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Capping Retired Pay for Senior Field Grade Officers: Force Management, Retention, and Cost Effects : RAND Corporation , 2018


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From the preface: "The Senate Armed Services Committee (SASC) directed the Secretary of Defense to conduct a study on the advisability and feasibility of reforming the 40-year pay table and retirement benefit to cap retired pay in certain ways. The committee expressed concern about findings from a 2016 U.S. Department of Defense (DoD) review that found that the most significant increases since 2007 in personnel with more than 30 years of service were not among general and flag officers and senior noncommissioned officers, but among field grade officers in the grades of O-4 to O-6, though the former group, not the latter, was the target of military compensation legislation in 2007 to increase incentives to serve for longer careers in the military. The SASC requested that the study consider the retention, cost, and force management effects of policies that cap retired pay based on the highest grade achieved, including a policy that would not allow officers with prior enlisted service to use their noncommissioned service to increase their retired pay."



Asch, Beth J., Hosek, James, Mattock, Michael G., Tong, Patricia K.


RAND Corporation


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