The History of Military Pay Raises
Military pay raises have been debated throughout American history. During and after the Revolutionary War, the Continental Congress passed rudimentary laws regarding service pensions, which were administered by individual states. However, as the nation grew, the federal government developed and authorized the first major pension plan for Revolutionary War veterans and their families. Since that plan's early framework, modifications to the military compensation system have continued.
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History
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1932 presidential campaign poster. One modification occurred in 1848 when Congress approved life pensions for widows of Revolutionary War veterans married before 1800. In 1861, 13 years after Congress proposed initiatives for Revolutionary War veterans, the Civil War began. Both Confederate and Union soldiers were to be paid at the end of every month, but the pay schedule depended on how quickly the postmaster traveled. Army monthly pay for Confederate privates was $11 and $13 for Union privates.
Efforts to increase military pay along with inflation have, for long periods of time, not been sustainable. However, in 1917 Congress passed legislation for a 100-percent pay raise for privates based on the minimum standard of living at the time. Historically, military pay depended on many factors and conditions. During the depression in the 1930s, President Franklin D. Roosevelt cut military pay by 15 percent as part of a plan to reduce federal spending.
Benefits
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After World War II, Congress authorized the Hook Commission to assess military compensation. The commission's findings led to the Compensation Act of 1949. The act became the first major legislation in 40 years to dramatically change the military compensation system. The new law increased military pay 18.8 percent, matching the average for industrial wages. The act also introduced criteria based on rank, the amount of time served, special rewards, incentives, bonuses and reimbursements.
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Effects
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As the nation responded to different situations, the military needed to adjust its infrastructure. During the Cold War, from 1945 to 1991, the nation maintained a standing military (full-time career soldiers). The draft, however, ended in 1973, after the United States withdrew from Vietnam. This prompted Congress in the early 1980s to pass two pay increases, amounting to a total of 25 percent. Because there was no longer a draft, incentives had to be implemented to recruit, retain and produce a quality all-volunteer force. Whether it was a time of peace or war, the nation's all-volunteer force needed to consist of qualified personnel ready for action at a moment's notice.
Considerations
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Historically, military pay raises coincided with wage earnings in the private sector. The Bureau of Labor Statistics' uses the Employment Cost Index (ECI) to adjust military wage increases. But, according to the MOAA (Military Officers Association of America), the gap between military and private-sector wages accumulated from 1972 to 2010 is at minus 2.4 percent. Some studies indicate criteria based on rank, the amount of time served, special rewards, incentives, bonuses and reimbursements, as outlined in the Compensation Act of 1949, narrow or eliminate the minus 2.4 percent gap. However, others argue that because of ongoing policy changes and the military's required recruitment and retention levels for high quality military personnel, the Act of 1949 is outdated and needs re-evaluation.
Prevention/Solution
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Guidelines are used to determine special incentive pay for certain military personnel. Those with specialized skills that are highly sought after in the civilian labor markets such as doctors, aviators, engineers and nuclear power officers, qualify for special pay compensation as do service members exposed to hazardous duties such as parachuting, flight-deck duty and demolition. But according to a 2001 article "the Navy's use of Special and Incentive Pays: Sailing Away from Jointness" by Marine Col. Drew A. Bennett, the amount of pay is disproportionate among the various service divisions. Bennett writes: "It is impossible to justify to Army, Air Force and Marine Corps officers who have endured as much, and in some cases more, hazard, hardship and command responsibilities, why they are worth as much as $143,340 less than their Navy counterparts. While the numbers are different, and command pay is not an issue, the same argument is valid for enlisted personnel."
Conclusion
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Bennett's 2001 essay proposes a re-examination of the military compensation system. Unlike Bennett's perspective, which questions a gap between the military branches, MOAA compares the difference between military and private sector wages. In 2003, the Department of Defense and other government agencies introduced the initiative "Forward Compatible Military Pay" to address claims about an outdated and inconsistent military pay system. Moreover, Congress in 2007 and 2008 approved military raises exceeding the ECI and is currently proposing a 3.9 percent increase for 2009-2010. As history demonstrates, military compensation will continue to be examined, reviewed and debated among policymakers representing a variety of constituencies.
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References
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- Photo Credit Image by Flickr.com, courtesy of Beverly Image by Flickr.com, courtesy of Tony
