Military Personnel: Reserve Compensation Has Increased Significantly and is Likely to Rise Further as DOD and VA Prepare for the Implementation of Enhanced Educational Benefits
Abstract
We estimate that total federal compensation for reservists grew by about 25 percent, from about $18.5 billion in fiscal year 2001 to nearly $23.1 billion in fiscal year 2007 in constant fiscal year 2009 dollars. Per capita compensation for part-time reservists, who comprise about 91 percent of the reserve force, increased nearly 52 percent, from $14,400 in fiscal year 2001 to $22,000 in fiscal year 2007.12 Per capita compensation for full-time reservists increased about 13 percent, from $107,000 in fiscal year 2001 to $121,000 in fiscal year 2007. Of the three cost areas that comprise compensation-cash, noncash, and deferred-deferred compensation costs, such as retiree health care and pensions, grew the fastest, increasing by nearly 28 percent. Cash compensation costs, such as pay and bonuses, grew by nearly 24 percent, while noncash benefits, such as health care and education, increased by about 21 percent. Further, the growth in reservists-compensation is expected to increase more with the implementation of the Post 9-11 VEAA beginning in August 2009 because it will provide more generous education benefits than existing benefits to qualifying servicemembers and veterans of the armed forces. VA estimates that the net cost of the Post 9-11 VEAA will be nearly $78.1 billion from fiscal years 2009 to 2018, of which $12.3 billion will fund benefits for reservists and their eligible family members. Congress appropriated $746 million more than the VA's fiscal year 2009 budget request to reflect the partial-year cost of the Post 9-11 VEAA. According to a VA official, the Post 9-11 VEAA will require $2.1 billion in obligations in fiscal year 2009. Of the VA requested appropriation, $7.1 billion funds the Post 9-11 VEAA program in fiscal year 2010.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 06, 2009
- Accession Number
- ADA501944
Entities
People
- Adam L Smith
- Brenda S. Farrell
- Charles Perdue
- Elizabeth Mcnally
- George Scott
- Grace Coleman
- John Van Schaik
- Nicole Harms
- Patrick Dibattista
- Pawnee A. Davis
- Terry Richardson
- Tim Carr
- Tracy Burney
Organizations
- United States Government Accountability Office