidence-based recommendations incorporating current information and
    practices for practitioners throughout the DOD and VA Health Care
    systems (http://www.healthquality.va.gov/cot/). As psychotherapy is the
    preferred first-line method of providing mental health care, numerous
    working groups and Defense Centers of Excellence within DOD have been
    advancing provider training and research of proven psychotherapeutic
    techniques.
        There are several ongoing research studies addressing polypharmacy
    in the MHS. The 2013 Joint Forces Pharmacy Seminar (JFPS), Journal of
    the American Pharmacists Association, japha.org SEP/OCT 2013
    53:5, includes 18 studies that specifically address different aspects
    of polypharmacy in the MHS including improving the ability to monitor
    polypharmacy. Research findings are actively translated into
    recommendations for clinicians, including the use of effective
    medication assisted therapies. DOD-VA scientific and clinical working
    groups have revised and created Clinical Practice Guidelines (CPGs) for
    several psychiatric illnesses, including Major Depressive Disorder,
    Substance Use Disorders, and PTSD. The Assistant Secretary of Defense
    for Health Affairs (ASD(HA)) has published specific policy guidance
    addressing the safe practice of using medications during psychiatric
    treatment, provider training recommendations, and specific provider
    documentation and patient informed consent when prescribing
    psychotropic medication (Clinical Policy Guidance for Assessment and
    Treatment of PTSD, published August 2012); and policy guidance
    pertaining to the prescription of antipsychotic medication (Guidance
    for Providers Prescribing Atypical Antipsychotic Medication, http://
    www.health.mil/libraries/HA--Policies--and--Guidelines/12-003.pdf)

        25. Senator Gillibrand. Secretary Woodson, what has DOD done to
    determine whether military doctors are prescribing too many drugs to
    treat these conditions?
        Dr. Woodson. DOD has undertaken several actions to mitigate the
    risk of adverse outcomes related to the prescribing of pharmaceuticals:

             The PDTS, an online centralized prescription data
            repository that automatically checks new prescriptions against
            the patient's computerized medication history for possible
            adverse events or therapeutic duplications before the new drug
            is dispensed. In addition, prescriptions filled at retail, mail
            order, and MTFs are also screened against theater
            prescriptions. PDTS provides a single, comprehensive patient
            drug profile for DOD beneficiaries and it permits DOD to
            monitor and conduct surveillance for drug usage patterns of
            concern. PDTS has helped to avoid more than 171,000 potentially
            life-threatening drug interactions ensuring our patients
            receive medication that is safe and medically indicated.
             When a suspicion of patient drug-seeking behavior is a
            concern, the Sole Provider Program is available to providers in
            all Services. This program requires periodic reviews of all
            prescriptions for controlled substances, and seeks to identify
            suspicious patterns of drug use. Should patterns of drug use be
            validated or remain of concern, the issuance of prescriptions
            can be assigned to a single provider.
             Prescribing safeguards include guidelines in clinics
            that limit the number of pills dispensed to potentially high-
            risk patients, warning flags that appear in electronic drug
            dispensing menus which require physician attention, and the MTF
            prescription restriction program. We have also increased our
            reviews of the circumstances of manual overrides of system
            warning flags by physicians.
             Pharmacists throughout the MHS provide consumers with
            a medication information sheet on each new and renewed
            prescription. DOD evaluates for drug-drug interactions on every
            prescription filled at mail order, a retail pharmacy or MTF,
            ensuring our patients receive safe medications. Additionally,
            the Provider and Prescription Program is an integrated program
            between medical and pharmacy which focuses on utilization
            management of narcotics. Pharmacy identifies high utilizers of
            narcotics and refers these beneficiaries to their primary care
            medical provider or MTF. The medical contractor or MTF reviews
            the profiles to determine if the beneficiary has a medical
            condition that supports increased use of narcotics and offers
            the appropriate case management or pain management options. A
            PDTS warning flag was recently added to advise MTF providers
            and pharmacies of restricted patients.
             Peer review, part of our credentials verification and
            privileging process for individual providers in the MHS direct
            care system contains safeguards to ensure that individual
            prescribing practices meet the standard of care for safe and
            effective medical care the routine clinical quality monitoring
            performed by a peer in the same profession and clinical area of
            expertise as the provider under review.

        26. Senator Gillibrand. Secretary Wright, in December, the
    President instructed the Secretary of Defense and the Chairman of the
    Joint Chiefs ``to continue their efforts to make substantial
    improvements with respect to SAPR, including to the military justice
    system'' and to ``report back to [him] with a full-scale review of
    their progress by December 1, 2014.'' The President said that he would
    consider additional reforms if he didn't see sufficient progress. Have
    you been involved in developing plans to comply with the President's
    direction?
        Ms. Wright. Yes, I have been involved in the planning, and my SAPRO
    has been working with representatives from the Army, Air Force, Marine
    Corps, Navy, and National Guard to draft a report in accordance with
    the President's request. This report will focus on key initiatives on
    SAPR from December 2011 to September 2014, and will illustrate DOD's
    comprehensive approach to strategy, policy, and programmatic
    enhancements. Specifically, the report will contain quantitative and
    qualitative measures on both prevention and response efforts, to
    include results from surveys on command climate, workplace and gender
    relations, and survivor experience, as well as feedback from Service
    and National Guard focus groups across rank and gender at CONUS
    installations. This report is scheduled for delivery to the President
    by December 2014 and will offer examples of best practices, provide a
    review of the military justice system, and identify if other reforms
    are necessary.

        27. Senator Gillibrand. Secretary Wright, how does DOD propose to
    measure progress and evaluate success in preventing and responding to
    sexual assault in the military?
        Ms. Wright. The aim of DOD is to reduce, with the ultimate goal to
    eliminate, the crime of sexual assault from the Armed Forces. DOD is
    committed to preventing sexual assault in the military, and, if these
    crimes do occur, to providing victims the care and support they need to
    seek justice and heal from these traumatic events. Our biggest
    challenge in eliminating sexual assault from the Armed Forces is the
    underreporting of the crime. This affects our ability to provide care
    to the victim, as well as hinders our ability to prosecute the
    offender.
        DOD's objective is to establish the conditions within the military
    which lower sexual assault prevalence and increase reporting. DOD's
    goal is to reduce sexual assault prevalence while increasing the
    percentage of victims who report. DOD SAPRO identified two key
    overarching measures of effectiveness to assess the success of the SAPR
    program:

             Reduction in sexual assault prevalence as estimated in
            DOD-wide surveys (Defense Manpower Data Center Workplace and
            Gender Relations Surveys).
             Closing the gap between prevalence estimates and
            servicemember victims who report sexual assaults to
            authorities.

        DOD developed an initial set of metrics to assess the effectiveness
    of our programs in prevention, investigation, accountability, and
    victim assistance. The metrics include analysis of data trends and data
    snapshots. We will continue to refine and develop additional metrics in
    the future and report them transparently.
    Trends
             Metric 1--Reports of Sexual Assault
             Metric 2--Military Victim Reports Per 1,000
            Servicemembers
             Metric 3--Percentage of Sexual Assault Reports for
            Incidents Occurring Prior To Service
             Metric 4--Voluntary Conversions from Restricted to
            Unrestricted Reports
    Snapshots
             Metric 5--Investigation Length
             Metric 6--Full Time SAPR Personnel Certification

        Fiscal year 2013 data shows a 50 percent increase in victim reports
    of sexual assault when compared to fiscal year 2012. Historically,
    reports of sexual assault have increased about 5 percent per year since
    2006. We assess this unprecedented increase in reports as consistent
    with a growing level of confidence in our response system. This is
    supported by an additional metric--there are growing numbers of reports
    made by victims about incidents that took place prior to joining the
    military. These metrics provide indications that the wide range of SAPR
    initiatives are having a positive impact throughout the force, as more
    victims are reporting and accessing SAPR support.

        28. Senator Gillibrand. Secretary Woodson, in January 2013, GAO
    issued a report in which they found that ``military health care
    providers do not have a consistent understanding of their
    responsibilities in caring for sexual assault victims who make
    restricted reports of sexual assault. These inconsistencies can put
    DOD's restricted reporting option at risk, undermine DOD's efforts to
    address sexual assault issues, and erode servicemembers' confidence. As
    a consequence, sexual assault victims who want to keep their case
    confidential may be reluctant to seek medical care.'' What is DOD doing
    to ensure that health care providers understand their responsibilities
    to protect the confidentiality of victims who file a restricted report
    of sexual assault?
        Dr. Woodson. DOD released, DODI 6495.02 ``SAPR Program Procedures''
    on March 28, 2013. Enclosures 7, 8 and 10 outline a comprehensive,
    standardized policy for compassionate medical response to survivors of
    sexual assault, including a requirement that healthcare personnel
    receive appropriate training. This policy includes guidance for both
    restricted and unrestricted reporting and treating all sexual assault
    victims as priority emergencies.
        The ASD(HA) issued a memorandum to the Services on April 15, 2013,
    to notify the Services about the publication of the revised DOD
    Instruction. The memorandum noted the enhancements to guidelines for
    provision of health care support for survivors of sexual assault,
    including the restricted reporting process. The memorandum noted the
    standards for health care and training requirements for health care
    personnel who manage both acute and long-term care needs for victims of
    sexual assault and for providers who would conduct sexual assault
    forensic examinations (SAFEs). In that memorandum, the ASD(HA) also
    requested submission of an annual report to include information on the
    capability of each MTF to provide SAFEs, and information on agreements
    with local civilian providers in cases where there was not SAFE
    availability within the MTF. Finally, the ASD(HA) requested that the
    Services submit written plans with target dates for implementation to
    meet the requirements of the revised DOD Instruction.
        DOD received and reviewed the responses from the Services and
    determined that Service implementation plans already meet the
    requirements of the DODI and also include enhancements to their
    training programs for Service certification to perform SAFEs. The
    Services report that their training assures that all health care
    personnel are aware of restricted reporting requirements. These
    training programs also include Service-specific criteria for
    certification to perform SAFEs that are consistent with the guidelines
    set forth in the U.S. Department of Justice-National Protocol for
    Sexual Assault Medical Examinations for Adults and Adolescents. The
    Services noted that they are enhancing their training programs to
    include a wider variety of experiences in both care of the victim and
    courtroom testimony. This includes live examination experiences with
    standardized patients or volunteers and observation of mock trials.
        In an effort to provide the highest quality of care, the Services
    are continuously evaluating and updating training in this area. Each
    Service has either already updated its operational polices or will
    complete their current updates by the end of fiscal year 2014.
        We are monitoring completion of Service program implementation and
    issued an additional memorandum on March 27, 2014, that outlines all
    elements of the oversight plan and sets dates for submission of
    reports. This plan requires an annual update of SAFE provider coverage,
    training enhancements, and policy and procedure changes. Additionally,
    we monitor program performance on an ongoing basis throughout the year
    at the SAPR Integrated Program Team and the Health Affairs Women's
    Health Issues Working Group meetings, both of which address health care
    related to the response to sexual assault.

                               combat integration
        29. Senator Gillibrand. Secretary Wright, the Services are in the
    process of integrating women into ground combat roles in compliance
    with the 2013 DOD directive that opens all combat roles to women by
    January 1, 2016. This directive requires the Services to ensure that
    all physical standards are gender neutral. What are you doing in your
    role to ensure the Services are complying with this directive?
        Ms. Wright. Prior to providing Congress with notification of DOD's
    intent to open positions to women in previously closed occupations and
    units, I thoroughly review the documentation submitted by the Services,
    and U.S. Special Operations Command (SOCOM) where applicable, with
    particular focus towards compliance with Public Law 103-160, section
    543, which requires that qualification for, and continuance in,
    occupational career fields be evaluated on the basis of common,
    relevant performance standards and not on the basis of gender.
        The Services' and SOCOM's current efforts to review and validate
    their occupational standards are built upon science and experience to
    ensure we continue to maintain our high standards and preserve the
    quality of the All-Volunteer Force (AVF). Gender neutral application of
    occupational standards will enable us to select those best-qualified
    and may reduce non-combat-related injuries for both men and women.
        I am also staying apprised of the numerous ongoing studies of
    doctrine, organization, training, material, logistics, personnel, and
    facilities being led by the Services and SOCOM. In March 2014, members
    of my staff went to Fort Stewart, GA, to observe the Army's physical
    demands study for infantry and armor.
        Lastly, DOD has contracted with RAND to: (1) identify best-practice
    methods for development of physical standards; (2) assist me in
    reviewing the various methods the Services are using to validate their
    occupational standards; and (3) recommend adjustments that reflect
    those best-practice methods consistent with the Secretary's guidance.
        I will continue to stay engaged as the Services and SOCOM progress
    toward identified decision points when they will make final
    recommendations to open occupations and positions or request an
    exception to policy to keep a position or occupation closed. I will
    review any requests for exception prior to it being forwarded to the
    Secretary of Defense and the Chairman of the Joint Chiefs of Staff for
    approval.

        30. Senator Gillibrand. Secretary Wright, in particular, what are
    you doing to ensure that the Services are, in fact, producing gender
    neutral physical standards?
        Ms. Wright. Prior to providing Congress with notification of DOD's
    intent to open positions to women in previously closed occupations and
    units, I thoroughly review the documentation submitted by the Services,
    and SOCOM, where applicable, with particular focus towards compliance
    with Public Law 103-160, section 543, which requires that qualification
    for and continuance in occupational career fields is evaluated on the
    basis of a common, relevant performance standard and not on the basis
    of gender.
        The Services' and SOCOM's current efforts to review and validate
    their occupational standards are built upon science and experience to
    ensure we continue to maintain our high standards and preserve the
    quality of the AVF. Gender neutral application of occupational
    standards will enable us to select those best-qualified and may reduce
    non-combat-related injuries for both men and women.
        I am also staying apprised of the numerous ongoing studies of
    doctrine, organization, training, material, logistics, personnel, and
    facilities being led by the Services and SOCOM. In March 2014, members
    of my staff were present at Fort Stewart, GA, to observe the Army's
    physical demands study for infantry and armor.
        Lastly, DOD has contracted with RAND to: (1) identify best-practice
    methods for development of physical standards; (2) assist me in
    reviewing the various methods the services are using to validate their
    occupational standards; and (3) recommend adjustments that reflect
    those best-practice methods consistent with the Secretary's guidance.

        31. Senator Gillibrand. Secretary Wright, is DOD consulting with
    outside experts, including those in gender studies and sports
    physiology?
        Ms. Wright. Yes, each Service and SOCOM are working with various
    scientific and research agencies, both inside and external to DOD, to
    review and validate occupational standards to ensure they are current,
    operationally valid, and are applied on a gender-neutral basis.
        Additionally, each Service and SOCOM are conducting thorough
    studies and analyses of doctrine, organization, training, material,
    logistics, and facilities to ensure deliberate and responsible
    implementation. All study results will be used to inform final
    recommendations to the Chairman of the Joint Chiefs of Staff and the
    Secretary of Defense.

        32. Senator Gillibrand. Secretary Wright, according to a recent
    article in the Marine Corps Times, the Marine Corps is prepared to seek
    exceptions to the DOD directive. Is it DOD's goal to achieve 100
    percent integration of women?
        Ms. Wright. DOD's goal is to eliminate all remaining gender-based
    barriers to service and to allow servicemembers to serve in any
    capacity based on their ability and qualifications. It continues to be
    essential to mission effectiveness that every person is fully qualified
    to perform their occupation. Further, we owe it to all servicemembers
    to put them in positions where they have the highest probability of
    success. DOD is committed to removing all barriers that would prevent
    service men and women from rising to their highest potential, based on
    ability and not constrained by gender-restrictive policies.
        To that end, we are proceeding in a measured, deliberate, and
    responsible manner to open positions and occupations to women when and
    how it makes sense, while preserving unit readiness, cohesion, and the
    quality of the AVF.

        33. Senator Gillibrand. Secretary Wright, what reason would there
    be to prevent the most-qualified applicant from competing for a
    position regardless of gender?
        Ms. Wright. Any eventual recommendation to keep an occupational
    specialty or unit closed to women must be personally approved by both
    the Chairman of the Joint Chiefs of Staff and the Secretary of Defense.
    Exceptions must be narrowly tailored, and based on a rigorous analysis
    of factual data regarding the knowledge, skills, and abilities needed
    for the position. That being said, DOD is proceeding in a measured,
    deliberate, and responsible manner to implement changes that enable
    servicemembers to serve in any capacity based on their ability and
    qualifications, regardless of gender.

                                     cyber
        34. Senator Gillibrand. Secretary Wright, the National Commission
    on the Structure of the Air Force recently released their findings,
    which highlighted the importance of the National Guard and Reserve in
    the U.S. cyber mission. Specifically, it noted that the Guard and
    Reserve were uniquely positioned, because of their part-time status, to
    attract and retain the best and the brightest in the cyber field.
    Additionally, the NDAA for Fiscal Year 2014 directed DOD to look at the
    integration of the Guard in all its statuses into the cyber workforce.
    I have long agreed with this assessment, and introduced the Cyber
    Warrior Act which would establish National Guard cyber teams in each
    State to leverage this talent pool. What are your visions for the roles
    of both the Guard and Reserve in U.S. Cyber Command (CYBERCOM) and
    within the distinct Service cyber elements?
        Ms. Wright. I envision the Guard and Reserve will play a vital role
    in DOD's cyber mission by working through Military Services which can
    leverage the civilian skill sets of the Guard and Reserve. Moreover,
    the dual mission of the Guard and the complementary nature of
    reservists help address specific needs, fill gaps, and provide a surge
    capability within the Active component.
        The Guard and Reserve Force structure is determined by the needs of
    the Nation and is organized the same way as the Active-Duty Force
    structure. As DOD refines its cybersecurity requirements, develops the
    appropriate force structure, and addresses legal and functional issues
    concerning the use of the Guard and Reserve components for national
    cyber missions, it is clear that the Guard and Reserve will have a role
    to play. We continue to work closely with CYBERCOM and the Department
    of Homeland Security (DHS) as we determine how best to employ the
    Reserve component for this critical issue.

        35. Senator Gillibrand. Secretary Wright, I want to be helpful to
    DOD in recruiting the best talent and acquiring the best tools for our
    cyber mission. In your opinion, what can Congress do to assist DOD in
    this effort?
        Ms. Wright. At this time, DOD has a good array of tools for
    recruiting the best talent for our cyber mission.
        For civilian hires, DOD has available Schedule A hiring authority
    to recruit cyber talent. This affords leaders the opportunity to select
    qualified candidates without the extended recruitment period associated
    with traditional hiring authorities. The Office of Personnel Management
    (OPM) has extended DOD's Schedule A hiring authorities for CYBERCOM
    until December 31, 2014. Additionally, commanders and hiring officials
    can use traditional competitive hiring methods to announce positions on
    the OPM-hosted USAJOBS web site.
        For military accessions, section 533 of title 10, U.S. Code, was
    modified to allow the Military Services to award consecutive service
    credit to a person with cyberspace-related experienced or advanced
    education for purposes of determining the individual's grade upon
    initial appointment as an officer. This authority has been a helpful
    recruiting tool when applied to other career fields and, similarly,
    will help to increase the inventory of officers with special experience
    and training in cyberspace-related fields.

        36. Senator Gillibrand. Secretary Wright, what do you believe DOD
    needs in order to remain on the cutting edge of cyber defense?
        Ms. Wright. As DOD continues to build and provide trained and ready
    cyber teams, we will leverage expertise from the private sector, the
    Reserve component (Guard and Reserve), academia, other Federal agencies
    such as DHS, and our allies. This includes any additional authorities
    that may be necessary to achieve this objective. Some of my colleagues
    are working with you on this task.
        For military accessions, section 533 of title 10, U.S. Code, was
    recently modified (January 2014) to award commensurate service credit
    to a person with cyberspace-related experience or advanced education
    for purpose of determining the individual's grade upon appointment as
    an officer. This authority has been a helpful recruiting tool when
    applied to other career fields, similarly, will help to increase the
    inventory of officers with special experience or training in
    cyberspace-related fields.

        37. Senator Gillibrand. Secretary Wright, I've also heard about
    DOD's needs in terms of its civilian cyber workforce. What mechanisms
    are currently in place for civilian recruitment and retention?
        Ms. Wright. DOD has Schedule A Direct Hiring Authority available to
    recruit cyber talent. This affords the opportunity for leadership to
    select qualified candidates without the extended recruitment period
    associated with hiring authorities. OPM has extended DOD's hiring
    authority for CYBERCOM until December 31, 2014. Additionally,
    commanders and hiring officials can use traditional competitive hiring
    methods of announcing positions on the OPM-hosted USAJOBS web site.

        38. Senator Gillibrand. Secretary Wright, have you considered ways
    to leverage the talent pool of servicemembers who are retiring or
    leaving the military to encourage them to work as DOD civilian cyber
    experts?
        Ms. Wright. Yes, we have considered ways to leverage this talent
    pool. DOD hires veterans under the 30 Percent or More Disabled Veterans
    Program, Veterans Recruitment Appointment, and the Veterans Employment
    Opportunities Act of 1998. Veterans make up approximately 48 percent of
    the overall on-board DOD appropriated fund civilian workforce, and
    veterans made up 53 percent of new DOD hires in the first quarter of
    fiscal year 2014.

        39. Senator Gillibrand. Secretary Wright, do you have plans in
    place to compete with the private sector for this talent pool?
        Ms. Wright. Yes, we have plans in place. Service component
    personnel offices are using the authority to employ various methods and
    resources that are approved by OPM to recruit talent from the private
    sector by incentivizing employment with DOD. Incentives include hiring
    bonuses, superior qualifications, special salary pay, leave accrual,
    specialized training, the possibility of foreign overseas duty, and the
    job satisfaction derived from participation in operational missions.

        40. Senator Gillibrand. Secretary Wright, what additional
    authorities do you need in order to maintain a high-quality civilian
    cyber force?
        Ms. Wright. We believe that we have sufficient authorities to
    maintain a high-quality civilian cyber force. However, we appreciate
    the continued support of Congress and of OPM in permitting DOD to use
    the various direct/expedited hiring authorities and incentives that are
    necessary for DOD to be recognized as an employer of choice.

        41. Senator Gillibrand. Secretary Wright, I understand that DOD is
    preparing a Cyber Workforce Strategy under the direction of the Chief
    Information Officer. However, cyber security is not just an information
    technology problem. In today's work, everything from our thermostats to
    our water and electric supply is networked. The industrial control
    systems that engineers use to monitor and maintain DOD's assets are
    also at risk of cyber attack. Could you please update me on the status
    of the Cyber Workforce Strategy?
        Ms. Wright. DOD released its Cyberspace Workforce Strategy on May
    1, 2014. This document reflects key collaboration among the Offices of
    the Under Secretaries of Defense for Personnel and Readiness, Policy,
    and Intelligence, the Chief Information Officer, U.S. Strategic
    Command/CYBERCOM, and the Military Services, to include their
    associated Reserve components.

        42. Senator Gillibrand. Secretary Wright, what workforce elements
    does this strategy encompass?
        Ms. Wright. The strategy addresses the broad spectrum of the
    cyberspace workforce. The cyberspace workforce is comprised of
    personnel who acquire, build, secure, operate, defend, and protect DOD
    cyberspace resources, along with those that conduct related
    intelligence activities, and project power in or through cyberspace.

        43. Senator Gillibrand. Secretary Wright, are industrial control
    system engineers included in this strategy?
        Ms. Wright. Yes, the strategy applies to this functional category.
                                     ______

                  Questions Submitted by Senator Kay R. Hagan
      science, technology, engineering and mathematics civilian personnel
        44. Senator Hagan. Secretary Vollrath, in Section 1107 of the NDAA
    for Fiscal Year 2014, this committee provided DOD laboratory directors
    with a set of personnel management flexibilities that we expect will
    allow them to be more competitive in competing with the private sector,
    national laboratories, and universities for the highest quality and
    most innovative and productive scientists and engineers. What is the
    status of the implementation of these authorities and the delegation of
    the flexibilities to the laboratory directors? Please provide the
    committee with a timeline for the delegation of these flexibilities to
    the laboratory directors, as was the intent of the statute.
        Mr. Vollrath. Section 1107 of the NDAA for Fiscal Year 2014
    authorized Scientific and Technical Reinvention Laboratory (STRL)
    directors to appoint both qualified candidates possessing a bachelor's
    degree and qualified veteran candidates, to covered positions as
    defined in section 1107, and established senior scientific technical
    manager positions classified above GS-15 of the General Schedule in
    each STRL. A Federal Register Notice (FRN) to implement these
    authorities is in final coordination. The estimated publication date is
    early summer 2014. Once published, STRL directors will be able to
    execute these flexibilities.

                        workforce quality and diversity
        45. Senator Hagan. Secretary Vollrath, what new initiatives are you
    developing to enhance the quality and diversity of the DOD science,
    technology, engineering and mathematics (STEM) workforce?
        Mr. Vollrath. Enhancing the quality and diversity of DOD's STEM
    workforce is important to DOD and aligns with the administration's
    Federal 5-Year STEM Education Strategic Plan. (http://
    www.whitehouse.gov/sites/default/files/microsites/ostp/stem--
    stratplan--2013.pdf).
        To develop and promote a highly competent and diverse STEM
    workforce, DOD manages multiple programs offering internship
    opportunities from high school through graduate school and beyond.
    These programs provide students with meaningful education, training,
    and career development opportunities, with particular emphasis on
    developing potential candidates for STEM positions in many different
    fields. Programs include, but are not limited to, the Science,
    Mathematics, and Research for Transformation (SMART) scholarship
    program, DOD Centralized Apprenticeship Program (DCAP), Student
    Training and Academic Recruitment (STAR) Program, and the Pathways
    Programs.
        The DOD Science and Technology Reinvention Laboratory Demonstration
    projects are currently using numerous human resources flexibilities to
    attract, recruit, and retain a highly-skilled and diverse workforce by
    providing competitive salary offers through the use of pay banding, and
    rewarding high performers through contribution-based and pay-for-
    performance programs. Laboratory demonstration projects have access to
    Federal Government hiring processes, and are experimenting with
    numerous flexibilities to attract, hire, and retain scientists and
    engineers. These flexibilities include Expedited Hiring Authority,
    Direct Hire Authority, and the use of interns.
        Additionally, as an overarching framework to ensure workforce
    quality and diversity, DOD has implemented a comprehensive and
    strategic Diversity and Inclusion Plan to encourage and integrate
    diversity and inclusion in our enterprise-level human resources
    strategies. We have identified specific actions to establish/expand
    strategic relationships with key stakeholders, including those focused
    on STEM initiatives. Additionally, the laboratories have entered into
    partnerships with numerous minority serving institutions of higher
    education in a proactive effort to enhance the candidate pool with
    applicants from diverse backgrounds.

        46. Senator Hagan. Secretary Vollrath, are there specific actions
    the committee can take to support you in these efforts?
        Mr. Vollrath. We would appreciate your continued support for human
    resource flexibilities, such as the direct hiring authorities
    authorized in the NDAA for Fiscal Year 2014, that enable the Department
    to attract, recruit, and retain a highly qualified STEM workforce.
                               education programs
        47. Senator Hagan. Secretary Vollrath, what specific initiatives
    have you undertaken to improve the access of our military children in
    public schools and DOD-run schools to innovative STEM education
    opportunities and high quality programs?
        Mr. Vollrath. The Department of Defense Education Activity (DODEA)
    is implementing a four-pronged strategy to improve access to STEM
    education opportunities in DOD-run schools: (1) DODEA is increasing
    opportunities for students to take rigorous science and mathematics
    courses as part of regular coursework, and in programs that extend
    beyond the traditional school day or year; (2) DODEA is developing
    sustainable partnerships that engage STEM professionals employed in
    school-based and afterschool activities to leverage their expertise;
    (3) DODEA is investing in teachers through rigorous sustainable
    professional development in STEM education and application of 21st
    century teaching methods; and (4) DODEA is providing resources to
    military-connected public schools through a competitive grant program
    designed to support STEM educational opportunities.

        48. Senator Hagan. Secretary Vollrath, what new initiatives or
    expanded efforts are being proposed with this budget request for the
    committee to consider?
        Mr. Vollrath. The DODEA recognizes that a quality STEM education is
    based on standards that are rich in content and practice and teacher
    preparation and development. To move in this direction and expand our
    efforts in STEM, DODEA has adopted the Common Core State Standards for
    mathematics (CCSSM) and plans to adopt Next Generation Science
    Standards (NGSS). However, implementation of the CCSSM and NGSS will
    require major shifts in instructional practices. The required changes
    may challenge many teachers due to limited STEM content knowledge,
    pedagogical experiences, and/or confidence in conducting hands-on
    projects.
        To meet this challenge, DODEA is funding a summer STEM professional
    development program with the U.S. Naval Academy. Starting this summer,
    80 DODEA teachers will be offered the following courses to enhance
    their competence in teaching STEM: Basics of Engineering Design; Basics
    of Automation; Discrete Mathematics; World of Engineering; World of
    Chemistry; World of Earth Science; and World of Life Science.

        49. Senator Hagan. Secretary Vollrath, what can this committee do
    to support efforts to improve the quality of STEM education being
    provided to military children?
        Mr. Vollrath. DOD operations and national security depend on having
    a diverse STEM-literate talent pool. With that in mind, DOD recognizes
    that competency in science and mathematics, including awareness of
    engineering careers, gained in grades K-12, forms the foundation of an
    educated, capable, and technical future workforce. Congressional focus
    has enabled DOD's efforts and progress to date.
        With the support of Congress, DOD will endeavor to:

             Prioritize the staffing and funding of DOD STEM
            initiatives.
             Expand the capacity and diversity of the STEM
            workforce by promoting the inclusion of underrepresented
            minorities and women in STEM fields as well as STEM educator
            professions.
             Emphasize partnerships between DOD STEM professionals
            and the DODEA.
             Create opportunities for classroom teachers to work
            directly with STEM professionals through internships and
            participation in field experiences and STEM-related research.
             Utilize STEM professionals to aid in the development
            of curricular resources to support STEM.
                                     ______

               Questions Submitted by Senator Richard Blumenthal
     department of defense and department of veterans affairs collaboration
        50. Senator Blumenthal. Secretary Wright and Secretary Woodson,
    although there seems to be some agreement on what a shared or
    interoperable electronic medical record should look like, there still
    is not one in practice. I understand that one of the challenges to
    achieving that goal is the inability of the VA to access the Service
    Treatment Record (STR) in a timely manner. What actions are being taken
    to improve the disability evaluation timeline?
        Ms. Wright and Dr. Woodson. As of January 1, 2014, DOD successfully
    implemented the capability to digitize and electronically archive
    complete certified STRs in standard formats and to make those STRs
    electronically available to approved STR consumers, such as the
    Veterans Benefits Administration (VBA), upon a servicemember's
    separation or discharge.
        The DOD STR, which captures a static record of a servicemember's
    medical history from his or her period of military service, is
    instrumental in providing the healthcare evidence the VBA requires to
    establish a Service connection for a disability claim. Today, when a
    VBA claims adjudicator initiates a disability benefits claim on behalf
    of a newly separated servicemember within VA's automated claims
    processing system--the Veterans Benefits Management System (VBMS)--an
    automated request is sent through a secure interface to the DOD's
    Health Artifact and Image Management Solution (HAIMS) to query and
    electronically retrieve the required STR from the HAIMS repository. DOD
    intends to submit a report to Congress on the interoperability
    capability established as required by section 713(j) of the NDAA for
    Fiscal Year 2014 (P.L. 113-66).
        DOD is taking a number of actions to improve timeliness. First, DOD
    is maintaining an increased Integrated Disability Evaluation System
    (IDES) staff presence (127 percent increase since 2010) to ensure that
    sufficient administrative case managers (Physical Evaluation Board
    Liaison Officers) are available to manage case load. Additionally, each
    Military Department is augmenting personnel required to conduct Medical
    and Physical Evaluation Boards. The Army has 21 Reserve component
    servicemembers working with the VA Disability Rating Activity Site in
    Seattle to assist in the development of IDES case files, which helps VA
    reduce the inventory of soldiers awaiting a proposed disability rating.
    DOD regularly provides VA with servicemember separation documents to
    help expedite the determination of final disability ratings (over
    13,000 since May 2013). Finally, DOD is in the process of implementing
    a Quality Assurance Plan, that will ensure accuracy and consistency,
    therefore reducing the amount of redundant work on case adjudication
    and improving timeliness.
        These efforts are reducing the benefits gap between military
    service pay and disability compensation from 240 to 51 days, and
    improving DOD-specific process timeliness to 97 days against a 105-day
    goal. Furthermore, in our most recent survey, 83 percent of
    servicemembers indicated they were satisfied with the IDES process.

        51. Senator Blumenthal. Secretary Wright and Secretary Woodson,
    does the Health Insurance Portability and Accountability Act (HIPAA)
    create unintended challenges to information being passed and reviewed
    by the VA to facilitate claims?
        Ms. Wright and Dr. Woodson. HIPAA provides for DOD to release to VA
    information on separating servicemembers for purposes of benefits
    determination. However, it also restricts the ability of a covered
    entity, such as the MHS, to release information to a non-covered
    entity, such as VBA, to only the minimum necessary to perform the
    function, and to disallow access to information of any other non-
    separating person whose information is also in the database.
        It is also well understood at DOD that direct access to the
    pertinent databases, such as for example AHLTA, vastly improve the
    response time for VBA to make the necessary benefits determinations.
    Under HIPAA, we are not permitted to merely allow VBA unrestricted,
    direct access to the databases, because of the opportunity for
    accessing information of others who are not separating.
        The Defense Health Agency Privacy and Civil Liberties Office has
    been informed that the Joint Legacy Viewer (JLV) will be configured to
    permit the VBA to only access names entered onto a Master File Index,
    and these names are the appropriate individuals for the benefits
    determination process. Therefore, although this has been a challenge
    for HIPAA compliance and data sharing between DOD and VBA, we believe
    that a solution is possible.

        52. Senator Blumenthal. Secretary Wright and Secretary Woodson, I
    understand that DOD is continuing to partner with the VA to improve
    near-term interoperability. The Janus JLV has been deployed at seven
    different locations around the Nation in order to ascertain
    compatibility between the two systems. How can we get such a system in
    operation in Connecticut in order to expedite the processing of claims
    for our deserving veterans?
        Ms. Wright and Dr. Woodson. In 2013, DOD and VA deployed Janus JLV
    to a limited number of users at seven sites, which includes the five VA
    Polytrauma Rehabilitation Centers and two DOD MTFs. They later expanded
    use of JLV at two sites in Anchorage, Alaska: Joint Base Elmendorf-
    Richardson Hospital and the Alaska VA Health Care System.
        There are plans to expand JLV to 3,500 users by the end of this
    year. The approximate 1,000 JLV accounts in DOD will allow DOD
    clinicians to be able to view DOD and VA health care data to enhance
    health care delivery.
        VA will need to determine the split of the approximately 2,500 JLV
    users between the VBA and Veterans Health Administration, and which
    specific individuals at certain sites will be granted access to JLV.

                     workforce requirements and shortfalls
        53. Senator Blumenthal. Secretary Wright and Secretary Vollrath, in
    light of the fiscal year 2015 budget proposal, we will likely see cuts
    in the size of our military. As we undertake various efforts to
    downsize, DOD will be returning thousands of capable veterans to the
    civilian workforce. While transition-assistance programs are provided
    by each Service and made available to military personnel awaiting
    discharge, I understand that these programs focus on general workforce
    skills such as resume-writing, professional dress, and interview
    processes. Upon discharge, military servicemen and women tend to either
    stay in place or return to their original home of record. However, in
    today's more mobile economy, it may make better sense for the veteran
    to consider a different location--an industrial cluster more
    accommodating to the years of experience they have gained from their
    years in service. For instance, a helicopter mechanic with 8 years of
    experience working aboard an Army base who is seeking to leave Active
    Duty might be especially suited for work at Sikorsky. What mechanisms
    are in place to direct or target specific occupational specialties
    (such as avionics or intelligence) to existing industrial clusters?
        Ms. Wright and Mr. Vollrath. DOD agrees that it makes better sense
    for transitioning servicemembers and veterans to focus as much on
    different geographic locations when deciding whether to relocate after
    separation or retirement, and more on industrial clusters based on the
    years of experience they have gained from their military service. The
    Transition Goals, Plans, and Success (GPS) curriculum provides our
    veterans and transitioning servicemembers with the skills, resources
    and tools to make such an informed career decision.
        DOD, in collaboration with the VA, DHS, OPM, and the Departments of
    Labor, Education, and the U.S. Small Business Administration,
    redesigned the Transition Assistance Program (TAP) to better meet the
    needs of today's transitioning servicemembers. The bedrock of the
    redesigned TAP requires servicemembers to meet certain Career Readiness
    Standards (CRS).
        CRS are a set of common and specific activities and associated
    deliverables that must be achieved to demonstrate appropriate
    preparation by servicemembers to transition effectively and pursue
    their personal post-separation goals in higher education, career
    technical training, or civilian employment. One element of the
    Transition GPS curricula is a process for servicemembers to identify
    personal interests and leanings that enable transitioning
    servicemembers to make informed career decisions.
        This also allows transitioning servicemembers to target specific
    occupational specialties (such as avionics, automotive, computer
    technician) and search for jobs within those existing industrial
    clusters nation-wide, by region, State, or zip code.
        During TAP, servicemembers can identify where the jobs they desire
    are located geographically, as well as identify which industries or
    career fields show future growth, status-quo, or decline. This enables
    the transitioning servicemember and his/her family to make an informed
    post-military employment decision to remain where they currently are
    located, return to their home of record, or choose an entirely
    different geographic location based on the most viable and robust
    employment opportunities.
        This information is reinforced when servicemembers attend the
    Department of Labor Employment Workshop (DOLEW). The DOLEW curriculum
    instructs participants on conducting Labor Market Information (LMI)
    research on Department of Labor's American Job Center (AJC) web site
    and Careerinfonet.org. Careerinfonet.org contains online tools for
    detailed research on occupational trends such as fastest growing, most
    openings, and highest paying. The new DOLEW curriculum is far more
    robust and interactive than the previous curriculum. Although
    servicemembers may produce a general resume at the conclusion of the
    DOLEW, the Department of Labor stresses that all resumes should be
    tailored to the specific job announcement.
        On April 23, 2014, the First Lady announced the administration's
    authoritative site for employers and veterans, ebenefits.va.gov. This
    site builds on the President's Veterans Job Bank and creates a resume
    bank which will be used by Active-Duty servicemembers, transitioning
    servicemembers, veterans (from all eras), and eligible family members
    seeking employment opportunities.

        54. Senator Blumenthal. Secretary Wright and Secretary Vollrath,
    how will DOD coordinate with VA and what will be the priorities as we
    continue the expected reductions in end strength?
        Ms. Wright and Mr. Vollrath. As part of DOD's ongoing efforts to
    ensure a successful transition from military to civilian life for
    separating servicemembers, DOD collaborates with VA through a number of
    formalized efforts. DOD and VA, in collaboration with our interagency
    partners from the Departments of Labor, Education, Homeland Security
    (Coast Guard), the U.S. Small Business Administration, and OPM
    established a permanent governance structure for the TAP as of October
    1, 2013. The structure, Executive Council and Senior Steering Group, is
    comprised of senior representatives from each interagency that oversee
    the TAP redesign. These agencies provide transition assistance to all
    eligible transitioning servicemembers, to include those affected by
    force shaping and reductions in end strength. The governance allows for
    transparency, efficiency, and effectiveness within the TAP through the
    collaboration and commitment of all the Federal agencies. It provides
    direct contact with all stakeholders to determine priorities to ensure
    we meet the needs of our transitioning servicemembers and future
    veterans.
        Priorities for fiscal year 2014 include the following:

             Monitoring fiscal year 2014 end strength reductions
            and ensuring appropriate resources are made available to
            installations to provide the redesigned TAP and implement
            Transition GPS
             Establishing a baseline for servicemembers to meet CRS
             Implementation of the Military Life Cycle
             Strategic Communications

        Additionally, DOD has been assisting VA with its benefits claims
    backlog by ensuring medical record information it needs to process
    disability claims is provided in a expeditious manner. We will continue
    to seek ways to make this information available to VA in an electronic
    format, rapidly and accurately.

        55. Senator Blumenthal. Secretary Wright and Secretary Vollrath,
    how does DOD plan on ensuring that every servicemember received
    training, education, and credentials needed to successfully transition
    to the civilian workforce?
        Ms. Wright and Mr. Vollrath. DOD is working several initiatives
    along these lines. The Services are conducting pilot programs in the
    occupational areas of: aircraft mechanic, automotive mechanic, health
    care support, logistics and supply, truck driver, machinist, and
    information technology. These pilots represent the combined efforts of
    organizations from across the Federal Government, State governments,
    industry, education, and trade associations to credit servicemembers
    for skills they earned throughout their military careers. Currently,
    3,500 servicemembers from 57 military occupational codes are enrolled
    in all pilots.
        Also, this year DOD is conducting a more in-depth analysis of
    combat arms occupational areas and how the associated skills might
    better transfer to civilian workforce requirements. Section 551 of NDAA
    for Fiscal Year 2012 allows eligible members of the Armed Forces to
    participate in job training and employment skills training within 180
    days of separation from military service. Under this authority, several
    employers are establishing job skills training programs at military
    instillations.
        We are also launching a Twitter-based application called ``DOD
    Skillbridge.'' This application will be used by the private sector to
    announce job skills training opportunities for separating
    servicemembers on their personal mobile devices and will allow our
    troops to make their preferences known to industry and search
    previously announced with regard to job opportunities.
        Finally, section 542 of NDAA for Fiscal Year 2014 requires the
    Services to make available information about credentialing and the
    cross-walk of Military Occupational Codes (MOC) to civilian skills to
    members of the Armed Forces at every stage of training. The Services
    are currently working to implement these requirements.
        As a means of ensuring that servicemembers can match up their
    qualifications with credentialing programs, the Services are expanding
    their Credentialing On-Line (COOL) web sites to increase servicemember
    access and credentialing information. The Army and Navy have been
    operating COOL sites for years. The Air Force instituted its own COOL
    program that is expected to be online by October 1, 2014, and the
    Marine Corps is in the process of initiating its COOL program through
    the Navy. COOL maps every MOC to its related civilian credentials.
    Detailed analysis of the gaps between military training and civilian
    credentials requirements are provided for most MOCs. COOL sites also
    link to credentialing exam resources. State licensing, which is based
    upon a national certification exam such as Emergency Medical
    Technician, is also included on COOL and there are links to the
    Department of Labor for information on other State licenses available.
                                     ______

                    Questions Submitted by Senator Tim Kaine
                  department of defense unemployment insurance
        56. Senator Kaine. Secretary Hale and Secretary Wright, on
    Thursday, March 27, the Commandant of the Marine Corps, General James
    Amos, mentioned at a Senate Armed Services Committee hearing that the
    Marine Corps paid approximately $152 million in unemployment insurance
    last year. According to the Congressional Research Service (CRS),
    between fiscal year 2001 and fiscal year 2012, a total of $9.663
    billion in unemployment insurance benefits were paid to former
    servicemembers. On average, how much does DOD spend in unemployment
    insurance annually? How is this allocated among the Services, and what
    is the estimated expenditure per servicemember?
        Mr. Hale and Ms. Wright. The table below depicts DOD's expenditures
    for Unemployment Compensation for Ex-servicemembers (UCX) over the last
    10 fiscal years. It also includes the total average annual expenditure
    for DOD as well as for each of the Services over the same period.
    Because there is such wide variance in how States maintain and supply
    data to DOD on unemployment claims by ex-servicemembers, it is not
    currently possible to provide the average expenditure per member.
    Furthermore, there is a significant variation by State in the number of
    ex-servicemembers receiving unemployment benefits, the number of weeks
    ex-servicemembers are entitled to and receive benefits, and the maximum
    weekly benefit amount paid, which add additional levels of complexity
    to analyzing these expenditures. Past expenditures may not be
    reflective of the future given the anticipated increase in separations
    due to the reduction in strength.

     [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        57. Senator Kaine. Secretary Hale and Secretary Wright, a recent
    DOD report on the pilot program on civilian credentialing found that
    the attainment of civilian credentials benefits both the armed services
    and the servicemember, with minimal implementation costs (averaging
    $285 per participant). How does the amount of funds spent on
    unemployment insurance per servicemember compare to the amount of funds
    spent on tuition assistance per servicemember? How does the amount of
    funds spent on unemployment insurance per servicemember compare with
    credentialing efforts per servicemember?
        Mr. Hale. Civilian credentialing, tuition assistance, and UCX are
    three distinct programs for different purposes.

             Obtaining a civilian credential while on Active Duty
            can improve the member's skill set, but military specialties
            often have inherent skills and responsibilities not required in
            the civilian sector. However, civilian credentialing is
            recognized outside the military, and if obtained, it can be a
            significant asset to the member's employment prospects after
            military service. The $285 cost per participant in the DOD
            pilot program is misleading as it includes only direct costs;
            it does not incorporate preparatory costs such as education and
            training fees, management and operational costs (e.g., the
            personnel costs to DOD to conduct the pilot), nor living
            expenses.
             The primary purpose of tuition assistance is to enable
            military members to take educational courses towards a degree.
            The member directly benefits from the additional education, but
            DOD also benefits as individual readiness is enhanced and
            retention is bolstered. Military members primarily use tuition
            assistance after duty hours, so time away is minimal.
             The purpose of UCX is to assist former servicemembers
            while they seek employment. UCX costs vary greatly depending on
            job availability, the State the ex-servicemember files his/her
            claim, and the former member's qualifications, to name a few.
            Therefore, comparing the costs of the three programs can be
            misleading.

        In fiscal year 2013, DOD paid $780 million in unemployment
    compensation benefits to ex-servicemembers. Because there is such wide
    variance in how States maintain and supply data to DOD on unemployment
    claims by ex-servicemembers, it is not currently possible to provide
    the average expenditure per member. Furthermore, there is a significant
    variation by State in the number of ex-servicemembers receiving
    unemployment benefits, the number of weeks ex-servicemembers are
    entitled to and receive benefits, and the maximum weekly benefit amount
    paid, which adds additional levels of complexity to analyzing these
    expenditures. The most reliable estimate is found in an August 2013
    study by the Center for Naval Analyses, the ``21st Century Sailor and
    Marine: Demographic Profile of Transitioning Sailors.'' The Center for
    Naval Analyses concluded that the 2011 the average was approximately
    $5,000 per ex-servicemember.
        Tuition assistance is an invaluable program used extensively by
    Active Duty personnel. Tuition assistance is one of many options
    available to servicemembers to further their education. In fiscal year
    2013, tuition assistance totaled $540,448,557 for 277,872 Active
    component servicemembers (average: $1,945 per servicemember). A profile
    of a typical active servicemember utilizing tuition assistance: he/she
    takes 3 courses per year while working full time; attend multiple
    institutions; have breaks in their program due to deployments and duty
    assignment changes; take 7 years to earn an associate's degree; 79
    percent take some on-line courses; and they do not immediately seek
    employment after earning a degree.
        Ms. Wright. Civilian credentialing programs, tuition assistance,
    and even UCX are all benefits that assist military personnel in their
    transition from military to civilian life. These programs can
    complement one another, but they are designed for very distinct
    purposes and are not necessarily interchangeable. How they are employed
    often is predicated on the individual circumstance of an individual
    servicemember or veteran and thus, cost comparisons can be misleading.
        Civilian credentialing, as the DOD pilot program has shown, can be
    a significant asset to a transitioning member. With the civilian
    credential in hand, a military member is able to demonstrate to a
    potential civilian employer that his or her military skills in a given
    trade directly translate to ones that are instantly recognized and
    accepted outside the military. At an average cost of $285 per pilot
    program participant, civilian credentialing appears to be very cost
    effective, although it must be acknowledged that this average cost
    figure includes only the direct cost of the program. It does not
    incorporate preparatory costs such as education and training fees,
    management and operational costs (e.g., the personnel costs to DOD to
    conduct the pilot), or living expenses.
        Tuition assistance is an invaluable program used extensively by
    members who are furthering their education/training or pursuing a
    degree. In fiscal year 2013, tuition assistance costs totaled $540
    million for 277,872 Active component members, at the average cost of
    $1,945 per member. For servicemembers whose desire upon leaving the
    military is to enter a different career field or move up the ladder
    into a white collar or professional job, tuition assistance is an
    excellent, proven means for them to accomplish these kinds of goals.
    Tuition assistance is often the means by which a member is able to
    achieve the end state of a Bachelor's degree and a civilian credential,
    such as a teacher's license. While tuition assistance does, on average,
    carry a higher cost per participant than the civilian credentialing
    pilot program, it clearly can result in a much greater benefit to the
    transitioning member who leaves the military with a college degree and
    the greater earning potential that degree represents.
        Civilian credentialing and tuition assistance are benefits
    available to personnel during their military service; UCX, on the other
    hand, is meant to be used once a member leaves the military and
    relocates to a civilian community. Its purpose is to provide some
    financial assistance to former members while they seek employment. In
    fiscal year 2013, DOD paid out $780 million to reimburse States for the
    unemployment compensation benefits paid to former members. Due to the
    wide variance in how States maintain data on unemployment claims, it is
    not currently possible to provide the average expenditure per member.
    However, there is an August 2013 study by the Center for Naval Analyses
    (the ``21st Century Sailor and Marine: Demographic Profile of
    Transitioning Sailors'') that estimated the 2011 average UCX cost at
    approximately $5,000 per year per ex-sailor. Circumstances vary greatly
    as to why a former member may need the financial help UCX offers. It
    could be that a member utilizes UCX for a short period while he or she
    completes his or her job search, or a member may need UCX for a longer
    period due to the particular economic conditions in a specific
    community (e.g., an unemployment rate that is much higher than the
    national average). A member with a family to support may be more apt to
    apply for UCX than a single member. No matter what those individual
    circumstances may be for eligible individuals, UCX provides a valuable
    benefit to veterans as they transition to civilian life.
        In conclusion, civilian credentialing, tuition assistance, and UCX
    are benefit programs for current or former military members that often
    complement one another, but do not necessarily substitute for each
    other. To the extent data comparing the average cost per participant is
    available, it has been provided above; however, care should be taken to
    avoid misinterpreting the data or drawing any conclusion that more
    investment in one program will lead to reduced cost in another.
                                     ______

                 Questions Submitted by Senator Lindsey Graham
                          defense commissary subsidies
        58. Senator Graham. Secretary Hale, did the administration consider
    the full impact of decreased commissary subsidies on the purchasing
    power of young military families who can least afford higher grocery
    bills?
        Mr. Hale. DOD considered the Quadrennial Review of Military
    Compensation report, which indicates the buying power of enlisted
    members is like that of their civilian counterparts, in deciding to
    decrease commissary subsidies. DOD intends to direct the remaining
    subsidies to cover the extra costs associated with operating
    commissaries overseas so commissary prices for troops stationed
    overseas will be comparable to stateside commissary prices. If Cost-of-
    Living Allowance reports indicate shortfalls for personnel stationed
    overseas, DOD can address the shortfalls.

        59. Senator Graham. Secretary Wright, with lower commissary
    savings, shoppers may choose to get their groceries in local civilian
    grocery stores. This kind of change in shopping behavior can also
    affect foot traffic at military exchanges whose sales greatly benefit
    the morale, welfare, and recreation (MWR) activities on military bases.
    How much will foot traffic decrease in the military exchange system if
    fewer beneficiaries choose to shop in commissaries?
        Ms. Wright. Although difficult to quantify at this point, we do
    expect there will be a decrease in foot traffic at the military
    exchange main stores and other facilities if fewer beneficiaries choose
    to shop in the commissaries.

        60. Senator Graham. Secretary Hale, how will DOD make up the lost
    funds generated by exchange sales that support critical MWR activities?
        Mr. Hale. The proposed commissary changes would not begin to be
    phased in until fiscal year 2015, so DOD does not expect any impact on
    exchange sales at least until then. DOD is seeking to quantify the
    expected impact of these changes on the shopping patterns of customers
    in the commissaries and exchanges, and the extent to which they can be
    offset by other changes like the introduction of non-branded items sold
    at lower prices. DOD will continue to actively engage the three
    Exchange Boards of Directors to ensure commissaries and exchanges are
    attractive shopping options, producing the exchange dividends that
    continue to help support important MWR activities.

        61. Senator Graham. Secretary Wright, what will be the impact of
    reduced sales on commissary and exchange employees--many of whom are
    military spouses and retirees?
        Ms. Wright. The commissaries and exchanges will monitor their sales
    and make appropriate business decisions. They may have to adjust
    operating hours and employee work schedules. DOD values our employees,
    many of who are military spouses and retirees, and every effort will be
    made to minimize the impact.

        62. Senator Graham. Secretary Wright, under a new funding plan, do
    you believe that some commissaries will eventually close if their sales
    volumes diminish so much that they cannot cover their expenses?
        Ms. Wright. Commissaries considered remote and isolated will remain
    open to support areas where access to a commercial grocery store is
    limited, as will overseas commissaries. There are no plans to close any
    commissaries in the United States. Customer usage will determine
    whether or not any commissaries close in the United States. Savings
    currently average 30.5 percent and will decrease. The projected savings
    will fluctuate as they do in the commercial sector but we believe they
    will be substantial enough to retain customers.
        We take the commissary benefit seriously, and we are trying to
    mitigate the effects of any changes that may impact our servicemembers
    and their families.

        63. Senator Graham. Secretary Wright, how will the families of
    servicemembers who qualify for the Supplemental Nutrition Assistance
    Program (SNAP) or the Women, Infants and Children (WIC) nutrition
    program be impacted by higher commissary prices that will result from
    lower subsidies?
        Ms. Wright. Commissaries will have to recover costs which will
    decrease customer savings. The savings to servicemembers participating
    in the SNAP and WIC programs will also decrease. Consequently,
    servicemembers participating in the SNAP and WIC programs who shop in
    commissaries will not receive as much in value as they do presently;
    however, they should still receive more value than their civilian
    counterparts who shop in commercial grocery stores.

            unified medical program fiscal year 2015 budget request
        64. Senator Graham. Secretary Hale, in the DOD medical budget
    request, there is $122 million added for expected TRS participation due
    to Obamacare mandates and increases expected from the Supreme Court
    ruling on the Defense of Marriage Act (DOMA). When did DOD realize that
    Obamacare mandates would increase DOD health care costs?
        Mr. Hale. DOD routinely tracks TRS users and costs, so we are able
    to identify changes in this program on a monthly and yearly basis. We
    speculated that the ACA, and specifically the individual mandate
    provision, as well as the DOMA could drive an increase in users and
    costs. We did experience a modest increase in TRS participation in
    fiscal years 2012 and 2013, although we cannot specifically attribute
    that to ACA or DOMA. However, based upon this increasing participation,
    we felt it prudent to request reasonable additional funding for the
    program beginning in fiscal year 2015. We will track participation and
    costs and make appropriate adjustments based upon actual experience.

        65. Senator Graham. Secretary Woodson, the DOD budget request
    assumes almost $92 million in savings from health system modernization.
    We know there is an effort underway to downsize some military hospitals
    and shift beneficiaries' medical care to the private sector. Can you
    explain how that would work and how you get that much savings so
    quickly?
        Dr. Woodson. Our analysis showed that several of our legacy
    inpatient facilities are significantly underutilized and this lack of
    workload put our military medical providers' currency and skills at
    risk. We devised a plan to move these military providers to markets
    that would provide more opportunity for them to practice their
    specialty, an absolute necessity if they are to be prepared to meet
    wartime medical requirements. Although we proposed these moves
    primarily to maintain the readiness skills of our providers, a
    corollary benefit is that they will see more patients within the MTFs,
    so we will not have to pay those costs in the private sector. This will
    generate the projected savings.

        66. Senator Graham. Secretary Woodson, do you plan to brief
    Congress before you downsize military hospitals?
        Dr. Woodson. Yes. Meetings were held with House and Senate Armed
    Services Committees staff members on April 11, 2014, and we plan
    ongoing communications with Congress regarding this matter.

        67. Senator Graham. Secretary Woodson, can you give me a list of
    those facilities that DOD plans to downsize?
        Dr. Woodson. The attached table are the interim results of our
    resizing analysis.

    ------------------------------------------------------------------------
                     Location                         Transition Action
    ------------------------------------------------------------------------
    Fort Knox, KY.............................  Transition to an outpatient-
                                                 only Ambulatory Surgery
                                                 Center (ASC)
    Fort Polk, LA.............................  Transition to ambulatory
                                                 clinic, maintain holding
                                                 beds
    Fort Sill, OK.............................  Transition to an outpatient-
                                                 only ASC, maintain holding
                                                 beds
    Fort Jackson, SC..........................  Transition to ambulatory
                                                 clinic, maintain holding
                                                 beds
    Fort Riley, KS............................  Transition to birthing
                                                 center, outpatient-only ASC
    Naval Hospital (NH) Lemoore, CA...........  Transition to outpatient-
                                                 only ASC, maintain holding
                                                 beds
    NH Beaufort, SC...........................  Transition to outpatient-
                                                 only ASC, maintain holding
                                                 beds
    NH Oak Harbor, WA.........................  Transition to birthing
                                                 center and outpatient-only
                                                 ASC, maintain holding beds
    ------------------------------------------------------------------------

                     autism and applied behavioral analysis
        68. Senator Graham. Secretary Woodson, is applied behavior analysis
    (ABA) therapy intended for children with developmental disabilities
    other than ASD? If so, which developmental disabilities, other than
    ASD, benefit from ABA therapy?
        Dr. Woodson. ABA for children with developmental disabilities other
    than ASD is not clinically indicated or legally supportable.
    Developmental disabilities encompass many physical disabilities for
    which ABA is never an indicated intervention. All TRICARE beneficiaries
    with a developmental disability currently are eligible to receive
    robust medical benefits, such as physician services, pharmacotherapy,
    speech therapy, occupational therapy, physical therapy; as well as
    behavioral interventions when indicated, including psychotherapy and
    neuropsychological testing. While ABA is a promising emerging treatment
    for ASD, it has been repeatedly determined through comprehensive review
    of available evidence by the TRICARE Management Activity (now the DHA),
    to not yet meet TRICARE's standards as a proven medical intervention.
    There is much less scientific evidence to support the use of ABA for
    developmental disabilities other than ASD.

        69. Senator Graham. Secretary Woodson, if DOD offered ABA therapy
    to all persons with developmental disabilities, what would be the
    estimated additional annual costs to DOD?
        Dr. Woodson. DOD estimates roughly $67.4 million in annual costs
    for ABA therapy services for beneficiaries with developmental
    disabilities.

        70. Senator Graham. Secretary Woodson, if TRICARE coverage is
    expanded to provide ABA therapy for all children with developmental
    disabilities, will the available supply of ABA therapy providers
    accommodate the increased demand for services?
        Dr. Woodson. DOD estimates that about 4,300 TRICARE beneficiaries
    with developmental disabilities will use ABA services. This will
    certainly impact the availability of ABA and would be a significant
    resource concern if TRICARE expanded coverage of ABA to all children
    with developmental disabilities.

                    medical benefit expansion and readiness
        71. Senator Graham. Secretary Wright, during this time of great
    fiscal pressure on DOD, how would a large medical benefit expansion, of
    any kind, impact the readiness of servicemembers?
        Ms. Wright. It depends on the nature, scope, and scale of the
    budget expansion. DOD is actively investing in finding better
    treatments for combat injuries and, should those investments pay off,
    an expansion that would cover those new treatments could greatly
    benefit the readiness of servicemembers.
        In a very general sense though, as long as budgets remain tight,
    the money to offset a medical benefit expansion would have to come from
    somewhere. In the short run, operations, maintenance, and procurement
    accounts are typical offsets, and these accounts are directly
    associated with readiness.

                           laboratory developed tests
        72. Senator Graham. Secretary Woodson, TRICARE stopped reimbursing
    for Laboratory Developed Tests (LDT) on January 1, 2013, and it
    resulted in an inequitable benefit in the TRICARE system. Essentially,
    patients getting care in military hospitals could get those tests at no
    cost, but patients getting civilian healthcare had to pay for those
    tests out-of-pocket. What are you doing to resolve this inconsistency?
        Dr. Woodson. Health Affairs and the DHA are committed to evaluating
    emerging medical treatments and techniques to meet patient needs while
    ensuring safety. Therefore, the DHA will initiate a new Laboratory
    Developed Tests Demonstration Project to be implemented by summer 2014.
    Many LDTs currently available in MTFs will be evaluated under the
    demonstration. LDTs approved under the Demonstration Project will be
    integrated into the both the purchased care and direct care system
    providing more consistency between both systems.

        73. Senator Graham. Secretary Woodson, will TRICARE retroactively
    reimburse beneficiaries if they have previously paid for tests that may
    be covered in the future?
        Dr. Woodson. Beneficiaries who previously paid for LDTs that are
    approved and covered under the demonstration may be eligible for
    reimbursement. A review will need to be done to determine if the LDT
    was medically necessary and appropriate for reimbursement purposes.
    Additional details will be published in the Federal Register
    demonstration notice.

        74. Secretary Woodson, do you believe that TRICARE regulations have
    enough flexibility to keep pace with rapid advancements in medical
    science and technology that often result in changes in national
    standards of care?
        Dr. Woodson. The hierarchy of reliable evidence as defined in
    regulation serves TRICARE well by using evidence-based guidelines to
    assess which treatments and procedures are safe and effective for our
    beneficiaries. However, I do see the need for TRICARE to have greater
    flexibility to provide reimbursement for drugs, devices, medical
    treatments or procedures that result from rapid advancements in medical
    science and technology. Currently TRICARE covers participation in
    National Cancer Institute sponsored Phase I, Phase II, and Phase III
    studies for the prevention and treatment of cancer. Expansion beyond
    cancer clinical trials to support the advancement of medical science
    will be considered. Also, use of our demonstration authority like the
    LDT Demonstration Project offers us an avenue to examine new treatments
    and procedures that have not yet met our reliable evidence criteria.
    Also our MTFs can be utilized to conduct clinical trials or participate
    in registries where the information gathered can inform future benefit
    decisions.

                                tricare for kids
        75. Senator Graham. Secretary Woodson, section 735 of the NDAA for
    Fiscal Year 2013 requires DOD to conduct a comprehensive review and
    develop a plan to ensure that TRICARE meets the pediatric-specific
    needs of military families and protects their access to specialized
    services and care settings. How will DOD incorporate input from all
    stakeholders--pediatric health care advocacy and professional
    organizations, military family advocacy organizations, and military
    families--in the plan required by section 735?
        Dr. Woodson. To develop the report, as required by section 735 of
    the NDAA for Fiscal Year 2013, the DHA working group was provided with
    information and perspectives on current and proposed changes in TRICARE
    pediatric benefits from the following organizations, including:
    American Academy of Pediatrics; Autism Speaks; Children's Hospital
    Association; Department of Defense Military Family Readiness Council;
    Easter Seals; Family Voices; March of Dimes; Maryland Coalition of
    Families for Children's Mental Health; Military Special Needs Network;
    Military Officers of America Association; National Military Family
    Association; and Specialized Training of Military Parents. A meeting
    was held in August 2013 with the following advocacy groups who provided
    information for consideration in report preparation including: American
    Academy of Pediatrics, Autism Speaks, Children's Hospital Association,
    Military Officers Association, and Military Special Needs Network.

        76. Senator Graham. Secretary Woodson, does TRICARE use adult-based
    assumptions when determining medical necessity of a pediatric health
    care intervention, treatment or therapy?
        Dr. Woodson. TRICARE is mandated by Congress to deliver safe and
    effective medically necessary care. Safe, effective, and medically
    necessary care is based on the clinical needs of the beneficiary,
    reliable evidence, and medical need, not on assumptions of a specific
    age group. Pediatric health care interventions, treatments, and therapy
    are based on clinical evidence of safe and effective care.

        77. Senator Graham. Secretary Woodson, what mechanisms are in place
    to link military children with special needs with local community
    health care resources, like pediatric specialty care providers?
        Dr. Woodson. Dependent children with special health care needs are
    linked with local community health care resources like pediatric
    specialty care providers through coordination of care between the MTFs
    and the purchased care network of TRICARE authorized providers. TRICARE
    beneficiaries have access to appropriate medical care in MTFs where
    specialty care is available or based on referrals to providers in the
    community coordinated by regional contractors. The regional contractors
    provide monthly network adequacy reports to the TRICARE regional
    offices to ensure the networks are able to support the TRICARE
    beneficiary medical needs based on contracted ratios. TRICARE networks
    include many children's hospitals and pediatric specialty care
    providers in each geographic region who provide care to military
    children with special needs.
        The report to Congress required by the NDAA 2013, section 735,
    titled: ``Study on healthcare and related support for children of
    members of the Armed Forces'' is being prepared for submission to
    Congress by July 2014. One of the elements to be addressed is
    mechanisms for linking dependent children with special health care
    needs with State and local community resources, including children's
    hospitals and providers of pediatric specialty care; which is similar
    to question being asked. DOD's report will have a more detailed
    discussion on this issue.

