[Senate Hearing 111-701, Part 6]
[From the U.S. Government Printing Office]
                                                   S. Hrg. 111-701 Pt. 6
 
DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 
                                  2011
=======================================================================
                                HEARINGS
                               before the
                      COMMITTEE ON ARMED SERVICES
                          UNITED STATES SENATE
                     ONE HUNDRED ELEVENTH CONGRESS
                             SECOND SESSION
                                   ON
                                S. 3454
     TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2011 FOR MILITARY 
ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND 
   FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE 
    PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR, AND FOR OTHER PURPOSES
                               __________
                                 PART 6
                               PERSONNEL
                               __________
                  MARCH 10, 24; APRIL 28; MAY 12, 2010
                               __________
         Printed for the use of the Committee on Armed Services
        Available via the World Wide Web: http://www.fdsys.gov/
                  U.S. GOVERNMENT PRINTING OFFICE
62-159                    WASHINGTON : 2011
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                      COMMITTEE ON ARMED SERVICES
                     CARL LEVIN, Michigan, Chairman
ROBERT C. BYRD, West Virginia        JOHN McCAIN, Arizona
JOSEPH I. LIEBERMAN, Connecticut     JAMES M. INHOFE, Oklahoma
JACK REED, Rhode Island              JEFF SESSIONS, Alabama
DANIEL K. AKAKA, Hawaii              SAXBY CHAMBLISS, Georgia
BILL NELSON, Florida                 LINDSEY GRAHAM, South Carolina
E. BENJAMIN NELSON, Nebraska         JOHN THUNE, South Dakota
EVAN BAYH, Indiana                   ROGER F. WICKER, Mississippi
JIM WEBB, Virginia                   GEORGE S. LeMIEUX, Florida
CLAIRE McCASKILL, Missouri           SCOTT P. BROWN, Massachusetts
MARK UDALL, Colorado                 RICHARD BURR, North Carolina
KAY R. HAGAN, North Carolina         DAVID VITTER, Louisiana
MARK BEGICH, Alaska                  SUSAN M. COLLINS, Maine
ROLAND W. BURRIS, Illinois
JEFF BINGAMAN, New Mexico
EDWARD E. KAUFMAN, Delaware
                   Richard D. DeBobes, Staff Director
               Joseph W. Bowab, Republican Staff Director
                                 ______
                       Subcommittee on Personnel
                      JIM WEBB, Virginia, Chairman
JOSEPH I. LIEBERMAN, Connecticut     LINDSEY GRAHAM, South Carolina
DANIEL K. AKAKA, Hawaii              SAXBY CHAMBLISS, Georgia
E. BENJAMIN NELSON, Nebraska         JOHN THUNE, South Dakota
CLAIRE McCASKILL, Missouri           ROGER F. WICKER, Mississippi
KAY R. HAGAN, North Carolina         GEORGE S. LeMIEUX, Florida
MARK BEGICH, Alaska                  DAVID VITTER, Louisiana
ROLAND W. BURRIS, Illinois           SUSAN M. COLLINS, Maine
JEFF BINGAMAN, New Mexico
                                  (ii)
                            C O N T E N T S
                              ----------                              
                    CHRONOLOGICAL LIST OF WITNESSES
        Active, Guard, Reserve, and Civilian Personnel Programs
                             march 10, 2010
                                                                   Page
Stanley, Hon. Clifford L., Under Secretary of Defense for 
  Personnel and Readiness........................................     6
Lamont, Hon. Thomas R., Assistant Secretary of the Army for 
  Manpower and Reserve Affairs...................................    30
Garcia, Hon. Juan M., III, Assistant Secretary of the Navy for 
  Manpower and Reserve Affairs...................................    38
Ginsberg, Hon. Daniel B., Assistant Secretary of the Air Force 
  for Manpower and Reserve Affairs...............................    42
Barnes, Master Chief Joseph L., USN (Ret.), National Executive 
  Director, Fleet Reservse Association...........................    71
Moakler, Kathleen B., Government Relations Director, National 
  Military Family Association....................................    77
Cline, Master Sergeant Michael, USA (Ret.), Executive Director, 
  Enlisted Association of the National Guard of the United States    96
Holleman, Deirdre Parke, Executive Director, The Retired Enlisted 
  Association....................................................    98
Strobridge, Steven P., USAF (Ret.), Director of Government 
  Relations, Military Officers Association of America............   100
       Military Health System Programs, Policies, and Initiatives
                             march 24, 2010
Cardin, Hon. Benjamin L., U.S. Senator from the State of Maryland   181
Rice, Charles L., M.D., Performing the Duties of the Assistant 
  Secretary of Defense for Health Affairs, and Acting Director, 
  Tricare Management Activity....................................   185
Hunter, RADM Christine S., USN, Deputy Director, Tricare 
  Management Activity............................................   192
Schoomaker, LTG Eric B., USA, Surgeon General of the U.S. Army, 
  and Commander, U.S. Army Medical Command.......................   194
Robinson, VADM Adam M., Jr., USN, Surgeon General of the U.S. 
  Navy, and Chief, Navy Bureau of Medicine and Surgery...........   218
Green, Lt. Gen. Charles B., USAF, Surgeon General of the U.S. Air 
  Force..........................................................   227
Jeffries, RADM Richard R., USN, Medical Officer of the U.S. 
  Marine Corps...................................................   235
  Military Compensation and Benefits, Including Special and Incentive 
                                  Pays
                             april 28, 2010
Carr, William J., Deputy Under Secretary of Defense for Military 
  Personnel Policy...............................................   313
Farrell, Brenda S., Director, Defense Capabilities and 
  Management, Government Accountability Office...................   317
                                 (iii)
Murray, Carla Tighe, Senior Analyst, National Security Division, 
  Congressional Budget Office....................................   323
Hosek, James R., Director, Forces and Resources Policy Center, 
  RAND National Security Research Division.......................   330
                       Reserve Component Programs
                              may 12, 2010
McCarthy, Hon. Dennis M., Assistant Secretary of Defense for 
  Reserve Affairs................................................   369
McKinley, Gen. Craig R., USAF, Chief, National Guard Bureau......   378
Wyatt, Lt. Gen. Harry M., III, USAF, Director, Air National Guard   379
Carpenter, MG Raymond W., ARNG, Acting Director, Army National 
  Guard..........................................................   380
Stultz, LTG Jack C., USAR, Chief of Army Reserve; and Commanding 
  General, U.S. Army Reserve Command.............................   396
Debbink, VADM Dirk J., USN, Chief of Navy Reserve; and Commander, 
  Navy Reserve Force.............................................   401
Kelly, Lt. Gen. John F., USMC, Commander, Marine Forces Reserve; 
  and Commander, Marine Forces North.............................   409
Stenner, Lt. Gen. Charles E., Jr., USAF, Chief of Air Force 
  Reserve; and Commander, Air Force Reserve Command..............   419
Stosz, RADM Sandra L., USCG, Acting Director of Reserve and 
  Training, U.S. Coast Guard.....................................   428
DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 
                                  2011
                              ----------                              
                       WEDNESDAY, MARCH 10, 2010
                               U.S. Senate,
                         Subcommittee on Personnel,
                               Committee on Armed Services,
                                                    Washington, DC.
        ACTIVE, GUARD, RESERVE, AND CIVILIAN PERSONNEL PROGRAMS
    The subcommittee met, pursuant to notice, at 10:33 a.m. in 
room SR-232A, Russell Senate Office Building, Senator Jim Webb 
(chairman of the subcommittee) presiding.
    Committee members present: Senators Webb, Hagan, Begich, 
Graham, and Chambliss.
    Majority staff members present: Jonathan D. Clark, counsel; 
Gabriella Eisen, counsel; and Gerald J. Leeling, counsel.
    Minority staff members present: Diana G. Tabler, 
professional staff member; and Richard F. Walsh, minority 
counsel.
    Staff assistants present: Jennifer R. Knowles and Brian F. 
Sebold.
    Committee members' assistants present: Juliet Beyler and 
Gordon Peterson, assistants to Senator Webb, Lindsay Kavanaugh, 
assistant to Senator Begich; Clyde Taylor IV, assistant to 
Senator Chambliss; and Adam Brake, assistant to Senator Graham.
        OPENING STATEMENT OF SENATOR JIM WEBB, CHAIRMAN
    Senator Webb. Good morning. The subcommittee will come to 
order.
    The subcommittee meets today to receive testimony on the 
Active, Guard, Reserve, and civilian personnel programs in 
review of the National Defense Authorization Request for Fiscal 
Year 2011 and the Future Years Defense Program.
    We will have two panels today. The first panel's witnesses 
are the senior civilian officials in the Department of Defense 
(DOD) and the military departments who are responsible for 
personnel matters. I welcome The Honorable Clifford Stanley, 
Under Secretary of Defense for Personnel and Readiness; The 
Honorable Thomas Lamont, Assistant Secretary of the Army for 
Manpower and Reserve Affairs; The Honorable Juan Garcia, 
Assistant Secretary of the Navy for Manpower and Reserve 
Affairs; and The Honorable Daniel Ginsberg, Assistant Secretary 
of the Air Force for Manpower and Reserve Affairs.
    Nobody wants to sit in this center seat, here? [Laughter.]
    Dr. Stanley, feel free to be the major focal point of the 
room. [Laughter.]
    Our second panel will include witnesses drawn from 
associations that represent and advance the interests of Active 
Duty, Reserve, and retired servicemembers and their families. 
I'll introduce our second panel when it convenes, but I wish to 
express my appreciation to all our witnesses for joining us 
this morning.
    This is my first hearing as chairman of this subcommittee. 
The subcommittee's jurisdiction extends to virtually all 
matters of personnel policy--compensation, military healthcare, 
military nominations, civilian personnel. I'd like to say, at 
this point, that I intend for this subcommittee to exercise 
continuous and active oversight of all our military personnel 
matters, through hearings, through consideration of the 
Department's budget and legislative proposals, and also through 
day-to-day interaction with you and people who work with you, 
and with our committee staff, as well. This hearing is one 
part, and one part only, of that process.
    There's no greater responsibility for Congress and military 
leaders, as our witnesses all know, than to care and provide 
for our servicemembers and for their families. This is a 
concept of stewardship that I, and I think all of my 
compatriots up here, feel about very strongly.
    I grew up in the military, as many of you know. I know what 
it's like to have a parent deployed. I also know what that 
means, in terms of the responsibilities and the challenges of 
family members. I can remember, at one point, when--my father 
was career Air Force--I went to a different school in the fifth 
grade, sixth grade, seventh grade, three different schools in 
the eighth grade, the ninth grade, two different schools in the 
tenth grade, from England to Missouri to Texas to Alabama to 
California to Nebraska, and I know how that stresses the 
families, and I know how important it is for us to always keep 
that in mind.
    I had the honor of serving with the Marine Corps infantry 
in Vietnam. I understand a lot of the stresses of what it means 
to be deployed in combat. I'm a father of a Marine NCO who had 
some hard time in Iraq, and also the father-in-law of a Marine 
infantry sergeant, who is now, at the age of 24, looking to be 
deployed for the fourth time, coming this July.
    That, coupled with the experience that I was able to gain 
through 5 years in the Pentagon--one as a Marine officer, three 
having responsibility for our Guard and Reserve programs, about 
which I feel very strongly, and the other as Secretary of the 
Navy--we got a very good look, in the 1980s, at the evolution 
of the total-force concept, where the manpower challenges came 
from, force-structure issues, and those sorts of things, and 
they will come to play here, in this subcommittee, as we move 
forward.
    We're very cognizant of the fact DOD, supported by this 
committee, has instituted many innovative programs over the 
past several years in order to deal with the challenges that 
have occurred since September 11, 2001.
    I would mention, briefly, since this is my first hearing as 
chairman of this subcommittee, that the Commonwealth of 
Virginia has a long history, in terms of taking care of, and 
being host to, one of the largest Active Duty and retired 
military populations in our country, and I'm honored to serve 
in the tradition of John Warner, who is no longer in the 
Senate, but gave tremendous service to this committee and also 
to the people of Virginia, in this area.
    Our military is now engaged in its 9th year of combat 
operations since September 11. Our Guard and Reserve components 
have played critical roles during this period, in ways that 
were not envisioned at the inception of the All-Volunteer Force 
and, quite frankly, were not envisioned when I was Assistant 
Secretary of Defense for Reserve Affairs.
    It's also important for us to remember that the All-
Volunteer Force is not an all-career force. Sometimes we lose 
that focus when we have people from the Pentagon coming over 
here talking to us about programs. The Services do a very fine 
job of attending to the needs of its career force, but we 
should always keep in mind our stewardship to those who feel, 
in the citizen-soldier tradition of this country, that they 
should come in and obligate themselves for one enlistment, and 
return to their communities.
    The data that we received when we were formulating the GI 
Bill was that 75 percent of the Army enlisted folks, and 70 
percent of the Marine Corps, and roughly half of the other two 
Services, leave the military on or before the end of their 
first enlistment. Those numbers may have varied a bit with the 
economic conditions right now, but those are the people that we 
should never forget when we come up--in talking about these 
other programs.
    I'm look forward, greatly, to serving with our 
subcommittee's ranking member, Senator Graham, in addressing 
these challenges, and to ensure the long-term viability of the 
All-Volunteer Force, not simply in numbers, but also in 
quality. Everyone in this room is very familiar with Senator 
Graham's service, not only on this committee, but also to our 
country, continuing to serve as a colonel in the Air Force 
Reserve. He brings valuable perspective, I think, as everyone 
has seen, as we've attempted to work through the issues of the 
Guantanamo Bay detainees and many other areas. He's served 
regularly on Active Duty, and his duties have allowed him to 
keep his finger on the pulse of the men and women in our 
military today. He and I have collaborated on a number of 
important issues over the past 3 years, and I welcome this 
opportunity to work with him even more closely during the 
months and years ahead.
    The All-Volunteer Force is stressed by the past 9 years of 
conflict. Having experienced multiple deployments, extended 
deployments to Afghanistan, Iraq, this is especially true of 
our ground forces. We're entering uncharted territory, in terms 
of the long-term consequences of past rotation cycles and an 
unsatisfactory deployment-to-dwell ratio that is only now 
beginning to be corrected. Despite authorizing more than 55,000 
additional Active-Duty servicemembers in the last year, today's 
dwell times are still inadequate to ensuring the vital 
recuperation, revitalization, and reset of the force and their 
families. I'm concerned about that impact on the resilience of 
the force, and we'll have some questions, during your 
testimony, with respect to those issues.
    This subcommittee faces a very clear and immediate 
challenge, and that is in addressing the rising costs of 
personnel. The combination of rising end strengths and an 
increasing compensation package continues to send personnel-
related costs soaring. As Secretary Gates recently said, ``The 
costs of healthcare are eating the Department alive.'' The 
total personnel-related budget in the Department's fiscal year 
2011 request, including the cost of providing healthcare to 
servicemembers, their families, and retirees, amounts to $178 
billion, or 32 percent of the overall DOD base budget. By 
contrast, when I was Secretary of the Navy in 1987, I think the 
entire Navy budget was right about $100 billion. Compare that 
with the fiscal year 2003 total personnel-related spending, 
including healthcare, amounted to $114 billion. That's an 
increase of 56 percent from fiscal year 2003 to fiscal year 
2011. By all accounts, that growth is going to continue.
    Though these challenges are steep, we should also be 
thankful for the successes that the Department and our Services 
have enjoyed. The combination of patriotism, a stagnant 
economy, a robust compensation package, including retirement, 
healthcare, and education benefits, have allowed the Services 
to achieve historic highs in recruiting and retention.
    The quality of our people has also been sustained. Waivers 
are down across the Services, test scores are up, and the vast 
majority of new recruits are high school graduates, a higher 
percentage than just a couple of years ago. These are all 
strong indicators of the quality of character and service that 
our people in uniform exhibit, across the board, day after day.
    I look forward to hearing from both panels this morning. I 
would encourage you to express your views candidly and, in 
addition relating to what you see going well, to address your 
concerns in those issues that you believe this subcommittee 
needs to pay attention to. I, along with Senator Graham and our 
colleagues, are dedicated to the prospect of ensuring that our 
military remains the very best in the world.
    Senator Graham.
              STATEMENT OF SENATOR LINDSEY GRAHAM
    Senator Graham. Thank you, Mr. Chairman.
    As I listened to your opening statement, it really struck 
me that, of all of the people in the Senate, you're clearly, I 
think, the most qualified person to lead this subcommittee 
right now, in the sense of your understanding the personnel 
issues and just your personal history.
    I want to also acknowledge that Senator Nelson was a 
complete joy to work with, and he's gone to another 
subcommittee. But, Mr. Chairman, I promise, when it comes to 
the troops, we'll be as bipartisan as possible. I think we've 
proven, between the two of us, that we can disagree, but also 
find common ground on things that really do matter.
    I was on a plane not long ago, and on that one plane I had 
a young man come up to me who had just gotten out of the 
military, he's going to Harvard, and he mentioned the GI bill 
that you authored and we worked together to pass. It really is 
working. There's a lot of implementation problems, but the fact 
that this young man is able to get most of his college 
education paid for, if not all, for serving 4 years, going to 
Harvard, I think, is a testament to that bill. The guy sitting 
right by me was a 28-year service Air Force colonel who is 
going to transfer his benefits to his youngest daughter going 
to college, and he was just telling me how much that meant to 
his family. So, what we're able to accomplish there, with your 
leadership, is really helping people.
    The one thing I would suggest is, the President's budget--
I'm going to try to support as much as possible. The 1.4-
percent pay raise is the least we can do. We all wish it would 
be more, but we do have budget problems up here. The 
sustainability of healthcare is the issue, I think, for us on 
this committee, and maybe the Congress as a whole, because, as 
you talked about your time with the Navy, the budgets have 
grown, the obligations are great, so few people are doing so 
much for so long. Here we are, 9 years almost into this war, 
and we're growing the military. I think that's a wise thing to 
do. Personnel costs are 30-something percent of the budget, but 
the healthcare component is 8 percent of the budget, growing, 
it's going to be hard to sustain that. We haven't had a premium 
increase in TRICARE since 1995. I want to do everything I can 
to help the families and retirees and military members, but 
eventually we're going to have to deal with that problem: How 
do you sustain the growth of TRICARE and other medical benefits 
within the budget before you start taking away from the 
warfighter? That means some hard decisions are to come.
    When it comes to ``Don't Ask, Don't Tell,'' I think we all 
are waiting to see what this survey shows, and try to make an 
intelligent decision based on input from the military, and I 
would just urge my colleagues to let that run its course.
    With that, Mr. Chairman, I will listen to the witnesses and 
look forward to working with you. Again, I think, between the 
two of us and the members of this committee, we can do some 
good things for our men and women in uniform.
    One last thought. Senator Chambliss has a bill that I've 
been working with to lower retirement age for Guard and Reserve 
members who have served on Active Duty since September 11, 
2001. For every year they would serve, or 90 days they would 
serve, they could retire a bit earlier, all the way down to 55. 
That has a cost associated with it, but I think it's an idea 
whose time has come, and I look forward to working with you to 
see if we can make that possible.
    Mr. Chairman, I look forward to being your ally and 
colleague on this. Now is the time for me to shut up and let 
the people who are in charge talk.
    Senator Webb. Let me say that I can't think of a better 
person to be working with than Senator Graham on these issues, 
as well.
    Senator Graham. Thank you.
    Senator Webb. We've received statements for the record from 
the Fleet Reserve Association, the Reserve Officer Association, 
and, without objection they will be included in the record at 
this point.
    We've also received a statement for the record from Senator 
Bill Nelson, who could not be here, and, without objection, 
that will be included in the record after the principal 
statements of our witnesses.
    [The prepared statement of Senator Bill Nelson follows:]
               Prepared Statement by Senator Bill Nelson
    Mr. Chairman, thank you for allowing me to speak about one of the 
last injustices plaguing the veterans' benefits system. I am talking 
about the offset between the Department of Defense (DOD) Survivor 
Benefit Plan (SBP) annuity and the Department of Veterans Affairs (VA) 
Dependency and Indemnity Compensation (DIC) benefit.
    SBP is an annuity paid by the DOD to survivors when either a 
military retiree pays a premium as income insurance for their survivors 
or when a servicemember dies on active duty. DIC is a survivor benefit 
paid by the Veterans Administration. Survivors receive DIC when 
military service caused the servicemember's death.
    There is a longstanding problem in our military survivor benefits 
system, the requirement for a dollar-for-dollar reduction of survivor 
benefits from the SBP paid by DOD by the amount of DIC received from 
the VA. I have fought for 9 years to eliminate the offset for SBP 
beneficiaries whose loved ones purchased or earned this annuity.
    Following the bloodiest of America's wars, President Abraham 
Lincoln, in his second inaugural address, said that one of the greatest 
obligations in war is to ``finish the work we are in; to bind up the 
Nation's wounds; to care for him who shall have borne the battle, and 
for his widow, and his orphan.''
    To truly honor our servicemembers, we all agree that the U.S. 
Government must take care of our veterans, their widows and orphans. In 
keeping with that moral principle, we must repeal the unjust offset 
that denies widows and orphans the annuity their deceased loved ones 
have earned on active duty or purchased for them.
    In the 2008 National Defense Authorization Act, we cracked the door 
to eliminating the offset. In conference negotiations with the House, 
we made some progress when we got a ``special payment'' of $50 per 
month, which will increase to $310 per month by 2017 because of money 
savings found in Tobacco Legislation passed last year.
    Our efforts have been important steps in the right direction, but 
they are not enough. We must meet our obligation to the widow and 
orphan with the same sense of honor as was the service their loved one 
had rendered. We must completely eliminate the SBP-DIC offset.
    I commend many of the organizations represented by the witnesses 
today for the support they have shown and hard work put in for full 
repeal of the offset. I ask DOD to work with Congress to honor the 
retirees, the fallen, and their families, and budget for full repeal of 
the SBP-DIC offset.
    Thank you, Mr. Chairman.
    Senator Webb. With that, we would begin with Dr. Stanley, 
and then move to Mr. Lamont, Mr. Garcia, and Mr. Ginsberg, in 
that order.
    Dr. Stanley, welcome.
   STATEMENT OF HON. CLIFFORD L. STANLEY, UNDER SECRETARY OF 
              DEFENSE FOR PERSONNEL AND READINESS
    Dr. Stanley. Good morning, Senator Webb and Senator Graham 
and other distinguished members of the subcommittee.
    First of all, let me just say I'm honored to be here, and 
particularly with colleagues and, in some cases, just meeting 
today.
