Tweaking Military Compensation

The 11th Quadrennial Review of Military Compensation, released June 21, found that, in general, pay for service members “compares favorably” with similar civilian wages. However, the Pentagon needs to revamp its combat compensation to ensure those who are serving in the most hostile areas receive higher compensation than those in less hazardous environments, according to a Pentagon release summarizing the findings. “The QRMC concluded that the relationship between combat compensation and the degree of danger to which a member is exposed has eroded, with members most likely to be exposed to the hazards of combat receiving the smallest benefit,” states the release. In addition to restructuring combat pay, the report recommended that the Defense Department replace the Combat Zone Tax Exclusion with a refundable combat tax credit and a refundable direct support tax credit, states the release. (Eleventh QRMC full report; caution, large-sized file.)