Personnel and Readiness

Personnel and ReadinessCurrent Issues

Dr. David S. C. ChuUnder Secretary of Defense(Personnel and Readiness)

March 9, 2007

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Assumptions

• We are engaged in a long, irregular war• The All Volunteer Force is our paradigm• Cost of manpower will rise more rapidly

than budget• We will complete transition to an

Operational Reserve• Civilians can play a larger role• Operations will be integrated• Geographic focus is on Mideast,

South/Southeast Asia, East/Northeast Asia

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Military Compensation

• 9th QRMC: identified significant gap in military member’s regular military compensation

• Goal: ensure military pay would be equal to the 70th percentile of earnings for private sector employees with comparable education and experience

• FY2000/2001/2002: Congress makes annual pay raises equal to ECI + 1/2% / targeted raises are introduced / President adds $1B to mil pay

• FY2001-2004: officer pay gap closed and 73% of enlisted gap • 2006: 97% of enlisted pay gap closed

• Combination of increase in basic pay (ECI + ½) & substantial increases in BAH

• 2007 raise eliminated the gap• 2.2% across-the-board pay raise • Targeted pay raises for mid-grade and senior enlisted as well as

warrant officers. • Expanded military basic pay table from 30 to 40 years of service

• 2008 proposed basic pay equals ECI (3% across the board)

4Defense Advisory Committee on Military

Compensation Recommendations

• Change non-disability retirement system (i.e. vesting)

• Revamp Basic Pay table to better reward performance and to support longer career profiles where desirable

• Change housing allowances/other allowances (remove discrepancies in pay unrelated to performance)

• Consolidate and simplify Special and Incentive Pays

• Revise the health benefits for retirees -- more closely align benefit’s value to retiree with its cost to the Department of Defense

• Periodically evaluate of quality-of-life programs to ensure they are cost-effective and adequate

• Review Reserve Component pay/benefits to ensure equality to Active Component members

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Personnel Costs* vs. DoD Topline

* Source: OUSD(C) and WHS, excludes costs not on the DoD budget (e.g., VA)** Source: WHS, which categorizes contracts as Procurement, RDT&E, or Services*** Retirement, DHP, Family Housing

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DoD Topline

Military Benefits***

MilPers

CivPay

Active Duty Endstrength

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• Transform Department civilian human resources management system

• Advance DoD’s critical national security mission

• Respond swiftly and decisively to national security threats and other missions

• Accelerate DoD’s efforts to create a Total Force

• Retain and attract talented and motivated employees committed to excellence

• Compensate and reward employees based on performance and mission contribution

• Expand DoD’s ability to hire more quickly and offer competitive salaries

Making Civilians a Stronger Partner – National Security Personnel System (NSPS)

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Major Design Elements of NSPS

Human Resources (HR) System• Classification - Simple, flexible pay banding structure• Compensation - Performance-based, market-sensitive• Performance Management - Linked to agency mission; results oriented;

annual pay increase based on performance rating• Staffing – more flexible authorities to allow SECDEF to act quickly to

respond to mission needs: the right person, in the right place, at the right time

• Workforce Shaping - Streamlined, mission-responsive reduction in force procedures

Adverse Actions and Appeals - Enjoined• Mission oriented disciplinary system with streamlined processes to

quickly resolve disputes

Labor Relations System - Enjoined• Collective bargaining approach that recognizes unique national security

mission of DoD• Reduced scope of bargaining• Streamlined bargaining process aimed at quicker resolution of labor

disputes and focus on mission

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2,251,9362,130,229

1,384,968

825,985918,970

1,170,560

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DoD Active ComponentDoD Reserve Component (SelRes)

FY 1973 – FY 2006AC: - 38.5%RC: - 10.7%

The Role of the Reserve ComponentsDoD End Strengths

( FY73 – FY06)

Reductions from PeaksAC: - 38.5% (FY 1973 – FY 2006)RC: - 29.9% (FY 1989 – FY 2006)

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Reserve Force Mobilization StatisticsCurrent Selected Reserve Members Ever Mobilized for ONE/OEF/OIF

Data as of: Feb 28, 2007

Members Mobilized Once for ONE/OEF/OIF

301,111Members Not Mobilized

for ONE/OEF/OIF

447,543

Members Who Served More than Once in

ONE/OEF/OIF

74,458

Not Mobilized – 54.4%Mobilized – 45.6%

Total Members currently serving in the SelRes 823,112

Total members mobilized for ONE/OEF/OIF 375,569 45.6%

Total members who have served once in ONE/OEF/OIF 301,111 36.6%

Total members who have served more than once in ONE/OEF/OIF 74,458 9.0%

Total members not mobilized for ONE/OEF/OIF 447,543 54.4%

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An “Operational” Reserve

Concept:

The new guard and reserve will be organized, trained and equipped to support operational military mission requirements to the same standard as the Active component. Individuals and units will be tasked to prepare for and participate in missions, across the full spectrum of operations, in a cyclic or periodic manner that provides predictability for service members and their families and employers.