    As I speak to you concerning DOD's personnel programs and 
readiness, for the past 3 weeks, as the Under Secretary of 
Defense, I've had the honor of working and interacting with 
some of the greatest men and women in uniform, DOD civilians, 
contractors, and their great families. It is truly a privilege 
to serve them in this position.
    I first want to thank you for your support of these men and 
women over the years. They have fought our wars, protected our 
interests and our allies around the globe. I look forward to 
working closely with this committee to improve support for 
those in uniform, the civilian employees of the Department, and 
their families.
    Just a few short months ago, I appeared before you as 
President Obama's nominee to be the Under Secretary of Defense 
for Personnel and Readiness. At that time, I emphasized several 
top priorities: the All-Volunteer Force, support to wounded 
warriors, personnel readiness, family programs, and the stress 
that is affecting our military today.
    In terms of military personnel, the Services are 
experiencing historic success in recruiting and retention. It 
is a tribute to both the dedication of our military personnel 
and to the patriotism of our Nation's citizens that we continue 
to maintain an All-Volunteer Force of unprecedented quality 
after more than 8 years in active combat operations.
    I am happy to report that in fiscal year 2009, the Services 
have had the most successful recruiting year of all the All-
Volunteer Force era. All four Active Services and all six 
elements of the Reserve component achieved both numerical and 
recruit quality targets for the first time, which is a banner 
year. To continue to secure sufficient personnel for the Armed 
Forces, the Department must provide a compensation package 
comparable and competitive to the private sector at the same 
time we balance the demands of an All-Volunteer Force in the 
context of growing equipment and operational costs.
    The Department continues this commitment through the 
President's request for a 1.4-percent increase in military pay 
for all servicemembers in the fiscal year 2011 budget, an 
amount that equals earning increases in the private sector, as 
measured by the Employment Cost Index. Of note, from the 
January 1, 2002, through the January 1, 2010, pay raises, 
military pay rose about 42 percent, and the housing allowance 
rose by 83 percent. During the same period, private-sector 
wages and salaries rose only 32 percent.
    While there is little question that those increases were 
necessary in the past, rising personnel costs could 
dramatically affect the readiness of the Department. We are at 
a point where discretionary spending offers the best ability to 
target specific skills, and the quality and quantity of those 
filling such positions. I believe the Services still require 
the use of special pay and bonuses to ensure sufficient 
operational readiness and our mission.
    Our military forces maintain an exceptionally high level of 
readiness, but multiple deployments to Iraq and Afghanistan 
have certainly increased the stress on our servicemembers and 
their families. We have a number of initiatives underway to 
address this stress, and have set clear limits and goals for 
the deployment lengths and the amount of time, or ``dwell,'' 
between deployments.
    To that end, we have limited our unit deployments to 1 year 
in theater, a minimum of 1 year between deployments for our 
Active component. Our goal is to increase the time between 
deployments to 2 years for every year deployed, commonly called 
a 1-to-2 dwell ratio. For the Reserve component, we have 
limited the mobilization period to 1 year, and we strive to 
have a minimum 3-year break between mobilizations. The goal of 
the Reserve component dwell ratio is 1 year mobilized, with a 
5-year break between mobilizations, or a 1-to-5 dwell ratio. 
Although we are not there yet, we are making progress toward 
those goals.
    The Department is focused on care for our wounded, ill, and 
injured military members. As Secretary Gates stated last month, 
aside from winning the wars themselves, this is the 
Department's highest priority. Initiatives are currently 
underway to achieve a seamless transition from Active Duty to 
veteran status, and to increase cooperation between DOD and the 
Department of Veterans Affairs (VA). In addition, efforts to 
create a Disability Evaluation System that is simpler, faster, 
fairer, and more consistent are underway.
    Finally, in support of President Obama's commitment, the 
Department is partnering with the VA to establish Virtual 
Lifetime Electronic Records that will improve veteran care and 
services through increased availability and administrative and 
health information.
    We are also committed to further improving support to our 
military families. For fiscal year 2011, we have requested for 
a 41-percent increase in family assistance baseline funding 
across the Department to ensure that we are on target, in the 
sense of investing in programs that are needed by 
servicemembers and their families. We have initiated an 
extensive strategic planning process to address the current 
issues facing family readiness programs. This begins with a 
thorough assessment of existing needs, programs, and related 
issues.
    Unfortunately, we have had stumbles in this area. As I'm 
sure you're aware, we announced a temporary pause to the My 
Career Advancement Account (MyCAA) program on February 16, 
2010. Due to unforeseen, unprecedented, but welcome, demand in 
enrollments that overwhelmed the infrastructure, we nearly 
reached the budget threshold. While it was necessary to pause 
the program immediately, we failed to communicate properly the 
reasons for the pause. Over the past few weeks, DOD has worked 
tirelessly on mapping out solutions, for both the short and 
long term, that honors our commitment to our military spouses 
while accounting for fiscal realities.
    Our proposals are in the final stage of approval and we 
hope to restart the program very soon. We know we must make a 
concerted effort to restore our credibility and confidence with 
our military spouses, servicemembers, and the American public.
    Our military has proven its resilience during the most 
challenging of times, but the stress on the force is obvious. 
The Department's civilian and military leadership remain 
focused on employing numerous strategies to reduce the 
incidence of suicide in the Armed Forces. In calendar year 
2009, there were a total of 312 suicides, 285 Active component 
and 26 in the Reserve component, marking an increase, up from 
268 in 2008. I know this committee shares our belief that even 
one suicide is too many.
    There are many other critical issues facing the Department 
and this Nation, and I am exceedingly grateful to this Congress 
and this committee for their continuous commitment to 
supporting our men and women in DOD.
    I look forward to your questions and thank you for your 
time.
    [The prepared statement of Dr. Stanley follows:]
             Prepared Statement by Hon. Clifford L. Stanley
    Mr. Chairman and members of this distinguished subcommittee, thank 
you for inviting us to testify before you.
    As I humbly assume my role as the new Under Secretary of Defense 
for Personnel and Readiness, I am resolute in my determination to 
honor, protect and improve the lives of U.S. airmen, soldiers, sailors, 
and marines. I am here today to describe our mission as I see it and 
share my thoughts on how compassion, excellence and heightened sense of 
urgency will help me and my organization fulfill our duty.
    I am mindful we are at war and we must prevail. We win when we help 
our troops succeed in combat, and be healthy and happy with their 
families when at ease. We win when our troops can be confident their 
families have easy access to the resources and support they need while 
their loved ones are deployed. Maintaining our incredible All-Volunteer 
Force is our highest priority as we strive to recruit, attract, retain, 
and reward American's best and brightest, and their families.
                              active duty
Recruiting
    After more than 5 years of the most challenging recruiting 
environment since the inception of the All-Volunteer Force (AVF) in 
1973, the Services emerged in fiscal year 2009 with the most successful 
recruiting year of the AVF era--all four Active Services and all six 
Reserve components achieved both numerical and recruit quality targets 
for the first time, a banner year. Previous years were marked by a 
growing economy, low unemployment, reluctance of influencers of youth 
to recommend military service, propensity among youth themselves at an 
all-time low, and recruiting goals of the Army and Marine Corps 
increasing. Yet since 2005, the Services met or exceeded recruiting 
goals--the AVF concept has proven itself amidst some of the greatest 
stressors it could face.
    The recruiting environment has now changed. Unemployment has risen 
considerably. Generally, times like this make recruiting less 
challenging, and a regrettable trend in national unemployment operates 
to the advantage of those who are hiring, including the U.S. military. 
In addition, interest in the military among young people has increased.
    On the other hand, challenges remain--the lower likelihood of 
influencers of youth (e.g., parents and teachers) to recommend service, 
a large and growing proportion of youth population who are ineligible 
to serve in the military principally as a consequence of rising 
obesity, high numbers of youth going to college directly from high 
school, and the continuing concerns about overseas contingency 
operations with its concomitant high operations tempo, particularly the 
announced increases in force levels in Afghanistan. Therefore, we are 
in uncharted waters--with significant factors, both negative and 
positive, directly affecting military recruiting efforts.
    As a result, we continually review our recruiting programs to align 
funding and policies with current realities, recognizing that stable 
and adequate investments in recruiting resources are necessary to 
maintain success, especially in the long term. These reviews have 
allowed the Services to reduce recruiting resources in fiscal year 2010 
and 2011. While this results in a decreasing reliance on bonus 
incentives to meet recruiting goals, each Service knows it must be 
judicious in its cuts--reducing budgets gradually, and in the right 
places--using those targeted incentives to ensure we attract high 
quality youth into our most critical skills. We are mindful of the 
past, when fluctuating resources--up in tough recruiting environments, 
down in favorable ones--jeopardized recruiting missions, often 
resulting in sporadic failures.
    The recruiting environment is less challenging today, but we know 
that a tough recruiting environment will return. If we enter those 
difficult recruiting periods with insufficient resources and 
inexperienced recruiters, it will only exacerbate the problem and 
contribute to the ``boom and bust'' recruiting cycle which has 
characterized the past. Such a cyclical resourcing strategy also 
ignores the ongoing and significant role recruiting resources--
particularly advertising--have on both youth and influencer awareness, 
attitudes, and propensity. Therefore, it is imperative that we 
stabilize necessary recruiting resources. We appreciate this 
committee's untiring support of our recruiting programs and look 
forward to working together to ensure future success.
    As previously stated, fiscal year 2009 was a banner year for active 
duty recruiting. Altogether, the Services exceeded their goal of 
163,880 accessions by 5,088, accessing 159,374 first-term enlistees and 
an additional 9,594 individuals with previous military service.
    Fiscal year 2010 active duty recruiting efforts, to date, are even 
better. Through December, all Services met or exceeded both quantity 
and recruit quality objectives for the active force, with the Army 
achieving 13,977 of its 13,716 recruiting goal, for a 102 percent year-
to-date accomplishment (Table 1). Especially notable is the fact that 
for the second year in a row, after 4 years of falling below the 90 
percent DOD Benchmark for High School Diploma Graduates, the Army is 
now exceeding that measure, with an impressive 99.9 percent of new 
recruits holding that credential.
      
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    We should not lose sight of the fact that, although the overall 
youth population is large, only a relatively small proportion of 
American youth is qualified to enlist. It is an unfortunate fact that 
much of the contemporary youth population is currently ineligible to 
serve. Medical disqualification, with obesity a large contributing 
factor, removes 35 percent, drug or alcohol abuse removes 18 percent, 
and another 23 percent do not meet our standards for reasons such as 
criminal misbehavior, have more dependents than can reliably be 
accommodated in the early career, or low aptitude scores. Another 
estimated 10 percent are qualified, but are attending college.
    To expand the recruiting pool and assist the Services in meeting a 
special category of critical readiness needs, the Department initiated 
a 1-year pilot program, Military Accessions Vital to National Interest 
(MAVNI), allowing the enlistment of up to 1,000 of a select group of 
non-U.S. citizens who had been in the United States for at least 2 
years. Enlistments under this pilot are open only to health care 
professionals in critically short specialties and individuals with 
language skills and cultural backgrounds in a limited list of 
languages. We are currently reviewing results of this pilot program.
    But, given the overall limited pool of eligible youth, our 
continuing recruiting success does not come easily. It remains the 
result of long hours and hard work by the 15,100 dedicated and 
professional, active-duty military recruiters. These recruiters often 
are the sole representative of our military forces in local 
communities, and they have both my and the Department's most sincere 
respect and gratitude.
    This past August, we implemented the post-September 11 GI Bill--the 
most extensive restructuring of post-service education benefits since 
the introduction of the original World War II GI Bill. As I am sure you 
are aware, the Montgomery GI Bill (MGIB) has been a cornerstone of our 
active-duty military recruiting efforts since 1985. There is little 
doubt that the MGIB has met or even exceeded the expectations of its 
sponsors when it was enacted, and has been a major contributor to the 
success of the All-Volunteer Force.
    This new post-September 11 GI Bill should enhance our recruiting 
efforts even more. However, we remain cautious about the impact of such 
a major, new benefit on retention, particularly first-term retention. 
We hope that the provision in the new program that allows career 
servicemembers to share or transfer their GI Bill with immediate family 
members, long requested by both members and their families, will 
mitigate negative retention impacts. Early results look favorable, with 
over 100,000 career servicemembers already requesting authority to 
share their earned educational benefits with their family members. We 
are monitoring the effects of this implementation very closely.
Military Decorations and Awards
    The Department continues to work in concert with the Services to 
appropriately recognize and laud the accomplishments, both valorous and 
non-valorous, of our soldiers, sailors, marines, and airmen. In the 
AVF, appropriately recognizing the accomplishments of our 
servicemembers is fundamental to maintaining esprit-de-corps and a 
motivated force. It is most important that the Services recognize the 
significant acts and achievements of our servicemembers while 
simultaneously maintaining the time-honored prestige of our most 
revered military decorations such as the Medal of Honor, Distinguished 
Service Cross, Navy Cross, Air Force Cross, and Silver Star. I am aware 
of the concern from some Members of Congress in regard to the award of 
valor decorations and will closely examine the results of the ongoing 
review and report on the Medal of Honor awards process as requested in 
the House Armed Services Committee report language that accompanied the 
National Defense Authorization Act of Fiscal Year 2010.
Leave and Liberty Enhancements
    Given the ongoing operations tempo associated with Operations Iraqi 
Freedom and Enduring Freedom, the Department is acutely aware of the 
need to provide all soldiers, sailors, marines, and airmen with 
adequate leave and liberty opportunities, especially during and after 
deployments, for respite and reintegration, respectively. 
servicemembers serving in Iraq and Afghanistan are provided a much 
needed break from combat through the Rest and Recuperation (R&R) leave 
program. This vital program provides servicemembers, who are on long 
deployments, government funded transportation to the airport closest to 
their leave destination, and allows them to take 15 days of respite 
leave in an area of their choosing. For those servicemembers serving in 
the most dangerous and arduous areas of the combat zone, the R&R leave 
is not chargeable which not only recognizes their stressful duty but 
also provides more accrued leave to utilize upon redeployment for 
reintegration into their family and community. Additionally, the Post 
Deployment/Mobilization Respite Absence (PDMRA) program provides Active 
and Reserve component members who are deployed or mobilized above and 
beyond the Secretary of Defense's established deployment--dwell time 
ratios with respite nonchargeable administrative absence upon return 
from deployment or mobilization.
    I thank Congress for passing legislation, through the NDAA for 
Fiscal Year 2010, which allows our servicemembers to temporarily 
increase, from 60 to 75, the number of leave days authorized for carry 
over from 1 fiscal year to the next. This provision will reduce the 
frequency of lost leave for those servicemembers who have fewer 
opportunities to take longer leaves due to the persistent operational 
demands. The Department continues to monitor leave balances and lost 
leave to preclude avoidable loss of the benefit.
Retention
    For fiscal year 2009, the Department was very successful in 
attaining enlisted retention goals. All Active components met or 
exceeded their respective retention goals in every measurable category. 
The Services and the Department anticipate continued success in the 
upcoming year and are already meeting or exceeding the monthly goals 
for early fiscal year 2010.
    Despite the overall strength of enlisted retention over the last 
few years, there remain critical shortages in many low density/high 
demand skills and other ``hard-to-retain'' skills, such as explosive 
ordnance disposal specialists, linguists, intelligence and 
counterintelligence analysts, and pararescue operators, that justify 
the continuation and application of the statutory bonus authorities. 
The Selective Reenlistment Bonus (SRB) and the Critical Skills 
Retention Bonus (CSRB) are among the most effective and are authorized 
by 37 U.S.C. 308 and 37 U.S.C. 355, respectively, as incentives to 
attract/retain qualified personnel in critical military specialties.
    The Department's process to manage bonuses is very well defined. A 
skill is critical if it meets one or more of the following: (a) 
technical skills requiring high training and/or replacement costs; (b) 
skills in high demand in the civilian sector; (c) challenging to 
recruit into; (d) crucial to combat readiness or capabilities; and (e) 
low density/high demand (those skills that are in high demand for 
current operations yet are low density due to less requirements during 
peacetime). All requests from the Services must have a rigorous 
business case that clearly outlines the need for the bonus for that 
skill, payment amount and method, and expected retention results. 
Designations do not exceed 3 years, subject to congressional extension 
of the statutory bonus authority. The complementary authority of the 
CSRB is the Selective Reenlistment Bonus (SRB). The SRB is under the 
authority of the Service Secretaries and is not centrally managed by 
the Department. However, applications of the bonus authorities are 
reviewed at the Department and sent as an annual report to Congress.
Stop Loss
    The Army is the only Service with members currently extended under 
the Stop Loss authority. From a peak of 15,758 in 2005, the Army 
reduced the number of soldiers affected by Stop Loss to approximately 
8,000 at the end of December 2009. The Department is progressing as 
planned to completely end the use of the Stop Loss authority. Army 
units deploying after January 1, 2010, are no longer using the Stop 
Loss authority. The Department further expects to reduce the number of 
servicemembers on Stop Loss to less than 6,600 by June 2010. This is a 
50 percent reduction from February 2009 (date that the Secretary of 
Defense announced the milestones to end Stop Loss). All use of the Stop 
Loss authority will end by March 2011.
    Two Stop Loss Special Pays have been enacted which allow a payment 
of up to $500 per month for members whose active duty (retroactive to 
September 11, 2001) is or was extended by use of the Stop Loss 
authority. These pays were appropriated and authorized by the Congress, 
with the Department's support, to mitigate the impact and disruption 
that extensive use of Stop Loss had and has on the lives of 
servicemembers and their families. The Department implemented both 
pays, active and retroactive, and appreciates the support of Congress 
to compensate members for the unique circumstances presented by the use 
of this policy, while still preserving our ability to react with 
discretionary authority as dictated by future circumstances.
Separation Policy
    The Department continues to improve military discharge policies in 
response to conditions of the current war and its effects on those who 
serve. As we reported to Congress earlier, one such improvement is the 
addition of increased rigor when using a personality disorder as the 
basis for administratively separating servicemembers who had deployed 
to imminent danger areas. This more rigorous process now includes a 
review by the Surgeon General of the Military Department concerned, 
yielding greater confidence that servicemembers who should be separated 
due to post-traumatic stress disorder (PTSD) or traumatic brain injury 
(TBI) are appropriately processed for disability separation as opposed 
to personality disorder. The immediate evidence of the positive effect 
of the increased rigor is that the number of personality discharges has 
decreased from 81 at the policy's promulgation in September 2008 to an 
average of 16 per month in 2009. Also, in response to section 512 of 
the NDAA for Fiscal Year 2010, the Department is prescribing policy 
regarding a more in-depth medical examination to assess whether the 
effects of PTSD or TBI relate to the basis for an administrative 
separation for those servicemembers who are pending discharge or who 
were discharged under conditions other than honorable.
End Strength Management
    Meeting end strength is a priority of the Department. The table 
below depicts the fiscal year 2009 Active Duty authorizations 
(prescribed and actual) and fiscal year 2010 authorized levels which 
the Department intends to achieve. The Secretary of Defense has 
authority granted under the terms of the President's national emergency 
declaration to increase statutory strength levels prescribed by the 
National Defense Authorization Act if needed. The Services have 
implemented recruiting, retention, and force shaping policies and 
programs to achieve end strengths for fiscal year 2010. The Department 
appreciates the congressional support of the fiscal year 2010 end 
strength levels. These end strengths will provide the ground forces to 
meet strategic demands, eliminate the need for the use of Stop Loss, 
and mitigate persistent capability shortfalls which will reduce stress 
and demands on servicemembers and families by increasing dwell time.
      
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Force Development
    The Department continues to emphasize joint officer development and 
has made great strides in implementing the extraordinary authorities 
authorized in the 2007 NDAA. Active and Reserve component participation 
continues to grow, and the adjudication of over 3,200 joint experiences 
from nontraditional joint duty assignments attests to the Department's 
ability to recognize joint experiences whenever and wherever they 
occur.
    Joint officer management is not the only area of significant 
improvement for the officer corps. We appreciate the authorities 
provided by Congress in the fiscal year 2009 and 2010 NDAAs that allow 
the development of general and flag officers with the joint knowledge 
and skills necessary to lead and counter emerging threats. This 
landmark general and flag officer management legislation apportioned 
general and flag officer authorizations between internal and external 
Military Service requirements, ensuring the statutory responsibilities 
of the military departments and the joint warfighter can be met.
    The enactment of conforming legislation from the Department's 2010 
legislative package is also serving to dramatically accelerate the 
development of joint experience in the Reserve components. The 
legislation expanded on the previously enacted statutory framework 
affording the Military Departments the opportunities to purposefully 
develop officers from the Reserve components for senior posts in joint 
warfighting organizations. This delivered on the promise of the charter 
Goldwater-Nichols legislation by institutionalizing joint officer 
development through the senior officer grades regardless of component.
Compensation
    The Department and Congress continue their strong commitment to 
provide a secure standard of living and quality of life to those who 
serve in uniform. Today, we find ourselves empowered with a never 
before seen set of flexible and targetable pay authorities which enable 
the Department to dynamically address recruiting and retention and 
achieve specific and desirable effects. We also find ourselves with 
large fixed costs encompassed in our entitlements, and the prospect of 
continued growth in that area. To secure sufficient personnel for the 
Armed Forces, the Department must provide a compensation package 
comparable and competitive in the private sector while at the same time 
balancing the demands of an All-Volunteer Force in the context of 
growing equipment and operations costs.
    The Department continues this commitment through the President's 
request for a 1.4 percent increase in military pay for all 
servicemembers in the fiscal year 2011 budget--an amount that equals 
earnings increases in the private sector as measured by the Employment 
Cost Index. Of note, since January 1, 2002 through the January 1, 2010 
pay raise, military pay has risen by 42 percent, the housing allowance 
has risen by 83 percent, and the subsistence allowance has risen by 40 
percent. During this same period, private sector wages and salaries 
have only risen by 32 percent. Government Accountability Office (GAO) 
is currently auditing the overall adequacy of military pay, as well as 
the appropriateness of the benchmarks used to measure any gaps relative 
to the private sector and its report is due April 2010. We are 
confident regular military compensation will compare favorably with pay 
in the private sector. While there is little question that those levels 
of increase were necessary in the past, the Department now finds itself 
at a point where discretionary spending offers the best ability to 
target specific skills, and the quantity and quality of those filling 
such positions.
