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TESTIMONY OF
LTG FRANKLIN L. HAGENBECK
DEPUTY CHIEF OF STAFF G1
UNITED STATES ARMY

BEFORE THE
HOUSE ARMED SERVICES COMMITTEE
SUBCOMMITTEE ON TOTAL FORCE
UNITED STATES HOUSE OF REPRESENTATIVES

 March 24, 2004
 

Congressman McHugh, Congressman Snyder, distinguished Members of the Committee, thank you for the opportunity to appear before you today on behalf of America's Army.  The centerpiece of what we do as an Army is the Soldier.  For those brave men and women, I want to express my sincere gratitude for your continued and committed support.   As I speak to you today, the Army has embarked upon the largest movement of Soldiers in our history. More than 250,000 soldiers will move in and out of the Iraqi theater in the next four months.  What will remain constant however is more than 300,000 soldiers deployed to more than 120 countries. Our Soldiers and Department of Army Civilians remain fully engaged across the full spectrum of the globe and we remain committed to fighting and winning the Global War on Terrorism.

The Army continues to face and meet challenges in the Human Resources Environment.  In recent years, Congressional support for benefits, compensation and incentive packages has ensured the recruiting and retention of a quality force.    Today, I would like to provide you with an overview of our current military personnel policy and the status of our benefits and compensation packages as they relate to maintaining a quality force.

RECRUITING

The continuing Global War on Terrorism and engagements around the globe are our first sustained combat operations with our 30 year-old all-volunteer force. Recruiting the Soldiers who will fight and win on the battlefield is critical.  These young men and women must be confident, adaptive, and competent; able to handle the full complexity of 21^st century warfare in this combined, joint, expeditionary environment.  We are in a highly competitive recruiting environment; competing with industry, post-secondary institutions and other services for the country's high-quality young men and women.

We have been successful. The active Army and Reserves met their recruiting goals in fiscal year 2003. The Active Army is at 100 percent of its year-to-date fiscal year 2004 mission through January. On 1 October 2003 we began The National Call to Service Program, and 213 recruits have selected this program.  The Reserve and National Guard are at 98.7 percent and 94.9 percent of their respective missions.  We are recruiting a high-quality force; our high school degree graduates are 96.5 percent of Active Army recruits, 94.0 percent of Reserve recruits, and 84.6 percent of National Guard recruits, year-to-date.

We remain confident we will meet the fiscal year 2004 mission due to our recruiting force and incentives.

Our recruiting force is the best in the world.  Our accession mission is over 165,000 this year (Active 75,000, Reserve 34,804, and National Guard 56,000) and will increase with the 30,000 temporary manning initiative. We must continue to have Congressional support of recruiting tools, advertising, and incentives.  Incentives are a key enabler of the Army's accession mission in terms of military occupational skill (MOS) precision fill, quality, and quantity.

Incentives include Enlistment Bonuses, the Army College Fund, and the Loan Repayment Program.

Bonuses are the primary and most effective tool for MOS precision fill:

the accession mission.  The bonuses help us react to current market conditions and competitors, today and tomorrow.  We are able to use the bonuses to target critical MOSs, the college market, and "quick-ship" priorities.

The Army College Fund is a proven expander of the high-quality market.  College attendance rates are at an all-time high and continue to grow, with 67 percent of the high school market attending college within one year of graduation.  The Army College Fund allows recruits to both serve their country and earn additional money for college.

The Loan Repayment Program, maximum of $65,000, is another expander of the high-quality market.  Whereas the Army College fund primarily targets those who have not yet gone to college, the Loan Repayment Program is the best tool for those who have college credit and loans.  In fiscal year 2003, twenty-four percent of our recruits had some college credit.

The Army's recruiters are most effective when given the proper tools such as incentives, and advertising.  The recruiting environment remains a challenge in terms of economic conditions and alternatives.  Your continued support with resources, including funding for personnel, incentives, and advertising is necessary to compete in the current and future markets and to ensure our goals are met.

Enlisted Retention

The Army has achieved all retention goals for the past five years, a result that can be directly attributed to the Army's Selective Reenlistment Bonus (SRB) program.  The Army re-enlisted 54,151 Soldiers in fiscal year 2003, including 15,213 Soldiers whose enlistments would have expired before September 30.

In fiscal year 2004 alone, the Army must retain approximately 56,100 Soldiers to maintain desired manning.  Although we are behind the historical glide path, the Army remains optimistic that we will achieve all assigned retention goals.  Thus far, the Active Army has achieved 96 percent of year-to-date mission, while the Army Reserve has achieved 105 percent of year-to-date mission.  Meanwhile, the Army National Guard is more than holding its own in FY04 and has reenlisted 137 percent of their year to date mission.  We will depend upon a robust SRB Program to enable achievement of our retention goals.

