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Military Pay Blog

A 1.6% Pay Raise Proposal for 2017

February 8, 2016

Tomorrow, February 9, 2016, President Obama will release his eighth and final fiscal year (FY) budget proposal for his two terms in office. The President’s FY-2017 proposal will cover all departments within the government including the Department of Defense.

Whereas there are many line items of interest, the one that is covered the most here is compensation; most specifically pay. This year’s budget request will see just a 1.6 percent increase in Basic Pay over 2016.

As what is normal for these budget proposals, the amount of any increase indicated for Basic Allowance for Housing for 2017 will be just a swaged placeholder amount – don’t get excited over it.

The thing that is most noteworthy about the President’s Basic Pay proposal is the fact that it is once again below the standard that has been used to calculate such pay raises. The base being, according to Title 37 United States Code § 1009 — Adjustments of monthly basic pay, the Employment Cost Index (ECI). Per Title 37, the increase in Basic Pay should be 2.1 percent. The President’s proposal of 1.6 percent is a half of percent less.

Not a big deal, it is just a half percent, right? Well, for a single year that may be the case, but if allowed to pass – if Congress cannot find the money – 2017 will be the fourth year in a row that Basic Pay raises have been below the automated ECI adjustment (2014 ECI at 1.8%; 2015 ECI at 1.8%; 2016 ECI at 2.3% — 2014 pay raise at 1%(-0.8); 2015 (Read the rest of the article…)



First 2017 Military Pay Raise Indicator Released

December 5, 2015

Today, October 30, 2015, at 0830EST, the United States Employment Cost Index (ECI) was released. The releasing of the ECI by the United States Bureau of Labor Statistics is an eagerly awaited quarterly economic indicator for those in the stock market and politics; but what makes this morning’s release important to our military is that one of the main indicators is used to determine any pay raise amount for 2017’s raise.

According to U.S. Code Title 37, that is how it is supposed to work unless the President determines that the state of the economy is such that he must intervene. For 2014, 2015, and for 2016 ECI indicated a higher raise than what was ultimately passed. For 2014, President Obama stepped in and followed the recommendation of the Department of Defense (DOD) to mandate just a one percent raise, and because Congress did not find the money in the budget to pay for the additional 0.8 percent, his one percent carried the day. The 2014 story repeated itself exactly for 2015. The ECI for 2016’s raise indicated a 2.3 percent raise, but it will be a full one percent lower because neither Houses of Congress ultimately found the money. A 1.3 percent raise for 2016 will (Read the rest of the article…)



Navy SRB Guidance as of May 1, 2015

December 7, 2015

Released May 1, 2015 via NAVADMIN 106/15, the latest Selective Re-enlistment Bonus (SRB) guidance update.

How to do the math; SRB is calculated by multiplying your current basic military pay (times) number of SRB eligible months reenlisting for (divided by 12) then multiplied by the SRB award level for your zone. Zone A is 2 to 6 years, Zone B is 6 to 10 years and Zone C is 10 to 14 years of active service.

The following table reflects updates to NAVADMIN 106/15 (Read the rest of the article…)



A 1.3% Proposal for 2016

February 8, 2016

Today, February 2, 2015, President Obama released his budget proposal for fiscal 2016. The defense portion of the national budget would amount to $534 billion; roughly eight percent above that enacted for fiscal year 2015. But only a small portion of that increase will end up in the pockets of our Servicemembers.

Unless Congress can find the monies required, the (Read the rest of the article…)



Less Pay, More Work

April 3, 2015

In 2009, only a month after his Inauguration, President Obama released his first national budget proposal. The FY-2010 proposal included priorities he promised during his campaign; healthcare, education, clean energy, and for those in uniform, a few items that may have been unexpected.

While reviewing President Obama’s first budget proposal, it becomes apparent that his concern for the wellbeing of the nation’s military and its Veterans was also a priority.

For the Department of Veteran’s Affairs, the President’s budget proposal, “…provides the resources for effective implementation of the post-9/11 GI Bill”, and, more importantly, it (Read the rest of the article…)



Initial 2016 Pay Raise Indicator Released

April 3, 2015

This morning at 0830EST, the United States Employment Cost Index (ECI) was released. The releasing of the ECI by the United States Bureau of Labor Statistics is an eagerly awaited quarterly economic indicator for those in the stock market and politics; but what makes this morning’s release important to our military it that one of its indicators is used to determine any pay raise amount for 2016’s raise.

According to U.S. Code Title 37, that is how it is supposed to work unless the President determines that the state of the economy is such that he must intervene. For both 2014 and 2015, ECI dictated a 1.8% raise. For 2014, President Obama stepped in and followed the recommendation of the Department of Defense (DOD) to mandate just a one percent raise, and because Congress did not find the money in the budget to pay for the additional 0.8%, his one percent carried the day. The 2014 story looks to be repeating itself exactly for 2015. Without Congress finding the money in the budget to pay for the (Read the rest of the article…)



Navy SRB Guidance as of 10APR2014

August 10, 2015

NAVADMIN 081/14 has been superseded by NAVADMIN 106/15

Below is the latest Selective Re-enlistment Bonus (SRB) guidance update. Released April 10, 2014 via NAVADMIN 081/14. This is the first such update in more than a year.
(Read the rest of the article…)



2015 DoD Budget Released

October 20, 2014

Today, March 4, 2014, President Obama released his budget proposal for Fiscal Year 2015. This current budget proposal once again looks to reduce the amount of pay Servicemembers should be getting per U.S.C. Title 37. This will be two years in a row if the proposed 1% flies past Congress as it did last year.

From the President’s official release:

Since 2001, military pay and benefits have grown 40 percent more than in the private sector. The Budget proposes reforms to slow this cost growth, including changes to TRICARE, lower commissary subsidies phased in over time, and modestly slower growth in the Basic Allowance for Housing, while still providing a robust compensation and benefits system that honors the service of our men and women in uniform and their families. For calendar year 2015, the Budget provides a 1.0 percent increase to basic pay, a 1.5 percent increase in the Basic Allowance for Housing, and a 3.4 percent increase in the Basic Allowance for Subsistence. All of these changes have been recommended by the uniformed military leadership and are necessary to slow the growth in compensation and benefit costs in a responsible way and preserve funding needed for investments in platforms and readiness.

By what measure has there been a (Read the rest of the article…)



Navy SRB Guidance as of 26NOV2013

August 16, 2014

The following NAVADMIN DOES NOT announce changes in rates, SRB award levels, or the process for submitting a request.

(Read the rest of the article…)



Private Sector W&S at 1.8%, Again

October 20, 2014

Today, November 19, 2013, the United States Employment Cost Index (ECI) was released; yes, much later than normal — blame that on the recent government shutdown. Today’s release has the data that contains some important stuff for the serving Members of our military.

Up until this current year, it is the quarterly release that presidents have used to make a proposal for the military pay increases for over a decade in order to ensure our military member’s compensation keeps pace with that of the private sector. For 2014, President Obama, at the strong request of (Read the rest of the article…)



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