    Collateral to the GAO review, the President recently commissioned 
the eleventh Quadrennial Review of Military Compensation. The four 
themes he has asked the panel to focus on continue the thesis of 
tailoring pays beyond entitlements to target groups and behaviors. This 
review, in general terms, will be looking at the compensation package 
for service performed in combat of hostile areas; compensation for our 
Reserve components in light of current and planned utilization; 
compensation benefits available to our wounded, those who care for them 
and the survivors of those fallen; and the pay and incentives for some 
of our most critical fields, including mental health professionals, 
special operators, operators of remote systems and those with 
specialized linguistic skills. With the recently consolidated pay 
authorities, I am confident in saying Congress has given us the tools 
we need to address each of these areas; what remains is identifying the 
best combination of the pays to achieve the ideal combination of outlay 
to impact. The Department, as always, welcomes the continuance of these 
authorities, but would be generally opposed to continued entitlement 
growth beyond indexed levels in the absence of specific goals and 
outcomes supported by studies such as those just discussed.
    Similar to our efforts to target and define the impacts of each pay 
with our active personnel, we must continue to ensure we support those 
who have already served, but again, we must do so in an equitable 
manner and one that is consistent with the overall demands of the 
Department. As an example, the Department continues to oppose efforts 
to eliminate the offset between the Survivor Benefit Plan (SBP) and 
Dependency Indemnity Compensation (DIC) programs. Allowing concurrent 
receipt of SBP and DIC without offset would create an inequity with one 
select group receiving two survivor annuities, while survivors of most 
military retirees and survivors of veterans who died of service 
connected cause, but were not retired, would receive only one or the 
other. At the same time, in seeking that broader equity and Department-
wide impact, we see a win-win opportunity in expanding the concurrent 
receipt program to include military disability retirees with less than 
20 years of service regardless of disability rating. This expansion 
would cover our most challenged retirees by allowing them to receive 
retired pay for their years of service performed and VA disability 
compensation for their future reduced earning capability.
    Overall, the state of military compensation is healthy. We have 
improved our overall entitlements to the point that all of our 
personnel are paid at or above the 70th percentile of their civilian 
counterparts. We have eliminated out-of-pocket expenses for housing to 
fully cover, on average, the costs of comparable civilian housing.. We 
have gained a new and dynamic set of authorities which we are in the 
midst of implementing. For the first time, we truly have the ability to 
target pay with pinpoint accuracy to achieve desired aims and maximize 
effects of dollars spent. Our challenge today is to maintain this 
position without imposing greater long term bills, while using our 
targetable tools to shape and manage our force.
Legislative Fellowship Program:
    The Legislative fellowship program is a unique and excellent 
opportunity for members with great potential to serve to learn the day-
to-day functions of the Legislative Branch of Government and is a 
valuable experience in the professional development of career military 
members or civilian employees in the Department. The Services and 
Components assign their Legislative Fellows to appropriate follow-on 
tours, which the Department monitors for each Fellowship cycle. Typical 
of the follow-on assignments are positions in: the House and Senate 
Liaison Divisions of the Services; the Office of the Secretary of 
Defense (Legislative Affairs); the Combatant Command Headquarters with 
duties associated with interacting with Congress; Service primary 
staffs responsible for legislation development and interaction with 
Congress; and the Staffs of senior leaders. The Secretary of Defense 
established the maximum number of Legislative Fellows at 100. The 100 
Legislative Fellowships are broken out in calendar year 2011 as 
follows: 
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    Legislative Fellows serve no more than 12 months in the House or 
Senate. The Legislative Fellowship Program is the only program that 
authorizes Department of Defense personnel to work in Congress on a 
more than temporary basis and the program and policies are clearly 
promulgated in a DOD Instruction. Legislative Fellows are selected 
under Service competitive selection process and approved by the OUSD 
(P&R).
                           reserve component
    Achieving the defense strategy articulated in the Quadrennial 
Defense Review (QDR) requires a vibrant National Guard and Reserve 
seamlessly integrated into the Total Force. National Guard and Reserve 
units and individual members are heavily utilized across the full 
spectrum of current military operations, ranging from combat missions 
in support of the global war on terror to homeland emergencies. The 
Guard and Reserve have demonstrated their readiness and ability to make 
sustained contributions, and to prevail in today's wars, the Reserve 
components must serve in an operational capacity--available, trained, 
and equipped for predictable routine deployment--as well as a strategic 
capacity. Preventing and deterring conflict will likely necessitate the 
continued use of some elements of the Reserve Component (RC) in an 
operational capacity well into the future, especially in high-demand 
skill sets. Accordingly, the Department will use the Guard and Reserve 
where needed as an operational Reserve, rather than the ``force of last 
resort,'' to fulfill requirements for which they are well suited in the 
United States and overseas. Today's Citizen Warriors have made a 
conscious decision to serve, with full knowledge that their decision 
means periodic recalls to active duty under arduous and hazardous 
conditions.
    Consistently averaging about 140,000 National Guard and Reserve 
members mobilized to support ongoing operations on a daily basis, the 
Reserve components continue to make significant contributions to the 
national defense. The fiscal year 2011 budget provides about $50 
billion for pay, training, equipping, and facilities to support the 
Reserve components of the Army, Navy, and Air Force in their respective 
Reserve components as operational Reserve Forces. The budget includes 
an across-the-board pay raise of 1.4 percent, along with pay and 
allowances for over 1 million personnel. Operating funds support 
necessary training requirements to ensure deploying personnel are fully 
mission-ready.
    The fiscal year 2011 budget request supports the Department's Ready 
Reserve totaling about 1.1 million members contributing about 43 
percent of the total military end strength at a cost of about 9 percent 
of the total base budget. The Ready Reserve consists of the Selected 
Reserve (about 838,300), the Individual Ready Reserve (IRR) about 
(250,000), and the Inactive National Guard (ING) (about 2,000). This 
budget request includes about $53.3 billion to fund pay and allowances 
and costs of Reserve component training, incentives, equipment 
operation and maintenance costs, and readiness training costs for 
eligible military personnel. This amount includes $5.5 billion for 
Reserve component equipment procurement, which is funded by the 
military departments as a subset of their Active component procurement 
budget.
    Managed as strategic and operational forces, the total Reserve 
component structure operates across the continuum of military missions 
performing both strategic and operational roles in peacetime, wartime, 
contingency, domestic emergencies and homeland defense operations. As 
such, the Services organize, resource, equip, train, and utilize their 
Guard and Reserve components to support mission requirements to the 
same standards as their Active components. The budget supports 
preparation of both units and individuals to participate in missions, 
across the full spectrum of military operations, in a cyclic or 
periodic manner that provides predictability for the combatant 
commands, the Services, servicemembers, their families, and civilian 
employers, while potentially increasing the Department's overall 
capacity and reducing costs.
    To help reduce Active component ``dwell to deployment'' ratio, all 
Reserve components are moving towards a more rotational process, 
characterized by a period of active service thereby relieving active 
force burden, and then followed by an extended period at home. The 
current mobilization policy issued in January 2007 by the Secretary of 
Defense mandated involuntary mobilizations be limited to no more than 
12 months, which does not include individual skill training days 
required for mobilization or deployment or terminal leave. The 
Secretary of Defense also set a goal of not more than 1 year mobilized 
in any 6 year period for the Reserve components. The Services are 
moving toward this goal as quickly as possible given current 
operational requirements. Unlike before, when the RCs were usually 
funded at less than full readiness because they were not first to 
fight, specific units now must be fully resourced in any given year. 
This new train-mobilize-deploy construct means that the RCs must be 
ready, manned, trained, medically and dentally prepared, and equipped 
when their scheduled availability comes up, and they must be funded 
accordingly.
Resourcing Operational Reserve Forces
    Managing the Reserve components as operational forces affects 
training schedules and funding requirements, including medical 
readiness. In the past, normal training profiles meant training about 2 
days per month plus 14 to 15 days of active duty for training annually, 
during which time Reserve component personnel were required to train to 
the same standards as their Active counterparts. While that training 
profile remains for some units, current Department policy states that 
for those with planned deployments, training days prior to mobilization 
must increase. This training profile, with more training pre-deployment 
and less post-deployment, minimizes mobilized time away from families 
and civilian jobs and will require a different resourcing approach. In 
general, the land based (Army and Marine Corps) Reserve components 
train according to this new profile, meaning that funds which had been 
consumed after mobilization from the active accounts are now required 
and expended prior to mobilization from the Reserve accounts. This 
change in training profiles means a simple comparison to prior year 
execution funding models can be misleading. For fiscal year 2011, 
Congress has authorized Reserve component military personnel budgets to 
be consolidated into a single budget activity, allowing much improved 
management of Reserve component assets and more agile fund allocation. 
This flexibility is especially crucial for managing funds for the new 
operational Reserve, and the Department greatly appreciates this 
Congressional approval.
Equipping and Basing Operational Reserve Forces
    The fiscal year 2011 budget requests $5.5 billion for Reserve 
component equipment, and provides greater transparency and more robust 
funding for vital equipment needs as the Department continues to ensure 
that deployed and next-to-deploy units, whether in the active or 
Reserve component, receive the highest equipping priority. Effective 
and realistic readiness training at home requires that the National 
Guard and Reserve have access to equipment compatible with the active 
components and used in the assigned operational environment. 
Modernization, mission transformation, equipment replacement due to the 
war losses, and homeland defense are all catalysts for a new approach 
to equip the Reserve components.
    In the past, the Reserve components often relied on cascaded or 
``hand-me-down'' equipment from the Active components and they often 
were short in their equipment inventories. The fiscal year 2011 budget 
contains funds needed for Reserve component equipment procurement to 
continue that transition, repair and replace war-damaged equipment, and 
to correct longstanding deficiencies. The budget request includes funds 
for equipment that will not only improve combat readiness but will also 
allow the National Guard to further improve its ability to respond to 
local domestic emergencies.
    Additionally, the Guard and Reserves previously have been a low 
priority for receiving new equipment. But today that standard has 
changed and these Forces receive the same equipment as their Active 
counterparts. We have achieved major progress in programming funds and 
equipping our Reserve components for an operational role. With this 
operational role comes the requirement for equipment transparency in 
form of increased visibility and accountability for the National Guard 
and Reserve in the programming and budgeting process. 
Institutionalizing this process will ensure an adequate mission 
capability for foreign and domestics responses and we are proceeding in 
that direction.
    The Reserve components request $1.4 billion for military 
construction (MILCON) projects. These projects will meet both current 
and new mission requirements for RC operations, readiness, and training 
facilities.
                         readiness and training
Deployment and Dwell
    Multiple deployments to Iraq and Afghanistan have certainly 
increased the stress on our servicemembers and their families. We have 
a number of initiatives underway to address this stress, and have set 
clear limits and goals for deployment lengths and the amount of time or 
``dwell'' between deployments.
    To that end, we have limited unit deployments to 1 year in theater, 
with a minimum of 1 year between deployments for our Active component. 
Our goal is to increase the time between deployments to 2 years for 
every year deployed, commonly called a 1:2 ``dwell'' ratio. For the 
Reserve component, we have limited the mobilization period to 1 year, 
and strive to have a minimum 3 year break between mobilizations. The 
goal for Reserve component dwell ratio is 1 year mobilized with a 5 
year break between mobilizations, or a 1:5 dwell ratio.
    Dwell time is driven by the number of forces deployed for missions 
around the world against the supply of available forces. We have 
increased the supply of forces by increasing the end strength for the 
Army, the Marine Corps, and Special Operations Forces. We also expect 
to make progress toward meeting the dwell goals as we drawdown forces 
in Iraq.
Defense Mishap Reduction Initiative.
    As Chair of the Defense Safety Oversight Council (DSOC), I have 
been chartered to ensure that the Department is making steady progress 
toward the Secretary's goal of a 75 percent reduction in all accidents. 
The Department has made considerable progress to date due to the 
tremendous effort of our military and civilian leaders. From our 2002 
baseline, we have reduced our civilian lost workday rate 41 percent, 
are down 31 percent in our private motor vehicle fatality rate, and 
dropped our Class A aviation accident rate 56 percent.
    The DSOC is supporting the Military Departments' pursuit of the 
Occupational Safety and Health Administration's (OSHA) Voluntary 
Protection Program (VPP) at more than 200 DOD installations and sites. 
We have 30 sites that have already attained OSHA's Star recognition and 
we expect 17 more sites by the end of 2010. Their OSHA Star status 
designates them as exemplary worksites with comprehensive, successful 
safety and health management systems, and improved labor/management 
relations.
    We recently completed a comprehensive, data driven assessment to 
further prevent aircraft crashes, save military lives, and reduce the 
need for replacement aircraft. The task force, consisting of a variety 
of experts from across the Department, recommended that the military 
aviation communities acquire technologies for collision awareness, 
crash survivability, and risk management. As a result of this important 
work, the military departments are making further investments in 
hardware and software that will avert aircraft crashes. With your 
continued support, we can make further progress in preventing injuries, 
fatalities, and aircraft crashes; and be well on our way towards 
attaining the Secretary's accident reduction goal.
                         military health system
Health Budgets and Financial Policy
    The fiscal year 2011 budget reflects several areas of continued 
emphasis, including the modernization of our medical infrastructure and 
full funding and support of our Wounded, Ill and Injured programs. The 
Unified Medical Budget, the Department's total request for health care 
in fiscal year 2011, is $50.7 billion. This includes the Defense Health 
Program, Military Personnel, Military Construction, and Medicare-
Eligible Retiree Healthcare. Major increases in the budget request 
include $0.8 billion for medical and general inflation; $1.2 billion 
for private sector care costs due to an increase in users of TRICARE 
and an increase in utilization of the TRICARE benefit; $0.6 billion for 
enhancements for the Direct Care system; and $0.3 billion for 
modernizing the Department's electronic health record to enable data 
compatibility for the Virtual Lifetime Electronic Record, and 
correcting critical system problems, increasing user satisfaction, and 
improving system reliability and availability.
    Our primary and enduring responsibility is to provide the highest 
quality care to our beneficiaries, using the most current medical 
evidence to drive our clinical decisionmaking; and one of our 
fundamental tenets is that quality of care is also cost-effective. In 
addition, there are a number of actions we have undertaken and will 
continue in fiscal year 2011 to continue to provide value to the 
Department and the taxpayer. The ways we are addressing cost 
effectiveness in fiscal year 2011 include:
         continued implementation of Federal Ceiling Pricing of 
        retail pharmaceuticals ($842 million savings);
         continued implementation of the Outpatient Prospective 
        Payment System, which reduces the reimbursement paid for 
        outpatient care at inpatient private sector care facilities 
        ($366 million savings)
         standardization of medical supply chain management 
        across the full range of military health care operations ($27 
        million savings);
         increasing efforts to identify and detect fraud, 
        waste, abuse, and overpayments to civilian medical providers 
        ($68 million savings); and
         additional VA and DOD facilities sharing--most notably 
        the first fully integrated Joint DOD/DVA healthcare 
        collaboration consisting of the North Chicago Veterans Affairs 
        Medical Center and the Navy Ambulatory Care Center, Great 
        Lakes, IL.
Health Affairs/TRICARE Management Activity Strategic Direction
    In 2002, the assistant Secretary of Defense for Health Affairs 
(ASD/HA) aligned policy and program execution strategies under Health 
Affairs/TRICARE Management Activity (HA/TMA). In HA/TMA, as in most 
organizations, the bridge from strategy to execution was challenging, 
and the organizational alignment, still in effect today, was intended 
to streamline processes for faster and more effective execution of 
policies and programs. Under this arrangement, HA is setting clear 
strategic direction for the Military Health System (MHS) in partnership 
with the Services.
    For the past 12 months, HA/TMA has worked closely with the Service 
Surgeons General on initiatives that have coalesced around a strategic 
initiative known as the ``Quadruple Aim.'' Borrowing liberally (and 
with permission) from the nonprofit Institute for Healthcare 
Improvement's (IHI) ``Triple Aim,'' the Department is focusing on four 
strategic imperatives:
         Readiness - Ensuring that the total military force is 
        medically ready to deploy and that the medical force is ready 
        to deliver health care anytime, anywhere in support of the full 
        range of military operations, including humanitarian missions.
         Population Health - Improving the health of a 
        population by encouraging healthy behaviors and reducing the 
        likelihood of illness through focused prevention and the 
        development of increased resilience.
         Experience of Care - Providing a care experience that 
        is patient and family centered, compassionate, convenient, 
        equitable, safe, and always of the highest quality.
         Responsibly managing the total health care costs - 
        Creating value by focusing on measuring and enhancing quality 
        healthcare; eliminating inefficiencies; reducing unwarranted 
        variation; and emphasizing investments in health that reduce 
        the burden and associated cost of preventable disease in the 
        long term.
    There are many important initiatives that will emerge from this 
strategic direction. One of the most vital, because it will have 
effects across all four components of the Quadruple Aim, is the 
``medical home'' concept being piloted by all three Services. This 
approach takes the existing construct of a primary care manager and 
enhances it through improved access to care. Features will include 24/7 
access to a provider through multiple avenues--that will include 
leveraging technology to avoid unnecessary visits or emergency room 
visits. More importantly, it will enhance continuity of care and 
greatly improve satisfaction with service. The early results from pilot 
sites are very encouraging, and we are applying lessons learned from 
these sites to improve the program as we proliferate it across the 
Department.
    With the shared vision of the Quadruple Aim and a revised decision-
making process, the MHS is laying the groundwork for a smooth 
transition under the BRAC-directed co-located medical headquarters in 
the National Capital Area (affecting HA/TMA and the Services' Surgeons 
General staffs). The co-location initiative offers significant 
opportunities to achieve even greater unity of effort.
Mental Health Professionals
    Significant effort has been made to recruit additional mental 
health personnel in order to meet the growing demand for behavioral 
health services in the Department. Since 2007, the number of active-
duty mental health providers has remained relatively constant, yet we 
expect the Consolidation of Special Pay language (10 U.S.C. Sec. 335) 
recently implemented will have a significant effect on retention of 
psychologists and social workers.
    Our work to recruit civilian mental health providers has been very 
effective. Table 3 shows the Services total mental health needs/
requirements as compared to the number of providers on-hand as of the 
third quarter of fiscal year 2009. The Navy and the Air Force compare 
assigned personnel versus requirements. The Army's growing needs are 
not completely reflected by official requirement documents yet, and 
thus they are identified as ``needs.'' Table 4 shows the significant 
improvements in total Mental Health personnel that have been made since 
2007, including in the TRICARE Network.
      
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Suicide Prevention
    The Department's civilian and military leadership remain focused on 
employing numerous strategies to reduce the incidence of suicide in the 
Armed Forces. In calendar year 2009, there were a total of 312 
suicides--285 in regular components and 26 in Reserve Components--
marking an increase from 268 in calendar year 2008. Suicides within the 
Regular Components increased from 235 in calendar year 2008 to 285 in 
calendar year 2009. Demographic risk factors are: male, Caucasian, E-1 
to E-2, younger than 25 years old, GED/less than high school education, 
divorced, and in the Active Duty component. Other factors associated 
with suicide, which are consistent with data from the civilian 
population, are: substance abuse, relationship problems, legal, 
administrative (article 15), and financial problems. Although the 
impact of role of deployment on suicide risk is still under 
investigation, a majority of suicides do not occur in the theaters of 
operation.
      
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    When a servicemember has a problem, he or she can, in most cases, 
receive confidential help from military and other mental health 
providers. However, if the individual is unable to perform his/her 
duties, is homicidal or suicidal, or is in a sensitive duty, the 
commander will be notified for safety reasons. Resources available to 
servicemembers and their families include: confidential problemsolving 
counseling through Military OneSource, online information and tools at 
militarymentalhealth.org and afterdeployment.org, confidential pastoral 
counseling with chaplains, Military Family Life Consultants (active 
duty and families), military mental health providers, Service-level 
counseling centers, and access to information and referral to mental 
health professionals through the Defense Centers of Excellence for 
Psychological Health and Traumatic Brain Injury (DCoE) Outreach Center.
    The Department and Services recognize suicide prevention begins 
long before an individual exhibits suicidal ideation. Comprehensive 
programs focus on enhancing resilience and early identification 
designed to reduce psychological health issues or disorders that may 
contribute to suicide risk. Leadership at every level receives training 
on warning signs, resources, healthy lifestyle choices, and actions to 
take if an intervention is deemed necessary. The Suicide Prevention and 
Risk Reduction Committee (SPARRC) is a forum for developing/expanding 
partnerships among the Services, VA, Federal and civilian partners. The 
SPARRC's goal is to improve policies, programs and systems across the 
Department while providing support for medical, line, and community 
leaders. Chaired by DCoE, the SPARRC includes representatives from all 
Services, VA, SAMHSA, Center for Disease Control, Medical Examiners, 
Chaplains, Telehealth/Technology and National Guard/Reserves.
    The Department also collaborates with VA and the Substance Abuse 
and Mental Health Services Administration (SAMHSA) on suicide 
prevention efforts. This includes an annual joint DOD/VA conference on 
reducing the rate of suicides in the Active Duty components, Reserve 
components, and veteran populations. The January 2010 DOD/VA Suicide 
Prevention Conference, ``Building Strong and Resilient Communities,'' 
brought together over 900 servicemembers, family members, and mental 
health professionals throughout DOD, VA, and other Federal agencies. 
The conference highlighted practical tools, personal stories, and 
ongoing efforts in supporting the community.
    The Department's mental health initiatives dovetail with both the 
Readiness and Population Health components of the Quadruple Aim. We 
have developed metrics that we closely monitor to determine if our 
programs are effective and if our policies are being effectively 
implemented. We are also broadening our view of readiness, to include 
perspective on the ``readiness'' of an entire family for a 
servicemember's deployment. In 2010, we will expand our measures to 
include this more expansive view of readiness--and consequently, better 
manage pre-deployment, deployment, and post-deployment activities for 
the Total Force.
    We recognize the number of suicides continues to increase and 
suicide has a multitude of causes, and no simple solution. There are 
many potential areas for intervention, and it is difficult to pinpoint 
the best approach because each suicide is unique. Recognizing this, DOD 
is tackling the challenge using a multi-pronged strategy involving 
comprehensive prevention education, research, and outreach. We believe 
in fostering a holistic approach to treatment, leveraging primary care 
for early recognition and intervention, and when needed, providing 
innovative specialty care. The areas of focus to reduce risk include: 
(1) conducting data collection and analysis to detect contributing risk 
factors; (2) facilitating partnerships across DOD, Federal, and 
civilian organizations to increase collaboration and communication; (3) 
reducing stigma and increasing access to resources to provide needed 
care; and (4) using research to close gaps and identify best practices.
