I 

108TH CONGRESS 

1ST SESSION H. R. 1885

To amend title 37, United States Code, to ensure that military pay increases 

are comparable to private sector pay growth, as measured by the Employment Cost Index. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 30, 2003

Mrs. DAVIS of California (for herself and Mr. SKELTON) introduced the 

following bill; which was referred to the Committee on Armed Services 

A BILL

To amend title 37, United States Code, to ensure that military pay increases are comparable to private sector pay 

growth, as measured by the Employment Cost Index.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Military Pay Com5 parability Act of 2003’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) One of the underlying principles of the all9 volunteer Armed Forces is the principle that military 
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1 pay increases must remain comparable to private 

2 sector pay growth, as measured by the Employment 

3 Cost Index. 

4 (2) The capping of military pay raises below 

5 private sector pay growth for extended periods dur6 ing the past 30 years has led to significant retention 

7 problems among second-term and career members of 

8 the Armed Forces. 

9 (3) Such retention problems cost the United 

10 States more in terms of lost military experience, de11 creased readiness, and increased training costs than 

12 maintaining the principle of pay comparability. 

13 (4) Since military pay was last deemed reason14 ably comparable with private sector pay in 1982, 

15 military pay raises have lagged a cumulative 6.4 per16 cent behind private sector wage growth, although re17 cent efforts of the President and Congress have re18 duced the gap significantly from its peak of 13.5 

19 percent in 1999. 

20 (5) Under existing law, while military pay in21 creases must exceed growth in the Employment Cost 

22 Index through fiscal year 2006, increases in subse23 quent years will be capped one-half percentage point 

24 below the Employment Cost Index, to the detriment 

25 of retention and readiness over the long term. 
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1 (6) The remaining so-called pay comparability 

2 gap should be eliminated as quickly as possible, and 

3 military pay increases must sustain full com4 parability with increases in the Employment Cost 

5 Index. 

6 SEC. 3. ANNUAL ADJUSTMENTS IN MONTHLY BASIC PAY 

7 FOR MEMBERS OF THE UNIFORMED SERV8 ICES. 

9 (a) ANNUAL ADJUSTMENT REQUIRED.—Section 

10 1009 of title 37, United States Code, is amended by strik11 ing subsections (a), (b), and (c) and inserting the following 

12 new subsections: 

13 ‘‘(a) REQUIREMENT FOR ANNUAL ADJUSTMENT.—

14 Effective on January 1 of each year, the rates of basic 

15 pay for members of the uniformed services under section 

16 203(a) of this title shall be increased under this section. 

17 ‘‘(b) EFFECTIVENESS OF ADJUSTMENT.—An adjust18 ment under this section shall have the force and effect of 

19 law. 

20 ‘‘(c) EQUAL PERCENTAGE INCREASE FOR ALL MEM21 BERS.—(1) Subject to subsection (d), an adjustment made 

22 under this section in a year shall provide all eligible mem23 bers with an increase in the monthly basic pay that is the 

24 percentage (rounded to the nearest one-tenth of 1 percent) 

25 by which the Employment Cost Index for the base quarter 
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1 of the year before the preceding year exceeds the Employ2 ment Cost Index for the base quarter of the second year 

3 before the preceding calendar year (if at all). 

4 ‘‘(2) Notwithstanding paragraph (1), but subject to 

5 subsection (d), the percentage of the adjustment taking 

6 effect under this section during each of fiscal years 2004, 

7 2005, and 2006, shall be one-half of one percentage point 

8 higher than the percentage that would otherwise be appli9 cable under such paragraph.’’. 

10 (b) PUBLICATION OF ADJUSTED RATES.—Subsection 

11 (e) of such section is amended—

12 (1) by striking ‘‘(e) NOTICE OF ALLOCA13 TIONS.—’’ and inserting ‘‘(e) NOTIFICATION AND

14 PUBLICATION REQUIREMENTS.—(1)’’; and 

15 (2) by adding at the end the following new 

16 paragraph: 

17 ‘‘(2) The rates of basic pay that take effect under 

18 this section shall be printed in the Federal Register and 

19 the Code of Federal Regulations.’’. 

20 (c) PRESIDENTIAL DETERMINATION OF NEED FOR

21 ALTERNATIVE PAY ADJUSTMENT.—Such section is fur22 ther amended—

23 (1) by redesignating subsection (g) as sub24 section (h); and 
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1 (2) by inserting after subsection (f) the fol2 lowing new subsection (g): 

3 ‘‘(g) EFFECT OF NATIONAL EMERGENCY OR SERI4 OUS ECONOMIC CONDITIONS.—(1) If, because of national 

5 emergency or serious economic conditions affecting the 

6 general welfare, the President determines that the pay ad7 justment otherwise required by this section for a year is 

8 inappropriate, the President may prepare a plan proposing 

9 such alternative pay adjustments as the President con10 siders appropriate. The President shall submit the plan, 

11 together with the reasons for the alternative pay adjust12 ments, to Congress before March 1 of the preceding year. 

13 ‘‘(2) In evaluating an economic condition affecting 

14 the general welfare under this subsection, the President 

15 shall consider pertinent economic measures including the 

16 Indexes of Leading Economic Indicators, the Gross Na17 tional Product, the unemployment rate, the budget deficit, 

18 the Consumer Price Index, the Producer Price Index, the 

19 Employment Cost Index, and the Implicit Price Deflator 

20 for Personal Consumption Expenditures. 

21 ‘‘(3) The President shall include in the plan sub22 mitted under paragraph (1) an assessment of the impact 

23 that the alternative pay adjustments proposed in the plan 

24 will have on the ability to recruit and retain well-qualified 

25 members of the uniformed services. 
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1 (d) DEFINITIONS.—Such section, as amended by sub2 section (c), is further amended by adding at the end the 

3 following new subsection: 

4 ‘‘(i) DEFINITIONS.—In this section: 

5 ‘‘(1) The term ‘Employment Cost Index’ means 

6 the Employment Cost Index (wages and salaries, 

7 private industry workers) published quarterly by the 

8 Bureau of Labor Statistics. 

9 ‘‘(2) The term ‘base quarter’ for any year is the 

10 three-month period ending on September 30 of such 

11 year.’’. 

12 (e) CONFORMING AMENDMENT.—Subsection (d)(2) 

13 of such section is amended by striking ‘‘in the General 

14 Schedule rates of basic pay for civilian employees.’’ and 

15 inserting ‘‘in the rates of monthly basic pay under this 

16 section.’’.

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