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Tuesday, June 1, 2010

Congress struggles with 2011 Military Pay Increase Amount

According to Air Force Times, the U.S. Senate approved a pay raise of 1.4% at the end of May, less than the 1.9% recommended by the House Armed Services Committee, but in line with the recommendation by the White House and the Pentagon. Regarding pay increases, Secretary of Defense Robert Gates has said that the personnel costs were consuming a large portion of the budget, and that the proposed pay increase significantly exceeded the rate of inflation. Over time, the .5% difference will mean billions of dollars in additional costs to the DoD for retiree entitlements.

What does this mean to military members? An O-3 with 8 years of service will see an extra $75 in his/her paycheck next January. If the full 1.9% is approved, it'll be closer to $100. Add either amount to your TSP contribution and forget about it.

2 comments:

huntb said...
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智宜 said...
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