Health Informatics
    The DOD's Electronic Health Record (EHR) continues to be a key 
enabler of military medical readiness; giving healthcare providers 
secure, 24/7, worldwide access to medical records of our highly mobile 
patient population. Across the enterprise, the EHR supports uniform, 
high-quality health promotion and healthcare to more than 9.5 million 
MHS beneficiaries. Using the EHR, our healthcare providers access the 
electronic medical records of MHS beneficiaries from any point of care 
throughout the direct care system.
    The MHS Information Management/Information Technology Strategic 
Plan for 2010--2015 provides the roadmap for improving the EHR, and 
lists EHR improvement as a top IM/IT priority. Using this roadmap, MHS 
will effectively execute its action plan to stabilize the current 
system while transitioning to a suite of EHR applications and 
supporting infrastructure that will improve reliability, speed, user 
interface and data integrity, and achieve higher satisfaction from all 
users. These improvements will enhance IT interoperability within the 
MHS and support planned improvements in electronic health data sharing 
with VA and our private sector care partners.
    For future years, ICIB will prioritize additional health related 
sharing capabilities or usability enhancements to continue the 
advancement of DOD/VA interoperability in a manner that supports 
clinicians in healthcare delivery. The Departments will continue to 
work together to improve and expand upon the interoperability of 
appropriate healthcare data as appropriate and necessary.
Virtual Lifetime Electronic Record (VLER)
    On April 9, 2009, President Obama announced that DOD and VA would 
work together to create of a ``virtual lifetime electronic record'' 
(VLER) for servicemembers and veterans. While the Department and VA 
already share an unprecedented amount of health care information 
between the two systems, a very large portion of health care to our 
beneficiaries comes from private sector contract providers. The DOD, 
VA, and the Department of Health and Human Services are working 
together to promote access of electronic health care information for 
care provided in DOD, VA, and private sector facilities while DOD and 
VA continue to leverage work already done to improve our capabilities 
for sharing information.
    VLER will rely on the Nationwide Health Information Network (NHIN) 
as the mechanism to share standards-based health data between DOD, VA, 
and private sector partners. Well-defined standards are the essential 
foundation for interoperability among systems. These standards will be 
guided by the Department of Health and Human Services (HHS) and will be 
consistent with the NHIN model based on the Federal Health 
Architecture.
    DOD and VA have been active participants and among the leaders in 
the development of the NHIN working with the HHS Office of the National 
Coordinator for Health Information Technology. The NHIN will tie 
together health information exchanges, integrated delivery networks, 
pharmacies, government health facilities and payers, diagnostic 
laboratories, providers, private payers, and other stakeholders into a 
``network of networks.'' The NHIN provides a national standards-based 
mechanism for previously unconnected electronic health records and 
other sources of healthcare information to share information securely 
while respecting and enforcing mandates for guarding patient privacy.
    Working together with HHS and private health care providers, DOD 
and VA are creating a capability that will take a huge step towards 
modernizing the way health care is delivered and services are 
administered for our Nation. VLER will allow health care providers 
access to servicemembers' and veterans' military medical records, 
providing the information needed to deliver high-quality care. VLER 
will do all of this with the strictest and most rigorous standards of 
privacy and security, so that our servicemembers and veterans can have 
confidence that their medical records can only be shared at their 
direction.
    VLER is not a large acquisition program nor will VLER result in one 
single DOD/VA Information Technology (IT) system. Rather, VLER builds 
on the electronic health care systems already in place in DOD, VA and 
the private sector. Even if DOD and VA were to embark on a huge 
acquisition program to implement a single system, they would still not 
be able to access the critical information captured by the private 
sector. The VLER solution is viable for the entire health care 
community and enables each individual entity to develop and maintain 
their own internal systems. It creates an opportunity for competition 
since it uses well-documented standards that can be implemented through 
a variety of electronic health initiatives that can be linked to the 
NHIN.
            military family support and wounded warrior care
    This past year, due to the high level interest in supporting 
military families, resources were increased to institutionalize 
servicemember and family support programs across the Department. A 41 
percent increase in the Defense-wide family assistance baseline funding 
in fiscal year 2011 from fiscal year 2010 will provide lifelines of 
support for servicemembers and their families through outreach to Guard 
and Reserve members and families, Military OneSource 24/7 accessible 
family support assistance, referrals for counseling, financial 
education and training, and access to education, training certification 
opportunities leading to a portable career for spouses.
    To ensure we are on-target in investing in programs needed by 
servicemembers and their families, we initiated an extensive strategic 
planning process to address the current issues facing family readiness 
programs, beginning with a thorough assessment of existing needs, 
programs, and related issues. A variety of methods were used to gain 
input from key players across the system, including family members, 
support professionals, non-governmental organizations, land-grant 
universities, and senior DOD leadership.
Child Care
    Access to child care remains a top priority for the Department. 
Efforts are ongoing to meet the needs of our deployed families, 
including National Guard and Reserve families. We have expanded respite 
child care options through the YMCA program, offering opportunities for 
geographically isolated families to help mitigate the stress 
experienced by the parent at home. These efforts augment the respite 
child care provided by the Military Services.
    We continue to reduce the unmet need for child care, yet are 
cognizant of the ongoing need to recapitalize our aging child and youth 
facilities. We need to eliminate barriers to hiring practices key to 
expanding our partnerships with community child care providers. The 
temporary program to use minor military construction authority for the 
construction of child development centers provided a means to increase 
the availability of quality, affordable child care for servicemembers 
and their families. This authority expired at the end of fiscal year 
2009, and we have proposed legislation to reinstate the authority. The 
legislation would also expand age limit requirements from 5 years old 
to 12 years old to include children in school age care programs, 
broaden the authority to include other family support initiatives 
(e.g., family center, fitness facilities, etc.), and increase the 
funding authority to $15 million for all projects.
Youth Programs
    We are also deeply committed to addressing the needs of our 
military youth. More than 350 dynamic, innovative and successful youth 
programs serve more than 500,000 military connected children and youth 
between the age of 6-18 worldwide. Programs promote positive youth 
development and prepare pre-teens and teenagers to meet the challenges 
of military life, adolescence, and adulthood. Partnerships with other 
youth-serving organizations enable the Department to offer resources in 
a variety of domains, including physical fitness and sports; arts and 
recreation; training in leadership; life skills; career/volunteer 
opportunities; mentoring; intervention; and support services. 
Programming supports character and leadership development, sound 
education choices, healthy life skills, the arts, and sports and 
recreation. Many programs offer summer day camp and youth employment 
opportunities. Twenty-two youth facilities were funded in 2008 and 
2009, totaling $145.6 million in non-appropriated funds; this support 
constitutes a critical aspect of family support. Six youth facilities 
are funded for fiscal year 2010 and fiscal year 2011, totaling $49.7 
million.
Family Advocacy Programs
    The DOD Family Advocacy Program (FAP) plays a key role in 
addressing familial physical, sexual, and emotional abuse and neglect 
involving military personnel in the active component as victims and 
abusers. On each military installation with command-sponsored families, 
there is a FAP that provides services in prevention, identification, 
intervention and treatment of child abuse and neglect and domestic 
abuse. Two key programs, the New Parent Support Program and treatment 
programs for substantiated spouse abusers have been tied to outcomes 
for prevention.
Casualty and Mortuary Affairs Programs
    The Department remains committed to providing the highest quality 
of compassionate and caring assistance to families of fallen 
servicemembers for as long as they determine assistance is needed. 
After which, additional assistance can be obtained by a simple phone 
call or letter written to the appropriate Service Casualty Office. 
Since early 2006, the Department has worked extensively with the 
Military Services; the Department of Veterans Affairs; the Social 
Security Administration; family support organizations; nonprofits 
groups, and more importantly, survivors, to ensure our policies and 
procedures are standardized to the maximum extent possible, more 
customer focused, and flexible enough to address unique situations.
    While the Department has made many enhancements to the Casualty 
Assistance Program, we recognize there is always room for improvement 
and therefore we strive every day to make it better, simpler, more 
respectful, and more compassionate. As the Secretary stated, ``When 
young Americans step forward of their own free will to serve, they do 
so with the expectation that they and their families will be properly 
taken care of should anything happen to them.'' We listen to those we 
serve and to those organizations who have dedicated their existence to 
providing valuable support and services to survivors of the fallen. 
Together, our collaborative efforts will ensure our program will 
continue to be enhanced and our families provided the very best 
assistance possible.
Military OneSource
    Military OneSource (MOS) continues to have a positive impact on 
servicemembers and their families. OneSource offers a 24-hour/365-day 
centralized assistance program to provide diverse information and 
referral services by credentialed counselors to Active Duty, Guard, 
Reserves and their family members, regardless of physical location or 
activation status. Assistance can be provided in many languages. Since 
inception, Military OneSource has experienced exponential expansion. 
Over 739,000 telephone calls were received in fiscal year 2009, more 
than doubling the number of calls received in fiscal year 2008. The 
website received over 4 million visits, almost doubling the number of 
visits received during the prior year. Nearly one in three 
servicemembers uses Military OneSource.
    In general, the most common reasons for which a person sought MOS 
counseling were marital and intimate relationships, stress management, 
family relationships, and anger management. In addition, MOS financial 
counseling support is offered in-person and telephonically. In fiscal 
year 2009, MOS conducted 4,501 financial counseling sessions. The most 
common reasons for which a person sought financial counseling support 
from MOS were budgeting and money management, overextension with bills, 
credit management, loans and consolidating loans, and mortgages and 
refinancing. In fiscal year 2009, OneSource assisted members and 
families with almost 600,000 tax filings at no cost to the family.
    The Wounded Warrior Resource Center (WWRC), accessed via Military 
OneSource, provides immediate assistance to the wounded and their 
families with issues related to health care, facilities, or benefits. 
The WWRC works collaboratively with the Military Services' wounded 
warrior programs and the Department of Veterans Affairs to ensure 
callers are promptly connected to the resources that can help address 
their needs. In fiscal year 2009, 1,200 cases for wounded warriors were 
handled.
Dependents' Education Programs
    A key quality of life issue is the education of military children. 
Servicemembers often make decisions about assignments based on the 
availability of quality educational opportunities for their children. 
The Department of Defense Education Activity (DODEA) provides quality 
pre-kindergarten through 12th grade educational opportunities and 
services to eligible military dependents around the globe where DODEA 
schools are located. Of the approximately 1.2 million military 
dependent children, DODEA educates nearly 85,000 in 192 schools in 12 
foreign countries, 7 States, Guam, and Puerto Rico with 8,700 
educators. DODEA also assists eligible military dependent students 
through a tuition reimbursement program for military assigned to 
overseas locations without a DODEA school.
    The ongoing relocation of military dependent students through force 
structure changes created a need to enrich and expand partnerships with 
military-connected communities to ensure the best possible educational 
opportunities for military dependent children. Through its Educational 
Partnership Initiative, DODEA was given expanded authority to assist 
local education agencies (LEA's) who educate military dependent 
students through efforts focused on highest student achievement. DODEA 
works collaboratively with the Department of Education to ease the 
transition of military students by sharing experience and expertise 
with LEAs who educate larger populations of military dependent 
students.
    Data from the Department of Education reports that there are 300 
LEAs with a military child enrollment of 5 percent or more. Of the 300 
LEAs with 5 percent military child enrollment, 153 of the LEAs are not 
meeting the State academic standards in reading/language arts and/or 
math using annual tests aligned to academic indicators. In addition, 
there is significant research surrounding the psychosocial effects of 
multiple deployments on school performance and student behavior. In 
fiscal year 2009, DODEA extended support through grants focusing on 
enhancing student learning opportunities to 44 school districts serving 
approximately 77,000 military children in over 284 schools.
    Through new technologies, DODEA is developing additional academic 
opportunities for its students. The focused efforts are to expand 
access to education and provide curricular options to eligible students 
within DODEA through the expanded use of distance learning. DODEA plans 
to transition its distance learning program into a virtual school 
program beginning with the implementation of fully accredited virtual 
high school in School Year in 2010-2011. These tools include real-time 
audio and video, document sharing, screen sharing and web collaboration 
to stimulate active teacher-student, student-student and student-
content interaction. A ``virtual hub'' model has been put into place 
that puts the teachers in locations closer to the students to 
facilitate interaction that simulate traditional classroom discussion 
and one-on-one tutoring.
    Beginning in 2008, DODEA implemented a new process for advising 
decision-making that focuses on highest student achievement and a 
thorough review of data, implementation, and effectiveness of programs. 
Part of the advisory process includes educator-led task groups which 
review and analyze data. DODEA task groups are convened for various 
reasons such as instructional and curricular topics, issues of interest 
from the field, or management needs. All task groups spend considerable 
time reviewing and analyzing information and data on a specific issue 
and then, through consensus, developing systemic recommendations sent 
to the Director to guide future educational actions. Currently, DODEA 
has seven on-going task groups.
Korea Tour Normalization
    United States Forces Korea (USFK), through the Tour Normalization 
Program, is aggressively increasing command-sponsored military families 
on the Korean peninsula for the primary purpose of establishing a 
higher quality of life for military families. In addition to the 
housing needs, this impacts educational needs. DODEA anticipates adding 
25 schools in Korea over the next 10 years, providing an end state 
program by 2020 of 31 DODEA schools in Korea. Student growth is 
expected to grow from 4,422 DODEA students currently in the Republic of 
Korea to 21,758 at the end state. This is approximately a 500 percent 
increase in the student population. DODEA is actively working 
programmatic details with USFK and local Military Service communities 
to support this effort.
MWR Support to Troops in Combat
    The ability to communicate with family and friends is the number 
one factor in being able to cope with longer and more frequent 
deployments. We continue to balance the most effective use of available 
bandwidth between mission and personal requirements, including wireless 
access. Currently, servicemembers have free access to the non-secure 
military Internet by using their military e-mail address, including 
aboard ships. They also have free Internet access at over 1,008 MWR 
Internet Cafes in Iraq and Afghanistan with 9,241 computers and 4,101 
Voice Over IP phones (with call rates of less than 4 cents a minute). 
Another 197 cafes, 2,191 computers and 1,154 phones have been funded 
for fiscal year 2010 for use in Afghanistan. To enhance MWR provided 
services, the Exchanges provide personal information services for a 
usage fee for this customer convenience. Back home, computers and 
Internet service located in our family support centers, recreation 
centers, libraries, and youth centers help ensure families can connect.
DOD-State Initiatives
    The Department continues to work with State governments to educate 
their policymakers on the life-challenges faced by servicemembers and 
their families and to ensure that state-level policies do not 
disadvantage military families' transient life style. States have 
addressed several key quality of life issues, to include the impact of 
frequent school transitions experienced by military children, the loss 
income by military spouses as a result of military moves, and the 
enforcement of the congressionally-mandated DOD predatory lending 
regulation. The response from states has affirmed their commitment to 
supporting the well-being of the Nation's fighting force. For example, 
27 States have joined the Interstate Compact on Educational Opportunity 
for Military Children, 36 States now provide eligibility for 
unemployment compensation to military spouses, and 30 States enforce 
the DOD predatory lending regulation. The Department is continuing this 
effort in the 2010 session and has added child custody to the slate of 
issues. In this regard, the Department is asking States to 
appropriately balance the interests of servicemembers who are absent 
due to military service with the best interests of the child by 
ensuring absences caused by military deployments are not the sole basis 
for permanent custody decisions and addressing delegation of visitation 
rights while the servicemember is deployed.
Special Needs
    The establishment of the Office of Community Support for Military 
Families with Special Needs was mandated by NDAA 2010. The purpose of 
the Office is to enhance and support Department of Defense support for 
military families with special needs to ensure parity across the 
Services. The Office will be headed by a member of the Senior Executive 
Services. It will be staffed with personnel in the fields of medicine, 
education, early intervention, social work, personnel and information 
technology, as well as members of the armed services to ensure 
appropriate representation by the military departments. Currently, 
plans are underway to identify the specific mix of staff and to create 
an umbrella Office of Community and Family Support with an emphasis on 
special needs, which will synchronize all family support needs with 
those of families with special needs.
Disability Evaluation System
    The Disability Evaluation System (DES) Pilot simplifies and 
restructures how servicemembers are evaluated for continued service and 
compensation as a result of a wound, injury, or illness. Based on the 
recommendations of several commissions and task forces, DOD and VA 
implemented the DES Pilot on November 26, 2007, at three National 
Capital Region (NCR) locations (Walter Reed, Bethesda, and Malcolm 
Grow). Since November 2007, this program has been administered jointly 
by the DOD and VA. The Pilot eliminates duplicate disability 
examinations and disability ratings by the Departments. The DOD 
determines fitness for duty; the VA examines and rates for disability. 
The rating is used by DOD for unfitting conditions and by VA for all 
service-connected or aggravated conditions. After March 2010, the DES 
Pilot will operate at 27 locations across the continental United States 
and Alaska and encompass 47 percent of all potential servicemembers' 
cases. Compared to the legacy system, case processing time has been 
nearly cut in half (46 percent decrease) for Active and Reserve 
component servicemembers. The Pilot will be expanded to encompass 100 
percent of the DES by December 2012. The DES Pilot Final Report which 
includes the results and recommendations for the DES Pilot-model 
worldwide implementation will be forwarded to Congress by May 31, 2010.
Transition Initiatives
    The Department has several initiatives relating to the Department 
of Defense (DOD) Transition Assistance Program (TAP). We began this 
fiscal year by convening the first Joint Interagency Strategic Working 
Group on the Transition Assistance Program in November 2009. We are 
also working on several employment initiatives with our partners at the 
Department of Labor. As an ex-officio member of the Secretary of 
Labor's Advisory Committee on Veterans Employment, Training and 
Employer Outreach (ACVETEO), the Department is looking at more 
efficient ways to connect employers with transitioning Services 
members, veterans and their spouses. We are also looking at revamping 
the Department of Labor (DOL) TAP Employer Workshop to make it more 
dynamic and ensure it is meeting the needs of our warriors. Finally, we 
continue to collaborate with DOL on how to ensure our wounded, ill and 
injured are being prepared for and get meaningful jobs.
    In addition to our work with DOL, this office assisted with the 
Office of Personnel Management (OPM) strategic plan as well as an 
executive order signed by the President in November 2009, which 
directed all Executive Branch Federal Agencies to increase the hiring 
of veterans. We are pursuing other initiatives like our work with the 
U.S. Interagency Council on Homelessness. The Department is assisting 
the council in developing a Federal Strategic Plan on Homeless. The 
plan will address ideas and ways to end homeless for our veterans, 
families, and youth.
    One of our most exciting initiatives was joining the social network 
community with the launching of the DOD TAP Facebook. We are taking 
advantage of the popularity of social media as another communication 
resource to promote transition services and benefits to military 
personnel and their families.
    Finally, we are working to improve outreach and education to all 
servicemembers to increase their participation in the Benefits Delivery 
at Discharge and Quick Start Programs. These programs allow eligible 
servicemembers to submit their application for disability compensation 
prior to separation or retirement.
                           civilian personnel
National Security Personnel System Transition
    The National Defense Authorization Act for Fiscal Year 2010 (NDAA 
2010) repealed the authority for the National Security Personnel System 
(NSPS) and requires the Department to transition out all employees and 
positions from NSPS to the appropriate non-NSPS personnel and pay 
system no later than January 1, 2012. The law provides no employee will 
suffer any loss of or decrease in pay upon conversion from NSPS.
    Planning for terminating NSPS is well under way with the goal of 
transitioning employees and organizations from NSPS back into their 
pre-NSPS personnel and pay system during fiscal year 2010. The rules of 
the gaining pay and personnel system will be followed in determining 
placement of NSPS employees. Since the majority of the 226,000 
employees covered by NSPS will transition to the General Schedule 
system, government-wide rules issued by the Office of Personnel 
Management (consistent with title 5, U.S.C.) are applicable. Until the 
transition takes place, organizations and employees currently covered 
by NSPS will continue to follow NSPS regulations, policies, and 
procedures. While the Department did not transition any bargaining unit 
employees into NSPS, approximately 900 employees organized after their 
organizations moved into the system. The Department plans to meet with 
representatives of national unions representing these NSPS bargaining 
unit employees to discuss transition issues and will ensure that local 
collective bargaining obligations are fully satisfied as these 
employees transition from NSPS back to the General Schedule. Transition 
timelines are being determined based on organizational readiness as 
evidenced by avoidance of undue interruption to mission and hardship to 
employees; established processes to classify NSPS positions into the 
appropriate non-NSPS personnel system; existence of an appropriate 
performance management system; and information technology capability. 
Prior to their transition out of NSPS, employees will be informed of 
their position classification under the non-NSPS personnel system. With 
limited, approved exceptions, no new appointments to NSPS will be made 
after March 1, 2010. The Department is tracking transition costs as it 
did with NSPS implementation costs. The organization that is guiding 
and directing transition planning and execution is the National 
Security Personnel System Transition Office (NSPSTO). The Director, 
NSPSTO is responsible for the development, coordination, and 
dissemination of supporting procedures, policies, and tools; and for 
developing training products and services for use by the Components in 
training employees and supervisors on all aspects of the transition. In 
addition, the Department is committed to providing open and frequent 
communications during the transition. The NSPSTO has redesigned its Web 
site to publicize up-to-date information on the transition, including 
transition toolkits that contain a variety of products such as 
conversion guides, fact sheets, brochures, articles, frequently asked 
questions, performance management guidance, timelines, and town hall 
briefings on the transition. The website and communications will be 
updated periodically as new information becomes available and new 
products are developed. In addition, the Department will deliver a 
report to Congress at the end of April 2010, as required by NDAA 2010, 
that covers the steps taken for the reclassification of NSPS positions 
and the initial plan for transitioning employees and organizations from 
NSPS; semiannual reports that cover transition progress will also be 
provided until all organizations and employees are out of NSPS.
Civilian Strategic Human Capital Planning and Forecasting
    With over 760,000 civilian employees, in over 600 occupations, 
supporting a myriad of critical missions, it is essential the 
Department have a structured plan to ensure civilian talent is in place 
to meet current and future mission requirements. To meet this demand, 
the Department is leading an enterprise-wide effort to establish a more 
structured, standard approach to Strategic Human Capital Management 
(SHCM), based on a combined effort of competency assessment and 
workforce analysis trending. The Department recognizes the need for a 
civilian workforce with the attributes and capabilities to perform 
seamlessly in an environment of uncertainty and surprise, execute with 
a wartime sense of urgency, and create tailored solutions to multiple 
complex challenges. We are institutionalizing an updated, integrated 
human capital strategy for the development of talent, that is 
consistent with 21st century workforce demands and a new generation of 
workers, and that is competency-focused, performance-based, agile, 
responsive to mission impacts, and focused on employee engagement and 
respect.