                          children with special needs
        78. Senator Graham. Secretary Wright, one of the key components of
    the Exceptional Family Member Program is assignment coordination to
    determine if special needs services are available at a servicemember's
    next projected duty assignment. During the assignment process, the
    Services are supposed to match a family's special needs requirements
    against available services before assigning a servicemember to a new
    location. We hear anecdotal reports that the Services have assigned
    families to locations where support services aren't available. How do
    you plan to address gaps in the assignment coordination process?
        Ms. Wright. The Services are required to screen servicemembers'
    dependents for medical and special education needs prior to any
    accompanied or command sponsored assignment to ensure adequate services
    are available at the projected PCS location for those special needs
    family members enrolled in the Exceptional Family Member Program. If
    there are specific cases where this is not occurring, I would be glad
    to research them to ensure compliance once we have the details.

        79. Senator Graham. Secretary Wright, children with special health
    needs and complex medical conditions require an assortment of
    specialized health care and education services. To ensure continuity of
    health care and educational services, military families with special
    needs children must get ``warm handoffs'' as they transition to new
    assignments. How can this transition process be improved to ensure that
    these children receive continuous health care and education services at
    the sponsor's next duty location?
        Ms. Wright. DOD, including the Services, works continuously to
    improve and standardize support to military families with special needs
    during every phase of military life, including during transition. DOD
    policy stipulates that the special medical and educational needs of
    family members must be considered during the assignment process. During
    the assignment process, the Services review the medical and educational
    needs of a servicemember's family members enrolled in the Exceptional
    Family Member Program (EFMP). Every reasonable effort is made to ensure
    families are stationed in locations at which services to meet their
    needs are available, ensuring the assignment also meets the needs of
    the Service.
        Within the United States, the Individuals with Disabilities Act
    (IDEA) requires that services be available to all children with
    disabilities. IDEA governs how States and public agencies provide early
    intervention, special education, and related services to eligible
    infants, toddlers, children, and youth with disabilities. The education
    of children with disabilities in overseas DODEA schools is also
    governed by the IDEA. For families transitioning to overseas
    assignments, their special educational needs are reviewed by the DODEA.
        To support military families with special needs, EFMP Family
    Support Providers offer a warm hand-off for families transitioning to a
    new duty station. This warm hand-off includes connecting families to
    the EFMP family support provider at the new location. To consistently
    document and understand families' needs, DOD has developed the Family
    Needs Assessment and Services Plan. DOD has also developed the Inter-
    Services Transfer Summary (ISTS) to document family support assistance
    received by families transferring between installations not run by
    their own Service (e.g., a soldier transferring to or from a Navy run
    installation).

                                 tricare reform
        80. Senator Graham. Secretary Woodson, under DOD's TRICARE reform
    proposal, what modifications will be needed to TRICARE Managed Care
    Support Contracts to implement a new consolidated TRICARE plan?
        Dr. Woodson. Contract modifications would be necessary for claims
    adjudication, network development, participant fee collection, and
    other processes. It is important to note that these modifications would
    simplify program administration. We recommended implementing the new
    TRICARE Consolidated Health Plan in fiscal year 2016 based on DOD's
    internal estimates of the potential costs associated with these
    modifications and considered these costs in the overall cost-benefit
    evaluation of the proposal. It was determined that the benefits
    exceeded the cost of waiting until the next generation of TRICARE
    contracts was awarded.

        81. Senator Graham. Secretary Woodson, will there be changes in
    requirements for the contractors to build and maintain networks and to
    maintain accurate lists of network providers?
        Dr. Woodson. No, there will be no change to this requirement.

        82. Senator Graham. Secretary Woodson, what resources will remain
    in place for the management of complex illnesses or conditions where
    coordinated care is needed?
        Dr. Woodson. Care coordination should continue to occur through the
    patient's relationship with his or her primary care provider, just as
    it does now. For example, those participants who choose to receive
    their care in a MTF will continue to enjoy the benefits of Patient
    Centered Medical Home, a holistic approach to medicine. The
    Consolidated TRICARE Health Plan simply removes administrative burdens
    that impede the access to care; it does not affect the close patient-
    provider relationships that have developed over time.

                      basic allowance for housing reforms
        83. Senator Graham. Secretary Wright, how much savings will DOD
    realize as a result of the proposal to increase servicemember Basic
    Allowance for Housing (BAH) out-of-pocket contribution in fiscal year
    2015?
        Ms. Wright. DOD estimates that this proposal will provide $391
    million in cost savings for fiscal year 2015, and that cost savings
    would grow to reach $1.28 billion in fiscal year 2019. These cost
    savings include removing renter's insurance from the computation
    beginning in 2015 and gradually increasing the out-of-pocket percentage
    to 5 percent over 3 years (2015 to 2017).

        84. Senator Graham. Secretary Wright, if a member lives on base
    with their family, will their rent still be covered 100 percent or will
    they have to pay 5 percent of the cost?
        Ms. Wright. Rental amounts are currently based on the BAH provided
    to uniformed members. The amount out-of-pocket that a member may or may
    not have to pay to the privatized partner of on-base housing will
    depend on changes to project agreements. The Under Secretary of Defense
    for Acquisition, Technology, and Logistics is currently working with
    the Services to assess how best to implement any BAH reductions into
    the project rent structures. DOD believes it has the authority under
    the Military Housing Privatization Initiative to make the necessary
    adjustments.

        85. Senator Graham. Secretary Wright, is there currently on-base
    housing that is vacant or not being utilized by servicemembers?
        Ms. Wright. The overall occupancy of military privatized housing is
    about 95 percent. About 5 percent of those occupants are ``waterfall,''
    or non-uniformed tenants. This occupancy rate for privatized housing is
    higher than it had been before privatization.
        In privatized projects, members are not assigned to housing. They
    may choose to live on base or in town. If there is insufficient demand
    from Active Duty military families, then the privatized housing owners
    may lease units to a so-called ``waterfall'' of potential tenants.
    Active Duty member families have the highest priority for privatized
    housing, but depending upon conditions, units can also be rented to
    unaccompanied members, DOD civilians, military retirees, and others in
    order to maintain occupancy.

        86. Senator Graham. Secretary Wright, how will this reduction
    affect privatized housing companies who receive money from DOD for on-
    base housing?
        Ms. Wright. The impact to privatized partners will depend on how
    the legislation is implemented by the Military Services and their
    private partners. Under Secretary of Defense for Acquisition,
    Technology, and Logistics is currently working with the Military
    Services to assess how best to implement any BAH reductions into the
    project rent structures. DOD believes it has the authority under the
    Military Housing Privatization Initiative to make the necessary
    adjustments.

                                   troop pay
        87. Senator Graham. Secretary Wright, how much savings will DOD
    realize by capping the pay increase at 1 percent for fiscal year 2015?
        Ms. Wright. DOD's proposal to provide a 1.0 percent basic pay
    increase for pay grades O-6 and below in lieu of the automatic 1.8
    percent increase would save $534 million in fiscal year 2015 and $3.4
    billion over fiscal years 2015 to 2019.

        88. Senator Graham. Secretary Wright, how much savings will DOD
    realize by freezing general and flag officer pay?
        Ms. Wright. The fiscal year 2015 request includes a 1.0 percent
    basic pay raise for pay grade O-6 and below, and seeks a pay freeze for
    general and flag officers. While the pay freeze for general and flag
    officers provides only limited savings of about $1 million in fiscal
    year 2015 and $8 million through fiscal year 2019, the Joint Chiefs
    were adamant that if they are asking our young men and women to accept
    a slower growth in pay, then the most senior leadership ought to accept
    an even lower level.

                                     sunset
        89. Senator Graham. Secretary Wright, what congressionally-mandated
    personnel programs do you believe are no longer useful to
    servicemembers and their families that could be cut or modified to
    promote a more efficient use of resources?
        Ms. Wright. We do not believe that our current portfolio of
    military community and family programs requires cuts or legislatively
    mandated modifications. Each year comprehensive reviews of these
    programs are conducted to ensure that services are not duplicative or
    redundant, and that resources are appropriately allocated. Examples of
    these types of reviews include those conducted in generating the
    Defense Program and Planning Guidance and the DOD Policy and Plans for
    Military Family Readiness congressional report, and by the Military
    Family Readiness Council. As a result of these efforts, the Office of
    the Secretary of Defense and the Services regularly adjust the delivery
    of programs to ensure that the unique needs of the military population
    continue to be met. When necessary, DOD seeks legislative relief for
    congressionally-mandated programs.

                       assignment of women to combat arms
        90. Senator Graham. Secretary Wright, if combat arms positions are
    opened to women, and if not enough women volunteer for those positions,
    will DOD involuntarily assign women to combat arms units?
        Ms. Wright. Once positions are open with a single standard for
    entry, each Service will follow its respective policies for the
    classification and assignment of personnel. These policies will be
    applied equally to men and women, consistent with the needs of the
    Services, SOCOM, and mission.
        It continues to be essential to mission effectiveness that the
    person selected for an occupation is fully qualified to perform that
    occupation. Further, we owe it to all servicemembers to put them in
    positions where they have the highest probability of success. DOD's
    goal is to ensure the mission is met with the highest, best-qualified,
    and most capable people, regardless of gender. Evaluations will be made
    in accordance with our guiding principles.

                               selective service
        91. Senator Graham. Secretary Wright, when did DOD last review the
    role of the Selective Service System in meeting the wartime
    requirements of the Nation?
        Ms. Wright. During our 2013 GAO audit, DOD was asked to reevaluate
    the mission and military requirements for the Selective Service. We
    found that the changes in the world following the end of the Cold War
    have revised our mobilization requirements. As such, DOD has no
    operational plans that envision mobilization at a level that would
    require conscription. However, while there may be no immediate military
    necessity, there may be national necessities for continuation of the
    Selective Service System.
        Since 1974, the United States has relied upon an AVF to meet the
    Nation's military requirements. The AVF has performed successfully
    everywhere from the Balkans to the Gulf of Arabia, in Operations Desert
    Shield/Desert Storm, and in our Nation's longest military engagements
    for over 12 years in Iraq and Afghanistan. The current AVF is combat
    experienced, highly educated, and diverse. Currently, the AVF is of
    adequate size and composition to meet America's security needs.

                                 sexual assault
        92. Senator Graham. Secretary Wright, does DOD or the Services
    require any additional authorities to support victims of sexual
    assault?
        Ms. Wright. DOD has not identified additional authorities needed to
    support victims of sexual assault. Military and civilian leaders are
    working to sustain their current level of attention, focus, and
    emphasis on the implementation of critical reforms and protections for
    victims. DOD efforts to combat sexual assault rely on the continued
    implementation of SAPR initiatives and programs, as well as intensified
    efforts to educate all servicemembers, frontline commanders, and
    leaders on SAPR policies and procedures.
        The NDAA for Fiscal Year 2014 included 33 sections related to
    sexual assault. Many of the provisions require support to victims, such
    as provisions:

             Requiring a Special Victims' Counsel program for each
            Service.
             Requiring a sexual assault nurse examiner per MTF.
             Extending the rights afforded by the Crime Victim
            Rights Act to victims of offenses under the UCMJ.
             Expanding protections against retaliatory personnel
            actions for servicemembers who report sexual assaults.
             Requiring defense counsel to make requests to
            interview victims through trial counsel and permitting victims
            to request presence of trial counsel or outside counsel during
            interview.

        Additionally, we want to thank Congress for supporting victims of
    sexual assault by passing NDAA for Fiscal Year 2013, section 576. The
    process established by this legislation calls for an independent panel
    to study sexual offense reporting, investigation, and prosecution under
    military and civilian jurisdictions. This panel is providing a fact-
    based investigation of the response and judicial systems for sexual
    assault and will provide important recommendations on potential reforms
    to the system to support victims of sexual assault.

        93. Senator Graham. Secretary Wright, does DOD or the Services
    require any additional authorities to empower commanders, criminal
    investigators, victim advocates, or judge advocates to continue efforts
    to combat sexual assault?
        Ms. Wright. DOD has not identified additional authorities needed to
    empower commanders, criminal investigators, victim advocates, or judge
    advocates, as they work to combat sexual assault in the military.
    Military and civilian leaders are working to sustain their current
    level of attention, focus, and emphasis on the implementation of
    critical reforms, which are detailed below. DOD efforts to combat
    sexual assault rely on the continued implementation of SAPR initiatives
    and programs, as well as intensified efforts to educate all
    servicemembers, frontline commanders, and leaders on SAPR policies and
    procedures.
        DOD is focused on implementing more than 60 provisions of law
    included in the past three NDAAs that are related to sexual assault.
    Further, each Service is implementing 22 initiatives directed by the
    Secretary of Defense to strengthen DOD SAPR programs.
        The NDAA for Fiscal Year 2014 included 33 sections related to
    sexual assault. Many of the provisions affect military justice, such as
    provisions that will:

             Require higher level review of any decision by a
            commander not to refer a sexual assault case to a general
            court-martial;
             Give military victims the opportunity to decline to
            testify at Article 32 hearings;
             Limit the authority of commanders to overturn court-
            martial findings and sentences;
             Limit jurisdiction for rape and sexual assault
            offenses to general courts-martial;
             Establish mandatory punitive discharge for sexual
            assault and rape convictions; and
             Eliminate the 5-year statute of limitations for sexual
            assault offenses.

        94. Senator Graham. Secretary Wright, who in DOD is responsible to
    look at recent legislation from the standpoint of the military member
    accused of sexual assault, to ensure that commanders and those who
    support them are protecting the constitutional rights of the accused?
        Ms. Wright. The preservation of the constitutional rights of
    everyone involved in the Military Justice system is of paramount
    importance. The Judge Advocates General of the Military Departments and
    the Staff Judge Advocate to the Commandant of the Marine Corps, who
    administer the Military Justice process for their respective Services,
    have primary responsibility for this function. Also critical in this
    function is the DOD Office of General Counsel.
                                     ______

                  Questions Submitted by Senator Kelly Ayotte
                            special victims counsel
        95. Senator Ayotte. Secretary Wright, section 1716 of the NDAA for
    Fiscal Year 2014 required the Services to establish the Special
    Victims' Counsel Programs to provide independent legal advice for
    victims of sexual assault. How is the Special Victims' Counsel Program
    going in each of the Services?
        Ms. Wright. All Services have implemented their Special Victims'
    Counsel programs. The Special Victims' Counsel program forms an
    extensive sexual assault victim representation system. Preliminary
    assessments of the Services' programs are favorable. They are an
    important component of DOD's ongoing efforts to eradicate sexual
    assault from the Armed Forces while supporting victims and holding
    offender appropriately accountable when such assaults do occur.

        96. Senator Ayotte. Secretary Wright, do you think the availability
    of Special Victims' Counsels at least partially explains the increase
    in reporting we have seen?
        Ms. Wright. While we believe the Special Victims' Counsel program
    holds great potential for helping victims navigate the military justice
    process, we do not believe that the full effects of this program were
    seen in the increased reporting that occurred in fiscal year 2013. This
    is because only the Air Force had a fully operational Special Victims'
    Counsel program in fiscal year 2013. The other three Services deployed
    their full programs in fiscal year 2014. DOD will be monitoring
    reporting trends and surveying victims in fiscal year 2014 to discern
    the impacts of the Special Victims' Counsel program throughout the
    Military Services.
        DOD believes that we must take a number of actions to help increase
    victim confidence, as there is no single silver bullet solution. Our
    response requires sustained progress, persistence, and innovation. We
    must treat survivors of this crime with sensitivity, privacy, and
    responsive support. How we treat current victims will impact future
    victims' decisions to report.
        A key element of DOD's approach is to increase victim trust and
    confidence in our response system so that victims are willing to
    report. DOD has implemented a number of programs designed to improve
    victim confidence, recognizing that increased victim confidence and
    reporting is a bridge to greater victim care and offender
    accountability. These reforms are not limited to the creation of
    dedicated legal support to victims, but also include reforms to the
    military justice system, enhanced access to victim advocacy, and
    increased training and awareness for the entire force. Specifically,
    these reforms include:

             Implementing policy across the Services to provide
            commanders with balanced options to eliminate victims'
            continued contact with their accused offenders, through
            expedited transfers;
             Fielding more than 25,000 professionally certified
            Sexual Assault Response Coordinators (SARCs) and Victim
            Advocates (VAs), located across the globe;
             Developing the DOD Safe Helpline to ensure that
            victims have anonymous, worldwide 24/7 crisis support via
            online chat, telephone, and texting services;
             Requiring investigators and prosecutors to receive
            specialized training on how to best support sexual assault
            victims and their cases; and
             Requiring sexual assault cases to be treated as
            medical emergencies in MTFs.

        Initial fiscal year 2013 data shows a 50 percent increase in victim
    reports of sexual assault when compared to fiscal year 2012. We assess
    this increase in reports as consistent with a growing level of
    confidence in our response system. This is supported by an additional
    metric--there are growing numbers of reports made by victims about
    incidents that took place prior to joining the military.

                                  compensation
        97. Senator Ayotte. Secretary Wright, please provide specific and
    detailed analyses on the financial impact on junior enlisted and junior
    officers of the DOD's proposed housing allowance and commissary
    changes. How much more will these individuals have to pay as a result
    of the proposed commissary changes?
        Ms. Wright. Our estimates of the impacts of the proposals on the
    monthly compensation of members are in the attached charts.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        98. Senator Ayotte. Secretary Wright, what specific impact will
    this have on MWR revenues?
        Ms. Wright. We expect the proposed commissary changes could have
    some negative impact on MWR activity revenues, both directly and
    indirectly. Among the direct impacts, MWR activities might no longer be
    able to purchase food from the commissary at cost; higher food costs in
    those MWR activities would in turn drive up selling prices and fees. In
    addition, reduced commissary foot traffic on base could have a
    cascading effect on participation in MWR activities, which in turn
    would reduce overall revenue to support the system. The indirect impact
    would occur when a possible reduction in commissary foot traffic is in
    turn reflected in reduced foot traffic in the exchanges; the resulting
    drop in exchange sales would then reduce the exchange dividends that
    support MWR programs.

        99. Senator Ayotte. Secretary Wright, will some personnel who live
    on post have difficulty traveling to off-post grocery stores?
        Ms. Wright. The question assumes that no commissary will be
    available for those living on bases. There are no plans to close
    commissaries. Difficulty traveling to off-installation grocery stores
    will vary installation-to-installation depending on distance and
    availability of transportation.

        100. Senator Ayotte. Secretary Wright, please provide examples, by
    rank, of how much junior enlisted servicemembers will not receive for
    their housing allowance in more expensive locations.
        Ms. Wright. Our estimates of the impacts of the proposals on the
    monthly compensation of members are in the attached charts. (See answer
    to question 97). The proposed out-of-pocket expense for the BAH
    contained in the fiscal year 2015 proposal would vary by pay grade and
    dependency status but not by location. The out-of-pocket expense amount
    would be computed as a percentage of the national mean housing
    allowance for each pay grade and dependency status. The computed, fixed
    dollar amount would be applied to the BAH rate for that pay grade and
    dependency status for each location. As a result, impact on a member
    from this proposal would be the same dollar amount, regardless of
    whether the member resides in a high-cost or low-cost housing area.
        See answer to question 97.

         sexual assault response coordinators for the guard and reserve
        101. Senator Ayotte. Mr. Wightman, section 1724 of the NDAA for
    Fiscal Year 2014 requires each Service Secretary to ensure timely
    access to a SARC for any member of the National Guard or Reserve who is
    the victim of a sexual assault. Can you please provide an update on how
    DOD is doing in implementing this provision related to SARCs for the
    Guard and Reserve?
        Mr. Wightman. The DOD SAPRO provides oversight and guidance to the
    Services as they implement NDAA for Fiscal Year 2014 provisions. Each
    of the Services has addressed providing timely access and support of
    SARC services differently that takes into consideration organizational
    structure and geographic coverage apart from the military unit. A
    summary of the status to providing timely access to SARCs for Reserve
    component servicemembers follows:

             The National Guard has hired one full-time SARC in
            every State and Territory (54 States and Territories), for
            servicemembers who are located at the Joint Forces Headquarters
            and serve in either Title 32 Active Guard Reserve (AGR),
            Technician, or Active Duty Operational Support (ADOS) status.
            Every SARC is trained to provide service to both Air and Army
            National Guard within the State or Territory. Additionally, the
            Air National Guard has placed one airman, who serves on full-
            time status, to serve in the SARC role as required within each
            Wing. The Army National Guard has one SARC, called the
            Collateral SARC, at each Division down to Brigade.
             U.S. Army Reserve (USAR) policy requires that a
            servicemember victim be linked to the SARC that is located
            closest geographically. In addition, the USAR maintains 5
            hotlines (1 hotline for each of 4 Regional Support Commands and
            1 in Puerto Rico) staffed by 35 full-time Military Technicians
            and Active Guard and Reserve SARCs. The hotlines are staffed
            24/7. These SARCs offer support on the phone when a victim
            calls, and can refer them to local civilian resources in crisis
            situations. The hotline numbers, along with the DOD SAFE
            Helpline phone number, are prominently posted in unit/drill
            areas. The U.S. Army Reserve Command publishes an array of
            products listing all five hotline numbers.
             Each U.S. Navy Reserve (USNR) unit is required to have
            a designated Unit SAPR VA who responds to servicemember
            victims. In addition, the USNR provides SAPR response and
            services through a Navy Operation Support Center (NOSC) which
            is aligned with a Navy region with the Installation SARC
            providing services. The contact number for 24/7 SAPR Victim
            Advocate (SAPR VA) and SARC services is posted in the NOSC and
            is made available via the DOD Safe helpline. Audits are
            conducted monthly to ensure posted telephone contacts are
            accurate and victims receive immediate support.
             All U.S. Marine Corps Reserve (USMCR) sites have at
            least one trained and appointed Uniformed Victim Advocate (UVA)
            assigned to the site to provide in-person response to victims
            of sexual violence. All of the sites have MOUs with other SAPR
            military and civilian rape crisis centers in their localities.
            In addition, the USMCR maintains a 24/7 Sexual Assault Helpline
            which provides immediate telephonic crisis response to all
            Active Duty and Reserve component marines/sailors assigned to
            the 162 Marine Reserve sites throughout the United States
            including Alaska, Hawaii, and Puerto Rico. The Helpline is
            staffed by the SAPR Program Manager, three SARCs, and two
            civilian VAs located in New Orleans. Once a report is received,
            a referral will be made to the UVA to provide immediate in-
            person response. UVAs are required to answer all calls within
            15 minutes and to respond in person within 1 hour of
            notification. All Marine Reserve locations are mandated to post
            the SAPR Helpline as well as the DOD SAFE Helpline throughout
            common areas of their facilities.
             The U.S. Air Force maintains a civilian SARC at each
            of the 11 Host Wings. All Wing SARCs report to the Command SARC
            who is located at Robins Air Force Base. Each of the SARCs is
            issued a government cell phone and is on call 24/7. These SARC
            numbers along with the DOD Safe Helpline are posted in many
            locations to ensure airmen are aware of the support.

                             increase in reporting
        102. Senator Ayotte. Secretary Wright, based on the statutory
    reforms passed in the NDAA for Fiscal Year 2014, as well as the
    additional reforms DOD has been implementing, are we seeing an increase
    in reporting of sexual assaults in the military?
        Ms. Wright. Yes, during fiscal year 2013, there were 5,061 reports
    of sexual assault. This figure represents an increase of 50 percent
    over fiscal year 2012 numbers. The average annual increase in reports
    of sexual assault has been approximately 5 percent since the first full
    year of Restricted Reporting in 2006, as compared to a 50 percent
    increase in reporting between fiscal year 2012 and fiscal year 2013. In
    addition, there was a substantial increase in the number of reports
    made by victims for incidents they experienced prior to joining the
    military. In fiscal year 2013, about 10 percent of the 5,061 reports of
    sexual assault received from servicemembers were for sexual assaults
    that occurred to them prior to entering military service. In past
    years' reporting, that figure has never exceeded 4 percent. DOD
    believes these reports reflect an increased level of confidence in the
    DOD response system and are a sign that victims trust DOD to treat and
    support them in their recovery.
        Despite increased reporting, sexual assault remains a persistent
    challenge. During fiscal year 2014, DOD will intensify its focus on
    preventing the crime by implementing the 2014 to 2016 DOD Sexual
    Assault Prevention Strategy. Prevention is more than training and
    education of individuals. A successful prevention strategy addresses
    the entire continuum of harm, shapes the environment, and includes a
    wide range of integrated elements targeting accountability, community
    involvement, communication, deterrence, incentives, and harm reduction
    at every level of military society.
        These continuing efforts, plus the reforms passed in the NDAA for
    Fiscal Year 2014, are essential elements to reducing the prevalence of
    this crime and ensuring, if it does happen, that our response is
    professional and comprehensive.

        103. Senator Ayotte. Secretary Wright, are we seeing a proportional
    increase in unrestricted reporting?
        Ms. Wright. No. Proportionally, we had a slightly larger increase
    in Restricted Reporting than we did in Unrestricted Reporting. In
    fiscal year 2013, there was a 47 percent increase in Unrestricted
    Reporting from fiscal year 2012. In comparison, there was a 53 percent
    increase in initial Restricted Reports. Of those initial Restricted
    Reports, 208 later converted to Unrestricted Reports.
        That being said, after accounting for those conversions, the
    proportion of Unrestricted Reports to Restricted Reports stayed largely
    the same: About three quarters of reports are Unrestricted and a
    quarter of reports remained Restricted at the end of fiscal year 2013.
    Each year, the proportion of Restricted to Unrestricted Reporting
    varies by a percentage point or two, so the small differences between
    years shown in the table below aren't meaningful. The parallel lines in
    the graph depicted below also demonstrate that the proportion has
    stayed largely the same since 2006.

       [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        104. Senator Ayotte. Secretary Wright, are victims feeling more
    confident that if they come forward they will receive the support,
    protection, and justice they deserve?
        Ms. Wright. Yes. DOD assesses the unprecedented increase in reports
    received in fiscal year 2013 as consistent with a growing level of
    confidence in the DOD response system. This year, a record number of
    victims sought assistance and care by making a report. Since 2006, the
    average annual increase in reports of sexual assault has been
    approximately 5 percent. In fiscal year 2013, reports of sexual assault
    increased by 50 percent from fiscal year 2012.
        We know that victim choice is a centerpiece of building victim
    confidence and our policy follows a victim-empowerment model that
    allows victims to determine their reporting options, medical care,
    whether to undergo forensic exams, expedited transfer, and legal
    assistance. We legally protect victims' privacy through privileged
    communications with SARCs, SAPR VAs, mental health providers, and
    attorneys that ensure private coordination of care and legal advice.
        During fiscal year 2013, DOD implemented numerous advocacy and
    victim assistance programs, initiatives, and policy enhancements.
        To expand victim rights, the Secretary of Defense directed the
    General Counsel to develop a method to incorporate the rights afforded
    to victims through the Crime Victims' Rights Act into military justice
    practice. The General Counsel was also directed to develop language
    that will amend the Manual for Courts-Martial to provide victims of
    crime the opportunity to provide input to the post-trial action phase
    of courts-martial. DOD also implemented policy for the extended
    retention of DOD Forms 2910 and 2911 in cases of Restricted Reports,
    when requested by the victim.
        To enhance victim protections, the Secretary of Defense directed
    the Secretaries of Military Departments to develop and implement policy
    allowing the administrative reassignment or transfer of a servicemember
    who is accused of committing a sexual offense based on credible report.
    Furthermore, the Director of National Intelligence issued new security
    clearance guidance that is intended to de-stigmatize mental health
    counseling used by sexual assault victims in their recovery. The
    Secretary of Defense also directed the Military Departments to improve
    overall victim care and trust in the chain of command, to increase
    reporting, and to reduce the possibility of ostracizing victims. To do
    this, the Military Departments will implement and monitor methods in
    forthcoming years to improve victim treatment by their peers, co-
    workers, and chains of command. Victim input will be solicited in the
    development of these methods.
        To improve and expand victim advocacy services, DOD completed the
    fielding of the DOD Sexual Assault Advocate Certification Program (D-
    SAACP), developed an advanced training course for D-SAACP-certified
    SARCs and SAPR VAs, and developed standardized core competencies and
    learning objectives for SARCs and SAPR VAs. DOD also sustained and
    expanded DOD Safe Helpline services, continued collaborating with
    civilian community victim advocates, and continued to provide training
    for recovery care coordinators.
        We believe this multi-disciplinary approach provides victims with
    the support they need, the sensitivity they deserve, and instills the
    confidence they need to come forward and get help.

                military sexual assault--role of the commanders
        105. Senator Ayotte. Secretary Wright, Secretary Woodson, Secretary
    Vollrath, and Mr. Wightman, why do you believe it is important to keep
    commanders at the center of the military justice system making
    disposition decisions?
        Ms. Wright, Dr. Woodson, Mr. Vollrath, and Mr. Wightman. DOD is
    committed to solving the problem of sexual assault in the military. We
    do not believe, however, that removing prosecutorial discretion from
    commanders will help DOD prevent or respond to this crime. On the
    contrary, removing commanders' prosecutorial discretion would likely
    harm prevention efforts. Solving the problem of sexual assault requires
    commander involvement.
        Senior commanders make profound decisions every day, both in and
    out of combat that impact the lives and careers of servicemembers and
    their families. They are accountable for mission accomplishment, as
    well as the health, welfare, readiness, and discipline of those under
    their command. The powers that commanders exercise in the military
    justice system are important tools to achieve these goals.
        In addition, the independent Response Systems Panel, created by
    Congress, recently issued an assessment finding that there was no
    evidence that such a change would reduce the incidence of sexual
    assault or increase reporting of sexual assaults in the Armed Forces.
        Commanders and leaders create the climate in which victims choose
    to report. They facilitate the reporting of sexual assaults by gaining
    victims' confidence in our response system when they understand these
    issues and provide supportive climates. The significant increase in
    reports during fiscal year 2013, with commanders making disposition
    decisions, suggest that our efforts to combat sexual assault are
    starting to increase victim confidence.

                         general officer retirement pay
        106. Senator Ayotte. Secretary Wright, the NDAA for Fiscal Year
    2007 made significant changes to the pay authorities of flag officers.
    The 2007 legislation provided incentives for senior officers to
    continue serving by extending the basic pay table from a cap at 26
    years to provide increase in longevity pay out to 40 years of service.
    According to a press report in USA Today, using 2011 numbers, this
    could result in a four-star officer retiring with 38 years of
    experience receiving $84,000 more per year in retirement than
    previously allowed (63 percent more). The 2007 changes not only
    increased longevity pay for senior officers but also allows senior
    officers retiring with 40 years of service to receive 100 percent of
    their Active Duty pay. Unlike the cap on annual pay, there is currently
    no cap on retired pay for these senior officers. Was the purpose of
    this legislation to encourage combat experienced one- and two-star
    admirals and generals to continue to serve during a time of war?
        Ms. Wright. The legislation, although enacted during a period of
    extended conflict, was intended to address the longer-term concern
    about general and flag officer retention.
        At the time the legislation was enacted, DOD was losing 75 percent
    of the general and flag officer corps 3 or more years prior to their
    mandatory retirement date. With the exception of cost of living
    increases, most O-9s and O-10s were serving for over a decade without
    increases in salary or retired pay.
        Research published by RAND in 2004 indicated compensation was
    inadequate for longer careers and found the opportunity costs of
    continued service to lifetime earnings were substantial.
        DOD does not object to review of, or recommendations regarding,
    retired pay calculations for general and flag officers. However,
    because of the complexity of the military retirement system, any
    proposal for change should be done in the context of a review of that
    system holistically and should, thus, come from the congressionally-
    established Military Compensation and Retirement Modernization
    Commission (MCRMC).

        107. Senator Ayotte. Secretary Wright, do you believe this program
    is still necessary given the fact that we have withdrawn from Iraq and
    are withdrawing most of our troops from Afghanistan?
        Ms. Wright. DOD does not object to review of, or recommendations
    regarding, retired pay calculations for general and flag officers.
    However, because of the complexity of the military retirement system,
    any proposal for change should be done in the context of a review of
    that system holistically and should, thus, come from the
    congressionally-established MCRMC.

        108. Senator Ayotte. Secretary Wright, what is the justification,
    if any, for keeping this in place?
        Ms. Wright. DOD does not object to review of, or recommendations
    regarding, retired pay calculations for general and flag officers.
    However, because of the complexity of the military retirement system,
    any proposal for change should be done in the context of a review of
    that system holistically and should, thus, come from the
    congressionally-established MCRMC.

        109. Senator Ayotte. Secretary Wright, is DOD recommending the
    repeal of this provision? Why or why not?
        Ms. Wright. DOD does not object to review of, or recommendations
    regarding, retired pay calculations for general and flag officers.
    However, because of the complexity of the military retirement system,
    any proposal for change should be done in the context of a review of
    that system holistically and should, thus, come from the
    congressionally-established MCRMC.

                     change in reimbursement for lab tests
        110. Senator Ayotte. Secretary Woodson, on February 27, I joined
    several of my colleagues in writing to Secretary Hagel about my serious
    concerns with a change in TRICARE's reimbursement policy that excludes
    certain LDTs and Molecular Pathology Laboratory tests from coverage and
    reimbursement for some TRICARE beneficiaries. These tests include ones
    commonly used to test for diseases or conditions that may develop
    during pregnancy--for example: cystic fibrosis, Fragile X syndrome, and
    spinal muscular atrophy. In the letter, we asked for responses to four
    questions and requested that we receive answers no later than March 14.
    To date, my office has not yet received a response to that letter. How
    soon do you anticipate you will provide a formal written response to
    our letter?
        Dr. Woodson. The response and answers to the four questions was
    signed by Acting USD(P&R) Wright and was mailed on April 11, 2014.

        111. Senator Ayotte. Secretary Woodson, regarding the change in
    reimbursement, many TRICARE beneficiaries as well as laboratories, said
    they were not aware of this change in policy. Did the policy change go
    through the regular notice and public comment period?
        Dr. Woodson. There has been no change in TRICARE's underlying
    coverage policies. In January of 2012, the American Medical Association
    (AMA) released an updated laboratory coding section, including codes
    that previously could be used to bill for LDT. This was done to provide
    greater transparency and insight into what tests were being performed
    by laboratories. When these older codes (with tests that ranged from
    simple blood panels to extremely complex LDTs) were no longer able to
    be used, laboratories began using the new codes, which often specified
    a gene sequence to be looked at, or a reaction to a specific therapy.
    Many of these codes represent LDTs that have not received Food and Drug
    Administration (FDA) approval. In accordance with the Federal
    regulations governing the TRICARE program, medical devices, including
    LDTs, that require FDA approval or clearance for marketing when such
    approval or clearance has not been given are excluded from the TRICARE
    program.

        112. Senator Ayotte. Secretary Woodson, what stakeholder input and
    feedback did TRICARE consider when making the decision to exclude
    certain laboratory tests from reimbursement?
        Dr. Woodson. TRICARE considered its current statute and regulations
    which provide the exclusion for devices (such as laboratory tests) that
    lack FDA approval. In accordance with the Federal regulations governing
    the TRICARE program, medical devices, including LDTs, that require FDA
    approval or clearance for marketing when such approval or clearance has
    not been given are excluded by TRICARE. When the new Current Procedural
    Terminology (CPT) codes created by the AMA for molecular pathology took
    effect on January 1, 2013, TRICARE reviewed these codes and their
    corresponding LDTs to see if any had FDA approval. Per Federal
    regulation, those LDTs that did not have FDA approval are excluded from
    coverage.

        113. Senator Ayotte. Secretary Woodson, is there a sufficient
    appeals process in place for services that a physician determines are
    medically necessary for a specific patient but not covered under
    current TRICARE policy?
        Dr. Woodson. Yes, TRICARE has a well-established appeals and
    hearing process which allows patients to challenge adverse benefit
    determinations. The regulations governing the appeal and hearing
    procedures may be found at Title 32, Code of Federal Regulations, Part
    199.10.
        Determinations of medical necessity and the accompanying TRICARE
    coverage are made on the basis of medical evidence and diligent review.
        It is our number one responsibility to ensure that our patients
    receive only safe and effective treatment. Our demonstration project
    will allow us to address the immediate issue of existing LDTs. However,
    the ongoing development of new tests will present similar issues in the
    near future.

        114. Senator Ayotte. Secretary Woodson, what authorities do you
    currently have that may allow you the flexibility to reinstate
    reimbursement for the laboratory tests that TRICARE decided to exclude
    from coverage?
        Dr. Woodson. Under current Federal regulations (Title 32, Code of
    Federal Regulations (CFR) 199.4(g)(15)(i)(A)), TRICARE may not cost-
    share medical devices, including LDTs under the private sector program,
    if the device has not received FDA marketing 510(k) clearance, or
    premarket approval. Pursuant to Title 10, United States Code (U.S.C.)
    Chapter 55, Section 1092, the Secretary of Defense may initiate a
    demonstration project to review non-FDA approved/cleared LDTs for
    safety and efficacy.
        10 U.S.C. 55 section 1092 establishes that the Secretary of
    Defense, in consultation with the other administering Secretaries,
    shall conduct studies and demonstration projects on the health care
    delivery system of the uniformed services with a view to improving the
    quality, efficiency, convenience, and cost-effectiveness of providing
    health care services (including dental care services) under this title
    to members and former members and their dependents. Such studies and
    demonstration projects may include the following:

        (A)  Alternative methods of payment for health and medical care
    services;
        (B)  Cost-sharing by eligible beneficiaries;
        (C)  Methods of encouraging efficient and economical delivery of
    health and medical care services;
        (D)  Innovative approaches to delivery and financing of health and
    medical care services;
        (E)  Alternative approaches to reimbursement for the administrative
    charges of health care plans; and
        (F)  Prepayment for medical care services provided to maintain the
    health of a defined population.

        115. Senator Ayotte. Secretary Woodson, isn't it true that the FDA
    recognizes certain tests as either valuable, appropriate, or as a
    standard of care, even though they may not necessarily be FDA-approved?
        Dr. Woodson. I can only speak of LDTs as it relates to the MHS.
    This question would best be answered by the FDA.

      assessing programs to help members and veterans with psychological
                                   disorders
        116. Senator Ayotte. Secretary Woodson, according to the Institute
    of Medicine (IOM), between 2000 and 2011, nearly 1 million
    servicemembers or veterans were diagnosed with at least one
    psychological disorder either during or after deployment. Almost half
    of those diagnosed had multiple disorders.
        As the result of a congressional mandate, DOD and VA asked the IOM
    to conduct a report on the needs of veterans returning from Iraq and
    Afghanistan. The report--``Returning Home from Iraq and Afghanistan:
    Assessment of Readjustment Needs of Veterans, Service Members, and
    Their Families,'' was released last year. Recently, the IOM released a
    follow-up report titled, ``Preventing Psychological Disorders in
    Service Members and Their Families: An Assessment of Programs.''
        Earlier this year, the Washington Post reported on the latest IOM
    study and noted that the study found that several programs at DOD were,
    ``not consistently based on evidence . . . [and] are evaluated
    infrequently or inadequately.'' The study also found that ``each
    military service and the Office of the Secretary of Defense administer
    dozens of family-focused prevention programs,'' and that instead ``a
    more coordinated, comprehensive, and systematic approach is needed.''
        In these studies, the IOM also found that DOD lacks the performance
    measures necessary to conduct a systematic evaluation of its early
    identification and intervention programs that are tailored to
    servicemembers and members of their families who may already have or
    may be at risk for developing a psychological disorder. The IOM
    recommended that DOD focus on implementing a more ``coordinated,
    comprehensive, and systematic approach'' to support prevention programs
    across the life cycle of military service. What steps can you take to
    ensure DOD is able to coordinate efforts in a more efficient manner so
    that prevention and/or early intervention is able to take place and our
    veterans, servicemembers, and their families are able to receive the
    support they may need?
        Dr. Woodson. Significant DOD and VA resources and attention have
    been, and continue to be, actively deployed to address issues of
    integration, coordination, and quality of care within and across both
    agencies. This focus began most intensely in 2010 with the initiation
    of the Integrated Mental Health Strategy (IMHS) chartered by the DOD
    and VA Health Executive Committee, followed by the development of the
    Interagency Task Force (ITF) on Military and Veteran Mental Health
    established by Executive order in August 2012, and has continued with
    new allocation of efforts. Built upon public health principles, the
    IMHS between DOD and VA is comprised of 28 Strategic Actions designed
    to strengthen access to clinical services, improve continuity of care
    across the Departments, streamline the adoption and implementation of
    evidence-based practices, and ensure our mental health providers are
    delivering state-of-the-art care.
        DOD has furthermore greatly increased access to support needed by
    our servicemembers and their families by quadrupling the size of its
    mental health operations since September 11, 2001, and the number of
    providers has increased by 42 percent since 2005. Nearly 10,000 DOD
    mental health providers and 65,000 network providers are currently in
    place to treat the force and numerous lines of effort have reduced
    stigma associated with mental health care. There were more mental
    health visits (2 million) than servicemembers (1.4 million) last year.
    Since embedding behavioral health care into line units throughout the
    Military Departments, use of mental health services by servicemembers
    has doubled and the need for inpatient psychiatric admissions has
    declined by 25 percent. Further, sleep and nutrition programs are
    seeing success, resulting in lower body mass indexes and other signs of
    overall physical health. It is DOD policy that access to mental health
    care has parity with the availability and provision of other types of
    medical care. Compliance with access standards is continuously
    monitored.

            - A new appointment for routine care must be available within 7
            days. A recent data run suggests that the access performance
            for routine appointments in mental health clinics is 6.5 days.
            - Urgent appointments must be available within 24 hours and an
            emergency appointment must be available on demand. Compliance
            with these standards nears 100 percent.
            - All mental health and multi-disciplinary clinics have an
            established walk-in care process and clinics now encourage
            walk-ins as needed to meet servicemembers' needs in the moment.
            This practice represents a nationwide best practice for
            access--the ability to take walk-ins at the moment of need.
            - DOD has also begun tracking minimal effective care levels;
            for example, tracking the percentage of people who receive 4
            behavioral health visits within 90 days after initial diagnosis
            of PTSD or depression. This helps ensure that evidence-based
            interventions (therapy, medication, or both) are being pursued.

        DOD and VA and other leading professional organizations have been
    collaborating on the development of clinical practice guidelines since
    the early 1990s. In 2010 the Institute of Medicine identified VA and
    DOD as leaders in clinical practice guideline development.
    Implementation of these jointly deployed evidence-based clinical
    practice guidelines improves care by reducing variation in practice and
    systematizing best practices within and between these agencies. Two of
    the most recently developed CPGs, now widely in use are the
    ``Assessment and Management of Patients at Risk for Suicide (2013)''
    and ``Management of Post-Traumatic Stress Disorder and Acute Stress
    Reaction (2010).'' Both of these CPGs provide clear and comprehensive
    evidence-based recommendations incorporating current information and
    practices for practitioners throughout the DOD and VA Health Care
    systems to improve patient outcomes and local management of patients
    with suicide related behavior and management of patients diagnosed with
    PTSD or ASD and are intended to improve patient outcomes and local
    management of patients with one of these diagnoses. Implementation of
    common and coordinated training in evidence-based psychotherapies
    (EBPs) for psychological health conditions (e.g., from fiscal year 2011
    through fiscal year 2013, DOD provided training to over 4,700 staff
    members on EBPs and added 78 new EBP trainers/consultants). Measures of
    effectiveness of treatment for depression, anxiety, and PTSD are now
    required by policy, ``Military Treatment Facility Mental Health
    Clinical Outcomes (2013).'' The Army's Behavioral Health Data Portal, a
    standardized, mobile, and cost-effective standalone system for outcome
    measurement, will be adapted for its best use by all Military
    Departments.
        Other steps taken to ensure DOD is able to coordinate efforts in a
    more efficient manner so that prevention and early intervention are
    able to take place are demonstrated by ongoing joint goal-setting and
    programmatic efforts such as:

            - Completion of a series of joint suicide prevention summits
            with national leaders and support professionals engaged in
            suicide prevention.
            - Execution of two proofs of concept pilots to share mental
            health staff during times of need with follow-on
            recommendations proposed to the HEC. The PH/TBI WG and the
            Credentialing and Privileging work group are implementing
            recommendations in response to lessons learned from these pilot
            programs.
            - Release of two web-based self-help training courses: ``Moving
            Forward'' and ``Parenting for Servicemembers, Veterans, and
            their Families.'' These courses were developed to enhance
            access to and engagement with evidence-based mental health
            resources, and are accompanied by companion mobile
            applications.
            - Dissemination of four required Military Culture Training
            modules on the VA Training Management System and the
            mhs.health.mil web sites in November 2013. The release of these
            modules will increase VA, TRICARE-network, and non-network
            provider knowledge about military ethos and its impact on
            psychological health and treatment.

        Most recently, the Cross-Agency Priority Goal (CAP Goal) on
    servicemembers and veterans mental health was announced on March 10,
    2014, which will continue over a 3-year period. The CAP Goal is led
    jointly by the Deputy Secretary of Veterans Affairs, and the Deputy
    Director of the White House Domestic Policy Council, together with
    senior leaders from DOD, HHS, and the White House policy councils.
    Progress on the CAP Goal will be overseen by the Office of Management
    and Budget (OMB) and the Performance Improvement Council, and CAP Goal
    Leaders are required to report quarterly to OMB on their progress under
    the CAP Goal.

            - The CAP Goal was designed to leverage the successes made by
            the VA, DOD, and HHS in implementing the President's Executive
            order on improving access to mental health services for
            veterans, servicemembers, and their families. Much of this work
            has been carried out by the ITF which is currently co-chaired
            by the DOD Assistant Secretary of Defense for Health Affairs
            (ASD(HA)); the VA Under Secretary for Health; and the HHS
            Administrator for Substance Abuse and Mental Health Services
            Administration. The Task Force will submit its next annual
            report to the President in May 2014.
            - The ITF is currently overseeing a substantial amount of work
            in the mental health space, including much work that ties
            directly to the CAP Goal mandate. Based on feedback from the
            VA, DOD, and HHS, including senior representatives of the ITF,
            the CAP Goal shall be executed within the existing ITF
            structure to ensure that we build on the good work that is
            ongoing under the current ITF structure, and to avoid
            duplication of efforts.
            - The ITF will continue to operate, focusing on the
            requirements of the Executive order, but beginning in April
            2014, the ITF will take on the added responsibility of
            implementing the CAP Goal lines of effort. All together, the
            combined goals and initiatives of the pre-existing IMHS, the
            ITF and CAP Goal will ensure that high-quality care is better
            coordinated and delivered in an efficient and effective manner.

        117. Senator Ayotte. Secretary Woodson, regarding treatment for
    servicemembers with psychological health problems, the IOM found that
    challenges still exist at both DOD and VA. Among the areas of concern
    noted by IOM are inconsistencies in the availability of care, as well
    as a lack of systematic evaluation for treatment programs. How can DOD
    work more efficiently with the VA, as well as within your own
    Department, to ensure that high-quality care is better coordinated and
    delivered in an efficient and effective manner?
        Dr. Woodson. Significant DOD and VA resources and attention have
    been, and continue to be, actively deployed to address issues of
    integration, coordination and quality of care within and across both
    agencies. This focus began most intensely in 2010 with the initiation
    of the Integrated Mental Health Strategy (IMHS) chartered by the DOD
    and VA Health Executive Committee, followed by the development of the
    ITF on Military and Veteran Mental Health established by Executive
    order in August 2012, and has continued with new allocation of efforts.
    Built upon public health principles, the IMHS between DOD and VA is
    comprised of 28 Strategic Actions designed to strengthen access to
    clinical services, improve continuity of care across the Departments,
    streamline the adoption and implementation of evidence-based practices,
    and ensure our mental health providers are delivering state-of-the-art
    care.
        DOD has furthermore greatly increased access to support needed by
    our servicemembers and their families by quadrupling the size of its
    mental health operations since September 11, 2001, and the number of
    providers has increased by 42 percent since 2005. Nearly 10,000 DOD
    mental health providers and 65,000 network providers are currently in
    place to treat the force and numerous lines of effort have reduced
    stigma associated with mental health care. There were more mental
    health visits (2 million) than servicemembers (1.4 million) last year.
    Since embedding behavioral health care into line units throughout the
    Military Departments, use of mental health services by servicemembers
    has doubled and the need for inpatient psychiatric admissions has
    declined by 25 percent. Further, sleep and nutrition programs are
    seeing success, resulting in lower body mass indexes and other signs of
    overall physical health. It is DOD policy that access to mental health
    care has parity with the availability and provision of other types of
    medical care. Compliance with access standards is continuously
    monitored.

            - A new appointment for routine care must be available within 7
            days. A recent data run suggests that the access performance
            for routine appointments in mental health clinics is 6.5 days.
            - Urgent appointments must be available within 24 hours and an
            emergency appointment must be available on demand. Compliance
            with these standards nears 100 percent.
            - All mental health and multi-disciplinary clinics have an
            established walk-in care process and clinics now encourage
            walk-ins as needed to meet servicemembers' needs in the moment.
            This practice represents a nationwide best practice for
            access--the ability to take walk-ins at the moment of need.
            - DOD has also begun tracking minimal effective care levels;
            for example, tracking the percentage of people who receive four
            behavioral health visits within 90 days after initial diagnosis
            of PTSD or depression. This helps ensure that evidence-based
            interventions (therapy, medication, or both) are being pursued.

        DOD and VA and other leading professional organizations have been
    collaborating on the development of clinical practice guidelines since
    the early 1990s. In 2010 the Institute of Medicine identified VA and
    DOD as leaders in clinical practice guideline development.
    Implementation of these jointly deployed evidence-based clinical
    practice guidelines improves care by reducing variation in practice and
    systematizing best practices within and between these agencies. Two of
    the most recently developed CPGs, now widely in use are the
    ``Assessment and Management of Patients at Risk for Suicide (2013)''
    and ``Management of Post-Traumatic Stress Disorder and Acute Stress
    Reaction (2010).'' Both of these CPGs provide clear and comprehensive
    evidence-based recommendations incorporating current information and
    practices for practitioners throughout the DOD and VA Health Care
    systems to improve patient outcomes and local management of patients
    with suicide related behavior and management of patients diagnosed with
    PTSD or ASD and are intended to improve patient outcomes and local
    management of patients with one of these diagnoses. Implementation of
    common and coordinated training in evidence-based psychotherapies
    (EBPs) for psychological health conditions (e.g., from fiscal year 2011
    through fiscal year 2013, DOD provided training to over 4,700 staff
    members on EBPs and added 78 new EBP trainers/consultants). Measures of
    effectiveness of treatment for depression, anxiety, and PTSD are now
    required by policy, ``Military Treatment Facility Mental Health
    Clinical Outcomes (2013).'' The Army's Behavioral Health Data Portal, a
    standardized, mobile, and cost-effective standalone system for outcome
    measurement, will be adapted for its best use by all Military
    Departments.
        Other steps taken to ensure DOD is able to coordinate efforts in a
    more efficient manner so that prevention and early intervention are
    able to take place are demonstrated by ongoing joint goal-setting and
    programmatic efforts such as:

            - Completion of a series of joint suicide prevention summits
            with national leaders and support professionals engaged in
            suicide prevention.
            - Execution of two proofs of concept pilots to share mental
            health staff during times of need with follow-on
            recommendations proposed to the HEC. The PH/TBI WG and the
            Credentialing and Privileging work group are implementing
            recommendations in response to lessons learned from these pilot
            programs.
            - Release of two web-based self-help training courses: ``Moving
            Forward'' and ``Parenting for Servicemembers, Veterans, and
            their Families.'' These courses were developed to enhance
            access to and engagement with evidence-based mental health
            resources, and are accompanied by companion mobile
            applications.
            - Dissemination of four required Military Culture Training
            modules on the VA Training Management System and the
            mhs.health.mil web sites in November 2013. The release of these
            modules will increase VA, TRICARE-network, and non-network
            provider knowledge about military ethos and its impact on
            psychological health and treatment.

        Most recently, the Cross-Agency Priority Goal (CAP Goal) on
    servicemembers and veterans mental health was announced on March 10,
    2014, which will continue over a 3-year period. The CAP Goal is led
    jointly by the Deputy Secretary of Veterans Affairs, and the Deputy
    Director of the White House Domestic Policy Council, together with
    senior leaders from DOD, HHS, and the White House policy councils.
    Progress on the goal will be overseen by OMB and the Performance
    Improvement Council, and CAP Goal Leaders are required to report
    quarterly to OMB on their progress under the CAP Goal.

            - The Goal was designed to leverage the successes made by VA,
            DOD, and HHS in implementing the President's Executive order on
            improving access to mental health services for veterans,
            servicemembers, and their families. Much of this work has been
            carried out by the ITF which is currently co-chaired by the DOD
            ASD(HA); the VA Under Secretary for Health; and the HHS
            Administrator for Substance Abuse and Mental Health Services
            Administration. The Task Force will submit its next annual
            report to the President in May 2014.
            - The ITF is currently overseeing a substantial amount of work
            in the mental health space, including much work that ties
            directly to the CAP Goal mandate. Based on feedback from the
            VA, DOD, and HHS, including senior representatives of the ITF,
            the CAP Goal shall be executed within the existing ITF
            structure to ensure that we build on the good work that is
            ongoing under the current ITF structure, and to avoid
            duplication of efforts.
            - The ITF will continue to operate, focusing on the
            requirements of the Executive order, but beginning in April
            2014, the ITF will take on the added responsibility of
            implementing the CAP Goal lines of effort. All together, the
            combined goals and initiatives of the pre-existing IMHS, the
            ITF and CAP Goal will ensure that high-quality care is better
            coordinated and delivered in an efficient and effective manner.

            unified medical program--fiscal year 2015 budget request
        118. Senator Ayotte. Secretary Hale, in DOD's medical budget
    request, there is $122 million added for expected TRS participation in
    part due to certain ACA mandates. Can you give me more detail about
    these expected additional costs to DOD?
        Mr. Hale. DOD routinely tracks TRS users and costs, so we are able
    to identify changes in this program on a monthly and yearly basis. We
    speculated that the ACA, and specifically the individual mandate
    provision, as well as the DOMA could drive an increase in users and
    costs. We did experience a modest increase in TRS participation in
    fiscal years 2012 and 2013, although we cannot specifically attribute
    that to ACA or DOMA. However, based upon this increasing participation,
    we felt it prudent to request reasonable additional funding for the
    program beginning in fiscal year 2015. We will track participation and
    costs and make appropriate adjustments based upon actual experience.
    Following are high-level explanations of the calculations performed.
    Affordable Care Act (ACA)
        The DOD fiscal year 2015 President's budget request assumes the TRS
    program will be the primary point of entry into the MHS for those
    eligible individuals, based on their own healthcare consumer decision
    criteria, who wish to comply with the ACA established requirements via
    a DOD sponsored program. Based on an analysis of both population and
    price, the fiscal year 2015 estimate cost is approximately $71 million.
    This analysis projects an increase in enrollment of approximately
    27,000 single plans and approximately 14,000 family plans. Projected
    cost to DOD is $906 for a single plan and $3,382 for a family plan.
    These calculations yield a potential additional cost to DOD of $24
    million for single plans and $47 million for family plans.
    Repeal Defense of Marriage Act
        Similarly, DOD fiscal year 2015 President's budget request assumes
    the repeal of DOMA will result in an increase in health care and dental
    costs of approximately $50 million. This estimate is the product of two
    factors: anticipated eligible beneficiary population growth and
    projected average cost per beneficiary. The estimate assumes an
    eligible beneficiary population growth of approximately 17,000 and an
    average cost per beneficiary $2,941.

        119. Senator Ayotte. Secretary Hale, how do they break out?
        Mr. Hale. Following are high-level breakout explanations of the
    calculations performed.
    Affordable Care Act (ACA)
        DOD fiscal year 2015 President's budget request assumes the TRS
    program will be the primary point of entry into the MHS for those
    eligible individuals, based on their own healthcare consumer decision
    criteria, who wish to comply with the ACA established requirements via
    a DOD sponsored program. Based on an analysis of both population and
    price, the fiscal year 2015 estimate cost is approximately $71 million.
    This analysis projects an increase in enrollment of approximately
    27,000 single plans and approximately 14,000 family plans. Projected
    cost to DOD is $906 for a single plan and $3,382 for a family plan.
    These calculations yield a potential additional cost to DOD of $24
    million for single plans and $47 million for family plans.
    Repeal Defense of Marriage Act
        Similarly, the DOD fiscal year 2015 President's budget request
    assumes the repeal of DOMA will result in an increase in health care
    and dental costs of approximately $50 million. This estimate is the
    product of two factors: anticipated eligible beneficiary population
    growth and projected average cost per beneficiary. The estimate assumes
    an eligible beneficiary population growth of approximately 17,000 and
    an average cost per beneficiary $2,941.

        120. Senator Ayotte. Secretary Hale, when did DOD realize that ACA
    mandates would increase DOD healthcare costs?
        Mr. Hale. DOD routinely tracks TRS users and costs, so we are able
    to identify changes in this program on a monthly and yearly basis. We
    speculated that the ACA, and specifically the individual mandate
    provision, as well as the DOMA could drive an increase in users and
    costs. We did experience a modest increase in TRS participation in
    fiscal years 2012 and 2013, although we cannot specifically attribute
    that to ACA or DOMA. However, based upon this increasing participation,
    we felt it prudent to request reasonable additional funding for the
    program beginning in fiscal year 2015. We will track participation and
    costs and make appropriate adjustments based upon actual experience.
                                     ______

                    Questions Submitted by Senator Roy Blunt
                       religious freedom in the military
        121. Senator Blunt. Secretary Wright, many members of our military
    are people who profess a particular religious faith. Their ability to
    practice and freely express their faith is vital for their well-being
    and morale and essential as a matter of the First Amendment. Do you
    agree that a climate of uncertainty regarding a servicemember's ability
    to practice or express their faith is harmful for servicemembers?
        Ms. Wright. Yes, that is why DOD is preparing additional training
    materials to clarify issues regarding the First Amendment right to the
    free exercise of religion of all military personnel. We place a high
    value of the rights of personnel and their families to observe the
    tenets of their religious beliefs and recognize that the free exercise
    of religion is an important element of the operational readiness and
    well-being of our force.

        122. Senator Blunt. Secretary Wright, for the second year in a row,
    Congress passed provisions in the NDAA requiring DOD to respect the
    conscience rights and religious expression of servicemembers. The NDAA
    for Fiscal Year 2014 required implementing of regulations by 90 days
    after enactment. That deadline was this week and we still do not have
    complete implementing regulations from DOD outlining how DOD will
    comply with the provisions outlined in the law. Please provide a status
    update.
        Ms. Wright. DODI 1300.17, ``Accommodation of Religious Practices
    Within the Services,'' was updated January 22, 2014, and DODI 1304.28,
    ``Guidance for the Appointment of Chaplains for the Military
    Departments,'' was updated March 20, 2014. These two Instructions
    incorporated applicable portions of the explicit language in the NDAA
    for Fiscal Year 2014 protecting the conscience rights and religious
    expressions of servicemembers and specifically chaplains.

    recent incident at the air force academy regarding religious expression
        123. Senator Blunt. Secretary Wright, the Air Force Academy said in
    a March 14 press release that their emphasis is on core values and
    following DOD policy. Please explain the Air Force's understanding of
    DODI 1300.17, which references the NDAA for Fiscal Year 2014
    requirement for the DOD to respect a servicemember's expression of
    religious beliefs.
        Ms. Wright. Consistent with Department of Defense Instruction
    (DODI) 1300.17, ``Accommodation of Religious Practices in the DOD
    (section 4.a),'' the Air Force protects the rights of its airmen to
    observe religious practices in accordance with the tenets of their
    respective religions or to observe no religion at all. In accordance
    with NDAA 2014, section 533(a), Air Force policy directs commanders to
    approve requests for religious accommodation unless they could have an
    adverse impact on mission accomplishment, military readiness, unit
    cohesion, standards, and discipline (cf. AFI 52-101, 4.1).
        In order to incorporate the expanded language of NDAA 2014, as
    articulated in the January 22, 2014, update to DODI 1300.17, the Air
    Force is reviewing AFI 52-101 and other relevant policies. With regard
    to the implementation of NDAA 2014, section 533(b), the protection of
    chaplain decisions relating to conscience, moral principles, or
    religious beliefs, DODI 1304.28, ``Guidance for the Appointment of
    Chaplains,'' was updated on March 20, 2014.
        The Air Force is also revising its religious accommodation policies
    to reflect the public law and the DODI 1304.28. The revision of AFI 52-
    101 will state that no servicemember may require a chaplain to perform
    any rite, ritual, or ceremony that is contrary to the conscience, moral
    principles, or religious beliefs of the chaplain. Further, the policy
    will state that no servicemember may discriminate or take any adverse
    personnel action on the basis of the refusal by the chaplain to comply
    with a requirement prohibited by public law and the DODI.
        Finally, the Air Force Chief of Staff hosted a Religious Freedom
    Focus Day on April 28, 2014, in Pentagon City, VA, for Air Force senior
    leaders. The event focused on discussion and thorough review of law,
    policy, practice, standards, complaints, and education concerning
    religious freedoms in the Air Force.

     DEPARTMENT OF DEFENSE AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR
                   2015 AND THE FUTURE YEARS DEFENSE PROGRAM

                                  ----------

                            WEDNESDAY, APRIL 9, 2014

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

      TO CONTINUE TO RECEIVE TESTIMONY ON THE ACTIVE, GUARD, RESERVE, AND
                          CIVILIAN PERSONNEL PROGRAMS

        The subcommittee met, pursuant to notice, at 9:56 a.m. in
    room SR-222, Russell Senate Office Building, Senator Kirsten E.
    Gillibrand (chairwoman of the subcommittee) presiding.
        Committee members present: Senators Gillibrand, Hirono,
    Kaine, King, Ayotte, and Graham.

     OPENING STATEMENT OF SENATOR KIRSTEN E. GILLIBRAND, CHAIRWOMAN

        Senator Gillibrand. The subcommittee meets today to receive
    testimony from the military Services on military and civilian
    personnel programs contained in the administration's Defense
    Authorization Request for Fiscal Year 2015 and the Future Years
    Defense Program (FYDP).
        Before we begin, I want to acknowledge the services being
    held today at Fort Hood, TX. Our thoughts and prayers are with
    the victims of the tragedy that occurred there last week and
    their families. We send our soldiers, airmen, sailors, and
    marines into harm's way, but we do not expect the harm to come
    from their brothers and sisters in arms here in America. It is
    always shocking and saddening when a tragedy like this happens
    at home.
        I thank all the witnesses for being here today.
        Today we have two panels. The first panel consists of the
    uniformed personnel chiefs responsible for military and
    civilian personnel matters within the Services. We will discuss
    not only their plans and programs for fiscal year 2015, but
    specific budget items in furtherance of the subcommittee's
    oversight. The markup of the 2015 defense bill is not far away,
    and your statements and testimony today are extremely important
    as we prepare for the legislative year ahead.
        Our witnesses are Lieutenant General Howard B. Bromberg,
    U.S. Army, Deputy Chief of Staff, G-1; Vice Admiral William F.
    Moran, U.S. Navy, Chief of Naval Personnel, N-1; Lieutenant
    General Samuel D. Cox, U.S. Air Force, Deputy Chief of Staff
    for Manpower, Personnel and Services, A-1; and Lieutenant
    General Robert E. Milstead, Jr., U.S. Marine Corps, Deputy
    Commandant, Manpower and Reserve Affairs.
        The second panel consists of senior enlisted members of the
    Services. I will introduce them after the first panel
    concludes.
        As I stated 2 weeks ago at our hearing with senior
    Department of Defense (DOD) leaders, I have grave concerns
    about this budget, which DOD submitted at a time of tremendous
    challenge and uncertainty for the Nation and the military.
    Military personnel funding, including funding for health care
    for servicemembers, their families, and retirees, school and
    commissary benefits, totals $176.6 billion in the fiscal year
    2015 request. While this represents a slight decline over last
    year's total, the portion of the total budget devoted to
    personnel has risen. In fact, this year's budget supports
    36,000 fewer Active Duty servicemembers than last year's.
        DOD's budget request contains numerous proposals intended
    to slow the growth of personnel costs, which would yield over
    $2 billion in savings in fiscal year 2015. These savings have
    been reallocated to the operating and modernization accounts. I
    hope that today we will learn more about the details of these
    proposals. Although we have yet to see all the details, we know
    that each proposal will have significant impact in and of
    itself. Yet, I am especially concerned about their cumulative
    effect on servicemembers, especially on junior members of the
    force and their families. As our hearing with DOD revealed, it
    will be difficult for many of us to support these proposals.
        I hope our witnesses today will tell us why these
    compensation proposals are needed, what will have to be cut if
    Congress does not support them, and why they cannot wait for
    the Military Compensation and Retirement Modernization
    Commission (MCRMC) to report next February, which is tasked
    with looking at these very issues in a comprehensive way. I am
    particularly interested in hearing from the senior enlisted
    members on the second panel about how these proposals will
    impact the enlisted force and what implications they foresee if
    we do not make all of these changes.
        DOD and the Services continue the process of removing
    barriers to service by women, an effort I strongly endorse.
    While the Army and Marine Corps are opening positions in
    occupations already open to women, the real challenge moving
    forward will be opening occupations such as infantry, that are
    currently closed. A little more than a year ago, Secretary
    Panetta and General Dempsey rescinded the ground combat
    exclusion policy and gave the Services and the Special
    Operations Command until January 2016 to open all positions to
    service by women or to request an exception to keep certain
    positions closed. At the time, Secretary Panetta said: ``Our
    purpose is to ensure that the mission is carried out by the
    best qualified and the most capable servicemembers, regardless
    of gender and regardless of creed and beliefs. If members of
    our military can meet the qualifications for a job--and let me
    be clear, I am not talking about reducing the qualifications
    for the job--then they should have the right to serve.'' I
    strongly endorse this principle that the best qualified
    servicemember, regardless of gender, should be able to compete
    for even the most difficult jobs.
        I hope that the Services, particularly the Army and Marine
    Corps, are taking a deliberate and measured approach to
    validating occupational standards. I believe that a
    scientifically rigorous process that creates gender-neutral
    standards will best serve our military and our servicemembers,
    both men and women. I hope our witnesses today can tell us
    where they are in implementing the Secretary's directive to
    open all military occupations to women, how they are validating
    occupational requirements, and whether they believe this will
    be done on time.
        I remain concerned about sexual assaults in the military. I
    was disappointed that despite the support of the majority of my
    colleagues, we were not given the opportunity to vote on
    passage of my proposal to make sure that decisions to prosecute
    serious offenses are made by trained, professional, and
    independent lawyers rather than commanders who do not have the
    training or perspective to make these decisions. But I have not
    given up on making this change that our survivors have told us
    will make a difference when it comes to reporting the crime.
        I will also continue my efforts to make sure that the
    changes that have been legislated are implemented in an
    effective manner and will continue to work toward initiatives
    to better address this scourge in our military.
        Senator Graham?

