OnWatch is a quarterly newsletter of the Fleet Reserve
Association
OnWatch January ,2025
14th QRMC Report
The 14th Quadrennial Review of Military Compensation (QRMC), conducted every four years, plays a critical role in ensuring that U.S. military personnel are compensated fairly and competitively. The review assesses the military’s compensation system, comparing it with civilian pay to attract and retain top talent. This year's review aligns with President Biden's directive to modernize the compensation system, addressing both financial needs and the quality of life for service members.
Core Findings:
- Competitive Pay: Military compensation is strongly competitive with the civilian labor market. Enlisted personnel earn more than 82% of their civilian counterparts with similar education and experience, and officers earn more than 75%.
- Need for Improved Pay Predictability: There is a need to reduce pay volatility, which would help service members better plan their finances and improve overall morale.
- Effectiveness of Noncash Compensation: Targeted noncash compensation, such as housing allowances and child care incentives, provides significant value to service members and their families, often more effectively than broad pay increases.
Recommendations:
- Update Regular Military Compensation Benchmark: Increase the benchmark from the 70th to the 75th percentile to maintain competitive pay relative to the civilian market.
- Enhance Communication of Total Compensation: Improve communication with service members regarding their total compensation package, including benefits such as health care and housing allowances.
- Improve Recognition for Lateral Entrants: Enhance recognition of prior civilian experience for lateral entrants to better integrate skilled professionals into the military structure.
- Revise Basic Allowance for Housing (BAH) Calculations: Update BAH calculations to better reflect current housing market conditions.
- Adjust Cost-of-Living Allowance Rates: Update methods for calculating cost-of-living adjustments for both domestic and overseas service members.
- Review Deployed Entitlements Regularly: Conduct a review of deployed entitlements every five years to ensure they remain appropriate and effective.
- Explore Retirement Savings Options for Spouses: Investigate additional retirement savings options to support military spouses and enhance financial security for military families.
- Implement Regular Quality-of-Life Reviews: Establish regular reviews to assess areas such as housing, health care, child care programs, and other services that impact the quality of life for service members and their families.
The Fleet Reserve Association (FRA) continues to strongly support the QRMC process, recognizing its importance in monitoring and improving military compensation and quality of life. As an advocate for service members, the FRA helps ensure that military personnel are fairly compensated for their sacrifices. By supporting the QRMC’s findings and recommendations, the FRA helps ensure that service members' financial and personal well-being are prioritized.
The Department of Defense has accepted the QRMC’s recommendations, and many will require congressional support for full implementation. As these initiatives are rolled out over the coming years, they aim to improve the financial stability and quality of life for service members, ensuring that the U.S. military remains a strong and effective force.
For more information, you can read the full report and learn more about the Fleet Reserve Association's continued efforts to support military personnel.
https://www.defense.gov/News/News-Stories/Article/Article/4029212/quadrennial-review-helps-ensure-troops-are-paid-competitively/
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ABOUT ONWATCH
OnWatch is a quarterly news update for active duty and Reserve personnel, written by Theo Lawson. He served 8 years total reserve and active duty in the United States Marine Corps and has a personal interest in these matters. As the assistant director of Legislative Programs for the Fleet Reserve Association (FRA), he’s also committed to FRA’s mission to maintain and improve the quality of life for Navy, Marine Corps and Coast Guard personnel and their families. He looks forward to keeping you up to date on FRA’s legislative efforts to protect and enhance your earned military and veterans’ benefits.