Hearing of the Military Personnel Subcommittee of the House Committee on Armed Services: Fiscal Year 2009 National Defense Authorization Budget Request on Overview of Recruiting, Retention and Compensation

Interview

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REP. JOE WILSON (R-SC): Thank you, Madame Chairman.

And thank all of you for being here, Mr. Secretary, Generals, Admiral. I really want to thank you, because it's my view that the opportunities that you provide for young people are unparalleled, and I say this as a veteran myself of 31 years. I have four sons who have served in the military, two who have served in Iraq. And by having military service, I know I, I know they have received the best of education -- and Admiral, I do have a graduate of the Naval Academy. And I just am grateful for the educational opportunities, the travel opportunities, the opportunity to meet people within the military, out of the military, to have lifelong friends. People are very capable and patriotic and you're providing that opportunity.

I also know this because I represent the bases of Fort Jackson; I'm very proud of Parris Island, General, and I'm very proud of the Marine Air Station and the Beaufort Naval Hospital. When we visit these facilities, when we visit our troops overseas in Iraq, Afghanistan and around the world, we go to maybe inspire them, but they inspire us. So again, thank you for the opportunities presented.

I do have an interest, Secretary Chu, that you just touched on in regard to retention by way of maintaining the wonderful people who serve in the Guard and Reserve. And there has been a real question about the age of retirement. Currently it's 60. There are different proposals that I have supported that it would go straight to 55 due to the seamless nature of the active forces in Guard and Reserve.

Additionally, I have supported, and you touched on it, and that is persons who serve over 20 years, and that is that for every two years they served there would be a reduction of one year from the time of retirement. Additionally, there has been an effort which was partially successful last year, and that is to reduce the age of 60 by the period of deployment.

And the opportunity has now been created where it can be reduced. Unfortunately, it was proactive rather than retroactive for the conflict that we're in, and indeed, we all, both political parties here, want to assist you with the success that you've had with recruiting and retention. But what would be your comments about how can we help you reduce the retirement age for Guard and Reserve?

MR. CHU: Thank you for raising that issue, I know it's been a matter of great concern to the reserve community for some years. I'll be plain.

The department has not been enthused about proposals to lower the age at which reserve members would be eligible for an annuity from age 60. Our calculations, supported by a lengthy study by the RAND Corporation, are that it would actually reduce overall retention in the Reserve, not increase it. That all said, the chairwoman in her opening remarks did raise what is really the fundamental issue. Is the whole retirement program, active and reserve, in the right place as we go forward in the 21st century? That's a very fundamental question.

I'm not saying that we have endorsed that proposal in the department. I do think it is the meritorious subject of an extended debate. It is a subject that the second volume of the Quadrennial Review of Military Compensation, now ongoing, will take up. And I would hope we'd put any further changes to reserve retirement into that larger debate rather than trying to debate it separately. I think there's a real risk, if you take just a piece of the retirement system, because it is so central to how careers are shaped in the military, and start changing it. You'll have a number of unintended adverse consequences that will require new Band-Aids to fix. So I think if we're going to deal with retirement, we ought to do so in a holistic way, not a piece at a time.

REP. WILSON: Well, as you look at it, and I'm somewhat astounded that researchers have come to the conclusion that they came to, because knowing my colleagues who have served or are serving, it would be such a great incentive for them to remain longer. These are trained personnel, dedicated, physically capable. It's just a real gold mine that I'm sure persons who want to serve and what a great incentive to provide them with a retirement program similar to the active forces.

And again, thank all of you for the opportunities that you provide for the young people of our country, and I yield the balance of my time.

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