                  STATEMENT OF SENATOR LINDSEY GRAHAM

        Senator Graham. Thank you.
        I will join with the chairwoman of the subcommittee to
    report to the full committee a Personnel Subcommittee markup
    that defers to the MCRMC. I think it is very important that we
    allow this commission to work and that we not make any
    structural changes to personnel until the commission report is
    back.
        Having said that, personnel costs are about half the budget
    of DOD, and there will have to be reforms in retirement. They
    just need to be prospective.
        We will have to look at the sustainability of TRICARE. On
    the Reserve side, I am very much interested in what we can do
    to not only manage personnel costs but make sure that our Guard
    and Reserve members are benefiting from programs that already
    exist like TRICARE. One of the more significant accomplishments
    I have been involved in is making TRICARE available to
    guardsmen and reservists for a fee and their families. I hope
    that is helping with recruiting and retention and readiness.
        Before Senator Clinton and I were able to come together on
    legislation, guardsmen and reservists were not eligible for
    TRICARE. If you were called to Active Duty, you would have to
    get out of your network if you had one, and your family would
    have to change doctors. When you were demobilized, you would
    have to switch back if you had a health care provider. That
    created a lot of disconcerting events for families. Now TRICARE
    is available to all guardsmen and reservists, and I think that
    has been a good step toward readiness.
        I am very proud of the reforms that Senator Ayotte and
    others have made to the way we report sexual assaults in the
    military. We are trying to have the most victim-friendly
    reporting system of any jurisdiction in the country. A judge
    advocate general (JAG) in the future will be assigned to every
    victim. When a commander makes a decision regarding the four
    major sexual assault crimes in the military, if the JAG
    recommends prosecution and the commander says no, that is
    automatically taken up with the Service Chief to review the
    case, which I think is a good way to let the commanders know
    how seriously we take these allegations. Also, if the commander
    and the JAG recommend not to prosecute where there is unanimity
    between the lawyer and the commander, that has to be reviewed
    by the commander's next chain of command, which I think is
    appropriate.
        I could not disagree with Senator Gillibrand's solution to
    this problem more. She is going to continue. I am certainly
    going to continue to stop what I think would be an incredibly
    bad thing for the military, to remove commanders from having
    responsibility, not just over sexual assaults but about 40
    percent of the Uniform Code of Military Justice (UCMJ).
        I believe we have the finest military in the world and it
    is for a reason, because our commanders are responsible for
    delivering well-trained, ready troops, and they have to make
    incredible decisions of life and death. At the end of the day,
    they have the ability. They need the ability to discipline the
    force. I never want a situation to occur in the military where
    there was a sexual assault or an alleged sexual assault in the
    barracks and the commander says that is no longer my problem.
    That would be devastating for any unit in the Marine Corps,
    Army, Navy, and Air Force. I think those who are in the
    military understand exactly what I am saying. I will never give
    into that because I think it will destroy that continuity of
    command.
        Finally, about military justice. No matter who recommends
    the case to go forward, I do hope that Members of the Senate
    and the House will understand that we have an independent
    judicial system, and verdicts are not designed to please me or
    anyone else. They are designed to render justice, and I hope we
    will respect the integrity of the court-martial system, which
    is patterned after the Federal Rules of Evidence, and that when
    somebody is tried in the military, that the presumption of
    innocence will continue, that the victim will have their say,
    that they will have legal advice that will be consistent with
    allowing them to come forward, that we are changing the Article
    32 process so the victim does not have to be called in the
    Article 32 hearing, which I think, working with Senator Boxer,
    is a good change. But at the end of the day, everybody accused
    of a crime anywhere needs to make sure they have a fair trial.
        Thank you very much. I look forward to the hearing.
        Senator Gillibrand. Thank you, Senator Graham.
        I now invite your opening statements.
        Lieutenant General Bromberg.

       STATEMENT OF LTG HOWARD B. BROMBERG, USA, DEPUTY CHIEF OF
                         STAFF, G-1, U.S. ARMY

        Lieutenant General Bromberg. Good morning, Chairwoman
    Gillibrand, Senator Graham, distinguished members of this
    subcommittee. Thank you for the opportunity to appear before
    you on behalf of America's Army.
        As we begin our 13th straight year of war with over 151,000
    deployed or forward stationed today, we stand at a pivotal
    moment in our history. Due to budgetary reductions, we are
    executing an historic drawdown of both our military and
    civilian personnel while in an unpredictable global security
    environment. It is imperative our drawdown efforts be conducted
    in a careful and responsible manner that maintains the highest
    quality All-Volunteer Force while ensuring the readiness of our
    Army for today and for the future.
        Our abilities to meet the challenges of the current and
    future operational environment depends upon our efforts to
    recruit and retain the All-Volunteer Force. As we draw down the
    Army, we continue to bring in high quality men and women into
    the force to grow our future leaders or retain the most
    talented soldiers with the experience and skills necessary to
    meet our future needs. Our recruiting operations will face
    greater challenges as a greater percentage of America's youth
    become ineligible for military service.
        As the Army looks to the future, we must take advantage of
    all of America's diverse talents. We are expanding
    opportunities for women by opening up previously closed
    positions and career paths, while ensuring all soldiers can
    meet the required physical and professional standards.
        The Army is committed to helping soldiers, veterans, and
    families transition to a civilian life, career ready, with
    established networks of enablers connecting them with
    employment, education, and health care. We recognize these
    soldiers as soldiers for life and in many cases want to
    encourage their continued service in the Reserve component.
        We have made significant strides in this past year
    eliminating backlogs in the Integrated Disability Evaluation
    System (IDES) and ensuring that soldiers receive the benefits
    they deserve. We successfully partnered with the Department of
    Veterans Affairs to streamline the disability system and
    improve coordination for health care, compensation, and
    benefits for our medically separated or retired soldiers.
        Response to and prevention of sexual assault and harassment
    continue to be the Army's top priority with a goal to change
    our culture and reduce and ultimately eliminate this crime from
    our ranks. We have implemented an unprecedented number of
    programs and policy initiatives designed to improve our sexual
    harassment and assault response program, and I am confident
    that our efforts are putting the right processes and procedures
    in place to ensure a climate of safety, trust, and respect for
    every member of the Army family, while enhancing accountability
    of every member of the Army team.
        Our efforts to increase individual and collective
    resilience and improve readiness have made significant strides
    in the fight against substance abuse, suicide, and stigma
    reduction.
        As the Army becomes stronger, your support is essential to
    our efforts as we draw down thoughtfully, accurately, and
    efficiently while maintaining readiness and caring for all of
    the members of the Army team.
        Chairwoman Gillibrand, Senator Graham, members of the
    subcommittee, thank you for your continued support.
        I look forward to your questions.
        [The prepared statement of General Bromberg follows:]
               Prepared Statement by LTG Howard B. Bromberg, USA
                                  introduction
        Chairwoman Gillibrand, Senator Graham, distinguished members of
    this subcommittee, I thank you for the opportunity to appear before you
    on behalf of America's Army. As the U.S. Army begins its 13th straight
    year of war, it also stands at a pivotal moment in history. Throughout
    our Nation's history, the United States has drawn down military forces
    at the close of every war. Today, however, we are in the process of
    rapidly drawing down Army forces before the war is over, while
    remaining in an unpredictable global security environment. It is
    imperative our drawdown efforts be conducted in a careful and
    responsible manner that maintains the highest quality All-Volunteer
    Force while ensuring the readiness of our Army for today and 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 selflessly served with courage, and honor. 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.
        Thank you for your steadfast commitment to support our personnel
    initiatives to ensure the sustainment and well being of our All-
    Volunteer Force.
                               strategic overview
        The Army remains engaged in our Nation's longest conflict of more
    than 13 years with nearly 1.5 million soldiers having deployed once and
    more than half a million having deployed multiple times. Today more
    than 66,000 U.S. Army soldiers are deployed to contingency operations,
    with nearly 32,000 soldiers supporting operations in Afghanistan. In
    addition, there are approximately 85,000 soldiers forward stationed
    across the globe in nearly 150 countries worldwide. Our soldiers,
    civilian employees, and family members remain the strength of our
    Nation.
        During this time of uncertain budget and security environments, the
    Army must responsibly reduce endstrength while reorganizing into a
    force that continues to remain prepared to respond to new threats. To
    maintain an All-Volunteer Force of the highest quality soldiers and
    achieve our end-strength goal, the Army must balance force shaping
    across accessions, retention, promotions, voluntary and involuntary
    separations, and natural losses. Consistent with the 2012 Defense
    Strategic Guidance, we are in the process of drawing down Active Army
    end strength from a wartime high of 570,000 to 490,000--a 14 percent
    cut--by the end of fiscal year 2015. Simultaneously, we are expanding
    opportunities for women in the Army by opening up previously closed
    positions and career paths, while ensuring all soldiers can meet the
    required physical and professional standards. We continue to prioritize
    the response to and elimination of sexual assault and harassment in the
    Army, and through the combined efforts of our military and civilian
    leaders at all levels, we're implemented an unprecedented number of
    program and policy initiatives to eradicate this crime from our ranks.
    Our efforts to enhance individual and collective resilience and improve
    readiness also made strides in the fight against substance abuse,
    suicide and stigma reduction encouraging all to seek help.
    Additionally, we have made significant progress this past year in
    eliminating backlogs in the Integrated Disability Evaluation System and
    ensuring that soldiers receive the benefits they deserve.
        Over the last year, we have increased assistance to our soldiers
    who transition from their military careers. This past year, we
    successfully partnered with the Department of Veterans Affairs to
    streamline the disability system and improve coordination for health
    care, compensation, and benefits for our medically separated and
    retired soldiers. Our All-Volunteer Force deserves a quality
    transition, and this year approximately 87,000 soldiers will leave the
    Active Army and approximately 57,000 will leave the Reserve component
    in pursuit of other endeavors. As they reintegrate into their
    communities, we will ensure they are career-ready, with opportunities
    to use their skills and experience. As we move forward, our efforts
    must remain focused on our most precious resource, our soldiers,
    families, civilian employees, and veterans.
                             drawdown/end strength
        Under the provisions of the fiscal year 2015 budget request, the
    Total Army will reduce to 980,000 soldiers--450,000 in the Active
    component, 335,000 in the Army National Guard (ARNG), and 195,000 in
    the U.S. Army Reserve (USAR) by fiscal year 2017. At this size and
    component mix, the Army will be able to execute the 2012 Defense
    Strategic Guidance, but it will be at significant risk. However, under
    full sequestration funding levels in fiscal year 2016, the Army will be
    required to further reduce endstrength to 420,000 in the Active
    component, 315,000 in the ARNG, and 185,000 in the USAR by fiscal year
    2019. These projected end strength levels would not enable the Army to
    execute the 2012 Defense Strategic Guidance.
        There is no single force shaping method among the choice of
    accessions, retention and separations that will achieve the Army's end
    strength goals, and we will be required to use involuntary separation
    measures. Reduction programs will focus both quantitatively on soldier
    populations where projected inventories, by grade and skill, exceed
    future requirements, and qualitatively by assessing soldiers' potential
    for future service. The National Defense Authorization Acts for Fiscal
    Year 2012 and Fiscal Year 2013 provided several authorities to help the
    Army shape the force over the drawdown period, along with the
    flexibility for application against specific grade and skill
    requirements. To date, we've separated 239 retirement eligible
    lieutenant colonels and colonels using a Selective Early Retirement
    Board, and approximately 1,100 noncommissioned officers using the
    Qualitative Separation Program. An Officer Separation Board and
    Enhanced Selective Early Retirement Board are currently in session and
    will select up to 2,000 captains and majors for separation. While we
    will lose some combat-seasoned soldiers through involuntary separation
    boards they are required along with reduced accession levels,
    competitive selection boards, and precision retention to ensure the
    Army will balance the force, achieve end strength goals, and retain our
    most talented soldiers for the future.
        As the Army implements its drawdown strategy to balance the force
    and sustain capability and readiness, we are extremely sensitive to
    ensuring that we treat our All-Volunteer Force with dignity and respect
    recognizing the service and sacrifices of our soldiers and their
    families. While the Army will not be able to achieve sufficient
    reductions in end strength through natural losses and normal attrition
    alone, the Army's priority remains retaining soldiers with the greatest
    potential for continued service while encouraging quality soldiers
    transitioning from the Active component to continue to serve in the
    Reserve components.
                recruiting and retention (officer and enlisted)
        Our ability to meet the challenges of the current and future
    operational environment depends on our ability to recruit and retain
    the All-Volunteer Army. Our recruiting mission is currently at 57,000--
    the lowest level possible to maintain readiness. As we drawdown the
    Army, we continue to bring high quality men and women into the force to
    grow our future leaders while retaining the most talented soldiers with
    the experience and skills necessary to meet our future needs. Our
    recruiting operations, however, will face greater challenges as the
    percentage of America's youth ineligible for military service continues
    to grow. In today's environment, fewer than one in four 17- to 24-year-
    olds are eligible to serve in the Army.
        Despite the current challenges of ongoing conflict, future drawdown
    plans, and budgetary constraints, the Active Army and the USAR once
    again exceeded their enlisted retention missions in fiscal year 2013.
    The ARNG achieved 86 percent of their fiscal year 2013 retention
    mission. The Guard is on track to achieve the fiscal year 2014
    reenlistment mission due to rejuvenated emphasis on retention by senior
    leadership, streamlined retention counseling and other business
    processes.
        The Active component achieved its fiscal year 2013 recruiting
    mission and accessed more than 98 percent high school diploma
    graduates, with the lowest number of Armed Forces Qualification Test
    Category IV enlistments ever, at just .17 percent. The Army also
    achieved over 99 percent of requirements for each Military Occupational
    Specialty. In addition, 62.4 percent of recruits scored between 50-99
    percent on the Armed Forces Qualification Test, exceeding 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 2013 of 1.2
    percent.
        Although we are currently on track to achieve the fiscal year 2014
    recruiting mission, with the exception of the USAR mission, recruiting
    is expected to become increasingly difficult. The primary concern in
    recruiting for the USAR is the difficulty in finding prior service
    soldiers willing to serve in units that are in remote geographic areas
    where vacancies exist. Our strategy to attract prior service soldiers
    is to engage those Active component soldiers earlier in the
    transitioning process by appealing to their sense of service and valued
    contribution through continued service and remaining a ``Soldier for
    Life.'' We are changing the paradigm in how we share opportunities
    available for Active component soldiers who want to transition to the
    Reserve component by allowing recruiters to speak with soldiers 365
    days prior to their planned transition date.
        The USAR is also placing renewed emphasis on their Employer
    Partnership Program to attract soldiers. Employers in the program
    (including Fortune 500 companies) offer soldiers interviewing and
    hiring preference. The USAR is focusing an advertising campaign (pilot)
    on the program in Elwood, IL, the city with the most USAR vacancies, in
    an effort to evaluate the program's effectiveness as a recruiting tool.
        Employing skilled and experienced soldiers in the USAR and ARNG is
    beneficial to the Army as well as soldiers and their families. Our
    focus is stressing opportunities for continued benefits, and ensuring
    that the soldier remains a valued member of the Army team.
        Entering fiscal year 2014, the combined Active and Reserve
    components will spend slightly over $528 million in enlistment and
    retention incentives (bonuses, loan repayment, and college kickers).
    This is a sharp reduction over the last 3 years. In 2012, the Army paid
    $1.08 billion in incentives, and in 2013 we paid $838 million. Further,
    as a result of prior year success, the percentage of Active 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. At the start of fiscal year 2014, only Military
    Occupational Specialties 35P (Signal Intelligence Linguist) and 25S
    (Satellite Communications) and selected Ranger and Airborne skills
    receive an enlistment bonus for the Active Army. For retention, Special
    Operations, Rangers, and Linguists were the primary Military
    Occupational Skills that were targeted to receive selective retention
    bonuses. A tougher future recruiting environment may require additional
    resources for incentives.
        Compensation is a critical element in the Army's ability to recruit
    and retain a quality All-Volunteer Force. We are extremely grateful for
    the high quality care and compensation our Nation has provided to our
    soldiers over the last decade. As we continue to examine compensation
    reform, it is essential to review and consider the impact of all
    proposals on the future of the All-Volunteer Force. The Army supports a
    holistic and comprehensive approach that reforms military compensation
    in a fair, responsible, and sustainable way. The manner in which we
    treat our soldiers and families as we draw down the Army will set the
    conditions for our ability to recruit in the future.
                            army civilian personnel
        As the Army evolves, we are undertaking significant changes in the
    way we manage and develop our civilian workforce. We must focus on
    preserving the most important capabilities of this critical element of
    our Total Force. The Army will continue to make investments in talent
    management and leadership development of our Civilian Corps as we
    resize and reshape to meet future Army requirements.
        Similar to their uniformed counterparts, Army civilian employees
    are required to demonstrate competence, technical proficiency and
    professional values to achieve mission and individual success. Over the
    past 3 years, the Army has implemented a number of changes to improve
    training, educational and experiential opportunities for the civilian
    workforce. Functional training is critical to ensure that Army civilian
    employees can successfully perform their assigned duties. Focused
    leader development, improvements to the Civilian Education System and
    continued maturity of the Senior Enterprise Talent Management Program
    are all designed to build a more professional and competency-based
    civilian workforce. We have aligned our entire civilian workforce into
    31 career programs, which allows all of our civilian employees to see a
    clear path and understand the competencies required for career
    progression. We are implementing an Army Acculturation Program for
    civilian employees new to the Army, which we anticipate will increase
    the retention rate of these talented individuals, and we are providing
    opportunities for the Army's civilian workforce to benefit the Army's
    resiliency building programs.
        As the military force is reduced and the Army navigates an era of
    funding constraints, we will reduce the Civilian workforce. We are in
    the process of drawing down our Civilian workforce from a wartime high
    of 285,000 in fiscal year 2010, down to an estimated 263,000 by the end
    of fiscal year 2015, with additional reductions projected through
    fiscal year 2019. We will use all available workforce shaping tools
    such as Voluntary Early Retirement Authority (VERA) and Voluntary
    Separation Incentive Pay (VSIP) to reduce turbulence in our Civilian
    workforce, while retaining the skills we need to meet mission
    objectives. The goal is to use Reduction in Force (RIF) as a last
    resort. Reductions are linked to changing Army workload priorities,
    military missions and available funding. For example, unit
    inactivations will drive changes to training, training support and
    installation support requirements supported by our civilian personnel.
    We will have to adjust in order to continue to invest resources into
    higher priority missions. Additionally, to achieve the goal established
    by Secretary of Defense to decrease the overhead and administrative
    staff in Management Headquarters Activities, the Army will continue to
    reduce these staffs. This work began in earnest in 2012 and will
    continue over the next 5 years. We must be certain our civilian
    workforce drawdown is done responsibly, with deliberate planning, to
    ensure we have the best talent possible to meet future challenges.
                         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. 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 Army's Transition Assistance Program, known as the Army Career
    and Alumni Program (ACAP) made tremendous strides this past year to
    improve the assistance services provided to transitioning soldiers. The
    Army developed a Transition Campaign Plan that provides the blueprint
    for Army Transition over fiscal year 2014-2015 and incorporates
    ``preparation'' for Transition, ``connection'' to meaningful employment
    and education opportunities during transition.
        To support this expansion of transition services, we hired 65
    education advisors, bringing the total number of Army wide transition-
    related service providers to nearly 700. We established a new ACAP
    center in Kuwait and created 21 regionally-located transition support
    teams to assist the USAR and ARNG.
        In fiscal year 2013, the Army transitioned 144,000 soldiers under
    the new, re-engineered ACAP. This marks the first year the program was
    able to record an entire year's worth of data in order to analyze
    trends and allocate resources accordingly. Veterans Opportunity to Work
    (VOW) to Hire Heroes Act of 2011 requirements for all transitioning
    soldiers include: receiving preseparation counseling, including
    attending two Department of Veterans Affairs (VA) Benefits Briefings,
    and participating in the Department of Labor Employment Workshop,
    unless exempt. Our VOW compliance is rapidly increasing each month as
    the program reaches across the Total Force and our additional resources
    are fully emplaced.
                                  soldier 2020
        As the Army looks to the future and recruiting challenges increase,
    we must take advantage of the best talent, without regard to gender. To
    ensure the success of our soldiers of 2020 as we expand opportunities
    for women, the Army is proceeding with an integrated, incremental, and
    scientific approach that preserves unit readiness, cohesion, and
    morale. The Army is committed to ensuring all soldiers are provided
    full career opportunities to reach their highest potential and enhance
    overall Army readiness. This initiative will positively impact
    readiness tremendously by allowing men and women to have the same
    career opportunities across a broad spectrum of units, positions and
    occupations.
        Over the last year, the Army opened to women approximately 4,500
    positions within 17 Active component Brigade Combat Teams (BCTs) and 9
    Army Guard BCTs. In November 2013, the Army opened approximately 3,600
    13A (Field Artillery Officer) positions in the Active Army and Reserve
    component. As of March 10, 2014, women have been assigned to 169
    officer and 477 enlisted positions that opened within 26 BCTs. The U.S.
    Special Operations Command opened approximately 1,500 positions to
    women within select aviation specialties in Special Operations Aviation
    Regiment. On January 17, 2014, the Secretary of Defense notified
    Congress of the Army's intent to open approximately 33,000 positions in
    132 already open occupations to women.
        In April 2013, the first female soldiers completed training as
    Multiple Launch Rocket System (MLRS) Crewmembers, with the best female
    graduate scoring 100 percent on all examinations--the highest score to
    date for any soldier. Female Field Artillery Officers have been
    assigned to MLRS and High Mobility Artillery Rocket System units since
    2012, and recently 10 women have been assigned to cannon battalions in
    Brigade Combat Teams (BCTs). Women are proving themselves in positions
    that have been opened to them.
       sexual harassment/assault response and prevention (sharp) program
        The response to and prevention of sexual assault and harassment are
    top Army priorities with a goal to reduce and ultimately eliminate this
    crime from our ranks. Through the combined efforts of our military and
    civilian leaders at all levels, we've implemented an unprecedented
    number of program and policy initiatives designed to improve our Sexual
    Harassment/Assault Response and Prevention Program. These initiatives
    are aligned with the Army's five imperatives to: (1) prevent offenders
    from committing crimes, provide compassionate care for victims and
    protect the rights and privacy of survivors; (2) ensure every
    allegation is reported, thoroughly and professionally investigated and
    appropriately acted upon; (3) create a positive climate and environment
    of trust and respect in which every person can thrive and achieve their
    full potential, and continually assess the command climate; (4) hold
    every individual unit and organization and every commander
    appropriately accountable for their behavior, actions and inactions;
    (5) ensure the chain of command is fully engaged and centrally
    responsible and accountable for solving the problems of sexual assault
    and sexual harassment within our ranks and for restoring trust of our
    soldiers, civilians, and families. Some of the key initiatives include
    the following:

             Changing culture is essential to our success. To
            change culture at the lowest level, the Army now requires SHARP
            goals and objectives in all officer and noncommissioned officer
            (NCO) evaluations; requires Army leaders to assess Command
            Climate and requires 360 degree assessments as an additional
            tool for raters to conduct developmental dialogue with O-5 and
            O-6 level commanders. These three significant changes will
            enable leadership at various levels to remain engaged in the
            conduct of their subordinates and will improve accountability
            throughout the chain of command.
             The Army established more stringent screening criteria
            and background checks for those serving in positions of
            significant trust, including Sexual Assault Response
            Coordinators (SARCs), Victim Advocates (VAs), drill sergeants,
            Advanced Individual Training platoon sergeants and recruiters.
            The new processes and procedures are designed to enhance the
            soldiers' professionalism and ensure commanders are actively
            selecting those who are best suited for their roles and
            responsibilities. To date, we have reassigned or removed 588
            soldiers who were not best-suited to serve in these positions
            of trust.
             The Army enhanced its capability to investigate and
            prosecute sexual offenses by establishing a Special Victim
            Capability Program which is comprised of 23 special victim
            prosecutors, 22 sexual assault investigators and 28 special
            victim paralegals at 19 installations worldwide. We've also
            trained 105 active duty and more than 120 Reserve judge
            advocates through our Special Victim Counsel Program, which was
            established in October 2013. We've conducted three live courses
            and one distance learning course, each involving about 22 hours
            of training, and we have begun to receive extremely positive
            feedback from victims.
             The Army implemented new policy to ensure that any
            final decision to retain a member convicted of a sex offense is
            fully informed and determined at the secretariat level. This
            same policy also prohibits the overseas assignment or
            deployment of any soldier convicted of a sex offense.

        In addition to ensuring compliance with the 2013 and 2014 National
    Defense Authorization Acts and Secretary of Defense directives, these
    initiatives are reinforced at every Professional Military Education
    (PME) school that a soldier attends throughout his or her career.
        We are seeing the results of our efforts to achieve a cultural
    change in the Army. Based on preliminary data, in fiscal year 2013,
    there were 2,149 reports of sexual assault, representing an increase of
    51 percent over fiscal year 2012 numbers (85 percent were restricted;
    15 percent were unrestricted). We believe this unprecedented increase
    in reports is due to a growing level of confidence in our response
    system and a sign that victims have increased confidence in their chain
    of command and in the Army's commitment to treat and care for them.
        Our assessment of increased confidence is supported by the fact
    that there are a growing number of reports made by victims about
    incidents that took place prior to joining the military. For example,
    in fiscal year 2013, approximately 5.3 percent of sexual assault
    reports from soldiers were for incidents that occurred prior to their
    military service. In fiscal year 2012, the reporting of sexual assaults
    prior to military service was 2 percent. Additionally, in fiscal year
    2013 more than 15 percent of reports were made more than a year after
    the assault occurred.
        The Army continued its efforts to place full-time military and
    civilian SHARP professionals at brigade and equivalent-level units.
    During the past year, we hired 174 new Civilian SHARP personnel to
    augment military personnel serving in brigade-level SARC/VA positions.
    To date, more than 12,800 individuals have been credentialed to serve
    as a SHARP professional in accordance with the 2012 National Defense
    Authorization Act. Additionally, the Army SHARP Program is in the
    process of transitioning from contract-led mobile training teams to
    Department of Army Civilian-led mobile training teams. We now have 12
    Department of Army civilian trainers assigned and anticipate hiring 34
    more this year.
        We have realized the need to professionalize our personnel serving
    in SHARP positions. To ensure we do so, the Army has piloted a
    centralized SHARP Schoolhouse in fiscal year 2014, with the intent of
    standing up a permanent schoolhouse at the end of fiscal year 2014 or
    beginning of fiscal year 2015. The SHARP Schoolhouse incorporates
    instruction from the Army's Criminal Investigation Division, Office of
    The Judge Advocate General, Office of The Surgeon General and others,
    to better prepare full-time SARCs and VAs for the situations they
    typically encounter. The comprehensive 8-week training at the SHARP
    schoolhouse develops high quality personnel who can establish and
    maintain the confidence and trust of the soldiers they support. The
    SHARP Schoolhouse graduated its first class of 32 individuals this
    month.
        Additionally, we are assessing the efficacy of this year's new
    initiatives as well as ones that were previously implemented. Through a
    combination of data collection, metrics, and field interactions to
    include troop visits, focus groups, inspections, panel discussions and
    surveys, we're putting into place the right tools required to
    effectively evaluate our efforts.
        The Chief of Staff of the Army has led SHARP Senior Leader Summits
    with the Army's top officers and noncommissioned officers. In June
    2013, the Summit focused on achieving cultural change by reducing, with
    a goal toward eliminating, sexual assault from our ranks. The January
    2014 Summit served as a follow-up progress report on Commands' efforts,
    with a focus on victim advocacy.
        I am confident that our efforts are putting the right processes and
    procedures in place to ensure a climate of safety, trust, and respect
    for every member of the Army family.
                  the integrated disability evaluation system
        In fiscal year 2013, the Army made significant progress across the
    IDES by eliminating backlogs at the Medical Evaluation Boards (MEBs)
    and the Physical Evaluation Boards (PEBs). To address the backlog, the
    Army surged manpower, increased the availability of resources, improved
    processes, and clarified policy. We are now meeting timeliness goals
    for all stages under Army control while processing approximately 80
    percent more cases per year than we did in any year before the
    inception of IDES.
        We continue to partner with the Department of Veterans Affairs (VA)
    to further improve IDES. As expected, as we reduced the backlogged
    cases under Army control, the backlog moved to the VA-controlled
    stages. We continue to support the VA as they strive to eliminate their
    backlog and meet joint timeliness standards by October 2014. VA is a
    great partner, as we work together to improve this system. Moving
    forward, it is of key importance that we retain and improve the quality
    medical and administrative care afforded our soldiers and veterans as
    we improved the timeliness of the IDES process.
        One of our significant improvements is the fielding of the IDES
    Soldiers' and Commanders' Dashboard in August 2013. The dashboard
    compares soldiers' progress through the IDES process against both joint
    DOD/VA goals, and the average of others who have moved through the
    system over the most current 90-day period. This provides soldiers with
    an estimate of when they will transition from the Army allowing them to
    better plan for their future.
        Since the beginning of fiscal year 2013, the Army has processed
    more than 40,500 cases through the Disability Evaluation System. Of the
    completed cases, 3 percent returned to duty; 67 percent were separated;
    and 30 percent were placed on the Temporary Disability Retired List. As
    of January 2014, there were 23,586 soldiers in the IDES process.
        In January 2014, 82 percent of all MEB cases were completed within
    joint DOD/VA IDES standards, compared to 35 percent in October 2012.
    We've had similar success with PEBs, averaging 71 days against a goal
    of 90 days.
        The surge of cases completed since the beginning of fiscal year
    2013 increased the number of Veterans on the Army's Temporary
    Disability Retired List (TDRL) from 12,079 at the close of fiscal year
    2012 to 17,177 at the close of January 2014. Historically greater than
    98 percent of those placed on TDRL do not return to active status. The
    Army is working with DOD to see if the current use and structure of the
    TDRL best suits the Services requirements. As VA continues to reduce
    its backlog we expect we will meet the DOD/VA goal of completing the
    IDES process in 295 days.
                          ready and resilient campaign
        The Army implemented the Ready and Resilient (R2) Campaign in March
    2013 to build upon the demonstrated inherent strength of our soldiers,
    family members, and civilian employees. This effort provides members of
    the Army Profession the encouragement, programs, resources, tools and
    training to further develop the skills, behaviors and attributes which
    help build resiliency and strengthen them personally and
    professionally. We have implemented numerous institutional changes that
    will yield enduring cultural transformation and create an Army
    environment that supports and develops our members to perform at their
    optimum level on a daily basis, and enables them to recover and grow
    from adversities. By building the resiliency of our people, and
    emphasizing the performance triad of sleep, activity and nutrition, we
    increase the readiness of our Total Force.
        Focus areas in the campaign include: (1) comprehensive resilience
    training that develops coping skills and behaviors and increases
    capability; (2) education about and the promotion of preventive
    measures that encourage self-awareness, deter high-risk behaviors, and
    support healthy alternatives that produce positive outcomes; (3)
    increased emphasis on leadership involvement, empowerment and
    accountability; (4) program capability assessment to appropriately
    align support programs and resources; and (5) a scientific process for
    measuring success.
        During fiscal year 2013, we integrated resilience training into
    existing training and deployment requirements. Through our approach to
    Comprehensive Soldier and Family Fitness (CSF2), the Army makes
    available hands-on training and online self-assessment and self-
    development tools to the members of the Army Team. Soldiers, family
    members, and Army civilian employees have access to scientifically-
    validated tools to help them build their overall resilience. The CSF2
    program has, to-date, trained more than 20,000 Master Resilience
    Trainers, to include volunteer Spouse Master Resiliency Trainers. The
    Army established 16 Training Centers at installations across the
    country to provide resilience expertise tailored to the needs of the
    local Army community.
        Also in fiscal year 2013, we launched the Commander's Risk
    Reduction Dashboard (CRRD) to provide commanders a greater
    understanding of high risk behaviors and to aid them in better
    identifying ``at-risk'' and ``high-risk'' soldiers. This dashboard
    aggregates data from multiple Army databases to enable early, proactive
    intervention and assistance. This effort is designed to protect
    soldiers before more problems arise and curtail risky behavior.
        In fiscal year 2014, we will continue to analyze and assess
    existing programs, tools, and training. Based on these results, we will
    identify opportunities to restructure Army systems and processes to
    better prioritize resources while promoting resilience throughout the
    Army.
                             army suicide reduction
        As of March 14, in calendar year 2013, the Army reported 302
    potential suicides (245 confirmed and 57 suspected)--an aggregate drop
    of 23 in the overall number of suicides as compared to calendar year
    2012. Although this shows improvement, we recognize that the suicide
    rate in the Army, like the rest of the country, continues to pose a
    significant challenge for which there is no easy solution. We believe
    this decrease in suicides is an indicator that our resiliency efforts
    and increased access to Behavioral Health Services are beginning to
    have a positive impact on the force.
        The Army continues to employ a comprehensive and multi-faceted
    approach to reduce suicides among soldiers, family members, and
    civilian employees. We are focusing on overall health and wellness,
    increased individual resilience, risk reduction and enhanced individual
    and unit readiness. Key components to our approach are: improved leader
    awareness of high-risk behavior; increased resilience training; prompt
    access for soldiers to quality behavioral health care; and multi-point
    screening and documentation of mild Traumatic Brain Injuries and Post-
    Traumatic Stress.
        Ongoing efforts to strengthen the resilience of our soldiers and
    consequently reduce the incidence of suicide include:

             Partnering with the National Institute of Mental
            Health for the largest behavioral health study ever undertaken
            of risk and resilience factors among servicemembers (Army Study
            to Assess Risk and Resilience in Servicemembers (STARRS)).
             Embedded behavioral health clinics help soldiers
            improve their ability to cope with and mitigate stress related
            to relationships, separation, deployments, financial pressures,
            work-related issues, etc. This approach is in contrast to a
            traditional system of behavioral healthcare in which soldiers
            must seek out care from hospital-based providers, embedded
            providers work in clinics located where combat soldiers live
            and work. Embedded behavioral health services have been
            associated with fewer suicide attempts and hospitalizations for
            psychiatric conditions.
             Continuing the use of ``myPRIME,'' a confidential
            online alcohol and substance abuse risk, self-assessment tool
            that provides risk assessment and targeted education for
            remotely located (Reserve component and deployed) soldiers.
             Expanding the random panel for military drug testing
            to include commonly abused prescription drugs such as
            hydrocodone, hydromorphone, benzodiazepines as well as
            synthetic cannabinoids.
             Implementing the Community Health Promotion Council as
            is an integral part of the commander's resources for
            identifying and mitigating root causes that affect soldier,
            family member, and civilian employee well-being while
            developing the right services and programs available to
            increase readiness and resiliency.

        We continue to exercise an aggressive training initiative to
    increase awareness and understanding of prevention and intervention
    skills. To help enable leaders' roles in reducing the incidence of
    suicide, we have incorporated suicide prevention and intervention
    awareness training into our commander and first sergeant courses. We
    developed specialized on-line training for our Suicide Prevention
    Program Managers to enhance awareness of programs and available
    resources to support suicide prevention activities.
        Additional initiatives to combat suicide across the Force include
    the ARNG's and USAR's funding of full-time Suicide Prevention Program
    Manager positions in each of its 54 States and territories, and across
    major commands to advise commanders and facilitate efforts to reduce
    risk and prevent suicides. Our Suicide Reduction Working Group provides
    a forum for stakeholders, Army-wide, to collaborate on policies,
    education and training, services and resources, and ongoing initiatives
    that mitigate high risk behaviors and incidents of suicide.
        The Army's efforts to reduce the incidence of suicide are embedded
    within the comprehensive approach of the Ready and Resilient Campaign.
    This approach is designed to strengthen our Army professionals by
    enhancing their resiliency and sustaining a supportive environment that
    emphasizes early intervention and prevention of suicidal behaviors. We
    continue to revise policy as required to promote and increase awareness
    of prevention and intervention skills, services, and resources.
                          army substance abuse program
        The Army Substance Abuse Program (ASAP) is a Commander's program
    that emphasizes readiness and personal responsibility. ASAP provides
    services to the Active component, USAR, ARNG, veterans, family members,
    and Department of Army (DA) civilian personnel and is an integral part
    of the Army's Ready and Resilient Campaign. The focus of the ASAP is
    prevention, drug testing, early identification of problems,
    rehabilitation, and the retention of quality personnel. The Army
    recognizes the role substance abuse plays in many high-risk behaviors,
    including suicide and sexual assault, and that a healthy, drug-free
    force is critical to maintaining a Ready and Resilient Total Army.
    Consequently, the Army is responding with comprehensive prevention
    initiatives, increased counselor hiring, confidential substance abuse
    treatment options, and stigma reduction campaign efforts.
        The number of soldiers enrolled for alcohol abuse and dependence
    decreased from 10,580 in fiscal year 2012 to 9,625 in fiscal year 2013.
    Positive screens for illicit drug use have increased very slightly
    (1.16 percent in fiscal year 2012 vs. 1.21 percent in fiscal year
    2013). There remains a concern that soldiers are abusing more
    prescription medications and using synthetic illicit drugs.
        To assist leaders in building and maintaining resilience within
    their soldiers, the Army developed ``Strong Choices,'' a standardized
    4-hour substance abuse prevention-training package. A primary focus of
    the new standardized curricula is to educate leaders in emerging
    substance abuse issues and to assist leaders in taking a positive,
    proactive approach with their soldiers.
        ASAP counselors are vital in counseling and caring for soldiers who
    are battling substance abuse. Working closely with soldiers and
    commanders, ASAP counselors help to maintain the health and readiness
    of our force. As of February 2014, the Army has 398 ASAP counselors
    worldwide and is continuing to working to recruit and retain the very
    best professionals for this critical mission.
        The Confidential Alcohol Treatment and Education Pilot (CATEP)
    allows soldiers to confidentially refer themselves for treatment
    without command notification if they meet eligibility requirements. In
    early 2009, the Army Deputy Chief of Staff, G-1 initiated the pilot of
    the program. In May 2013, the Secretary of the Army and Chief of Staff
    of the Army approved the CATEP for Army-wide expansion. We are
    beginning to see positive results with the number of soldiers enrolled
    who most likely would not have sought help without this program.
                            congressional assistance
        As the Army becomes smaller, we will need to work with Congress in
    our efforts to draw down and reform military compensation thoughtfully,
    accurately and efficiently while maintaining readiness. The continued
    support of Congress for competitive civilian and 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.
    Support for legislative proposals that will allow the Army greater
    flexibility as we drawdown the force is also vital. 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 smaller, balanced force of the
    future. 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.
                                   conclusion
        People are the Army, and our enduring priority is to preserve the
    high quality, All-Volunteer Force--the essential element of our
    strength. The nation faces uncertainty and, in the face of such
    uncertainty, needs a strong Army that is trained, equipped, and ready.
    We must be prepared for the next contingency that calls for the use of
    Army forces.
        While we transform to a smaller Army, we remain dedicated to
    improving readiness, and building resilience in our soldiers, family
    members, and civilian employees. The Army cannot sacrifice readiness as
    it draws down. We must preserve the health of the force and prevent
    breaking faith with the brave men and women who serve our Nation.
        Chairwoman Gillibrand, Senator Graham, and members of the
    subcommittee, 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 which will
    continue to be vital to ensure the future of our Army.

        Senator Gillibrand. Thank you, Lieutenant General.
        Next is Vice Admiral Moran.

        STATEMENT OF VADM WILLIAM F. MORAN, USN, CHIEF OF NAVAL
       PERSONNEL/DEPUTY CHIEF OF NAVAL OPERATIONS FOR MANPOWER,
           PERSONNEL, TRAINING AND EDUCATION, N-1, U.S. NAVY

        Vice Admiral Moran. Good morning, Chairwoman Gillibrand and
    Ranking Member Graham and distinguished members of the
    subcommittee.
        Allow me to add my thanks for what you have done and
    continue to do for the welfare of our sailors, Navy civilians,
    families, and retirees.
        Today, more than one-third of our Navy is underway, a
    significant accomplishment given the fiscal challenges we faced
    in 2013. As we took on this budget, certainly we understood the
    imperative of reducing national debt in order to sustain our
    national security. But many of the financial levers we pulled
    last year to mitigate operational impacts were simply no longer
    available this year. If sequestration were to continue, we
    would experience irreversible consequences to our long-term
    combat readiness and jeopardize our ability to retain high
    quality sailors. As our Chief of Naval Operations (CNO)
    recently stated, it would be much tougher to maintain a Navy
    where it matters and when it matters.
        Right now, sailors from the Bush Strike Group are in the
    Arabian Sea. The USS Harry S. Truman is returning after a 9-
    month deployment. USS Donald Cook is headed into the Black Sea
    to reassure allies and to build partner capacity. As we have
    all seen, our men and women forward in the Pacific are
    contributing to search efforts along with 26 other nations for
    Malaysian Airline flight 370.
        All of what American sea power means today and might become
    is due to the selfless service of the men and women who make it
    so. They stand directly at the center of the budget now before
    you.
        Every tough choice we made in this budget was in favor of
    maintaining quality of service for our sailors. Our objectives
    were to maintain and improve manning at sea, retain our best
    and brightest sailors, increase the readiness of our sailors
    and their families. We owe them the tools, the parts, the
    training, and the professional work environment they need to
    succeed in their mission. That is what they tell us they need
    and that is what this budget delivers. Fortunately, as this
    committee has agreed to time and time again, that is what our
    people deserve and nothing less. On behalf of them, thank you
    for what you have done and continue to do for our Navy and the
    security of our Nation.
        With that, I look forward to your questions.
        [The prepared statement of Admiral Moran follows:]
                Prepared Statement by VADM William F. Moran, USN
                                i. introduction
        Chairwoman Gillibrand, Ranking Member Graham, and distinguished
    members of the subcommittee, I am honored to appear before you to
    review Navy manpower, personnel, training, education and family support
    programs and priorities for fiscal year 2015.
                      ii. a ready and capable global navy
        Since assuming duties as Chief of Naval Personnel and Deputy Chief
    of Naval Operations (Manpower, Personnel, Training and Education) this
    past summer, I have had the opportunity to listen to, and learn from,
    sailors across the fleet. It is clear that Navy remains an integral
    part of our National Military Strategy, especially at maritime
    crossroads. Every day our sailors are involved in essential missions
    around the globe involving power projection, deterrence, warfighting,
    antipiracy, humanitarian aid and disaster relief and peacekeeping. As
    our presence in the Asia-Pacific Theater expands, we will fill an
    increasingly vital role in this important region of the world.
        Maintaining trust with sailors, Navy civilian employees, and their
    families, is among my bedrock principles. It is essential that we keep
    faith through transparency; and clear, consistent, and well-
    communicated policies. As stewards of the greatest naval force in
    history, we must balance our force to meet future challenges amid ever-
    tightening fiscal constraints; not only in force size and structure,
    but in ship-to-shore timing and resource allocation. We must also
    provide stability in the lives of sailors, Navy civilians, and
    families. By communicating and achieving clear expectations, and
    maintaining faith with our people, we expect to retain the force in
    whom we have significantly invested.
        In support of the Chief of Naval Operations' tenets--Warfighting
    First, Operate Forward and Be Ready--I have established three
    complementary lines-of-effort--Force Readiness and Manning, Force
    Management, and Force Resiliency--aimed at building stability in
    policies that reassure our sailors and their families, while continuing
    to maintain fleet readiness.
    Force Readiness and Manning
        We are continuing our efforts to achieve and maintain required
    manning and readiness levels by attracting highly qualified men and
    women to serve in the most effective and technologically advanced naval
    force in history and developing them to provide the tools they need to
    succeed. Our success in retaining this high quality work force depends
    on our ability to provide world-class quality of service for our
    sailors, civilian employees, and their families.
    Force Management
        We must continue to develop and implement flexible policies that
    facilitate delivery of highly-trained and fully-qualified personnel to
    fill billets at sea. We are maximizing the potential of Navy's All-
    Volunteer Force by continuing to develop a diverse and qualified fleet.
    We are also taking deliberate steps to forecast future operating
    environments and ensure we are prepared to meet emerging challenges
    with the proper force structure. As we assess the size of our future
    force structure, we must be prepared to make the necessary adjustments
    to properly man the force, balancing the recruitment and retention of
    high-quality people to acquire and maintain the skills necessary to
    achieve mission success.
    Force Resiliency
        We continue to focus efforts on improving sailor wholeness and
    promoting a culture of respect and total fitness to prevent destructive
    behaviors. The 21st century sailor initiative protects Navy families by
    promoting healthy, efficient, and professional work environments,
    providing world-class support to families, and fulfilling our promise
    to prepare sailors transitioning to civilian life. It sustains and
    uplifts sailors confronting the stresses of war, prolonged deployments
    and an uncertain future. Through effective drug and alcohol abuse
    prevention and suicide prevention, Navy has seen a positive inflection
    point for nearly every trend tracked in our portfolio over the past
    year.
                        iii. force readiness and manning
        We will deliver the right person, with the right skills, to the
    right job, at the right time--a metric we call ``Fit.'' We will also
    anticipate combatant commander priorities to ensure that we meet the
    warfighting needs of our joint and coalition partners.
    Recruiting (Enlisted)
        Over the past 6 years, we have consistently succeeded in attracting
    the Nation's best and brightest to serve in our enlisted ranks. fiscal
    year 2013 was a solid recruiting year in which all enlisted programs
    exceeded both Department of Defense and Department of the Navy quality
    standards. We attribute this success, in large part, to the outstanding
    work of our recruiting force applying inclusive diversity recruiting
    practices; and Science, Technology, Engineering, and Mathematics (STEM)
    outreach. Strategic partnerships with STEM-related affinity groups, and
    engagements with high school and college students, have increased
    awareness of Navy service as a highly desirable career option, inspired
    the next generation of technically-capable sailors, and developed
    centers of influence that contribute to recruiting efforts. While
    enlisted accession quality declined in fiscal year 2013, with 84.6
    percent of accessions scoring in the upper 50th percentile on the Armed
    Services Vocational Aptitude Battery, compared with 90.2 percent in
    fiscal year 2012, we continue to exceed the Department of Defense (DOD)
    and Navy minimum quality standards. However, this decline will
    effectively reduce the size of the pool of high-quality applicants
    increasing the challenge in meeting accession demands. This situation
    is exacerbated by the fact that the Reserve component's ability to
    access and retain high-quality prior-service sailors is limited by
    reductions in Reserve Force structure and end strength.
    Navy Enlisted Supply Chain
        The Navy Enlisted Accession Supply Chain (NEASC), one of our
    highest priority MPT&E investments, will fundamentally change the way
    we plan, train and fill sea and shore billets, and will systematically
    correct recurring gaps. Street-to-Fleet, as implementation of NEASC is
    known, optimizes the processing of sailors from enrollment in the
    Delayed Entry Program through Recruit Training Command, and follow-on
    basic (A-school) and advanced (C-school) skills training, until they
    arrive for duty in the fleet, trained and ready for sea. This
    initiative has identified semi-automated methods to positively plan and
    track sailor accessions through 921 unique training paths. Initial
    results allowed the realignment of 23.3 man-years of training capacity
    to address emergent fleet training requirements; and, continued
    improvement is expected as this capability matures.
    Recruiting (Officer)
        We achieved aggregate Active component general officer and medical
    officer goals; however, we continue to face challenges in achieving
    Reserve component general and medical officer recruiting goals. This
    challenge is in part due to the strong active duty retention we
    continue to enjoy; but which significantly reduced the prior service
    pool from which the Reserve component acquires most of its accessions.
    Reserve component officer manning across all health professions is at
    92 percent, although we are experiencing significant shortages within
    the Medical Corps which is manned at just 75 percent. Reserve component
    general officer manning is 101 percent, while shortfalls exist among
    the Naval Special Warfare, Aviation Warfare (Pilots and Naval Flight
    Officers) and Engineering Duty Officer communities.
        The U.S. Naval Academy (USNA) seeks applicants with the greatest
    potential to become future leaders in the Navy and Marine Corps.
    Academic ability and proficiency demonstrated in STEM courses continue
    to be key in identifying and selecting the most highly-qualified
    candidates who demonstrate strong leadership qualities and moral
    character. Since 2009, USNA has promoted outreach through a variety of
    public venues including, summer STEM camps and seminars designed to
    encourage middle and high school students to value STEM and potential
    career opportunities in the naval service. Nearly 69 percent of
    midshipmen commissioning as ensigns in the class of 2014 are majoring
    in STEM disciplines. Over the past decade, women and minority
    representation in the Brigade has steadily increased--presently 22 and
    34 percent, respectively. Through national outreach and promoting the
    value of a STEM curriculum, USNA will continue to attract the finest
    applicants our Nation has to offer to graduate technically competent
    leaders for commissioned naval service.
        The Navy Reserve Officer Training Corps (NROTC) program also
    attracts brilliant men and women to serve through undergraduate
    education opportunities; which offer scholarships consisting of
    tuition, fees, book stipend, uniforms and a monthly subsistence
    allowance; along with military training opportunities leading to a
    commission as a Navy or Marine Corps officer. Starting with the NROTC
    commissioning class of 2013, 65 percent of Navy-option midshipmen are
    required to graduate with a technical degree. We exceeded this mandate
    by commissioning 71 percent of Navy-option midshipmen with technical
    degrees this past year.
    Training
        Our continuum of training provides sailors with the most relevant
    knowledge, skills, and abilities, as quickly as possible, to achieve
    optimal knowledge transfer and minimize skill-decay prior to assignment
    to the Fleet. Through end-to-end curriculum content-development and
    revision, we identify and deliver cost-effective solutions without
    sacrificing quality. We also reinforce the knowledge gained throughout
    training to maintain quality during and after the training event. With
    the introduction of new weapons systems and platforms, we must apply
    innovative techniques; such as interactive multimedia, simulators, and
    Electronic Performance Support Systems to deliver training without
    sacrificing quality.
        We have developed a plan to improve timeliness, relevance, and
    breadth of technical training. Modularized training optimizes the
    initial pipeline and enables continuous training throughout a sailor's
    first tour. This approach creates flexibility and allows sailors to
    report sooner to their first duty station, armed with the necessary
    skills to make an immediate contribution. 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 delays. Pilot programs evaluate the modularized
    training concept to ensure training quality remains high along the
    continuum.
        Traditional Navy warfighting communities increasingly rely on
    simulation to conduct training. As fidelity and access increases,
    prevalence of this technology is building at Navy schoolhouses,
    training commands and in the fleet. Investment in simulation and
    simulator training increase training capacity, effectiveness, and
    efficiency and reduce wear on platforms and operational equipment;
    thereby, minimizing operation maintenance and replacement costs.
    Education
        Education and training remain a strategic investment in support of
    maintaining our fleet's global operational excellence and dominance. We
    remain committed to ensuring that Navy education and training provides
    sailors with the most relevant knowledge, skills, and abilities; ties
    education opportunities to leader development; and supports a career
    continuum framework of technical experts, joint warfighters and
    strategic leaders, while ensuring that education and training
    explicitly links resource allocation for education and training
    opportunities to the highest priorities.
    Joint Professional Military Education
        U.S. Naval Postgraduate School (NPS) and U.S. Naval War College
    (NWC) are essential to our strategic investment in military education
    designed to develop a resilient, knowledgeable and adaptable force.
    Both institutions develop members of the force for the intellectual
    demands they will encounter, but assist in building key relationships
    through a diverse mix of students. However, recent fiscal reductions
    have severely constrained the ability for NPS and NWC to adequately
    fund its educational infrastructure, which could affect JPME
    accreditation.
    Voluntary Education/Tuition Assistance
        Tuition Assistance (TA) is an in-service education support program
    that encourages sailors to pursue education as a means of achieving
    professional and personal goals. In 2012, Navy re-opened TA to
    vocational/technical programs in support of broader initiatives to
    expand sailor access to the job market as they transition from Active
    service. In 2013, Navy sustained the TA program despite sequestration,
    when all other services experienced a period of cessation. Ongoing
    fiscal pressure has necessitated additional scrutiny of the TA
    investment, resulting in a 25 percent reduction in the level of TA
    support sailors receive.
    Credentialing and Licensure
        Navy Credentialing Opportunities On-Line offers sailors the
    opportunity to earn civilian certifications and licenses corresponding
    to their Navy ratings, designators, collateral duties, and out-of-
    rating assignments. Earning credentials assists sailors in successfully
    transitioning into the civilian workforce. Every Navy occupation has at
    least one professional credential available and we currently pay for
    over 15,000 credentials per year awarded to about 7,500 sailors.
    Fleet Manning
        We decreased gaps at sea from over 14,000 to just over 9,000 by the
    end of fiscal year 2013, and since that time, we have further reduced
    it to about 7,000. We expect to narrow the gap to about 5,000 by June
    and to fill nearly 95 percent of all enlisted billets at sea by the end
    of fiscal year 2014, with close to 90 percent filled by the right
    sailor in the proper seniority and possessing the appropriate skill
    level and training. Fleet manning improved through increased accessions
    in fiscal year 2013 and application of various force management tools
    including; voluntary/involuntary distribution, Chief Petty Officer
    Early Return to Sea, special and incentive pays applied to critical
    skills, and transitioning billets from shore to sea. Improving
    Continuum of Service, we recently automated advertisement of
    opportunities, qualification verification, and application submission
    processes, for experienced Reserve component sailors to transition to
    the Active component to fill billets in critically undermanned
    communities. The number of individual augmentees (IA) required to
    support Global Force Management Allocation Plan requirements is
    declining and the Reserve component has assumed most IA requirements,
    allowing Active component sailors to fill critical fleet billets. I
    anticipate mobilizing 2,650 Reserve sailors by the end of fiscal year
    2014.
    Retention
        We continue to monitor retention behavior closely and expect to
    meet aggregate enlisted retention goals in fiscal year 2014. We expect
    to begin experiencing retention challenges within some ratings in
    specific communities such as; Information Dominance, Special Warfare,
    Nuclear Field, Advanced Electronics, and Medical. Targeting junior
    enlisted personnel with increased incentives may prove critical for
    achieving required retention in fiscal year 2015, and beyond. We must
    focus on retaining sailors in the right mix of ratings and pay grades
    to position Navy to meet future mission requirements.
        Officer continuation remains at historically high levels due to
    current economic conditions, coupled with targeted incentive pays and
    bonuses, improved mentoring, flexible career options, and increased
    emphasis on life-work integration initiatives. Certain officer
    inventory shortfalls remain, however, in select Unrestricted Line,
    Restricted Line and Staff Corps communities that we will mitigate
    through specialized incentives.
                              iv. force management
        We are managing personnel strength to deliver an affordable,
    sustainable force that will continue to meet mission needs. By
    delivering technical training and advanced education throughout a
    career, we will retain high-quality sailors in whom we have invested to
    remain operationally effective.
    End Strength
        The President's fiscal year 2015 budget request supports active end
    strength of 323,600, and selected Reserve end strength of 57,300. It
    appropriately balances risk, preserves capabilities to meet 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. The budget aligns the Reserve
    component with the new Defense Strategy, while retaining capabilities
    vital to fulfilling the Reserve component's role in Navy's Total Force
    mission. End strength remains relatively stable across the Future Years
    Defense Program, reaching approximately 323,200 Active and 58,800
    Selected Reserve in fiscal year 2019.
        We are continuing efforts to stabilize, balance, and distribute the
    force to ensure that sailors are assignable, deployable, and
    distributable. Accordingly, manpower programs are focused on
    maintaining the right number of sailors to adequately man the fleet and
    to ensure that we have the sailors available in the right positions to
    accomplish our mission. The programs work to provide the Fleets with
    the right Fit and Fill--sailors with the right skills and experience
    level to do the most critical sea duty jobs.
        Meeting operational and strategic requirements demands that we
    properly balance missions and capacities between Active and Reserve
    components, and that we have the necessary numbers of officer and
    enlisted sailors to man the fleet. Robust Continuum of Service tools,
    which enable transitions between components throughout a Navy career,
    help us meet dynamic and emerging mission requirements and cultivate an
    agile military workforce able to adapt and retrain as necessary.
    Sailors now have the tools to understand their options for rating
    conversions and transitioning between components, which ultimately
    allows us to retain our most experienced sailors.
        Effective Force Management: Navy's effective use of force
    management tools aligns personnel levels and force structure while
    maintaining a mission-ready fleet. At the close of fiscal year 2013,
    Active component end strength was 323,951 (1,251 above authorized end
    strength). We took significant strides to improve manning, and many new
    sailors will complete initial training and join operational commands
    through fiscal year 2015, improving fleet manning and reducing gaps at
    sea. We remain committed to maintaining balance across enlisted ratings
    and will continue to deliver a mission-ready fleet.
    Compensation
        We demand much of our sailors and they deserve to be commensurately
    compensated. Over the past 12 years, pay raises, elimination of out-of-
    pocket housing expenses, TRICARE for Life and enactment of the post-9/
    11 GI Bill, have resulted in the most generous total military
    compensation package in history. In the current constrained budget
    environment, however, reducing personnel costs is essential to
    achieving a proper balance with costs for training and equipping the
    force. We expect to meet recruiting and retention requirements, despite
    slowed growth in regular military compensation, as we continue to
    judiciously apply targeted special and incentive pays, including
    increased Career Sea Pay to improve manning at sea.
    Women in Service
        Navy is committed to removing barriers that prevent sailors from
    rising to their highest potential by focusing on each person's ability
    unconstrained by gender-restrictive policies. Implementing the
    Secretary of Defense's rescission of the 1994 Direct Ground Combat
    Definition and Assignment Rule, Navy will have no closed occupations,
    very few closed positions, and equal professional opportunity in every
    officer designator and enlisted rating by January 2016.
    Leveraging Diversity
        Diversity is a readiness imperative. We value the variety of
    characteristics and attributes in our workforce, which serves to
    enhance mission readiness. We strive to attract, develop, and retain a
    technically proficient workforce; diverse in experience, background,
    and ideas; and to promote a culture that harnesses their talents,
    imagination, and teamwork. The 2010 U.S. Census projects that, by 2020,
    racial/ethnic groups, other than white non-Hispanics, will comprise
    over 40 percent of the recruiting market, with increasing minority
    representation over time. We will continue to leverage a broad range of
    STEM education and outreach programs by which to stimulate interest in,
    and attract high-potential eligible candidates from, all constituent
    youth markets to operate technologically advanced systems.
                              v. force resiliency
        Established just 8 months ago, Navy's 21st Century Sailor Office
    integrates, under one umbrella, the programs that sustain and instill
    resilience and fitness in sailors. This includes: equal opportunity,
    personal and family readiness, physical readiness, alcohol and
    substance abuse prevention, suicide prevention, sexual harassment
    prevention, sexual assault prevention and response (SAPR), hazing
    prevention, and transition assistance. The 21st Century Sailor Office
    provides a focusing lens and overarching policy support to these
    critical programs.
    Health of the Force
        The overall health of the force is good. We remain committed--
    through smart, adaptive policies, vibrant programs, and pinpoint
    funding streams--to support fit, whole, and resilient sailors and
    families, fully empowered to pursue their dreams through service to our
    Nation.
        We have made important strides in our strategic fleet-manning
    posture, resulting in an overall increase of quality of work for our
    sailors. Navy's recruit quality remains high and our aggregate
    retention is strong, although economic forces create challenges to
    retain certain critical skills sets with an appropriate return on
    investment. Candid fleet feedback indicates that deployment lengths and
    budget uncertainty lead sailors' list of concerns.
        Further, Navy remains dedicated to the prevention of suicides and
    sexual assault. Concomitant with maintaining world-class warfighting
    prowess, there is no higher calling than defending freedom within our
    ranks--just as we do throughout the world. While reports of sexual
    assault have increased, we believe this is the result of sexual assault
    education and awareness initiatives, better understanding of avenues to
    report incidents, and earned trust and confidence in a proven support
    and response system. Our goal is to prevent any sexual assault,
    harassment, and destructive behavior that lead to such crimes in a
    continuum of harm. Our comprehensive prevention strategy of enabling
    proactive command environments, institutional deterrence, and
    appropriate offender accountability, is evidenced by increased
    reporting in the past year.
    Suicide Prevention and Operational Stress Control
        Suicide prevention is an all hands evolution, all the time. With a
    motto of ``Every Sailor Every Day,'' Navy's Suicide Prevention Program
    promotes psychological, emotional and spiritual wellness, while
    reducing barriers that discourage seeking help. A comprehensive four-
    prong approach envelopes training, intervention, response, and
    reporting, to ensure a support network and skills needed to thrive, not
    just survive. Navy Operational Stress Control is the foundation of our
    suicide prevention initiatives, supporting the fleet with resources to
    navigate the stressors and challenges commonly associated with Navy
    life, to help sailors build resilience and maintain personal readiness.
    We also funded Operational Stress Control mobile training teams, which
    deliver resiliency lessons to ships, squadrons, and submarines before
    overseas deployment. We are hiring resiliency counselors to go to sea
    alongside extant teams of chaplains, behavioral psychologists and other
    medical professionals who proactively assist sailors each day.
        In fiscal year 2013, we launched the NavyTHRIVE communications
    campaign, focusing on providing sailors, leaders and families with the
    tools and knowledge to thrive; the next step in the resilience ladder.
    Thrive in your Community, the 2013 Suicide Prevention Month theme,
    added a new dimension to NavyTHRIVE by emphasizing the importance of
    cohesion and togetherness when dealing with adversity, and served as a
    launch pad for year-long engagement at the local command level. The
    Thrive During the Holidays campaign continued our NavyTHRIVE effort,
    addressing the various components of a physically and psychological
    healthy lifestyle to reduce holiday stress.
    Yellow Ribbon and Psychological Health Outreach
        Since 2008, the Navy Reserve has used two programs to support
    Reserve sailors and families, with exceptional success. The Yellow
    Ribbon Reintegration Program (YRRP) has provided deployment and
    reintegration information and support for Reserve sailors. The YRRP
    provides information, referrals and outreach to military members, their
    families, employers and immediate support network. The Returning
    Warrior Workshop (RWW) is a post-deployment event that facilitates the
    reintegration of Reserve sailors with their spouses or designated
    individual of their choice. The RWW primarily honors members and
    families for their sacrifices and support, and identifies psychological
    health issues, providing the opportunity for follow-on services. This
    program has been described as a ``best practice'' within the DOD Yellow
    Ribbon Reintegration Program and during 115 RWWs conducted which served
    14,000 attendees since its inception in 2008.
        The Psychological Health Outreach Program (PHOP), also established
    in 2008, ensures that Reserve sailors and their families have full
    access to psychological health care services including psycho-
    educational briefings, Behavioral Health Screenings (BHS), and phone or
    email follow-up. In fiscal year 2013, PHOP Outreach Teams conducted 459
    Site visits, briefing 36,413 Reserve sailors and family members. They
    also served in support of 15 Returning Warrior Workshops and conducted
    1,153 BHSs. PHOP Teams contacted 4,760 recently demobilized Reserve
    sailors 18,063 times while concurrently following-up with current
    clients and commands. As the Reserve component assumes an increased
    share of Individual Augmentations, we appreciate Congress' continued
    support of these two programs that have become so important to our
    Reserve sailors and their families.
    Sexual Assault Prevention and Response
        Sexual assault continues to challenge our Navy and our Nation. We
    have made significant strides in elevating sailor trust and confidence
    in command leadership and understanding of the SAPR process, evidenced
    by an unprecedented increase in sexual assault reporting. Increased
    reporting supports our ability to understand circumstances of sexual
    assault, enables continuous improvement in our response, drives our
    ability to hold perpetrators appropriately accountable, and allows
    implementation of pertinent prevention methodologies. Our continued
    world-class, empathetic response to every incident will drive
    additional reporting.
        Our goal is a culturally aware and educated Total Force, which does
    not tolerate, condone, or ignore sexual assault, sexual harassment, or
    sexist behaviors. We are utilizing numerous approaches to drive our
    ability to prevent and respond to sexual assaults.
        To ensure appropriate command climates are being fostered Fleet-
    wide, we directed the review of command climate surveys by a
    commander's superior, implemented roving barracks patrols to detect and
    diffuse potential adverse situations, and augmented our alcohol de-
    glamorization campaign by restricting on-base alcohol sales. In fiscal
    year 2015, Commander, Naval Installations Command will assign nine new
    military SAPR officers to Navy regions for training, education, and
    victim support. The Naval Criminal Investigative Service has
    implemented the Special Victim Capability program to dedicate better-
    trained agents to manage sexual assault cases and plans to hire 54
    additional agents. We have enhanced pre-trial investigations by
    mandating that only judge advocates serve as Article 32 Investigating
    Officers for sexual assault cases, and moved Initial Disposition
    Authority to officers in the grade of O-6 and above. We have installed
    full-time SAPR officers at each four-star fleet commands, all critical
    three-star staffs, and our main regional commands to help drive the
    necessary cultural change to eliminate sexual assaults. The Deployed
    Resiliency Counselor program will field certified clinical counselors
    on board deployed aircraft carriers and amphibious assault ships to
    train SAPR Victim Advocates and counsel sailors on issues that do not
    rise to the level of medical diagnoses. The newly-implemented Victims
    Legal Counsel program provides an experienced Navy attorney to
    represent sailors who report being victims of sexual assault. We
    anticipate this initiative will lead to increased reporting, and will
    result in victims remaining in the legal process through final
    adjudication. We are continuing efforts to establish a metrics-based
    evaluation of our progress, and to improve sexual assault prevention
    efforts, to include identifying leading indicators that will allow us
    to predict destructive behavior at all levels of command.
    Command Climate
        Creating an inclusive climate in which everyone has an equal
    opportunity to reach their highest potential while being treated with
    dignity and respect, ultimately leads to organizational effectiveness.
    Positive climates; in which to work, live, and train; are directly
    related to mission success. Yet providing a positive command climate in
    the Navy is not only the commander's responsibility, but the
    responsibility of every sailor within that command. Each sailor must
    promote good order and discipline to keep work environments free from
    destructive behaviors such as discrimination, sexual harassment,
    fraternization, and hazing. Every commander is required to conduct a
    command climate assessment within 90 days of assuming command, and
    annually thereafter. We also enhanced commander accountability by
    requiring a face-to-face debrief of the command climate assessment with
    the immediate superior in command (ISIC), to include an executive
    summary and a corrective actions plan. This provides the ISIC the
    opportunity to mentor subordinate commanders, and to take immediate
    action to ensure fairness and positive uplifting work environments of
    mutual trust and respect.
    Alcohol and Substance Abuse Prevention
        Navy Alcohol and Drug Abuse Prevention programs support enhanced
    Fleet, Family, and Personal Readiness through aggressive alcohol abuse
    and drug abuse prevention. Between January and April 2013, Alcohol
    Detection Devices were deployed as a new tool to prevent irresponsible
    alcohol use in all afloat and shore commands, in support of alcohol
    abuse prevention program policies.
        Navy's policy on drug abuse is ``zero tolerance.'' Substance abuse
    puts lives and missions at risk, undercuts unit readiness and morale,
    and is inconsistent with Navy's ethos and core values of Honor,
    Courage, and Commitment. Detection, deterrence, and prevention are key
    elements in combating drug abuse. Frequent random urinalysis is the
    most effective means to detect and deter drug abuse, and we have added
    synthetic cannabinoids (such as ``Spice'') to the standard drug-testing
    panel. Spice detection rates decreased dramatically after this program
    began, testifying to the enduring value of ``zero tolerance'' through
    regular urinalysis testing.
    Physical Fitness and Nutrition
        Navy is fully committed to developing and sustaining a ``Culture of
    Fitness'' for all sailors. Extensive scientific research shows that
    physical fitness and healthy eating reduces the risk of chronic
    disease, while increasing physiological and psychological well-being.
    Regular physical activity coupled with proper nutrition aids in stress
    relief, improves sleep, and increases self-esteem. The 21st century
    sailor initiative provides guidance and tools needed to overcome
    adversity, maintain resiliency, and thrive. Navy's Physical Readiness
    Program has developed the Navy Food Literacy Program, designed to
    improve health and wellness of the Navy Community through increasing
    food literacy, which is defined as the degree to which people
    understand food and process information about food choices. A pilot
    study that commenced last month will engage the Navy Nutrition Program,
    the Centers for Disease Control, and registered dieticians at five
    military treatment facilities to assist sailors and their families.
    This pilot is occurring on six naval bases to determine best practices
    and methods, with the goal of successfully educating sailors and their
    families on the topics of food, health, and sustainability.
        We are also piloting the DOD Healthy Base Initiative (HBI) at Naval
    Submarine Base New London and Joint Base Pearl Harbor-Hickam. HBI
    supports President Obama's 2011 National Prevention Strategy and is
    designed to create an environment which encourages healthy lifestyles
    through a set of initiatives borrowed from a wide range of best
    practices both within and outside the Department of Defense.
    Family Support
        Family Support programs are a critical component in enhancing
    mission readiness and Navy's 21st century sailor initiative. Family
    support programs assist commanding officers, sailors, and their
    families to manage the unique demands of the military lifestyle in
    concert with a healthy family life. Navy Fleet and Family Support
    Center ensure military families are informed, healthy, and resilient
    through robust programs to include relocation assistance, non-medical
    and family counseling, personal and family life education, personal
    financial management services, information and referral services,
    deployment assistance, domestic violence prevention and response
    services, exceptional family member liaison, emergency family
    assistance and transition assistance.
    Transition Goals, Plans Success (Transition GPS)
        Transition GPS replaced the 20-year-old Transition Assistance
    Program. The development and implementation of this initiative to
    extend the continuum of care to retirement, and well beyond, was a
    collective effort involving all military services. Created by the
    Office of the Secretary of Defense, with full participation by the
    Department of Veteran's Affairs, Department of Labor, and the Small
    Business Administration, Transition GPS increases sailors' abilities to
    overcome challenges they may face in pursuit of their chosen civilian
    career path. Transition GPS is a reinvestment in our citizen-sailors,
    and by providing ready, skilled, and service-oriented workers, we
    become a stronger nation.
                                   conclusion
        The President's fiscal year 2015 budget request resources critical
    programs that will continue to support Navy manpower, personnel,
    training, and education. With your continued support and leadership, I
    remain confident and optimistic as we shape our Navy to meet current
    and emerging requirements, while confronting challenges that lie ahead.
    On behalf of the men and women of the U.S. Navy, and their families,
    thank you for your sustained commitment and unwavering support.

