Military Experts Hail Pay Report Progress; Advocate for Policy Shifts Now
Swinging the Scale: Recent Pentagon Study Highlights Key Military Compensation Changes
Experts are buzzing about a fresh Pentagon report on military pay and benefits, hailing it as a game-changer in addressing financial security for military families.
"This report is a game-changer," explains Derek Doyle, director of public affairs for the Military Family Advisory Network. "The financial health of military households is a matter of national security. An individual's financial well-being and overall well-being are deeply intertwined, and it heavily influences whether somebody would recommend military service."
The 14th Quadrennial Review of Military Compensation (QRMC) tackles a wide range of topics, from basic pay to child care incentives and housing allowances. The report concludes that military compensation remains competitive with the civilian labor market but suggests major updates to compensation methodologies and support for military spouses.
Basic Allowance for Housing (BAH)
The COVID-19 pandemic's economic impacts have played a significant role in QRMC recommendations, according to Katherine Kuzminski, director of the Military, Veterans, and Society Program at the Center for a New American Security.
"In 2020 and 2021, we witnessed a massive surge in housing costs nationwide," Kuzminski says. "BAH is recalculated only once a year, and this discrepancy can leave junior enlisted service members and their families struggling with food insecurity during PCS moves with price gouging in the housing market."
In response, the Pentagon authorized BAH increases in 2021; however, the report recommends a more accurate and stable BAH methodology. To achieve this, the Pentagon should base BAH rates on census data and the number of bedrooms in a dwelling instead of the type of dwelling.
Some military families report that despite BAH increases, they still find themselves financially strained.
"I've spoken with families who are paying far more than they can comfortably afford for housing," says Eileen Huck, government relations senior deputy director at the National Military Family Association. "This is a significant issue, especially in expensive areas like southern California and Hawaii."
Spouse Employment
The 14th QRMC also underscores the importance of addressing military spouses' employment challenges. With the prevalence of dual-income households, frequent moves, and inconsistent child care access, military spouses face hurdles to securing employment and maintaining financial stability.
Approximately 22 percent of active-duty spouses remain unemployed, and the report reveals a 14 percent average decrease in spouse earnings in any PCS year.
To tackle these issues, QRMC suggests non-cash compensation options, like decreasing PCS frequency, expanding child care access, and reducing barriers to spouse retirement savings. Huck believes there's still more work to be done, such as expanding tax credits for employers that hire military spouses.
"With the data from the 14th QRMC, military officials can now make policies aimed at helping military spouses stay in their jobs and careers," says Huck.
Moving Beyond Pay
The QRMC underscores that military compensation, beyond pay, plays a crucial role in attracting and retaining personnel. It's worth noting that, on average, enlisted members earn more than 82 percent of their civilian counterparts with similar education and experience, while officers exceed 75 percent.
With a planned pay raise, military compensation could soar even higher. But, as Kuzminski points out, its impact may not feel as impressive amid stagnant civilian wages and high living costs.
"Military compensation is competitive, but it's important to consider the broader context," Kuzminski explains. "Civilian wages have remained stagnant since the early 1990s, so just earning more than a typical civilian may not equate to a strong financial position."
As a new administration takes office, the QRMC's recommendations for improved military compensation could gather significant bipartisan support. Kuzminski believes that addressing military compensation will be a rare area of agreement in Congress.
Additional Notes:- The importance of competitive military compensation plays a critical role in attracting and retaining military personnel.- The QRMC's recommendations suggest much-needed updates to the military compensation system, including basic pay, housing allowance, cost of living allowance, child care incentives, bonuses, and other benefits.- Military spouses face unique employment challenges, such as frequent moves, inconsistent child care access, and difficulty finding employment, which can significantly impact their financial stability.- The 14th QRMC is a significant step towards addressing military family financial security, with a special focus on military spouses and the Basic Allowance for Housing (BAH).
- The financial security of military families is a matter of national security and defense, as stated by Derek Doyle, director of public affairs for the Military Family Advisory Network.
- Experts predict that the updates to military compensationmethodologies, as suggested by the 14th Quadrennial Review of Military Compensation (QRMC), will have a significant impact on the security of military households.
- The Pentagon is considering basing Basic Allowance for Housing (BAH) rates on census data and the number of bedrooms in a dwelling, as recommended by the 14th QRMC report, in an effort to improve space force veterans' financial security.
- Policy-and-legislation changes, such as expanding tax credits for employers that hire military spouses, are being discussed in politics to address the employment challenges faced by military spouses.
- The QRMC findings highlight the importance of general news coverage on military compensation, as it directly impacts the security, finance, and well-being of military families, and affects the policy landscape for many years to come.
