GAO: Military Jobs Could Be Civilian

THE DAILY FED

GAO: Military Jobs Could Be Civilian

The total compensation package for a military officer can be thousands of dollars greater per year than the compensation package for a civilian equivalent.

At the top of the scale, an officer ranked O-6 receives $11,044 more annually than a civilian at GS-15. On the other end, an 0-1 officer earns $1,261 more than a GS-7 equivalent working the same type of job.

Studies by the various services suggest even higher savings than the estimated $95 million are possible. The Air Force determined that 12,473 positions could be converted into civilian posts and the Army identified 6,100.

The Defense Department has been slow to convert officers' jobs as it attempts to reduce the number of civilians employed by the agency by 26 percent in the next five years.

In another report, the GAO said the military retirement system could be an obstacle to achieving a force of the right size and composition because the system provides the same career length incentive for all categories of personnel. As the retirement system stands now, enlisted personnel who serve for 20 years receive an annual annuity as soon as they retire. Seventy percent of enlisted personnel and 90 percent of officers with 10 years of service remain in the military until they qualify for retirement benefits. The Defense Department is reluctant to change the retirement system out of the concern that personnel and their families are depending on their benefits. Any changes to the system would apply only to new entrants. Proposals include placing military personnel under a retirement plan similar to FERS or offering some lesser retirement benefit to members serving fewer than 20 years.