        Senator Gillibrand. Thank you.
        Next is Lieutenant General Cox.

      STATEMENT OF LT. GEN. SAMUEL D. COX, USAF, DEPUTY CHIEF OF
    STAFF FOR MANPOWER, PERSONNEL AND SERVICES, A-1, U.S. AIR FORCE

        Lieutenant General Cox. Chairwoman Gillibrand, Ranking
    Member Graham, distinguished members of the subcommittee, it is
    my honor to appear before you today representing our total
    force airmen.
        As I look back to when I came into the Air Force 3 decades
    ago, we had nearly 600,000 airmen serving on Active Duty during
    the height of the Cold War. So much has transpired since that
    time. We have evolved into an effective and capable active
    force of just 328,000 airmen today.
        As I look down the road at the future state of the Air
    Force, it will require us to be more efficient and more agile
    while getting smaller in order to support the demands of the
    21st century Air Force.
        The Air Force remains committed to providing the highest
    quality airmen to combatant commanders. We have been actively
    engaged in combat operations for more than 23 consecutive
    years, and our airmen remain at the forefront of today's
    conflicts and other contingency operations around the globe.
    Serving proudly alongside our sister Services, last year, total
    force airmen filled over 900,000 deployment requirements to
    over 600 different locations. We are out there and we are
    getting the job done. I am extremely proud to be a part of this
    team.
        Moving forward, given the current environment, the Air
    Force will size and shape our force to meet DOD strategic
    guidance with a leaner force. To do this, we are using a wide
    variety of force management tools which will maximize voluntary
    programs first, offer incentives where needed, and employ
    involuntary programs when required. As we get smaller, we will
    continue to integrate our total force by leveraging the
    flexibility of our regular Air Force with our Guard and Reserve
    partners, balancing full-time and part-time airmen where and
    when it makes sense. Our airmen, a combined team of total force
    officers, enlisted and civilians, have and will be the
    foundation of the success of our Air Force. As we continue to
    meet the budget challenges, it is their commitment, ingenuity,
    and hard work that will help us navigate our future. We are
    committed to train and equip the highest quality airmen to
    ensure our Air Force remains capable of supporting any
    contingency around the world and overcoming any future
    adversary.
        I appreciate your support and concern for our Nation's
    great and professional airmen.
        I look forward to your questions.
        [The prepared statement of Lieutenant General Cox follows:]
               Prepared Statement by Lt. Gen. Samuel D. Cox, USAF
                                  introduction
        Today, the 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 two decades of sustained
    conflict, the men and women of your Air Force are as dedicated,
    innovative and hard working as ever before. 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 our ability to operate in
    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 resources.
        The Air Force continues to balance today's missions with tomorrow's
    requirements in a constrained budget environment. We are modernizing
    how we manage the force and our focus is on deliberately shaping and
    sizing the force to meet future mission needs, while also balancing the
    likelihood of decreased budgets for the foreseeable future. Our entire
    workforce (military, civilian and contractor) must be appropriately
    sized to support and execute our piece of the National Defense Strategy
    while concurrently considering fiscal realities.
        The Department of Defense (DOD) guidance for a leaner force and
    anticipated future needs will result in a smaller force, and based on
    the Department's guidance, the Air Force, like our sister services,
    must become smaller to live within our fiscal constraints. We must
    balance our force structure and end strength to preserve readiness and
    modernization requirements to meet the Air Force's contribution to
    defense strategy given a realistic spending forecast. Therefore, the
    Air Force's Total Force will be reduced by as much as 25,000 military
    personnel over the next 5 years to meet budget requirements, along with
    corresponding aircraft inventory reductions.
                             contingency operations
        Our airmen remain at the forefront of today's conflicts and other
    contingency operations around the globe, serving proudly alongside our
    joint partners. During calendar year 2013, Total Force airmen filled
    over 90,000 deployment requirements to over 600 different locations
    supporting a host of named operations including such notable operations
    as Operation Enduring Freedom (OEF), OEF-HOA (Horn of Africa), and
    Operation Noble Eagle (ONE). As a testament to our commitment to
    utilizing the Total Force, of the 90,000+ deployments, the Active
    component, Reserve component, and Guard component filled approximately
    66,000, 7,500, and 16,500 of the requirements, respectively, with Air
    Force civilians filling over 700 deployment requirements. In addition,
    over 135,000 airmen provided daily support to Combatant Commanders in
    their in-garrison missions such as nuclear deterrence, cyber defense,
    global mobility, and homeland defense.
        Reductions in operations in Afghanistan will influence the Air
    Force's overall deployment requirements. However, we anticipate
    combatant commander requirements for manned and unmanned Intelligence
    Surveillance and Reconnaissance, Personnel Rescue and Recovery,
    Fighter/Attack, and Airlift assets will remain high while demand for
    the land component force requirements continues to fall specifically in
    the U.S. Central Command (CENTCOM) area of responsibility.
    Additionally, CENTCOM and other combatant commanders have capability
    requirements each fiscal year that go unfilled due to lack of capacity
    in the joint force. The joint force will have to address and prioritize
    those requirements against the Service's requirement to provide a ready
    force as the drawdown continues.
                  military and civilian personnel end strength
        Budgetary constraints and changes in force structure will lead the
    Air Force into reducing Total Force end strength and implementing
    increased military Force Management programs and civilian workforce
    shaping programs in fiscal year 2015. The Air Force's total military
    strength forecast for fiscal year 2015 will be reduced from 503,400 to
    483,000. Our Active Duty military end strength will be reduced 16,700,
    from 327,600 to 310,900. Our Air Force Reserve (AFR) military end
    strength will decrease by 3,300 to 67,100, and Air National Guard (ANG)
    military end strength will decrease by 400 to 105,000. Due to funding
    and force structure impacts, the Air Force's civilian strength forecast
    for fiscal year 2015 will be reduced from 186,026 to 183,328.
                           military force management
        The Air Force's Force Management (FM) program is a tailored multi-
    year effort comprised of many programs aimed at managing the long-term
    health of the force. Given the current environment, the Air Force must
    reduce the size and reshape the force to meet DOD strategic guidance
    for a leaner force. To do this, we plan to use a wide variety of FM
    tools which Congress has authorized with a focus on maximizing
    voluntary programs first, offering incentives where needed, and
    involuntary programs only when required. We also realize that as the
    Air Force becomes smaller, it is ever more important to retain our
    highest performing airmen. Therefore, as we execute our FM programs and
    reduce overages, we will focus our programs to support retaining our
    best airmen who possess the right balance of skills we need to meet the
    Air Force's current and future mission requirements.
        In fiscal year 2013, our FM program strategy focused on offering
    traditional voluntary FM programs such as Active Duty Service
    Commitment (ADSC) and Time in Grade (TIG) waivers, and offering
    transfers to the Air Reserve Component (ARC) via Palace Chase. Based on
    continued strong retention rates among officer and enlisted
    populations, we planned to offer a limited and targeted Temporary Early
    Retirement Authority (TERA) in fiscal year 2013, but were unable to
    secure funding to execute the program due to sequestration impacts
    which took effect during the middle of the fiscal year. There were
    several limited involuntary FM programs used in fiscal year 2013, which
    included enlisted dates of separation rollbacks and constraints on the
    number of first-term airmen eligible for reenlistment; however, we did
    not convene any involuntary officer or enlisted FM boards in fiscal
    year 2013. As a result, the Air Force began fiscal year 2014
    approximately 1,200 airmen over budgeted end strength.
        The Air Force would prefer to reduce the force over the Future
    Years Defense Program (FYDP) through voluntary measures alone; however,
    based on continued high retention rates, anticipated force structure
    levels, and end strength reductions beginning in fiscal year 2015, we
    will accelerate our FM programs starting in fiscal year 2014. Doing so
    will enable us to fund the additional voluntary incentive programs
    (Voluntary Separation Pay (VSP) and TERA) needed to meet end strength.
        Planned fiscal year 2014 Military FM programs will include the use
    of ADSC waivers (officer and enlisted); TIG waivers (officer and
    enlisted); PALACE CHASE (officer and enlisted); TERA (officer and
    enlisted); Date of Separation Rollback (enlisted only); 8- vs 10-yr
    commissioned service for retirement (officer only); Voluntary
    Separation Pay VSP (officer and enlisted); and Enhanced Selective Early
    Retirement Board (ESERB) (officer only--Colonels and Lieutenant
    Colonels in select AFSCs) to support meeting fiscal year 2014 end
    strength mandates by the end of the fiscal year.
        Projected fiscal year 2015 Military end strength reductions will
    require a more aggressive approach in our FM programs, which will lead
    the Air Force to continue the use of fiscal year 2014 FM programs in
    fiscal year 2015, along with the addition of Quality Force Review
    Boards (enlisted); E-4 through E9 Retention Boards (enlisted); Force
    Shaping Boards (officer); Reduction in Force Boards (RIF) (officer),
    and Enhanced Selective Early Retirement Boards (ESERB) (officer).
                           civilian force management
        The Air Force implemented civilian FM programs following a
    concentrated effort in 2010 from the DOD to trim the civilian workforce
    by focusing on increasing efficiencies, reducing overhead costs and
    eliminating redundant functions, which led to the elimination of 16,500
    Department of the Air Force civilian positions in fiscal year 2012.
    Starting in fiscal year 2012 the Air Force utilized a multitude of
    civilian force management programs which included a temporary hiring
    freeze, multiple rounds of Voluntary Early Retirement Authority (VERA)
    and Voluntary Separation Incentive Pay (VSIP), as well as aggressive
    voluntary reassignments in an effort to decrease the number of surplus
    employees created by this reduction. At the start of fiscal year 2013
    1,000 surplus employees remained; however, by continuing the use of
    voluntary separation programs such as VERA and VSIP, management
    reassignment, attrition, and the flexibilities under RIF authorities in
    fiscal year 2013, the Air Force voluntarily separated 603 employees,
    reassigned 324 employees to other positions and ultimately only
    separated 86 employees involuntarily.
        The Budget Control Act (BCA) of 2011 (Pub L. 112-25) directed
    across the board cuts in defense spending. with the threat of long-term
    budget impacts from BCA through the FYDP, multiplied by the National
    Defense Authorization Act (NDAA) for Fiscal Year 2013 mandated
    ``Savings to be Achieved in Civilian Personnel Workforce and Service
    Contractor Workforce of the Department of Defense'' and the NDAA for
    Fiscal Year 2014 mandate to streamline the DOD management headquarters
    staffs beginning in fiscal year 2015 through fiscal year 2019, we have
    no choice other than to continue to shrink the size of our civilian
    workforce, forcing us to continue civilian FM programs in fiscal year
    2014 and beyond. The purpose of the civilian FM programs are to comply
    with mandatory funding targets directed by DOD and rebalance the
    civilian workforce to ensure mission critical competencies and skills
    are in place to meet current and future mission requirements.
        In fiscal year 2014, as in past years, we will continue to offer
    VERA and VSIP to the maximum extent possible before we implement a RIF.
    The first round of VERA/VSIP in fiscal year 2014 targeted residual
    fiscal year 2013 surplus employees and employees impacted by the fiscal
    year 2014 Civilian Workforce Review. In this round, the Civilian
    Personnel Sections (CPSs) conducted 9,330 VERA/VSIP surveys, of which
    160 positions were approved with an effective separation date of
    February 28, 2014. Further rounds of VERA/VSIP are pending approval by
    Air Force leadership. A RIF will only be considered if necessary and as
    a last resort. At this time, the Air Force does not plan to furlough
    civilians.
                             transition assistance
        Over the last couple of years, the Airman and Family Care Division
    has been largely focused on the redesigned Transition Assistance
    Program (TAP) to support airmen as they transition to civilian life. In
    light of pending end strength reductions and increased FM programs,
    continued focused effort is necessary. The Veterans Opportunity to Work
    (VOW) to Hire Heroes Act of 2011, and Veterans Employment Initiative
    (VEI) drove a host of new TAP requirements to expand training and
    employment services for Active Duty, Reserve, and Guard members who
    will transition from the military to the private sector. VOW/VEI
    mandated all airmen separating or retiring from the Air Force must
    complete TAP, which includes pre-separation counseling, attendance at a
    Department of Labor Employment Workshop (DoLEW), Veterans Affairs (VA)
    benefits briefings, and Capstone. Capstone is the documentation that
    validates career readiness standards have been met and that the
    servicemember is ready to transition to the private sector.
        The fiscal year 2014 and 2015 FM programs call for a significant
    reduction in Total Force airmen. Those transitioning airmen will be
    over and above the 32,000 to 35,000 airmen our Airmen and Family
    Readiness Centers (A&FRCs) process through TAP each year (fiscal year
    2013 throughput was 33,422). Our A&FRC team is taking additional steps
    to help leadership at all levels of the Air Force to ensure all airmen
    separating or retiring attend TAP as required. Some initiatives include
    increasing the frequency of courses at each installation, increasing
    the class size, coordinating with partnering agencies such as the VA
    and DoL to brief additional TAP courses as needed, providing the Air
    Force community (to include family members) with information about TAP
    (includes websites, commander messages, senior leader engagements, etc)
    and ensuring A&FRCs contact airmen about signing up for TAP.
                                   recruiting
        Accessions are the lifeblood for our force, which compels us to
    maintain a strong and experienced recruiter force capable of
    understanding and responding to the evolving recruiting environment we
    operate within. A successful recruiting program requires us to leverage
    a wide variety of recruiting tools in support of our recruiting force,
    such as the Initial Enlistment Bonus (IEB) program, a fully resourced
    advertising and marketing fund, and an improved information systems
    infrastructure to successfully inspire, engage, and recruit the
    brightest, most competitive and diverse men and women for service in
    America's Air Force. Air Force Recruiting Service (AFRS) has
    successfully met the All-Volunteer Force requirements for the past 14
    years and is currently positioned to meet both fiscal years 2014 and
    2015 recruiting requirements. However, under the current environment
    with the strong possibility of long-term, constrained budgets, we fear
    it may be impossible to properly resource recruiting efforts in the
    future which would strain our ability to meet future accession
    requirements as the economy improves.
        The Air Force budget for recruiting includes funding for day-to-day
    operations, personnel costs, and advertising activities necessary to
    the successful accomplishment of the recruiting mission. Due to an
    increasingly limited resource environment, budgets for recruiting in
    recent years have experienced a steady decline in available funding.
    Advertising dollars in particular have been impacted, which has created
    inefficiencies and a constrained television advertising campaign.
    Specifically, budget actions, such as sequestration in fiscal year
    2013, slowed or completely shut down key advertising and marketing
    events, to include the Air Force Thunderbird Aerial Demonstration Team,
    and delayed our national television campaign for fiscal year 2014,
    leading to missed ``key spots'' and diminished purchasing power. This
    not only resulted in the absence of Air Force awareness activities in
    entire markets, but it also strained relationships within key
    communities that recruiters have worked years to foster.
        The AFRS depends on the IEB program to produce a sufficient recruit
    pool to access requirements for high-demand, low-density career fields
    such as battlefield airmen and linguists, and we have successfully
    utilized the program to recruit youth into career fields that have been
    historically hard to recruit and/or qualify for by awarding a monetary
    bonus as an incentive. The Air Force budget for its IEB program in
    fiscal year 2015 is $14.2 million. Funding for IEB must continue, as
    without the IEB program, the ability to recruit the right requirements
    at the right time for these unique demands would be seriously
    jeopardized.
        AFRS works closely with stakeholders to ensure recruiting funds are
    best utilized to carry out a recruiting campaign that meets accession
    requirements, but also support priorities and goals set forth in the
    Air Force Diversity Strategic Roadmap. These efforts are aimed at
    sustaining a robust strategic outreach program that creates
    opportunities for recruiting a high quality, diverse talent pool,
    reflective of the best of the Nation we serve. The Air Force will
    accomplish this by leveraging relationships with DOD and non-DOD
    entities to ensure recruitment practices are effectively reaching all
    segments of society, and assessing the effectiveness of current
    branding and recruitment practices for all demographics/markets to
    ascertain actionable steps to increase access and positioning.
                                   retention
        The Air Force has continued to experience high retention trends
    over the past 10 years, with the officer and enlisted retention trend
    remaining very strong in fiscal year 2013. Even with the upcoming
    reductions in end strength, there are still critical and emerging
    career fields that are experiencing poor retention, low manning and/or
    high operational demands (such as battlefield airmen and cyberspace
    specialties). Airmen associated with these skills are not targeted in
    the fiscal year 2014 FM programs, and there are numerous efforts to
    increase career field health. These include, but are not limited to,
    Special and Incentive (S&I) and Bonus pays, protections from FM
    programs, and increases to accessions, retraining and promotions.
        The fiscal year 2014 budget for all S&I 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 (SDAP), Hostile Fire Pay, and
    Foreign Language Proficiency Bonus/Pay. The Air Force allocated $232
    million of the S&I Pay budget in fiscal year 2014 for Selective
    Reenlistment Bonuses (SRBs); however, given a smaller future force, the
    Air Force chose to tailor the SRB program to better align with our
    fiscal year 2014/2015 FM Programs. In fiscal year 2013, 55 career
    fields participated in the SRB program; however, in fiscal year 2014,
    only 10 remain eligible, and those remaining are not eligible for
    voluntary or involuntary FM programs in fiscal year 2014. These
    specialties include our Battlefield Airmen, Intelligence, Surveillance
    and Reconnaissance, and Career Enlisted Aviator career fields. Our
    fiscal year 2014 Officer and Enlisted Critical Skills Retention Budget
    was $11.8 million, focusing on retention of senior noncommissioned
    officers and mid-career officers in Special Operations; Battlefield
    Airmen, Intelligence, and Contracting specialties.
        We expect the fiscal year 2015 budget for all S&I Pay to remain
    consistent with fiscal year 2014 budget levels and, although we have
    reduced the number of career fields participating in the SRB program,
    we intend to only slightly reduce our budget from $232 million to $179
    million. This allows us to target our critical needs and transition to
    lump sum payments instead of multiple initial and anniversary payments,
    which will provide much greater fiscal oversight and efficiency as well
    as greater flexibility to target critical retention needs. This is
    essential to maintaining high quality airmen in critical career fields
    as we come through extremely turbulent times due to end-strength
    reductions and an improving economy. SRB investments have shown to
    improve retention from 1 to 8 percent per SRB increment, depending on
    the reenlistment zone. We continually review and monitor our S&I Pay
    programs for impact on recruiting and retention as well as linkage to
    FM programs and a constrained budget.
                              compensation reform
        With full Budgetary Control Act Sequestration-level cuts in effect
    in fiscal year 2016 and beyond, the Air Force agrees we cannot afford
    to sustain the rate of growth in military compensation that we have
    experienced over the last decade and continue to maintain readiness and
    provide our airmen with the finest training and equipment possible.
    However, as we balance quality personnel with readiness requirements,
    we must ensure a competitive compensation package to recruit and retain
    quality personnel for our future force. Thus, the Air Force, in
    conjunction with the Department, is working with the Military
    Compensation and Retirement Modernization Commission to review
    potential compensation system reforms and study the impact on the All-
    Volunteer Force.
        Department-wide compensation reform is a very difficult task as the
    Department is very complex with differing force profiles and different
    recruiting and retention needs. The Air Force is a retention-based
    force requiring highly qualified, educated and technically experienced
    personnel, thus a more senior and experienced force is required to
    fulfill our mission. Therefore, we must assess the combined and
    compounding impact on recruiting and retention for the All-Volunteer
    Force, as well as impact on the retiree population before making
    significant changes. The Air Force concurs with the Department that
    there is sufficient information available to make recommendations on
    key areas of current compensation (other than retirement) to slow the
    growth of military pay and benefit costs, starting with the fiscal year
    2015 budget, in order to permit a balanced drawdown in defense
    spending. For major modifications to the compensation system, we
    recommend reviewing the Commission report first to ensure it supports
    the sustainment of a highly skilled and capable All-Volunteer force.
                      quality trained and developed force
        A properly trained and developed force is critical to the success
    of our Air Force; therefore, we took several measures to mitigate the
    challenge of resourcing Professional Military Education (PME) and
    functional developmental education requirements. Reductions to officer
    PME resulted in prioritizing and selecting joint, sister service,
    cyber, nuclear, and lab opportunities over some fellowships and
    international programs of study. Despite these reductions, the Air
    Force's top performing field grade officers will be provided in-
    residence education that ensures they possess the right knowledge to
    succeed at the operational and strategic levels and develop into our
    leaders of the future.
        The Air Force has always valued the Military Tuition Assistance
    (MilTA) program as a force enabler affecting recruitment, retention,
    and readiness. Higher education is an important component in airman
    development since it directly enhances critical thinking skills.
    Reduced budgets brought on by sequestration required the Air Force to
    conduct a top-to-bottom review of the MilTA program. In order to
    sustain this valuable program and ensure airmen are receiving the right
    education at the right time, the Air Force instituted management
    controls for the use of MilTA. The first was to re-insert the
    supervisor into the approval process. This allowed supervisors the
    opportunity to get to know their airmen's educational goals and provide
    mentoring. Additionally, airmen who have not passed or are overdue for
    their Physical Fitness Test, have an Unfavorable Information File, or
    have a referral annual performance report are ineligible for MilTA
    until these issues are resolved. We believe these controls ensure
    airmen are prepared to succeed in their degree program as well as
    continue their critical work in the defense of our great nation.
                      support to airmen and their families
        The Air Force remains committed to providing the best support
    possible to help build and maintain ready, resilient airmen and
    families. Prolonged constrained budgets are becoming a challenge and
    our ability to maintain programs at levels funded at higher levels in
    previous years will not be possible. Unfortunately, fiscal realities
    are forcing us to make difficult decisions where some programs will be
    reduced or possibly cut. We fear the inability to sustain some programs
    may negatively affect future readiness and unit cohesion. However,
    despite these challenges, we continue to prioritize quality airmen and
    family support programs directly tied to mission accomplishment. Our
    strategy will be to tailor programs and services to meet evolving
    demographics and demands where appropriate and capitalize on community
    partnerships to advance efficiencies where feasible.
        To help mitigate constrained budgets and impact of reduced funding,
    the Air Force prioritized its Services programs to place the focus on
    resourcing the most valued programs from an enterprise-wide, mission
    accomplishment perspective. Capturing our programs in a prioritized
    listing resulted in identifying our ``core'', and ``core of core''
    programs, to focus our limited resources where they are most needed.
    This priority listing receives top leadership attention and
    consideration as we navigate fiscal challenges.
        Air Force Services continues to advocate funding all ``core''
    programs that include: Child and Youth Care, Military Dining
    Facilities, Fitness Centers, A&FRC, Youth Programs, Libraries and
    Outdoor Recreation. When funding became even tighter, Air Force
    narrowed the ``core'' programs down to ``core of core'' programs
    (Fitness Centers, Military Dining Facilities, and Child and Youth
    Care). Programs such as community activity centers, skill centers,
    bowling, and clubs are ranked below the core activities and are the
    last to receive appropriated funding consideration.
        Regardless of a program's ranking, sequestration had a significant
    impact on MWR programs in fiscal year 2013, and we experienced
    installation-level program closures and adjusted budgets based on
    available funding in an effort to focus our resources where they were
    needed most. As we look forward with a sharper focus on declining
    budgets and concern about our ability to maintain needed programs, we
    will continue to explore innovative means of providing timely and
    relevant support to our airmen and families. We expect similar funding
    challenges in fiscal years 2014 and 2015, with possibly a continued
    impact on airmen and family programs.
        Air Force Child and Youth Programs are a critical workforce issue
    for our airmen. To support the mission, a collaborative effort between
    our child development centers (CDCs), family childcare homes, and
    school age programs met the full time childcare needs for over 57,000
    children in 2013. Supporting the Total Force is a priority as our
    community-based programs served nearly 2,500 children whose families
    are not located near an active duty installation. In addition, we
    provided over 126,000 hours of weekend childcare for Air Force
    reservists and Air National guardsmen to attend their unit drills.
    Further, we provided over 37,000 hours of skilled care to our
    exceptional family members allowing parents a needed break from the
    stressors of caring for a child with special needs. In 2013, we also
    expanded our capability by implementing new childcare programs to
    assist wounded warriors, families of the fallen, and those with unique
    needs due to medical circumstances. These programs provide hourly care
    for parents in one of those situations. Care is typically provided in a
    family child care home but can be offered in a CDC depending on
    availability.
        Our Youth Programs continue to provide critical resiliency building
    opportunities for older youth across the Total Force. Resiliency
    building provides our youth the skills to cope with life challenges and
    to help recover following setbacks. The 2013 Air Force Teen Movement
    led by the Air Force Youth Programs Teen Council, offered installation-
    based programs targeted toward building community connections,
    increasing teen participation, providing support during PCS moves, and
    offering Science, Technology, Engineering, and Math (STEM) experiences.
    While the final Teen Movement action reports are still being received,
    we are on track to exceed our goal of reaching over 3,500 teens with
    these targeted programs. Likewise, our Air Force youth camping program
    focused on building resilience, fostering leadership skills, and
    promoting healthy living behaviors benefitting over 35,000 youth of
    Active, Guard, and Reserve members. New for 2013, our Youth Program
    members participated in the first ever Military Youth of the Year
    competition, an initiative in partnership with the Boys and Girls Clubs
    of America. Showcasing the stellar achievements of military teens
    around the world, Air Force teens were awarded an astonishing five out
    of six regional winner awards garnering a combined total of more than
    $70,000 in Military Youth of the Year scholarships. In addition,
    through another key partnership with the U.S. Department of
    Agriculture's 4-H Youth Development Program, over 1,000 Air Force youth
    participated in the 2013 National Youth Science Day event, and we were
    able to reach 20,000 additional youth through partnership with 4-H
    county extension agents.
        Looking at 2014, our goal is to ensure Air Force Child and Youth
    Programs are able to operate in a constrained fiscal environment
    without reducing the quality of services provided to our military
    families. Some of our installation childcare programs still experience
    waiting lists particularly in the younger age groups where community-
    based care is very expensive and in many cases not available outside
    the gate. Timely availability of childcare spaces remains key to
    allowing our programs to operate at their maximum capacity. To achieve
    this, we have identified these as ``core'' programs to be appropriately
    resourced so our airmen can focus on the mission while knowing their
    youngest family members are being cared for in a safe environment.
        The Air Force has also spent several years revamping the
    Exceptional Family Member Program (EFMP) to support families with
    special needs. These improvements resulted in a 23 percent EFMP
    enrollment increase since 2010. Our work will continue to focus on EFMP
    to better support accommodations of children with special needs in our
    Child and Youth Programs. A further expansion to our EFMP respite
    childcare program will be afforded to airmen at approximately 15
    additional locations.
                    integrated disability evaluation system
        The purpose of the Integrated Disability Evaluation System (IDES)
    is to maintain a fit and vital force. The Air Force utilizes the IDES
    to determine if airmen who are ill, injured, or wounded are still fit
    for continued military service and quickly returns those who are. If a
    member is deemed unfit for continued service, the IDES process ensures
    servicemembers receive a VA disability rating and are aware of their
    compensation benefits before they transition from military service. The
    Air Force continues to work on meeting the Office of the Secretary of
    Defense's (OSD) goal of processing airmen through IDES in 295 days.
    Currently, the Air Force active component is averaging 321 days
    processing time from referral for disability evaluation to the date of
    VA benefits decision or return to duty, and current milestone goal is
    for 90 percent of cases to meet DOD stage processing goals by June
    2014.
        In concert with DOD and VA, the Air Force has fielded and tested
    electronic, paperless case management solutions, working toward the
    eventuality of an enterprise-wide system with full interface capability
    with existing personnel data systems. Interim systems in use include
    Right Now Technology and Case File Transfer. These systems will allow
    the DOD Services and VA to significantly reduce case processing times.
    Through the October 2012 reorganization of Physical Evaluation Board
    (PEB) under the Air Force Personnel Center (AFPC) Directorate of Airman
    and Family Care, and the September 2013 consolidation of the PEB
    activity at JBSA-Randolph, the Air Force plans to continue to seek
    efficiencies in manpower allocation, standardization of training, and
    enhancement of PEB administration and adjudication by increasing not
    only Active Duty support, but full-time Reserve and Guard support as
    well. Additionally, we hired a quality assurance specialist in 2013 to
    manage and report statistical findings to senior leadership and work
    internal and DOD technology solutions designed to further shrink IDES
    phase processing averages. Through regular forums with Air Force
    leadership, other DOD Services and the VA, we plan to share resources
    and feedback to achieve our mutual goals.
        In September 2013, the Air Force collocated the Informal PEB and
    Formal PEB (FPEB), allowing greater flexibility to respond to the
    changing mission needs between the two boards, enhancing consistency of
    training and optimizing FPEB Case Manager duties with their integration
    into a combined PEB Case Manager Staff. We instituted pre-PEB and post-
    PEB quality review measures including pre-screening to shorten
    timelines. Additionally, the Office of Airmen's Counsel representing
    all airmen in the IDES appeal process relocated to join the FPEB
    creating a ``one-stop-shop'' of services for the servicemember and
    reducing TDY expenses from 5 days down to 3 days per hearing. Most
    recently, we activated a second FPEB and have been able to run up to
    eight hearings per day to expedite moving FPEB cases that are over
    their IDES phase goal. Concerning manpower, the Air Force has
    reallocated eight full-time civilian positions within AFPC and garnered
    AFR support to meet PEB mission requirements. Moreover, we continue to
    leverage and test a robust suite of information technology to achieve
    seamless and paperless DOD-VA case file transfer and conduct formal
    hearing through VTC, saving both time and money.
        The Air Force is also planning to reduce IDES Transition Phase
    processing time through data sharing applications, such as Electronic
    Case File Transfer, between Medical Treatment Facilities, the VA, and
    Air Force personnel offices. Additionally, PEB Liaison Officers update
    servicemember projected departure dates which are sent to Providence VA
    Medical Center to assist in timely individual case projections and
    closure. Further, the Air Force uses IDES servicemember survey reports
    to identify any shortfalls in processing and customer service.
    Consolidated feedback undergoes quality assurance review and analysis
    during Air Force IDES conferences to identify and address any IDES
    process problems or issues.
        Collectively, we expect these major improvement strategies and
    initiatives to continue the Air Force's improved IDES timeliness.
                       supporting total force integration
        In an era of tighter budgets and unpredictability in national
    security platforms and mission sets, it makes imminent sense to get the
    most we possibly can out of the resources afforded to us. The past 13
    years are a testament to the inherent flexibility of a three-component
    force in meeting the demands on our Air Force. We must continue to
    leverage the flexibility of our Regular Air Force (RegAF), ANG, and AFR
    forces, utilizing full-time and part-time airmen where and when it
    makes sense, and providing opportunities to allow our airmen to serve
    in a way that works for them. That means identifying and eliminating
    barriers to a more efficient use of our people--and we are doing just
    that. We are integrating personnel management across the Total Force,
    eliminating unnecessary differences in rules and regulations,
    integrating management structures to a greater degree, and developing
    common platforms for pay and personnel services. The following
    initiatives are laying the foundation for greater integration of the
    total force, which will help the Air Force meet its requirements more
    efficiently going forward:

             Air Force Recruiting Information Support System--Total
            Force, which will be the primary tool for all RegAF, ANG, and
            AFR recruiters worldwide to collect, process, manage, and
            analyze all potential enlisted and officer accession data
            (projected operability is in fiscal year 2014);
             ARC2Mission efforts which will streamline and
            integrate all products required for the activation and
            deactivation of ARC members to speed orders generation and
            access to medical benefits and entitlements pre- and post-
            activation periods; and
             Career Intermission Pilot Program, which is a one-
            time, temporary transition from active duty to the Individual
            Ready Reserve for officer and enlisted airmen to meet personal
            or professional needs outside the service, providing a
            mechanism for return to active duty. The long-term intent of
            this program is to retain the valuable experience and training
            of top performing airmen that might otherwise be lost by
            permanent separation. It provides an avenue to meet the
            changing needs of today's servicemembers. This work-life
            flexibility initiative will enable the USAF to retain talent,
            which reduces cost and adverse impacts on the mission.

        Other major programs and efforts include the: Integration of Air
    Force Multi-Component Force Support Squadrons (FSS); development and
    procurement of an Air Force Integrated Personnel and Pay System (AF-
    IPPS); and creation of an Enterprise-wide Total Force Service Center
    (TFSC).
          integration of multi-component force support squadrons (fss)
        To better support our Total Force airmen and commanders, we
    continue to move forward with our ``Multi-Component Force Support
    Squadron (FSS) Integration'' initiative. The intent is to leverage the
    skills of highly experienced RegAF, ANG and AFR members, to achieve a
    more capable and efficient organization by maximizing the capabilities
    resident in each FSS, while still allowing for component uniqueness
    where warranted. This initiative has its roots in a 2010 Secretary of
    the Air Force memo (``Integration of Air Force Component Personnel
    Management Systems'', 15 Oct 10), directing Total Force personnel
    management integration.
        Currently, on installations that have more than one component
    (Active, Guard, or Reserve), each component is serviced by its own FSS.
    For those installations, the intent is to establish a single customer-
    focused FSS supporting all airmen and commanders on that installation,
    while respecting the specific personnel management needs of all
    components. This is truly an integration effort to establish a single
    customer-focused FSS.
        Because FSS Integration is a substantial initiative, we established
    prototypes at three installations (Peterson AFB, March ARB, and Pease
    ANGB) as a proof of concept before implementing across the Total Force.
    Two prototypes recently achieved Initial Operational Capability and all
    three will reach Full Operational Capability by Nov 2014. These actions
    are consistent with the National Commission on the Structure of the Air
    Force's recommendation to integrate the three components' personnel
    management processes. Upon successful proof of concept, we will look to
    expand this initiative.
                 air force integrated personnel and pay system
        The Air Force continues to move forward with the AF-IPPS
    initiative, which is foundational to institutionalizing our 3-to-1
    efforts by providing a common platform for Active Duty, Guard, and
    Reserve. This effort integrates personnel and pay systems across the
    Total Force to create a more efficient and effective Air Force. AF-IPPS
    is a web-based system that will allow our airmen to have 24-hour access
    to their personnel and pay record from anywhere in the world.
        The Air Force needs modernized Information Technology (IT) systems
    to support Total Force processes; our ability to manage military
    payroll becomes even more challenging every year. Existing business
    processes are inefficient, error prone and costly to operate. Our
    payroll systems are decades old and built on obsolete technology. While
    our primary Military Personnel Data System is a Total Force system, we
    still rely on several other systems for managing ARC personnel. These
    component-unique systems reinforce differences in how the Air Force
    manages personnel, and causes delays in activating ARC members to
    active status and establishing their pay, benefits and entitlements.
    AF-IPPS will correct these problems, provide financial auditability,
    enable integration at base-level, across the personnel centers and
    eliminate the ``split'' between personnel and pay processes
             creating an enterprise-wide total force service center
        The integration of the Total Force Service Center (TFSC) provides
    immediate efficiency to customer service operations. Two important
    processes have already been integrated, including duty history and
    former spouse determination and others should be integrated by
    September 1, 2014. Utilizing existing technology, Air Reserve Personnel
    Center (ARPC) and AFPC are able to leverage the legacy Remedy platform
    to build Total Force self-service applications including evaluations,
    award, decorations, reenlistments, and extensions.
        TFSC also provides airmen access to personnel information,
    services, and tools via the Internet, e-mail, or telephone. Common
    software platforms are enabling greater integration between the two
    existing personnel centers and improve continuity of operations in case
    of a contingency. All should be available later in fiscal year 2014.
      centralization and elimination of duplicate information technology
                                    systems
        To better support our Total Force airmen and commanders, we
    continue to move forward with efforts to improve the value of our
    Information Technology (IT) Portfolio. We are driving down costs by
    managing our IT systems through a shared services model, and
    transitioning our systems to DOD enterprise data centers. In addition,
    we are also studying various capability areas of our Business
    Enterprise Architecture to determine where we have IT systems
    performing similar business processes. Once identified, we will work
    with business owners to reengineer processes and define IT requirements
    for Total Force solutions. The Air Force Recruiting Information Support
    System referenced previously is a good example of where we have had
    success with this strategy.
                            women in service review
        The Air Force is on track to execute the Women in Service Review
    high-level implementation plan by the 1 Jan 2016, and we do not
    anticipate any obstacles. Air Education and Training Command (AETC), in
    coordination with Air Force Special Operations Command (AFSOC), is
    currently reviewing a small number of closed Air Force career fields,
    including SOF-specific AFSCs, to validate occupationally specific,
    operationally relevant, gender-neutral physical performance tests and
    standards. The study was funded for $1.2 million in May 2013, with an
    estimated completion date of July 2015. Currently there are 7
    occupations that remain closed to women (a total of 4,402 positions).
    The Air Force has not opened any closed AFSCs to women. The seven
    occupations remaining closed to women are: Special Tactics Officer,
    Special Operations Weather (officer), Special Operations Weather
    (enlisted), Combat Control, Combat Rescue Officer, Pararescue, and
    Tactical Air Control Party. The Air Force will open these AFSCs to
    women when mandates in the SecDef/CJCS guidance have been met, and
    occupational standards have been developed and validated.
                                   diversity
        Diversity and inclusion remain a top priority of Air Force senior
    leadership. The Air Force recognizes that a diverse force is a military
    necessity, and we continue on a strategic path to attract, recruit,
    develop and retain a diverse and inclusive workforce of highly
    qualified individuals who reflect the rich tapestry of the Nation we
    serve. To further these efforts, in March 2013, the Air Force published
    their Diversity Strategic Roadmap, which provides guidance to enhance
    the diversity and inclusion of the Total Force, as well as track
    progress and success toward reaching diversity goals. Additionally, the
    Secretary of the Air Force and Chief of Staff of the Air Force co-
    hosted the first-ever Diversity Focus Day to inform senior leaders on
    diversity efforts to provide senior leaders a snapshot of total force
    demographics and capture senior leader guidance on diversity and
    inclusion initiatives. These efforts made great strides in
    institutionalizing diversity and inclusion across the Air Force.
        Results from the 2013 Internal Communication Assessment Group
    Diversity survey indicated 75 percent of airmen agreed it is important
    for the Air Force to attract, recruit, develop and retain a qualified,
    diverse workforce as a way to maintain our edge as a superior military
    organization. Furthermore, 86 percent of airmen surveyed believe the
    Air Force is doing a good or excellent job creating diversity within
    the Total Force.
        Focus on Air Force outreach programs remains central to attracting
    and recruiting diverse talent. To that end, in partnership with OSD's
    Office of Diversity Management and Equal Opportunity (ODMEO), the Air
    Force plans, coordinates and oversees national-level diversity outreach
    programs supporting our diversity goals and objectives. In 2013, the
    Air Force supported a number of national events including the Black
    Engineer of the Year Awards, Joint Women's Leadership Symposium and the
    Hispanic Engineer National Achievements Award Corporation Conference.
    In addition to national-level diversity outreach events, the Air Force
    developed a program to encourage base-level sirmen, in partnership with
    local recruiters, to develop diversity outreach efforts in their local
    communities. In all these engagements, we continue to place emphasis on
    education, health, and mentoring in the STEM disciplines.
        Finally, the Air Force continues to support the Military Leadership
    Diversity Commission (MLDC) report and provided Air Force input to OSD
    ODMEO's report to Congress on the status of MLDC recommendations. Of
    the 14 service-specific recommendations, the Air Force reported full
    implementation on 11 items, including adopting diversity as a core
    competency; tracking regional and cultural expertise in order to better
    manage personnel and mission-critical skill-sets; and implementing
    diversity strategic plans that address all stages of servicemember's
    life cycle.
                                wounded warriors
        The Air Force Warrior and Survivor Care office, located at the Air
    Staff, is the Air Force Lead in orchestrating a comprehensive effort
    that synergizes DOD and Veterans Affairs programs focused on medical
    and non-medical care of wounded, ill, and injured servicemembers. This
    effort consists of three major working groups: Policy and Oversight,
    Comprehensive Plan, and Community of Practice. The innovative results
    of these groups include the development of a Lead Coordinator to
    facilitate care across the spectrum of care agencies involved, a single
    IT system to share data between Services and to the Veterans
    Administration without repetition or replication of data, and
    overarching policy guidance to synchronize the wounded warrior programs
    while allowing flexibility for each Service to work within their
    current construct, thus saving resources and eliminating the confusion
    inherent in changing programs. Members of the Air Staff, the Office of
    the Secretary of the Air Force, Manpower and Reserve Affairs, and AFPC
    have provided Air Force standards of practice as benchmarks for the
    overall program and were lauded for being visionary in our approach to
    wounded warrior care.
        The Air Force focuses on offering adaptive sports opportunities
    early in an airman's recovery and/or rehabilitation, and they have
    proven to facilitate restoration of wellness and enhance members'
    ability to function in their personal and family lives. Our actions
    include regional sports camps to introduce our recovering airmen and
    veterans to a variety of activities that help them recognize their own
    abilities despite their illness or injury. These camps are also, in
    some instances, the beginning of returning to a social setting and
    learning to accept and/or cope with their disability by interacting
    with others that have similar challenges. Recovering airmen and
    veterans also compete for a place on our Warrior Games team and compete
    in Paralympics style competition against other Services and
    International wounded warrior teams. Our adaptive sports program is one
    of the most successful rehabilitation activities available to our
    recovering airmen outside of physical and occupational therapy offered
    by the medical community.
        In 2013, we doubled our Special Compensation with Assistance for
    Activities of Daily Living program recipients. This program provides
    additional financial support to caregivers, lessening the impact of
    lost wages and other expenses inherent in caring for a seriously
    injured or ill airman. Throughout 2013, and continuing into the future,
    we will work with DOD and VA through the Interagency Care Coordination
    Committee to establish a fluid care plan that will take our airmen from
    the point of injury or illness, through their medical and non-medical
    care while in the Air Force, and seamlessly into the VA system, using a
    single-care plan and eventually an integrated care-management system.
    We have equipped our Recovery Care Coordinators with communications
    equipment, including cell phones and tablets, that allow them to get
    out of their office and engage face-to-face with our airmen and their
    families. The needs of our seriously ill or injured are similar to our
    combat wounded, therefore our programs are designed to support all in
    an equitable manner.
                                  evaluations
        All airmen have a responsibility to contribute to a healthy unit or
    organizational climate. In order to maintain this environment, all
    feedback and evaluation forms have been modified to include
    ``Organizational Climate,'' when evaluating airmen, and this must be
    discussed in all feedback sessions. Given their position and influence,
    commanders have an even greater responsibility to not only contribute,
    but to create and ensure a healthy organizational climate. The more it
    is incorporated into daily activities, the more it becomes a part of
    Air Force culture. Ultimately, a healthy unit or organizational climate
    is critical to the effectiveness of our Air Force at all levels.
                          comprehensive airman fitness
        Our Air Force continues to make progress in teaching resilience
    skills to our Total Force and their families. Continued high operations
    tempo at home and abroad, coupled with downsizing the force and budget
    cuts, reinforce our need to increase the focus on building strong,
    resilient airmen. The Air Force has successfully graduated 641 Master
    Resilience Trainers (MRTs). Each trainer learned to facilitate and
    train new members on core competency skills using the four domains of
    Comprehensive Airman Fitness (CAF); mental, physical, social and
    spiritual fitness. MRTs are teaching resilience skills at First-Term
    Airmen Centers, Airmen Leadership Schools, and they are training
    Resilience Trainer assistants (RTAs) to aid and assist units/squadrons
    with building resilience skills. A tailored CAF course has been created
    for Air Force Key Spouses, and once trained, Key Spouses may serve as
    RTAs to assist commanders with their units, and further assist spouses
    with building CAF skills.
        CAF is governed by the Air Force Community Action Information Board
    (CAIB), chaired by our Air Force assistant Vice Chief of Staff. In
    December 2013, the CAIB directed an assessment of increasing the MRT
    ratios. As a result of the overwhelming positive feedback received from
    members who have received CAF training, we are targeting to train one
    MRT per squadron and exploring options to increase the amount of MRTs
    from the current ratio of 1 MRT per 1,000 airmen to 1 per 200 airmen.
    We believe as we build resilience skills, all airmen will be better
    equipped to withstand, recover, and grow in the face of stressors and
    changing demands, and ultimately help sustain continuous mission
    success.
                                   conclusion
        Our airmen and their families continue to be the foundation of the
    success of our Air Force. The enduring contributions provided by the
    Air Force in joint operations are a direct result of the innovative
    spirit that reside 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. As we continue to meet budget challenges, it will be
    more important than ever to continue to size and shape the force within
    the fiscal constraints to ensure we meet operational demands, while
    analyzing inventories against current and future demands. We are
    confident, keeping faith with our commitment to train and equip the
    highest quality airmen, that our Air Force will remain capable of
    overcoming any challenge or adversary.

        Senator Gillibrand. Thank you, Lieutenant General.
        Last, Lieutenant General Milstead.

      STATEMENT OF LT. GEN. ROBERT E. MILSTEAD, JR., USMC, DEPUTY
      COMMANDANT, MANPOWER AND RESERVE AFFAIRS, U.S. MARINE CORPS