Civilian Expeditionary Workforce
    The Department is working to better employ the talents of our 
civilian workforce to meet expeditionary mission challenges, especially 
those not directly related to warfighting. Global security challenges 
require adequate civilian capacity to conduct complex operations, 
including those missions that require close military-civilian planning 
and cooperation in theater. Since 2001, more than 43,000 Department 
civilians have been involved in contingency operations around the 
globe. Currently, approximately 5,100 civilian employees are serving in 
theater. In response to these imperatives, the Department 
institutionalized the Civilian Expeditionary Workforce (CEW) to provide 
deployable civilian experts to support military operations, 
contingencies, emergency operations, humanitarian missions, disaster 
relief, and stabilization and reconstruction operations. The CEW is 
designed to enhance the Department's ability to work alongside and help 
build the capacity of partner defense ministries and provide surge 
support where needed. The CEW encompasses a pre-identified subset of 
the Department's emergency essential and volunteer civilian workforce 
by skill sets and capabilities, who are trained, ready, cleared, and 
equipped for rapid response and quick assimilation into new 
environments.
    Civilians deployed under the CEW receive general and theatre-
specific, urban training, and are eligible for the same health care 
benefits as deployed military personnel, including medical evacuation 
and access to hospital services in-theatre. With the support of 
Congress, the Department has obtained important incentives and benefits 
to help compensate for the inherent risks of deployment. The Department 
continues to identify pertinent issues and propose fully integrated 
solutions to ensure force health protection, surveillance, deployment 
benefits, and medical care for civilians who have been injured, 
wounded, or have contracted diseases while deployed in support of 
contingency operations. We have worked in partnership with the Office 
of Personnel Management, the Department of State, and the Department of 
Labor to ensure all similarly-situated Federal civilians receive 
consistent and equitable benefits commensurate with the risks of 
deployment.
Civilian Leadership Development
    The Department is currently working on the recruitment and 
development of entry-level leaders in conjunction with Section 1112 of 
the NDAA for Fiscal Year 2010, which requires the establishment of a 
DOD Civilian Leadership Program. The Department recognizes the need for 
an improved model to attract, retain, and deliberately develop civilian 
leaders to support pipeline readiness and enhance bench strength. In 
fiscal year 2010, the Department will fully develop the entry-level 
program to grow emerging leaders. We will launch an initial program 
pilot in fiscal year 2011 and expand the pilot and implementation in 
fiscal year 2012. Our communities of initial focus for this effort 
include acquisition and finance specialists to meet the Department's 
needs.
Recruitment for Critical Positions and Competencies
    The Department has an aggressive approach for identifying mission 
critical recruitment requirements, to include health, acquisition, 
linguists and emerging mission-essentials such as IT specialists in 
cyber warfare. We have a plan in place and a robust forecasting model 
that indicates those areas where recruitment surges may be needed. 
Where such surges are indentified, we craft staffing strategies, such 
as expedited hiring authority and scholarship programs, to meet those 
needs. Our integrated approach to Strategic Human Capital Management 
(SHCM) will prove to enhance our ability to analyze demographic trends, 
forecast requirements, assess gaps, and further define recruitment and 
hiring strategies.
Increasing Veterans Opportunities
    The Department values the experience and commitment of our 
servicemembers and places special emphasis on supporting transitioning 
servicemembers, wounded warriors, and veterans in their search for 
employment. We continue our efforts to actively reach out to our 
veterans to assist them in their civilian employment search with 
aggressive outreach programs, transition assistance programs, career 
and job fairs, and benefits counseling and assistance.
    The Department continues this tradition in support of Executive 
Order 13518, the Veterans Employment Initiative. In January 2010, the 
Department stood up the DOD Veterans Employment Program Office to 
promote veterans recruitment, training and development throughout the 
Department. We are promoting the Veterans Initiative through DOD's 
Hiring Heroes Program, through which we conduct eight to ten Hiring 
Heroes Career Fairs throughout the U.S. for wounded, ill and injured 
servicemembers, transitioning military, veterans, and their families.
In-sourcing
    The Department is on track to reduce the level of contracted 
support service from the current 39 percent of our workforce to the 
pre-2001 level of 26 percent, and perform those services with full-time 
government employees. Over the next 5 years, DOD expects to hire up to 
33,400 new civil servants to fill positions established as a result of 
insourcing contracted services. This includes 5,000 acquisition 
personnel over fiscal year 2010/2011 and 10,000 through fiscal year 
2014. On January 4, 2010, the Department submitted to Congress a report 
on ``fiscal year 2010 Insourcing Initiative and Plans.'' DOD Components 
estimated they would establish nearly 17,000 new civilian 
authorizations in fiscal year 2010 to perform currently contracted 
work.
    There are no artificial limits placed on DOD Components' 
identification of in-sourcing candidates (i.e., contracted services 
that would more appropriately be performed by government employees). 
The Department considers insourcing as a well-reasoned part of Total 
Force management that:
         Rebalances the workforce and rebuilds organic 
        capabilities.
         Ensures that inherently governmental functions that 
        support the readiness/management needs of the Department are 
        performed by government employees.
         Implements Congressional direction on in-sourcing 
        (NDAA for Fiscal Year 2008).
    Contractors remain a vital part of the Department's Total Force. 
The Department is not ``replacing'' or ``converting'' contractors but 
rather in-sourcing contracted services--contractors remain a vital 
source of expertise to the Department and are an integral part of our 
Total Force.
                        other personnel concerns
Foreign Language, Regional, and Cultural Capabilities
    The Department is continuing its work to ensure our commissioned 
and noncommissioned officers are prepared for a full range of varying 
and complex missions that our current and future security environment 
requires which includes building expertise in foreign languages, 
regional and cultural skills. The fiscal year 2011 budget focuses on 
sustaining gains achieved in previous years and continuing to build a 
solid infrastructure in which to meet future demands. Baseline funding 
of $793 million in fiscal year 2011 supports redirected language and 
culture instruction to achieve higher proficiencies for the Total Force 
in these skills. During the most recent programming cycle, the 
Department committed an additional $29 million in fiscal year 2011 to 
establish Language Training Detachments to provide and sustain 
commanders' needs, support the Afghanistan/Pakistan Hands program, and 
expand the role of English language training for partner nation 
personnel. The Department's continuing efforts feature the following 
significant initiatives and accomplishments.
Military Leadership Diversity Commission
    As mandated by NDAA 2009, the Department established the Military 
Leadership Diversity Commission (MLDC) to conduct an independent review 
and comprehensive evaluation and assessment of policies that provide 
opportunities for the promotion and advancement of minority members of 
the Armed Forces, including minority members who are senior officers. 
Led by General Lester Lyles (ret.), the Commission consists of 26 
appointed members to include retired and active duty officers, 
enlisted, and civilian representation from all the Service components 
and the Coast Guard. The Commission will expand to 32 members.
    The Commission conducted its first meeting in Washington, DC in 
September 2009. Several monthly meetings are planned throughout the 
country during the independent review, culminating with a written 
report to the President and Congress no later than September 2010. The 
report shall include the Commission's findings and conclusions, 
recommendations for improving diversity within the Armed Forces, and 
other relevant information and proposals considered appropriate.
Sexual Assault Prevention and Response
    The Department's position on sexual assault is a simple one: Sexual 
assault is a crime that is incompatible with service in the U.S. Armed 
Forces. It undermines core values, degrades military readiness, 
subverts strategic goodwill, and forever changes the lives of victims 
and their families. To address this crime, the Department has put 
numerous broad-based programs in place to achieve our vision of 
enhancing military readiness by establishing a culture free from sexual 
violence.
    The Department's goal is to prevent sexual assault through 
institutionalized prevention efforts that influence the knowledge, 
skills, and behaviors of servicemembers to stop a sexual assault before 
it occurs. We have developed a comprehensive prevention strategy built 
around the concept of bystander intervention. Throughout the 
Department--from the newest recruits to the most senior leaders--
servicemembers are getting educated on the role they can play as 
individuals in preventing this crime.
    In conjunction with prevention, we are working to increase 
awareness so when a crime does occur, it is reported. We want any 
victims within the military to come forward, first and foremost, to get 
treatment, and if so desired, provide details of the crime so the 
perpetrator can be held accountable.
    The Department is committed to ensuring the sexual assault 
prevention and response program works as intended. This ``system 
accountability'' is achieved through data collection, analysis, and 
reporting of case outcomes. In order to improve data collection, 
analysis, and case management, the Department initiated the development 
of the Defense Sexual Assault Incident Database (DSAID). In January 
2010, a Request for Proposal was issued to identify a vendor for the 
database, with selection expected by the fall.
    The Department has participated in several external reviews in 
recent years, most recently by the Government Accountability Office 
(GAO) and the Defense Task Force on Sexual Assault in the Military 
Services (DTF-SAMS). DTF-SAMS released their report in December 2009 
and GAO released their report in February 2010. We are currently 
reviewing and responding to their recommendations.
Child Custody
    The Department believes the States are in the best position to 
balance the competing interests within the context of their own 
domestic relations laws. Approximately 30 States have passed 
legislation that addresses the special circumstances facing military 
parents who have custody of children but who are not married to the 
other parent.
    The American Bar Association, National Military Family Association, 
and the Senate support the Department's position. Although the Senate 
has continued to reject Federal child custody legislation, it did 
include language in the NDAA for Fiscal Year 2010 that requires a 
report to Congress on military child custody issues by March 31, 2010. 
Senate Armed Services Committee staff indicate this report will form 
the basis for hearings anticipated in April 2010.
    The Department has committed to several efforts to address the 
unique challenges facing military members who have custody of a child 
but are not married to the other parent. The Department is working with 
its State liaisons to encourage those 20 States who have not addressed 
military child custody issues in their domestic relations laws to do 
so. The Department is also looking for opportunities to increase 
participation in and support of the American Bar Association's Military 
Pro Bono project, which provides free in-court representation to 
military members for domestic relations cases (and other cases). 
Finally, the Department is updating and reissuing its Family Care Plan 
instruction, which can, if used properly, significantly reduce custody 
problems without the detrimental effects of the proposed Federal law.
Federal Voting
    The Department vigorously assists our men and women in uniform, 
their voting-age dependents and U.S. citizens residing overseas to 
successfully participate in the 2010 primary and general elections. 
Initial indications are that the Department's programs are having a 
significant impact: for the 2008 general election, the active duty 
military voter registration rate exceeded that of the general 
population's: 77 percent for the military as compared to 71 percent for 
the general population.
    Unfortunately, while more than 91 percent of absentee ballots were 
successfully returned by general electorate voters in the 2008 general 
election, only 67 percent of uniformed services and overseas voter 
absentee ballots were successfully returned. Unsuccessful return of 
ballots represents the single greatest point of failure for military 
and overseas voters, and is largely due to absentee ballots being sent 
out too close to the election, with insufficient time for the voter to 
successfully receive, vote and return the ballot by the States' 
mandated deadlines. In fact, more than 81 percent of all the voting 
failure suffered by military and overseas voters was because of ballots 
transmitted to them, but never returned.
    The Department is focusing its voting assistance programs to 
address the overwhelming point of failure by focusing on those programs 
that will expedite both the delivery and return of ballots from 
military and overseas voters. First, the Federal Voting Assistance 
Program is developing an online wizard that will allow military and 
overseas voters to receive and mark their complete Federal, State, and 
local ballot online, and then print it out for voter verification, 
signature of the voter's oath, and postal mail return of the paper 
ballot. Second, the Military Postal System is also preparing an 
expedited ballot return system which will return ballots by Express 
Mail, as well as provide the voter with an online tracking system all 
the way to delivery to the local election official. The Military Postal 
System's desired delivery time is no more than 7 days from receipt of 
the ballot from the voter to delivery to the local election official.
    The Department is also taking full advantage of the authority 
granted it under the Military and Overseas Voter Empowerment (MOVE) Act 
of 2009 to designate all military installation voting assistance 
offices as National Voter Registration Act voter registration agencies. 
This will allow the Department to also collect from and mail in for 
those voters (who desire the assistance), the FPCAs or other 
registration forms completed by those voters.
    The Department has been working closely with States to identify 
those changes in State law necessary to achieve the requirements of the 
MOVE Act, and to provide sufficient opportunity for military and 
overseas voters to successfully complete the absentee voting process.
                               conclusion
    We face two fundamental, and related, challenges. First, we must 
continue to attract and retain high quality, motivated individuals for 
Active and Reserve military service and we must maintain an 
enthusiastic and skilled civilian workforce. Second, we must weigh 
sufficiency against the risks of an uncertain future. As we invest in 
our human capital, we must do so judiciously. While our future 
challenges may often seem without bounds, our resources are not. We 
must make hard choices, as a Department and as a Nation, of allocating 
our resources the best we can to win the war at hand while taking care 
of our most valuable asset--our men and women in uniform. I look 
forward to working with this Congress in this effort.
    Senator Webb. Thank you very much, Secretary Stanley.
    Secretary Lamont.
STATEMENT OF HON. THOMAS R. LAMONT, ASSISTANT SECRETARY OF THE 
             ARMY FOR MANPOWER AND RESERVE AFFAIRS
    Mr. Lamont. Chairman Webb, Senator Graham, distinguished 
members of the committee, thank you for the opportunity to 
appear before you today.
    I appear before you on behalf of 1.1 million men and women 
serving here and abroad in peaceful, as well as hostile, 
environments. This combat-seasoned force is resilient and 
professional, yet strained and out of balance. More than 1 
million of this Nation's finest citizens have deployed, over 
the past 8 years, into harm's way. We realize, very well, that 
there are costs associated with this conflict, both visible and 
invisible.
    Our current programs to relieve stress on the force are 
critical to maintaining a healthy, balanced, and prepared 
force. These programs help us defend our country against some 
of the most persistent and wide-ranging threats in our Nation's 
history. The success of these programs is due, in large part, 
to the support Congress has given us since this Army went to 
war in 2001.
    First and foremost, you have enabled us, through 
appropriate resources, to meet a temporary end-strength 
increase for our agile Army. As a result, this will, in part, 
alleviate the stress and strain on the total Army. This is a 
step in the right direction to get our personnel structure back 
in balance.
    Congress has also given us the means to improve the quality 
of life for our soldiers and their families. Soldiers remain in 
the Army based on the established incentive programs, such as 
an excellent healthcare system, educational opportunities, 
financial stability with sufficient bonuses, general vacation 
time, soldier and family services, and frankly, out of a true 
sense of duty to our country. This Congress has embraced our 
needs, and for that, we are very grateful.
    The Army continues to face challenges, which we will 
encounter today and well into the future. Armed with lessons 
learned, it is our intent to stay in front of those challenges, 
anticipate them, develop strategies and programs to address 
them, and hopefully, keep them from becoming problems in the 
future.
    Specifically, one of the challenges that we are addressing 
is the concept of the Operational Reserve. The Army's Reserve 
component continues to transition from a strategic Reserve to 
an operational force. The Army will require recurrent, assured, 
and predictable access to the Reserve component to meet 
operational requirements. This transformation of the Reserve 
component into an operational force will provide an opportunity 
for the Army to provide the most cost-effective total force by 
investing resources in the most cost-efficient portion of the 
Army's total force.
    Our focus this year centers on restoring the balance, 
resilience, and sustainment of the force, growth in talent, and 
our ability to meet the Nation's needs with the highest-quality 
force available. The Army will continue to work hard to attract 
and retain the best, but we need your help in taking on this 
larger problem. The challenging environments that our soldier's 
serve in demand that we maintain the standards as set, and we 
must remain ever-vigilant that our force is manned with both 
physically and mentally qualified soldiers, as it is today.
    As you are well aware, we have some tough challenges ahead 
of us. I'm confident, however, that with the operational and 
institutional agility this Army has developed over the past 9 
years, we will meet all the challenges that will come our way. 
It is always easy to commit to a plan of action when we know 
that Congress supports us. Your leadership and your support 
have been unwavering.
    I appreciate this opportunity to come before the committee, 
both now and in the future, and I look forward to your 
questions.
    Senator Webb. Thank you very much, Secretary Lamont.
    [The prepared statement of Mr. Lamont follows:]
              Prepared Statement by Hon. Thomas R. Lamont
                              introduction
    Chairman Webb, Senator Graham, distinguished members of this 
subcommittee, thank you for the opportunity to appear before you on 
behalf of America's Army. Our greatest heroes are America's most 
precious resource--our soldiers. These soldiers and their families, 
backed by our civilian workforce, represent the very best of America's 
values and ideals and faithfully shoulder the load that our Nation asks 
of them. This fighting force of 1.1 million soldiers is continually 
tested at home and abroad. Repeatedly our Nation's men and women step 
forward and pledge to serve. They recognize the challenges facing our 
Nation, answer the call, and become part of something larger than 
themselves. Their dedicated service and sacrifice are deserving of the 
very best services, programs, equipment, training, benefits, lifestyle, 
and leadership available. Our focus this year centers on restoring the 
balance, resilience, and sustainment of the force, growth in talent, 
our ability to meet the national challenges, and the importance of 
maintaining this strength to meet the demands now and for the future. 
Thank you for your steadfast commitment to ensuring our soldiers, their 
families, and our civilian workforce by supporting our personnel 
initiatives to ensure growth, sustainment and well being of our All-
Volunteer Force.
                           strategic overview
    America's Army, strained by over 8 years of persistent conflict, 
remains a resilient force. Our Army, however, is also stretched and out 
of balance while demand has continued to grow. The Army has added 
nearly 100,000 more soldiers since 2004. More than one million of our 
country's finest men and women have deployed to combat, with over 5,000 
lives sacrificed in the line of duty. The Army appreciates your recent 
support in providing the Army with temporary end strength increase of 
22,000 to provide some relief to our stressed force. We will complete 
the initial ramp of 15,000 by the end of fiscal year 2010 and will 
evaluate the need to complete the remaining amount later this year. 
Even with this temporary increase, we face many challenges ahead, but 
must remain vigilant and supportive to the needs of our people. We must 
continue to address these needs and find a way to get our Army back to 
a balanced force.
                              end strength
    To alleviate the stress and strain on the force, the Department of 
Defense authorized the Army a Temporary End Strength Increase (TESI) of 
up to 22,000 Active Duty soldiers. Currently the plan is to use 15,000 
of the 22,000 with a decision on the remaining 7,000 expected at the 
end of the second quarter, fiscal year 2010. This temporary increase 
provides additional, primarily skill level one, soldiers within highly 
deployed Military Occupational Specialties (MOSs) to combatant 
commanders. TESI has already increased unit readiness and will provide 
increased manning and readiness until fiscal year 2013 when the Army 
returns to its base end strength level of 547,400 in the Active 
component. While the majority of these additional soldiers are 
enlisted, the officer ranks will also experience a slight increase.
    Another advantage of TESI is a reduction in the use of Stop Loss. 
The Army expects to achieve a 50 percent reduction in the number of 
soldiers affected by Stop Loss by June 2010. As of January 2010, 7,861 
soldiers were affected by Stop Loss, a 41 percent reduction from the 
January 2009 baseline of 13,217. By January 2011, the Army will have no 
soldiers deployed under Stop Loss. However, soldiers in post-deployment 
reintegration or demobilization may still be in Stop Loss until early 
spring 2011. TESI and the implementation of voluntary stabilization 
programs for each component have made significant contributions to the 
Army's ability to eliminate Stop Loss, while minimizing the potentially 
detrimental impact to unit readiness.
    We continue to make significant progress in our efforts to restore 
balance. Increasing time between deployments for our soldiers and 
building greater predictability for soldiers and families continues to 
be one of our key concerns. Despite the short term impact of the recent 
surge of troops to Afghanistan, we expect the ratio of Boots on Ground 
(BOG) time to dwell time at 1:2 for the Active Force and 1:4 for the 
Reserve component to improve as demand decreases. Eventually, increased 
dwell time will be achieved by lowering the demand on our forces while 
increasing the size of the active Army. This will ease the constant 
pressures on our forces as we move into the rotational cycle of the 
Army Forces Generation (ARFORGEN) model. The Army Senior Leadership 
remains committed to meet these deployment goals while eliminating Stop 
Loss, and without any increase in tour length for our soldiers.
            recruiting and retention (officer and enlisted)
    Our soldiers are the Army's most important resources, and our 
ability to meet the challenges of the current and future operational 
environments depends on our ability to sustain the All-Volunteer Force. 
The pace and demand of the operational environment over the last 
several years has caused us to dedicate our focus to reaching a high 
volume of recruits. The shift in the economy, however, has allowed us 
to demand even higher quality recruits. Despite the challenges of an 
Army engaged in two protracted conflicts, the Army exceeded its 
enlisted recruiting and retention missions for fiscal year 2009 and is 
confident it will meet its goals for fiscal year 2010. The Army met 104 
percent of its recruiting goals for fiscal year 2009, while at the same 
time, meeting its quality benchmarks for new recruits. Successfully 
meeting these critical benchmarks moves us closer to restoring balance. 
As we dedicate ourselves to the fiscal year 2010 recruiting mission, we 
will continue to monitor trends and make adjustments as required.
    In fiscal year 2009, with congressional support, the total Army 
spent $4.9 billion on recruiting and retention. In fiscal year 2010, 
these programs received $4.4 billion due to a more favorable recruiting 
and retention environment. Our $4.6 billion, fiscal year 2011 request 
is based on the need to continue funding for contracts written between 
fiscal year 2006 and fiscal year 2009 and to ensure the success of the 
total Army's recruiting and retention missions. The amount budgeted for 
contractual payments is anticipated to decrease in fiscal year 2012 and 
subsequent years.
    Because of this funding, the Army is now a higher quality All-
Volunteer Force. For example, the Army's percentage of ``high quality'' 
enlisted soldiers with a high school diploma have increased by 2.1 
percent since the end of fiscal year 2009. Additionally, recruits 
scoring in the upper range (50-99 percent) on the Armed Forces 
Qualification Test (AFQT) increased 2.0 percent; and recruits who 
scored poorly (30 percent and below) on the AFQT decreased 0.4 percent. 
The Army was able to decrease the amount of ineligibility waivers 
previously provided for enlistments and appointments. Also, the Army 
was able to repair mid-grade officer shortages in the Regular Army, 
which provided the opportunity to aggressively target mid-grade 
shortages in the Reserve components.
