Analysis of a time-in-grade pay table for military personnel and policy alternatives / Beth J. Asch, Michael G. Mattock, Patricia K. Tong.

Format:

Book

Author/Creator:

Asch, Beth J., author.

Mattock, Michael G., 1961- author.

Tong, Patricia K., author.

Language:

English

Subjects (All):

United States--Armed Forces--Pay, allowances, etc.

United States.

Armed Forces.

Physical Description:

xvi, 114 pages : illustrations ; 28 cm

Place of Publication:

Santa Monica, Calif. : RAND Corporation, [2021]

Summary:

Federal law mandates that every four years the Secretary of Defense conduct an assessment of the military compensation system, resulting in a Quadrennial Review of Military Compensation (QRMC). In response to this request articulated in Section 603 of the Senate Armed Services Committee version of the National Defense Authorization Act of 2019, the 13th QRMC is providing an assessment of the effects of a time-in-grade pay table for military personnel, particularly on readiness. A time-in-grade pay table would set pay based on pay grade and years of service within a grade, in contrast to the current time-in-service pay table, which sets pay based on pay grade and years of service inthe military.

Contents:

Machine generated contents note: ch. One Introduction

Research Questions and Approach

Previous Commission and Study Group Findings

How This Study Builds on and Extends Past Efforts

Organization of This Report

ch. Two A Time-in-Grade Pay Table and Estimates of Basic Pay over a Career

Effects on Pay of Time in Grade for Members with Differing Promotion Times

Warrant Officers with Prior Service

Commissioned Officers with Prior Enlisted Service

Lateral Entry

Summary

ch. Three Extending the Dynamic Retention Model to Analyze the Effect of a Time-in-Grade Pay Table

Extending the DRM Mathematical Structure to Account for Promotion

Estimation Methodology

Data

Model Estimates and Model Fits for Officers

Model Estimates and Model Fits for Enlisted Personnel

Simulation and Extension of the DRM to Model a Time-in-Grade Pay Table

Incorporating Performance into the Dynamic Retention Model Simulation Capability

ch. Four Simulated Effects of a Time-in-Grade Pay Table on Retention, Performance, and Cost

Conceptual Framework: How the Time-in-Grade Versus Time-in-Service Pay Table Might Affect Retention, Performance, and Effort Supply

Simulated Effects on Retention and Ability Sorting of the Time-in-Grade Versus a Time-in-Service Pay Table

Exploratory Analysis: Simulated Effects on Effort Supply of the Time-in-Grade Versus Time-in-Service Pay Table

ch. Five Transition Costs and Save Pay

Transition Effects on Member Pay

Save Pay

ch. Six Two Alternative Performance-Based Policies Under a Time-in-Service Pay Table

Constructive Credit for Faster Promotion

Skill-Based or Credential Pay

ch. Seven Variation in Time to Promotion and Its Impact on Basic Pay

Variation in Time to Promotion Across the Services

The Effect of Variation in Time to Promotion on Variation in Basic Pay

The Extent to Which Variations in Time to Promotion Are Attributable to Observed Factors

Implications for Differences in Basic Pay Under the Time-in-Service Versus the Time-in-Grade Pay Table

ch. Eight Discussion and Conclusions

Advantages of The Time-in-Grade Pay Table

Disadvantages of The Time-in-Grade Pay Table

Could the Advantages of the Time-in-Grade Pay Table Be Fully Achieved with a Time-in-Service Pay Table?

Closing Thoughts

APPENDIXES

A. Time-in-Service Pay Table for January 2018

B. Derivation of the First-Order Conditions for Optimal Effort

C. Probability of Being Promoted, by Service and Occupation.

Notes:

Includes bibliographical references (pages 111-114).

ISBN:

1977405835

9781977405838

OCLC:

1222055769