        Lieutenant General Milstead. Good morning. Chairwoman
    Gillibrand, Ranking Member Graham, and distinguished members of
    the subcommittee, it is my privilege to appear before you
    today.
        Before I proceed, though, I would like to briefly address
    the shooting last night at Camp Lejeune. What we know so far is
    that while on duty at the guard shack, two lance corporals--one
    shot the other one in the chest with his M-4. The wounded was
    transported to the base hospital and was subsequently
    pronounced deceased. The incident is believed to be a negligent
    discharge, but it is under investigation by the Naval Criminal
    Investigative Service to determine if there is evidence to the
    contrary. Once we have further facts, we will provide those to
    you and this subcommittee.
        I have previously submitted my written statement for the
    record, and I look forward to answering your questions.
        [The prepared statement of Lieutenant General Milstead
    follows:]
          Prepared Statement by Lt.Gen. Robert E. Milstead, Jr., USMC
                                i. introduction
        Chairwoman 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.
        Since our founding in 1775, marines have answered our Nation's
    call, faithfully serving the American people and maintaining a world
    class standard of military excellence. 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. Budget austerity presents significant challenges, but
    our individual marines are the Corps' most sacred resource, and always
    will be.
                                ii. end strength
        As we drawdown the Marine Corps' Active component end strength from
    war time levels of 202,000 marines, we have taken deliberate steps to
    construct a force that we can afford to operate and sustain in the
    emerging fiscal environment. Over the past 3 years, we have undertaken
    a series of steps to build our current force plan. In 2010, our Force
    Structure Review Group utilized the then Defense Strategic Guidance and
    operational plans to determine that the optimum size of the Active
    component Marine Corps should be a force of 186,800. The 2012 Defense
    Strategic Guidance, which could be supported by the original
    constraints of the 2011 Budget Control Act, estimated a force of
    182,100 Active component marines. More recently, as we entered into the
    Quadrennial Defense Review, we came to the difficult understanding
    that, under the threat of continued sequestration or some variant, an
    Active-Duty Force of 175,000 marines is what our Nation can afford.
    This end strength is purely budget-driven and accepts risk in our
    ability to carry out major combat operations.
        Our current plan is to achieve a 175,000 end strength by the end of
    fiscal year 2017. We are conducting a measured drawdown with a goal to
    reduce end strength by no more than 7,500 marines per year. This is to
    be accomplished primarily through natural attrition, voluntary
    separation, and early 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 is to keep faith with our marines and their
    families.
        We ended fiscal year 2013 with an end strength of 195,657, achieved
    primarily through increased voluntary attrition of junior enlisted
    marines as well as through the use of programs such as Voluntary
    Separation Pay and Temporary Early Retirement, both of which induced
    additional voluntary attrition from the mid-level enlisted and officer
    ranks. Our end strength goal for fiscal year 2014 is 188,800 marines,
    and will be achieved primarily through reduced accessions combined with
    continued emphasis on voluntary attrition.
                           iii. marine corps reserve
        Your Marine Corps Reserve is also undergoing a reduction in
    Selected Reserve end strength in order to better align structure with
    budget levels. Our plan is to reduce our Selected Reserve end strength
    from 39,600 to 38,500 marines by fiscal year 2017. The reductions will
    come primarily from the junior enlisted ranks and individual
    mobilization augmentees (IMAs). The Reserve component is currently over
    manned in its junior enlisted ranks and critically undermanned in its
    senior enlisted ranks. Decreasing new accessions will yield a more
    balanced Marine Corps Reserve. Given our reduced Active Component
    manpower needs over the coming years, the requirement for Reserve IMAs
    to mobilize with Active component units is likely to decrease. Overall,
    our force shaping measures will leave the Marine Corps with a more
    balanced Reserve component able to reinforce the Active component and
    serve as an integral part of the Marine Corps Total Force in
    accomplishing its assigned mission as an expeditionary force in
    readiness.
        For fiscal year 2014 and beyond, we continue to refine the use of
    incentives and MOS retraining to strengthen unit staffing in
    specialties and grades where we remain critically short. In particular,
    we have targeted our incentives toward recruiting and retention of
    company grade officers, noncommissioned officers (NCO) and staff
    noncommissioned officers (SNCO) in our Selected Reserve units. Both
    officers transitioning from the Active component and recruiting
    officers directly into the Reserve component have been the keys to our
    success. The Reserve Officer Commissioning Program has produced a total
    of 710 lieutenants for the Marine Corps since its creation in 2006. As
    a result, our SMCR ground company grade officer strength has increased
    from 21 to 74 percent.
        We continue to face challenges in manning our SNCO billets in the
    SMCR. As the Active component grew its end strength to 202,000, many of
    our junior marines and NCOs left the Reserves for the Active component.
    Had they remained in the Reserves, many of those same marines would
    have been promoted and filled our SNCOs requirements today. While we
    have directed incentives toward retaining our best marines, the SMCR is
    still critically short SNCOs. This SNCO shortage will take
    approximately 6 years to fix as our post-202,000 accessions reach the
    necessary time to be considered for promotion.
                                 iv. recruiting
        All recruiting efforts for the Marine Corps (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.
        Last fiscal year, we successfully achieved all enlisted and officer
    recruiting goals for both the Active and Reserve components. Our
    current mission for enlisted marines is 25,000 regulars (Active
    component) and 5,523 reservists. We expect to achieve our annual
    recruiting `shipping' mission (i.e. new accessions sent to recruit
    training) and quality goals, but budget reductions may impact our
    contracting efforts and capacity to achieve success in fiscal year
    2015. The fiscal year 2015 mission forecast is 28,370 regulars and
    5,280 reservists.
        Our officer accessions mission for fiscal year 2014 is 1,360 Active
    Duty and 150 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 helping to remedy
    this shortfall.
        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.
                                  v. retention
        For fiscal year 2014, the Marine Corps is on track to achieve its
    end strength target of 188,800 Active component marines (and
    approximately 150 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 continues 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 cyber security technician and counter intelligence specialist.
    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 allow us to shape our career force by targeting
    critical MOSs and supporting 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. Our civilian
    appropriated funded workforce remains the leanest of all services, with
    a ratio of 1 civilian to every 10 active duty marines. 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.
        Over 95 percent of our civilians work at bases, stations, depots,
    and installations across our Nation. Sixty-eight percent are veterans
    who have chosen to continue to serve our Nation; of those, 13 percent
    are disabled veterans. Our civilian workforce steadfastly continues to
    provide vital support to our marines, Reserve marines, their families,
    and our wounded, ill, and injured.
        This environment of prolonged budgetary uncertainty is increasing
    employee stress, morale is declining and, at some point, productivity
    will begin to suffer. Although we began right sizing our workforce in
    2011, in preparation for these current events, we are still facing
    additional civilian reductions of 10 percent or more, which includes
    the 20 percent reduction to our Management Headquarters Activities. We
    are actively seeking ways to achieve these goals through attrition and
    various voluntary workforce-shaping flexibilities; our intent is not to
    conduct a reduction in force (RIF). Additional budget reductions will
    hit in fiscal year 2015 creating further stress to our workforce, both
    in size and in the support our civilians depend on to conduct their
    work and improve their skills.
        During these challenging times, it is imperative that we continue
    to keep faith with our civilian workforce. With additional furloughs
    and overall pay insecurity, we risk losing enormously talented and
    dedicated professionals. As commitment to Federal service wanes,
    military missions will suffer.
                                 vii. 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.
        The Marine Corps is working toward completion of a landmark
    diversity initiative which centered around four diversity task forces:
    Leadership, Mentoring and Accountability; Culture and Leading Change;
    Race and Ethnicity; and Women in the Marine Corps. Three-star general
    officer executive sponsors provided guidance and oversight of each 12-
    15 member task force. The Task Force initiative focused on identifying
    vital recommendations in the areas of culture and leadership and to
    improving the attraction, development and retention of both women and
    minority officers. The task force concept represents a significant
    philosophical shift--from ignoring human variations to a quest to
    understand them in order to drive actions.
        The Marine Corps has established minority officer recruiting and
    mentoring as a priority in our recruiting efforts. We acknowledge the
    accession and retention of minority officers has been a challenge for
    our Corps and are committed to further facilitating the mentoring and
    career development of all our officers with emphasis on our minority
    officers in order to encourage the retention of our most talented
    people.
        The Marine Corps aims to emphasize the operational necessity of
    diversity by educating marines on how diversity can be a force
    multiplier. We also seek diversity through strategic community outreach
    and recruit marketing. To ensure continued connectedness with the
    Nation, we continue to conduct strategic community outreach and recruit
    marketing and ensure quality opportunities for merit-based development
    and advancement for all marines.
                        viii. marine and family programs
        To optimize and influence the health and wellness of the 21st
    century marine, Marine Total Fitness (MTF) establishes a framework and
    methodology for understanding, assessing, and maintaining individual
    marine fitness in support of unit combat effectiveness. This holistic
    focus includes four cords of fitness: body, mind, spirit, and social.
    The goal of MTF is to proactively address the complex issues facing our
    marines and their families after more than a decade of persistent
    conflict.
    Caring for our Families
        During Operation Iraqi Freedom (OIF) and Operation Enduring Freedom
    (OEF), a surge occurred in the areas of family programs to mitigate the
    impact of stressors due to deployments, enable quick acclimation to the
    Corps, build deployment knowledge and skills, and improve access to
    care and official information for marines and families to ensure
    operational readiness. This action resulted in having a positive impact
    on the quality of life of our marines and their families. The 2012
    Quality of Life Study indicated a majority of marines received the
    training necessary to deal with the stress of deployment and/or combat,
    and were satisfied with military support services overall.
        Post OIF/OEF, we must ensure our programs and services remain
    relevant to the requirements of the Corps. We must be flexible enough
    to surge and retract to support future missions and training
    requirements. With 47 percent of marines being married and 32 percent
    having children, our Family Care and Family Readiness Preparedness
    directly supports operational readiness of the Marine Corps.
        The Marine Corps ensures the long-term stability of Marine and
    Family Programs meets all credentialing and accreditation quality
    assurance objectives. We ensure consistency of care across the Marine
    Corps, by implementing and training staff to evidence based practices.
    Programs will be assessed for ways to more effectively and efficiently
    improve delivery of care and services, while strategically
    communicating to our marines and families to increase awareness of all
    the available resources, support, and services.
    Behavioral Health Support
        The Behavioral Health Program acts as an integrated service
    delivery model that facilitates focus of effort for prevention and
    intervention on suicide, substance abuse, combat operational stress,
    and family advocacy. When addressing behavioral health care
    requirements, we typically see clients with multiple stressors or
    conditions.
        Even as the Marine Corps moves into a post OIF/OEF environment, we
    expect a surge of support needs from marines and families facing a
    potential delayed onset of symptoms. To address care requirements, we
    have established a memorandum of understanding with Navy Medicine to
    enable comprehensive care and have taken action to increase our
    community counseling capacity. Over 250 Military Family Life
    Consultants have been deployed to provide confidential care in unit or
    installations settings and augments existing installation based
    behavioral health and resource services. Additionally, through our
    Community Counseling Program, we are enhancing our screening and
    prevention capabilities, and also increasing access to non-medical
    counseling services. Finally, Behavioral Health is implementing the
    Marine Expeditionary Force (MEF) level prevention capabilities to
    provide resources and training for operational commands along with
    providing technical assistance across behavioral health initiatives.
        Our efforts will continue to ensure that marines seek and are
    provided effective care when needed. All marines have a responsibility
    to look out for one another and to assist anyone who may need care.
    Through programs like Marine Awareness and Prevention Integrated
    Training and Operation Stress Control and Readiness, marines receive
    the right prevention tools at the right time to provide them with
    skills to prevent and mitigate stress injuries in themselves, and their
    fellow marines. Additionally, these programs provide commanders support
    in building unit strength, resilience, and readiness. Finally, the
    Marine Corps is increasing our capabilities to follow-up and monitor
    marines identified with suicidal ideation or suicide attempts.
    Sustaining the wellness and readiness of marines and their families
    remains the top priority of the Marine Corps.
    Transition Assistance
        As the Marine Corps looks at lowered end strength in the upcoming
    years, more of our marines and their families will be making the
    transition to civilian life. It is imperative that we ensure that that
    they have the right preparation to reach personal goals and effectively
    translate their military experiences to a successful civilian life.
    Transition is a process, not an event. Beginning at the point of
    recruiting, the Marine Corps strives to provide a continuum of tangible
    learning or experienced based opportunities to ensure that every marine
    is transition ready throughout their career so they can accomplish
    their personal or career goals.
        The Marine Corps Transition Readiness Seminar is a week-long
    program that includes mandatory standardized core curriculum followed
    by the choice of one of three additional 2-day tracks that is in line
    with their individual future goals and objectives. The Marine Corps has
    also put into place pre-separation counseling to help marines translate
    their military skills for the civilian workforce.
        Our next phase will enhance outreach to those who require localized
    support through our Marine for Life Program and its representatives.
    Additionally, our Personal and Professional Development Program will
    continue to focus on spouse employment, access to education and
    professional development courses, and effective management strategies.
    The Marine Corps is committed to not only making the best marines, but
    that the marine and their families have the tools and resources to
    successfully transition and reintegrate back into civilian life.
                    ix. sexual assault prevention & response
        Sexual assault damages lives, corrodes the trust between marines,
    degrades unit readiness and morale, and undermines our warfighting
    mission. The Sexual Assault Prevention and Response (SAPR) Program has
    been enhanced to reinforce our training and advocacy efforts, while
    holding fast to the fact that one incident of sexual assault is too
    many. Our three-phase SAPR Campaign Plan was launched in June 2012 and
    continues to guide the phased implementation of large-scale
    institutional reform, emphasizes prevention through training, and
    directs senior leadership involvement. Potentially a promising result
    of the effort, thus far, has been the continued rise in reporting. With
    sexual assault being a highly under-reported crime, this increase
    appears to reflect an increased level of trust and confidence that
    marines have in their immediate commander and overall Marine Corps SAPR
    Program.
        Commander involvement and constructive dialogue among marines, to
    include bystander intervention, will continue to be one of our greatest
    weapons against sexual assault. Engaged leadership remains the key to
    establishing a culture that is non-permissive to any misconduct or
    crime, especially sexual assault. As the Marine Corps continues to
    reawaken its sense of tradition and ethics, and reinforce the values
    that have made it the finest expeditionary force in history, we will
    also continue to strengthen our prevention and victim care efforts and
    to ensure that the highest standards of discipline are maintained.
    Collectively and persistently, we will ensure that every marine knows
    it is his and her inherent duty to step up and step in to stop this
    crime.
                          x. wounded warrior regiment
        The Marine Corps' Wounded Warrior Regiment (WWR) continues to
    function as a central pillar of our pledge to ``keep faith'' with those
    who have served. Whether a marine is wounded in combat, suffering from
    a chronic unresolved illness, or injured in a training accident, the
    WWR remains committed to providing comprehensive recovery care. For the
    Marine Corps, recovery care is not a process. Care coordinated through
    the WWR is soundly based upon an authentic relationship between care
    providers and the marine and his or her family members. This bond
    allows all parties to be vested in a common purpose: to ensure our
    Nation's wounded, ill, and injured (WII) marines and their families are
    well positioned for their future endeavors.
        Since our WWR was established in 2007, thousands of WII marines and
    family members have benefitted from this command's care coordination
    capabilities. These capabilities include recovery care coordinators to
    help WII marines develop and execute Comprehensive Recovery Plans; a
    medical section to provide medical subject matter expertise, advocacy,
    and liaison to the medical community;; District Injured Support
    Coordinators, the Marine Corps' representatives for WII marines in
    their civilian communities; the Sergeant Merlin German Wounded Warrior
    Call Center and Wounded Warrior Battalion Contact Centers to conduct
    outreach to WII marines and receive calls for assistance; and a liaison
    to the Department of Veterans Affairs (VA) to enhance coordination
    between the organizations.
        In sum, WII marines and their family members receive customized
    support, based upon their assessed needs, from the point of injury or
    illness, through rehabilitation, and finally as they return to duty or
    reintegrate to their hometowns. Also, the Marine Corps does not utilize
    a ``fire and forget'' mentality. Recognizing that most WII marines will
    require some level of assistance after they leave the Corps, the WWR
    provides a minimum of 90 days post-service support to those previously
    supported by a Recovery Care Coordinator. This is accomplished through
    our DISCs or case managers at our call center.
        Marines and their families, Congress, and the public at large can
    be reassured that the Marine Corps, through the WWR, will continue
    recovery care in times of war and in peacetime. Irrespective of the
    global security environment, recovery care support must be enduring in
    view of issues resulting from the current decade of war: catastrophic
    injuries requiring massive amounts of acute care, traumatic brain
    injury, and psychological health problems. These conditions are not
    solved by short-term care and will require continuing services, an
    enduring commitment. Just as the Marine Corps is strategically agile,
    the WWR will endeavor to expand and contract depending upon future
    requirements.
                       xi. semper fit & exchange services
        Semper Fit and Recreation programs align to support the social and
    physical well-being of marines and their families, encourage healthy
    lifestyles, enhance quality of life, and to amplify the Marine Corps'
    focus on mission and readiness. For example, comprehensive strength and
    conditioning programs, High Intensity Tactical Training and Aquatic
    Maximum Power--Intense Training, serve to optimize physical performance
    and combat readiness for all Active Duty and Reserve marines. Another
    program, located at eight installations, Operation Adrenaline Rush
    (OAR), combines Combat and Operational Stress Control principles with
    an outdoor recreation adventure activity to aid in mitigating high risk
    behavior for marines who have recently returned from deployment. OAR
    assists marines with reintegration by empowering small unit leaders,
    maintaining combat readiness, and reinforcing unit cohesion.
        The Marine Corps Exchange (MCX) is an important part of the overall
    non-monetary benefits package and the Marine Corps mission.
    Consistently ranked by marines and families as one of their most valued
    benefits, MCX provides not only a value for marines and families when
    they shop, but also returns dollars to the Marine Corps community. MCX
    success is measured on the program's value and contributions to the
    readiness of marines, as well as our ability to provide unparalleled
    customer service, premier facilities, and valued goods and services at
    a significant savings.
        Semper Fit and Recreation and our Exchange system continue to
    provide direct support to forward deployed marines through recreation/
    fitness/sports equipment and MCX services. Deployed support is one of
    the most important services we provide; our robust Exchange, Recreation
    and Fitness, Communication, and MCCS Wi-Fi services programs not only
    boost and maintain morale, but also help to reduce mission-related
    stress. Moving forward we are committed to increasing efficiencies
    within our business and support models as part of our culture of
    transformation and maintaining relevance to the Marine Corps Mission.
                                xii. 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, gentlemen.
        Lieutenant General Milstead, I know the Marine Corps is
    taking a different approach than the other Services, and that
    part of your process includes forming what the marines call the
    Ground Combat Element Experimental Task Force. This
    experimental task force consists of a battalion-sized ground
    combat unit and will include a control group of an all-male
    squad, with another squad integrated, one-third women, two-
    thirds men, and a third squad, two-thirds women, one-third men.
    These units will be put through a training and evaluation cycle
    that mirrors an infantry's unit predeployment training cycle.
        What is the ultimate purpose behind this experimental task
    force?
        Lieutenant General Milstead. The primary purpose of the
    experimental task force is to look at collective standards. We
    are going after this in basically four lines of effort, if you
    will. The first one is to extend our exception to policy where
    we put officers and staff noncommissioned officers in open
    Military Occupational Specialties (MOS) down to closed units.
        The second one is where we expanded our entry level
    training. You are aware that we have had 45 women successfully
    complete the infantry training in Infantry Training Battalion
    and some more will continue. That has been so successful that
    we are expanding that to the other infantry MOSs like machine
    guns, mortars. We are going to send them to artillery school.
    We are going to put them into armor. Those are individual
    standards. Those are individual tasks.
        This experimental task force is to get at the collective
    tasks, how everybody works together because we do not know what
    we do not know. It will be conducted at Camp Lejeune, at
    Twentynine Palms, and again up at Bridgeport, and it will
    mirror training that we do prior to deployment. The primary
    focus is on collective standards vice individual standards.
        Senator Gillibrand. The only concern that I had is that
    your term, ``control group,'' is being used for the all-male
    squad. I wanted to know what you mean by that because the other
    two squads with women are being measured against the control
    group. Would it not be preferable to have them just actually be
    measured against some performance standard, what your goal of
    the group to accomplish is?
        Lieutenant General Milstead. I believe as they are
    evaluated, they will be evaluated by this control group, if you
    will. It happens to be all male, as you say, because it comes
    from MOSs that we do not have any women in. We have no choice.
        Senator Gillibrand. It is a subtle difference. For example,
    if you have a control group that the mission is to perform A,
    B, and C, the control group should not be judged on do you
    perform A, B, and C as if an all-male unit would perform A, B,
    and C because if you are creating a standard that is what is
    perfectly accomplished, it may well be perfectly accomplished
    in a different way or measured against a very different set of
    standards, as opposed to just measuring how would an all-male
    group accomplish A, B, and C. I guess my point is if your
    control group is how an all-male force performs it as opposed
    to the actual mission of things you want accomplished, it may
    align differently is what I am telling you.
        Lieutenant General Milstead. I understand that, and I will
    tell you that we are looking to include the women, not preclude
    them. They will not be evaluated whether they can do the job
    like men do it. They will be evaluated as to whether they can
    do the job.
        Senator Gillibrand. The job. Correct. That is all I wanted
    to ensure.
        Lieutenant General Milstead. It will not only be uniform. I
    think it is important to emphasize that we have the University
    of Pittsburgh. We have the Center for Naval Analyses. We have
    the RAND Corporation. We have a number of non-uniform external
    agencies that will be involved in the evaluation.
        Senator Gillibrand. Thank you.
        Lieutenant General Bromberg and Vice Admiral Moran, I
    understand that the Army and the Navy just recently relieved
    soldiers and sailors of positions of trust after various checks
    to their records showed they had a disqualifying offense. I am
    very grateful that you took the time to do that review and
    removed these individuals to improve trust within the system.
        Can you tell me if these individuals retired from the
    military or whether they were allowed to remain in the
    Services? If the latter, what types of positions do they
    currently hold?
        Lieutenant General Bromberg. Yes, ma'am. Thank you for the
    question.
        Of the individuals removed from those positions, we removed
    them for a wide variety of reasons. We went back and looked at
    everything for about 10 categories, everything from a previous
    domestic violence or sexual assault to maybe a previous driving
    while intoxicated from 15 years ago, even down to maybe where
    somebody was not suitable for appearance. There is a wide
    variety within that number.
        Now, the actual numbers will be coming back over because we
    have a formal request from Congress to answer those questions.
    We will answer those back formally.
        I can tell you some of those folks--they are no longer in
    that position of trust, and they are back in their primary MOS
    if they were maybe detailed in that job. For example, maybe a
    recruiter who might have been an artilleryman or an infantryman
    before that and maybe they had a DUI 15 to 20 years ago. We
    took them out of recruiting, put them back in their primary
    MOS. That is an example for you.
        Senator Gillibrand. But you will send the full report to
    our office once you----
        Lieutenant General Bromberg. Oh, yes. We are consolidating
    all of that together.
        Senator Gillibrand. Exactly what they were removed for.
        Lieutenant General Bromberg. There were 10 categories we
    looked at, a very detailed scrub of several thousand across the
    force. We feel pretty comfortable that that was the right thing
    to do, obviously.
        Senator Gillibrand. Also, in your prepared statement, you
    informed us that the Army implemented a new policy to ensure
    that any final decision to retain a member convicted of sexual
    offense is fully informed and determined at the Secretary
    level. This same policy also prohibits the overseas assignment
    or deployment of any soldier convicted of a sexual offense.
        Under what circumstances would the Army retain a soldier
    convicted of a sexual offense?
        Lieutenant General Bromberg. I think that is a case-by-case
    answer. But the intent there again is to make sure that we are
    fully informed, so if a lower level organization decides to
    retain that servicemember, they have to forward that up to the
    Secretary's level so we can then review that case and then make
    a final decision. In many cases that I have looked at already,
    some of these people are already in the process. We are
    tracking them very closely. But this gives us full information
    to include preventing someone from being assigned overseas. We
    will pull them back where we have a larger support network to
    do that.
        Senator Gillibrand. We do have convicted sexual offenders
    retained within the force?
        Lieutenant General Bromberg. Well, for example, somebody
    who is in jail, is incarcerated who may not be full due
    processed yet--they are still on our rolls. That counts as
    somebody who is convicted. They could be sitting at Fort
    Leavenworth.
        Senator Gillibrand. They are not just taking a different
    job?
        Lieutenant General Bromberg. No. These are people that they
    have been convicted but because the due process is not finished
    yet, they could still be on our rolls. I can guarantee you we
    look at every one of those. We track those. We know where they
    are at.
        Senator Gillibrand. Thank you so much.
        Senator Graham.
        Senator Graham. Thank you, Madam Chairwoman.
        One thing I want to restate is I support the chairwoman's
    decision to let the MCRMC in February provide their
    recommendations.
        On that, the benefit package. About 50 percent of the
    military budget is personnel costs. Is that accurate?
        Lieutenant General Bromberg. Very close, sir.
        Lieutenant General Milstead. 64 percent of the Marine Corps
    budget.
        Senator Graham. Air Force?
        Lieutenant General Cox. I am sure that is close.
        Vice Admiral Moran. It is very close. Yes, sir.
        Lieutenant General Bromberg. Sir, 48 percent plus or minus.
        Senator Graham. Benefits include pay. Right? Retirement,
    medical and dental, commissary, exchange. Any other benefits
    that we can think of?
        Lieutenant General Bromberg. There are probably several
    that are indirect benefits.
        Senator Graham. That makes the core group I think of what
    we are going to have to be looking at.
        Does everybody on the panel agree that any retirement
    changes need to be prospective and that we grandfather the
    current system enrollees?
        Lieutenant General Bromberg. Yes, sir. The Army's position
    is everybody should be grandfathered.
        Vice Admiral Moran. The Navy, same.
        Lieutenant General Cox. Same for the Air Force.
        Senator Graham. Do any of you envision reducing pay as a
    reform?
        Lieutenant General Bromberg. No, sir. The Army does not.
        Vice Admiral Moran. Not at all.
        Lieutenant General Cox. No, sir.
        Lieutenant General Milstead. Our Commandant has testified
    that he does support the 1 percent vice the 1.8 percent, as
    well as--
        Senator Graham. That is a pay raise versus a pay cut.
        Lieutenant General Milstead. Exactly, and that is my point,
    Senator. Nobody is for reducing pay. We are slowing the growth.
        Senator Graham. What does an E7 gunnery sergeant in the
    Marine Corps make?
        Lieutenant General Milstead. I could not answer.
        Senator Graham. Well, we have the pay scales. Will somebody
    find that? I do not want the public to believe that we are
    paying people elaborate salaries because we are not. We are
    paying them, I think, a decent salary maybe at best given what
    we ask of them.
        Housing is another area. Right? If you are assigned to
    Washington, DC, and on-base housing is not available, what does
    the Army do for that soldier?
        Lieutenant General Bromberg. They get a housing allowance.
        Senator Graham. Is it 100 percent of the cost?
        Lieutenant General Bromberg. Pretty close in most areas.
        Senator Graham. One of the proposed reforms is to have some
    cost sharing there.
        Lieutenant General Bromberg. Yes, sir.
        Senator Graham. Why would you not be allowed housing? Why
    would somebody have to go off base? Just not availability?
        Lieutenant General Bromberg. Just not available. We do not
    build enough quarters.
        Senator Graham. Is that true in the Marine Corps?
        Lieutenant General Milstead. Or by choice. We do not have
    sufficient housing for everybody, but a lot of people do live
    in town. That 100 percent is based on the average cost, and it
    is done by area, as the Senator is well aware. It is your
    choice. If you live in the Taj Mahal, your 100 percent of the
    average will not cover it as opposed to where you do live.
        Senator Graham. Right. We are not going to subsidize a $2
    million home, but we are going to pay you the average.
        I think one of the proposals is to have some cost sharing.
    Is that correct?
        Lieutenant General Milstead. It is. It is to take it from
    100 percent of the average down to 95 percent of the average.
        Senator Graham. What will that mean to the average soldier
    here in the DC area? Does anybody know?
        Lieutenant General Milstead. I would offer it would depend
    on where they live. Again, if they are living within the means
    of the 95 percent, some people actually have sufficient delta
    between their basic allowance for housing and the rent they are
    paying, whereas other people choose to maybe have a larger home
    or a more elaborate home. Then they will pay some more.
        Senator Graham. From your point of view--each of you very
    quickly if you could--if you implemented that change of a 5
    percent cost share, reducing it to 95 percent of the average,
    is that something the Services could absorb, and is that fair
    given our budget problems?
        Lieutenant General Bromberg. Sir, I think when you look at
    it as a hard choice against readiness, I think it is something
    that we have to do as we go forward, and I think you have to do
    it over time.
        Vice Admiral Moran. I would agree with that statement.
        Lieutenant General Cox. I would agree with the statement as
    well. It is a phased-in approach, not taking effect until 2017.
        Lieutenant General Milstead. Again, the Commandant has said
    that if we do not arrest the growth of this, that it will
    eventually eat into our readiness.
        Senator Graham. That is something I am very open-minded to
    because you are going to have to affect personnel somehow.
        An E7 makes $33,000 to $50,000, depending on how long you
    have been in. If you have been in 18 years, it is about
    $50,000. That is probably base pay without benefits. It would
    be more than that, I am sure.
        Regarding TRICARE. Do you all support some type of premium
    adjustment over time for TRICARE?
        Lieutenant General Bromberg. Yes, sir.
        Vice Admiral Moran. Yes, sir.
        Lieutenant General Cox. Yes, sir.
        Lieutenant General Milstead. Yes, sir.
        Senator Graham. We have not had a premium adjustment since
    1995. Is that correct? Yes, I think it is.
        Now we are talking about retired people, and that comes out
    of DOD's budget. Right? TRICARE costs for retired personnel
    comes out of DOD's budget. When you pay that out, you have less
    for the operational Services. Is that correct?
        Lieutenant General Bromberg. Yes, sir.
        Senator Graham. TRICARE is competing against readiness,
    modernization, everything else. Is that true in all the
    Services?
        Lieutenant General Bromberg. Yes, sir. All our benefits are
    competing against readiness.
        Senator Graham. When it comes to sexual assault, I think it
    would probably be good sometime down the road to have a hearing
    to see if some of these reforms are actually working.
        Is the Army going to adopt the Air Force pilot program of
    providing a JAG to every victim?
        Lieutenant General Bromberg. Sir, we have a special victims
    capability, which we do have over 105 JAGs trained now to
    provide special victims counsels, of which we actually have 52
    serving today. Additionally----
        Senator Graham. My question is, would every----
        Lieutenant General Bromberg. It is available to every
    victim today. We have enough. Yes, sir.
        Vice Admiral Moran. Yes, sir. We fully implemented that
    program this year.
        Senator Graham. The Marine Corps?
        Lieutenant General Milstead. The Marine Corps has the
    Victims Legal Counsel Organization.
        Senator Graham. Let us know if you need more JAGs because I
    think we are all willing to supply what you need to deal with
    this problem.
        Back to the Marine Corps and the experiment about
    integrating women into combat units. Do other marines,
    equivalent to the Marine Corps--the British marines, do they do
    this? Do other nations' military services do this? Generally
    speaking, what is your initial impression of women going
    through the infantry school, the 45 that have come out? Do you
    think that we are on to something here that this is an untapped
    resource for the Marine Corps, using women in direct combat?
    Where do you see this going, General?
        Lieutenant General Milstead. To the first part of your
    question, the other nations, we are meeting with them. We just
    met with the Danes. The Danes are fully integrated, completely
    fully integrated and very enthusiastic about it. The British
    are not. We are talking to the Australians. We are talking to
    the Canadians. We are talking to the Israelis, the Koreans. We
    are talking to other nations and seeing what they have done and
    looking at the path that it has taken them, how long it has
    taken them, and where they have made the mistakes and where
    they have not so we can avoid those.
        As far as the 45 that have come through, they have been
    successful. It is what it is. They have done very well.
    Including the women and expanding the opportunity is that,
    expanding the opportunity and giving them the opportunity to do
    more. It has nothing to do with the fact that we do not have
    enough men to fill the ranks. It is to expand opportunity and
    allow them to do more. We are very enthusiastic, and we are
    optimistic about what we have seen so far.
        I will end it the way I started. We do not know what we do
    not know, and that is why we are going at this in a very
    deliberate, measured, and responsible manner, so that we can
    determine that and do it reasonably.
        Senator Graham. Thank you.
        Senator Gillibrand. Senator Kaine?
        Senator Kaine. Thank you, Madam Chairwoman.
        Thank you to the witnesses.
        Personnel issues raise a whole series of questions.
    Thirteen years of war imposes a set of stresses that is really
    unique in the history of the Nation because of the length of
    the engagements in Iraq and Afghanistan. We have imposed our
    own stresses with the budgetary uncertainty that DOD and other
    Federal agencies have been under. That does not make it any
    easier on your people. I appreciate your service in these
    difficult and challenging times.
        Since Lieutenant General Milstead has talked a little bit
    about the Marine Corps effort with respect to opening MOSs up
    to women on gender-neutral requirements, I would like to ask
    the other witnesses to talk about it in your own Services. Just
    1 year into this new policy, talk about what you are seeing.
        Lieutenant General Bromberg. Yes, sir. We are very excited
    about our program. We think we have a lot of positive things
    going on right now. Our program is an incremental, integrated,
    and scientific approach to look at that with two foundational
    pieces to it.
        One, we have cultural studies ongoing right now to look at
    how women integrate in organizations where women have not
    served before. We constantly survey the units where we have
    opened up positions today so we see how the women are
    integrating, what is the reaction of the men, what is the
    reaction of the females. We constantly assess. We have outside
    groups doing that. We are looking at the cultural piece.
        Second, we are looking at the physical demands. In the
    physical demands piece, we are looking at the 31 most
    physically demanding tasks and we are doing this with a very
    scientific approach. In fact, right now we have 500 soldiers
    involved down at Fort Stewart, GA, and they are looking at
    those specific tasks and the scientific measurements of how a
    person has to do a task, oxygen intake, certain body movements,
    to establish a very gender-neutral standard. Then it is about
    that task. How do you accomplish that task?
        At the end of the day, we will apply that task in some
    easier manner, but it will apply against men and women. We
    expect to eliminate men in the future, just as well as it will
    bring women in.
        We think this is coming together very well. We have opened
    up more positions this year. We have just opened up over 33,000
    more positions to women across the force, and we will continue
    to do that. Now we are starting to look at how do we build the
    cadre or the leadership because, like the Marine Corps, we do
    not have any serving infantry female officers. How do you build
    that and how do you get those people there so you have the
    right leadership in place? We are very excited about what we
    are doing and we think we are on the right path with this
    integrated and scientific approach.
        Senator Kaine. Admiral Moran?
        Vice Admiral Moran. Yes, Senator, the Navy is practically
    entirely open now with the exception of the special forces
    SEALs and special boat team crewmembers. That is really up to
    Admiral McRaven who is doing the study now with U.S. Special
    Operations Command (SOCOM), and whatever they give us is how we
    will adopt it.
        Our most recent effort here has been women in submarines.
    It is very successful. The officer is front and first. We
    started there to make sure we had leadership in place before we
    would bring in enlisted members of the Service. So over the
    last couple of years, we have brought female officers into the
    Ohio-class submarine. That has done exceptionally well. Next
    year, we are going to start with Virginia-class, the smaller
    submarines. We will again bring officers in there. About a year
    from now, there is a panel and a task force underway led by
    Admiral Ken Perry who is the submarine group commander today
    who is bringing recommendations forward to CNO and Secretary of
    the Navy, on not when or not if, but how to bring enlisted
    females into the submarine force.
        As you might imagine, it takes time to train these in the
    submarine community. Several of the rates are highly technical.
    It takes up to 2 years to train them. We have to bring in
    laterally from other communities female enlisted at the chief
    petty officer and senior petty officer levels to populate those
    ships before we bring in junior enlisted.
        That is all going to happen over the next couple of years,
    and so we are very positive on it. I think, across the Navy,
    the quality of young females in the enlisted force and the
    officer force is extremely good, and they are having a lot of
    success in those warfare specialties.
        Senator Kaine. That is great. Secretary Mabus has spoken
    recently about the submarine project and has spoken of it in a
    very optimistic way, and I am glad to hear you echo that.
        General Cox?
        Lieutenant General Cox. Sir, I had the privilege of being
    the Commandant of Cadets at the Air Force Academy just a couple
    of years ago. If you look back when we first brought women into
    the Air Force Academy, it was single digits. When I was there,
    a single digit percentage. Now it is over 20 percent. We have
    demonstrated that there is absolutely no issue with the
    integration of women across the board.
        As we have moved forward now into what we have across the
    board for the Air Force, there are less than 4,000 billets
    between the Active Duty, Guard, and Reserve that are currently
    restricted to men. That we are working, along with SOCOM and
    Air Force Special Operations Command, to make sure that we have
    those gender-neutral standards and we will follow the lead with
    that as well. We are well on track to make sure all this is
    squared away.
        Senator Kaine. Great. Thank you. I think many of the
    members of this subcommittee are very focused on this issue and
    probably annually we are going to be wanting to get status
    reports.
        Let me just ask a question. I know, General Cox, the Air
    Force has been conducting force shaping and voluntary
    separation policies to allow servicemembers to leave before
    their service commitment as we are looking at reductions in end
    strength. Can any of you provide any updates about force
    shaping and voluntary separation policies and how your branches
    are approaching those questions?
        Lieutenant General Cox. Sir, what we started with is the
    commitment from the Chief and the Secretary that we will make
    sure that all airmen have 6 months' notification prior to any
    kind of involuntary separation and that we would focus on
    making sure that it was a voluntary opportunity prior to any
    involuntary separation. Right now, we have processed and
    approved almost 5,000 voluntary separations, whether it is
    temporary early retirement authority, so that 15- to 20-year
    authorization or voluntary separation. We are well on our way.
    We have all the appropriate authorities to be able to take
    advantage of all these programs. I think we are on track to
    make sure that is done. Then if there is an involuntary
    separation, we give at least 6 months prior to them separating.
        Senator Kaine. Others on this question?
        Lieutenant General Bromberg. Yes, sir. With the magnitude
    of the cuts in the Army over this time period, we have reduced
    our recruiting and we have also encouraged natural attrition.
    But that is not going to be enough. We are going to have to use
    involuntary measures. This year we have already conducted one
    early retirement board for lieutenant colonels and colonels and
    asked 236 of those officers to depart. We are in the process
    right now of conducting officer separation boards that will
    affect approximately 1,800 captains and majors that will be
    asked to leave the Service this year as well. Additionally, we
    have also done the same with the senior noncommissioned
    officers, asked them to retire early, and we will also go down
    all the way to the staff sergeant level. We just cannot get
    there to balance our readiness with our future needs without
    doing involuntary separations.
        Senator Kaine. Madam Chairwoman, my time is up, but could
    the other two witnesses answer briefly this question?
        Lieutenant General Cox. Senator, we are not doing any
    involuntary right now. Our manpower projections through the
    FYDP are steady. We do not see the need at this point to do any
    involuntary. All of it is through natural attrition.
        Lieutenant General Milstead. That is the same with us. Our
    measured and gradual glide slope, if you will, is focused
    primarily on natural and voluntary measures.
        I would like to take this opportunity to thank you for
    those force shaping authorities that you have given us,
    measures such as Temporary Early Retirement Authority (TERA),
    Voluntary Separation Pay (VSP), time-in-grade waivers. We are
    making use of these, and they are helping us maintain faith as
    we draw down.
        Senator Kaine. Thank you.
        Senator Gillibrand. Senator Ayotte.
        Senator Ayotte. I want to thank the chairwoman.
        I want to thank all of our witnesses who are here for their
    service and leadership for our country.
        I just wanted to follow up on this issue of the proposed
    benefit changes. Number one, let me add my support for what the
    chairwoman and ranking member want to do with regard to the
    MCRMC. As I understand it, just to correct the record, just to
    make sure it is clear, in fact, in 2012 we did authorize
    TRICARE premium increases and as well as pharmacy co-pays in
    2013 for Active Duty family members and retirees. Am I wrong on
    that on TRICARE?
        Lieutenant General Cox. We will have to come back to you,
    Senator. I do not know exactly what date it was.
        [The information referred to follows:]

        Congress permitted small increases in the TRICARE Prime enrollment
    fees for working age retirees and some adjustments to retail and mail
    order pharmacy co-pays in the fiscal year 2012 and fiscal year 2013
    budget and legislative cycles, but these changes are not enough to
    sustain the benefit in the long-term. For example, when TRICARE was
    fully implemented in 1996, a working age retiree's family of three who
    used civilian care contributed on average roughly 27 percent of the
    total cost of its health care. Today, that percentage has dropped to
    less than 11 percent. While health care costs have doubled over this
    timeframe, a family's out-of-pocket expenses, including enrollment
    fees, deductibles, and cost shares, has grown by only 30 to 40 percent.

        Senator Ayotte. I think I remember this coming up before
    the Senate Armed Services Committee and I have before me the
    provisions of the defense authorization. I just want to make
    sure that that is understood for the record because I believe
    we have already given authority and it has been implemented
    with TRICARE premium increases for 2012 for retirees and as
    well for pharmacy co-pays in 2013.
        One thing that I think is just an overall question that all
    of us need to think about--and I mean us collectively as
    Congress--is that when we are facing in the overall fiscal
    picture that two-thirds of our spending is focused on mandatory
    entitlement programs that need significant reforms--and if we
    do not address them, ultimately you are going to eat up all
    discretionary spending, including defense spending. I
    understand why you are asking for it and I understand the
    challenges you are facing on a budgetary level with regard to
    readiness. However, I see us again asking our men and women in
    uniform, who have sacrificed the most, to take these kinds of
    cuts first, whether it is to their health care, whether it is
    to their housing, whether it is to their commissary.
        I think a question we should ask ourselves here in
    Congress, is this the right thing to do when we are not willing
    to take on some of the bigger, harder questions? Again, we are
    putting you in the situation where you have to say to us, our
    personnel costs have risen. We all know that the greatest asset
    we have in our military are our people.
        I am not asking you to answer that. I am just making that
    as a statement. I think it is a question for all of us that we
    should look in the mirror and answer for ourselves before we
    ask our men and women to make these kinds of sacrifices.
        But I do have one question that I am very worried about
    with regard to these proposals. Regardless, we have the MCRMC.
    We are waiting for what they are going to say. That is the
    impact on our junior enlisted because it seems to me that if we
    are going to increase commissary costs or reduce the percentage
    of basic allowance for housing, that the group that could get
    hit the most is the junior enlisted because of the amount that
    they make. I have asked this in prior panels. But I think it is
    important for us to understand what does that do to your
    average junior enlisted. I would like to know what diminishes
    their pay overall and their package because in terms of what
    they make because I think we need to understand that from an
    average perspective of a junior enlisted, not that I want to
    see any of you more senior members to be put in a position,
    given the sacrifices you have made. I am thinking about our
    junior enlisted men and women who really make the least amount.
    Some of them, unfortunately, have been on food stamps and
    things like that, which is shameful. I think this is a
    consideration for us. I would like to hear back on that of what
    the impact specifically is, how much a junior enlisted on
    average makes, what does this do in terms of their take-home.
        Lieutenant General Bromberg. Yes, ma'am. We will follow up
    with specifics on his actual pay.
        Senator Gillibrand. That would be great because I think it
    is important for all of us to understand that with that
    category of individuals in particular.
        Lieutenant General Bromberg. If I could, ma'am. We have to
    look at it as a holistic package because not all the junior
    enlisted are married. We have to look at married people. We
    have to look at single people, who are living in the barracks.
    We have to put that together so you can understand the whole
    thing.
        Senator Ayotte. I think that would be great. I just want to
    know because we ask a lot from them, and I want to make sure
    because they are the ones that make the least.
        The one issue I wanted to follow up with Lieutenant General
    Milstead. I had the chance to have dinner with the Commandant
    recently. As I understand, he is reaching out into the civilian
    sector, including to people like Sheryl Sandberg, to say how do
    we do a better job of keeping women in the Marine Corps so that
    they can go on and serve in more senior leadership positions.
    Can you tell us about that? I was very encouraged when I heard
    what he is trying to do to keep women in the Marine Corps, not
    just enlistment but for the long haul to help lead the Marine
    Corps.
        Lieutenant General Milstead. We are about a year into a
    talent management task force effort that crosses the width and
    breadth of the Marine Corps, focused on primarily the officer
    ranks. I hesitate to use the word ``diversity,'' but it is
    across the entire spectrum.
        One of the task forces focuses on women and how do we
    retain women because, many of them have to make tough
    decisions? Am I going to stay at this or am I going to do the
    things that I want to do? I want to be a mother. I want to have
    a house. I want to do these things. Can they do both or
    whatever? Just talking earlier today with one of our female
    colonels, and it came up. Often it is just somebody stopping
    and saying, what do I have to do to keep you in the Marine
    Corps? What is it you need? What is it we can do?
        We are more attuned to this today. I am in my 40th year of
    this. It was night and day when I first began. The Commandant
    has reached out. It is tough because we have to grow. In
    industry, you can bring somebody in laterally, I can bring a
    female vice president in. I have to grow a colonel, and that
    takes 18 to 19 years. We are working very hard at this.
        But I will end with that we have been downsizing over the
    past 3 years, and in those 3 years, we have still managed, be
    it small, but we have increased our percentage of females
    within the U.S. Marine Corps.
        Senator Ayotte. I think this is important, and I just want
    to make sure that people understand that you are reaching into
    the civilian sector to women leaders in the country with a
    desire to keep women in leadership in the military. I was very
    encouraged by what I heard, the affirmative efforts, that the
    Marine Corps is making. I am sure the other Services are trying
    to make similar efforts. I thank you for that.
        I also very much appreciate what all of you are doing.
        I am going to try to submit some questions for the record
    with regard to how things are going with the special victims
    counsel on the sexual assault issue, which I think has made a
    huge step forward in terms of providing support for victims and
    of seeing increased reporting of sexual assaults.
        I thank you all for being here.
        Senator Gillibrand. Thank you.
        When you respond to Senator Ayotte's questions on that
    specifically, I would be grateful for the response as well
    because it is an issue we are going to follow together to make
    sure it works as intended.
        Senator King.
        Senator King. Thank you.
        Gentlemen, I apologize for being late. I was meeting with a
    deputy secretary of the United Nations trying to make it so you
    do not have to do what it is you do any more than necessary.
    [Laughter.]
        Admiral Moran, the CNO was recently talking about longer
    deployments and additions to ship manning in terms of the
    budget. We are going to talk about salary and some of the
    personnel challenges that you face. But what about the
    nonfinancial factors? Are there morale issues in terms of
    multiple deployments, longer deployments? Is there a stress
    factor on your men and women?
        Vice Admiral Moran. Thanks for the question, Senator.
        Absolutely. I would say the thing that I hear most back
    from sailors out in the fleet is this notion of being very
    unpredictable the last several years, 13 years of combat, but
    especially the latter half of those 13 years, for the Navy has
    been stressful in the sense that we have had back-to-back
    deployments, long deployments of carrier strike groups around
    the Fifth Fleet, Arabian Gulf area, out in the Pacific. Those
    unpredictable moments put a lot of stress on sailors and
    families, in particular. When a spouse of a sailor kisses her
    husband or says goodbye to his wife and the comment is I will
    see you when I see you, it is a pretty good indicator that
    there is a sense of unpredictability about when they are going
    to see them again coming off deployment.
        We have had a lot of extended deployments to deal with
    international and national emergencies around the globe. You
    think Syria. You think Libya. You think all of those places
    where naval forces were in the area and were asked to extend to
    participate in providing deterrence or cover for our allies and
    friends.
        That is driving the discussion about how we can make
    deployments more predictable. One way to do that is to go to a
    slightly longer deployment schedule but stay committed to that
    deployment schedule. In other words, if you are going to sign
    up for 8-month deployments, then you better stick to 8-month
    deployments. That is what the CNO is referring to in those
    longer deployment issues.
        Senator King. I will address this question to you, Admiral,
    but any of you can chime in. Sequestration raises its ugly head
    again in 2016. What are the impacts that you see there in terms
    of deployments and other kind of readiness, training, and those
    kinds of activities? I will start with you, Admiral, but I
    would like to hear from you all.
        Vice Admiral Moran. Yes, sir. 2013 was a really tough year
    for all of us. In the Navy, we canceled deployments. We delayed
    the deployment of the Truman Strike Group. We brought air wings
    back and put them down to the tactical hard deck, which is
    essentially minimum flying that just keeps them safe as opposed
    to proficient. Those over time, the longer you stay at that
    level of training for aviators, in particular, there is a cost
    on the back end.
        Senator King. You do not have to speculate on 2016 because
    you experienced it in 2013.
        Vice Admiral Moran. Precisely, yes, sir. I think we are
    back to something similar to that because the rules under that
    law do not allow us to move money around in different colors of
    money and pots of money to make up for operational readiness
    accounts.
        Senator King. It was designed to be stupid and it succeeded
    brilliantly.
        Vice Admiral Moran. Yes, sir. We felt that pain.
        Senator King. You may not want to say that, but I can say
    that.
        Vice Admiral Moran. I think if we do not see some relief on
    sequestration, it is possible that 2016 and beyond could look a
    lot like what 2013 did.
        Senator King. As a matter of fact, my impression is it may
    be worse because in 2013 there were some unused monies, there
    were funds that carried over that are not going to be there.
        Vice Admiral Moran. In the Navy, that is true, yes, sir. We
    have used up the money that we were able to cobble together
    from accounts from different years and different colors of
    money in 2013 just to make up for some of the operational
    impacts.
        Senator King. Gentlemen, your view.
        Lieutenant General Bromberg. Sequestration drives the Army
    down to a far lower level than 450,000 that is being discussed
    today. That will prevent us from being able to execute----
        Senator King. Full sequestration would take you to 420,000.
        Lieutenant General Bromberg. Yes, sir. It will drive us to
    a level that we cannot support the national strategy as written
    today. That is our big concern.
        To bring it back to your earlier question, sir, if you talk
    about longer deployments or more deployments today, we do not
    see the demand changing. If the demand for forces stays as high
    as it is with a smaller force, our ability to cycle those
    forces, give that break time in between, this cumulative effect
    is only going to get more challenging. Lump that with decreased
    ability to pay for readiness at the same time. It is going to
    put us in a really tight situation. It is very untenable for
    us.
        Senator King. We talk a lot about readiness. Readiness
    really involves risk.
        Lieutenant General Bromberg. Yes, sir, and that is where we
    are going to start taking unacceptable risk.
        Senator King. Risk equals young men and women's lives.
        Lieutenant General Bromberg. Yes, sir.
        Senator King. General, your thoughts.
        Lieutenant General Milstead. Most marines join the Marine
    Corps to deploy. That is why they join the U.S. Marine Corps.
    They want to deploy. If you take us to sequestration, we have
    already said that is going to be 175,000. That is not a
    strategy-based number. That is a fiscally-based number. That
    will be about a 1:2 dwell. There will be risk, and I will
    codify risk in that if we have a major contingency operation
    (MCO)--the Marine Corps is going to war--there will be no
    dwell. We are all going. We will leave some folks in the back
    to----
        Senator King. You are all going for the duration.
        Lieutenant General Milstead. We are going to war and we
    will come home when it is done. That is your 175,000 force in
    the Marine Corps under full sequestration under a MCO.
        Senator King. General, what is happening in the Air Force?
        Lieutenant General Cox. Sir, we lived through this,
    obviously. In 2013, 31 fighter squadrons were grounded. We need
    to have our entire combat air forces, 80 percent of that has to
    be ready in 30 days. We do not have tiered readiness. When you
    ground squadrons like that, you cannot meet the MCO that the
    general is talking about.
        Senator King. Is there not a lag time? If you ground the
    squadron and you do not have the training, it is not like you
    can just turn it back on in a day. Is that not correct?
        Lieutenant General Cox. That is correct.
        Senator King. Let me ask a different kind of question
    because this is personnel and we are talking about compensation
    and those kinds of things. How are you doing on recruiting? Are
    you getting the people you need? That is the ultimate test of
    whether compensation is adequate. Just very quickly. I am out
    of time.
        Lieutenant General Bromberg. Sir, for this year, we have
    met our recruiting goals. We see our challenge in the future
    with more people having challenges with meeting our standards,
    and then we have to look at the compensation as you go forward
    and see how that plays to get this All-Volunteer Force. Today
    we are okay. The future is our concern.
        Vice Admiral Moran. Recruiting. We just hit our 81st
    consecutive month of meeting our goal. But we are seeing our
    attainment of that goal later in the month, which means it is
    getting harder to meet our goal. That is something we are
    tracking very closely.
        Senator King. Does your recruiting relate to the economy?
    If the economy were stronger, would it be harder?
        Vice Admiral Moran. Yes, sir.
        Senator King. As the economy hopefully strengthens, that is
    going to create issues.
        Vice Admiral Moran. Sir, we have to watch both recruiting
    and retention. Those two together will give us indicators in
    the health of the force going forward.
        Senator King. General?
        Lieutenant General Cox. Sir, right now we are meeting our
    recruiting goals. The same thing with the economy. We will see
    in the future. But we just need to make sure we have the right
    compensation package for an All-Volunteer Force.
        Senator King. Marines?
        Lieutenant General Milstead. We have been at war for 13
    years, and if a young man walks into a recruiting office today
    and signs up, he is going to have to wait 6 to 8 months before
    he ships. They still want to join the Marine Corps. We are
    doing well.
        Senator King. So you, in effect, have a waiting list.
        Lieutenant General Milstead. We do. A female will ship a
    little sooner, but the young men and women--and it is 99.7
    percent tier one, which means high school graduates. The mental
    category 3 alphas are around 75 percent. They join the Marine
    Corps because they want to join the Marine Corps.
        Senator King. It speaks well of your organization, I
    believe.
        Madam Chairwoman, thank you.
        Senator Gillibrand. Thank you, Senator King.
        Thank you all for your testimony. This is extremely vital
    and important to the deliberations we will pursue in writing
    the next National Defense Authorization Act. Thank you so much.
        Senator King. Madam Chairwoman, can I ask one other
    question?
        Senator Gillibrand. Go ahead.
        Senator King. I apologize.
        We were talking about lowering the size of the Services. We
    hope the Army does not go to 420,000, but it is probably going
    to somewhere in the neighborhood of 450,000. I am interested in
    what you are doing for people who are leaving. The extent to
    which there is out-placement counseling, I want to know if you
    have people to help these young people going out into the job
    force. I think that is very important because, as the Services
    do shrink somewhat, we want to be sure that these young people
    have the best opportunity.
        Lieutenant General Bromberg. Yes, sir. We have a very
    robust program, over 700 counselors worldwide to help people
    become career-ready. We are meeting the career-ready standards
    by the Veterans Opportunity to Work Act. We have great
    partnerships across the Nation and globally with large
    companies, small companies, to help soldiers transition. We are
    in our first full year of all these. We are getting better and
    better with compliance. We start 12 months out before a soldier
    leaves the Service so they have a full year to start getting
    ready. We have great examples of programs that are
    credentialing programs. We have over 12,000 people that are
    signed up, enrolled in credentialing programs today that give
    them a civilian credential for their military occupation. We
    have a whole wealth of programs that we think we are supporting
    the soldiers with.
        Senator King. I presume you all are doing similar kinds of
    programs. I just think it is very important, and the
    credentialing thing, I would love to work with you on that
    because the idea that you have an electrician in the military
    and they need an electrician's license in one of the other
    States. That ought to be automatic. To the extent we can do
    that, that to me would be a very high priority. Thank you.
    Thank you very much, gentlemen.
        Thank you, Madam Chairwoman.
        Senator Gillibrand. We are expecting a vote around 11 a.m.
    but I am going to start the next panel, and we will take a
    break when the vote starts. The first panel is excused. The
    second panel is welcome to come up. Please join us. Please be
    seated.
        On the second panel, we have the senior enlisted advisors
    of the Services: Sergeant Major of the Army Raymond F. Chandler
    III, Master Chief Petty Officer of the Navy Michael D. Stevens,
    Chief Master Sergeant of the Air Force James A. Cody, and
    Sergeant Major of the Marine Corps Micheal P. Barrett. I now
    invite you to present your opening statements. Sergeant Major
    Chandler?

          STATEMENT OF SMA RAYMOND F. CHANDLER III, U.S. ARMY

        Sergeant Major Chandler. Thank you, Madam Chairwoman.
        Chairwoman Gillibrand, Ranking Member Graham, and
    distinguished members of this subcommittee, thanks for the
    invitation to speak today. Representing the Army that I love is
    a very humbling experience. I appreciate the support this
    committee has given over the past several years.
        This past year has brought some significant changes to the
    Army, including sequestration, a government shutdown,
    furloughs, and an accelerated drawdown. As always, the Army
    team has risen to the challenge.
        In this 13th year of our longest war, more than 35,000
    soldiers, as you well know, are still in Afghanistan, and right
    now it is about 7 p.m. there and there are several young Army
    noncommissioned officers and soldiers who are working with our
    Afghan partners to conduct combat operations. Their focus, and
    rightly so, is helping the Afghans to get better so they can
    defend themselves into the future.
        An additional 120,000 soldiers are forward stationed or
    deployed in nearly 150 countries.
        Finally, lest we forget, more than 5,000 men and women from
    the Army have given their lives on behalf of the Nation since
    September 11. Their service and sacrifice cannot be forgotten.
        But even in the midst of these challenges, our mission has
    not changed, which is to prevent conflict, shape the
    environment, and when necessary, fight and win our Nation's
    wars.
        As General Odierno has recently stated, it is essential
    that our total Army, Active Duty, Guard, and Reserve, be ready
    to accomplish the range of military operations we are directed
    to perform. We must also have a range of capabilities postured
    in the proper components in order to have a sustainable force
    mix both now and into the future.
        This year, I have traveled tens of thousands of miles to
    visit our soldiers serving in harm's way and dozens of other
    locations across this Nation and around the world where
    soldiers, families, and our Department of the Army civilians
    are assigned. My wife is here with me today who is a travel
    partner with me and speaks with their family members and has a
    great perspective which she informs me of everywhere we go.
        While there, I break bread with our soldiers, engage in
    conversations, and answer their questions. I would like to take
    this opportunity to share our soldiers' top five concerns over
    this past year, but before I begin, you should know that I have
    never received a question or comment from anyone on our Army
    team about being unwilling or unable to follow through on their
    oath of service. They remain committed to do what the Nation
    asked of them. They recognize there are many threats on the
    horizon, and they want to be ready.
        The fifth most common concern is about the state of
    readiness of our Army. Our soldiers are concerned about the
    availability of the training and equipment that has allowed
    them to be successful and victorious over these past 13 years.
    They are concerned about the decreasing end strength which may
    embolden our potential enemies. I tell them that the current
    drawdown is our only course of action to follow through on our
    commitment to them, the Army, and the American people, to be
    ready when the Nation calls.
        The fourth top concern is uncertainty. During the furloughs
    of the last summer and the government shutdown in the fall, our
    civilians shared their fears about continued employment, and
    soldiers and families told me about the ripple effects it has
    had on them. That uncertainty and unpredictability has become a
    major distraction for our Army. I would like to tell you thanks
    for passing the Bipartisan Budget Act which gives us some
    measure of predictability and the ability to rebuild readiness
    over the next 2 years. However, this is a short-term fix and
    sequestration, as you well know, looms in 2016 and beyond.
        The third top concern is about indiscipline in our ranks,
    including sexual harassment and assault. During every town hall
    over the past 2 years, I have told soldiers about the cost of
    this threat to our Army, its victims, and ultimately the
    American people whom we serve. Over the past 8 months, however,
    the soldiers in the audience have been responding more
    positively with questions about their responsibility,
    suggestions on how the Army can do better, and several
    instances of soldiers sharing their experience as a survivor to
    educate others. I finish by telling them that there can be no
    bystanders in these issues and that as Army professionals, we
    have a duty to police our force and ensure every soldier, no
    matter what rank or position, is a person of character and
    commitment.
        Their second top concern includes regulatory changes that
    have been ongoing within our Army for the past several years.
    These primarily focus around the Army uniform and personal
    appearance. Soldiers know the Army is based on discipline and
    standards. They ask me how to continue to look and act like an
    Army professional. Related to this, I have received questions
    about new policies on tattoos, the uniform as they wear it, and
    how the Army will evaluate who can serve in a particular
    military career field.
        Finally, the number one concern of our soldiers relates to
    the work of DOD and Congress on the MCRMC. Some of their
    concerns seem to come and go. For instance, commissaries has
    only recently become a focus of concern. Tuition assistance
    last year and TRICARE health coverage for family members. But
    the one issue that has never wavered is retirement reform. I
    tell soldiers that no one, including our military leaders, our
    Senators and Representatives, and the President, has stated
    that our current retirement pay will change for those who
    currently serve, but that it may, as a part of this commission,
    change in the future. I tell them that you and your colleagues
    have told us of your decisions and will honor their service and
    sacrifice.
        As we work collectively on this issue, we must remain aware
    that proposed changes not only affect our ability to recruit
    future soldiers and their families but also retain our highly
    competent and battle-tested soldiers who are integral to our
    continued defense superiority. Today, we have the best Army in
    the world. We are the best equipped, trained, and led. Although
    we may get leaner, we will still be the best Army in the world
    in 5 years, in 10 years, and as long as this Nation needs an
    Army.
        Let me close by saying that as the Sergeant Major of the
    Army, the best part of my job is visiting our soldiers,
    families, and civilians around the world. Their
    professionalism, dedication, and sacrifice they display every
    day is the reason our Army is the envy of every other in the
    world. I leave our Army knowing that it is in great hands. Our
    future is assured because of the brave young men and women who
    still come forward today and will into the future saying, send
    me, I will defend the American people and our way of life.
        Thank you for what you do. I appreciate this opportunity,
    and I look forward to your questions.
        [The prepared statement of Sergeant Chandler follows:]
             Prepared Statement by SMA Raymond F. Chandler III, USA
                                  introduction
        Chairwoman Gillibrand, Ranking Member Graham, distinguished members
    of this subcommittee, thank you for the invitation to speak to you on
    behalf of the more than 2 million members of our Army team: soldiers,
    their family members, and our civilian employees. Representing the
    soldiers in the Army that I love has been a humbling experience and I
    appreciate the support this committee has given our Army team over the
    past 12-plus years and for recognizing and valuing the sacrifice and
    service of our remarkable soldiers. As I near my retirement, this will
    likely be my last opportunity to appear before you.
        I would also like to welcome the new committee members. I
    appreciate you taking on the tremendous responsibility and I look
    forward to working with you to support our soldiers. Your continuing
    support will enable us to improve the quality of life of soldiers
    across the force.
                                   background
        This past year has brought some significant changes to the Army,
    including the impacts of sequestration, the government shutdown, and
    the first and second order effects of a drawdown and budget reductions.
        After 12-plus years of persistent conflict, Secretary McHugh,
    General Odierno, and I are proud of all that our soldiers, family
    members, and civilians have accomplished. But our Army is not focused
    on our past success, but rather our future.
        The Army stands at a pivotal moment due to daunting fiscal
    challenges and strategic uncertainty. But even in the midst of these
    challenges our mission has not changed--to prevent conflict, shape the
    environment and, when necessary, fight and win our Nation's wars. As
    General Odierno recently stated, it is essential that our Total Army--
    the Active Army, Army National Guard, and U.S. Army Reserve--be ready
    to accomplish the range of military operations we are directed to
    perform. Our leaders and the American people rightly place their
    confidence in our professional competence and character, and they
    expect us to succeed. And, we will.
        As we transition, we are making changes to our institutions and
    processes to ensure that we are maximizing the resources available to
    the Army. So we will focus on these five strategic priorities:

        1.  Adaptive Army Leaders for a complex world;
        2.  A globally responsive and regionally engaged Army;
        3.  A ready and modern Army;
        4.  Soldiers committed to our Army profession; and
        5.  Maintain the premier All-Volunteer Army.

        These also form the basis for the objectives outlined in our 2014
    Army Strategic Planning Guidance.
        Through these efforts, our All-Volunteer Army will remain the most
    highly trained and professional land force in the world. It will have
    the capability and capacity to provide expeditionary, decisive land
    power to the Joint Force and ready to perform across the range of
    military operations in support of Combatant Commanders to defend the
    Nation and its interests at home and abroad, both today and against
    emerging threats.
        Although our Army is looking forward to new challenges, it is
    important to remember what we have done and continue to do. We are
    entering the 13th years of the longest war in our Nation's history.
    Nearly 40,000 soldiers are serving in Afghanistan and an additional
    120,000 are either forward stationed or deployed in nearly 150
    countries. More than 1.6 million soldiers have deployed during the past
    12 years and many have deployed multiple times, some as many as six or
    even ten times. More than 5,000 soldiers have given their lives on
    behalf of this Nation. This service and sacrifice cannot be forgotten
    as we move forward and focus on the challenges on our horizon.
                                    drawdown
        All of us in the Army are grateful for the work Congress did on the
    fiscal year 2014 authorization and appropriation bills, which give us
    the ability to build readiness over time. Our Army had been reduced to
    only two brigades rated at T-1 level for deployment. Sequestration
    limited funding to train, equip and, in some cases, care for our
    soldiers. During that period, our Army leaders at all levels knew we
    were accepting some level of risk, so they focused on squad and platoon
    level training to maintain some level of readiness. This year's budget
    allows us to increase the number of ready brigades.
        However, this fix is only short-term. Next fiscal year we again
    face sequestration-level funding. Just as last year, that will mean
    that our Army will lack flexibility and predictability, and our
    soldiers, their families, and our civilians will once again face the
    anxiety that comes with uncertainty. We will again face serious
    readiness challenges.
        To address readiness issues, our Army has accelerated the timeline
    to reduce our Active Force from 580,000 to 490,000 soldiers while
    reducing our budget--even while still engaged in war, unprecedented in
    our history. This reduction is being done in a controlled and
    responsible manner over a compressed timeframe to allow the Army to
    reduce personnel costs. Those savings can then be used to ensure the
    force is both ready and equipped to the highest levels possible.
    Achieving the proper balance between readiness, modernization, and end
    strength is critical to ensuring the Army is ready for any contingency.
        As we continue implementing this drawdown, we will make sure to
    continue providing programs that value the service and sacrifices
    soldiers and their families have made to the military. Unfortunately,
    natural attrition alone will not achieve the Army's reduced end
    strength requirements. However, we are committed to assisting soldiers
    and their families as they transition to civilian life, and we
    encourage continued service in the Army National Guard or Army Reserve.
        As our force reduces in size, our organizations will change. Some
    of our training posts will see changes in throughput or focus in some
    of their courses. We will continue to recruit America's best men and
    women, but those numbers will likely be smaller, and as we focus on new
    training goals and objectives, some training will expand.
        Similarly, we are meeting a directive to reduce the size of our
    headquarters staffs across our Army commands, including both civilian
    and military members of those teams. We will likely find that many
    contracts that have supported our Army over the past 12 years can be
    reduced or ended. Soldiers who have been engaged in actively defending
    our Nation during that time will return to a garrison environment and
    traditional support roles. Things like KP, police calls, post security
    and other duties have been part of my Army for as long as I have served
    and I firmly believe they help to develop leadership skills, a sense of
    good order and discipline, responsibility, safety, and pride in taking
    care of living and working environments.
                                quality of life
        The quality of life of our soldiers and their families is
    critically important as the Army goes through this period of
    transition. Most importantly, the Army must focus on ensuring that we
    recruit and retain the smartest, most fit, and most resilient of
    America's youth. It is essential to leverage those actions and
    incentives that sustain the highest quality All-Volunteer Force in the
    face of continuing fiscal pressures and ongoing assessments of benefits
    and entitlements.
        For example, the Army's Tuition Assistance (TA) program provides
    financial assistance for voluntary off-duty education programs in
    support of soldiers' professional and personal self-development goals.
    This program helps us to achieve the Army's goal of retaining quality
    soldiers, enhancing their career professional progression, increasing
    the combat readiness of the Army, and eventually assisting soldiers in
    their transition from the Army into successful civilian careers. The TA
    program supports the leader development imperatives of the Army Leader
    Development Strategy and supports Army Strategic Priorities.
        During our comprehensive assessment of TA, we evaluated a number of
    changes based on their ability to support the intent of the TA program
    and compared them to other available programs providing education
    benefits. The changes we ultimately implemented not only are consistent
    with the purpose of TA but also enhance sustained readiness of the Army
    and optimize scarce resources.
        As the Army draws down, another important quality of life issue is
    successfully reintegrating those soldiers and families separated after
    12 years of war. It is important that whatever support we provide has
    the greatest impact on sustaining readiness and resilience, so the
    timing of resource reductions should take into account this goal.
                                   transition
        As we continue to draw down the Army, we understand our duty to
    treat soldiers and families not retained with dignity and respect.
    Through our Army Career and Alumni Program (ACAP), we are fully
    committed to the VOW to Hire Heroes Act. In coordination with the
    Departments of Labor and Veterans Affairs, we are conducting assistance
    training and transition counseling for soldiers beginning no later than
    12 months from their transition date to enable soldiers to successfully
    transition into civilian society.
        ACAP provides transitioning soldiers with the tools and resources
    to help make informed career decisions, be competitive in the
    workforce, and continue to provide positive contributions to their
    community after completing their active duty service. The transition
    process is focused on the soldier and managed by commanders through
    performance metrics recorded in the automated tracking system of
    record, ACAP XXI.
        To assist soldiers in making the most of opportunities as they
    appear during that period of transition, the Army is exploring policy
    changes that provide opportunities for Active component soldiers to
    separate if they have secured employment, have been accepted into
    higher education, or want to transition to a position in the Army
    National Guard or Army Reserve.
        Collectively, these programs and other recent changes have helped
    the Army reduce the percentage of unemployed soldiers who are veterans
    of Operation Iraqi Freedom or Operation Enduring Freedom. This lower
    rate also reduces the Army's cost for annual Unemployment Compensation
    for Ex-servicemembers (UCX), making those monies available to support
    personnel, readiness, and modernization needs. Last year, the Army
    spent more than $430 million on UCX, and we want to see that amount
    substantially decreased.
        Another recent Army initiative to support veterans is Soldier For
    Life. It is designed to enable soldiers, veterans, and families to
    leave military service ``career ready'' and connect to an established
    network to find employment, education, and health resources. We know
    the value and outstanding capabilities these soldiers can bring to any
    organization, and we encourage them to continue to serve our Nation by
    instilling Army values, the Warrior ethos, and leadership in businesses
    and communities across the Nation.
        The Soldier For Life program is a holistic approach to the military
    life cycle career of a soldier. The U.S. Army takes care of teammates
    by ensuring soldiers start strong, serve strong, and reintegrate strong
    so they remain Army Strong even after leaving the Army. The U.S. Army's
    strategic imperative of sustaining the Premier All-Volunteer Army is
    directly affected by how well our veterans reintegrate back into their
    communities.
        Soldier for Life works to connect employers to transitioning
    soldiers from all Army components: Active Duty, National Guard, and
    Reserve. We help employers navigate the Army's reintegration network by
    developing lasting relationships and connecting them to transitioning
    Army talent.
        I've been personally involved with this program over the past year
    and know its value. In March, I spoke to an audience of national
    healthcare providers at the University of Michigan at Ann Arbor to
    discuss best practices and gaps in providing behavioral healthcare for
    Guard and Reserve soldiers and their families. The following month, I
    attended the National Beer Wholesalers Association's legislative
    conference in Washington, DC. During my visit, they pledged as an
    organization to hire transitioning soldiers and their spouses in their
    businesses across the country. Last week, our Soldier for Life office
    in Los Angeles laid the groundwork for me to meet with dedicated
    individuals from the University of Southern California and the Office
    of the Mayor of Los Angeles who are working two separate but
    collaborative efforts to help serve the largest population of veterans
    in the Nation find employment, homes, and healthcare. This kind of
    support occurs across the country--and I want to thank everyone for
    reaching out to our Army team.
                              ready and resilient
        As I stated last year, it is critically important for an Army with
    less manpower and a smaller budget to maintain peak readiness. The last
    12-plus years have challenged our Army. The stress and strain of
    multiple deployments can manifest in high risk behavior as soldiers try
    to cope with issues and problems without the proper help.
        Our efforts this past year to address challenges such as post
    traumatic stress, suicide, sexual assault and harassment, hazing, and
    reckless behavior are making positive changes in organizational climate
    and leadership abilities, while at the same time, maintaining good
    order and discipline.
        Even after an extraordinary commitment by the Army of time and
    money to address suicides, it has been a particularly difficult
    problem. However, we may be starting to see some signs that our
    investments are beginning to pay off. Our overall number of suicides
    across the force has decreased as we continue to work in concert with
    Departments of Defense and Veterans Affairs and cultivate a climate
    that supports those who responsibly seek help and those who act,
    intervene and are motivated to stand against behaviors that are
    contrary to our Army Values. Although we do not have data yet to fully
    explain this improvement, we are analyzing our efforts to discover and
    reinforce future efforts.
        Let me now turn to sexual assault, an issue I known that is very
    important to all of you here. Above all else, the Army is an
    organization built on and bound by values. Sexual harassment and
    assault in all its forms goes against every one of those values. Simply
    put, sexual assault is a crime that will not be tolerated. The
    overwhelming majority of soldiers and civilians serve honorably and
    capably, but we must recognize that the ill-disciplined few jeopardize
    the safety of all our people as well as the trust and confidence the
    American people have in their Army. For that reason, we have made the
    prevention of sexual offenses a top priority.
        The Army's SHARP Program seeks to reduce and ultimately eliminate
    this crime from our ranks, and to compassionately and rapidly care for
    the victims, and we have made excellent progress in implementing it
    throughout the Army over the past year. Through the combined efforts of
    our military and civilian leaders at all levels, we've implemented
    numerous program and policy changes to address this insider threat. I
    believe the initiatives are leading to enhanced reporting,
    investigating, and prosecution of sexual assault offenses, and
    increasing the accountability of leaders. The changes includes revised
    policies that focus on constant assessments of command climates,
    changes to leader evaluations to ensure their commitment to SHARP
    goals, the addition of special legal counsel to support victims, and
    the establishment of more stringent screening criteria and background
    checks for those serving in positions of trust, including Sexual
    Assault Response Counselors and Victim Advocates.
        Let me add one final, but important, note. Sexual assault is
    antithetical to competent command, and it is important that Army
    commanders retain their authority over the disposition of sexual
    assault cases. Removal of that authority would make it harder to
    respond to the needs of soldiers within the command, especially the
    victims. Many of the Army's most difficult problems were solved by
    making commanders more accountable, not less. Therefore the Army
    opposes efforts to remove commanders from the disposition process.
        The Army's goal in all of these efforts is to facilitate a culture
    change that will result in a positive command climate where the
    behaviors and attitudes that lead to sexual offenses are rare and
    victims feel free to report without fear of reprisal. Most important in
    development of trust is our commitment to soldiers and the
    accountability of leaders at all levels.
                           wounded, injured, and ill
        This past year also saw significant progress in our care for
    wounded, ill, or injured soldiers, and organizational changes that
    underscore that positive trend. Overall, the Warrior Transition Units
    (WTU)/Community Based Warrior Transition Units (CBWTU) population
    continues to decline as there are fewer soldiers entering these units
    and more soldiers departing, fewer deployments, fewer MEDEVACs, and
    fewer Reserve Component mobilizations. As of February 3, 2014, the
    population of wounded, ill, or injured soldiers assigned or attached to
    WTUs and CBWTUs was 6,988, the lowest level since the fall of 2007.
        Force structure changes within the Warrior Care and Transition
    Program (WCTP) reflect a decreasing WTU population while retaining
    scalability in order to meet the Army's future needs. To be sure, WTU
    force structure changes are not related to budget cuts, sequestration,
    or furlough. These changes will improve the care and transition of
    soldiers through standardization, increased span of control, better
    access to resources on installations, and reduction of unnecessary
    delays in care.
        We also continue to improve the process with the Integrated
    Disability Evaluation System (IDES). In fiscal year 2013 the Army made
    tremendous progress across the IDES by significantly reducing backlogs
    at the Medical Evaluation Boards (MEBs).
        Last year the Army made a concerted effort to eliminate the backlog
    of IDES cases at every stage under its control, thereby processing
    approximately 80 percent more cases than we had done in any previous
    year. Since the beginning of fiscal year 2013, the Army processed over
    34,000 cases. During the same period, more than 29,000 soldiers either
    separated from the military or were found fit and returned to duty.
        We are now meeting timeliness goals for all stages we control. The
    Army is continuing to collaborate with our VA partners to speed up IDES
    processing while ensuring soldiers receive the benefits they have
    earned and deserve.
                                    closing
        Throughout this past year, while continuing the fight, drawing down
    our force, and working within fiscal constraints, our soldiers have
    continued to demonstrate their professionalism in several key ways. The
    expansion of entitlements and benefits to same-sex spouses has gone
    almost unnoticed by most soldiers. This professionalism is also
    highlighted in our ongoing campaign to ensure every soldier understands
    how their competence, character and commitment underpin the American
    public's trust and respect for the Army.
        In closing, I want to recognize the amazing work being done every
    day by our Army Team. As the Sergeant Major of the Army, one of the
    best parts of my job is visiting our soldiers, families, and civilians
    across the world. The professionalism, dedication, and sacrifice they
    display every day is the reason our Army is the envy of every other in
    the world. Today, our soldiers are the best-trained, best-manned, best-
    equipped, and best-led force in our history.
        Tomorrow we will be smaller and we may be leaner, but we will
    continue to be the best-trained, best-manned, best-equipped, and best-
    led force in our history.
        Ten years from now, we will continue to be best, and I feel
    confident in making that statement because I know we will continue to
    have your support. Thank you for what you do.
        I appreciate this opportunity to speak before you and tell our
    story. I welcome your questions at this time. Thank you and Army
    Strong.

        Senator Gillibrand. Thank you, Sergeant Major.
        Before we hear from Master Chief Petty Officer of the Navy
    Michael Stevens, we are going to go vote. It should probably
    take me no more than 10 minutes to go there and come back. We
    will resume in 10 minutes. Thank you. [Recess.]
        Thank you, gentlemen.
        Our next speaker, I am pleased to present Master Chief
    Petty Officer of the Navy Michael Stevens.