    Overall, the Army's programs are effective in recruiting and 
retaining both officers and enlisted soldiers with critical skills. For 
enlisted soldiers, the Enlistment Bonus (EB), the Selective 
Reenlistment Bonus (SRB), Critical Skills Retention Bonus (CSRB), Army 
College Fund (ACF), and the Student Loan Repayment Program (SLRP) 
remain as proven and effective tools for filling critical skills. The 
ACF and SLRP are especially effective in attracting quality recruits 
who have some college experience or plan to attend college after the 
Army.
    To assist in recruiting critical skills, the Army launched the 
``Military Accessions Vital to the National Interest'' (MAVNI) Pilot 
Program which the Secretary of Defense authorized on November 25, 2008 
and Army launched on February 23, 2009. The purpose was to attract high 
quality individuals with exceptional skills in health care professions 
or native speaking skills in at least 1 of 35 critical foreign 
languages. MAVNI recruits are non-U.S. citizens who have been legally 
present in the United States for 2 or more years and speak a critically 
needed foreign language or are U.S. licensed health care professionals 
who meet or exceed all requirements for military service but for U.S. 
citizenship. They do not have permanent residency (i.e. Green Cards). 
We recruited 788 MAVNI with language skills and 143 health care 
professionals during the 12 months since the program launched. Without 
spending a single dollar on marketing or advertising, Army received 
over 12,000 leads for the MAVNI program and positive media coverage. Of 
the foreign language speakers recruited, 66 percent have a bachelor's 
degree or higher, and 30 percent have at least a master's degree. Half 
the MAVNI recruits speak and comprehend the foreign language for which 
they were recruited at the 3/3 level or higher which is akin to a 
college graduate. Their loss from the Delayed Entry Program (DEP) is 
one-third that of non-MAVNI recruits and their attrition rate once in 
the Service is virtually nil. We reached the cap for this program 
established by the Secretary of Defense so until the program is 
extended we are unable to recruit the many applicants waiting to be 
processed.
    Through a separate program, the Army has recruited more than 1,600 
soldiers as military interpreters and translators under the MOS O9L 
Program. This MOS enlists native speakers of Arabic, Pashtu, Dari, 
Farsi, and Kurdish into all components of the Army to serve as 
interpreters in uniform. Combatant Commanders have found them to be 
force multipliers as they bring high levels of proficiency in these 
languages as well as firsthand cultural knowledge.
    In fiscal year 2009, all components exceeded the annual retention 
goal. The Active Army achieved 124 percent of the annual goal, the Army 
Reserve achieved 105 percent, of the annual goal, and the Army National 
Guard achieved 106 percent of the annual goal. During fiscal year 2009, 
retention bonuses were carefully monitored and adjusted to achieve the 
maximum result, ensuring the Army met its retention goals while 
remaining fiscally responsible. The economic environment allowed the 
Army to reduce incentive levels as well as the number of occupations 
offering bonuses, while focusing on our most critical skills. In 
addition, use of the Army's Critical Skills Retention Bonus greatly 
assisted in retaining very experienced senior enlisted soldiers with 
invaluable leadership and combat experience. Retention of combat 
experienced veterans remains critical to current and future readiness. 
In fact, 39 percent of all reenlistments occurred while soldiers were 
deployed. The Active Army also continued to support and encourage 
Active Duty soldiers who elected not to reenlist to transfer to the 
Reserve component upon completion of their Active Duty tour.
    The Army retention mission is also on track to meet the goals set 
for fiscal year 2010. The Active Army has reenlisted 41,262 soldiers 
for 68 percent of the annual goal, the Army Reserve has reenlisted 
4,291 for 42 percent of the annual goal, and the Army National Guard 
has reenlisted 10,771 soldiers for 35 percent of the annual goal. In 
all components, the Army expects to finish successfully in every 
category.
    The Post-September 11 GI Bill, which took effect August 1, 2009, 
provides a significantly enhanced level of educational benefits for 
Active Duty servicemembers. Additionally, it serves as a valuable 
incentive to attract and retain quality soldiers of all ranks. The Army 
expects the Post-September 11 GI Bill to serve as an inducement for 
college oriented teens to join the Army, while transferability should 
increase retention within our mid-career (6-10 years of service), 
category of soldiers. Although it is too early to fully determine the 
impact of the Post-September 11 GI Bill on both recruiting and 
retention, initial signs are positive. In particular, we've kept a 
watchful eye on the retention of our initial term soldiers who some 
feared might separate under expiration of their term of service in 
order to use their educational benefits. However, the Army exceeded its 
retention goals for first-term soldiers in fiscal year 2009 and 
continues to do so in fiscal year 2010.
    Shortages remain within our officer corps due to overall structural 
growth of the Army. To correct this, the Army initiated the Captains' 
Retention Incentive Menu in September 2007. The Army spent $443.6 
million from fiscal year 2007 to present on this incentive program. The 
goal of the program was to recruit, retain, and manage critical skills 
to increase the retention of lieutenants and captains for 3 years. The 
Captains' Retention Incentives Menu program included a cash option 
based on the officer's branch, resident graduate school attendance for 
up to 18 months, or attendance at the Defense Language Institute for 1 
year. As a result, the Army's retention rate for Captains increased in 
fiscal year 2008 to 89.1 percent and again in fiscal year 2009 to 89.9 
percent over the 10-year average of 88 percent. The program guaranteed 
retention through fiscal year 2011 for over 16,000 of the 23,000 
captains who were eligible to participate. The timing of our Captains' 
Retention Incentives Menu program, concurrent with the dramatic 
downturn of the economy and job market, helped support our retention 
goals. The cash and Defense Language Institute options ended in 
November 2008. The remaining retention incentive, the Expanded Graduate 
School Program, has been funded at $7.5 million in fiscal year 2010. 
Overall, the single most effective retention incentive for junior 
officers was the cash bonus. Over 94 percent of the more than 16,000 
officers who took incentives in fiscal year 2008 elected to take the 
cash bonus. Department of Defense survey data analysis showed that most 
officers who intended to separate or were undecided, took the incentive 
and committed to further obligated Army service.
    The U.S. Military Academy (USMA) and ROTC both continue to offer 
pre-commissioning incentives. These consist of offering new officers 
their Post or Branch of Choice or Graduate Schooling. In fiscal year 
2006 through fiscal year 2009 there were approximately 6,000 
participants. These incentives have increased longevity by 40 percent 
for newly-commissioned, high-performing USMA and ROTC officers.
    In spite of a dramatically changed recruiting climate, based on the 
economy, our message to our soldiers and their families must resound 
with assurance that they will be cared for in a manner commensurate 
with their service and sacrifice. Incentives, bonuses, and pay are only 
part of the equation in creating balance in our soldiers and families 
lives. In the event of a life changing injury or the loss of life, our 
soldiers are assured that their families will receive financial and 
programmatic support for their loss and sacrifice. This support 
includes full-earned benefits and disability compensation. The Army is 
working closely and aggressively with soldiers and their families to 
streamline access to assistance from other Federal agencies, such as 
the Social Security Administration, Department of Labor, and Department 
of Veterans Affairs.
    In direct support of President Obama's Veteran's Day Executive 
Order on employment of veterans in the Federal Government, we have 
begun a Veterans Employment Transition Initiative to streamline, 
synchronize, and integrate existing policies, programs, and initiatives 
to assist soldiers and their families as they transition out of the 
military. The intent is to ensure that they have timely visibility of 
every opportunity available to them as they transition to civilian 
life, whether as Federal workers or as contributing members of the 
private sector.
    The Army carefully manages its resources, reviewing and adjusting 
incentives at least quarterly to ensure we attract and retain quality 
individuals in needed occupations, while remaining fiscally responsible 
to avoid excessive payments. The economic environment has allowed us to 
reduce incentive amounts and the number of occupations offered bonuses 
or education incentives. Enlistment Bonuses are at the lowest levels 
since the 1990s drawdown. However, we must retain the flexibility to 
apply incentives as necessary to retain soldiers with critical or 
specialized skills. The continued authorities and funding of these 
programs by Congress remain critical to the sustainment of the Army.
                 individual ready reserve mobilization
    The Individual Ready Reserve (IRR) is a category of the Ready 
Reserve, and is composed of those members of the Ready Reserve who are 
not serving in Selected Reserve units or assignments, or in the 
Inactive National Guard. The availability of IRR soldiers is critical 
to the Army's mission of providing properly trained and equipped units 
of sufficient strength to meet contingency operation or mobilization 
requirements. As of February 28, 2010, there are 59,413 soldiers in the 
IRR. Since September 11, 2001, a total of 29,997 soldiers received 
mobilization orders and a total of 12,018 soldiers deployed to the 
CENTCOM Area of Responsibility. The Army applies specific screening 
criteria and a tiered systemic approach regarding involuntary 
mobilization of the IRR. These actions align with the January 2007 DOD 
policy on Utilization of the Total Force and take into account a 
soldier's dwell time, Military Service Obligation (MSO), and previous 
deployments in support of OCONUS Contingency Operations (OCO).
    An effective IRR program is based on several factors, including the 
soldiers' understanding of their obligations, access to benefits and 
support, and time to adjust personal affairs prior to mobilizations. In 
an ongoing effort to validate the readiness of the IRR, the Army 
continues to implement the IRR Muster program. Approximately 5 months 
after entering the IRR program, soldiers will be ordered to muster 
duty. Afterward, soldiers are required to muster each year they remain 
in the IRR. Through the muster program, the Army established a 
partnership with the Department of Veterans Affairs to use VA medical 
centers as muster sites for the added opportunity of connecting 
soldiers to VA services. During fiscal year 2009, the Army spent 
approximately $3.6 million to muster 13,500 soldiers, contributing to 
3,300 soldiers returning to Army Reserve formations. The Army plans to 
muster 14,000 IRR soldiers at an estimated cost of $4.2 million in 
fiscal year 2010 and expect to impact 3,500 soldiers returning to Army 
Reserve Formations.
                          operational reserve
    As the Army continues to institutionalize the Operational Reserve, 
our first and greatest challenge is to effectively and efficiently 
deliver ready and trained soldiers. Transforming the Reserve components 
(RC) into an operational force in the near-term (fiscal year 2012-2014) 
will provide a means for RC forces to provide proportional support to 
the Army's Force Supply model of a Corps Headquarters, 5 division 
headquarters (4 Active component (AC), 1 RC), 20 Brigade Combat Teams 
(15 AC, 5 RC), and 90,000 enablers (41,000 AC, 49,000 RC) to support 
combatant command requirements through 2014 time period. It is 
important to note that programming decisions are required in the near 
term to ensure RC forces are sufficiently ready to support the Army's 
force generation plans. Without sufficient resources in unit 
management, collective training and medical/dental readiness, the RC 
will not be ready to support the planned 1/5/20/90 force supply 
construct.
    The Army will require recurrent, assured and predictable access to 
the RC to meet operational requirements as requirements increase for 
Army forces to conduct overseas engagement activities over the 
remaining years of the program period (fiscal year 2015-2017). During 
this period, RC forces will be mobilized and employed in full spectrum 
operations at rates proportional to AC forces within force utilization 
goals of 1:3 (AC) and 1:5 (RC). Continued investments in RC unit 
management, collective training and medical/dental readiness are 
required to achieve required readiness levels in accordance with these 
ARFORGEN goals. Moreover, these investments are required within the 
base funding to ensure the RC achieves a level of institutional 
transformation that cannot be achieved through the year-by-year 
allocation of resources from overseas contingency operations funds.
    Finally, transforming the RC into an operational force provides an 
opportunity for the Army to provide the most cost-effective Total Force 
and mitigate any decline in resources by investing now in the most 
cost-efficient portion of the Army's Total Force. The Army National 
Guard (ARNG) and the U.S. Army Reserve account for 51 percent of the 
Army's military end strength for 16 percent of the base budget. When 
comparing the cost per soldier, the relative value of the RC is even 
greater. A 2008 comparison of AC/RC manpower by HQDA G-8 identified the 
approximate total costs per Regular Army soldier in manpower, training, 
equipping, organization costs and operating costs as $135,000, compared 
to $36,000 for ARNG soldiers and $35,000 for Army Reserve soldiers. 
Given the relative value is a reasoned investment for the Army's Total 
Force, this will make targeted investments improve RC readiness. 
Moreover, such investments in the near-term (POM 2012-2017) will 
position the Army to better manage the risks of declining resources for 
the Army, should such a reduction be required in the next 2 to 5 years. 
However, delays in these investment decisions reduce the Army's 
flexibility to consider strategic alternatives to a larger Active Force 
structure model in the long-term.
                            quality of life
    Recognizing that the strength of our Army comes from the strength 
of our Army families, the Secretary of the Army and Chief of Staff of 
the Army initiated the Army Family Covenant in October 2007 and 
reaffirmed this commitment by resigning the Covenant this past October. 
The Covenant institutionalizes the Army's commitment to provide 
soldiers and families a quality of life commensurate with the quality 
of service they provide our Nation. The Army Family Covenant 
incorporates programs designed to build strength and resilience in our 
families. These improved services and programs help to mitigate the 
stress from mutiple deployments and frequent military moves.
    The Covenant focuses on the following: standardizing soldier and 
family programs; increasing access and quality of health care; 
improving soldier and family housing; ensuring excellence in our 
schools, youth and child care services; expanding the education and 
employment opportunities for family members; improving soldier quality 
of life in recreation, travel, and the Better Opportunities for Single 
Soldiers program; and improving relationships with local communities 
and marketplaces.
    From fiscal year 2007 to fiscal year 2010, the Army more than 
doubled its investment in family programs. To ensure they remain 
enduring, these increases have been included in the fiscal year 2010 
base budget. Furthermore, this funding will increase from $1.7 billion 
in fiscal year 2010 to $1.9 billion in fiscal year 2015.
    We must never forget that we are one Army made up of Active Duty, 
National Guard, and Army Reserve components and must often reach 
``beyond the gates of the garrison'' to ensure we support our 
geographically dispersed families. We are thankful for all the citizens 
and community based organizations that have stepped up to support our 
soldiers and their families, regardless of their location.
              civilian personnel and workforce development
    Department of the Army civilian employees provide vital support to 
soldiers and families in this era of persistent conflict. They share 
responsibility for mission accomplishment by delivering combat support 
and combat service support--at home and abroad. More than ever, Army 
civilians are an absolutely essential component of readiness and a key 
element in restoring balance. Today, the Army Civilian Corps has nearly 
300,000 employees with 3,832 currently serving in harm's way in the 
U.S. Central Command area of operations.
    Since September 11, 2001, we increased the civilian workforce from 
222,000 to 263,169 (plus 24,357 Civil Works) due to overseas 
contingency operations, Defense Health Program increases, Family and 
Soldier Support initiatives, acquisition workforce growth, in-sourcing 
contracts associated with inherently governmental functions, military 
technician increases, and military-to-civilian conversions. Future 
Civilian employee growth is critical to supporting current plans to 
rebalance the Army to 73 brigade combat teams and associated combat 
support/combat service support units by fiscal year 2011.
    In fiscal year 2009, the Army saved significant resources by in-
souring more than 900 core governmental functions to Army civilians. We 
plan to in-source 7,162 positions in fiscal year 2010, and are 
programmed to in-source 11,084 positions during fiscal year 2011-2015, 
of which 3,988 are acquisition positions. These positions were 
identified in the Army's on-going contractor inventory review process.
    Current workforce development programs, such as the Army Intern 
Program; the Army Fellows Program; the Presidential Management Fellows 
Program; the Senior Fellows Program, and the Army Senior Leader 
Development Program, to name a few, are helping the Army to ``build a 
bench'', of future Army leaders. In an era of persistent conflict, 
however, the operational and budgetary realities of fighting terrorism 
on multiple fronts have simultaneously increased the requirements for 
development and decreased the available funding. Simply put, the Army's 
resources to develop our Civilians have not kept pace with the need. 
While current training and development programs provide highly 
competitive growth opportunities, better incentives for self-
development and professional development are needed to ensure the 
Civilian cohort is as prepared to meet future missions as their 
military counterparts. The Department of the Army also has several 
initiatives to focus and invigorate development of the civilian 
workforce, which complement the strategic workforce plan requirements 
outlined in the National Defense Authorization Act for Fiscal Year 
2010.
    The Army is developing a Civilian Human Capital Strategy to better 
focus on the full life-cycle needs of Civilian Workforce, from 
recruitment to replacement. Because of the increasing complexity of 
today's operational environment, the Army must invest more resources 
into recruiting, sustaining, and developing its Civilian workforce. The 
Initial emphasis of our Civilian Human Capital Strategy will be on 
identification of the competencies needed by employees in mission 
critical occupations, assessment of the current competency levels of 
the workforce, and strategies for closing the gaps. This focus will 
enable the Army to develop competency-based civilian recruiting and 
hiring strategies as well. This approach will help ease the transition 
from one generation to the next as we implement Base Realignment and 
Closure and begin to experience the next wave of baby boomer 
retirements.
                     army equal opportunity policy
    The Army leads the Nation in Equal Opportunity (EO) policy and 
practice. Commanders at all levels are responsible for sustaining 
positive EO climates within their organizations to enhance Army 
Readiness. Remaining applicable and relevant within the ever-changing 
environment in which we operate, the Army is transforming EO policy/
program by integrating and institutionalizing equal opportunity and 
diversity goals, objectives and training practices. This effort will 
strengthen the foundation of the Army's Human Capital Strategy. Since 
fiscal year 2008, the Army has invested $3.4 million and expects to 
invest another $0.9 million in fiscal year 2010 for EO personnel and 
services support, database and survey systems, outreach support, and 
training contracts.
                sexual assault and harassment prevention
    The Army's goal is to eliminate sexual assault and harassment by 
creating a climate that respects the dignity of every member of the 
esteemed band of brothers and sisters. The Secretary of the Army 
(SECARMY) and the Chief of Staff (CSA) remain personally involved in 
reinforcing to all soldiers and leaders the importance of preventing 
sexual assault and harassment. Under their guidance and leadership, the 
Army launched a comprehensive sexual assault prevention strategy that 
requires leaders to establish a positive command climate where sexual 
assault is clearly not acceptable. The strategy further encourages 
soldiers to execute peer-to-peer intervention personally, and to not 
tolerate behavior that could lead to sexual assault.
    The cornerstone of the Army's prevention strategy is the ``I. A.M. 
Strong'' campaign, where the letters I, A, and M stand for Intervene--
Act--Motivate. The ``I. A.M. Strong'' campaign features soldiers as 
influential role models and provides peer-to-peer messages outlining 
the Army's intent for all its members to personally take action in the 
effort to protect our communities. Leaders have embraced ``I. A.M. 
Strong'' initiatives and are motivating soldiers to engage proactively 
and prevent sexual assault.
    The Army's sexual assault prevention strategy consists of four 
integrated phases and extends through calendar year 2014 as we work to 
be the Nation's leader in sexual harassment and sexual assault 
prevention.
    The SECARMY introduced the ``I. A.M. Strong'' campaign at the 
Sexual Assault Prevention Summit in September 2008. The Summit served 
as a platform to launch Phase I (Committed Army Leadership) by 
providing training on best practices and allowing commands the 
opportunity to develop prevention plans to support the Army strategy.
    Phase II of the prevention strategy (Army-wide Conviction) includes 
educating soldiers to understand their moral responsibility to 
intervene and stop sexual assault and harassment. Phase II began at the 
2009 Sexual Assault Prevention Summit (6-10 Apr 09) during which the 
SECARMY, CSA, and Sergeant Major of the Army addressed attendees, which 
included over 100 sergeants major and 50 general officers.
    Phase III culminates the dedicated effort of leaders and soldiers 
under Phase I and Phase II by ``Achieving Cultural Change'' that truly 
reflects Army values and fosters an environment free from sexual 
harassment and sexual assault.
    The final phase is ``Sustainment, Refinement, and Sharing,'' during 
which the prevention program continues to grow while motivating 
national partners to support our efforts to change generally accepted 
negative social behaviors; thus eliminating the crime of sexual 
assault.
    With the implementation of the strategy, a likely near-term 
consequence will be an increase in the number of reported cases as 
soldiers' and other victims' propensity to report increases. This 
increase in cases will require more sexual assault responder support, 
specifically: victim advocates, healthcare personnel, investigators, 
and prosecutors.
                       suicide prevention program
    The loss of any soldier is a tragedy, particularly when it could 
have been prevented. There were 160 suicides by active-duty soldiers 
during 2009, continuing the 5-year trend of increased suicides within 
the Army. As a result, we have instituted a multi-level, holistic 
approach to health promotion, risk reduction and suicide prevention. 
Although the total number and rate of suicides in the Army remains of 
deep concern, we should remember each of these suicides represents an 
individual and a family that has suffered an irreparable loss---and, as 
a result, our suicide prevention efforts are focused on directly 
assisting soldiers, their families, and our Army civilians.
    On 16 April 2009, the Vice Chief of Staff of the Army (VCSA) signed 
the Army Campaign Plan for Health Promotion, Risk Reduction, and 
Suicide Prevention, a comprehensive plan setting in motion 
unprecedented changes in Army doctrine, policy, and resource 
allocation, as well as immediate guidance to commanders, in order to 
address the problem of suicides in the overall context of risk 
reduction and health promotion.
    The Army Suicide Prevention Task Force has addressed more than 240 
different tasks related to suicide prevention doctrine, organization, 
training, materiel, leadership, personnel, and facilities. Over 90 
percent of these tasks have been implemented.
    To build on the Army Campaign Plan's accomplishments during 
calendar year 2009, the Army Suicide Prevention Task Force is leading 
an effort to review and assess the effectiveness of Army Health 
Promotion, Risk Reduction and Suicide Prevention programs at all 
levels. Army has partnered with National Institute of Mental Health to 
conduct a long-term study (Army Study to Assess Risk and Resilience on 
Servicemembers) of risk and protective factors to inform health 
promotion and suicide prevention efforts. The VCSA Task Force is also 
reviewing all Army programs at all levels that are related to health 
promotion, risk reduction, suicide prevention, or were implemented to 
address soldier, family, or DA civilian stressors to ensure that the 
programs provide appropriate levels of support and address current 
problems, risk factors, and are relevant to today's soldiers' families' 
and DA civilians needs.
                 comprehensive soldier fitness program
    The Army's Comprehensive Soldier Fitness (CSF) program is a 
structured, long-term assessment and development program designed to 
build the resilience and enhance the performance of the Army's 
soldiers, families, and civilian personnel. The CSF program uses 
individual assessments, tailored virtual training, classroom training 
and embedded resilience experts to provide soldiers with the critical 
skills needed to take care of themselves, their families and their 
teammates in this era of persistent conflict. By developing the five 
dimensions of strength--physical, emotional, social, spiritual, and 
family--CSF equips soldiers with the skills to become more self-aware, 
fit, balanced, confident, and competent, and ultimately better prepared 
to face the physical and psychological challenges of sustained 
operations.
                      army substance abuse program
    The Nation's persistent conflict has created symptoms of stress for 
our soldiers, including an increase in alcohol and drug abuse. This 
commander's program uses prevention, education, deterrence, detection, 
and rehabilitation, to reduce and eliminate alcohol and drug abuse. It 
is based on the expectations of readiness and personal responsibility.
