http://www.military.com/daily-news/2013/11/05/hagel-says-cuts-to-pay-and-benefits-are-needed.html?ESRC=dod.nl


Hagel Says Cuts to Pay and Benefits are Needed

Nov 05, 2013

Military.com| by Richard Sisk

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[image: csis hagel 428x285]

Defense Secretary Chuck Hagel warned Tuesday that troops and their families
will be asked to sacrifice on pay and benefits to preserve readiness in an
era of tighter budgets.

Hagel listed politically-charged changes to compensation and personnel
policy as one of his top six priorities in reforming the military following
the wars in Iraq and Afghanistan as the department gears up to meet new
challenges.

"This may be the most difficult" to achieve among his six priorities, Hagel
said of proposals to trim pay increases, overhaul TRICARE and review
retirement benefits while adapting to cuts in personnel.

"Without serious attempts to achieve significant savings in this area,
which consumes roughly half of the DoD budget and is increasing every year,
we risk becoming an unbalanced force," Hagel said.

The alternative was to have a military that is "well-compensated, but
poorly trained and equipped, with limited readiness and capability," Hagel
said in a keynote address to a Global Security Forum 2013 sponsored by the
Center for Strategic and International Studies.

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Hagel acknowledged the need to get approval for changes to compensation and
personnel policy from members of Congress, who would be reluctant to
justify military pay cuts to voters back home.

At a CSIS panel on defense budgets following Hagel's address, Jim Dyer,
former staff director for the House Appropriations Committee, said he saw
"no movement on pay, or to address TRICARE costs" in the current political
environment.

"Congress is not there on this yet," Dyer said. "They're too determined not
to hurt the troops," or their own chances for re-election, Dyer said.

In his 35-minute speech , Hagel said his  strategic vision for the
department's future constantly had to be balanced against the uncertainty
of funding. The overall goal, given the political gridlock in Congress,
involved a tradeoff on shrinking the size of the military to maintain
investments in new weapons and cyberwarfare capabilities, Hagel said.

"Destructive technologies and weapons that were once the province of
advanced militaries are being sought by non-state actors and other
nations," Hagel said. "This will require our continued investment in
cutting-edge defensive space and cyber technologies, and capabilities like
missile defense, as well as offensive technologies and capabilities to
deter aggressors and respond if we must.".

The degree of difficulty in the task increased exponentially under the
budget cuts, Hagel said. The Defense Department is "currently facing
sequester-level cuts on the order of $500 billion over 10 years. This is in
addition to the ten-year, $487 billion reduction in DoD's budget that is
already underway."

"These cuts are too fast, too much, too abrupt, and too irresponsible,"
Hagel said. "DoD took a $37 billion sequester cut during the past fiscal
year, and we could be forced to absorb a $52 billion sequester cut this
fiscal year."

Yet, Hagel said he remained committed to his six priorities "for our budget
and strategic planning efforts going forward" -- institutional reform,
force planning, readiness, investments in emerging capabilities, balancing
capacity and capability, and balancing personnel responsibilities with a
sustainable compensation policy.

Hagel also echoed the themes of former Defense Secretary Robert Gates and
former Secretary of State Hillary Clinton, who reached a consensus on
foreign policy that combined the soft power of diplomacy and development
with the hard power of the military to achieve what they termed "smart
power." Hagel said

"We will need to place more of an emphasis on civilian instruments of
power," Hagel said.




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