We continue to review the Selective Reenlistment Bonus Program and its association with the retention of sufficient forces to meet combatant commander and defense strategy needs.  With recent increase of Active Army strength by up to 30K for the next four years, it is imperative the Army receives complete future funding of the SRB program to ensure program flexibility during the foreseeable future.  Developing ways to retain Soldiers directly engaged in the ongoing War on Terror is critical.  We are now using a "targeted" bonus (TSRB) as a tool to attract and retain quality Soldiers.  The TSRB aggressively targets eligible Soldiers assigned to units in, or deploying to, the CENTCOM area of responsibility.  Soldiers receive no less than a lump sum $5,000 bonus to reenlist for their present duty assignment while deployed in support of Operations Iraqi Freedom or Enduring Freedom.  Introduction of the TSRB on 1 January 2004 caused an almost immediate increase in reenlistments.  We anticipate another significant increase occurring in March/April along with the force rotation change over from Operation Iraqi Freedom one to two and Operation Enduring Freedom four to five.

Worldwide deployments, an improving economy, and the Army's Stop Loss/Stop Movement program could potentially affect retention.  All components closely monitor leading indicators including historic reenlistment rates, retirement trends, first term attrition, Army Research Institute Surveys, and Mobilization/Demobilization Surveys, to ensure we achieve total success.

Moreover, all components are employing positive levers including Force Stabilization policy initiatives, updates to the reenlistment bonus program, targeted specialty pays, and policy updates to positively influence retention program.  Ultimately, we expect to achieve FY04 retention success in the Active Army, the National Guard, and the United States Army Reserve.

OFFICER RETENTION

The Army continues to monitor officer retention rates as an important component of readiness.  Overall retention of Army Competitive Category officers improved with increased retention at both the company grade and field grade ranks, with an aggregate fill rate of 103.7 percent. There was a slight increase in attrition for Lieutenants and Colonels, but the attrition rate for Captains decreased almost 3 percent from FY02 to FY03.

The Army has steadily increased basic branch accessions beginning in FY00 with 4000, capping at 4,500 in FY03 and returning to 4300 for FY04 and beyond, to build a sustainable inventory to support Captain requirements. We achieved 4443 accessions in FY03. The Army can meet current and projected active Army officer accession needs through current commissioning sources (Reserve Officer Training Corps, Officer Candidate School, United States Military Academy, and United States Army Recruiting Command).  Reserve Component Lieutenant accessions present near and long-term challenges, but the numbers have improved significantly over the past few years, and are expected to continue to improve.

We continue to promote officers at all ranks at or above the Defense Officer Personnel Management Act (DOPMA) goals and expect these rates to continue for the next 2-4 years.

 

STOP LOSS

The Army has begun the monumental task of rotating forces in support of on-going operations in Iraq and Afghanistan.  Over the next few months, the Army will have eight of its ten active duty divisions either deploying or redeploying from operations in support of the Global War on Terrorism.  Consequently, the current and projected operational tempo continues unabated, placing enormous stress on units, Soldiers, and their families.  Based on the commitment to pursue the Global War on Terrorism for the foreseeable future, to provide our combatant commanders the force to decisively defeat the enemy, and to ensure our formations are ready for the warfight, required us to re-institute the Active Army Unit Stop Loss program and to retain the Reserve Component Unit Stop Loss program currently in effect.

The two Stop Loss programs currently being used in support of the Army's effort in the Global War On Terrorism are the following.

•      Active Army Unit Stop Loss.  Applicable to all Regular Army Soldiers assigned to organized Active Army units alerted or participating in Operation Iraqi Freedom (OIF) I and II and Operation Enduring Freedom (OEF) IV and V. 

•      Reserve Component Unit Stop Loss.  Applicable to all Ready Reserve

Soldiers who are members of Army National Guard or United States Army Reserve and assigned to Reserve Component units alerted or mobilized in accordance with Section 12302 or 12304, Title 10, U.S.C. to participate in Operations Nobel Eagle, Enduring Freedom, and Iraqi Freedom.

The Active Army and Reserve Component Unit Stop Loss programs affect Soldiers at the unit's mobilization/deployment date minus 90 days, continues through the demobilization/redeployment date, plus a maximum of 90 days.  In the case of the Reserve Component Soldiers the period upon redeployment should be considerably less than 90 days as they go through demobilization processing.  For Active Component Soldiers, a maximum of 90 days is used after return of the unit to its permanent duty station to ensure sufficient time for Soldiers to complete mandatory transition, participate in the Army Career Alumni Program, and deployment cycle events/activities.

