[Congressional Record (Bound Edition), Volume 149 (2003), Part 8]
[Extensions of Remarks]
[Page 10402]
[From the U.S. Government Publishing Office, www.gpo.gov]




       INTRODUCTION OF THE MILITARY PAY COMPATIBILITY ACT OF 2003

                                 ______
                                 

                          HON. SUSAN A. DAVIS

                             of california

                    in the house of representatives

                       Wednesday, April 30, 2003

  Mrs. DAVIS of California. Mr. Speaker, I rise today to introduce the 
Military Pay Compatibility Act of 2003. Joining me is my dear friend 
and colleague Representative Ike Skelton, the ranking Member of the 
House Armed Services Committee. He is a man of great wisdom and 
preeminence with respect to all things military and I appreciate his 
guidance and support.
  In short, this legislation will ensure that military pay raises keep 
pace with civilian pay growth.
  Please allow me to explain why this is important. Military pay tables 
were overhauled in 1971, with the advent of the all-volunteer force, 
and basic pay was set to provide reasonable pay comparability with 
private sector pay for civilian workers with similar skills, education 
and experience.
  But military raises were capped for budgetary reasons during the 
1970's, and serious retention and readiness shortfalls followed. These 
problems were addressed with double-digit raises in 1981 and 1982, 
after which it was generally acknowledged that military pay was 
reasonably comparable with private sector pay.
  Despite this hard-learned lesson, the extended retention rebound of 
the 1980's, coupled with rising budget deficits, led multiple 
Administrations and Congress to continue capping military raises below 
private sector pay growth in 12 of the next 16 years.
  In 1999, the cumulative military pay raise shortfall since 1982 had 
reached 13.5 percent--predictably accompanied by a new retention and 
readiness crisis.
  Congress responded by enacting provisions in the FY 2000 Defense 
Authorization Act specifying that, for years 2000 through 2006, each 
year's military pay raise is to exceed the civilian pay growth, as 
measured by the Bureau of Labor Statistics' Employment Cost Index, or 
ECI, by \1/2\ percent per year. The 2001, 2002 and 2003 pay raises 
actually exceeded this standard and cut the gap from 13.5 percent to 
6.4 percent.
  In May 2002, the Department of Defense released its Ninth Quadrennial 
Review of Military Compensation (QRMC), which acknowledged that current 
pay structure lags considerably behind pay for civilians of comparable 
age and education. And, the Department of Defense has been supportive 
of increased raises to restore a new comparability standard.
  In summary, the capping of military pay raises below private sector 
pay growth for extended periods during the past 30 years has led to 
significant retention problems among second-term and career members of 
the Armed Forces.
  Such retention problems cost the United States more in terms of lost 
military experience, decreased readiness, and increased training costs 
than maintaining the principle of pay comparability.
  The remaining so-called pay comparability gap should be eliminated as 
quickly as possible, and military pay increases must sustain full 
comparability with increases in the Employment Cost Index.
  My bill would ensure that military pay raises never again lag 
civilian pay raises. Existing authority to close the pay gap expires in 
2006. This legislation adds to that authority by specifying that 
military pay raises must be at least at the level of civilian wage 
growth beginning in 2007.
  I have been asked if I am doing this because of our troops returning 
from the Middle East and the war in Iraq. The answer is no and yes. No 
because this legislation builds on the legislation I offered in the 
107th Congress and addresses the same problem of the pay gap with a 
different approach. This issue is not new to me.
  The answer is also yes because I can think of no better way to show 
continued support for our troops than to send them a clear signal that 
the Congress and the nation value their service and sacrifice, both 
today and in the future.
  This measure has the full endorsement of the Fleet Reserve 
Association and the Military Coalition, and I have attached their 
letter of endorsement.
  Mr. Chairman, I urge my colleagues to cosponsor this important 
legislation and work to ensure its quick passage. Nearly identical 
legislation was introduced in the Senate yesterday. Working together 
with our Senate colleagues, I urge my colleagues on the House Armed 
Services Committee to include this legislation as a provision of the 
National Defense Authorization Act for Fiscal Year 2004.

                                       The Military Coalition,

                                   Alexandria, VA, April 30, 2003.
     Hon. Susan A. Davis,
     House of Representatives,
     Washington, DC.
       Dear Representative Davis: The Military Coalition (TMC), a 
     consortium of nationally prominent uniformed services and 
     veterans' organizations representing more than five and one 
     half million current and former members of the seven 
     uniformed services, plus their families and survivors, 
     strongly supports legislation you are preparing to introduce 
     that would amend title 37, United States Code, concerning 
     future military pay raises and their comparison with private 
     sector pay growth. Under the provisions of your proposal, 
     increases in pay for members of the uniformed services would 
     match the growth in the Employment Cost Index (ECI).
       This is a priority issue, and the Coalition strongly 
     supports the introduction of such legislation. The Office of 
     Management and Budget (OMB) already recommended that future 
     military pay raises be based on the Consumer Price Index 
     (CPI). If that were adopted, military personnel would not 
     receive comparable pay increases with those in the private 
     sector, thus halting progress in closing the pay gap between 
     military and civilian pay levels. In addition, the 
     Administrations budget request would cap FY2004 pay increases 
     for NOAA and PHS personnel at the CPI level.
       The ECI measures private-sector wage increases, while the 
     CPI is an inflation gauge to preserve the purchasing power of 
     retired pay, veterans' benefits and other programs. Retaining 
     the ECI will ensure that pay increases for all seven of the 
     uniformed services mirror those in the civilian economy. This 
     is important to maintaining adequate recruiting and retention 
     within the services and subsequently to our Nation's military 
     readiness.
       The Coalition appreciates your leadership on this issue and 
     will work toward the enactment of this legislation into law.
           Sincerely,
     The Military Coalition.

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