    A team recently returned from deployment to U.S. Army Forces, U.S. 
Central Command. To support our commanders, clear and effective 
procedures for random drug testing in theater are under development, 
such as the implementation of online tools to train unit prevention 
leaders and to quickly inform commanders of test results. Another area 
under development is the review of portable prevention education 
packages for deployed soldiers, soldiers at home, and soldiers in the 
RC. Additionally, the Army is conducting a pilot program that provides 
confidential education and treatment to soldiers who self-refer to the 
Army substance abuse program for assistance with alcohol issues. In 
addition to the pilot program, we are conducting a broader, more 
detailed study to determine the exact nature and extent of any stigma 
in the Army associated with substance abuse treatment. This study will 
run concurrently with the pilot program. The pilot program and detailed 
study were concluded on March 1, 2010 and we expect to report to 
Congress in April 2010. We want to ensure that all soldiers who may 
need assistance can get assistance without the barrier of stigma.
                        congressional assistance
    Recruiting, retention, and providing for the well-being of the best 
Army in the world requires a significant commitment by the American 
people. The Army is grateful for the continued support of Congress for 
competitive military benefits and compensation, along with incentives 
and bonuses for soldiers and their families and for the civilian 
workforce. These are critical in helping the Army be the employer of 
choice.
                               conclusion
    We must maintain an appropriate level of investment to ensure a 
robust and high-quality force. The well-being and balance of our force 
are absolutely dependent upon your tremendous support. The Army is 
growing and transforming in a period of persistent conflict. We will do 
so with men and women of the highest caliber whose willingness to 
serve, is a credit to this great Nation.
    Senator Webb. Secretary Garcia.
 STATEMENT OF HON. JUAN M. GARCIA III, ASSISTANT SECRETARY OF 
           THE NAVY FOR MANPOWER AND RESERVE AFFAIRS
    Mr. Garcia. Chairman Webb, Senator Graham, distinguished 
members of the committee, it's my pleasure to be here today to 
testify on behalf of our Navy and Marine Corps personnel.
    For the past 5 months as an Assistant Secretary of the 
Navy, I've had the honor of representing and advocating for the 
nearly 650,000 sailors and marines, both Active Duty and 
Reserve, and 180,000 civilian employees who, together, are 
globally engaged across a spectrum of operations ranging from 
major combat to humanitarian assistance.
    Across the Department of the Navy, we are asking our 
sailors, marines, and civilians to take on extraordinary tasks 
ranging from combat operations in Afghanistan to unplanned 
disaster relief in Haiti. The men and women who comprise the 
Navy and Marine Corps have invariably risen to meet the 
challenge presented.
    Our leadership team--Secretary Mabus, Under Secretary Work, 
Admiral Roughead, and General Conway--have set a course for the 
Department of the Navy that drives our human capital strategy, 
focusing on our greatest asset: our people. In order to achieve 
our best, we promote an environment in which every person can 
excel, where each person is treated with dignity and respect, 
and where all are recognized for the contributions they make.
    Both the Navy and Marine Corps are experiencing historic 
success in recruiting and retention of Active Duty 
servicemembers. I assess that both Services will continue 
meeting their recruiting and end-strength goals for the 
foreseeable future. It's a tribute to both the dedication of 
our military personnel communities and to the patriotism of our 
Nation's young men and women that we are able to maintain an 
All-Volunteer Force of unprecedented quality through more than 
8 years of active combat operations.
    Recruiting and retention in certain fields--healthcare, 
Special Forces, nuclear power--continue to pose challenges and 
will require the use of special pays and bonuses to ensure 
adequate numbers of qualified personnel are available in those 
critical specialties.
    Despite its high operational tempo, the Marine Corps was 
able to grow to 202,000 Active Duty end strength 2 years ahead 
of schedule. This focus on Active Duty recruiting and retention 
resulted in a slight shortfall of the Marine Reserve component 
end strength for 2009. For this same reason, 2010 Reserve 
strength may also be slightly below target.
    The health of the Reserve components is of particular 
concern because of our dependence on them to meet our global 
obligations. Since September 11, more than 142,000 mobilization 
requirements have been met by members of the Navy and Marine 
Corps Reserve.
    A high tempo, high stress environment appears to be the new 
normal for the Department of the Navy. One of the lessons to be 
learned from recent years is that our people step up and 
perform superbly in times of greatest need. But, the reality of 
continuing operations in Afghanistan, combined with our other 
deployment commitments, undeniably places great stress on our 
forces. The Department of the Navy is employing every measure 
available to help identify consequent risks, and we continue to 
assess and reevaluate these programs daily.
    As Secretary Gates has said, apart from the war itself, we 
have no higher priority than taking care of the wounded, ill, 
and injured. Through the Marine Corps Wounded Warrior Regiment 
and the Navy Safe Harbor Program, the sea Services strive to 
provide the best possible support for our personnel struck 
down, to include reintegration into society and a new emphasis 
on post-service employment.
    I'd like to thank the committee members for their 
continuous commitment to the support of our expeditionary 
fighting men and women, especially to those who have returned 
from the front line of battle with broken bodies but unbroken 
spirits, our wounded warriors.
    I look forward to your questions.
    [The prepared statement of Mr. Garcia follows:]
               Prepared Statement by Hon. Juan M. Garcia
    Chairman Webb, Senator Graham, and distinguished members of the 
subcommittee, it is my pleasure to be here today to testify on behalf 
of our Navy and Marine Corps personnel. For the past 5 months as an 
Assistant Secretary of the Navy, I have had the honor of representing 
and advocating for the nearly 650,000 sailors and marines, both Active 
Duty and Reserve, and 180,000 civilian employees who, together, are 
globally engaged across a spectrum of operations ranging from major 
combat to humanitarian assistance. Across the Department of the Navy, 
we are asking our sailors, marines, and civilians to take on 
extraordinary tasks ranging from combat operations in Afghanistan to 
unplanned disaster relief in Haiti. The men and women who comprise the 
Navy and Marine Corps have invariably risen to meet the challenges 
presented.
    Our leadership team, Secretary Mabus, Under Secretary Work, Admiral 
Roughead, and General Conway, have set a course for the Department of 
the Navy that drives our Human Capital Strategy--focusing on our 
greatest asset--our people. In order to achieve our best, we promote an 
environment in which every person can excel, where each person is 
treated with dignity and respect, and where all are recognized for the 
contributions they make.
    Let me address some particular areas of interest and concern 
related to the Department's manpower and personnel.
    In terms of military personnel, both the Navy and Marine Corps are 
experiencing historic success in recruiting and retention of active 
duty servicemembers. I assess that both Services will continue meeting 
their recruiting and end-strength goals for the foreseeable future. It 
is a tribute to both the dedication of our military personnel 
communities and to the patriotism of our Nation's young men and women 
that we are able to maintain an All-Volunteer Force, of unprecedented 
quality, through more than 8 years of active combat operations.
    Recruiting and retention in certain fields--including health care, 
Special Forces, and nuclear power--continue to pose challenges, and we 
still require the use of special pays and bonuses to ensure adequate 
numbers of qualified personnel are available in critical specialties 
such as these.
    The Navy expects to continue to need an additional 4,400 end-
strength for Overseas Contingency Operations. In considering that 
requirement, it is important to remember that the number of active duty 
sailors has been in gradual decline since the Vietnam war. As recently 
as 1993 the Navy had half-again as many sailors on active duty, and 
available for assignments, as it does today.
    Despite its high operational tempo, the Marine Corps was able to 
grow to 202,000 active duty end strength 2 years ahead of schedule. 
This focus on active duty recruiting and retention resulted in a slight 
shortfall of the Marine Reserve component end strength for 2009. For 
this same reason, 2010 Reserve strength may also be slightly below 
target. The health of the Reserve components is of particular concern 
because of our dependence on them to meet our global obligations. Since 
September 11, more than 142,000 mobilization requirements have been met 
by members of the Navy and Marine Corps Reserve.
    Another topic of particular interest is the introduction of female 
personnel on submarines. On February 19, 2010, the Secretary of Defense 
notified Congress of our intent to change the policy prohibiting the 
service of women in submarines. After the requisite notification period 
has expired, it is the Navy's intent to have the first cadre of female 
officers commence training on nuclear prototypes and begin a pipeline 
that will ultimately lead them to qualification as Naval Submariners, 
removing one of the last gender barriers in the U.S. Navy, and helping 
to insulate us from the anticipated surge in hiring by the civilian 
nuclear power industry in the decades to come. Because of the critical 
mission and demanding environment of the submarine force, we envision a 
gradual, and measured approach to this integration. Our initial efforts 
will focus on officers only and will concentrate on our large boats 
(SSGNs and SSBNs), where the existing infrastructure will accommodate 
these changes without material alteration. As a measure of extra 
caution, the Navy will not reduce the number of male officers trained 
and qualified for submarine duty until we have experience with 
successfully placing female officers in those roles.
    Some might argue that such initiatives should not be undertaken 
during a period of high operating tempo and stress on the force. But a 
high tempo, high stress environment appears to be the new normal for 
the Department of the Navy. One of the lessons to be learned from 
recent years is that our people step up and perform superbly in times 
of greatest need. Yet the reality of continuing operations in 
Afghanistan combined with our other deployment commitments undeniably 
places great stress on our forces.
    Stress on the force has many causes and manifests in many forms. 
The Secretary of Defense asked former Secretary West and Retired 
Admiral Clark to lead an independent review of the tragic events at 
Fort Hood. Their review produced 86 recommendations for changes in, or 
reviews of, procedures and policies. Currently, the Department of the 
Navy is working with the other Services and the Office of the Secretary 
of Defense to evaluate those recommendations and implement those that 
seem appropriate. Well before the shootings at Fort Hood, the 
Department of the Navy had in place its Caregiver Occupational Stress 
Control Program, which is designed to enhance the resilience of 
caregivers, including mental health professionals, chaplains, corpsmen, 
and other counselors and advisers. Additionally, for reservists and 
individual augmentees returning from mobilization, the Department 
created the Returning Warrior Workshops (which are a part of the Yellow 
Ribbon Reintegration Program) to help with the adjustment to life back 
home.
    Stress on our personnel has likely played a role in the 
heartbreaking increase in suicide rates among the active duty in recent 
years. The Department of the Navy has employed every measure available 
to help identify those at risk, encourage them to seek help, and 
prevent these tragedies. We continue to assess and re-evaluate our 
programs daily, and will not stop, believing that even a single suicide 
by those wearing our Nation's cloth is one too many.
    As Secretary Gates has said, apart from the war itself, we have no 
higher priority than taking care of the wounded, ill, and injured. 
Through the Marine Corps's Wounded Warrior Regiment and the Navy's Safe 
Harbor Program, the sea services strive to provide the best possible 
support for our personnel struck down, to include reintegration into 
society, and a new emphasis on post-Service employment.
    Thanks to advances in military medicine, many of our most seriously 
wounded, who even a few years of ago would have died of injuries, are 
recovering and, in many cases, able to resume their military jobs. 
Others will require special accommodations and support for the rest of 
their lives. We are working in close partnership with the Department of 
Veterans' Affairs to ensure the best and most dignified treatment 
possible for those sailors and marines.
    Members of our civilian workforce continue their crucial 
contributions to our mission while coping with two significant 
transitions of their own.
    Consistent with your direction in the National Defense 
Authorization Act for Fiscal Year 2010, we are currently in the process 
of moving all of our civilian employees out of the National Security 
Personnel System. Those who are returning to the General Schedule will 
be converted no later than the end of the fiscal year. Those who will 
move to one of the various alternative pay systems will be transitioned 
during 2011.
    While this is occurring, the DOD is also engaged in a significant 
in-sourcing initiative, expected to add more than 33,000 civilian 
positions over the next 5 years to perform currently contracted 
services--the Department of Navy expects to establish 10,000 new 
civilian positions as part of this effort. This initiative will 
rebalance our workforce; rebuild organic capabilities; reduce 
operational risk by ensuring that inherently governmental and functions 
that support the readiness/management needs of the Department are 
performed by government employees; and that services are delivered in 
the most cost effective manner. Nearly a third of these new positions 
are expected to be part of the crucial acquisition workforce. These 
insourcing initiatives are consistent with DOD's High Priority 
Performance Goals in the President's fiscal year 2011 Budget's Analytic 
Perspectives volume.
    Finally, I would like to thank the committee members for their 
continuous commitment to the support of our expeditionary fighting men 
and women, especially to those who have returned from the front line of 
battle with broken bodies but unbroken spirits--Our Wounded Warriors.
    I look forward to your questions.
    Senator Webb. Thank you, Secretary Garcia.
    Secretary Ginsberg.
 STATEMENT OF HON. DANIEL B. GINSBERG, ASSISTANT SECRETARY OF 
         THE AIR FORCE FOR MANPOWER AND RESERVE AFFAIRS
    Mr. Ginsberg. Thank you, Chairman Webb, Ranking Member 
Graham, and members of the subcommittee.
    It is my honor to testify before you today about our 
airmen. They are doing incredible work every day to serve our 
Nation and accomplish the missions that our Nation has asked of 
them. Our Air Force has been engaged in continuous operations 
for over 19 years. We have never been more engaged than today. 
We have over 38,000 airmen deployed around the world, and 
thousands more airmen providing direct support to the 
warfighter through our space systems, global mobility 
operations, and remotely-piloted operations, to name just a few 
of the critical capabilities that we provide.
    Overall, our force structure is healthy. We are working 
internal challenges to ensure we meet the increased demand for 
new and emerging missions, such as our remotely piloted 
aircraft, cyberoperations, and irregular warfare. We are 
meeting our total-force recruiting goals, except for a few 
hard-to-fill specialties in our officer medical specialties.
    To address this, we are aggressively pursuing a three-
pronged approach to, first, grow our own through expanded 
scholarship opportunities and commissioning opportunities for 
our enlisted force; second, increase compensation through 
special and incentive pays; and third, to improve quality of 
life.
    Although the Air National Guard will meet end strength, we 
are having challenges recruiting enough officers. That may be 
related to our high retention rates we are currently 
experiencing with our Active component. Historically, the Guard 
and Reserve rely heavily on recruiting prior-service trained 
airmen who separate from the Active side.
    An efficient and smooth transfer between each component and 
Civil Service allows the Air Force to access and retain 
important skill sets and balance our mission needs over time. 
To make this process work even better, we are focusing on our 
Continuum of Service Program. Through Continuum of Service, we 
are reviewing all Air Force, Office of the Secretary of Defense 
(OSD), and statutory requirements to identify areas where we 
can streamline the transfer between components. When statutory 
issues are identified, we will work with OSD and our 
counterparts in other Services to identify and support 
legislative proposals to you.
    Taking care of our airmen and their families is a top Air 
Force priority. In the spring of 2009, the Air Force renewed 
its longstanding commitment to our airmen and families by 
designating July 2009 through July 2010 as ``The Year of the 
Air Force Family.'' The observance serves two primary purposes. 
First, we examined our family support services and policies 
across the Air Force in order to expand or refine them as 
required to meet the emerging needs and expectations of our 
airmen, their families, and the larger Air Force family.
    Second, we set aside specific time to recognize the 
sacrifices and contributions of the members of our entire Air 
Force family--our Active, Guard, Reserve, civilian, spouses, 
and family members. We have focused our efforts to ensure we 
provide robust programs to meet the unique needs of our Guard 
and Reserve members and their families.
    In conjunction with the Year of the Air Force Family, we 
are also focused on reducing the stressors and mission 
detractors that impact our airmen and their families. We have 
taken a holistic approach to addressing airmen resiliency. We 
are strengthening our Exceptional Family Member Program to 
ensure we better meet their unique needs. We are dedicated to 
reducing incidence of sexual assault and suicide among our 
force. One is too many.
    Diversity is an integral part of our mission accomplishment 
and success in today's Air Force, and will remain in the 
forefront of that area, as we continue to exclusively attract, 
develop, and retain highly qualified professionals for the 
betterment of the total force.
    Across all of our programs, we continually strive to 
improve as we accomplish the Air Force's and the Nation's 
priorities. I am committed to ensuring we provide the best 
possible programs that increase our combat capability and take 
care of our most important asset: our airmen.
    I look forward to working with this committee, which has 
helped shape DOD into the world's premier defense organization. 
I thank you for the opportunity to appear before you today.
    [The prepared statement of Mr. Ginsberg follows:]
             Prepared Statement by Hon, Daniel B. Ginsberg
                              introduction
    Mr. Chairman, members of the subcommittee, thank you for this 
opportunity to discuss the Air Force's most important resource--our 
airmen. This diverse group of highly-skilled and dedicated men and 
women ensure our Air Force remains the most powerful in the world. Our 
airmen have been continuously deployed and globally engaged in combat 
missions for over 19 straight years. Approximately 38,800 airmen are 
currently deployed in support of joint operations across the globe. Of 
these, over 4,000 airmen are filling Joint Expeditionary Taskings in 
non-traditional roles in Iraq, Afghanistan and elsewhere. Thousands 
more are providing critical direct support to our combatant commanders 
from their home station. These critical capabilities include space 
systems such as GPS, rapid global mobility of people and supplies, as 
well as intelligence, surveillance, and reconnaissance from space and 
remotely piloted aircraft. Our airmen are committed to winning today's 
fight and prepared for tomorrow's challenges.
    As the Air Force's assistant Secretary for Manpower and Reserve 
Affairs, I am focused on accomplishing the Air Force's priorities by 
developing and implementing programs and policies to best leverage our 
total force--Active, Guard, Reserve, and civilians--to maximize our 
combat capability for the joint commanders. To that end, I have made 
Continuum of Service (CoS), which will allow for smooth transfer of 
skilled airmen between components, and increasing the diversity of our 
force high priorities. I am also attuned to the overall health of our 
force. We are working essential programs that support our wounded 
warriors, help airmen reintegrate after deployments, provide families 
with the support they need and minimize the incidents of sexual assault 
and suicide to name just a few.
                   end strength and force management
    With the National Defense Authorization Act for Fiscal Year 2010, 
our current approved total force end strength is 686,944. This includes 
331,700 Active component; 179,044 civilians; 69,500 Reserve; and 
106,700 Air National Guard. In the fiscal year 2011 budget request, our 
programmed total force end strength is 702,669. This includes 332,200 
Active component, 192,569 civilians, 71,200 Reserve, and Air National 
Guard end strength remaining at 106,700.
    The Air Force's fiscal year 2011 budget request preserved end 
strength in the face of fiscal constraints, realigned Active component 
and Reserve manpower within existing resources, and grew civilian end 
strength to meet Air Force priorities. Major manpower drivers include 
initial investment toward remotely piloted aircraft fleet operational 
capability to 65 combat air patrols; enhancing cyberspace/irregular 
warfare/command and control capabilities; and resourcing required Air 
Force priorities to include Acquisition Excellence, further 
enhancements to Nuclear Enterprise, and developing and caring for our 
airmen and their families while rebalancing our total force mix for 
agile combat support.
    Maintaining the optimum overall force size as well as balancing 
critical skill-sets is a routine part of the Air Force's force 
management efforts. The current downturn in the economy has had a 
direct impact on the Air Force's lower attrition rates projected in 
fiscal year 2010. As a result, the Air Force is expected to exceed end 
strength by about 3,700 airmen (2,100 officers and 1,600 enlisted) in 
fiscal year 2010. Although this increase would fall under the Secretary 
of the Air Force's purview of 2 percent over authorized end strength, 
the Air Force implemented a force management plan to bring this back in 
alignment. In fiscal year 2010, we made small adjustments in several 
areas including limited reductions of officer and enlisted accessions, 
increased service commitment waivers, waived enlisted time-in-grade 
requirements for retirement, and we are implementing an additional 
enlisted date-of-separation rollback. We are continually monitoring 
results from these actions and to date we have achieved about 50 
percent of our fiscal year 2010 force management goal. Even with these 
efforts, we do not expect these actions to fully achieve the reductions 
targeted for fiscal year 2010. As a result, we will likely continue 
many of these actions and consider other force management options for 
the remainder of fiscal year 2010 and in fiscal year 2011 as needed. 
Utilizing force management tools is a necessary and routine leadership 
obligation to ensure the Air Force remains within authorized strength 
levels and get the right balance of grades and skills to meet our 
evolving mission requirements. However, we strive to use these force 
management tools in a deliberate manner with the least disruption to 
the cohesion of the force.
                               recruiting
    Even in a time of higher retention and a struggling economy, 
recruiting the highest quality airmen is as important as ever. Our 
recruiting force continues to achieve the enlisted accession mission 
with integrity and excellence. In fiscal year 2009, we met mission 
requirements for enlisted recruiting in all components (Active, Guard, 
and Reserve). To date in fiscal year 2010 we have achieved 100 percent 
of our active-duty accession goals and 100 percent and 112 percent of 
our Reserve and Guard accession goals, respectively.
    Although we have achieved mission goals in our line officer 
accession programs, we continue to struggle with health professions 
officer recruitment and retention. In fiscal year 2009, we recruited 
approximately 70 percent of officer health professions requirements 
exceeding the fiscal year 2008 production of 62 percent. The ongoing 
high-demand for medical professionals in the lucrative civilian market 
makes it difficult for the Air Force to attract and retain fully 
qualified individuals. As a result, in 2006 the Air Force implemented a 
long-term ``grow our own'' strategy by offering more medical school 
scholarships in student-based markets. In fiscal year 2008, we filled 
431 of 437 available scholarships (98.6 percent) and for fiscal year 
2009, we accessed 376 of 371 scholarships (101 percent). In fiscal year 
2010, we are on track to achieve a 100 percent scholarship fill rate. 
Our main shortfall in recruiting is attracting fully-qualified medical 
professionals to come straight into the service particularly in the 
Biomedical Science Corps. Psychology, Pharmacy, Optometry and Public 
Health Officers continue to be challenging to recruit. Our continued 
challenges in the health professions are why we have submitted $85.7 
million in this year's budget request for officer bonuses to attract 
and retain more medical professionals on active duty. We are 
appreciative of and ask for your continued support in this area.