Department of Defense guidance to the Services is to discontinue Stop Loss policies as soon as operationally feasible.  Consequently, our policy requires a quarterly review to determine continuation or termination.  As of February 2004, the current Stop Loss program affects a total of 44,535 Soldiers of all Components.

MILITARY BENEFITS AND COMPENSATION

Maintaining an equitable and effective compensation package is paramount to sustaining a superior force.  A strong benefits package is essential to recruit and retain the quality, dedicated Soldiers necessary to execute the National Military Strategy.  In recent years, the Administration and Congress have supported compensation and entitlements programs as a foundation of Soldier Well-Being.  An effective compensation package is critical to efforts in the Global War on Terrorism as we transition to a more joint, expeditionary, unit-centered, and cohesive force.

We have made tremendous strides in reducing median out-of-pocket housing costs for our Soldiers.  Basic Allowance for Housing (BAH) is intended to provide sufficient recompense to meet the average basic housing needs of all Soldiers based on their Regular Military Compensation.  Proposed fiscal year 2005 BAH increases will reduce median out-of-pocket expenses to zero.  Our commanders have been instrumental in ensuring BAH program estimates and housing cost data collection are accurate thereby generating allowances to cover the average cost of adequate housing.

The Reserve Components represent a significant portion of the capability of the Total Force and are an essential element in the full spectrum of worldwide military operations.  Both the Department and Congress recognize the importance of appropriate compensation and benefits for these Soldiers.  Recently, the Department of Defense conducted a Congressionally directed review of compensation for Reserve Component personnel.  The study found the 1/30^th rule appropriate for special pays and incentives and recommended no change to the current manner of authorizing those entitlements.  The study does suggest changes to retention bonus structure, housing allowances and foreign language proficiency pay may be appropriate.  Additionally, the Department recommends changes to the Montgomery GI Bill, for Guard and Reserve, be considered by the Department of Veterans Affairs.  The Department is contracting a study to review reserve retirement including retirement predictability and the effect changes will have on force management.

New legislative changes allow us to provide flexible special pays and incentives to our Soldiers.  We will continue to develop programs, which address the unique challenges we face as an expeditionary Army.  With Congressional support, we have undertaken a number of initiatives to provide special compensation for our Soldiers who serve their country under hazardous conditions.  Increases to special pays, such as Hostile Fire Pay, Family Separation Allowance and the authorization of per diem for family members of seriously injured Soldiers, provide some measure of comfort and support to our Soldiers and their families as we fight the Global War on Terrorism.  Recently, the Secretary of Defense authorized new incentive packages for Soldiers involuntarily and voluntarily extended beyond 12 months in Iraq or Afghanistan.  The Army provided the involuntary incentive package to approximately 1567 soldiers in units designated by the Secretary of Defense.  The Army plans to use the voluntary program for specified intelligence assets and in other situations as warranted.

This year Soldiers in Korea have received additional incentives to improve their well-being.  Those Soldiers who are eligible for Family Separation Allowance continue to receive the increase Congress provided.  Additionally, surveys supported an Overseas Cost of Living Allowance be granted for Soldiers in Korea.  The Department of the Army recently announced the implementation of Assignment Incentive Pay (AIP) for Soldiers assigned to Korea.  This program will enable Soldier stability while enhancing readiness for units stationed in Korea.  With limited exceptions, this one year AIP program is being offered to all Soldiers: officer, warrant officer, and enlisted, to promote stability, predictability and improved readiness in Korea while reducing personnel turbulence Army-wide.

We continue to look for ways to compensate our Soldiers for the hardships they and their families endure and we appreciate your commitment in this regard.

FY05 PERSONNEL BUDGET & MANNING:

The FY05 Budget provides military pay to support an active Army 482.4K end strength (78,500 officers and 399,700 enlisted and 4,200 cadets) and the Reserve Components at 555K end strength. It fully funds the Army Reserve Annual Training (109 K participating Soldiers), Active Guard and Reserve (AGR-14,970 Soldiers), and Individual Manning Augmentees (IMA-6K Soldiers). The Army Reserve is funded at 70 percent of the Inactive Duty Training (IDT) program (83K Soldiers out of 123K participating soldiers).  The FY05 Budget funds the Army National Guard Annual Training at 82 percent (170K Soldiers), Inactive Duty Training (IDT) program at 85 percent (194K Soldiers), and Active Guard and Reserve (AGR-25K Soldiers) including 102 Ground Missile Defense (AGR) and 76 AGRs for four additional Civil Support Teams (CST). The FY05 budget also continues the Residential Communities Initiative (RCI) program, bringing the number of installations operating under the RCI program to twenty.  This initiative improves the well-being of our Soldiers and families and contributes to a ready force by enhancing morale and retention.