            STATEMENT OF MCPON MICHAEL D. STEVENS, U.S. NAVY

        Chief Petty Officer Stevens. Good morning, Chairwoman
    Gillibrand, Ranking Member Graham, and distinguished members of
    this subcommittee. Thank you for the opportunity to share with
    you my thoughts on the tone of our Navy's enlisted force. The
    support that each of you have provided to our men and women in
    uniform has had an incredible impact on their quality of life
    and quality of work which, in turn, produces a healthy quality
    of service. Each of these elements are vital to our Navy's
    force and set the tone for effective warfighting and sustained
    operational readiness.
        Today as we sit here, 108 of our 288 deployable ships are
    underway. More than 323,000 Active Duty sailors and 61,000
    Reserves are projecting U.S. naval sea power and forward
    presence worldwide. Over the past 18 months, I visited with
    thousands of these sailors who continue to stand the watch for
    the United States of America every day. I have also observed
    firsthand the quality of life our sailors and their families
    enjoy. I have also witnessed the many challenges they face.
        Areas that concern me with respect to the tone of the force
    include, but are not limited to, alcohol abuse, sexual assault,
    suicide, domestic violence, and potential impacts with regard
    to pay and benefits.
        I understand the reasoning and the necessity in balancing
    our authorized military spending, and I agree it is vitally
    important that we balance quality of work with quality of life
    so that we can provide our sailors and families with the best
    quality of service. After all, our slice of the pie is only so
    big.
        The Navy has been asked to slow growth, to look at those
    things which could be scaled back with regard to pay and
    benefits, and this we have done. In testimony earlier this year
    before the House Appropriations Subcommittee, I mentioned one
    of the greatest weapons systems we can provide the U.S. Navy is
    unit morale. I made that comment with emphasis because I am
    concerned with the potential intensity in which slowing of
    growth may occur. Although I understand there may always be a
    little fat to trim, as I look into the future, I believe we are
    dangerously close to cutting into muscle, and we simply cannot
    afford to cut into bone. We cannot afford to cut into the
    weapon system I just mentioned.
        I am also concerned that this year's budget may become the
    new standard. My sailors ask me ``will this become the new
    norm?'' We must provide the same level of care and commitment
    that we expect our sailors to offer their country. Our military
    family and support programs should not--I repeat should not--
    become a casualty of budgetary uncertainty. The CNO and I
    understand nothing comes second to combat readiness, and we are
    committed to preserving our people and our free programs to the
    fullest extent possible. Under the current fiscal constraints,
    budget uncertainty will likely continue to place emotional and
    economic strain on our sailors and their families.
        As we navigate through these challenges, I have no doubt
    that you will do your very best to ensure our sailors and their
    families have what is necessary to carry out our Navy's
    mission. The current fiscal situation, I will be perfectly
    clear with you, is not a topic I intend to sell our sailors. I
    will, however, find a way to explain this to them because I am
    committed to giving them nothing less than the truth. Together,
    we will manage, work through, and solve these difficult
    challenges.
        On behalf of our sailors and their families serving around
    the world, I sincerely thank you for your continued support,
    and I look forward to taking your questions.
        [The prepared statement of Chief Petty Officer Stevens
    follows:]
              Prepared Statement by MCPON Michael D. Stevens, USN
        Chairwoman Gillibrand, Ranking Member Graham, and distinguished
    members of this subcommittee, thank you for the opportunity to address
    you today. As the Master Chief Petty Officer of the Navy, I am honored
    to represent more than 380,000 Active and Reserve sailors in the U.S.
    Navy. During the past 18 months, I have visited tens of thousands of
    sailors and their families in the United States and overseas. Today, I
    am prepared to deliver you a summary of the quality of life that
    sustains our sailors and their families.
                            overall quality of life
        In today's Navy, quality of life is high overall; however, today's
    sailor is concerned about the many quality of life issues that carry a
    burden of uncertainty, especially in the current fiscal environment.
    Chief among these concerns are:

             Potential Pay and Benefit changes;
             Family Programs and Support Services; and
             Predictability with Respect to Deployments.

        As I navigate through the various commands and units of our Force,
    I am always inspired by their work ethic and dedication, and I am
    honored to serve with and represent these amazing men and women--your
    sailors. I have no doubt that these issues of concern will be addressed
    with the utmost regard for their well-being.
                                   your navy
        The Navy understands that a budgetary reformation is fast-
    approaching, and we are working hard to implement policies that will
    meet end strength controls and planned budget execution. Such budgetary
    decisions will continue to be carefully monitored for impacts to fit,
    fill, and tone, the health of the Force. Navy Active and Reserve
    components continue efforts to stabilize, balance, and distribute the
    Force to ensure that sailors are assignable, deployable, and
    distributable in support of the Chief of Naval Operations' (CNO)
    tenets: Warfighting First, Operate Forward, and Be Ready.
        The overall health of the Force is ``good,'' and morale is
    reasonably high; however, we continue to closely monitor the tone of
    the Force and personnel readiness. Areas by which we measure these
    controls include:

             Physical, mental, family and financial stress;
             Morale, alcohol and substance abuse;
             Misconduct; and
             Recruiting, Retention, Operations Tempo, Personnel
            Tempo, safety, training, and manning (Personnel Readiness).

        Additionally, and in order to secure a healthy balance in quality
    of life and work, the Navy is committed to a two part obligation that
    we call ``quality of service'':

        1.  To ensure sailors receive the finest training and equipment
    possible so they can deploy ready to accomplish their mission and
    return home safely, and
        2.  To ensure they and their families are properly compensated and
    cared for.

                                   recruiting
        To ensure the Navy is prepared to meet future operational
    requirements, the Force must recruit sailors in the right combination
    of ratings (jobs). For fiscal year 2014, through January 2014, the Navy
    met numerical goals with a total of 10,443 accessions. Because quality
    of life and service are fundamental features to recruiting new sailors,
    we hold an obligation to provide sailors with the best equipment and
    training possible. From the time a sailor steps into basic training, we
    begin to develop and mold them into a leader who is prepared to serve
    and sustain the Force. Recruiting efforts are supplemented by an
    element of job security that extends into a career-long training
    continuum that will enhance a sailor's personal and professional
    development. As we work with Congress, we hope to continue to provide
    the necessary tools to recruit the right sailors, with the right
    skills, in order to meet current and future mission requirements.
                                   retention
        Officer and enlisted inventory gaps remain in several critical
    specialties where operational tempo is high or pay disparities exist
    between the military and the private sector. Targeted special pays have
    a strong impact on reenlistments. Selective Reenlistment Bonuses
    (SRBs), in particular, are essential to retaining personnel in critical
    skills, such as the Nuclear Field, Information Dominance, and Special
    Warfare ratings. We continue to use SRBs as a quality of life
    initiative to address these shortages, and we appreciate your
    continuing support for these important incentives.
                                  end strength
        As of January 2014, our total Force is 323,561 Active Duty and
    61,499 Reserve. This is on track with Navy's fiscal year 2015 budget
    submission of 323,600 Active and 57,300 Reserve. We are focused on
    maintaining the right number of sailors to adequately man the fleet and
    to ensure sailors are in the right positions to accomplish our
    operational commitments. We strive to provide the fleet with the right
    fit and fill--assigning sailors with the right skills and experience
    level to perform and fill the most critical sea duty jobs.
        As the Navy has had to adapt to an ever-changing fiscal
    environment, I have watched our sailors continue to complete their
    missions with a dedicated, goal-oriented approach. I have seen the
    evidence of their hard work and been a witness to their determination.
    They are indeed, the driving Force of our Navy.
                              women in submarines
        Retention of women in the Navy has been historically challenging.
    Averages for female submarine officer retention will not be well known
    until fiscal year 2019 when the first several year groups of female
    submarine officers are making decisions on whether to serve as a
    Department Head.
        Naval Sea Systems Command recently conducted a habitability study
    that examined design modifications for: (1) enlisted female sailors/
    officer integration on all submarine platforms; and (2) officer female
    integration on Virginia-; and Los Angeles-class SSNs. The study
    revealed that ship design modifications will be required for enlisted
    female sailors' integration on all classes of submarines. Study
    assessments also indicate that there are no obstacles for female
    officer integration on Virginia-class SSNs supporting Navy's goal to
    provide equal career opportunities for women to the greatest extent
    possible.
        The Navy intends to integrate female officers aboard two Virginia-
    class submarines starting in fiscal year 2015; and, as publically
    announced in January 2013, the Navy intends to assign enlisted women to
    Virginia-class submarines. Although enlisted women have not yet been
    assigned in submarines, a task force was established last year to
    coordinate and synchronize these efforts.
                                    housing
        Family housing and single sailor housing is a crucial element in
    supporting Navy readiness and quality of life. By providing sailors and
    their families the opportunity for suitable, affordable, and safe
    environments in the community, whether privatized or Navy-owned, we are
    ensuring a critical component to the overall well-being of sailors and
    their families. Thanks to the support of this committee and Members of
    Congress, we have improved, and continue to improve the housing
    available to our sailors and their families.
        In fiscal year 2013, the Navy renovated a total of 28 barracks at
    11 bases, and in fiscal year 2014 we will prioritize renovations to
    ensure units meet health and safety standards. However, to resource
    critical warfighting requirements, Navy has taken risk in our shore
    infrastructure and we have found ourselves with a significant number of
    unaccompanied housing buildings in ``inadequate condition.'' It is
    critically important that we fully fund efforts in this area.
                            family support programs
        The Navy has extended strong resources to our Navy families,
    providing our sailors with the reassurance that their families are
    being supported. This allows our sailors to effectively focus on the
    mission at hand with peace of mind. Fleet and Family Support Centers
    offer a number of personnel and family support programs to reduce life
    stressors throughout the training and deployment cycles. Family Support
    Programs provide support to military members and their families whether
    the member deploys as part of a unit or individually. In addition,
    military members and their families may contact the Department of
    Defense sponsored Military OneSource program for confidential
    assistance and comprehensive information or materials on a variety of
    military life topics. Military OneSource, available worldwide 24/7/365
    by telephone or online for both Active Duty and Reserve members,
    provided more than 885,000 services to military and family members in
    fiscal year 2013.
        Navy Ombudsmen and Family Readiness Groups (FRG) are other
    essential components in our efforts to foster effective relationships
    between family members and commands. Ombudsmen function as an
    intermediary between commands and families to better prepare both
    sailors and their families for the challenges associated with training
    and deployment. Ombudsmen also serve as liaisons between commands and
    families on a wide range of issues including pay and compensation,
    deployment schedules, child care, housing, et cetera. They keep the
    command informed regarding the overall health, morale, and welfare of
    command families.
        For our Reserve sailors, the Yellow Ribbon Reintegration Program
    (YRRP) and the Psychological Health Outreach Program (PHOP) have been
    tremendously successful in caring for servicemembers and their families
    before, during, and following deployment. The YRRP provides Reserve
    sailors and their families with information, services, referral, and
    proactive outreach opportunities via informational events and
    activities. PHOP services include psycho-educational briefings,
    behavioral health screenings, and phone/email follow-up to ensure
    sailors have received the information, resources, and services they
    need to enhance their state of wellness and readiness.
        It is imperative that in today's fiscal environment, we protect
    these programs and services that promote a thriving and healthy family
    unit, and, in essence, the viability of our Force.
                         navy child and youth programs
        Navy Child and Youth Programs (CYP) deliver services that help meet
    mission requirements and reinforce strong military families through
    activities that promote cognitive, social, emotional, and physical
    development of children from ages infant through twelfth grade. Navy
    CYP also provides School Liaison Officers to support the transition
    needs of school-aged children and families by facilitating
    communication with local school authorities on the impacts of a
    military lifestyle on children. The Navy remains dedicated to ensuring
    our sailors and their families are provided with adequate choices based
    on their respective needs and/or requests.
                          sailor and family readiness
        Deployments are a necessary part of Navy life, and as we have
    deployed our Forces throughout times of peace and conflict, it is
    imperative that we never underestimate the incredible strain that
    deployments impose on our sailors and their families. The stresses
    associated with being a part of a Navy family have significant impact
    on the overall readiness of the unit, the readiness of the individual
    sailor, and the readiness of their families.
        One stressor that I briefly addressed above is the unpredictability
    of deployments. It is understood that real world events coupled with
    the strain of maintaining material readiness are factors that
    contribute to uncertain deployment schedules.
        Once a deployment assignment is delivered to the command, along
    with a predicted timeline, personnel are made responsible for properly
    preparing themselves and their families. They immediately begin to make
    important life decisions via their family care plans, automobile
    arrangements, household goods placement, financial accounts, and many
    other facets of their personal lives. When a change in length of a
    deployment or a delay in deployment is announced, it results in a
    significant strain on the morale of the Force which, in turn,
    negatively impacts quality of work. I believe it is paramount that the
    Navy is provided with adequate capacity, or the proper manning, to
    support mission demands and ensure deployment predictability to the
    largest extent possible.
        Sailors choose military service for many different reasons: loyalty
    to country, family and service tradition, and dedication are all
    undoubtedly significant factors. Sailors also recognize that with this
    commitment, comes great opportunity. I appreciate Congress' historical
    support of pay and benefit increases and quality of life initiatives
    that have sustained our Navy.
        In past years, Congress has provided the Navy with competitive pay,
    allowances, housing, support programs, and educational opportunities
    that support sailor and family readiness; this support helps to explain
    why many sailors and their families decide to ``Stay Navy.'' It is my
    hope that we can continue to work together to ensure that investments
    in quality of life and in quality of work combine to produce a quality
    of service that helps the Navy continue to attract and retain high
    quality sailors.
                               continuum of care
        Health care is extremely important to mission readiness and is
    incredibly appealing for the recruiting and retention of our sailors
    and families. I am often made aware of our sailors' families' future
    concerns in regards to health care. As we improve the process by which
    we provide for the health needs of our sailors and families, I believe
    we should also direct attention toward severely injured sailors. We
    must apply the same level of attention to those who return from
    deployments whose medical needs may not be immediately apparent.
        We have continued to encourage leaders to be vigilant for
    servicemembers who may be suffering from Post-Traumatic Stress Disorder
    or Traumatic Brain Injury, and to encourage those afflicted with these
    conditions to seek help. We must also be able to provide care and
    support to address the physical and psychological toll that multiple
    deployments have on our sailors and their families. The Navy continues
    to work hard to dispel the stigma often associated with mental
    healthcare.
        Recently, Navy has embedded mental health providers in primary care
    settings and operational units in order to identify and manage issues
    before they manifest as psychological problems. Navy Medicine continues
    to provide timely and comprehensive physical and mental health care for
    sailors, marines, and their families throughout the training and
    deployment cycle.
                         21st century sailor and marine
        Navy's 21st Century Sailor Office was established in June 2013 and
    is responsible for integrating Navy's efforts in equal opportunity,
    sailor personal and family readiness, physical readiness, alcohol and
    substance abuse prevention, suicide prevention, sexual harassment
    prevention, sexual assault prevention and response (SAPR), hazing
    prevention, and transition assistance. The 21st Century Sailor Office
    captures all these programs under one umbrella and provides top level
    attention and support to ensure critical resilience programs continue
    to grow and thrive. We provide resources to our sailors and families to
    ensure they can take the challenges of a military lifestyle in stride.
                     sexual assault prevention and response
        Sexual assault is a crime and is counter to our core values. It
    directly impacts operational readiness and unit cohesion and I have
    aggressively challenged enlisted leadership to impose a daily influence
    on their sailors that is consistent with ensuring every sailor is
    treated with dignity and respect. By identifying the disrupting factors
    that contribute to sexual assault, such as alcohol abuse and poor
    command climate, we may better focus on ways in which the Navy should
    implement improvements to our leadership training. Leadership
    development programs will better prepare leaders for efforts to keep
    their sailors safe and further shape a proper command climate.
        Because many victims and offenders are junior sailors, our training
    is targeted to those Sailors, and we actively support peer groups such
    as Coalition of Sailors Against Destructive Decisions (CSADD) who
    train, mentor and sponsor awareness-raising events for fellow junior
    Sailors. We are also working to create a culturally-aware, educated,
    Total Force environment intolerant of sexual assault, supported by a
    well-defined prevention, reporting, investigation, military justice,
    and victim advocacy program. The Navy is committed to reducing sexual
    assault with the goal of eliminating it from within our ranks.
        In compliance with Department of Defense (DOD)initiatives and the
    guidance from the DOD and Department of the Navy Sexual Assault
    Prevention Response Offices (SAPRO), the Navy follows and supports the
    five lines of effort for eliminating sexual assault:

        1.  Prevention;
        2.  Investigation;
        3.  Accountability;
        4.  Advocacy and Victim Assistance; and
        5.  Program Assessment.

        Tailored SAPR training has been given to all Officers and Chief
    Petty Officers focusing on leadership's role in setting the correct
    tone and climate to prevent and eliminate sexual assaults. All E-6 and
    below sailors receive training that focuses on sailor responsibility
    for positive changes in their command and in their Navy, with emphasis
    on bystander intervention and responsible decisionmaking.
        We will continue to use a metrics-based approach to evaluate our
    progress, and improve our prevention efforts.
                         safe harbor & wounded warriors
        We provide a lifetime of individually tailored assistance designed
    to optimize recovery, rehabilitation, and reintegration of sailors and
    coastguardsmen. Navy Safe Harbor is the Navy's sole organization for
    coordinating the non-medical care of all seriously wounded, ill, or
    injured sailors, coastguardsmen, and their families.
        Non-medical care management support includes, but is not limited
    to, support services for TBI/PTSD, pay/personnel issues, invitational
    travel orders, lodging/housing adaptation, child/youth programs,
    transportation needs, legal/guardianship issues, education/training
    benefits, commissary/exchange access, respite care and transition
    assistance. Safe Harbor enrollment includes sailors with combat-related
    wounds or injuries, those from shipboard accidents, and off duty
    accidents, and serious medical and psychological conditions, such as
    cancer and severe PTSD.
        100 percent of Wounded Warrior enrollees are briefed by the Safe
    Harbor program on child care as part of their portfolio of support
    services available to them. If a Wounded Warrior requires child care,
    installation child care programs adapt to accommodate the individual
    family's needs. All Wounded Warriors have priority access into all Navy
    Child and Youth Programs. We continue to strive to improve the
    continuum of care and explore all avenues that may more effectively
    meet the needs of our severely injured sailors and their families.
                               suicide prevention
        Suicide prevention in the Navy is an all hands evolution, all of
    the time. The Navy Suicide Prevention Program manages policy and
    programs to help sailors live life fully, promote psychological and
    emotional wellness, and reduce barriers that discourage seeking help. A
    comprehensive four-prong approach includes training, intervention,
    response, and reporting to ensure we're providing all Navy personnel
    the support network and skills needed to thrive, not just survive.
        The Operational Stress Control (OSC) program is the foundation of
    the training effort, supporting the fleet with resources to navigate
    the stressors and challenges commonly associated with Navy life to help
    sailors build resilience and maintain readiness--a major tenet of the
    Chief of Naval Operations' Sailing Directions.
        We encourage proactive measures that sailors, leaders, commands and
    families can take to mitigate stressors before they become crises,
    while identifying those who may be reacting to stress and need
    assistance. While our efforts focus on actions ``left of the event,''
    post-vention is a critical component of our program, providing
    psychological first-aid support to commands that have experienced a
    suicide tragedy.
        The NavyTHRIVE communications campaign was launched last year,
    focusing on providing sailors, leaders, and families with the tools and
    knowledge to thrive; the next step in the resilience ladder. ``Thrive
    in your Community'', the 2013 Suicide Prevention Month theme, added a
    new dimension to NavyTHRIVE by emphasizing the importance of cohesion
    and togetherness when dealing with adversity. The Thrive During the
    Holidays campaign addressed the various components of a physically and
    psychologically healthy lifestyle to reduce holiday stress.
        Beginning January 1, 2014, Navy commands are now required to
    complete Operational Stress Control skills training within 6 months of
    deployment. This provides units tools to build sailor resilience and
    command readiness.
       transition assistance program/transition goals, plans, and success
        Transition Goals, Plans, and Success (GPS) replaced the 20-year-old
    Transition Assistance Program (TAP). The development and implementation
    of this initiative to extend the continuum of care to retirement, and
    well beyond, was a collective effort involving all Military Services.
    Created by the Office of the Secretary of Defense, with full
    participation by the Department of Veteran's Affairs, Department of
    Labor, and the Small Business Administration, Transition GPS increases
    sailors' abilities to overcome challenges they may face in pursuit of
    their chosen civilian career path. Transition GPS is a reinvestment in
    our citizen-sailors, and by providing ready, skilled, and service-
    oriented workers, we become a stronger Nation.
        The Navy Transition Assistance Program is currently executing a
    strategic shift that vastly increases the resources, training, and
    professional assistance to those personnel who are transitioning out of
    the service. This program is focused on a common set of life skills and
    then tailored to an individual's plan for a civilian job, higher
    education, or entrepreneurship. It is important, as we assist our
    personnel in a life transition, that we ensure they are receiving the
    information and opportunities that better assist them as they shift
    into civilian life.
                                   conclusion
        Today's sailor is perceptive, intelligent, and devoted to our
    country. I am confident that these outstanding men and women will
    continue to ensure the strength, power and worldwide presence of our
    Force. As a result, your Navy will continue to play a pivotal role in
    worldwide security. Sailors and their families endure the challenges of
    multiple deployments and household moves all over the world. They miss
    anniversaries, births of children, funerals, and countless holidays,
    all while balancing the struggles of operational demands and putting
    life and limb at risk in service to the Nation.
        It is my hope that the decisions of Congress will continue to
    ensure that our sailors' pay and benefits remain competitive to sustain
    the All-Volunteer Force, today and into the future. Such efforts, once
    executed, will enable us to continue to provide a quality of service
    commensurate to the sacrifices our sailors and families make daily.
        On behalf of the men and women of the U.S. Navy and the families
    who so faithfully support them, I sincerely thank you.

        Senator Gillibrand. Thank you.
        Chief Master Sergeant of the Air Force James A. Cody.

            STATEMENT OF CMSAF JAMES A. CODY, U.S. AIR FORCE

        Sergeant Major Cody. Chairwoman Gillibrand, Ranking Member
    Graham, although I know he had to step out, and certainly
    distinguished members of the subcommittee, I thank you for this
    opportunity to speak with you today. It is my absolute honor to
    be here with my fellow Service senior enlisted advisors as we
    represent the fine men and women who serve our great Nation. I
    sincerely appreciate the opportunity to share with you the
    concerns of not just the enlisted force but the 690,000 total
    force airmen and their families serving in the Active Duty, the
    Air National Guard, the Air Force Reserve, and our civilian
    workforce.
        America's airmen continue to generate the greatest Air
    Force the world has ever known. They are innovative, dedicated,
    and passionate men and women who understand freedom does not
    come without a cost. It must be fought for and won.
        Throughout the last 20-plus years of sustained operations,
    they have continued to dominate in the multidimensional
    battlefield of air, space, and cyber space. They have never
    wavered from their commitment to serve our Nation, and they
    have continuously demonstrated our core values of integrity
    first, service before self, and excellence in all we do.
        Even as they confront one challenge after another, this
    past year our Air Force has faced challenges on multiple
    fronts. We pushed through a period of sequestration, which
    forced us to stand down flying squadrons, furlough civilians,
    limit morale, welfare, and recreation services, and reduce and
    in some cases eliminate important education and training
    opportunities. We have endured a government shutdown and
    significant uncertainty in turn with respect to mission
    capability, compensation, and the meaning of service in the
    world's greatest Air Force. There is no question the past year
    has been extremely stressful on all members of our Air Force.
        This year brings continued stress and continued uncertainty
    as we move toward a new normal operational tempo and fiscal
    reality. We are currently taking action to significantly reduce
    the size of the Air Force by more than 16,000 airmen who have
    proudly dedicated their lives in service of our great Nation.
    Our airmen continue to move forward without answers to many
    questions on future compensation and benefits. While these
    actions and compensation reforms are absolutely necessary to
    ensure critical modernization and to restore force readiness,
    the combined impact brings continued uncertainty and stress on
    our airmen.
        Transparency and communication amongst our airmen and
    families will be critical as we move forward. We cannot forget
    that our Air Force is powered by people, airmen who clearly
    give us the advantage.
        Throughout the past year, I have traveled to multiple bases
    to visit tens of thousands of airmen and their families, and I
    can tell you candidly the challenges and continued uncertainty
    are not lost on the force. However, regardless of the
    uncertainty, you will be proud to know the first concern of our
    airmen is mission accomplishment. They are truly doing amazing
    work around the world every day.
        In 2013 alone, U.S. airmen flew over 27,000 intelligence,
    surveillance, and reconnaissance missions, removing 1,500 enemy
    combatants from the fight. They flew more than 27,000 air
    support air sorties, launched 8 national security space
    missions, dropped 11 million pounds of combat-enabling
    sustainment to coalition forces on the ground in Afghanistan,
    and airlifted 5,133 wounded soldiers, sailors, airmen, marines,
    and injured civilians around the globe. Additionally, they
    maintained a continued presence of nearly 23,000 airmen in the
    U.S. Central Command region and supported combatant commanders
    in all corners of the globe with more than 217,000 airmen.
        Tragically, the commitment to preserve freedom comes at a
    cost. In 2013, we lost 176 young men and women who proudly
    answered the call to serve. Today, we have more than 3,000
    wounded warrior airmen enrolled in our recovery care program,
    240 of those airmen still serving on Active Duty. Our airmen
    have faced and overcome challenges at every turn and continue
    to serve honorably and proudly in defense of our Nation. They
    count on your leadership to ensure they can continue to win the
    fight for America.
        Our Air Force families are also a critical component of our
    success. My wife, Athena, who joins me today has visited with
    thousands of these families over the last year, and I would
    tell you she has witnessed firsthand their passion and
    commitment to support their member who serves. The commitment
    to our Nation is not lost on any of them, but we cannot forget
    who generates us every day. They serve alongside each and every
    one of us. They see loved ones deployed to war zones and
    foreign countries. Their faith and support is critical to our
    airmen and enable the force to focus and maintain a dedicated
    mission accomplishment. Our airmen and families are our most
    important resource.
        We must remain committed to fostering a culture of dignity
    and respect and to ensuring an environment where all airmen
    have the opportunity to excel. In order for airmen to continue
    to serve as leaders and warriors for America, we must also
    remain focused on recruiting, retaining, training, developing,
    and supporting a world-class All-Volunteer Force.
        I thank you for your continued support, and I look forward
    to your questions.
        [The prepared statement of Sergeant Cody follows:]
                Prepared Statement by CMSAF James A. Cody, USAF
                                  introduction
        Chairwoman Gillibrand, Ranking Member Graham, members of the
    subcommittee, thank you for your continued support and commitment to
    the men and women who serve in our military. It is my absolute honor to
    join my fellow service senior enlisted advisors as we represent those
    men and women who have raised their right hand in dedication to their
    nation.
        America's airmen continue to generate the greatest Air Force the
    world has ever known. They are innovative, dedicated, and passionate
    men and women who understand freedom does not come without a cost; it
    must be fought for, and won. Throughout the last 20 plus years of
    sustained operations, they have continued to dominate in a multi-
    dimensional battlefield of air, space and cyberspace. They have never
    wavered from their commitment to serve our Nation, and they have
    continuously demonstrated our core values of Integrity First, Service
    Before Self and Excellence in All We Do. In order for airmen to
    continue to serve as leaders and warriors for America, the Air Force
    must remain focused on recruiting, retaining, training, developing, and
    supporting a world-class, All-Volunteer Force.
                                force management
        The Air Force faces a significant challenge over the next several
    years as we move toward a new normal of operational tempo and fiscal
    constraints. We must significantly reduce the Total Force end strength
    from 503,400 to 483,000 proud airmen to meet DOD strategic guidance for
    a leaner force. Our Active Duty military end strength will drop 16,700,
    from 327,600 to 308,800. Our Air Force Reserve military end strength
    will decrease by 3,300 to 66,500, and Air National Guard military end
    strength will decrease by 400 to 103,600. To reach these numbers, we
    are instituting multiple voluntary and involuntary programs that have
    been structured in a logical, deliberate and responsible manner, with
    voluntary programs available first. These programs are not quick fixes,
    but rather a tailored effort comprised of many initiatives aimed at
    managing the long-term health of the force along a continuum of
    service. They are necessary to facilitate critical modernization and
    restore force readiness. The capabilities and credibility of our Air
    Force to meet our core missions are essential to national defense, and
    these efforts support that end.
        We recognize how difficult these actions are on our airmen and the
    importance of transparency during this process. Air Force senior
    leaders announced the programs as early as possible to ensure airmen
    and their families had time to plan for their future. All airmen have
    been individually notified of their vulnerability for voluntary and
    involuntary force management programs. We also understand the
    importance of communication and support for our airmen and their
    families. Through a deliberate communication effort, supervisors down
    to the unit level understand they must stay well versed on the
    different force management initiatives and how they affect their team.
    We are committed to sitting down with each individual airman to talk
    through options and refer them to support agencies as appropriate. As
    we push forward through the turbulent road ahead, our commitment to our
    fellow airmen and their families will assuredly serve as the fabric
    that holds us together.
                             transition assistance
        As we manage the reductions to end strength, we must continue to
    focus on support for our airmen transitioning to the civilian sector.
    The Airman and Family Care Division has been largely focused on the re-
    designed Transition Assistance Program (TAP), which includes pre-
    separation counseling, attendance at a Department of Labor Employment
    Workshop, Veterans Affairs benefits briefings, and a Capstone that
    validates career readiness standards have been met and that the
    servicemember is ready to transition to the private sector.
        The number of airmen transitioning as a result of the force
    management programs will be over and above the 32,000 to 35,000 airmen
    our Airmen and Family Readiness Centers (A&FRCs) process each year
    (fiscal year 2013 throughput was 33,422). Our A&FRC team is taking
    additional steps to ensure all airmen separating or retiring attend
    TAP. Some initiatives include increasing the frequency of courses at
    each installation, increasing the class size, coordinating with
    partnering agencies to brief additional TAP courses as needed,
    providing the Air Force community (to include family members)
    information about TAP and contacting airmen to sign them up for TAP.
                            recruiting and retention
        The Air Force Recruiting Service (AFRS) has successfully met All-
    Volunteer Force requirements for the past 14 years and is currently
    positioned to meet both fiscal year 2014 and fiscal year 2015
    requirements. This fiscal year, over 11,000 of America's young men and
    women have completed or are currently attending Air Force Basic
    Military Training (BMT). Additionally, there are approximately 9,000
    recruits already contracted to attend BMT. AFRS has placed the right
    airmen into the right jobs and at the right time to fill the Initial
    Skills Training pipeline with the number of airmen necessary to meet
    career field requirements across the Air Force. Despite a shrinking
    pool of age-qualified youth, a decreased propensity to serve in the
    military and reduced budgets, we continue to recruit the best and
    brightest our Nation has to offer. Currently, 99 percent of our
    recruits are high school diploma graduates and 18 percent have at least
    15 semester hours of college. This punctuates the Air Force commitment
    to produce a high-quality enlisted corps capable of meeting the
    challenges of today and tomorrow.
        During these unprecedented budgetary times, it is imperative we
    continue to invest in programs that attract the high-quality applicants
    the Air Force requires to meet evolving career field needs. The Air
    Force budget for recruiting includes funding for day-to-day operations,
    personnel costs, and advertising activities necessary to accomplish the
    recruiting mission. In recent years, recruiting budgets have seen a
    steady decline in available funding. Fewer advertising dollars have
    created inefficiencies that have evaporated Air Force awareness
    activities in entire markets. A critical component of our recruiting
    success is .built on a foundation of strong community relationships
    that take years to cultivate.
        The Air Force has continued to experience high retention trends
    over the past 10 years, with the enlisted retention trend remaining
    very strong in fiscal year 2013. Even with the upcoming reductions in
    end strength, there are still critical and emerging career fields,
    including battlefield and cyberspace airmen, that are experiencing poor
    retention, low manning and/or high operational demands. To offset this
    challenge, airmen associated with these skills are not targeted in the
    fiscal year 2014 force management programs, and there are numerous
    efforts to increase career field health. These include Special and
    Incentive (S&I) and Bonus pays, protections from force management
    programs, and increases to accessions, retraining and promotions.
    Enlistment and re-enlistment bonuses continue to be effective means to
    maintain positive recruitment and retention levels for critical skill
    career fields. The Initial Enlistment Bonus (IEB), Selective
    Reenlistment Bonus (SRB), Critical Skill Retention Bonus (CSRB), and
    the Air National Guard Incentive Program are all effective and
    measurable retention tools that have successfully encouraged airmen to
    stay and/or retrain into career fields with high demand requirements.
                              compensation reform
        The compensation of our servicemembers has risen significantly over
    the last decade. As a result, we've recruited and retained quality
    airmen who continue to power the world's greatest Air Force. These
    airmen are not overcompensated; they have earned every dollar. However,
    in light of projected constraints on future defense spending, including
    sequestration-level cuts fiscal year 2016 and beyond, we must slow the
    growth of military compensation in order to avoid deeper reductions to
    force structure, readiness, and modernization efforts critical to
    support the warfighter and national defense.
        The Air Force, in conjunction with the Department of Defense, is
    supportive of the Military Compensation and Retirement Modernization
    Commission in its review of potential compensation system reforms and
    study the impact on the All-Volunteer Force. The Air Force concurs that
    there is sufficient information available to make recommendations on
    key areas of current compensation (other than retirement) to slow the
    growth of military pay and benefit costs, starting with the fiscal year
    2015 budget, in order to permit a balanced drawdown in defense
    spending. For major modifications to the compensation system, we
    recommend reviewing the Commission report first to ensure it supports
    the sustainment of a highly skilled and capable All-Volunteer Force.
                        deliberate development of airmen
        The deliberate development of our airmen remains a top priority. It
    is absolutely critical if we are to ensure the force remains prepared
    to meet current requirements and the challenges we will undoubtedly
    face in the future. Investment in education, training, and experience
    are essential to meeting the demands of the combatant commanders our
    airmen serve around the world; the success of yoAir Force is clearly
    attributed to how well these airmen are prepared to handle the tasks
    those commanders need them to execute. We will continue to assess what
    commanders require of Joint Force warrior airmen and ensure we have the
    plans and policies in place to meet current and future expectations.
                    enlisted professional military education
        In fiscal year 2013, we took several steps to ensure we deliver
    enlisted airmen the highest quality professional military education,
    while simultaneously mitigating the challenges of the current fiscal
    environment. We began the first online facilitated distance learning
    Chiefs Leadership Course, a 1-year intensive education initiative for
    all new Chief Master Sergeants to strengthen their leadership and
    management skills as they take on critical roles in our Air Force.
    Additionally, we entered the first stages of a blended learning
    approach to SNCO and NCO Professional Military Education. The blended
    approach delivers the most current and relevant education in an online,
    learner-centric format followed by a shorter in-residence learning
    experience, which expands on current knowledge through group dynamics
    and problem solving. In December 2013, 36 senior noncommissioned
    officers graduated from the first blended learning SNCO Academy course.
    The overwhelming sentiment from the experience proved the course was
    challenging and rewarding with extended opportunities for dialogue and
    leadership reflection.
                         airmen education opportunities
        The Air Force has the most educated enlisted force in the world.
    Every airman entering service is automatically enrolled in an associate
    of applied science degree program through the Community College of the
    Air Force (CCAF). Since April 25, 1977, CCAF has awarded more than
    427,000 degrees that correspond to each member's career field. Many
    view the CCAF degree as the start of their path toward higher
    education. Currently, more than 22,000 enlisted airmen have bachelor's
    degrees or higher and 26 have earned a doctorate degree.
        Air University's Associate-to-Baccalaureate Cooperative is helping
    airmen who have completed CCAF degrees apply those credits toward a
    bachelor's degree. This program has grown to encompass 55 civilian
    university partners offering 200 bachelor's degree programs. Over
    23,000 airmen have participated and 1,735 bachelor's degrees have been
    awarded through this program alone. Additionally, 46 of these graduates
    have become commissioned officers.
        We are also focused on professional credentialing to broaden the
    development of our airmen. The Airframe and Power-Plant licensing
    program is one of several credentialing and licensing initiatives that
    codify the training and experience for over 75,000 aircraft
    maintainers, enabling them to earn the Federal Aviation
    Administration's mechanic license. CCAF is currently engaged in
    developing credentialing and licensing pilot programs and policies that
    support the White House Veterans Employment Initiative, the DOD
    Credentialing and Licensing Task Force, and the National Defense
    Authorization Act for Fiscal Year 2012, section 558 mandate. We are
    convinced that opportunities like these directly increase Air Force
    recruitment and retention as well as enhance our airmen's professional
    capabilities. Our focused efforts result in highly capable airmen ready
    to contribute to our Nation's defense and equipped for professional
    life outside of the Air Force. We continue to explore new programs that
    enhance our ability to educate the force, being keenly aware of the
    associated costs and need to seek efficiencies.
        The Military Tuition Assistance (MilTA) program is a force
    multiplier that not only affects recruitment, retention, and readiness,
    but leads to greater critical thinking skills across the enlisted
    force. In order to sustain this valuable program within the fiscal
    environment and ensure airmen are receiving the right education at the
    right time, the Air Force instituted management controls for the use of
    MilTA. The first was to re-insert the supervisor into the approval
    process. This allowed supervisors the opportunity to get to know their
    airmen's educational goals and provide mentoring. Additionally, airmen
    who have not passed or are overdue for their Physical Fitness Test,
    have an Unfavorable Information File, or have a referral annual
    performance report are ineligible for MilTA until these issues are
    resolved. We believe these controls ensure airmen are prepared to
    succeed in their degree program as well as continue their critical work
    in the defense of our great nation. Our focused efforts result in
    highly capable airmen ready to contribute to our Nation's defense and
    equipped for professional life outside of the Air Force.
                          developmental special duties
        We continue to make deliberate development decisions throughout an
    airman's career with regards to promotions and assignments, and are
    actively identifying ways to ensure we have the right airman, at the
    right place in his or her career, at the right time for our Air Force.
    In calendar year 2013 we formalized 10 Developmental Special Duties
    that directly impact the growth of our enlisted force and provide the
    broader experience airmen need to succeed in different roles throughout
    their careers. Airmen throughout the force are nominated for these
    positions based on their previous experience and future potential. In
    November 2013, we selected approximately 1,100 staff sergeants,
    technical sergeants, and master sergeants to serve as Military Training
    Instructors, Recruiters, USAF Honor Guardsmen, First Sergeants,
    Professional Military Education Instructors, Career Assistance
    Advisors, Technical Training Instructors, USAFA Military Trainers,
    Military Training Leaders, and Airman and Family Readiness Center NCOs.
    These airmen were nominated by their MAJCOM leadership and selected
    from a pool of approximately 7,500 nominees. They are some of our best
    airmen--the first to be hand-picked for these roles under the new
    process and will now be in a position to leverage their proven
    performance across the force.
                        airman comprehensive assessment
        A critical aspect of deliberate development is quality,
    comprehensive feedback that guides airmen toward established goals. In
    the coming months we will introduce the Airman Comprehensive Assessment
    (ACA) that facilitates a deep, meaningful conversation between
    supervisors and the airmen they lead. It includes a self-assessment, a
    detailed evaluation of current performance, and specific questions
    geared toward airmen-centered feedback. The form will ensure airmen
    understand their critical role in organizational climate, as well as
    Air Force culture, support of the mission, and individual readiness and
    resiliency.
                         caring for airmen and families
        Caring for airmen and their families is about maintaining the
    source of airpower. Our airmen are the engine that keeps the force
    moving, and we rely on them to meet any challenge and overcome any
    obstacle. The hallmark of our success has always been, and will remain,
    our people. Unfortunately, in the current fiscal environment, we must
    make tough decisions to include reducing or cutting some programs. To
    help mitigate the impact of reduced funding, the Air Force prioritized
    its programs to resource those most valued from an enterprise-wide,
    mission accomplishment perspective. As we move forward and our force
    changes, we must adapt our programs and services to ensure we meet the
    needs of today's airmen and their families.
                     sexual assualt prevention and response
        Last summer, the Air Force established a multi-functional Air Force
    Sexual Assault Prevention and Response Office--a directorate-level
    organization, led by a general officer whom reports directly to the Air
    Force Vice Chief of Staff. This office leads a robust focus on sexual
    assault prevention, advocacy, investigation, accountability and
    assessment and enables the Air Force to better synchronize with the
    Department of Defense lines of effort. As a result, the Air Force has
    been able to provide broader, more comprehensive victim support. The
    Air Force has also benchmarked a Special Victim's Counsel Program. It
    is through this program that victims of sexual assault have personal,
    direct access to an attorney representing only their interests in the
    judicial process as well as advocating for them in any collateral
    discipline issues and assisting them in any case issues whenever
    necessary. Additionally, ``Every Airman Counts'' is an initiative that
    our Air Force Vice Chief of Staff, General Larry O. Spencer launched as
    a forum to promote airman-to-airman dialogue related to Sexual Assault
    and provide the opportunity for airmen to provide suggestions to senior
    leaders. Furthermore, the Air Force hired d trained Air Force Office of
    Special Investigations agents for the exclusive purpose of
    investigating sexual assaults. The Air Force team has already conducted
    focus groups with 1,400 airmen, including 30 sexual assault survivors,
    male and female, at 14 installations worldwide and obtained valuable
    insight from the junior airmen, all levels of leadership, and survivors
    of sexual assault. Lastly, the Air Force Sexual Assault Prevention and
    Response Office works jointly with its Department of Defense
    counterparts to streamline future survey efforts, to include a 100
    percent transition to the Defense Equal Opportunity Climate Survey. We
    are committed to taking every step possible to eliminate sexual assault
    within our ranks and instill confidence and care in the process.
                           care for wounded warriors
        Our combat wounded and our seriously injured and ill airmen and
    their families are a top priority. They continue to willingly sacrifice
    day-in and day-out to serve our Nation; their resilience and
    perseverance when the effects of war forever alter their lives is
    simply astounding. We match their commitment through a lifelong promise
    to provide them the care and support they need, and so rightfully
    deserve. The Air Force has built a Recovery Care program for these
    airmen that focuses on the full continuum of care--recovery,
    rehabilitation, and transition.
        By strategically placing Recovery Care Coordinators in 43 locations
    around the world, the airmen and their families receive face-to-face,
    individualized service and support when and where they need it. Our
    commitment is unwavering whether our wounded, ill, or injured airmen
    are returning to active service or transitioning to civilian life. The
    Recovery Care Coordinators also support the families and caregivers of
    our airmen by identifying needs, connecting with support groups, and
    working to ease the burden brought on by their current circumstance.
        Along with our Recovery Care Coordinators, the Air Force provides
    non-medical care managers who act as fiduciary agents on behalf of the
    recovering airman and as advocates for the recovering airman and his or
    her family with other government and non-governmental agencies. They
    work with recovery care coordinators, medical care providers,
    chaplains, commanders and other providers as a single Recovery Team
    that meet the needs of our wounded, ill, and injured and their
    families.
                         post-traumatic stress disorder
        As might be expected with fewer deployments, the Air Force has seen
    a slight drop in newly diagnosed Post-Traumatic Stress Disorder (PTSD)
    cases between 2011 and 2012. Our data is not yet complete from 2013,
    but we expect the slight reductions to continue. Our overall rate has
    remained relatively low, and our current rate for newly diagnosed PTSD
    is under 0.4 percent. Historically we have retained approximately 75
    percent of our airmen diagnosed with PTSD.
        The Air Force remains committed to helping our airmen through
    improving early symptom recognition and offering evidence-based
    treatments. We continue to screen our airmen for PTSD symptoms at set
    points in the deployment cycle, to include screening through Pre- and
    Post-Deployment Health Assessment and Reassessment, and provide
    training to help counter the stresses on our airmen with each
    deployment. Our airmen in the Explosive Ordnance Disposal, Security
    Forces, Medical, and Transportation career fields are at higher risk of
    developing PTSD and receive additional education and training on how to
    recognize symptoms of PTSD along with available treatment and
    supportive resources. The Deployment Transition Center (DTC), Ramstein,
    Germany, continues to support airmen in our high-risk careers with 2
    days of training and reconstitution time before returning home. A 2010
    study showed airmen who participated in the DTC reported at least a 6
    percent lower rate of post-traumatic symptoms, problematic alcohol use
    and interpersonal conflict after having attended the program as
    compared to a control-group of deployed airmen who did not participate.
    Two follow oil studies. are being conducted to measure the continued
    effectiveness of the DTC. We continue to collaborate with the
    Department of Defense and Veterans Affairs to advance research on
    prevention and treatment of combat related injuries, including PTSD.
                             traumatic brain injury
        Traumatic Brain Injury (TBI) rates in the Air Force remain very
    low. However, we are expanding our efforts to ensure our airmen seek
    medical care for mild traumatic brain injury, or concussion, in any
    setting. The vast majority ofTBI cases in the Air Force are from
    nondeployment related injuries. We identify deployed individuals with
    continued TBI symptoms upon return home through the Post Deployment
    Health Assessment, with referral as appropriate. The Defense Centers of
    Excellence for Psychological Health and Traumatic Brain Injury and
    Defense and Veterans Brain Injury Center continue to serve as valuable
    partners in facilitating a combined effort between all Services, the
    Department of Veterans Affairs and civilian subject matter experts to
    develop clinical practice guidelines for our primary care providers.
    Our efforts are closely coordinated with the other Services through our
    TBI Quad Service Working Group to make sure we incorporate the latest
    in TBI research into clinical practice. The National Intrepid Center of
    Excellence for Psychological Health and Traumatic Brain Injury serves
    as a premier referral center for those deployment-related cases with
    more significant symptoms.
                               suicide prevention
        Suicide prevention remains a high priority for Air Force leadership
    at every level. Our prevention program is an integrated network of
    measures focused on reducing suicide through community support,
    education, early identification and treatment of those at risk. The
    program was designed with 11 overlapping elements to enhance the
    capacity of the Air Force to recognize and respond to airmen in
    distress. We are encouraged that the number of suicides among Active
    Duty airmen declined between 2012 and 2013. However, we know one loss
    is too many, which drives us to place significant focus and resources
    toward eliminating suicides in our force.
        We are committed to strengthening and improving our program. Some
    recent suicide prevention initiatives include live training for all
    installation suicide prevention program managers and Department of
    Defense Suicide Event Report Point of Contacts, release of the revised
    Air Force Guide to Suicide Risk Assessment, Management, and Treatment
    for mental health providers and staff, and efforts to expand the Air
    Force's strategic communication plan for suicide prevention and
    promoting the Wingman Culture.
                                health promotion
        The Air Force is committed to promoting a healthy, fit, resilient,
    and productive force. Our Health Promotion target areas include Tobacco
    Free Living, Nutritional Fitness, Physical Activity, and Healthy
    Weight. Consistent with our warfighting mission, our airmen have rates
    of obesity and physical activity that compare quite favorably with the
    civilian population. Smoking has seen a steady decline; our current
    smoking prevalence of 14 percent is lower than the national average of
    18 percent. In the current fiscal climate, we are committed to
    implementing low-cost, high-reach policy and environmental
    interventions that promote healthy living as the default choice and
    social norm.
                      child and youth development programs
        The Air Force has continued our commitment to deliver readily
    available, affordable, and quality childcare programs for our airmen
    and their families. These programs ensure our airmen are able to focus
    on the mission while knowing their youngest family members are cared
    for through quality Child & Youth programs. In fiscal year 2013 we
    delivered high quality child care programs to 58,000 children.
        In addition to brick and mortar facilities, our Air Force Expanded
    Child Care program provides assistance in a home-based setting for
    airmen who need care during unusual shifts, extended duty hours, and
    drill weekends. This type of care is mission-critical particularly in
    those locations where community-based care options are both few and
    costly. Through programs like Extended Duty Care, Missile Care,
    Supplemental Care, and Returning Home Care, the Air Force is able to
    provide a wide range of support to our Active and Reserve component
    families. We expanded this capability in fiscal year 2013 by
    implementing new childcare programs to assist wounded warriors,
    families of the fallen and those with unique needs due to medical
    circumstances.
        Additionally, our Air Force Youth Programs have taken a
    comprehensive approach to resiliency by integrating elements of
    resilience concepts throughout the experiences we provide to youth. We
    recognize the importance of providing meaningful opportunities during
    the out-of-school hours which can be peak times for ``at risk''
    behavior, particularly in light of reduced school district and
    community service budgets. Our Youth Programs had 642,000 enrollments
    in a variety of fitness and health, deployment support, resiliency
    building, academic enrichment and community service activities offered
    to Total Force youth around the world. The Air Force Teen Council
    continues to offer advocacy opportunities and leadership skills while
    helping our teens strengthen their personal resiliency and contribute
    to the larger Air Force community. The newly implemented quarterly Teen
    Movement Projects have created a network of involved teens at each
    installation. New for 2013, our Youth Program members participated in
    the first ever Military Youth of the Year competition, an initiative in
    partnership with the Boys and Girls Clubs of America. Showcasing the
    stellar achievements of military teens around the world, Air Force
    teens were awarded an astonishing five out of six regional awards
    garnering a combined total of more than $70,000 in Military Youth of
    the Year scholarships.In addition, through another key partnership with
    the U.S. Department of Agriculture's 4-H Youth Development Program,
    over 1,000 Air Force youth participated in the 2013 National Youth
    Science Day event and we were able to reach 14,000 additional youth
    through partnership with 4-H county extension agents.
                                 family support
        The Air Force continues to bolster its communication to family
    members through the Key Spouse Program. The program designates one
    volunteer family member in each unit to disseminate information from
    installation leaders to other unit family members. This builds a
    greater sense of community, especially when families are separated by
    deployments.
        Additionally, the Air Force is making steady progress in support of
    Air Force dependents attending public, private, DOD Dependent Schools,
    home, and virtual schools. Civilian (or Military designee) school
    liaisons and staff at our Airman & Family Readiness Centers provide
    support to base leaders and families through advocacy with local and
    state school administration and school boards. Forty-six States and the
    District of Columbia have passed legislation to establish an Interstate
    Compact on educational opportunity for military children in State and
    local school districts. The Interstate Compact ensures military
    children are not negatively impacted in school by their families'
    service to the Nation. It provides educational solutions on class
    placement, records transfer, graduation requirements, immunizations,
    and exit testing, as well as allows late entry to extra-curricular
    activities and sports teams. The work done to ensure our families are
    not penalized as they move around the world is an important factor for
    our airmen and their families.
        About 50 percent of Air Force spouses seek employment with each
    military move, making spouse employment a consistent challenge. In many
    cases spouse employment constitutes almost half of an Air Force
    family's income. As I travel and meet with airmen and their families,
    the struggle to find spouse employment is often a topic of
    conversation; it is very much on our airmen's minds. They have
    benefited from your support and White House efforts to help military
    spouses enjoy consistent and productive careers despite relatively
    frequent relocation.
        Unemployment compensation for spouses of servicemembers continues
    to be critical to Air Force families. Support for unemployment
    compensation acknowledges military spouses need reasonable time and
    resources necessary to find suitable employment or meet licensing or
    credentialing requirements each time they move. We look forward to all
    States properly compensating spouses that move because of their
    military obligation.
        Our Exceptional Family Member Program (EFMP) provides targeted
    assistance to airmen who have family members with special needs. In
    fiscal year 2013, we continued strengthening this program to provide
    our families with access to greater resources that will assist them in
    effectively balancing mission requirements with family care
    responsibilities. We have 35 full-time family support coordinators at
    Air Force installations with 175 EFMP enrollees or higher. In fiscal
    year 2011, Respite Child Care was launched at seven locations to
    provide support to parents of exceptional family members. The program
    is now in 64 locations and has provided over 37,000 hours of skilled
    respite care allowing parents a needed break from the stressors of
    caring for a child with special needs. Through the generous support of
    the Office of the Secretary of Defense, 100 accessible childcare
    playgrounds and community nature parks are in various stages of design
    and construction and will support family members with special needs.
                                   conclusion
        Chairwoman Gillibrand, Ranking Member Graham, members of the
    subcommittee, thank you again for this opportunity to represent the
    incredible airmen and their families through this testimony. This past
    year has been extremely turbulent and stressful on those serving in our
    Air Force. All members--Active Duty, Air National Guard, Air Force
    Reserve, and civilian airmen--have endured significant uncertainty and
    churn with respect to mission capability, compensation, and in some
    cases the very meaning of service in our Air Force. The budget
    challenges we face have not been lost on our force. We've stood down
    flying squadrons, furloughed civilians, and seen our readiness levels
    significantly decline; yet you would be proud to know the first concern
    of our airmen is mission accomplishment. Our airmen are truly doing
    amazing work around the world every day, from delivering relief to
    typhoon stricken regions in the Philippines to supporting combatant
    commanders from all comers of the globe. They continue to serve
    honorably and proudly in defense of our Nation.
        Our Air Force families are also a critical component to our
    success. These men and women serve alongside the servicemember by
    taking care of the home front while we employ and enable airpower
    around the world. They stand strong while loved ones deploy to war
    zones in foreign countries. Their faith and support is critical to our
    airmen and enable the focus and dedication our complex missions
    require. Thank you again for your continued support for our brave
    airmen and their supportive families.

        Senator Gillibrand. Sergeant Major of the Marine Corps
    Micheal P. Barrett.

      STATEMENT OF SGTMAJMC MICHEAL P. BARRETT, U.S. MARINE CORPS

        Sergeant Major Barrett. Chairwoman Gillibrand, Senator
    Kaine, good afternoon. This is my fourth opportunity to address
    Congress and discuss important quality of life issues,
    personnel issues, and our commitment to our marines and their
    families. It is my privilege to appear before you today.
        The last 12 years have been most challenging. We are
    profoundly grateful for your fidelity and support.
        As you are well aware, the global environment is not
    getting any nicer. Clever enemies are searching for windows of
    vulnerability and to exploit our liberties and our security.
    With the fiscal constraints we are enduring, we must, more than
    ever, stay committed to our recruiting and our retention, and
    making marines. Our warfighter readiness, being most ready when
    our Nation is least ready. Care for our wounded, ill, and
    injured, and our family care programs, preserving strong
    families. Transition readiness, returning quality citizens
    after their selfless service. Combating social ills,
    prevention, accountability, treatment, and resiliency.
    Maintaining our facilities, sustainment, restoration, and
    modernization for our billions of dollars worth of
    infrastructure.
        Today, I report more than 37,000 marines are forward
    deployed, forward engaged, shaping, training, and deterring
    aggression around the globe, supporting all 6 geographic
    combatant commanders. We are providing our Nation the
    capability to contain crisis, fill the gap, or hold the line.
    We may be done with Afghanistan this year, but those that we
    have been fighting are not done with us.
        At our core, the Marine Corps is the Nation's crisis
    response force, and fulfilling this role is our top priority.
    We have met and continue to meet our obligations in current
    conflicts, emerging crises, and steady state operations. To
    that point and most recently, your marines' efforts have saved
    lives, provided much needed relief, and evacuated over 19,000
    victims ravaged by Typhoon Haiyan. Our special purpose marine
    air ground task force crisis response successfully executed a
    non-combat evacuation operation in South Sudan and provided
    reinforcements to other U.S. embassies. We have participated in
    hundreds of theater security cooperation activities with the
    armed forces of more than 50 partner nations. The 13th, 22nd,
    and 31st Marine Expeditionary Units are afloat, and they stand
    ready as a rapid response force capability providing stability
    in their area of responsibility. We continue to stand alongside
    the Afghan National Security Forces engaged in combat,
    conducting counter-insurgency and security force assistance
    advisory missions.
        Marines can face America's adversaries on the front line or
    respond to any emerging crisis because of the care and support
    we provide our families on the homefront. With the progress
    that we have made in our warfighting capabilities and marine
    family readiness programs over this past decade-plus and as we
    draw to move to a post-Operation Enduring Freedom environment,
    the Corps remains committed to building the most ready force
    our Nation can afford, balanced across our pillars of
    readiness: high quality people, unit readiness, the capability
    and capacity to meet the combatant command requirements, the
    infrastructure sustainment, and equipment modernization.
        We are proud of our reputation for frugality and remain a
    best value for our country's defense. In these times of budget
    austerity, you can hold high expectations for your Marine Corps
    to be good stewards of taxpayer dollars.
        The Marine Corps will continue to meet the needs of the
    combatant commanders as a strategically mobile force optimized
    for forward presence and be the crisis response force of choice
    for our leadership. We may have less, but it does not mean we
    will be doing less nor will we do it any less than best.
        Thank you for the opportunity to testify today.
        [The prepared statement of Sergeant Barrett follows:]
            Prepared Statement by SgtMajMC Micheal P. Barrett, USMC
        Chairwoman Gillibrand, Ranking Member Graham and distinguished
    members of this subcommittee, I appreciate the opportunity to provide
    you an update on the Marine Corps' commitment to our marines and their
    families.
        The Marine Corps has and will continue to stand ready to face any
    challenges that need to be conquered to complete our Nation's missions.
    We remain a forward-deployed, forward-engaged force. The Marine Corps
    is continuing to shape, train, and deter aggression. We are responding
    to every crisis, conflict, and contingency around the globe. The Marine
    Corps does this by being prepared--ready and standing at the door of
    chaos with the tools, the people, and the training necessary to do the
    Nation's bidding and providing our Nation's leaders with the time and
    decision space that they require.
                    update on marine corps around the world
        The Marine Corps is involved across the world--Afghanistan, the
    Pacific, and U.S. Embassies. I would like to take a moment and
    highlight just a few of the great things our men and women in the
    Marine Corps have been doing to accomplish this Nation's missions
    around the world.

             The Marine Corps was part of the U.S. Government
            humanitarian assistance and disaster relief operations in the
            Philippines in the wake of Typhoon Haiyan that impacted more
            than 4.2 million people across 36 provinces. The Marine Corps
            and Navy were able to be in the Philippines within hours of the
            Philippine Government asking for international aid. During
            ``Operation Damayan'', the Marine Corps was able to provide
            search-and-rescue sorties; transport aid workers; clear roads;
            evacuate 540 American citizens, 18,767 Philippine citizens, and
            301 nationals from other countries; and deliver 2,005 tons of
            relief supplies.
             Over the last year, the Special-Purpose Marine Air-
            Ground Task Force Crisis Response has been busy in non-
            combatant evacuation operations (NEOs) such as in South Sudan
            and providing reinforcement to U.S. Embassies when needed as in
            the case of Libya.
             In Afghanistan, the Marine Corps Security Force
            Assistance Advisory Teams (SFAATs) (first deployed in 2012)
            have continually advised and assisted operations alongside
            Afghan National Security Forces. Additionally, the Marine Corps
            continues to conduct counterinsurgency (COIN) operations
            throughout the country.
             The 31st and 13th Marine Expeditionary Units (MEUs)
            have been afloat as a forward-deployed, rapid-response force
            capability providing stability in their area of operational
            responsibility.
             Throughout the year, the Marine Corps participated in
            hundreds of Theater Security Cooperation activities with the
            Armed Forces of more than 50 partner nations supporting all six
            combatant commands .
             The U.S. Marine Corps spearheaded a maritime domain
            awareness demonstration at the Philippine Coast Guard
            Headquarters as part of the first Philippine-U.S. initiative to
            enhance Philippine security and defense capabilities in January
            2014.

