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TOPICS
Web site explains military pay, TSP changes
The Defense Department has posted a new site on
the World Wide Web that explains the military pay changes taking
effect Jan. 1, including the 4.8 percent pay raise.
Pay2000 (pay2000.dtic.mil) provides details on the January pay raise and briefly covers new retirement options; the
Thrift Savings Plan that would allow service members to
build a retirement nest egg; special pay and incentive pay
improvements; and new rules on housing allowances, temporary
lodging expenses and leave sell-back. The site also offers
a means to provide e-mail feedback.
According to Thomas Tower, an assistant director for
compensation in the Office of the Undersecretary of Defense for
Personnel and Readiness, user feedback will contribute to the
site's providing more in-depth information during its second
phase, expected to go online by mid-November. The third stage,
toward the end of this year, will be interactive and allow
service members to calculate and compare retirement choices they
have after 15 years' active duty, he said.
The option of choosing retirement plans is one of the most
important improvements to military pay according to Tower.
"Members now have a choice of retirement plans, including a
reduced monthly payment with a $30,000 lump sum payment at 15
years or a higher annuity at 20 years, " he said. Those who
elect the lump sum payment at 15 years are still required to
serve on active duty through their 20th year, he said. "We will
provide financial comparisons of what they can save."
Pay2000 doesn't duplicate information like pay tables that are
available on the Defense Finance and Accounting
Service Web site
information pertaining directly to compensation issues in the
fiscal 2000 Defense
Authorization Act,
DFAS site contains more standardized information.
"The message we want to convey is that military compensation has
been dramatically improved," Tower said. "A military career is a
more attractive option, particularly in relation to the private
sector, because service members each year will get a .5 percent
higher pay raise than the private sector."
Defense Secretary William S. Cohen called the pay changes an
"investment in our warriors" at the signing of the defense
authorization act Oct. 5
he said, "but we can pay you more. And that is precisely what
this bill is going to do."










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