Posted on Jan 31, 2016
Are you not surprised the Military is changing so much since General Odierno spelled it out September 18, 2013?
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General Odierno said in 2013 Military manpower costs remain at historic highs and consume 46% of the Army budget today.... Soldier compensation will double. If we do not slow the rate of growth, Soldier compensation will double to approximately 80% of the budget by 2023. I wonder what he means when soldier compenstation almost doubles in 10 years when we have so many less soldiers to pay?http://docs.house.gov/meetings/AS/AS00/20130918/101291/HHRG-113-AS00-Wstate-OdiernoUSAR-20130918.pdf
Posted in these groups: 
Retirement
Sequestration
Retirement Sequestration
Edited 9 y ago
Posted 9 y ago
Responses: 5
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LTC (Join to see) In my opinion, I think with the new retirement system in effect, he probably was eluding to the payout for the retirement system.
http://www.militarytimes.com/story/military/benefits/retirement/2015/06/10/dod-retirement-plan-details-approved/71011882/
http://www.militarytimes.com/story/military/benefits/retirement/2015/06/10/dod-retirement-plan-details-approved/71011882/
New military retirement system gets Pentagon OK
After months of official silence, the Defense Department on Wednesday sent to Capitol Hill its formal recommendation for transforming military
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SFC Joe S. Davis Jr., MSM, DSL
LTC (Join to see) roger that, I am so glad I retired under the old 20 year system before 2018.
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LTC (Join to see)
Same here.I have my 20 year letter after doing 21 years 11 months last year due to a bad year (3 weeks short) from going in the IRR to get moved into the USAR. I hit 22 years in about a week and a half...my PEBD is 17 FEB 94.
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LTC (Join to see)
Thank you and all here on RP that are/were active duty, reserve, guard, IRR, retirees and veterans for your services to the cause too!
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I'm guessing much of the increase in cost is coming from health care due to increased government involvement in the industry. The service members and families won't see better care, but the government will continue to pay more and more for it.
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LTC Kevin B.
LTC Yinon Weiss - I think it is like any government intervention....it cures some problems, but then creates new problems. The issue is determining whether or not the net effect is positive for society.
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MAJ Rene De La Rosa
http://www.military.com/daily-news/2013/04/08/pentagon-struggles-with-high-cost-of-health-care.html
The increase in health costs has increased so much that 10% of the Army budget is devoted to healthcare. This is unsustainable. Thus, there reason for the budget cuts.
The increase in health costs has increased so much that 10% of the Army budget is devoted to healthcare. This is unsustainable. Thus, there reason for the budget cuts.
Pentagon Struggles with High Cost of Health Care
WASHINGTON - The loud, insistent calls in Washington to rein in the rising costs of Social Security and Medicare ignore a major and expensive entitlement program - the military's health care system. Despite dire warnings from three defense secretaries about the uncontrollable cost, Congress has ...
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According to a report by Col Hayden of MOAA there is evidence that says otherwise.
Personnel costs for the past 30 years has remained at 33% of the military budget while at the same time the military spending has been declining. As well the tricare fees have increased while simultaneously yearly surpluses have been diverted. These diverted funds are in the billions. I think there are other options to explore like reforms in the current health care system in operating separate medical commands for the Army, Air Force and Navy. However that's easier said than done.
Maybe there's some political posturing at play - who knows - however give a 1% raise but then take away 2% via an increase of tricare fees doesn't scream the sky is falling - more like bend over here it comes.
Creating pay gaps with civilians will definitely slow the growth of the military but I feel the short term gains in reduction in force will also help create retention challenges and hurt the military in the end.
FYI the link to the article did not work for me?
Personnel costs for the past 30 years has remained at 33% of the military budget while at the same time the military spending has been declining. As well the tricare fees have increased while simultaneously yearly surpluses have been diverted. These diverted funds are in the billions. I think there are other options to explore like reforms in the current health care system in operating separate medical commands for the Army, Air Force and Navy. However that's easier said than done.
Maybe there's some political posturing at play - who knows - however give a 1% raise but then take away 2% via an increase of tricare fees doesn't scream the sky is falling - more like bend over here it comes.
Creating pay gaps with civilians will definitely slow the growth of the military but I feel the short term gains in reduction in force will also help create retention challenges and hurt the military in the end.
FYI the link to the article did not work for me?
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LTC (Join to see)
It figures...the guys who do the work don't reap the benefit of the 'peace dividend' and ,like you said, get bent over and now the 401k retirement plan is actually a 20% cut with the expectations of a boom market like how we had off and on every few years. I have some money that was in mutual funds and stocks worth 30K around the 2000 dot-com bubble and even with all the diversification It went back up to $33K last month and is back down to $28k now so I am not sure how this matching and such is going to be a benefit for the average MSG or MAJOR who retires after 20 years of the new system in 2038.
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LTC (Join to see)
thanks again for the chart. Too bad the staff for General Odierno didn't check their sources first.
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SPC David S.
Yes sir - I'm not sure what that's all about - however President Barack Obama had threatened to veto the Department of Defense Appropriations Act because it failed to increase fees and co-payments for TRICARE and increased basic pay by a larger amount than the administration requested.
http://freebeacon.com/national-security/general-odierno-warns-of-rising-personnel-costs/
http://freebeacon.com/national-security/general-odierno-warns-of-rising-personnel-costs/
General Odierno Warns of Rising Personnel Costs
General Raymond Odierno, chief of staff of the U.S. Army, warned Monday that the Army’s budget could be unsustainable in a decade if officials are not able to partner with Congress and slow the grow
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LTC (Join to see)
Thanks for the report from COL Hayden since I will be using this to refute what General Odierno said in my 300 word essay for my CGSOC homework on Army Force Integration and if what he says makes sense today in 2016. Thank You!
http://www.moaa.org/uploadedFiles/MOAA_Main/Main_Menu/Take_Action/Top_Issues/Enjoying_Retirement/Compensation/Hayden_testimony_payretirement.pdf
http://www.moaa.org/uploadedFiles/MOAA_Main/Main_Menu/Take_Action/Top_Issues/Enjoying_Retirement/Compensation/Hayden_testimony_payretirement.pdf
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