        Whether it is deploying to Afghanistan, assisting in humanitarian
    relief efforts in the Philippines, or working with less due to
    sequestration and government shutdown; the Marine Corps has not
    faltered in its operational readiness or commitment to the task at
    hand. The Marine Corps remains committed to being the most ready force
    our Nation can afford.
        Recently, the Commandant of the Marine Corps and I have led an
    effort to ``reawaken the soul of the Corps'' in order to remind and
    reconfirm who we are, what we do and what America expects from her
    marines. This reawakening will impact our programs to ensure that
    quality of life is at the levels our marines and their families
    deserve. As we draw down in Afghanistan and move toward our role as
    crisis-response, force-in-readiness, we are laser focused in areas of
    discipline, faithfulness, self-excellence, and developing committed
    engaged leaders. The challenge in our efforts is the fiscal burden and
    the uncertainty over the next few years.
        Sequestration and fiscal constraints, global engagements, force
    shaping, and many other environmental conditions impose challenges and
    opportunities. In fiscal year 2015 and beyond, we are beginning to
    realize the effects of budget cuts. As our landscape changes,
    regardless of the funds available every dollar must yield positive
    return and contribute to the readiness of the Marine Corps. We will
    continue to monitor readiness across our Five Pillars of Readiness:
    High Quality People, Unit Readiness, Capability and capacity to Meet
    the Combatant Command Requirements, Infrastructure Sustainment, and
    Equipment Modernization. To protect our readiness under current funding
    levels, we can only do this at the cost of infrastructure sustainment
    and equipment modernization, as well as, assessing the various programs
    and resources we provide to marines and their families and where
    savings can be realized. The decisions were carefully made for the
    current fiscal climate to still meet the needs of the Marine Corps, but
    over time degradation to facility sustainment, restoration and
    modernization and unnecessary negative impacts to the force and our
    families will ultimately suffer.
    End Strength
        As we drawdown the Marine Corps' Active component end strength from
    war time levels of 202,000 marines, we have taken deliberate steps to
    construct a force that we can afford to operate and sustain in the
    emerging fiscal environment. Over the past 3 years, we have undertaken
    a series of steps to build our current force plan. In 2010, our Force
    Structure Review Group utilized the Defense Strategic Guidance and
    operational plans to determine that the optimum size of the Active
    component Marine Corps should be a force of 186,800. Under the
    constraints of the 2011 Budget Control Act, we estimated that a force
    of 182,100 Active component marines was realistic. More recently, as we
    entered into the Quadrennial Defense Review, we came to the difficult
    understanding that, under the threat of continued sequestration or some
    variant, an Active-Duty Force of 175,000 marines is what our Nation can
    afford. This end strength is purely budget-driven and accepts risk in
    our ability to carry out major combat operations.
        Our current plan is to achieve a 175,000 end strength by the end of
    fiscal year 2017. We are conducting a measured drawdown with a goal to
    reduce end strength by no more than 7,500 marines per year. This is to
    be accomplished primarily through natural attrition, voluntary
    separation, early retirement authorities, and limited use of
    involuntary separations. 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.
        We ended fiscal year 2013 with an end strength of 195,657, achieved
    primarily through increased voluntary attrition of junior enlisted
    marines as well as through the use of programs such as Voluntary
    Separation Pay and Temporary Early Retirement, both of which induced
    additional voluntary attrition from the mid-level enlisted ranks. Our
    end strength goal for fiscal year 2014 is 188,800 marines, 167,823 of
    whom are enlisted, and will be achieved primarily through reduced
    accessions, selective reenlistment, and a continued emphasis on
    voluntary attrition.
    Marine Corps Reserve
        Your Marine Corps Reserve is also undergoing a reduction in
    Selected Reserve end strength in order to better align structure with
    budget levels. Our plan is to reduce our Selected Reserve end strength
    from 39,600 to 38,500 marines by fiscal year 2017. The reductions will
    come primarily from the junior enlisted ranks and individual
    mobilization augmentees (IMAs). The Reserve component is currently over
    manned in its junior enlisted ranks and critically undermanned in its
    senior enlisted ranks. Decreasing new accessions will yield a more
    balanced Marine Corps Reserve. Given our reduced Active Component
    manpower needs over the coming years, the requirement for Reserve IMAs
    to mobilize with Active component units is likely to decrease. Overall,
    our force shaping measures will leave the Marine Corps with a more
    balanced Reserve component able to reinforce the Active component and
    serve as an integral part of the Marine Corps Total Force in
    accomplishing its assigned mission as an expeditionary force in
    readiness.
        For fiscal year 2014 and beyond, we continue to refine the use of
    incentives and MOS retraining to strengthen unit staffing in
    specialties and grades where we remain critically short. In particular,
    we have targeted our incentives toward recruiting and retention of
    noncommissioned officers (NCO) and staff noncommissioned officers
    (SNCO) in our Selected Reserve units.
        We continue to face challenges in manning our SNCO billets in the
    SMCR. As the Active component grew its end strength to 202,000, many of
    our junior marines and NCOs left the Reserves for the Active component.
    Had they remained in the Reserves, many of those same marines would
    have been promoted and filled our SNCOs requirements today. While we
    have directed incentives toward retaining our best marines, the SMCR is
    still critically short SNCOs. This SNCO shortage will take
    approximately 6 years to fix as our post-202,000 accessions reach the
    necessary time to be considered for promotion.
    Recruiting
        All recruiting efforts for the Marine Corps (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.
        Last fiscal year, we successfully achieved all enlisted recruiting
    goals for both the Active and Reserve components. Our current mission
    for enlisted marines is 25,000 regulars (Active component) and 5,523
    reservists. We expect to achieve our annual recruiting `shipping'
    mission (i.e. new accessions sent to recruit training) and quality
    goals, but budget reductions may impact our contracting efforts and
    capacity to achieve success in fiscal year 2015. The fiscal year 2015
    mission forecast is 28,370 regulars and 5,280 reservists.
        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.
    Retention
        For fiscal year 2014, the Marine Corps is on track to achieve its
    end strength target of 188,800 Active component marines (and
    approximately 150 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 continues 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 cyber security technician and counter intelligence specialist.
    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.
    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.
        While the Marine Corps' enlisted ranks are quite diverse from the
    standpoint of race and ethnicity, we understand there is a need to
    broaden opportunities for women. Efforts are underway to further
    integrate both female enlisted marines and officers into the Air Ground
    Task Force. Regardless of race, ethnicity and gender, when our enlisted
    marines look at their officers and see themselves reflected among them,
    their level of commitment, their aspirations and their performance can
    be impacted in a positive manner. Thus, the Marine Corps has
    established increased diversity in officer recruiting as a priority in
    our recruiting efforts.
     marine corps maintaining quality of life in current fiscal environment
        Regardless of the decisions that are made regarding the budget, the
    Marine Corps remains acutely aware of the critical relationship between
    quality of life and Marine Corps readiness. Marines can face the enemy
    on the frontline, because of the care and support we provide on the
    home front. Our commitment to the Marine is during their entire
    lifecycle, from boot camp through separation or retirement, and beyond.
    The Marine Corps will continually ensure the long-term stability of
    Marine and Family Programs by using evidence-based practices; ensuring
    our programs meet all credentialing and accreditation to ensure
    consistency of care across the Marine Corps; continually assessing our
    programs; and ensuring that we are strategically communicating to our
    marines and families so they are aware of all resources available to
    them.
        As we continue to draw-down our efforts in Afghanistan and reduce
    our end strength to 175,000, we remain committed to a continuum of care
    by ensuring family readiness and care; supporting families of the
    fallen; caring for our wounded, ill, and injured; providing behavioral
    health services; assisting our marines transition to being successful
    civilians; and continuing to make improvements to infrastructure and
    facilities. In the current and upcoming fiscal years, we remain
    committed to our mission.
        The future of Marine and Family and Quality of Life in the Marine
    Corps will not be served by ``the way it's always been'' mentality or
    returning to pre-combat environments. With changing demographics,
    mission, and environment at hand, the Marine Corps will continue to be
    good stewards of our resources, always be taking and making
    assessments, and improve our efforts where we can for those we serve.
      reawakening the soul of the corps through preventing sexual assault
        The Marine Corps continues to take steps to eradicate sexual
    assault among our ranks. Sexual assault is a shameful and disgusting
    crime that has no place in the Marine Corps. The Marine Corps three-
    phase Sexual Assault Prevention and Response (SAPR) Campaign Plan
    (Strike, Implement and Sustain) outlines our efforts to reduce, with a
    goal to eliminate, sexual assaults. Since its inception in June 2012,
    the Marine Corps has addressed sexual assault in multiple areas by
    driving a tremendous infusion of training, restructuring our oversight
    organizations, and assisting senior leadership efforts. Our SAPR
    efforts thus far have seen a continued rise in reporting. In fiscal
    year 2013, reports of sexual assault in the Marine Corps increased by
    86 percent, continuing a trend started in fiscal year 2012, which saw a
    31 percent reporting increase. In addition, 20 percent of all fiscal
    year 2013 reports were made for incidents that occurred prior to the
    victim joining the Corps; 17 percent were made for incidents that took
    place over 1 year ago. With sexual assault being an under-reported
    crime, we believe that these trends speak directly to the trust and
    confidence that marines have in their immediate commanders and the
    overall Marine Corps program. These encouraging developments suggest
    that our efforts are working to increase awareness of SAPR resources
    and to establish a healthy environment of respect and dignity where
    victims feel confident in coming forward. As we speak to our marines
    about their commitment to being guardians of our Core Values, part of
    that is to continue strengthening our victim care programs and offender
    accountability. Now that Phase I is completed, Phase II is designed to
    continue our positive trends ensuring the sustainment of the energy and
    momentum of the Campaign Plan, while further implementing large-scale
    institutional reform, emphasizing prevention through training, and
    having more deliberate involvement by our senior leaders.
        To date, we have put in place initiatives including a General
    Officers SAPR Symposium, SAPR training at Sergeants Major Symposium,
    Command Team Training, ``Take a Stand'' for noncommissioned officers,
    and ``All-Hands'' training. We have also customized Corps-wide SAPR
    training programs according to the rank and level of responsibility of
    marines. Additional SAPR initiatives include the development of Sexual
    Assault Response Teams (SARTs), new Command Climate Surveys, and
    mandated credentialing requirements and continuing education in
    advocacy for all SAPR personnel.
        Between fiscal year 2012 and fiscal year 2013, the Marine Corps has
    seen an increase in reporting with a corresponding increase in
    prosecutions for sexual assault. In anticipation of this increased
    caseload of more complex prosecutions, the Campaign Plan also
    restructured our entire legal community to ensure we have the right
    assets to prosecute these complex cases. New Regional Trial Counsel
    (RTC) offices provide consolidated resources, including experienced
    field-grade complex trial counsel (CTC), a civilian highly qualified
    expert (HQE) in sexual assault prosecution, embedded investigators, a
    legal administrator, and support staff. The RTC can pull from these
    resources to assign the right counsel, on the right case, in the right
    location.
        In addition to the restructuring of the legal community, on January
    1, 2014, the Marine Corps' Victims' Legal Counsel Organization (VLCO)
    became fully operational. The VLCO provides legal representation to all
    victims of sexual assault, and also to victims of other crimes. The new
    VLCO, along with our continued SAPR efforts, show that engaged,
    committed leadership remains the key as we reawaken the Corps sense of
    tradition and ethics, and reinforce the values that make us America's
    expeditious force in readiness.
     reawakening the soul of the corps through prevention, treatment, and
                                   resiliency
        The Marine Corps firmly believes that readiness of the Corps is a
    direct result of maintaining individual marine fitness. The Marine
    Total Fitness (MTF) concept is a holistic model focused on fitness of
    body, mind, spirit, and social relationships. This framework for
    holistic development is supported by a unified approach to improve
    resiliency and through engagements across the force. This approach will
    improve performance of marines, their leaders, and their families. .
        An important component of MTF is to proactively address the complex
    issues facing our marines and their families after over a decade of
    persistent conflict. Even as the Marine Corps moves into a post
    Operation Enduring Freedom/Operation Iraqi Freedom environment, there
    will be a significant need of services to support marines and families
    facing a potential delayed onset of symptoms, which requires diligence
    in prevention and early intervention. To address these needs, the
    Behavioral Health Program acts as an integrated service delivery model
    that facilitates the collaborative efforts and resources of all
    behavioral health elements including Family Advocacy, Substance Abuse,
    and Community Counseling, which includes Combat Operational Stress
    Control and Suicide Prevention. Our mental health surge capacity is
    based on implementing strong strategies for commanders and installation
    staff, and investing in evidence-based practices and delivery
    methodology. The purpose of the surge is to enhance mission readiness
    and welfare of marines and their families, by providing capacity for
    rapid identification of behavioral health issues and for expediting
    referrals to resources and assistance, which also promotes the
    resilience of our marines and their families
        Part of reawakening the Corps is to continue to stress that all
    marines have a responsibility to look out for one another and to assist
    anyone who might be struggling. Our Marine Awareness and Prevention
    Integrated Training (MAPIT), that is beginning to be implemented in
    fiscal year 2014, will train the entire force on behavioral health
    issues. The MAPIT initiative will provide education and skill-based
    peer-to-peer training consistently across a Marine's career. MAPIT, in
    conjunction with our more selective training program, Operation Stress
    Control and Readiness (OSCAR), use other evidence-informed prevention
    tools to deliver the right prevention tools to the right marines at the
    right time. These include giving marines the skills to prevent and
    mitigate stress injuries in themselves and their fellow marines, as
    well as, giving commanders support in building unit strength,
    resilience, and readiness. Additionally, the DSTRESS line continues to
    provide anonymous, 24/7 counseling services to any marine, attached
    sailor, or family member. Enhanced resilience, achieved through
    training and improved physical, spiritual, social, and psychological
    fitness, can mitigate post-traumatic stress, affect incidents of
    undesirable and destructive social behaviors, and lead to greater
    likelihood for future good health.
        Behavioral Health Programs are now focused on prioritizing services
    to target marines and improve our program capacity at the installation
    and unit level through enhanced professionalization of our workforce,
    accreditation oversight of the programs, and surge capacity to address
    access to care issues. One component of this approach has been to
    substantially increase the number of trained behavioral health
    personnel available to provide non-medical counseling services and
    treatment. The result has been to develop community counseling
    capabilities to improve screening, prevention, and counseling services
    through our Community Counseling Program at installations.
    Additionally, we have expanded Military and Family Life Consultant
    Program (MFLC) to provide confidential care in a unit or installation
    setting. In fiscal year 2014, Behavioral Health will be implementing
    the Marine Expeditionary Force (MEF) Prevention Program, which aims to
    improve the implementation, fidelity, and evaluation of behavioral
    health prevention initiatives across the operating forces.
     reawakening the soul of the corps through transitioning marines into
                                quality citizens
        As our priorities shift from wartime requirements to post OEF, a
    key focus is on marines transitioning out of the Marine Corps.
    Transitioning Marines need the right preparation to reach personal
    goals and effectively translate their military experience to a
    successful civilian life. Transition is a process, not an event.
    Beginning at recruitment, the Marine Corps strives to ensure that we
    are providing a continuum of tangible learning, training, or
    experiences that makes every Marine transition ready throughout their
    career.
        The Marine Corps Transition Readiness Seminar (TRS) must be
    completed by marines within 12 months of separation or within 24 months
    of retirement, but no later than 180 days prior to separation or
    retirement. TRS is a week-long program that includes a mandatory
    standardized core curriculum including briefings from Veteran Affairs
    and Department of Labor and an introduction to their choice of
    entrepreneurship, career and technical training, or higher education.
    After TRS, interested marines attend one of three additional 2-day
    tracks that are in line with their future goals and objectives subject
    to their ability to meet Career Readiness Standards: (1) College/
    Education/University delivered by Marine Corps staff; (2) Career/
    Technical Training delivered by U.S. Department of Veterans Affairs
    staff; or (3) Entrepreneurship delivered by the Small Business
    Administration. Additionally, the Marine Corps involves leadership in
    the transition process through Capstone, where the separating Marine
    sits with the Commander or the commander's representatives no less than
    90 days before separation to verify the Marine has met career readiness
    standards. In calendar year 2014, the Marine Corps will incorporate a
    life cycle approach to transition preparation that will allow marines
    to meet Career Readiness Standards well in advance of the Transition
    Readiness Seminar.
        With the significant reduction in end strength of the Marine Corps
    over the next few years, it is vital that our commitment to our marines
    includes adequate preparation to leave the Marine Corps with all the
    resources and advantages to be able to translate being a marine to
    civilian life.
      reawakening the soul of the corps through preserving strong families
        During Operation Iraqi Freedom and Operation Enduring Freedom,
    Marine and family programs increased support to family programs to
    reduce the impact of stressors; enable quick acclimation to the Corps;
    build deployment knowledge and skills; and improve access to care and
    official information for marines and families to ensure operational
    readiness. We have seen that increasing support to these programs has
    had a positive impact on quality of life. In support of strong
    families, the 2012 Quality of Life Study found significant increase in
    satisfaction in three life domains: Residence, Income, and Standard of
    Living, and in marines relationships with their children. Findings from
    the 2012 Quality of Life Study specific to Marine and family programs
    indicated a majority having the training necessary to deal with the
    stress of deployment and/or combat, and being satisfied with military
    support services overall.
        The Unit, Personal and Family Readiness Program and Marine Corps
    Family Team Building Program are both designed to strengthen and
    fortify marines and their families. Our civilian family readiness
    officers are an asset in ensuring marines and their families receive
    official communications, readiness and deployment support, information
    and referral services for support services and volunteer management.
    With our shift in wartime requirements and volume of previous years'
    investments into various family readiness requirements, we are postured
    to continue priority support to operating forces units and universal
    access to all for information and referral services. Specifically, the
    Marine Corps is continuing to leverage technology, such as eMarine for
    communication with over 285,000 subscribers, as well as other training
    and support webinars. Since implemented in April 2013, over 14,000
    registered users have participated in Marine Corps Family Team Building
    online courses, which include courses on stress management, anger
    management, and emergency preparedness. The Marine Corps will continue
    to tap into this technology and others to provide resources for our
    deployed and returning marines and families.
        Our Family Care programs provide programs that support the care and
    development of Marine Corps children from birth to their teens. Through
    our Children, Youth and Teen Programs (CYTP), the Marine Corps has
    served 33,621 children, youth, and teens in fiscal year 2013.
        We have more than 11,000 family members with special needs. In
    fiscal year 2013, 405,000 hours of respite care was reimbursed under
    the Exceptional Family Member Respite Care Reimbursement Program. This
    program provides respite care benefit for those marines whose family
    members have moderate to severe special needs. Our Exceptional Family
    Member Program coordinators will continue to work to partner with
    local, State, and private organizations to help marines and their
    families access the care and support they require.
     reawakening the soul of the corps through caring for our families of
                                   our fallen
        The Marine Corps Casualty Assistance Program remains committed to
    ensuring the families of our fallen marines are treated with the utmost
    compassion, dignity, and honor. The loss of a Marine is always
    difficult, especially for the family and we are always seeking to
    improve survivor assistance. Caring for the families of our fallen is
    not just an immediate challenge, but one that is long term. The Marine
    Corps Long-Term Assistance Program is a permanent resource for the next
    of kin, ensuring they receive sustained quality assistance from the
    Marine Corps.
        The Marine Corps Casualty Assistance Program is a 24 hour-per-day
    operation manned by marines and civilian marines trained in casualty
    reporting, notification, and assistance procedures. Our Casualty
    Assistance Calls Officers (CACOs) are responsible for notifying next-
    of-kin, assisting them with burial arrangements; applying for benefits
    and entitlements, obtaining reports of investigations, as well as
    assisting Survivors in contacting benevolent and philanthropic
    organizations. Our CACOs go through an initial training program
    followed up with continual training and assistance when needed. Shortly
    after the funeral, families are connected to representatives from the
    Tragedy Assistance Program for Survivors (TAPS). This nationally
    recognized provider, at no cost and available 24/7, provides our
    families a full range of support, crisis intervention, casework as well
    as, grief and trauma support.
    reawakening the soul of the corps through care for our wounded, ill and
                                    injured
        The Wounded Warrior Regiment (WWR) continues to function as a
    central pillar of the Marine Corps' pledge to ``keep faith'' with those
    who have served. Whether a marine is wounded in combat, suffering from
    a chronic unresolved illness, or injured in a training accident, the
    WWR stands ready to provide recovery care. For the Marine Corps,
    recovery care is not a process. Care coordinated through the WWR is
    soundly based upon an authentic relationship between staff and the
    marine and his or her family members. This bond allows all parties to
    be vested in a common purpose: ensuring the WII marine and their family
    members smoothly and successfully meet their identified goals.
    Ensuring Wounded, Ill and Injured (WII) Marines' Future Success
        History confirms that the majority of WII marines who receive care
    from the WWR will not return to duty. Knowing this, it is a paramount
    goal of the WWR to help WII marines reintegrate to their communities
    with the confidence to focus on their abilities and fully recognize
    that their best days are still to come.
        Following injury and case review, a WII marine's path to success
    typically begins with a Comprehensive Needs Assessment (CNA). The
    Marine Corps' Recovery Care Coordinators (RCCs) are assigned to WII
    marines (based upon case acuity) and are responsible for conducting
    initial and ongoing CNAs which are used to develop the Marine's
    Comprehensive Recovery Plan (CRP). Once the Marine's CRP is established
    with identified actions, the RCC begins coordination with all internal
    and external stakeholders to help the marine and family realize their
    goals. At any given time, there are approximately 1,000 marines (along
    with their family members) receiving the support of an RCC.
        A significant part of the CRP is employment and education support.
    To address this need, the WWR has a Transition Cell. Transition Cell
    Specialists, located at WWR Headquarters and Wounded Warrior Battalions
    at Camp Pendleton, CA and Camp Lejeune, NC, work with WII marines and
    families to assist them with the development of their career and
    education plans. Utilizing career assessment tools and leveraging the
    resources of Vocational Rehabilitation and Employment (VR&E)
    counselors, marines along with their WWR Transition Specialists,
    develop a plan to reach their career goals. Types of WWR transition
    assistance include: career exploration (employment, education,
    training, and entrepreneurship), resume development, education
    applications, interview skills, and coordinating Federal internships.
        The WWR does not utilize a ``fire and forget'' mentality. We
    recognize that most recently-transitioned WII marines will require some
    degree of continuing assistance. To address this requirement, the WWR
    continues to employ District Injured Support Coordinators at various
    sites (aligned with Department of Veterans Affairs Veterans Integrated
    Services Networks) around the country to provide face-to-face
    assistance when required. DISCs provide a multitude of services to
    include 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.
        Additionally, a key component of the WWR's transition assistance
    includes the provision of 90 days of post-service support to bridge the
    gap in services between DOD and VA during a WII Marine's transition.
    Focused areas of support include: Combat Related Special Compensation,
    Concurrent Receipt Disability Pay, housing, VA benefits, employment and
    education referrals, family support, and follow-on medical care
    (TRICARE, VA Healthcare). More than 1,800 marines have received or are
    currently receiving post-service support.
    Outreach and Staying Connected
        The Sergeant Merlin German Wounded Warrior Call Center is not a
    typical call center in purpose or function. It is an outreach and
    contact center that actively maintains contact with and tracks an
    assigned population of WII Active, Reserve, Retired and Veteran Marines
    throughout their life. It includes two Contact Centers at the Wounded
    Warrior Battalions (Camp Pendleton and Camp Lejeune), which track
    active duty WII marines who are recovering with their parent commands.
    While the Call Center averages 9,500 outreach calls per month to Purple
    Heart recipients, marines on the Temporary Disability Retirement List
    and marine veterans, it also allows the Marine Corps great flexibility
    to focus on specific emergent at-risk populations. For example, during
    natural disasters, such as last year's floods in Colorado or the
    tornados in Oklahoma, the Call Center conducted outreach to WII marines
    and families in those surrounding areas to provide information on
    relief efforts, emergency shelters, and food bank locations.
        The Call Center also serves as the WWR's center of activity for
    social media and rapid action polls. The social media capability
    (Facebook, Twitter, and mobile app) enables the continual flow of
    relevant care information to WII marines and families and the polls
    allow the Regiment to gain important feedback for program improvement.
    Future of the WWR: Care Continues
        Marines and their family members, Congress, and the public at large
    can be reassured that the Marine Corps, through the WWR, will continue
    recovery care in times of war and in peacetime. Irrespective of the
    global security environment, recovery care support must be enduring in
    view of issues resulting from the current decade of war: catastrophic
    injuries requiring massive amounts of acute care, traumatic brain
    injury, and psychological health problems. These conditions are not
    solved by short-term care and will require continuing services, an
    enduring commitment. Just as the Marine Corps is strategically agile
    and flexible, the WWR will endeavor to expand and contract depending
    upon requirements. The WWR will always stand ready to support marines
    who sacrifice for our Nation.
    reawakening the soul of the corps through caring for our marines in the
                                     fight
        Deployed support is one of the most important services we provide.
    Our Exchange, Recreation, Fitness, and Communication services boost
    morale and reduce mission-related stress.

             Exchange. Ongoing missions in Afghanistan include the
            operation of a Direct Operation Exchanges Tactical (DOX-T) at
            Camp Leatherneck, one Tactical Field Exchange at Living Support
            Area 13, and numerous Warfighter Express Services Teams (WEST)
            operating out of Camp Leatherneck. We also have two Marine
            Corps Exchange (MCX) Mobile Tactical Field Exchange (MTFE)
            Trailers, which can serve as fully functional retail stores.
            Equipped with a diesel generator, the MTFE can operate on site
            for up to 72 hours and can provide indefinite operations when
            accompanied with a resupply container and connected to
            municipal power. The trailer can be used to support tactical
            field exercises, disaster relief, and special events requiring
            retail support. The MTFEs are road-ready and are based at Camp
            Pendleton and Camp Lejeune.
             Recreation and Fitness. We provide sports,
            recreational, and fitness equipment to units throughout Helmand
            Province. This transportable equipment includes sports/
            recreation cooler kits filled with sports gear and board games,
            electronic game kits, Theater-in-a-Box kits, and functional
            fitness equipment for use in austere environments. Reading
            materials, both electronic and paperback, are also distributed.
            Our award-winning libraries provide online tools for research,
            recreation, and professional development. Several libraries
            offer private webcam meetings so families can stay connected
            with their deployed marines.
             Communication. Morale satellite services are available
            to deployed marines. We have delivered 13 small satellite
            communications systems to units in Afghanistan. Each system has
            two phones that provide 6,000 free minutes per month and five
            laptops that allow internet browsing, social networking, and
            chat/video capabilities to deployed marines.
              MCCS Amenity Wi-Fi Solution. The Marine Corps
            Community Services Amenity Wireless Fidelity (Wi-Fi) Solution
            program acquires, deploys, administers, and supports Wi-Fi
            capability at no-cost to marines and families. This morale and
            welfare initiative helps families stay in contact while
            separated from their marines. Wi-Fi is conveniently located on
            19 installations and 250 facilities such as, temporary lodging
            facilities, exchange food courts, libraries, education centers,
            child and youth centers, clubs, and wounded warrior program
            facilities.

        Marine Corps Morale, Welfare, and Recreation (MWR) activities
    support the readiness, resiliency and retention goals of marines.
    Semper Fit and Recreation programs align to support the social and
    physical well-being of marines and sailors, to encourage healthy
    lifestyles and enhance quality of life and to amplify the Marine Corps'
    focus on mission and readiness. The comprehensive strength and
    conditioning programs, High Intensity Tactical Training (HITT) and
    Aquatic Maximum Power--Intense Training (AMP-IT), serve to optimize
    physical performance and combat readiness for all Active Duty and
    Reserve marines. In 2013, ``For the Leathernecks'', a social recreation
    event, reached over 20,000 single marines, many of which recently
    returned from a deployment or training exercise. These shows enrich
    esprit de corps and unit cohesion to support the 21st century sailor
    and marine, and Marine Corps Total Fitness strategies. Semper Fit and
    Recreation expanded Operation Adrenaline Rush (OAR), which has reached
    over 8,000 marines since the pilot program began in fiscal year 2012,
    to 8 installations last year. OAR assists marines in reintegration
    after deployment by maintaining combat readiness, and reinforcing unit
    cohesion through high adventure outdoor activities like white water
    rafting, paintball, or rock climbing.
        The Marine Corps resale system is also pleased to support the
    physical and financial health of marines, sailors, and their families.
    Through a variety of programs related to the Secretary of the Navy's
    21st Century Sailor and Marine initiative, our resale system supports
    physical health. The Commandant recently issued a memorandum regarding
    alcohol sales. It instructs all Marine Marts adjacent to barracks to
    remove distilled spirits. Additionally, the memo limits alcohol sales
    times to 8:00 AM thru 10:00 PM, and dedicated floor space to no more
    than 10 percent of the total retail space. Another significant step to
    support 21st Century Sailor and Marine came in 2012 when MCX instituted
    tobacco price parity. This effort complements the initiatives that
    Semper Fit has taken in training and education of tobacco cessation.
    Further, MCX offers tobacco cessation items at cost for patrons as part
    of our value program, ``Xtreme Value.'' This program supports the
    financial readiness of marines and their families and offers items such
    as diapers, formula, baby food, bread, and milk at cost. Additionally,
    MCX offers a variety of both branded and private label products from
    clothing to cosmetics to electronics to toys to home furnishings to
    serve as a ``one stop shop'' for marines and families. Our Xtreme Value
    program offers the brands and products important to our customers at
    the best price possible. MCX is committed to supporting initiatives
    like the White House's Joining Forces Initiative to employ veterans and
    family members. As a member of the Military Spouse Employment
    Partnership Program, MCX helps to provide jobs to military family
    members who may be worried about finding a job at their next duty
    station. Currently, nearly 30 percent of MCX employees are military
    family members.
                       reawakening the soul of the corps
        During a time in which we, as a nation, have been continuously
    engaged in 12 years of fighting, we are doing so with a voluntary
    force. No other time in our country's young history have we fought this
    long. Less than half a percent of Americans voluntarily wear the
    uniform of one of our Military Services. These men and women have
    chosen to put on the cloth intuitively knowing the joy and sense of
    purpose that only comes through great challenges and subordination at a
    cause greater than themselves. These men and women--our neighbors,
    brothers and sisters, sons and daughters, and loved ones--know what it
    means to keep company with the finest men and women in a world under
    the toughest conditions. Living their lives right and to the fullest,
    while providing a vital function to society. Their sacrifices ensure
    the safety of not just communities, but the Nation, our lifestyle, and
    our liberties.
        A statement often attributed to our first Commander in Chief,
    perfectly sums up what this Nation is facing when it comes to their
    military, which I would like to leave with you today. ``The willingness
    with which our young people are likely to serve in any war, no matter
    how justified, shall be directly proportional to how they perceive
    veterans of early wars were treated and appreciated by our Nation.'' I
    say this to you today to reiterate that your decisions now will have an
    impact that will go well beyond these conflicts and the current men and
    women voluntarily serving. Uncertainty in whether they will be able to
    continue a career in the military due to drawdown; what services and
    resources will be available to them and their families when serving;
    and what will happen to any retirement when they get out----all are
    having an impact on our current force and the young men and women that
    will be considering serving in the future. We cannot jeopardize our
    liberty.

        Senator Gillibrand. Thanks to each of you.
        DOD has proposed a number of compensation and benefit-
    related proposals, although we have not seen the full details.
    They are basically a 1 percent pay raise for most military
    personnel rather than the 1.8 percent that would take effect
    under current law, 1-year pay freeze for general and flag
    officers, and a slight reduction in the growth of housing
    allowances over time. Essentially, servicemembers would pay 5
    percent of their housing costs out of pocket. A phased
    reduction by $1 billion of the annual direct subsidy provided
    by military commissaries, down from the current subsidy of $1.4
    billion. An increase in TRICARE enrollment fees and pharmacy
    co-pays and consolidation of the TRICARE health programs.
        Secretary Hagel testified a few weeks ago that the savings
    from these proposals would be reallocated to address readiness
    and modernization shortfalls. As I said in my opening
    statement, these proposals will be difficult for many of us on
    this subcommittee to support. I am particularly concerned that
    we are not waiting for the MCRMC, which is tasked with taking a
    comprehensive look at these benefits.
        This is for each of you to answer as you see fit. What will
    the impact of the changes be on our servicemembers, especially
    our lower enlisted troops and families? What are you currently
    hearing from the enlisted ranks? What are the biggest concerns
    about these cuts? How important is the commissary benefit, in
    particular, to our most junior servicemembers? Is there another
    way to deal with the commissaries? Will the enactment of these
    proposals harm recruiting and retention?
        Sergeant Major Chandler. Yes, ma'am. You wanted to spend
    some time with commissaries. To be quite honest, the
    commissaries have not been in the narrative until just
    recently, comparatively speaking to, for instance, retirement
    reform. There is a bit of conversation. I will tell you, like I
    said in my oral statement, it is not the most important issue
    from soldiers. We do hear more from family members. A lot of it
    was, in our case anyway, the publication called the ``Army
    Times'' which ran an article that said that there would be the
    closing of commissaries. That has never been the intention. I
    am sure that the Chief of Staff of the Army has already spoken
    to that fact for the Army.
        Obviously, there is going to be an impact for everyone,
    including our junior servicemembers, if we do roll back the
    cost savings from on average 30 percent to, say, 20 percent. It
    is going to have an impact, and cumulatively each one of these
    things will have an impact on our soldiers and families. I
    think that is fairly obvious.
        Our concern is there are things within the Defense Exchange
    Commissionary Agency (DECA), legislative issues and also policy
    issues, that I believe we can find some efficiencies which may
    offset some of the reduction in cost savings. For instance, the
    ability to use or sell generic items are a challenge. We cannot
    do that in the commissary. If I am a young soldier and I choose
    to go the commissary and the only thing I can buy is Green
    Giant or Hunt's brands, but I can go to Walmart and get Great
    Value and that is 30 cents less for a can of corn than it is in
    the commissary, there is a perception in some places where the
    value is not as high as we say in the commissary.
        Each of us sits on the DECA board of directors. There is a
    strategy in place to do a holistic review and to make some
    legislative proposals which will free up their ability to
    actually create a business model. I think many of us may not
    understand that the commissary is not in competition with
    anyone. You have to recognize how do you draw the folks that
    you serve into the commissary. I think one of those is to offer
    items which may be generics which generate the similar cost
    savings.
        I think we have some work to do, both legislatively and
    policy-wise. I understand because for the Army, this is truly
    about readiness. We pay about $400 million into the commissary
    to sustain the benefit, and that is $400 million we can apply
    to some other readiness need because frankly, for the Army, the
    most important thing is to have ready soldiers to do what we
    need to do and not send someone in harm's way untrained. You
    have to find that balance. We are in that position where we
    have to look at everything to find the savings we need.
        Chief Petty Officer Stevens. Senator, I think it is
    important that we first understand that the decisions to slow
    growth is not something, if we were given a choice, that we
    want to do. Given the fact that the slice of the pie is only so
    big, this is what we must do in order to maintain readiness. We
    are making some tough decisions and tough recommendations with
    regard to slowing of growth.
        How will that impact our people? I think it is fair to say
    that if, or when, it is all said and done, that their buying
    power will not be as good tomorrow as it is today. It will have
    some impact on their quality of life.
        We also recognize that there will have to be some slowing
    of growth in quality of life so we can hopefully recapitalize
    those monies into what we call quality of work areas because
    our sailors want to have a good quality of work. They want the
    people, the parts, the training, the things that they need day-
    to-day to do their job. In order for the Navy to be able to
    provide that to them, there is going to have to be some offset
    somewhere. We recognize that that is difficult, but we owe it
    to them to make sure that they have a good quality of life, a
    good quality of work, and in turn, they and their families will
    have, we hope, a positive and good quality of service.
        I have been asked many times, how do you think it will
    affect retention and enlistment? What I say is I do not know
    because every generation of sailor has their own reason for
    serving. Much of it is the same, but generation-to-generation
    there are some differences. Will it have a negative impact on
    recruiting and retention? It might, but I could not say that
    because I do not know. Will it have a positive impact? Probably
    not. It may stay the same. It may get a little bit worse, but
    it certainly is not going to increase retention or increase
    enlistment. We are going to have to shoulder that with our
    recruiting commands and with command leadership to encourage
    our people to come in and to stay.
        I agree with what Sergeant Major Chandler said with the
    commissaries. His comments are something that we have all
    talked about, and I can speak for myself when I say that I
    agree exactly with what he said on commissaries.
        Sergeant Major Barrett. I will not belabor exactly both
    remarks that the Sergeant Major of the Army and the Master
    Chief Petty Officer of the Navy (MCPON) have said.
        Ma'am, to go right to the very heart of your question,
    first of all, marines do not run around talking about what is
    on their mind in compensation, benefits, or retirement
    modernization. That is not on their minds. As I walk around and
    talk to the thousands of audiences, they want to know into
    whose neck do we put a boot to next. They want to know about
    what new equipment are we getting. Are we continuing to
    modernize? Just because the budget sucks, does that mean we are
    not going to get any more gear? Are we going to stay ahead of
    our competitors?
        The other thing they always ask about is they want to know
    about training. We are a force that has a bias for action, and
    we are a happy lot when we are deployed. Idle hands are not
    good in the Marine Corps. Keep us out there forward deployed
    just like our moniker tells us that is where we need to be.
    That is what is on their mind actually.
        I will tell you promotion and retention and money does
    eventually come up, but it is not in the top three. It is
    normally four, five, six, or seven.
        To get to the point about what the Sergeant Major and the
    MCPON already said, if we do not get a hold of slowing the
    growth, if we do not pay a little bit more attention to the
    health care that we so generously have received, wonderful
    packages--in my 33 years, I have never seen this level of
    quality of life ever. We have never had it so good. I say that
    point because if we do not get a hold of slowing the growth, we
    will become an entitlements-based, a health care provider-based
    Marine Corps and not a warfighting organization. If we do not
    step back and take a look at a 1 percent pay, that makes sense
    because our quality of life is good. Hey, you know what? Out-
    of-pocket? You know what? I truly believe it will raise
    discipline and it will raise it because you will have better
    spending habits. You will not be so wasteful.
        I do believe in the one TRICARE model because there will be
    savings, and there will be less administrative burden on those
    who have to perform all those things.
        Should there be some type of subsidy reduction to the
    commissary? Well, you already heard the Sergeant Major of the
    Army talk about it. I am sure there is a better model out
    there, but in the grand scheme of things, if we do not get a
    hold of this, it is going to impact our warfighting capability.
    It is going to impact our investment for the next challenge.
        Like I said, we might be done in Afghanistan, the people we
    are fighting, but they are not done with us, and we need to be
    more prepared for what is around the corner.
        Sergeant Major Cody. Ma'am, I think first I would set the
    stage for my comments because I certainly agree with all my
    fellow Service senior enlisted advisors, and believe me, we all
    do talk about this collectively as we think about the impacts.
        I want to be real clear that our airmen are not overpaid.
    This discussion we are having about compensation in the
    military is not because we feel they are overpaid. They have
    earned everything that they receive today, all service men and
    women and their families have. They have sacrificed for what
    they served for.
        I fully support our budget because at the end of the day, I
    would tell you if you want the real feedback from our airmen
    and their families of what they want, they do not want to have
    a conversation about compensation. They just want you to give
    us more money so we do not have to. That is the clear text if
    you want to hear what they would say.
        When Athena meets with their families, they are a little
    bit more vocal about this than the great men and women that
    actually put the uniform on only because they understand the
    commitment to serve and everything that you had articulated.
    They are going to fight in their Nation's war. They will go
    regardless. That is what makes them so special.
        Make no mistake about it. This has impact. But we have to
    do it. We have to slow the growth. It has to be constrained
    somehow.
        I will throw some demographics so you can put it in
    perspective. For our Air Force, about 70 percent of them have
    served 13 or less years. That is important to note because this
    is their whole life. 70 percent of our force. When you think
    about it, about 50 percent of our entire force is married with
    children or is single with a child. That is important too when
    you talk about compensation and how you think about these
    things.
        Just to throw a demographic at you so you will know, an
    average E-6 makes about $54,000 a year. That includes their
    basic allowance for substance, their housing, and their basic
    pay. Then you can take that all the way down to an E-1, which
    is about $23,000 a year. That is important to put in the
    spectrum of their lifestyle.
        Senator Gillibrand. Thank you.
        Senator Kaine.
        Senator Kaine. Thank you, Madam Chairwoman.
        Thank you for your testimony. Thank God for our enlisted.
    It is what we have asked you to do for the last 13 years. You
    have done it with a great spirit. But it is unlike anything,
    really, that we have had a precedent for in the country, and
    that means there are consequences to it, some of which we know,
    some of which we do not. But we have to be good stewards in
    meeting the consequences.
        I wanted to ask you a question. I think Senator King asked
    a question of the first panel when I was gone about
    credentialing of folks in service for their skills as they
    obtain them. This is something I am really interested in. I
    worry about the unemployment rate of the Iraq and Afghanistan
    era veteran, particularly the enlisted. Officers with college
    degrees have a little bit easier time. Some enlisteds have
    degrees, but generally the enlisted unemployment rate is the
    one that is a little bit higher.
        I continue to believe that part of the way we get at the
    unemployment rate is to get people credentialed for the skills
    they attain when they attain them with a credential that a
    civilian hiring officer understands. Recognizing that that
    civilian hiring officer--there is only a 1 percent chance that
    individual would have been in the military. I think we
    appreciate military service but often may not understand what
    it is that somebody brings to the table in terms of technical
    skill or leadership skill.
        Programs like the Soldier for Life program in the Army and
    others--and I know different branches are tackling it in
    different ways--that are trying to make sure that people get
    these civilian credentials are important.
        I would like to hear you talk about efforts within your
    branches on this or more broadly, the unemployment issues that
    are faced by enlisted servicemembers departing into a tough job
    market. Especially as we are drawing down in force, more will
    be departing, and we want to make sure that they get traction
    right away in a civilian workforce. Offer thoughts on that
    challenge, please.
        Chief Petty Officer Stevens. Senator, for the Navy, we have
    what is called Credentialing Opportunities Online (COOL)
    program. It is where you can go and sign up and begin to take
    advantage of these credentials that the civilian world offers
    and provides the Navy. You would take your skill set that you
    have. My example would be as an aviation structural mechanic.
    There are certain certifications that you need to do work on
    aircraft in the civilian world. You could go to this COOL
    program and you could begin the sign-up process and start to
    get your hours that you need and the signatures that you need
    and eventually get this credential. It transfers over into the
    civilian world, and we have had that in place for a while.
        We also recently implemented a process where a sailor, with
    the permission of their commanding officer prior to separation,
    if they know they are going to get out, can go to a vocational
    or trade school and start working on the certificates that they
    may need to work in that civilian sector job that would be
    equivalent to what they are doing in the Navy.
        So that, in conjunction with our Transition Assistance
    Program, as well as the CNO and I have talked about with our
    tuition assistance, when we look at how we can best use that,
    we want to encourage our sailors to take college classes that
    equate to what their job is in the Navy so that it not only
    makes them better at their job in the Navy but also makes them
    more competitive, should they decide to get out of the Navy at
    some point.
        We have some good programs in place, and I am happy with
    them. I believe we will continue to work on them.
        Sergeant Major Barrett. In addition, we have a transition
    readiness seminar, and we have touch points along the way. As a
    matter of fact, every young marine--the rank of lance
    corporal--is required to do this Marine Corps Institute course.
    It is an online course, and it is called Leading Marines.
    Attached to that course is a course called Your Readiness, and
    it was developed by our personal and professional development
    personnel that work at our Marine Corps University. That course
    teaches you how to start preparing yourself to leave the
    Service if that is what it is you decide to do.
        Then we have touch points along the way in the lifecycle of
    a marine, and as we get closer towards whether or not we are
    going to decide to stay in the uniform or get out of the
    uniform, within a 12-month period, you will go to a transition
    readiness seminar where you will have core training. The core
    training is conducted by those from the Department of Labor,
    from the Small Business Administration, and from the VA. As a
    matter of fact, the Troop Talent Act made credentialing a part
    of the core training that is given to every single marine
    before they leave. That way they can present and address what
    credentials they have that are equivalent to what is going on
    in the outside world.
        Also, part of that course is they have the career technical
    training track which assists marines with the certifications.
    Along with that, you have pathway training. You are going to
    decide whether you are going to go get a job when you get out
    of the Service, or if you want to go to college, or you want to
    get vocational tech or entrepreneurialship. Well, you got an
    opportunity now to go down that particular path you want to go
    down, and they will prepare you. You have personal and
    professional developing counselors that you can meet with
    before, during, or after all this training to ensure that you
    are completely set up for being prepared for when you decide to
    take off the uniform.
        Sergeant Major Chandler. Senator, I think all of our
    approaches are very similar. We have different programs within
    the Army and the Navy and the Marine Corps. Speaking for the
    Army, we put a lot of focus on the same program, COOL program.
        A success story for us is what we have going on at Joint
    Base Lewis-McChord in the State of Washington where we have
    partnered with trade unions. With the commitment of the soldier
    actually before they leave the Service, the union will have a
    job for them when they leave the Service. We have done a lot of
    work in pipefitting, in plumbing, in HVAC. We are expanding
    that at other installations, really trying to leverage both the
    community college and vocational and technical schools, along
    with the unions, to try and help young men and women who may
    not have made the decision to go back to college, that they can
    find a skill with the guarantee of employment upon graduation.
    In the Army's case, I think that is a part of the
    credentialing.
        Senator Kaine. Thank you very much.
        Sergeant Major Cody. I would only add we also do the
    credentialing online, but what we do a little unique in the Air
    Force too is we have what is called the Community College of
    the Air Force, and every career field is lined up to be able to
    earn a 2-year degree, technical degree associated with that
    career field. They can do that within their first enlistment.
    That means they do walk out with a tangible that we have
    already done the work to show that. We also have a partner
    program where they can take that with just over 50
    universities. It is an associate to bachelor program where they
    give them full credit and they walk as a junior into that
    college, and they can continue to pursue their under graduate
    degree. So, again, it helps. We have the credentialing
    programs. We are also working to make sure they have that
    ability to walk out with at least a 2-year degree and then
    potentially a 4-year degree.
        Senator Kaine. Thank you.
        Thank you, Madam Chairwoman.
        Senator Gillibrand. Senator King?
        Senator King. Thank you.
        Each of you heard the chair list the personnel changes. As
    you well know what they are, the 1 percent, commissaries. Do
    each of you support that proposal?
        Sergeant Major Barrett. The Marine Corps does, sir.
        Chief Petty Officer Stevens. Yes, sir, the Navy does.
        Sergeant Major Chandler. The Army does, sir.
        Sergeant Major Cody. The Air Force does, sir.
        Senator King. Thank you. I think it is important.
        Sergeant Major, your answer to Senator Kaine's question is
    one of the best answers I have ever heard to any question since
    I have been here. You were crisp and really, I thought,
    captured the essence of the dilemma.
        Nobody here wants to vote to cut pay or do anything else.
    The problem is we are in a zero sum world. The testimony we had
    from DOD 2 weeks ago was that this is a $2.1 billion a year
    proposition, $30 billion over 5 years, and that money will come
    right out of readiness if we do not make these changes. Is that
    your understanding?
        Sergeant Major Barrett. It absolutely will. Not only that,
    we are going to also have to start taking risk in
    infrastructure sustainment, facilities sustainment,
    restoration, and modernization, furniture, fixture, equipment,
    personnel support equipment. We do not want to go back to where
    we were in the 1990s and 2000s when we had to find $2.8 billion
    because we were living in poor facilities. We do not want to go
    back to those days.
        Senator King. Sergeant Major?
        Sergeant Major Chandler. Yes, sir. At the end of the day, I
    do not like this and it is a challenge. But it is what is
    necessary. We have to make sure as an Army that at the end of
    the day, the one thing we have to make sure, that our soldiers
    are trained and ready to answer what the Nation is going to ask
    us to do is going to trump the rest of the things we are going
    to do.
        We have the same challenges as the Marine Corps. We have
    these beautiful facilities that Base Realignment and Closure
    2005 round gave us. They are now going to be transitioning into
    the sustainment phase of their lifecycle. We made tremendous
    investments in modernization. We have to cut a lot of those
    programs or push them to the right so that we can build
    sustained readiness in the Army.
        A day lost of readiness of training is usually going to
    take you 2 days to gain it back. We have had a readiness
    deficit in the Army. Obviously, the Bipartisan Budget Agreement
    has given us some very limited--2 years is not a lot of time to
    rebuild some level of readiness, but in 2016, again with
    sequestration, we go right back in the tank. The only way to
    provide a ready force is to find those and make those difficult
    decisions that have to be made in order to get our soldiers,
    sailors, airmen, and marines trained.
        Senator King. I hope if we have to make those decisions,
    you will stand behind us.
        Sergeant Major Chandler. Yes, sir.
        Senator King. As far as 2016, I think it is really
    important to realize that what we have is a breathing space,
    not a solution, and that it is incumbent upon us to be thinking
    about 2016 and how we mitigate the impacts of the sequester now
    rather than waiting until it hits us about a year and a half
    from now. I look forward to working with you.
        Let me change the subject for a minute. We hear the term
    ``keeping faith'' with our troops and ``keeping faith'' with
    the people that are joining up. What does a young recruit
    understand about what they are signing up for? Do they think
    about retirement? Do they understand? Are they told? Is there
    anything in writing about what the benefits are?
        Myself, I feel that once somebody is in the Service, they
    have earned what they are entitled to and that any changes we
    should make should be prospective for people that have not yet
    signed up. If we had made some of those changes in the early
    1990s, we would be bearing the benefits of them now instead of
    trying to make them midstream. Talk to me about what a recruit
    thinks about when they are signing that paper.
        Sergeant Major Chandler. I can only speak for my own
    experience when I was 19 years old and joined the Army, and I
    was not thinking about compensation. I was actually thinking
    about going to Germany and being a tanker for a couple years
    and then leaving the Army and coming back to Massachusetts
    where I grew up.
        Senator King. My condolences on that. [Laughter.]
        Sergeant Major Chandler. Well, sir, you know. [Laughter.]
        We provide information to soldiers. They get a lot of
    information. They will get pamphlets. They will get brochures.
    Their recruiter will talk to them about the benefits of
    service.
        Now, if you take into fact that an average 19-year-old
    male--they are really not thinking, I think, in a long-term
    beyond ``what do I need to do in order to be able to get out of
    here and go do something else?'' We have some limited education
    on finances while they are in basic training, and we have
    opportunities for soldiers to learn about investments and so on
    while they are at their first duty location. There is a level
    of education about what you have earned. That is the best I
    have for you right now.
        Senator King. I want to get other thoughts. Is there a
    problem of recruiters making representations that are not in
    the documents? Is that an issue, Sergeant Major?
        Sergeant Major Barrett. Sir, we tell our recruiters,
    whatever you do when you go out there on the street with all
    those wonderful skills you have just been taught, do not think
    like a recruiter because the second you start thinking like a
    recruiter, you are going to try to qualify them. That is the
    wrong way to go about it. What you want to do is you just want
    to go out there and talk about it.
        I made some notes while the Sergeant Major of the Army was
    talking. You know, 0.4 percent of the Nation wears the cloth of
    one of these Services right here. This has been told to me time
    and time again when I have met with young marines. They do not
    want an easy life. They want to be tougher people. It is about
    pride of belonging and being part of something bigger than
    self. I hear that more than I hear anything else when I talk to
    a young person who, for the first time, was handed the eagle
    globe and anchor in their dirty little hands, and they grab
    that thing and they hold it tight. You see the tears just
    running down their face. They have just transformed. They just
    became part of that 0.4 percent of the Nation that is willing
    to put it on the line. That is what they talk about, the young
    people.
        Chief Petty Officer Stevens. I would say that there are
    many different reasons why young men and women enlist, but
    primarily that reason is a call to service. They think about,
    to some degree, the benefits, the pay, those sorts of things,
    but it is really about service more than anything else.
        I was in San Antonio, TX, at the hospital corps school not
    too long ago, and I thought I would ask a group of young men
    and women that were sitting in the room that question, and I
    was really surprised by the response. I said to them, how many
    of you, when you enlisted, thought that maybe you would make
    the Navy your career? Two-thirds of their hands went up.
        I look back to the time I came in--I will say it, 1983. If
    I had been asked that same question and you would have raised
    your hand, you would have probably been laughed at because most
    of us that came in then were just thinking 4 years and we are
    out.
        There is a little bit of a different thought process. I can
    just speak for this generation because I never asked that
    question to the two generations before me. It really is about a
    call to service more than anything else. But we should not
    misunderstand the fact that they do appreciate the benefits
    that they earn.
        Senator King. Thank you very much, gentlemen. You honor us
    by your presence here today. I appreciate it.
        Senator Gillibrand. Senator Hirono.
        Senator Hirono. Thank you, Madam Chairwoman.
        I add my thanks to all of you for testifying and for your
    service.
        It is good to know that the men and women who enlist and
    who want to serve our country do so out of patriotism and a
    deep sense of wanting to make a difference in what they do. We
    all realize it is just a small percentage of our population who
    answers that call. I like to think that we all do our part to
    make a difference, but the men and women who do serve need to
    be treated fairly. I know that that is what you are all about.
        I have a question for Master Chief Stevens. I understand
    that the Navy already evaluates its servicemembers on whether
    they foster an environment or atmosphere of acceptance and
    inclusion per your Equal Employment Opportunity policy. I would
    like your opinion on adding the criteria to evaluate an
    individual's ability and efforts at maintaining a command
    climate which will not tolerate or condone hazing, sexual
    harassment, sexual assault, and ensures all members of the unit
    are treated with dignity and respect.
        Chief Petty Officer Stevens. Senator, thank you for the
    question.
        The section of our evaluation performance that you
    mentioned where talk about command climate and command culture
    really does fold in what you just mentioned. We expect our
    leaders at every level to foster the very environment that you
    talk about, and they are graded on that. The expectations are
    that they do create that culture within the organization. We
    believe that everybody deserves an opportunity or actually that
    we should set the conditions where everybody has the
    opportunity to be successful and that everybody is treated with
    dignity and respect.
        We also recognize that we have work to do, and we are and
    have been and will continue to work on this very hard. But it
    is a part of our performance evaluation. You cannot be a
    commander out there and not foster a climate where people are
    treated with dignity and respect and expect that command to be
    successful. The success of that command is a large part of what
    they are evaluated on.
        Senator Hirono. The Navy already does that in its
    evaluations and for promotions and other decisions with respect
    to the individual. Do the other Services also use the command
    climate surveys or questionnaires for those purposes? Would
    anyone else like to respond?
        Sergeant Major Chandler. Yes, ma'am. We have a similar
    approach to the Navy, whether it is at the individual level
    through an evaluation report or through a unit level activity
    called a command climate survey that not only does the
    commander get those results, but now, as an Army, we have made
    that a requirement for the senior commander above the unit that
    has gotten the command climate survey to, in fact, be out-
    briefed on those results also. They set up an action plan from
    there.
        Senator Hirono. Do these surveys or these evaluations, are
    they made part of the commander's files, personnel files?
        Sergeant Major Chandler. From an Army perspective, the
    individual evaluation, whether that is an E5 sergeant all the
    way up to the Sergeant Major of the Army like myself--those
    evaluations are a part of their official record. That applies
    to our officer population through their officer evaluation
    report.
        The command climate survey has to be maintained on file for
    a certain specific period of time. It is really, from my
    perspective, the relationship between the senior commander and
    that commander who had gone through the survey to determine
    what is the plan of action to either improve or strengthen
    where the unit has reported there may have been some weaknesses
    or limitations within the chain of command.
        Sergeant Major Barrett. In the Marine Corps, ma'am, yes.
    First of all, the commanding officer is singularly responsible
    for everything that happens and fails to happen inside that
    unit. His or her sergeant major is responsible for the command
    climate. In the Marine Corps, you have the Defense Equal
    Opportunity Management Institute (DEOMI), and every single one
    of the DEOMI command climates will be seen by the next level
    chain above that commanding officer. The Commandant of the
    Marine Corps also has a command climate survey that is also
    done that the next commander will see exactly how well or how
    poorly that you are doing inside the command.
        Sergeant Major Cody. The Air Force, ma'am, is a part. The
    actual evaluation part is part of the initial feedback and
    follow-on feedback and in the report. They are monitored, and
    the survey itself is used up and down. Everybody has visibility
    to that. Anybody that reports goes back to that report, and if
    you fell into that report, meaning your activities influenced
    it, it will then be documented in your official record.
        Senator Hirono. Your surveys do cover the command climate
    with regard to areas such as sexual harassment, hazing. The
    factors or the areas that I mentioned.
        Sergeant Major Cody. Yes, ma'am.
        Sergeant Major Barrett. Yes, ma'am.
        Sergeant Major Chandler. There is a series of standard
    questions that all of the Services have to have in every
    survey, and then the commander has a choice of other questions
    that they can insert for their specific need. We all have a
    group of questions that are standardized that must be answered
    across the force, and they look at equal opportunity, sexual
    assault, command climate, those types of issues.
        Senator Hirono. Do those surveys undergo changes over time?
        Sergeant Major Cody. Yes, ma'am, they do.
        Senator Hirono. Are they updated?
        Sergeant Major Cody. They are. They are updated based on,
    in some cases, changes in the law of things that we need to
    consider. They are also updated based on the needs of the
    Services of things that we are seeing that we need to continue.
        Senator Hirono. Madam Chairwoman, I would like to request
    that all of our Services send to our subcommittee the latest of
    standard surveys and any modifications that are made to the
    surveys.
        Senator Gillibrand. If you could distribute that to each of
    the offices, that would be wonderful. Thank you.
        [The information referred to follows:]

        Sergeant Major Chandler. The Army uses a survey produced by
    the Defense Equal Opportunity Management Institute (DEOMI) to
    assess command climate. The survey is entitled DEOMI
    Organizational Climate Survey (DEOCS). The Army is currently
    working with DEOMI to append an Army specific module which will
    include 25 additional questions in four broad areas (work
    environment stress, unit resilience, quality of leadership, and
    well-being.)
        The DEOCS as used by the Army and the Army specific module
    will be provided, as requested.
        [Deleted.]

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Chief Petty Officer Stevens. Enclosed is a sample Defense
    Equal Opportunity Management Institute (DEOMI) Organizational
    Climate Survey, which is provided to each of the Armed Forces
    by the Office of the Under Secretary of Defense for Personnel
    and Readiness. The survey measures climate factors associated
    with equal opportunity and equal employment opportunity
    programs, organizational effectiveness, discrimination/sexual
    harassment, and sexual assault prevention and response.
        Commanders may add up to 10 locally-developed questions and
    5 short-answer questions to their survey, to assist in
    targeting specific areas of interest within the command. Since
    locally developed questions vary throughout the Navy, it would
    not be feasible to provide copies of every survey modified at
    the local command. As an alternative, I have also enclosed a
    copy of the Sample of Locally Developed Questions List.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Sergeant Major Cody. The attached Defense Equal Opportunity
    Climate Survey (DEOCS) version 4.0 is the latest standard
    command climate survey used in the U.S. Air Force. It is my
    understanding that all Services are using the same survey.
    Commanders can add up to 10 locally-developed questions and 5-
    short answer questions to the survey, helping them target
    specific areas of concern (see placeholder for questions 96 to
    110 on attached survey). Headquarters Air Force also has the
    capability of adding up to 10 locally developed questions to
    the survey to address seasonal Air Force-wide concerns. Any
    additional survey modifications must be requested and approved
    by the DEOMI (i.e., Defense Equal Opportunity Management
    Institute) Equal Opportunity Management Institute.
    Attachment:
        1. DEOCS Survey 4.0 [Deleted.]
        Sergeant Major Barrett.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Senator Hirono. I only have a little bit of time left, but
    I want to focus on the educational opportunities for our
    soldiers. The post-9/11 GI Bill has been an outstanding
    program. Many have taken advantage of this program. My question
    is do any of you provide an assessment of how the program is
    performing? Do you track student success, school performance,
    where the 9/11 GI benefits are used?
        Chief Petty Officer Stevens. Senator, if I could answer
    that question because I would like to use a personal example.
    My son, Shane Stevens, enlisted in the Navy and he did 4 years
    as a cryptological technician. During that 4 years, he used the
    Tuition Assistance (TA) program, and he received his bachelor's
    degree. Then he decided to separate from the Navy, and he went
    to the University of Florida or actually Florida State. He
    would probably kill me if I said University of Florida, but
    Florida State University where he used the post-9/11 GI Bill
    and received his master's degree while he was there and then
    subsequently went on to get hired by a very good company doing
    the same work that he did in the Navy. When I watched him go
    through that entire process with the education benefits that
    not just the Navy but that the military provides our young men
    and women, I saw it work firsthand and it worked very well for
    him.
        Senator Hirono. There have been some concerns particularly
    about for-profit colleges and universities that target veterans
    for high loan amounts and all that. I hope that there is a way
    that we can better track the experiences of our veterans.
        Is my time up? I am not sure.
        Senator Gillibrand. Your time has expired.
        Senator Hirono. Thank you. I could keep going.
        Senator Gillibrand. We all could.
        Senator Hirono. Thank you, Madam Chairwoman.
        Senator Gillibrand. Thank you all for your testimony. This
    has been invaluable in the deliberations we have to undergo in
    order to write the next national defense authorization bill. I
    am very grateful for your service and for your leadership and
    being a voice for the men and women who serve under each of
    you. Thank you very much. We are now adjourned.
        [Whereupon, at 12:15 p.m., the subcommittee adjourned.]

        [Questions for the record with answers supplied follow:]
               Questions Submitted by Senator Richard Blumenthal
                     workforce requirements and shortfalls
        1. Senator Blumenthal. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, a
    recurring theme I have heard from industrial leaders in Connecticut is
    that they are having trouble finding and recruiting a capable
    workforce. Our aerospace industry is a critical one--one that must be
    retained as a national security asset. I am also concerned with recent
    increases in the unemployment rate for veterans. According to the
    fiscal year 2015 budget proposal, there will be cuts in the size of our
    military. The Department of Defense (DOD) will return thousands of
    capable veterans to the civilian workforce. While each Service
    maintains its own transition-assistance programs to be made available
    to military personnel awaiting discharge, I understand that these
    programs focus on general workforce skills such as resume writing,
    professional dress, and interview processes. Please provide a summary
    of what is covered within each Services' transition assistance program.
        Lieutenant General Bromberg. The Army is committed to supporting
    our soldiers at all phases of the Soldier Life Cycle--initial entry,
    career service, transition, and retirement. The department's Soldier
    for Life program aids Army senior leaders fulfill this commitment by
    connecting soldiers to employment, education, health care, and retiree
    information and resources.
        All soldiers who serve 180 days or more on Active Duty in the Army
    are required by law and policy to complete training consisting of pre-
    separation counseling, the Department of Veterans Affairs (VA) Benefit
    Briefings, the Department of Labor (DOL) Employment Workshop,
    Individual Transition Plan (ITP), Military Occupational Specialty (MOS)
    Crosswalk-Gap Analysis, VA eBenefits registration, DOL Gold Card, 12-
    month post-service budget, continuum of military service opportunity
    counseling (Active component), Individual Assessment Tool, and job
    application package or job offer letter. If supported by their ITP,
    eligible soldiers can also complete a Career Track (education,
    technical, vocational, or entrepreneurial) and, if needed, complete the
    capstone event with a warm-handover to VA or DOL. Together, the
    Veterans Opportunity to Work (VOW) and Career Readiness Standards (CRS)
    prepare a soldier to transition from Active Duty.
        Beyond the training required by law and policy, soldiers may
    participate in career skills programs such as apprenticeship,
    credentialing, on-the-job training, job shadowing, and internship
    programs with national and international corporations and trade unions.
    With respect to assessing higher education opportunities, more than 500
    master level counselors and a 24/7 Virtual Counseling Center are
    available to support transitioning soldiers in this endeavor.
        Vice Admiral Moran. The Navy Transition Assistance Program (TAP)
    offers:

             a DOL Employment Workshop that provides information on
            resume building, job search techniques, and interview skills;
             a VA briefing on veterans' benefits;
             Navy briefings on post-military budgeting; and
            translation of military skills, training, and experience toward
            a civilian occupation;
             Individual training-tracks in assessing higher
            education and obtaining technical training to help meet future
            career goals and facilitate access to individual counseling
            services; and
             a Small Business Administration course that provides
            individual training in developing entrepreneurial skills.

        CRS, used to measure and assess each sailor's preparedness for
    transition, are reviewed at a Capstone Event approximately 90 days
    before separation, and may lead to referral for additional or remedial
    training, and a warm handover to partner agencies (e.g., VA, DOL), for
    sailors in need of additional assistance.
        Approximately 90 percent of sailors who have attended TAP agreed,
    or strongly agreed, that the program was beneficial in helping them
    gain information and skills needed to better plan for transition.
        In addition to delivery of TAP, the Navy refers sailors looking for
    employment and prospective employers to the Veterans Employment Center
    (VEC). The VEC is the Federal Government's single authoritative
    internet source for connecting transitioning servicemembers, veterans,
    and their families to career opportunities. The VEC allows employers to
    post job opportunities that will be visible to, and searchable by, job
    seekers, and to search servicemember profiles by keyword and/or
    geographic location.
        Lieutenant General Cox. TAP is a partnership between DOD, DOL, and
    VA.
        The overall goal is to provide separating/retiring servicemembers/
    families the information, skills, and resources needed for a successful
    transition to the civilian sector. TAP provides civilian career
    development, personal and financial wellness, and life skills to all
    separating/retiring airmen. Air Force is delivering transition services
    as a comprehensive, mandatory program that includes pre-separation
    counseling, a military-to-civilian skills review, VA benefits
    briefings, financial planning support, job search skills building, and
    an individual transition plan preparation which will aide in a
    successful transition into a career ready civilian. Air Force TAP
    features a 5-day workshop with further optional training tracks (Higher
    Education, Technical Training, and Entrepreneurship taught by the Small
    Business Administration) in addition to extensive one-on-one
    counseling. Air Force promotes preparation for separation or retirement
    to be inclusive of the family. Spouses are encouraged to participate
    with the airman in all facets of the TAP. In summary, TAP provides
    civilian career development, personal and financial wellness, and life
    skills to all separating/retiring airmen.
        Lieutenant General Milstead. Our Marine Corps Transition Readiness
    Seminar (TRS) is a week-long program that includes a mandatory
    standardized core curriculum (taught primarily by VA and DoL trainers)
    and introduction to four well-defined military-to-civilian pathways to
    be selected by the marine. Our marines also have the option to attend
    one of three additional 2-day tracks outside of TRS for more a detailed
    hands-on/in-depth application to assist with their individual elective
    pathway choices: (1) College/Education/University facilitated by Marine
    Corps personnel; (2) Career/Technical Training facilitated by Veterans
    Affairs staff; or (3) Entrepreneurship facilitated by the Small
    Business Administration.

        2. Senator Blumenthal. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, upon
    discharge, I understand that most military servicemen and women tend to
    either stay in place or return to their original home of record.
    However, in today's more mobile economy, it may make better sense for
    the veteran to consider a different location--an industrial cluster
    more accommodating to the years of experience they have gained from
    their years in service. For instance, a helicopter mechanic with 8
    years of experience working aboard an Army base who is seeking to leave
    Active Duty might be especially suited for work at Sikorsky. What
    mechanisms are in place to direct or target military personnel
    possessing specific occupational specialties, such as avionics or
    intelligence, to seek higher-level education or employment at existing
    industrial clusters better pertaining to their respective specialty?
        Lieutenant General Bromberg. Through the Army TAP, soldiers conduct
    a MOS Crosswalk which translates military skills, training, and
    experience to those skills recognized in the civilian sector and
    identifies gaps in their training or experience. Soldiers then may
    participate in career skills programs such as apprenticeship,
    credentialing, on-the-job training, job shadowing, and internship
    programs with national and international corporations, and trade unions
    to mitigate identified gaps. These programs afford soldiers the
    flexibility to transfer to other locations for a variety of reasons.
        Vice Admiral Moran. As a member begins the transition process, they
    are introduced to a wealth of information through a DOL Occupational
    Information Network (O*NET) website. Servicemembers can enter their
    military occupation, credentials, and experience into O*NET, which:

             directs them to States/municipalities with available
            employment opportunities aligned with their specific skills and
            chosen career path;
             identifies required or recommended qualifications; and
             provides the typical/average salary, based on the
            particular position.

        Lieutenant General Cox. The Air Force Credentialing On-Line (COOL)
    program, which will come online on 1 Oct 14, has an interface with the
    DOL O*Net to identify not only credentials tied to the airmen's Air
    Force jobs but to provide information on hot careers/employment trends
    at both the national and State levels. This includes a focus on areas
    of the United States that are expected to see an increase or decrease
    in job opportunities for various careers. It also provides information
    on required education for specific careers, median national and State
    salaries, and a job bank and list of job openings for each career. Base
    education counselors then advise airmen on educational programs that
    meet the airmen's career goals and help them determine the best program
    to meet their needs. This information, along with what is provided on
    COOL, helps airmen make informed decisions on what career to pursue and
    where they should relocate post-service.
        Lieutenant General Milstead. Our marines experience multi-layered
    exposure and informational support that complements their elective
    pursuit of higher education or employment in various occupational
    domains. They are introduced to apprenticeship and credentialing
    programs in initial training and throughout their occupational
    specialty career. These build on the marketability of their specific
    skills in the geographic areas that offer the greatest opportunities
    for those skills. Through our TRS, marines are introduced to advisors,
    guidance, and resources that can identify geographic locales and
    industry centers; DOL Employment Workshops; and utility of resource
    tools such as O*NET that offer employment opportunities and directions
    in various fields. Finally, each and every marine meets with his or her
    commanding officer, culminating their transition readiness preparation
    and counseling relative to their unique skills and choices of future
    pursuits. Because each marine is ``Once a Marine, Always a Marine,''
    our Marine Corps offers connectivity to opportunities across their
    Marine For Life cycle, beyond their service, as veteran marines.