Rest and Recuperation Leave Program

The Rest and Recuperation (R&R) Leave Program is a highly visible and a critical component of the Army Well Being Program.  Rest and Recuperation opportunities are vital to maintaining combat readiness and capability when units are deployed and engaged in intense, sustained combat operations.  The R&R Leave program provides a means where by soldiers deployed in the CENTCOM Area of Responsibility are able to temporarily lay aside stress and the rigors of service in a combat zone by returning them home at government expense.  To date more than 55,000 soldiers and DoD civilians have participated in the program.

Military Voting Program Status

The Army has a robust program to assist Soldiers and their family members to vote absentee.  The Army Voting Assistance Program provides voting assistance/education to Soldiers, overseas DA civilians and their family members.  This assistance includes providing all necessary voting information, voting age requirements, election dates, absentee registration, and voting procedures.  Our goal is 100% contact by providing a pre-paid Federal Post Card Application (FPCA), Registration and Absentee Ballot Request, to every Soldier.

Installation Voting Assistance Officers (VAO's) are required to provide a monthly status report on their Voting Assistance activities and contact progress.  These reports are monitored at AHRC level.  VAO's are required to complete VAO training, order and distribute voting materials, contact 100% of their Soldiers and provide information and assistance on completion of the FPCA for registration, ensuring Soldiers are aware of the mailing deadlines and which states allow for faxing of registration and/or voted ballots.

For our Soldiers deployed in support of Operations Iraqi Freedom and Enduring Freedom, the VAO CJTF-7 is currently compiling and updating the list of subordinate unit VAO's as forces rotate in and out of theater.  He also monitors the subordinate VAO's who have not previously completed training and instructs them to enroll in the on-line VAO training.

The deadline for mailing of FPCA for registration is 15 Aug 04.  The deadline for mailing voted ballots from the CENTCOM AOR is 11 Oct 04.  If Soldiers have not received their ballot from their state by 11 Oct 04, they can complete the Federal Write-In Application Ballot (FWAB).  This ensures the Soldier's vote for Federal level offices is in the mail early enough to be received by the state deadline.  This is followed up with mailing of the absentee ballot upon receipt for a more complete field of candidates.

Iraqi Theater Mail

Mail is one of the most critical components to troop morale.  Despite our best efforts, we have experienced some problems in OIF/OEF with postal operations.  We experienced some immediate backlogs in mail during the onset of the war.  Any Service Member Mail Programs were not supported by DoD during OIF/OEF due for force protection reasons.  However because of workarounds by the American public this mail overburdened the transportation and mail processing systems.  We have made major improvements during OIF/OEF by using contracted commercial aircraft to move military mail versus relying on AMC aircraft.  This provided the U.S. Postal Service (USPS) and the Military Postal Service Agency (MPSA) additional control and flexibility in the movement of mail.  The current operation includes 250,000 troops dispersed over a large geographical area (Iraq, Kuwait and Afghanistan).  The latest average mail transit time data available for mail going to Soldiers in theater- is letter mail received in 12 days and parcels in 13 days.  These are considerable improvements over the transit times at the beginning of the war.  These are averages, and there are always "outliers" on each end.  Currently, all mail facilities are processing within 24 hours of receipt.

The great dispersion of troops for a longer period of time increased the logistical requirements for delivery of mail.  At the beginning of OIF mail competed for transportation resources with higher priority items such as food, ammunition and water; thus, causing delays in mail delivery.  Throughout Operation Iraqi Freedom getting the mail to the theater of operations was and is a top priority and we continue to look for ways to improve this most critical aspect of Soldier well being.

Survivor Benefits Plan (SBP) Initiatives

Congress enacted Survivors Benefits Plan (SBP) in 1972 to address the situation of destitute military surviving spouses.  Survivors Benefits Plan is the sole means by which survivors can receive a portion of military retired pay following the retiree's death.  Participation in SBP allows retirees to elect to receive reduced retired pay during their lifetime in order to provide a portion of retired pay to their survivor(s) upon their death.  Soldiers on active duty are covered without cost.

Since its inception, SPB has undergone various evolutions.  Last year your efforts improved survivor benefits in active duty death cases significantly enough that all the Services have ceased death imminent retirement processing -a step previously taken to ensure maximum survivor benefits.  These enhanced survivor benefits demonstrate to serving members that their families will be cared for, should they make the ultimate sacrifice.

Conclusion

Our country continues to face unparalleled challenges at this time and our Army- our son's and daughters, have an unwavering commitment to meet that challenge. I am proud of our Soldiers for their selfless service.  We will continue to need your support as we focus on the protracted Global War on Terrorism while fulfilling the manpower needs of the Army.

Once again thank you for the opportunity to appear before you today. I look forward to answering your questions.

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