Key attributes:• Limits involuntary mobilization to predictable and sustainable rates (e.g., one year in every six) • Reduces the need for involuntary mobilization during the early stages of a rapid response operation• Provides a range of participation opportunities and enhances volunteerism

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A New Readiness Paradigm:Are Forces Ready for Assigned Missions?

Notional Data

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From:• Unit status• Inputs / resources• Deficiencies• Service centric• Periodic• Multiple reports /

systems

Defense Readiness Reporting System Represents a Real Change…

To:• Mission assessments• Outputs / capabilities• Their implications• Joint centric• Continuous• Enterprise views

Unclassified

Answers Ready for What?Unclassified

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Family Support: Ten Key State IssuesIssue Evaluation Criteria

Care of the Guard and Reserve

National Governors Association (NGA) quantifies state support into six categories: state employee support; education assistance; tax and financial benefits; family support; licensure, fees and registration; and protections, recognition and employment support.

Severely injured supportStates are facilitating the continued support for the severely injured and their families as they transition to local communities.

In-state tuition Allow where assigned, and allow continuance of in-state rates upon reassignment.

School transition of military children

Addressing solutions for the best educational opportunities for military dependent children. Five criteria: kindergarten age and immunization requirements, transfer of records/coursework, redundant/missed entrance/exit testing, incompatible graduation requirements

Spouse employmentImprove ability for spouses to obtain/transfer teaching and nursing licenses.  Use American Board for Certification of Teacher Excellence (ABCTE) and Spouses to Teachers (STT) as the measures for teach and the Nurse Licensure Compact (NLC) for nurses.

Unemployment compensation

State eligibility for unemployment compensation for trailing military spouses.

Payday lendingLimit to double-digit annual interest rates, longer minimum payment periods and restrictions on rollovers and multiple loans can cut the cycle of debt.

Overseas Voter Assistance

9 specific guidelines: 45-day ballot transit time, elimination of the notary requirement, late registration procedures, special state write-in absentee ballot, reference to the Uniformed and Overseas Citizens Absentee Voting Act in the state election code, electronic transmission of election materials, expanded use of the federal write-in absentee ballot, emergency authority for chief election official, enfranchise citizens who have never resided in the U.S.

Foreign Language Support

Childcare for Guard and Reserve

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Governors’ Scorecard

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Number in state/territory represents the ranking by size of total force and families residing within the state.

States/territories meeting at least 75 percent of criteria

States/territories meeting between 50 – 74 percent of criteria

States/territories meeting less than 50 percent of criteria

VT51

NH50

MA34

RI48

CT38

NJ25

DE44

MD8

GU52

PR42

VI53

AS54

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Defense Language & Culture Transformation

“Experiences and education that contribute to broader

cultural awareness and enable better communication in a global operating environment are crucial underpinnings to support strategic national interests.”

Deputy Secretary of Defense Memo

August 3, 2006

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Defense Language & Culture Transformation

• Service Academies• Expanded study abroad, summer immersion and foreign academy

exchange opportunities • Adding instructor staff for strategic languages

• USMA & USAFA requiring at least two semesters of language study; USNA established two new language majors of strategic interests

• Service ROTC Programs• Embedded cultural awareness studies in ROTC curricula• Developed pilot program to provide select ROTC schools grants to

enhance language programs of strategic importance

• Units are encouraging ROTC cadets to take language electives, when available and feasible

Pre-accession focus provides a language and cultural foundation

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Defense Language & Culture Transformation

• Using Foreign Language Proficiency Bonus (FLPB) to encourage change• Authorized up to $500 per month in one language and

$1,000 per month for high levels of proficiency in multiple strategic languages

• Achieved parity for Action and Reserve components

• It’s working -- pool of language skilled personnel is larger to meet operational needs. . .• June 2006, a sailor contacted the Navy Foreign Language

Office to inquire about FLPB and self-professed his skill in Uighur

• Proficiency testing validated his skills in Uighur, Mandarin Chinese, and Uzbek

• He volunteered and is now deployed using his language skills

Incentivizing personnel to self-report, maintain, and improve skills

Personnel and Readiness

QUESTIONS