        3. Senator Blumenthal. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, how do
    the individual Services ensure that every servicemember receives
    training, education, and credentials needed to successfully transition
    to the civilian workforce?
        Lieutenant General Bromberg. The Army requires all transitioning
    soldiers who have a minimum of 180 days of continuous Active Duty at
    the time of their transition to enroll in the Army Career and Alumni
    Program (ACAP). 12 months prior to transition, each servicemember is
    counseled by his or her chain of command on the mandatory transition
    requirements and the options available for a successful post-service
    transition. Commanders track transitioning soldiers as they progress
    through various programs, ensuring they have sufficient time to take
    full advantage of these services. By starting well before transition,
    soldiers can take full advantage of all ACAP services without
    interfering with duty requirements.
        Army transition efforts encompass multiple programs focusing on
    training, education, and credentials needed to successfully transition
    to the civilian workforce: VOW; CRS; Career Skills Program (CSP); and
    DOD Transition Goals, Plans, and Success (GPS) for the Total Force
    (Active and Reserve components); and COOL.
        Under the CSP, soldiers have the opportunity to enroll in
    apprenticeship, credentialing, on-the-job training, job shadowing, and/
    or internship programs with national and international corporations and
    trade unions.
        Also, there are two career tracks incorporated into a soldier's
    individual transition plan if training and education are one of their
    post service goals. With respect to training, the vocational/technical
    career track as part of the TAP offers soldiers the opportunity to
    develop or enhance their skills in a chosen field. Similar to the
    vocational/technical track, the accessing higher education career track
    pairs transitioning soldiers with certified education counselors so
    soldiers can make informed decisions about selecting the right academic
    institution and degree program of study to meet their needs.
        Additionally, the Soldier for Life program aids Army senior leaders
    to support transitioning soldiers by connecting them to employment,
    education, health care, and retiree information and resources.
        Vice Admiral Moran. Navy promotes education and credentialing
    opportunities at all stages of a sailor's service. Through education
    opportunities, including TAP, the Navy College Program for Afloat
    College Education and education voucher programs, sailors are
    encouraged to earn Navy-relevant degrees to enrich their career, and
    position them for successful transition to post-service employment.
    Sailors are also encouraged to obtain civilian licenses and credentials
    by leveraging TAP, COOL, and the United Services Military Apprentice
    Program (USMAP). Through these programs, Navy funds over 15,000
    civilian licenses and credentials awarded to over 7,000 sailors per
    year.
        TAP enables sailors to acquire additional knowledge and skills
    training for civilian credentials. The program funds Active Duty
    tuition costs of courses taken in an off-duty status at a college,
    university, or vocational/technical institution. TAP funds clock hour
    programs, which provide vocational education opportunities that enhance
    skills in technical career fields, and benefit sailors upon their
    eventual return to the private sector.
        COOL aids the transition from military service, enhancing the
    ability of veterans to translate their military training and experience
    to civilian jobs. The program informs sailors on what civilian
    credentials relate to their ratings, designators, and collateral
    duties/out of rate assignments, and how to obtain the credentials. It
    also lets sailors know how to fill gaps between Navy training and
    experience, and civilian credentialing requirements. These credentials
    may be required by law, or by prospective employers for entry into
    employment, and can lead to higher pay or improved prospects for
    promotion.
        USMAP provides sailors a vehicle to have their supervised practice
    observed and documented, via the DOL, allowing them the opportunity to
    achieve civilian apprenticeship requirements while on Active Duty. Many
    State licenses or industry credentials require this documentation as an
    apprentice, and USMAP affords them the opportunity.
        Through these combined efforts, Navy has led the way in helping
    sailors attain occupational certifications and degrees that benefit
    both the servicemember and the Navy.
        Lieutenant General Cox. Many of our initial training/technical
    schools provide civilian credentials upon graduation, such as several
    jobs in the IT career field. Thus, many airmen start their Air Force
    careers with a credential in hand. The Community College of the Air
    Force integrates civilian credentials into programs and awards semester
    hour credit toward degree completion. In addition, the Air Force will
    be launching its COOL program on 1 Oct 14. COOL provides detailed
    analysis of Air Force jobs and the various credentials that relate to
    them. The training for each enlisted career field is analyzed and
    matched with the most appropriate civilian credentials, for which COOL
    provides information on training, requirements, and related
    information. In addition, COOL and other voluntary education programs/
    counseling are being integrated into the Air Force Military Life Cycle
    through which airmen will be advised, at key touch points in their Air
    Force careers, on education, training, and credentialing programs
    available to them.
        Lieutenant General Milstead. As directed by our 35th Commandant's
    Planning Guidance and in alignment with the VOW to Hire Veterans Act,
    our Marine Corps transition assistance has been significantly revised
    and improved. The Marine Corps ensures that transitioning marines
    receive all mandatory VOW Act services, including pre-separation
    counseling, DOL employment workshop, and the VA benefits briefs I and
    II during our TRS. We concurrently guide marines in their
    accomplishment of corresponding CRSs. Marines must complete the TRS
    within 12 months of separation or within 24 months of retirement, but
    no later than 180 days prior to their separation or retirement.
        The Marine Corps has recently joined the Navy COOL program that
    helps marines find information on certifications and licenses related
    to their MOSs. COOL explains how marines can meet civilian
    certification and license requirements and provides links to numerous
    resources to help get them started. The COOL site is both a search tool
    and information source. Marines can find information on a specific
    credential by searching by MOS or by name of a specific credential or
    agency. Marines can also find general information on credentials and
    licenses, and on resources to help cover credentialing costs or work on
    an education plan. Currently, this program is in a soft rollout mode,
    with 10 MOSs available. Each month, 10 or more MOSs will be added to
    the site.

                               reserve component
        4. Senator Blumenthal. Lieutenant General Bromberg, Lieutenant
    General Cox, and Lieutenant General Milstead, the Services have an
    obligation to ensure that Reserve and National Guard components are
    able to maintain both their commitments to their national security
    missions as well as to their local communities, jobs, and families. I
    am increasingly aware of the problems plaguing our Reserve component
    due to homelessness and joblessness. As we continue to withdraw and
    demobilize the Reserve Forces, what is the plan for the overall
    stewardship of our military Reserve component to prevent these
    problems?
        Lieutenant General Bromberg. Transition from deployed service for
    Reserve component soldiers requires planning throughout a soldier's
    career. To this end, the Army provides soldiers assistance in creating
    an individual transition plan. These plans are executed in conjunction
    with unit training, supported through Army Force Generation and the
    Army Career and Alumni Program (ACAP).
        Six months prior to Reserve component soldiers' transitions, the
    Army conducts workshops, briefings, and required counseling. Available
    individual training courses for transitioning soldiers are: financial
    preparedness; new career preparation; knowledge, skills, and abilities
    assessment; translating military to civilian skills; interview
    techniques; dress for success; evaluate and negotiate job offers; and
    continuing education. The Army also offers training, certification,
    credentialing, and licensing programs in partnership with industry and
    trade organizations. Soldiers with pending disability determinations
    complete the disabled transition assistance, as necessary. The Army
    also offers various services for 6 months following transition,
    including support with employment searches, job fairs, and seminars on
    starting a new business.
        To ensure success for transitioning soldiers, commanders are
    responsible for ensuring soldiers begin transition education and
    assistance no later than 12 months prior to separation. If a soldier's
    leadership does not provide the time to begin the transition process,
    soldiers should exercise their chain of command's open door policy, in
    order to address their issue.
        Ultimately, Army leaders are charged with the responsibility of
    setting a command climate where soldiers know they are valued and are
    career and/or education ready as they transition to civilian life.
        Lieutenant General Cox. The Air Force takes the health and well-
    being of all our members very seriously. There are many resources
    available to assist our members with personal and family preparedness
    such as Airman and Family Readiness (A&FR), Military OneSource, and the
    Air Force Reserve Wingman Toolkit, as well as the Air National Guard
    Ready54. These programs are there to assist members and families with
    identifying and clarifying needs, to determine appropriate forms of
    assistance, and to provide linkage to appropriate national, State, and
    local resources.
        With regard to homelessness, that is a greater issue with those who
    are no longer in the Service and would be better answered by the VA. As
    far as joblessness, the Office of the Secretary of Defense has put into
    place programs such as the Transition GPS, Yellow Ribbon and
    Reintegration Program, Employer Support Guard Reserve, and Hero2Hired
    to assist Reserve component members with transitions and civilian
    employment. In efforts to ensure the health of the Force before,
    during, and after deployment, the Air National Guard is focusing on
    resilience training and messaging under the construct of the Air Force
    Comprehensive Airmen Fitness and the Total Force Fitness Framework. The
    Air Force goal is to raise awareness as well as an understanding of
    community resources and how to access them, making it easier for
    members to seek help early for employment, finances, and/or homeless
    concerns.
        Additionally, A&FR provides support to members and families in
    achieving short- and long-term employment, education/training, and
    career goals. Employment skills counseling (including resume writing,
    interviewing, and negotiation) is provided to members to help prepare
    for local and long-distance job searches and resources for self-
    employment, small business, and entrepreneurial efforts. The Reserve
    component ensures services are available to all personnel in accordance
    with host/tenant agreements and to those geographically separated. A&FR
    personnel are also trained to provide basic financial management and as
    part of the Joining Community Forces efforts. A&FR personnel are
    working to build community capacity leveraging all available resources
    within a State to support military members and their families.
        Lieutenant General Milstead. Our marines train and prepare for
    their transition readiness across the continuum of their service. They
    learn to translate their warfighting skills into marketable civilian
    skills and employment opportunities through academic pursuits and the
    use of apprenticeships and credentialing. All of our marines, Active
    and Reserve, receive all mandatory VOW to Hire Veterans Act transition
    requirements. They also receive support in achieving their individual
    CRSs through our TRS. Meeting with their commanding officers before
    their transition, each marine verifies their training and preparedness
    for a successful return to our communities. Our daily stewardship of
    our fellow marines, as a Total Force, is that which defines us as
    marines--the exercise of the tenets of our ethos of Keeping Faith and
    Once a Marine, Always a Marine. We return quality citizens to our
    Nation as Marines For Life, and our Corps welcomes and offers continued
    connectivity to education and employment services and opportunities to
    our fellow marine veterans.
        Recognizing that Reserve marines face reintegration concerns in
    addition to those of transition, the Marine Corps uses the Yellow
    Ribbon Reintegration Program (YRRP) and its suite of resources and
    information to address the challenges of returning to families,
    friends, communities, and employers. Marines and their families
    participate in YRRP events before, during, and after deployments to
    learn about benefits, entitlements, community resources, and support
    networks to their local area.
                                     ______

                 Questions Submitted by Senator Mazie K. Hirono
                     incorporating command climate surveys
        5. Senator Hirono. Lieutenant General Bromberg, General Moran,
    Lieutenant General Cox, and Lieutenant General Milstead, how could
    command climate surveys be best used for command selection boards and
    promotion boards to make sure that we are promoting and placing the
    right people in command?
        Lieutenant General Bromberg. Currently, the command climate survey
    is used as a leadership development tool. Commanders must be afforded
    the opportunity to learn and further develop their leadership skills
    based on the results of command climate surveys. This tool offers
    commanders at lieutenant colonel and colonel-levels and their raters a
    perspective of their own leadership styles and effectiveness from the
    points of view of subordinates, peers, and superiors. The results of
    these assessments are used to identify leadership characteristics and
    to facilitate counseling, correction, and improvement of weaknesses, as
    well as reinforcement of leadership strengths. The results of such
    assessments must be treated with confidentiality to ensure honest and
    accurate input. A promotion or command selection board may have a
    difficult time putting the results of a command climate survey (a non-
    attribution opinion poll in essence) into a fair context.
        Any single climate survey won't identify trends and, when taken in
    the first 30 to 60 days of command, may be more influenced by the
    previous commander. The commander's initial command climate survey
    (DEOCS) is just one part of the climate assessment and should be used
    as the basis to identify improvement or decline within subsequent
    assessments. This history of survey results, along with other climate
    assessment tools, can be used by raters and senior raters on evaluation
    reports which require rating officials to assess how the rated soldier
    meets the commitments of fostering climates of dignity and on adhering
    to the principles of the Sexual Harassment/Assault Response and
    Prevention (SHARP) program in their daily activities. This assessment
    on the soldier's evaluations report communicates to promotion and
    selection boards the result of climate surveys in context with other
    assessment tools over a period of time.
        Vice Admiral Moran. In August 2013, I directed, via change to my
    instruction on the Navy Performance Evaluation System, that reporting
    seniors use command climate surveys to rate/comment on efforts by
    individual members on the quality of results in fostering a command and
    workplace environment conducive to the growth and development of
    personnel. Rating officials are required to include this rating/comment
    in fitness reports and evaluations on commanding officers, executive
    officers, command master chiefs, department heads, division officers,
    chief petty officers, and leading petty officers who are responsible
    for assigned personnel. Since these fitness reports and evaluations are
    part of a member's Official Military Personnel File, the results of
    command climate surveys are now an element in command and promotion/
    advancement selection board deliberations.
        Lieutenant General Cox. Command selection and promotion boards
    determine the most qualified persons to command and serve in the next
    higher grade. The boards review each officer's evaluations,
    decorations, and training reports, scoring each record on its own
    merit. Organizational climate surveys, and more importantly, the
    officer's actions to cultivate a climate of dignity and respect are
    performance factors discussed and documented during mandatory feedback
    sessions. At the end of the evaluation period, the officer's
    performance is described on the performance report and incorporated
    into the officer's permanent record. Though neither the climate surveys
    nor the feedback forms become part of the permanent record, the
    officer's performance with respect to the unit climate and feedback
    sessions is reflected in the evaluations for command selection and
    promotion boards to consider. This is the most appropriate use of
    climate surveys and feedbacks, as it permits the officer to take
    assertive action to enhance their unit's climate and job performance.
        Lieutenant General Milstead. Command climate survey data can best
    be used in command screening boards (non-statutory) to enhance
    situational awareness of Corps-wide issues in an effort to
    appropriately assign commanders that will be effective in setting the
    appropriate environment. Due to the statutory and regulatory
    constraints on officer promotion boards, 10 U.S.C. 615 and DODI 1320.14
    respectively, the results of command climate surveys are not permitted
    into officer promotion boards for consideration as they do not
    constitute part of the official record. Further, any such material, if
    deemed to have merit for submission into the boardroom, requires
    Service Secretary approval.

        6. Senator Hirono. Lieutenant General Bromberg, General Moran,
    Lieutenant General Cox, and Lieutenant General Milstead, what is your
    opinion on how command climate surveys can be better used to improve
    the environment of a unit, as well as debriefing the crew and the
    commander about the results, to foster a culture of dignity and
    respect?
        Lieutenant General Bromberg. Command climate surveys are one
    important component of a command climate assessment. The surveys help
    commanders establish and maintain a positive command climate which in
    turn fosters a culture of dignity and respect. The surveys cover a
    range of topics including discrimination, sexual harassment, hazing,
    and quality of leadership. The results of the surveys highlight areas
    of concern that commanders can act upon. After receiving survey
    results, commanders can use other tools to provide depth and clarity,
    such as interviews, focus groups, and staff assistance visits.
    Debriefing the soldiers under their command allows the soldiers to
    better understand any issues confronting their unit and to give a voice
    for potential solutions.
        Vice Admiral Moran. The Defense Equal Opportunity Management
    Institute (DEOMI) Organizational Climate Survey (DEOCS) is a
    commander's management tool that allows them to proactively assess
    critical organizational climate dimensions. Each commander is able to
    tailor a total of 15 questions, 10 locally developed and 5 short answer
    questions unique to their own command to assess their individual
    command climates.
        Navy uses the DEOCS, along with focus groups/interviews,
    observations, and review of records/reports as part of the command
    climate assessment process. Upon completion of an assessment, results
    improve the overall unit when commanders share these findings with
    their personnel, with a great deal of transparency. By doing so, the
    commander is creating an environment where his or her personnel
    realizes that command leadership have heard their concerns and takes
    this feedback seriously; creating unity and fostering respect and
    dignity within the command.
        Additionally, Navy policy directs commanders to conduct a face-to-
    face debrief with their Immediate Superior in Command on the results of
    command climate assessment. This process provides the Immediate
    Superior in Command an opportunity to mentor the commander. Effective
    July 31, 2013, the Immediate Superior in Command now automatically
    receives a copy of the subordinate's command climate survey results.
        Lieutenant General Cox. The results from a command climate survey
    can be used to improve the environment of the unit by making the
    process as transparent as possible for unit members, ensuring a public
    commitment from the commander to make needed improvements. Comparing
    initial assessment results with what is obtained 1 year later would
    show the commander and the organization any progress that was made,
    motivating individuals towards continued efforts in optimizing their
    climate. Recognizing that command climate is impacted by a span of
    human relations factors and ensuring those who advise commanders on
    their climate are adequately trained and equipped to respond to issues
    identified through the survey, would enhance the survey process
    significantly.
        Lieutenant General Milstead. Command climate surveys are management
    tools for commanders to proactively assess critical organizational
    climate dimensions that can impact the organization's mission. They set
    requirements and oversight measures to ensure appropriate actions
    address the concerns of unit members is appropriate. In September 2013,
    enhanced oversight measures were implemented for all command climate
    surveys. Today, all Marine Corps command climate surveys require
    commanders to develop action plans to address deficiencies identified
    in the report. All action plans must be approved by the commander's
    next higher level leadership. This process ensures responsibility and
    accountability for all levels of leadership. With regards to debriefing
    members of the command, the Marine Corps will require commanders to
    brief their unit members on the results of their assessments along with
    the plan of action once it has been approved by the next higher level
    leadership. This policy change will help to ensure members of the
    command receive necessary feedback enhancing a greater sense of trust
    in leadership and commitment to the organization.

            officer performance reports and officer fitness reports
        7. Senator Hirono. Lieutenant General Bromberg, General Moran,
    Lieutenant General Cox, and Lieutenant General Milstead, does your
    respective Service have the ability to ascertain and record whether or
    not a servicemember promotes an atmosphere free of sexual harassment,
    sexual assault, and hazing?
        Lieutenant General Bromberg. Yes, Army senior leaders are confident
    that good leadership is critical to any solution and is paramount in
    creating a climate free from sexual assault, sexual harassment, and
    hazing. To assess our leaders, the Army utilizes the DEOCS. This survey
    helps to provide a complete perspective of the organizational
    effectiveness and readiness of units. Company commanders conduct
    organizational climate assessments 30 days and 6 months after taking
    command, then annually thereafter. All other command levels must
    conduct assessments within 60 days of assuming command and annually
    thereafter. After the commanders receive the results of their command
    climate assessments, they are required to complete a debrief with the
    next higher level commander and develop command action plans to address
    the areas of concern noted by the assessments.
        Additionally, the Army now requires new elements in the Officer
    Evaluation Reports (OER) and Noncommissioned Officer (NCO) Evaluation
    Reports (NCOER). As of September 2013, rating officials must assess
    officers and NCOs on how the rated soldier meets the commitments of
    fostering climates of dignity and respect and on adhering to the
    principles of the SHARP program in their daily activities.
        Vice Admiral Moran. Yes, the Navy has measures in place that
    provide the ability to ascertain and record whether or not a
    servicemember promotes an atmosphere free of sexual harassment, sexual
    assault, and hazing. As of August 2013, sailors are accountable on
    every evaluation or fitness report for contributions to Command or
    Organizational Climate/Equal Opportunity and Military Bearing/
    Character. To achieve high marks in these areas, sailors must
    demonstrate how they have cultivated or maintained command climates
    where discrimination, sexual harassment, sexual assault, hazing, and
    other inappropriate conduct is not tolerated; where all personnel are
    treated with dignity and respect; and where professionalism is the
    norm.
        Lieutenant General Cox. On January 1, 2014, our Air Force
    implemented policy charging all airmen with the responsibility to
    cultivate a positive climate of dignity and respect, free of sexual
    harassment, sexual assault, hazing, and other acts and conditions
    detrimental to good order and discipline. Additionally, our Air Force
    utilizes tools like the climate survey and numerous internal agencies,
    including the Sexual Assault and Response Coordinator, the Inspector
    General, the Equal Opportunity Office, Security Forces, and the chain
    of command, for airmen to report incidents of adverse behavior or toxic
    environments. Once reported to an agency or identified in the survey,
    commanders are required to assess the information and take appropriate
    action, including investigating, prosecuting, and annotation in the
    offender's permanent record.
        Further, our policy requires discussion and documentation of
    organizational climate during every airman's mandatory feedback
    session. Also, supervisors at every level are to consider subordinate's
    actions to promote a climate of dignity and respect when completing the
    airman's performance evaluation which will become part of the airman's
    permanent record.
        Lieutenant General Milstead. Yes. Each marine's reporting senior
    officer completes a fitness report at least annually that evaluates the
    marine's ability to carry out his or her mission, which, for officers,
    includes establishing and maintaining a command climate that is
    intolerant of misconduct (such as sexual harassment and hazing) and
    criminal behavior (such as sexual assault). The fitness report
    considers an officer's performance across a variety of parameters that
    contribute to command climate: mission accomplishment, individual
    character, leadership, and intellect. The leadership section (Section
    F) in particular evaluates an officer's ability to set an example;
    communicate effectively; provide direction; and develop, lead, and
    ensure the well-being of subordinates. It also allows reporting seniors
    and reviewing officers to comment on each of the SAPR Lines of Effort.
        In addition, the Commandant of the Marine Corps approved in April
    2014 an addendum to the SAPR Campaign Plan that directs an update to
    the Performance Evaluation System Manual to reflect an evaluation of
    the commander's ability to set a command climate that is non-permissive
    of misconduct, especially sexual assault. We are currently in the
    planning stages of this initiative.
        The Marine Corps is committed to holding officers accountable for
    command climate, and we have provided our senior officers with the
    tools to continually (not just once a year) ascertain that their
    subordinate officers are performing as expected in terms of sexual
    assault prevention and response. For example, results of the DEOMI and
    the internal Commandant of the Marine Corps command climate surveys--
    which are conducted when a new commanding officer assumes command and
    at least annually thereafter--are reported up the chain of command. The
    chain of command also is notified of each report of a sexual assault
    within subordinate units. Senior officers are continually and
    proactively ensuring that all servicemembers are doing all they can, as
    best they can to create a respectful, safe Corps for each and every
    marine.

        8. Senator Hirono. Lieutenant General Bromberg, General Moran,
    Lieutenant General Cox, and Lieutenant General Milstead, what is your
    opinion on adding criteria to evaluate an individual's ability and
    efforts in maintaining a command climate which will not tolerate or
    condone hazing, sexual harassment, sexual assault, and ensures all
    members of the unit are treated with dignity and respect?
        Lieutenant General Bromberg. Army senior leaders are confident that
    good leadership is critical to any solution and is paramount in
    creating a climate free from sexual assault, sexual harassment, and
    hazing. To this end, we have implemented changes to the evaluation
    process to ensure leader accountability for creating positive command
    climates, which ensures leaders take action to eliminate behaviors and
    attitudes that may lead to sexual harassment and sexual assault.
        The Army now requires new elements in the OERs and NCOERs. As of
    September 2013, rating officials must assess officers and NCOs on how
    the rated soldier meets the commitments of fostering climates of
    dignity and respect and on adhering to the principles of the SHARP
    program in their daily activities.
        Vice Admiral Moran. The Navy fully supports adding criteria to
    evaluate an individual's ability and efforts in maintaining a command
    climate which will not tolerate or condone hazing, sexual harassment,
    sexual assault, and ensures all members of the unit are treated with
    dignity and respect. A change was announced to the Navy performance
    evaluation system on August 28, 2013. Every sailor is accountable on
    every evaluation or fitness report for contributions to Command or
    Organizational Climate/Equal Opportunity and Military Bearing/
    Character. These changes are viewed as complementary and synchronized
    with the command climate survey outcomes provided to commanding
    officers and immediate superiors in command. To achieve high marks in
    these areas, sailors must demonstrate how they have cultivated or
    maintained command climates where improper discrimination of any kind,
    sexual harassment, sexual assault, hazing, and other inappropriate
    conduct is not tolerated; where all hands are treated with dignity and
    respect; and where professionalism is the norm.
        Lieutenant General Cox. It has always been the duty of every airman
    to positively contribute to a healthy organizational climate by being a
    good wingman, adhering to, and enforcing standards, not allowing any
    action that is harmful to the good order and discipline of the unit,
    not tolerating sexual assault and harassment or any type of
    discrimination, and of course, building an environment based on a
    foundation of dignity and respect. In January of this year, we
    implemented policy to hold all airmen responsible to maintain a climate
    of dignity and respect. During mandatory feedback sessions, supervisors
    at every level are to discuss and document subordinates' actions to
    promote and maintain a positive organizational climate and to consider
    those actions when preparing evaluations. Additionally, we enacted
    policy to specifically hold commanders accountable for cultivating an
    environment of dignity and respect within their units. These policy
    modifications reinforce our responsibility for organizational climate
    and ensures it is discussed during feedback and considered on every
    airman's evaluation.
        Lieutenant General Milstead. In April 2014, the Commandant of the
    Marine Corps approved an addendum to the Marine Corps SAPR Campaign
    Plan that directs our Performance Evaluation System Order be updated to
    reflect an evaluation of a commander's ability to set a command climate
    that is non-permissive of misconduct and especially the crime of sexual
    assault. The Commandant of the Marine Corps has directed, in this
    rewrite in particular, a specific directed comment within the
    commander's fitness report that can be discussed in detail within
    multiple subsections of the fitness report ranking system. Because this
    information is briefed to a board (promotion, selection, et cetera), it
    is incumbent upon members of the board to address future command
    potential and implications for continued future service. We expect this
    task to be completed this year.
                                     ______

                 Questions Submitted by Senator Lindsey Graham
                     freezing general and flag officer pay
        9. Senator Graham. Sergeant Major Chandler, Master Chief Petty
    Officer Stevens, Chief Master Sergeant Cody, and Sergeant Major
    Barrett, what effect do you think freezing general and flag officer pay
    will have on morale?
        Sergeant Major Chandler. The 1-year pay freeze for general and flag
    officers will have negligible effect on the morale of the force. Aside
    from this affected population, overall, the majority of the force will
    be receiving the 1 percent pay increase as part of the attempt to slow
    the growth of military compensation costs and return critical funds
    needed for sustaining training, readiness, and modernization.
        Chief Petty Officer Stevens. It is my perception that freezing
    general and flag officer pay could have a negative impact on the morale
    of the force. More specifically, it could foster uncertainty and create
    a precedent for future pay freezes affecting the rest of the force.
    This in turn could have a negative effect on morale, recruiting, and
    retention. It is also possible that much of the force will recognize
    such a freeze as a symbol that our most senior leaders are sharing some
    of the pain felt by the troops, on whom any other reductions or cuts
    tend to have a more significant effect.
        Sergeant Major Cody. I feel airmen will see this as their senior
    leaders leading from the front. If airmen are going to receive smaller
    pay raises in fiscal year 2015, then it is good to see our general
    officers ensuring they are not exempt and in fact not even receiving a
    pay raise in fiscal year 2015.
        Sergeant Major Barrett. I believe that a pay freeze for general and
    flag officers in 2015 will send a positive message to all
    servicemembers that the general and flag officer community is doing its
    part in this austere budget environment.
        However, I do have concerns as to how long this freeze may
    continue. Our general and flag officers carry a tremendous work load
    and shoulder immense responsibility. In order to maintain the high
    quality of general and flag officers that currently fill our ranks,
    measures must be implemented now to ensure this freeze is temporary.
    Not doing so could de-incentivize future leaders from inspiring to take
    on such responsibilities.

                        pay and benefit budget proposals
        10. Senator Graham. Sergeant Major Chandler, Master Chief Petty
    Officer Stevens, Chief Master Sergeant Cody, and Sergeant Major
    Barrett, the President's budget includes proposals to slow the growth
    of base pay; to reduce basic housing allowances by 5 percent; to reduce
    average commissary savings from 30 percent to 10 to 15 percent; and to
    implement new and higher TRICARE fees and co-pays. If adopted, what
    would be the impact of the President's proposals on compensation and
    benefit changes to the long-term sustainability of the All-Volunteer
    Enlisted Force?
        Sergeant Major Chandler. The Army supports a holistic and
    comprehensive approach that reforms military compensation in a fair,
    responsible, and sustainable way. Changes to military compensation
    included in the fiscal year 2015 budget request--which include slowing
    the growth of housing allowances, reducing the annual direct subsidy
    provided to military commissaries, and simplifying and modernizing our
    TRICARE health insurance program--are important first steps that
    generate savings while retaining competitive benefits. These savings
    will be invested in readiness and modernization.
        Chief Petty Officer Stevens. In comparing military compensation to
    the civilian work force, it is likely the Navy will remain a
    competitive option for those interested in joining the All-Volunteer
    Enlisted Force.
        In 2012, the average E5, with less than 6 years of service, earned
    $52,000 annually--including basic pay, basic allowance for housing, and
    basic allowance for subsistence but not including special and incentive
    pays or savings from commissary and TRICARE--which equaled the median
    U.S. household income.
        Under the President's budget, sailors will continue to receive a
    discount when using the commissary, and medical care will remain free
    for Active Duty members. Even by slowing the growth of basic pay,
    reducing the average commissary savings, and implementing new and
    higher TRICARE fees, Navy may likely remain an attractive employment
    option.
        There are many factors that effect a sailor's decisions about
    joining and remaining in the Navy; including service to country, pay
    and compensation, retirement, education, family obligations, and
    civilian employment opportunities. History has shown that each
    generation will ebb and flow with the economy's changes, and while our
    current sailors are braced for impact, they are not excited about them.
    Sailors understand these changes are necessary to sustain our Navy, and
    our Navy's future generations. The reality is it will be very difficult
    to predict how these pay and compensation changes will affect our
    sailors; we don't know how these changes will impact the retention and
    recruitment of our All-Volunteer Enlisted Force.
        I am, however, certain of this: changes to pay and compensation
    will not likely have a positive effect on our current Force. More than
    likely, these changes will have some degree of a negative impact, but
    there is always a possibility the changes could have no impact at all,
    especially for newly enlisted sailors who have not yet had to
    experience any sort of change.
        It is understood that Navy assumes risk with these budgetary
    changes, and while they are necessary to better-balance sailors' needs,
    they will also ensure our Navy remains forward and ready--where it
    matters, when it matters.
        Sergeant Major Cody. The Air Force continues to experience strong
    retention, which demands force management programs to keep the force
    within the fiscal year 2015 President's budget end strength. However,
    we continue to also experience manning and retention problems in
    certain career fields, such as cyber, intelligence, Special Operations
    Forces, and battlefield airmen, and thus investment in special and
    incentives pays is essential to retain airmen with the proper skill and
    experience levels to protect warfighting capability. As we move forward
    with these necessary compensation reforms, we will continue to monitor
    recruiting and retention trends and employ special and incentive pays,
    as needed. Ensuring our airmen have the best training and equipment is
    critical to our readiness and also impacts retention. As the Chairman
    of the Joint Chiefs stated on the record, ``today's readiness problem
    will become tomorrow's retention problem.''
        Sergeant Major Barrett. The compensation proposals put forward by
    the President slow the growth in military compensation in order to
    strike a balance between personnel costs, training, and modernization
    that protects readiness. This balance will preserve the quality of our
    All-Volunteer Force while ensuring readiness to execute the President's
    Defense Strategic Guidance. Our ability to recruit and retain the best
    of American youth into the military is paramount to sustaining the All-
    Volunteer Force. We closely monitor our recruiting and retention
    numbers. If they begin to deteriorate, then these proposals can be
    reversed. Basic pay raises and housing allowances are foundational
    elements of pay that are reviewed annually to ensure our military pay
    is where it needs to be.

        11. Senator Graham. Sergeant Major Chandler, Master Chief Petty
    Officer Stevens, Chief Master Sergeant Cody, and Sergeant Major
    Barrett, what will be the impact on purchasing power of young enlisted
    members (E-1 to E-4) and their families if the President's proposals
    become law?
        Sergeant Major Chandler. Since 2000, military pay has outpaced
    inflation by approximate 18 percent and while we cannot accurately
    predict future inflation, slowing the growth of military pay raises
    will have an impact on the purchasing power of servicemembers. However,
    we are confident that if the proposal becomes law, the pay of young
    enlisted members will still exceed the pay of 90 percent of private
    sector workers of similar age and education level for many years.
        Chief Petty Officer Stevens. Compensation and impact will vary
    according to occupation, pace of promotion (i.e., in the early years of
    military service, servicemembers promote frequently and enjoy pay
    raises), number of dependents, pay grade, years of service and duty
    location, as well as commissary and TRICARE utilization rates. Tables
    below illustrate the estimated future purchasing power for two sailors,
    a married E-2 with less than 2 years of service, in San Diego; and a
    married E-4 with one child and 3 to 4 years of service in Norfolk. Both
    assume 100 percent of grocery shopping is done at a commissary and
    average TRICARE utilization. While no sailor will experience a decrease
    in pay and allowances, estimated purchasing power will decrease to
    about 95 percent of current values by fiscal year 2019, should all
    fiscal year 2015 reforms be fully implemented. In fiscal year 2015,
    over 98 percent of current purchasing power would be retained. It is
    also important to note individual servicemembers would continue to see
    increases in purchasing power as they received promotions and increased
    in years of service, but those purchasing power increases would be
    slower than they would have been under current policies.

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        Sergeant Major Cody. All of our airmen's purchasing power could be
    impacted with these reforms as we are slowing the growth of increases
    to basic pay and basic allowance for housing, thus it is important for
    our airmen to make informed and prudent financial decisions. An E-3
    with dependents made $43,000 in direct pay (basic pay, basic allowance
    for housing, and basic allowance for subsistence) in 2013. In 10 years,
    the same E-3's salary is projected to grow to $58,000. Under the new
    proposals, it will still grow to $56,000. Additionally, in 2001 the
    U.S. median annual household income was $42,000. This equated to the
    direct pay of an average E7. Today, the median annual household income
    is $52,000, roughly what an average E-5 makes in a year. I would also
    note that all airmen still have rate protection with regard to the
    basic allowance for housing. Concerning reductions in commissary
    savings, Defense Commissary Agency should strive for efficiencies to
    lower costs and perhaps changes in law could allow commissaries to
    function more like exchanges.
        Below is an estimate on the impact of the President's budget for
    fiscal year 2015 reforms on an E-3/E-4 with and without dependents.
    Without the President's budget for fiscal year 2015 proposals, we
    expect the basic pay, basic allowance for housing, and basic allowance
    for subsistence of an E-3 without dependents to grow from $3,265/month
    today to $3,502/month in 2017, an increase of $237/month. By including
    the President's budget for fiscal year 2015 proposals for basic
    allowance for housing and TRICARE, the actual pay of an E-3 without
    dependents would only grow to $3,429/month in 2017, still an increase
    of $164/month. Furthermore, assuming the E-3 shops in the commissary 80
    percent of the time, the member would realize $67/month less in
    commissary savings by 2017. Thus, even with the $140/month reductions
    from the President's budget for fiscal year 2015 reforms, the E-3
    without dependents would still see an effective pay increase of $97/
    month by 2017.
        Similarly for an E-3 with dependents, we expect the basic pay,
    basic allowance for housing, and basic allowance for subsistence of an
    E-3 without dependents to grow from $3,563/month today to $3,839/month
    in 2017, an increase of $276/month. By including the President's budget
    for fiscal year 2015 proposals for basic allowance for housing and
    TRICARE, the actual pay of an E-3 with dependents would only grow to
    $3,739/month in 2017, still an increase of $176/month. Furthermore,
    assuming the E-3 shops in the commissary 80 percent of the time, the
    member would realize $124/month less in commissary savings by 2017.
    Thus, even with the $224/month reductions from the President's budget
    for fiscal year 2015 reforms, the E-3 with dependents would still see
    an effective pay increase of $52/month by 2017.

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        Sergeant Major Barrett. If the President's phased-in compensation
    proposals become law, marines will still continue to see an increase in
    their direct pay on their Leave and Earnings Statement every year.
    Overall, marines will continue to receive a pay and benefits package
    that compares very favorably to private-sector compensation. For
    example:
        A Marine lance corporal (pay grade E-3) with military dependents
    made approximately $43,000 in direct pay (basic pay, housing, and food
    allowances) in 2013. In 10 years, his annual direct pay is projected to
    grow to approximately $58,000. If President's proposals are adopted,
    his annual direct pay will grow to approximately $56,000.
        It is noteworthy that 75 percent of enlisted marines in the pay
    grades E-1 through E-4 have no military dependents; of the 25 percent
    with military dependents, the average number of dependents is 1.4.

                    integrated disability evaluation system
        12. Senator Graham. Lieutenant General Bromberg, data from the end
    of February 2014 show numerous unresolved Integrated Disability
    Evaluation System (IDES) cases where servicemembers were on Active Duty
    in the disability evaluation system anywhere from 488 days to 1,287
    days. What is the Army doing to resolve this problem?
        Lieutenant General Bromberg. Of the 15,718 Active component
    soldiers enrolled in IDES as of 4 May 2014, 542 (3.4 percent) have been
    enrolled in IDES more than 500 days. Of these cases, only 135 (.08
    percent) have not been approved; the remainder involve soldiers
    transitioning from the Army or waiting for VA benefits.
        The significant disparity in the age of some cases is attributed to
    the unique nature of each case. The Army strives to treat every soldier
    fairly as they move through the DES process. Some soldiers develop
    complications after entering the DES process, but rather than
    administratively restarting their case to make statistics look better,
    the Army often keeps the soldier enrolled to ensure constant visibility
    of the case. Soldiers also impact their own timelines based upon the
    due process rights they exercise. The Army will never interfere with a
    soldier's right to due process and affords soldiers every regulatory
    and statutory element of due process required, regardless of the impact
    on timeliness. The joint DOD/VA metrics properly allow for the special
    circumstances described above by measuring the percentage of cases
    meeting established timelines. We believe we will be processing cases
    on all soldiers within DOD goals by March 2015.

                       temporary disability retired list
        13. Senator Graham. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, the
    Temporary Disability Retired List (TDRL) is a list of servicemembers
    found to be unfit for military duty because of a physical disability
    that may be permanent. Servicemembers can remain on this list for up to
    5 years. At any point during that time, they may be retired for
    permanent disability, separated with severance pay, or returned to
    Active Duty. What percentage of your servicemembers on the TDRL
    actually return to Active Duty?
        Lieutenant General Bromberg. Fewer than 1 percent of the soldiers
    removed from the TDRL in the past 12 months were found fit and were
    eligible to return to Active Duty. Specifically, 22 of 2968 (0.07
    percent) were found fit. Of those 22, only 13 actually returned to the
    Force, representing .04 percent of those removed from TDRL.
        Vice Admiral Moran. For fiscal years 2012 through 2013, no
    servicemembers on the TDRL who were subsequently found physically fit
    returned to Active Duty.
        Lieutenant General Cox. The IDES disability quarterly and annual
    reviews present Military Department performance based on data submitted
    by the Military Departments. These reports show the current rate of
    airmen on the TDRL who are returned to Active Duty is less than 1
    percent.
        Lieutenant General Milstead. On average, only two marines return to
    Active Duty each year from the TDRL, or about .06 percent (.0006) of
    the total TDRL population. To date in fiscal year 2014, no marines have
    returned to Active Duty.

        14. Senator Graham. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, is it
    time to reevaluate the need for the TDRL?
        Lieutenant General Bromberg. Yes, the Army believes it is time to
    reevaluate the need for the TDRL with the intent to eliminate the TDRL
    process, given that only approximately 1 percent of soldiers who are
    placed on TDRL are later found fit and eligible to return to Active
    Duty, and many of them opt not to do so.
        Vice Admiral Moran. Yes, it would be appropriate to reevaluate the
    TDRL program as it currently exists in order to validate the TDRL
    program supports the fair and timely processing of our wounded, ill,
    and injured marines and sailors within a modernized Disability
    Evaluation System. Historically, being on the TDRL also arguably limits
    members' ability to move forward with their lives, often leading to a
    greater sense of confusion and uncertainty and contributing to overall
    dissatisfaction. Each Service has the mechanisms within their accession
    programs to consider previously unfitting conditions and, if
    appropriate, return the veteran to Active Duty. This means the original
    intent of the TDRL program can be fulfilled via other existing programs
    and policies for those few who seek return to Active Duty from a
    separated or retired status. At a minimum, we concur with
    recommendation from the DOD Recovering Warrior Task Force in their
    2012-2013 Annual Report to eliminate the TDRL. Experience across all
    Services over many decades shows the TDRL program does not achieve its
    intended purposes, is expensive, and is difficult to operate. Given the
    low number of temporary retirees who return to the military, and the
    high proportion who eventually become eligible to receive permanent
    military disability retirement benefits, Congress may wish to consider
    cessation of this program.
        Lieutenant General Cox. Yes, reevaluation of the TDRL is needed
    and, in January 2014, we began doing so. Following recommendations from
    the Government Accountability Office (GAO) report,* our Air Force
    Warrior Care Policy team is championing a deep dive analysis of TDRL
    legislations, policies, and procedures. Their analysis is on track to
    conclude by the end of this year. Under the guidance of the Under
    Secretary of Defense for Personnel and Readiness, the Deputy Assistant
    Secretary of Defense for Warrior Care Policy led a task force of senior
    leaders from the VA, Military Departments, Joint Staff, and the Office
    of the Secretary of Defense to consider specific ways to improve the
    DOD disability process.
    ---------------------------------------------------------------------------
        * GA0-09-189, Military Disability Retirement, Closer Monitoring
    Would Improve the Temporary Retirement Process, April 2009 and the
    April 2013 TDRL Air Force Audit Report (F2013-0007-040000)
    ---------------------------------------------------------------------------
        Lieutenant General Milstead. Yes, it is a good time to reevaluate
    the need for the TDRL, as the return to Active Duty rates are extremely
    small. The TDRL program is very resource-intensive to manage and very
    inconvenient for the marine veteran in regard to travel and
    reexamination requirements. We need to better leverage more local and
    convenient VA facilities and/or contractors vice making these veterans
    travel hundreds and sometimes thousands of miles to military medical
    facilities for their reexaminations. Ceasing TDRL altogether may result
    in some veterans receiving permanent disability retirement and they and
    their family members receiving lifetime medical benefits who would not
    be eligible under current constructs, so a thorough cost-benefit
    analysis should be part of this evaluation.

                               mental health care
        15. Senator Graham. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, what
    efforts are you making to destigmatize mental health care in your
    Service?
        Lieutenant General Bromberg. The Army is decreasing the stigma
    associated with seeking behavioral health care through the continued
    establishment of its Behavioral Health Service Line. This effort has
    standardized our behavioral health system of care to identify, prevent,
    treat, and track behavioral health issues affecting soldiers and
    beneficiaries.
        Soldiers and family members are accessing behavioral health care
    much more frequently than at any time in the past, and far more are
    accessing outpatient behavioral health services to receive care earlier
    and more frequently. The number of behavioral health encounters across
    the Army increased from 991,655 in fiscal year 2007 to 1,899,660 in
    fiscal year 2013, a 91.5 percent increase. In addition, soldiers
    required approximately 25,000 fewer inpatient psychiatric bed-days over
    the same time period. These improved outcomes drive increased
    acceptability of the value of behavioral health care, driving down
    stigma, resulting in more soldiers willing to engage in an episode of
    care.
        Through efforts such as the establishment of Embedded Behavioral
    Health clinics in brigade footprints or by placing behavioral health
    providers in schools on Army installations, the Army continues to take
    steps to make care more accessible to its beneficiaries. Army Medicine
    believes that it is more successfully linking those who need behavioral
    health care with those who can provide it, and the increased
    utilization is a reflection of this.
        Vice Admiral Moran. Mental health providers are now integrated into
    a variety of operational units. These embedded assets work to maintain
    the psychological health of their units from within, and by virtue of
    their close working relationship with the operational forces, they are
    able to normalize the provision of care and create a culture that
    encourages seeking help in order to foster resilience and recovery.
    Similarly, the Behavioral Health Integration Program (BHIP) integrates
    behavioral health providers into the primary care setting. By
    addressing mental health concerns in this environment, the stigma
    associated with seeking mental health care can be decreased and the
    benefits of care can be enhanced.
        One new initiative we are launching is the Deployed Resiliency
    Counselors (DRC). These Fleet and Family Support Center counselors will
    be initially assigned aboard our aircraft carriers and large deck
    amphibious assault ships. These civilian licensed counselors will be
    deployed to support our sailors and improve resilience. Much like the
    BHIP, expanding availability of counseling services to settings other
    than traditional mental health should continue to reduce negative
    perceptions and related barriers to care.
        When Active Duty servicemembers receive mental health care,
    providers follow the presumption that they are not to notify a
    servicemember's commander unless this presumption is overcome by
    specific circumstances. These exceptions to confidentiality relate
    specifically to risk of harm to self or others, or to the
    servicemember's performance of duty. Even when information must be
    disclosed to a commander, providers are required to disclose the
    minimum amount of information necessary to satisfy the purpose of the
    disclosure (DOD Instruction 6490.08).
        Strategic health communications are a vital part of Navy's Suicide
    Prevention Program to encourage help-seeking behavior as a sign of
    strength and to counter prevailing negative perceptions regarding
    mental health and stress-related issues. Messaging campaigns are used
    to promote comprehensive wellness, empower self-efficacy, build
    community support, and champion bystander intervention; thereby,
    addressing the entire stress continuum. Ongoing messaging, such as ACT
    (Ask-Care-Treat), has proven effective in helping bystanders identify
    and intervene when sailors experience crises. Other recent messaging
    campaigns, such as NavyTHRIVE, promote comprehensive wellness and a
    sense-of-community to encourage healthy stress navigation before crises
    occur. Our branded communications portfolio includes products suicide
    prevention coordinators employ at the deck plate, e.g., LifeLink
    Newsletter, as well as a robust social media and online presence that
    help drive daily conversation among commands and families about stress
    navigation and prevention. Additionally, the program leads Navy's
    annual Suicide Prevention Month, using the month of September, each
    year, as an opportunity to launch the following year's ongoing
    communications themes to promote engagement at the deck plate.
        The Operational Stress Control program is the foundation of Navy
    efforts to build and maintain resilience in sailors and commands. We
    encourage proactive measures that sailors, leaders, and families can
    take to mitigate stressors before they become crises, while identifying
    those who may be reacting to stress and who need assistance. Beginning
    this year, Navy has required commands to complete Operational Stress
    Control skills-training within 6 months of deployment. Navy Mobile
    Training Teams travel to commands around the world facilitating unit
    training in small groups, providing venues for extensive dialogue with
    command leadership to build sailor resilience and unit readiness.
        Lieutenant General Cox. The Air Force works diligently to reduce
    barriers to mental health care wherever it can, to include reducing the
    perception of stigma. Many of our programs and training include anti-
    stigma messages. Examples include initial and annual suicide prevention
    training, Frontline Supervisor Training, and semiannual Wingman Day
    materials. The published Air Force Strategic Communication Plan
    includes Public Service Announcements, media reporting guidelines,
    leadership talking points, and post-suicide guidance for commanders,
    all of which emphasize the importance of early help-seeking. In
    addition, the Air Force's Limited Privilege Suicide Prevention Program
    affords increased confidentiality for airmen under investigation while
    they are seeking mental health care. Stigma is difficult to measure,
    but we have a number of indications that it is reducing. For example,
    the biennial Community Assessment Survey shows positive trends on
    responses to questions about mental health stigma. The number of mental
    health visits to Air Force clinics is gradually increasing, indicating
    the majority of airmen are not being hindered by potential concerns
    with stigma. We know from studies of Air Force mental health patients
    voluntarily seeking care, that only a small minority had negative
    career impact and airmen seeking care and staying in the Service serves
    as a positive example reinforcing that behavior for other airmen. As a
    concrete example, we know that approximately 75 percent of airmen
    diagnosed with post-traumatic stress disorder are retained in the
    Service. Many airmen and family members make the decision to seek care
    in dedicated mental health clinics, but lower stigma options are
    available such as the Behavioral Health Optimization Program, where
    mental health providers are integrated into primary care clinics.
        Lieutenant General Milstead. Outreach is our main effort to
    destigmatize mental/behavioral health care. Our strategic communication
    efforts include messaging that asking for help is a sign of strength,
    not weakness. The Marine Corps has bolstered these efforts through the
    implementation of BH360, a bi-monthly newsletter, and Marine Awareness
    and Prevention Integrated Training (MAPIT). BH360 provides actionable
    behavioral health information to general officers, Senior Executive
    Service leaders, commanders, and senior enlisted. This publication
    assists in setting a positive command climate by informing leaders of
    the programs available and reinforcing our message, that encourages
    those in need to seek help and for our leaders to support/promote this
    help-seeking behavior. Our destigmatizing message is interwoven
    throughout the MAPIT curriculum and increases personnel and unit
    readiness through dissemination of standardized behavioral health
    information and training related to common risk and protective factors
    across the behavioral health continuum.
        In addition, both Never Leave a Marine Behind (NLMB) suicide
    prevention training and Operational Stress Control and Readiness
    (OSCAR) training combat stigmas by leveraging peer support to normalize
    help-seeking behavior. NLMB and is mandatory training for all of our
    marines and attached sailors and seeks to dispel misperceptions that
    seeking behavioral health care will jeopardize a military career. OSCAR
    training provides skills and tools to identify and mitigate negative
    stress reactions. OSCAR Teams act as sensors for the commander by
    noticing small changes in behavior and taking action early before
    stress becomes a medical issue. By changing social norms and common
    beliefs, OSCAR Team Members help reduce stigma associated with
    behavioral health treatment, which improves referral, rapid case
    identification, and treatment.
        The Marine Corps also supports multiple stigma reduction DOD
    working groups. The charter of these groups is to develop and improve
    policies that impact barriers to seeking help for behavior health
    issues.

        16. Senator Graham. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, how is
    your Service making servicemembers and their families more resilient to
    the unique stressors they face every day?
        Lieutenant General Bromberg. In March 2013, the Army implemented
    the Ready and Resilient Campaign as a platform to address the
    resiliency needs of the Force. This initiative connects resilience to
    readiness, as the individual and collective resilience of team members
    and the team can either favorably or adversely impact mission
    readiness. The Army's approach focuses on building the personal
    resilience of its members as an enabler to achieving enhanced
    performance; resulting in increased readiness of the member, their
    unit, and the Total Army. This outcome will be achieved through
    deliberate processes that will produce an enduring cultural change and
    yield an Army environment that supports and develops its members to
    perform at their optimum level on a daily basis, and enables them to
    recover and grow from adversities.
        Vice Admiral Moran. Navy has a full spectrum of programs to prepare
    sailors and families to face the unique challenges of a military
    lifestyle, maintain force resiliency, and reinforce unit readiness.
    They are critical to mission readiness and the Navy's 21st century
    sailor initiative by assisting commanding officers, sailors, and their
    families manage the demands of military life. Whether it is programs
    that assist with relocation of duty stations, stress management,
    prevention of sexual assault and domestic violence, developing personal
    skills, emergency preparedness, how to get a job in the civilian
    community, enjoy surroundings, or enhance physical condition, the Navy
    provides access to tools ashore and when deployed to build and sustain
    resiliency throughout and after Active Duty. Some specific examples
    include:

            - The Operational Stress Control Program is the foundation of
            Navy efforts to build and maintain resilience in our sailors
            and commands. It facilitates understanding of operational and
            personal stress, promotes awareness of available resources, and
            provides practical mitigation tools. The program encourages
            proactive measures designed to mitigate stressors before they
            become crises, facilitate the early recognition of potential
            problems, reduce stigma associated with seeking psychological
            care, encourage prompt treatment, and enhance the professional
            empathy of leaders. This year, Navy has begun requiring
            commands to complete Operational Stress Control skills training
            within 6 months of deployment. Navy Mobile Training Teams
            travel to commands around the world facilitating unit training
            in small groups providing venues for extensive dialogue with
            command leadership to build sailor resilience and unit
            readiness.
            - Our Suicide Prevention Program promotes bystander
            intervention as a critical element of sailors taking care of
            sailors while our consistent messaging of ACT (Ask-Care-Treat)
            has proven to be effective in identifying sailors that need
            assistance before minor stressors become major crises.

        While our efforts focus on actions left of the event, post-vention
    is a critical component of providing psychological first-aid support to
    commands that have experienced stressful operations or events, such as:

            - In fiscal year 2013, the NavyTHRIVE communications campaign
            was launched, focusing on providing sailors, leaders, and
            families with the tools to empower individuals to not only take
            advantage of support networks, but promote personal growth
            through self-sustainment and community. The 2013 Suicide
            Prevention Month theme, Thrive In Your Community, focused on
            emphasizing the importance of cohesion and togetherness when
            dealing with adversity. NavyTHRIVE will continue through this
            fiscal year, focusing on supporting sailors through transition
            periods.
            - We are assigning DRCs aboard our aircraft carriers and large
            deck amphibious assault ships. The civilian licensed clinicians
            will work with ships' medical officers, chaplains, and
            leadership in support of our sailors. Of the initial 21
            planned, 10 have been selected to serve on U.S. and overseas-
            based ships. DRCs can provide early intervention and counseling
            to minimize the need for more intensive behavioral health
            treatment. Counseling and support services provided by the DRCs
            are preventive in nature, aimed at addressing life challenges,
            such as adjustment to deployments, separation from friends and
            family, relationship and family issues, and other challenges to
            military life. The DRCs are also fully trained to provide an
            extra layer of support to any victims of sexual assault and
            domestic violence, ensuring that there are no gaps in support
            services. DRCs will also provide psycho-educational training on
            topics like suicide prevention, stress reduction, and substance
            abuse prevention.
            - To support our wounded warriors and their families, our Navy
            Wounded Warrior-Safe Harbor (NWW) program coordinates the non-
            medical care of seriously wounded, ill, and injured sailors,
            coastguardsman, and their families. NWW's goal is to return
            sailors to Active Duty and, when not possible, work
            collaboratively with Federal and nongovernmental agencies,
            including the VA, and State and local organizations, to ensure
            successful reintegration of sailors back into their
            communities. NWW extends support beyond separation or
            retirement from the Navy through the Anchor Program, a
            partnership with the Navy Reserve and Navy retiree volunteers
            who provide mentorship support during reintegration to the
            community.
            - The Navy offers a wide array of fitness and recreational
            activities to sailors and family members that assist with their
            physical and mental well-being. Even during deployments, ship-
            board personnel have access to fitness equipment and
            recreational gear to assist with confronting the rigors of
            deployment.

        Lieutenant General Cox. The Air Force has adopted and is promoting
    a holistic approach to teach and educate Air Force personnel and their
    family members Comprehensive Airman Fitness (CAF). CAF's mission is to
    build, promote, and sustain a thriving and resilient community living
    healthy lifestyles by practicing positive mental, physical, social, and
    spiritual fitness. The Air Force is teaching Master Resilience Trainers
    (MRT) skills and tools that can help individuals cope and potentially
    thrive through life stressors. In turn, MRTs are teaching and
    facilitating resilient skill events to Air Force personnel and family
    members, thus creating a resilient culture of airmen taking care of
    airmen.
        Lieutenant General Milstead. The Marine Corps has implemented
    numerous programs to address resiliency. In particular, our Community
    Counseling and Prevention (CCP) program specifically addresses
    behavioral health risk factors impacting our marines and their
    families. The program leverages the subject matter expertise of
    Community Counseling, Suicide Prevention and Response, and Combat and
    Operational Stress Control (COSC). Primary efforts are focused on
    enhancing protective factors of individual marines and their families
    with short-term, solution-focused care and case management. In
    addition, we instituted a Marine Expeditionary Forces (MEF) prevention
    capability that provides prevention capabilities to the MEFs and Major
    Subordinate Commands to oversee execution of all behavioral health
    prevention education initiatives. Complementing this effort, our
    Military Family Life Consultant Program, comprised of 262 licensed
    counselors embedded in 120 units, provides dedicated personnel to
    identify need; increase awareness, outreach, and referral; and also
    provide limited counseling. Training programs, such as OSCAR and NLMB,
    offer skills to prevent/mitigate stress injuries, additionally the
    DSTRESS Line provides a direct 24-hours-a-day link for marines to speak
    to `one of their own' about everyday stress or heavier life burdens.
        Due to the overwhelming positive response received from marines
    regarding OSCAR training, there was a high demand from family members
    for the Marine Corps to provide similar trainings specific to their
    needs and stress. Conquering Stress with Strength (a.k.a. COSC for
    Families) is a workshop that helps apply practical techniques to manage
    personal stress responses and to apply problem-solving methods to
    action in situations involving high-risk behaviors. This workshop is a
    family-focused workshop that addresses managing reactions to high
    stress situations. It is scheduled for release summer 2014.
        The Marine Corps also provides family readiness officers to the
    battalions and squadrons that provide an information and referral
    source for unit members.

        17. Senator Graham. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, does
    your Service have enough behavioral health providers (psychiatrists,
    psychologists, social workers, mental health nurses, mental health
    nurse practitioners, and other licensed mental health providers) to
    ensure that servicemembers and their families can get timely mental
    health care when they need it? Please provide a table that shows your
    total requirements, authorizations, and current end strengths.
        Lieutenant General Bromberg. As of 31 March 2014, the Army had
    5,275 behavioral health providers. The Army's current requirement is
    5,665 personnel, including professional providers and behavioral health
    technicians. This number represents all missions that behavioral health
    providers support, to include research, education, and prevention, as
    well as clinical service delivery. We expect that the requirements for
    providers will evolve as the needs of Army beneficiaries change.
        Specific to clinical service delivery, the Behavioral Health
    Service Line Matrix resourcing tool reflects a provider requirement
    (psychiatrist, psychologist, and social worker only) of 1,793, and an
    on-hand number of approximately 1,902 providers documenting clinical
    care. The most recent analysis of workload data indicates a requirement
    for 2,029 providers, resulting in a current shortfall of 127 providers.
        U.S. Army Medical Command currently has 352 open hiring actions
    covering vacant positions for psychiatrists, psychologists, social
    workers, behavioral health nurses, behavioral health nurse
    practitioners, and behavioral health technicians/counselors.
        See tables below.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Vice Admiral Moran. No, we are currently experiencing shortages
    among psychologists, psychiatrists, and social workers. Section 714(a)
    of the National Defense Authorization Act for Fiscal Year 2010 required
    the Military Departments to increase the number of authorizations for
    mental health professionals by 25 percent. Accordingly, Navy has
    increased authorizations over the past 4 years in several mental health
    specialties, such as social workers and clinical psychologists, but all
    of these positions are not yet encumbered.
        The following tables provide authorizations and current end
    strengths as of March 31, 2014.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Mental health requirements are currently under a review and
    revalidation process through the Tri-service Mental Health DOD/VA
    committee utilizing the Psychological Health Risk-Adjusted Model for
    Staffing model. The validation of mental health requirements is a tri-
    service initiative that is ongoing.
        Lieutenant General Cox. Current manning strength is adequate to
    meet the general mental health needs of airmen. We have filled
    approximately 97 percent of our authorized positions in mental health.
    Access to care data indicates the majority of patients receive care
    within access to care standards. Our recruiting and retention
    incentives helped psychologists reach a 94 percent manning level.
    Currently, a gap exists for generic mental health nurses; we are
    actively recruiting and training both generic and advanced practice
    psychiatric and mental health nurse practitioners. Finally, in spite of
    a nationwide shortage, 92 percent of our psychiatrist authorizations
    are filled. However, due to a national shortage of mental health
    providers, especially child psychologists and psychiatrists, access to
    certain services varies by location. For this reason, the Air Force's
    Exceptional Family Member Program seeks to assure assignment of airmen
    with special needs family members only to locations where necessary
    services are readily available. The table showing requirements,
    authorizations, and current end strength is shown below.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Lieutenant General Milstead. The Marine Corps depends on the Navy
    for our health care providers. However, the Marine Corps has recently
    established community counseling services on installations worldwide to
    increase access to care and assist marines and their families in
    navigating the many support resources available. We also have 113
    community counselors who are licensed clinical providers, credentialed
    by the Marine Corps Credentialing Review Board, and provide evidence-
    based client screening tools, assessments, and short-term, non-medical
    counseling; clinical case management to improve coordination of
    referrals to medical treatment facilities and specialty care
    appointments; and short-term, non-medical, counseling interventions for
    marines who have experienced military sexual trauma.
        See table below.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        18. Senator Graham. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, do the
    Services need additional legislative authority to improve incentives
    for recruitment and retention of mental health professionals?
        Lieutenant General Bromberg. In reference to the recruitment and
    retention of military mental health professionals, section 335 of title
    37 (Pay and Allowances of the Uniformed Services-Special bonus and
    incentive pay authorities for officers in health professions) provides
    sufficient authorities for both accession and retention bonuses of
    mental health providers, assuming adequate funding. Additionally, the
    Army has developed training pipelines for all of our officer skills
    sets through the use of the Health Professions Scholarship Program and
    the Fayetteville State Cooperative Program.
        To assist the Army's efforts to recruit and retain critical
    civilian mental health professions, including psychologists and social
    worker, an extension of the direct hire appointment authority under
    title 5, subpart, section 337.202, for a 1-year period would allow the
    Army to immediately fill 164 critical positions. Additionally, direct
    hire appointment authority for a 3-year fiscal period beginning October
    1, 2014, would allow the Army to hire 265 behavioral health positions
    per year to replace anticipated losses based on our voluntary loss rate
    to the U.S. Army Medical Command.
        Vice Admiral Moran. We do not need additional authorities at this
    time, although extension of current health professions special and
    incentive pays, included in the administration's official legislative
    package, is imperative. We continue to evaluate the effectiveness of
    these authorities as we transition to the consolidated special and
    incentive pays enacted in the National Defense Authorization Act for
    Fiscal Year 2008. If additional or enhanced authorities are deemed
    necessary, we will include them in a future Defense Authorization
    Request.
        Lieutenant General Cox. Additional legislative authority is not
    required by the Air Force at this time. The Assistant Secretary of
    Defense for Health Affairs sets pay rates for Active Duty health
    professionals on an annual basis. Current incentives authorized under
    37 U.S.C. Chapter 5 are sufficient to recruit and retain the qualified
    mental health professionals needed at this time.
        Lieutenant General Milstead. The Marine Corps relies on the Navy
    for its mental health providers. We know that recruitment and retention
    of qualified mental health personnel pose a challenge. There are some
    regions where maintaining an adequate pool of one or another mental
    health skill set is problematic. Improving incentives would certainly
    help to improve manning goals, however, monetary compensation is not
    the only issue facing their recruitment and retention.

                     opening positions to women in services
        19. Senator Graham. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, who is
    the approval authority for opening positions to women in your Service
    to Special Operations Forces? Is it the Service or U.S. Special
    Operations Command (SOCOM)?
        Lieutenant General Bromberg. The Secretary of Defense is the
    approval authority for opening positions to women in Special Operation
    Forces. The Army and SOCOM are working together in a collaborative,
    coordinated manner regarding closed positions, units, and occupations
    within Special Operations. The Commander, SOCOM, submits all
    recommendations through the Army Chief of Staff and Secretary of the
    Army for concurrence of all requests to open U.S. Army SOCOM positions,
    units, and occupations prior to forwarding the request to the Secretary
    of Defense as the approval authority.
        Vice Admiral Moran. In reaching the decision to rescind the 1994
    Direct Ground Combat Definition and Assignment Rule, the Secretary of
    Defense endorsed the unanimous advice of the Joint Chiefs of Staff,
    which set forth the guiding principles, goals, and milestones to the
    successful integration of women in the remaining restricted
    occupational fields. That guidance recognized the unique relationship
    SOCOM maintains with the Services in understanding the operational
    environment and operational requirements needed to execute SOCOM
    missions. Specifically, the Chairman required ``the Services and SOCOM
    to proceed in a deliberate, measured, and responsible way to assign
    women to currently closed MOSs as the physical and operational
    assessments are completed.''
        To ensure the efficient integration of women in closed MOSs and
    units, the Services and SOCOM work collaboratively to proceed in a
    deliberate, measured, and responsible way to assign women. When a
    decision is made to notify Congress regarding DOD's intent to open a
    position, it is a Department-level decision informed by input from the
    Joint Chiefs of Staff, the Services, the Military Department
    Secretaries, SOCOM, and the Under Secretary of Defense for Personnel
    and Readiness.
        Lieutenant General Cox. The Secretary of Defense is the approval
    authority for the Services to open direct ground combat positions to
    women.
        Lieutenant General Milstead. To ensure the efficient integration of
    women in closed MOSs and units, the Services and SOCOM work
    collaboratively to proceed in a deliberate, measured, and responsible
    way to assign women. When a decision is made to notify Congress
    regarding DOD's intent to open a position, it is a Department-level
    decision informed by input from the Joint Chiefs of Staff, the
    Services, the Military Department Secretaries, SOCOM, and the Under
    Secretary of Defense for Personnel and Readiness.

        20. Senator Graham. Lieutenant General Bromberg, Vice Admiral
    Moran, Lieutenant General Cox, and Lieutenant General Milstead, what is
    your understanding of your Service and SOCOM's respective roles in the
    decision?
        Lieutenant General Bromberg. The Army and SOCOM are working
    together in a collaborative, coordinated manner regarding closed
    positions, units, and occupations within Special Operations. The
    Commander, SOCOM submits all recommendations through the Army Chief of
    Staff and Secretary of the Army for concurrence of all requests to open
    U.S. Army Special Operations Command positions, units, and occupations
    prior to forwarding the request to the Secretary of Defense as the
    approval authority.
        Vice Admiral Moran. Before recommending opening positions, Navy
    will work in parallel to submit a coordinated Service and SOCOM
    recommendation through the Assistant Secretary of Defense (Special
    Operations/Low-Intensity Conflict) for notification on Special Warfare/
    Special Operations specialties. It will require synchronization by both
    parties as recommendations are inter-dependent and aimed at ensuring
    that the opening of occupations aligns with Chairman of the Joint
    Chiefs of Staff guiding principles.
        Lieutenant General Cox. Our Service and SOCOM are working together
    to ensure SOCOM's operational requirements and Air Force equities are
    fully captured in our recommendations to the Secretary of Defense to
    open our remaining male-only ground combat positions to women.
    Completing the standards validation studies and determining the timing
    to open the positions requires close coordination between the Air Force
    and SOCOM.
        Lieutenant General Milstead. In reaching the decision to rescind
    the 1994 Direct Ground Combat Definition and Assignment Rule, the
    Secretary of Defense endorsed the unanimous advice of the Joint Chiefs
    of Staff, which set forth the guiding principles, goals, and milestones
    to the successful integration of women in remaining restricted
    occupational fields. That guidance recognized the unique relationship
    SOCOM maintains with the Services in understanding the operational
    environment and operational requirements needed to execute SOCOM
    missions. Specifically, the Chairman required ``the Services and SOCOM
    to proceed in a deliberate, measured, and responsible way to assign
    women to currently closed MOSs as the physical and operational
    assessments are completed.''
        To ensure the efficient integration and assignment of women in
    previously closed MOSs and units, the Services and SOCOM will work
    collaboratively and proceed in a deliberate, measured, and responsible
    way to assign women.

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