    Although recruitment is also strong in the Reserve and Air National 
Guard, they face challenges with fewer prior-servicemembers due to 
lower Active component attrition rates and increased requirements for 
new and emerging mission specialties. As a result, both the Air 
National Guard and the Air Force Reserve have had to increase their 
non-prior service recruitment efforts. In fact, the Reserve non-prior 
service recruiting requirement has nearly doubled since the end of 
fiscal year 2007. Increased recruitment of non-prior servicemembers for 
both Air National Guard and the Air Force Reserve has directly resulted 
in increased recruitment costs as well as increased training costs over 
that of already trained prior-servicemembers. The continued support of 
the Air Force, Department of Defense and Congress will undoubtedly 
shape the foundation of their success.
                               retention
    Although overall officer retention has remained strong, we have had 
challenges with retention of rated officers, some critical skills and 
some health profession specialties. To address our rated officer 
shortages, we implemented a rated recall program to bring back 500 
trained pilots to help fill our rated staff positions allowing more 
current pilots to return to the cockpit. The Air Force prudently 
employs Special and Incentive (S&I) pays to compensate for and 
incentivize the performance of hazardous and arduous duties, the 
acceptance of duty in hostile or remote and isolated locations, and the 
recruiting and retention of personnel with specific skills or in 
specific career fields. Fiscal year 2010 Active component recruiting 
and retention S&I pays total $465.9 million. For fiscal year 2011, we 
have requested this be increased to $480.1 million. This increase is 
due to changing eligible populations, anniversary payments, and the 
addition of retention bonuses for five stressed officer career fields. 
Our S&I pays are critical as we shape the force to meet new and 
emerging missions and support the combatant commanders in today's 
fight.
    The quality of Air National Guard recruits has not declined and 
their retention rate remains strong at 96.9 percent. The Air National 
Guard saves on average $62,000 in training costs for every qualified 
member retained or recruited. Our focus in this area allows us to 
retain critical skills lost from the Active component and save valuable 
training dollars. In 2009, through the use of our 14 In-Service Air 
National Guard recruiters strategically placed at active duty bases, 
the Air National Guard garnered approximately 896 confirmed accessions 
of a total of 5,309 accessions. The bonuses and incentive programs are 
a key component to that success.
    Retention for the Air Force Reserve remains solid with first-term 
airmen retention being the highest in recent history. Likewise, second-
term and career airmen retention has rebounded following a drop in 
recent years due in-part to force structure changes. Although we have 
not formally studied the causes, we attribute this increase in 
retention rates primarily to the recent legislative authorizations 
congress has approved that enhance incentives to remain in the service 
like inactive duty training (IDT) travel pay, streamlining of TRICARE 
Reserve Select premiums, enhanced bonuses and the Post-September 11 GI 
Bill. We anticipate this positive trend in retention will continue for 
the foreseeable future.
                           civilian personnel
    Management of the civilian workforce will continue to be a priority 
for the Air Force. We are working collaboratively with the Deputy Under 
Secretary of Defense for Civilian Personnel Policy on Strategic Human 
Capital Planning efforts, in particular, to address the provisions in 
NDAA for Fiscal Year 2010 which require reporting by the Military 
Departments. We support this effort that will result in the Air Force 
and the Department of Defense (DOD) having the skills and competencies 
necessary to meet our current and future mission requirements.
    In October, 2009, the President signed into law the NDAA 2010 that 
repeals the authority for NSPS and requires DOD to transition civilian 
employees from NSPS to the appropriate statutory non-NSPS personnel and 
pay system not later than January 1, 2012. The Air Force has 
approximately 44,000 employees in NSPS. We are aggressively planning 
and preparing to transition these Air Force employees in an orderly and 
timely manner. We have begun the process of reclassification of 
positions, where necessary. We will soon issue a conversion plan that 
will inform and assist our human resource practitioners, supervisors, 
managers and employees to understand the transition process and to 
facilitate the transition. The NDAA also provided additional personnel 
flexibilities which we will be pursuing in conjunction with DOD and the 
Office of Personnel Management.
                               diversity
    Diversity is an integral part of mission accomplishment and success 
in today's Air Force and will remain in the forefront as we continue to 
inclusively attract, develop, and retain highly qualified professionals 
for the betterment of the Total Force. The capacity to educate, manage, 
lead, and train a diverse force is a core competency of Air Force 
leadership. Currently, we are pursuing collaborative diversity outreach 
initiatives with Air University, Civil Air Patrol, Junior and Senior 
Reserve Officer Training Corps, Officer Training School and the United 
States Air Force Academy. Additionally, strategic plans are being 
formalized to utilize the Air Force Diversity Champions to promulgate 
the aims of diversity within the Air Force and the community. Areas of 
interests and emphasis to cultivate and develop future leaders of the 
Total Force will include reaching out to students enrolled in science, 
technology, engineering and mathematics programs in high schools, 
colleges and universities across the Nation.
    As the demographics of the Nation continue to change, the Air Force 
must position itself to optimize the true benefits of a diverse force 
and respectfully request appropriate Congressional funding for the 
sustainment of the aforementioned outreach initiatives. By 
incorporating diversity management leadership principles and strategies 
to leverage the unique qualities and talents of all citizens, the Air 
Force will achieve mission excellence and sustain dominance in air, 
space, and cyberspace.
                          continuum of service
    An important aspect of retention is our ability as a Service to 
allow skilled airmen to easily transfer from one component to another 
providing the Air Force flexibility while retaining valuable skills. 
CoS transforms the operating culture and paradigms to shape the future 
of personnel and manpower delivery throughout the Air Force to meet 
global mission requirements.
    CoS efforts have already positively impacted our Air Force members 
through a number of initiatives. Through our on-line CoS Tracking Tool 
(CoSTT), any airman can submit a proposal for a CoS initiative. Our 
tool was modified for use by the Army and is now being adapted for use 
throughout the Department of Defense. CoS initiatives have already 
improved our joint-spouse PCS process, interservice transfer of rated 
officers and helped facilitate the establishment of the Religious 
Professional Scholarship Program (RPSP) allowing members to attend 
seminary and later return to active duty. The RPSP is designed to help 
fill manning shortfalls within the chaplaincy for underrepresented 
faiths within the Air Force. This program is now being considered for 
utilization by my Navy and Army counterparts. In addition, CoS helped 
modify the chaplain accession age ceiling from 42 to 47.
    Some current Air Force CoS initiatives include: (1) aligning the 
Air Reserve Component pregnancy policy with that of the Army and Marine 
Corps to allow pregnant women to work until her orders expire; (2) 
changing Air Force policy on ``Lawful Permanent Resident'' accessions 
for critical specialties by utilizing current laws permitting the 
appointment of a Reserve Component officer who has been lawfully 
admitted to the United States; (3) evaluating the authority provided in 
the NDAA for Fiscal Year 2009 by considering a ``Career Intermission 
Pilot Program'' to determine whether a more flexible career path will 
prove to be an effective retention tool; and (4) examining the effects 
of changes to Air Force policy that would bring fully qualified 
personnel into stressed career fields faster than traditional methods 
by recognizing the value of nongovernmental experience.
    The Air Force CoS program is an important force multiplier as it 
not only helps our airmen transition between components, but also 
balances people and mission to ensure the right airman is in the fight. 
We greatly appreciate the outstanding support of the Senate Armed 
Services Committee Personnel Subcommittee on many of our CoS 
initiatives.
                           suicide prevention
    Preventing suicide among our airmen is extremely important to the 
well-being of our force. The Air Force developed the basis for its 
suicide prevention program in 1993 and it is one of ten suicide 
prevention programs listed on the Substance Abuse and Mental Health 
Services Administration's National Registry of Evidence-Based Programs 
and Practices. Although this program resulted in a reduction in the 
number of suicides among airmen, within the Air Force we have 
recognized the importance of a multi-faceted approach to meet the 
varied needs of our people. Since the initial program began, we have 
placed a strong emphasis on leadership involvement in preventing 
suicides. Training has been implemented in various professional 
military education curricula to create awareness among Air Force 
leaders and frontline supervisors of behaviors that may lead to suicide 
and to inform leadership of actions they can take to prevent suicide. 
We have identified specific career fields in which the requirements of 
the job place enormous stress on airmen and we are developing targeted 
programs to improve resiliency and encourage airmen to seek help early. 
To facilitate the seeking of mental health services, we have placed 
behavioral health specialists in our primary care clinics.
    Additionally, we emphasize community involvement in suicide 
prevention, combining the efforts of chaplains, family counselors, and 
other non-medical counselors to meet the psychological health needs of 
airmen. Finally, we collaborate with our sister Services, with the 
Defense Center of Excellence for Traumatic Brain Injury and 
Psychological Health, and with the Department of Veterans Affairs to 
identify best practices and continuously improve our existing suicide 
prevention program. Recently, the Air Force Surgeon General took the 
lead in implementing a two-tiered program to create and enhance 
psychological resiliency in deploying and returning airmen. This 
program includes a 2-day decompression program when the airmen return 
from theater. We believe one suicide is one too many and are strongly 
committed to preventing suicides and caring for our airmen.
                 sexual assault prevention and response
    Preventing sexual assault is also a top Air Force priority. Since 
program implementation in 2005, the Air Force has maintained a multi-
disciplinary approach to addressing sexual assault that supports home-
stationed and deployed airmen. A robust Air Force response to victims 
includes dedicated full-time civilian and military Sexual Assault 
Response Coordinators (SARCs) and more than 2,600 volunteer victim 
advocates who provide 24/7/365 support. Our robust Air Force Sexual 
Assault Prevention and Response program budget funds 80 civilian and 29 
military officer SARCs at the installation level, who work directly for 
the Vice Wing Commander. Our military SARCs provide a full-time 
deployed capability at seven primary deployment locations. The 
Secretary of the Air Force recently approved the addition of 24 Air 
Force Office of Special Investigations agents trained and dedicated to 
investigate sexual assault. Caring and professional response to victims 
has been a focus of the Air Force program but equally important is our 
focus to prevent the crime before it occurs.
    The primary challenge of addressing sexual assault in the military 
and society at large is to confront a culture where sexual assault is 
allowed to exist. It requires a positive, ongoing effort to educate our 
airmen and others, about the realities of sexual assault, debunking 
myths that continue to be propagated by media and entertainment, and 
maintained by peer pressure or other societal convention. The Air Force 
has developed a prevention-based approach that directly focuses on 
fostering positive behavior that is in concert with our core values. 
The approach includes leadership focus from the top down, risk 
reduction, and bystander intervention training. The later is a strategy 
that motivates and mobilizes people who may see, hear, or recognize 
signs of an inappropriate or unsafe situation, to act.
    We will be working with Dr. Stanley, OSD (P&R), and our sister 
Services, to address the recommendations in the report of the Defense 
Task Force on Sexual Assault in the Military Services. Sexual assault 
is a crime. The Air Force is dedicated to the elimination of this crime 
and we recognize the challenges dealing with this very complex issue.
                      year of the air force family
    In the spring of 2009, the Air Force renewed its longstanding 
commitment to taking care of our airmen and families by designating 
July 2009 through July 2010 as ``Year of the Air Force Family.'' The 
observance serves two primary purposes. Across the Air Force, we 
examined our support services and policies in order to expand or refine 
them as required to meet the emerging needs and expectations of our 
airmen, their families, and the larger Air Force Family. Second, we set 
aside specific time to recognize the sacrifices and contributions of 
all of the members of our Air Force family--our Active, Reserve, and 
Guard--civilians, spouses, and family members.
    We have focused our efforts to ensure we provide robust programs to 
meet the unique needs of our Guard and Reserve members and their 
families. The Yellow Ribbon Reintegration Program is one important way 
we are accomplishing this. The Air Force is working alongside other 
services in this DOD-wide effort to ensure the Air National Guard and 
Air Force Reserve airmen and their families are connected with all of 
the appropriate resources before, during and after deployments. We 
continue to focus on the reintegration phase after returning home and 
ensure that commanders are involved and aware throughout. We continue 
to improve our effectiveness and relationships with other associations 
such as the Department of Veterans Affairs and the Department of Labor 
in providing current and relevant information to members. The Air Force 
remains focused on airmen and their families and will ensure the 
oversight and success of the Yellow Ribbon Reintegration Program.
    Additionally, we are ensuring the Year of the Air Force Family does 
not overlook our ``extended Family'' our retirees, parents and the 
nongovernmental and community partners that support Air Force people 
every day across the Nation. We are using this year long period to 
launch our sharper focus on improving support to airmen and families. 
Under Secretary Donley's leadership, our concerted attention on 
providing the support that results in stronger, more resilient airmen 
and families will remain a priority in the years to come.
    In April 2010, we will hold a Caring for People Forum that will 
bring together helping professionals, airmen, and family members to 
develop an action plan to address the pressing and longer term concerns 
of airmen and families which will be briefed to senior leadership at 
the end of the forum.
    We are working to strengthen all of the partnerships that 
contribute to the quality of life for our members. These will include 
close rapport with local school districts (to enhance quality education 
and garner on-site support for children impacted by repeated 
deployments), housing privatization projects and agreements between our 
bases and city or county services.
                   wounded warrior and survivor care
    The Air Force Wounded Warrior program focuses on the needs of 
recovering airmen and their families, as well as families of the 
fallen. We now have 17 Recovery Care Coordinators (RCC) in 15 
locations, with an additional 10 RCCs being hired this year. Our RCCs 
are the primary point of contact for our wounded, ill, and injured 
airmen and ensure the health care, financial, informational, and 
personal needs of airmen and their families are available in a timely 
manner. Because of the range of questions airmen and families have 
after an injury or illness has incurred, it is critical to the healing 
process to have relevant and accurate information available to our 
airmen. Recovery Care Coordinators are in place to ensure those 
knowledgeable in medical and other areas of expertise are available to 
provide the requested information. This assistance is provided for as 
long as the airmen and families want assistance during recovery, 
rehabilitation, and reintegration. The Air Force also continues to work 
closely with the Office of Wounded Warrior Care and Transition Policy 
in the Office of the Secretary of Defense to ensure our programs 
continue to support all wounded, ill, and injured servicemembers. It is 
our solemn duty that these airmen receive the utmost support and care.
                               conclusion
    I am continually impressed, but not surprised, by the tremendous 
hard work and focus our airmen display daily as they accomplish their 
missions. I am dedicated to providing them the best programs and 
support, removing any policy barriers and pursuing innovative ways to 
streamline our processes to allow them to be even more effective. Our 
Air Force is a critical component to our Nation's defense as we are 
faced with uncertain and ever changing threats.
    We appreciate your unfailing support to the men and women of our 
Air Force, and I look forward to your questions.
    Senator Webb. Thank you very much.
    I thank all of you for your testimony.
    I think what I would like to do is--since I took a good bit 
of time in my opening statement, I think I would like to just 
start with an 8-minute round, and Senator Graham could begin, 
and then we could go to Senator Hagan and Senator Begich, and 
then I'll follow on after you.
    Senator Graham. Well, thank you, Mr. Chairman.
    Secretary Stanley, when it comes to the personnel part of 
the budget, we're going to grow the Army and Marine Corps. I 
think we need to. The healthcare component--how do we get a 
grip on this? What are some ideas that you all are talking 
about there?
    Dr. Stanley. Well, Senator, in my 3 weeks, we haven't 
really talked a lot about details on----
    Senator Graham. You mean, you haven't fixed this in 3 
weeks? [Laughter.]
    Dr. Stanley. What we have done--in fact, the very first 
thing I did--and I think we would--working with Congress even 
then--was to bring someone over with the skills and qualities 
to at least fill the position temporarily while we wait on the 
person, who is to be confirmed at some point in the future, to 
work with. And so, this has been an actual priority from day 
one, actually, because we recognize the healthcare costs.
    Senator Graham. Okay, well, that's fair--and 
congratulations, to all of you, by the way, for having your 
job. This time last year we were looking for people like you, 
and now we have them.
    The idea of the Guard and Reserve recruitment and 
retention--with the economy like it is, it's a good time for 
the military, but I think the economy's going to get better--I 
hope it will, and I'm sure it will eventually--TRICARE benefits 
for the Guard and Reserve--I'd just like to get your impression 
about how that program has worked, from each of the Services. 
Secretary Stanley, how is it being received by our Guard and 
Reserve Force, that they are now eligible for TRICARE? They 
have to pay a premium.
    The second issue, what effect do you believe it would have 
if we allowed people to retire at 55 if they would do more 
Active Duty service--earn their way from 60 to 55?
    Starting with Secretary Stanley.
    Dr. Stanley. Well, Senator, I know that, the TRICARE 
programs, all of those programs are under review right now 
because it's all a part of the gestalt of looking at all of 
healthcare. I don't have answers for you today.
    Senator Graham. Okay.
    Dr. Stanley. But, we look forward to working with Congress 
on that.
    Senator Graham. From the Services' point of view, what are 
you hearing from the Army, the Marines, and the Air Force?
    Mr. Lamont. From the Army's perspective, TRICARE Reserve 
has gone over very well. But, we're finding, among particularly 
our Reserve component, they don't fully appreciate or are 
educated enough to understand its availability to them. We 
think it's incumbent upon this to broaden that perspective so 
they avail themselves of what's out there.
    It's an excellent program, and it's a wonderful incentive. 
On the Reserve side, we may also, at some point in time, need 
to look at some potential other incentives, from the healthcare 
side, as we continue operationalizing the Reserve. But, it's a 
resource issue, of course, as well, for all of us.
    Senator Graham. Okay.
    Secretary Garcia?
    Mr. Garcia. Senator, I have the opportunity and the honor 
to continue to serve in the Reserves, and had a Reserve 
squadron, until coming to take this appointment. I will tell 
you the--among those circles, the program is--there's a lot of 
awareness of it, and it's very popular.
    The piece that many members have read about, and are very 
interested in, is what's been called the ``gray area'' piece; 
that is, for retired reservists, not yet 60, being able to 
access TRICARE Select and some of those programs before their 
retirement.
    As Secretary Lamont said, there's a price tag that comes 
with that. I look forward to wrestling with that, with you. 
But, I can tell you that, among my circles, on the Navy and 
Marine side, it's very popular and well thought of.
    Mr. Ginsberg. Senator, TRICARE Reserve Select is a very 
well-liked program. We have good participation rates, as I 
understand it, within the Air Guard and Air Reserve. It's not 
just a benefit, it provides a tool to our airmen to make sure 
that they're medically ready for deployment.
    One of the challenges we need to look at this 
systematically--is whether--the health of the provider network, 
and whether maybe a stand-alone Air Guard base, whether we have 
a sufficient network in place, or we're taking imbursements. 
It's something we want to look at to ensure that this program 
is moving along helpfully.
    Senator Graham. Well, one last question. The sexual 
harassment, sexual assault problem is being better identified, 
and the number of reported cases is growing, which I think is 
probably an indication, not that there are more activity, it's 
just getting easier to report it, and people feel more 
confident about reporting it. But, we're not nearly where we 
need to be.
    Just very quickly, from each Service's perspective, what 
are you doing in that regard to enhance the ability of a 
servicemember to report sexual harassment or assaults in a way 
they feel will not be detrimental to their career?
    Mr. Lamont. From the Army perspective, we're looking at it 
from a couple of different directions. First, we want to make 
it easier for them to report. We have initiated programs that 
allow for the confidentiality of the report. Plus, we're also, 
as I think we----
    Senator Graham. In that regard, do we need to look at 
changing our laws? Because there's a lot of privileges 
available maybe in the civilian side, not available to military 
members. I know you have a priest-penitent privilege and 
limited medical privilege, but just look at that and see if 
there are some changes we need to make on the Personnel 
Subcommittee to expand privileges to healthcare providers. I'd 
just----
    Mr. Lamont. All right.
    Senator Graham. Okay.
    Mr. Lamont. Otherwise, as we try to build resilience within 
the force, particularly on our Sexual Harassment/Assault 
Response Prevention situation, we have initiated a program 
called ``I. A.M. Strong''--``I'' being ``Intervene,'' ``A'' 
being ``Act,'' ``M'' being ``Motivate.'' Though it's a command-
oriented climate that we're trying to address, that would 
respect the dignity of all of our soldiers, we've looked for 
this ``I. A.M. Strong'' program to educate and train our 
soldiers, on a peer-to-peer basis, to remove any stigma of 
going forward to make those reports.
    We believe it's working, at least as we've seen the number 
of reports increase. We still believe, unfortunately, that only 
roughly a third of sexual assaults are being reported.
    Senator Graham. Thank you.
    Mr. Garcia. Senator, Secretary Mabus has stood up the 
Sexual Assault Prevention Response Office. The dedicated 
officer--civilian SES--reports directly to him for the first 
time and a network of Sexual Assault Response Coordinators 
(SARCs) implemented in each unit across the fleet. As you 
indicated, we are seeing a rise in reported incidents. The 
challenge is to discern whether that's availability to 
reporting or whether it's a true spike in incidents. It's 
something we wrestle with every day.
    Mr. Ginsberg. Senator, I think from the Air Force 
perspective, this is an issue of leadership, it's an issue of 
investment, and it's just a leader--an issue of communication. 
Leadershipwise, it's about showing from the highest levels on 
down, that sexual assault absolutely won't be tolerated and 
that from our perspective, goes against everything--all of 
those core values that we hold dear.
    It's about putting in money for a strong, baseline program, 
a good, strong, healthy organization, along with funding for 
investigations, and very active and aggressive investigations. 
It's also a matter of just making sure that those who are 
victims know that their resources and reporting channels are 
available to them. We have an ability for somebody who is a 
victim to come forward and provide limited information about 
what happened so they'll come forward. It's called restricted 
reporting, and that's provided a useful channel for victims.
    Senator Graham. Thank you, all, for your service. I'm going 
to have to run to another hearing, but I shall return.
    Senator Webb. Thank you very much, Senator Graham.
    Senator Hagan.
    Senator Hagan. Thank you very much, Mr. Chairman.
    I do, too, want to thank all of you for your service to our 
country. I really do appreciate it.
    Secretary Stanley, you mentioned, in your opening remarks, 
about the Military Spouse Career Advancement Account--as it's 
being referred to MyCAA--and about the stop in the 
implementation of it. I have a serious concern with that, 
because, one, neither Congress nor the people who were 
beneficiaries of this program were given any sort of upfront 
notification about any of the problems that were being seen in 
the program. This pause has certainly caused a lot of concern 
to many people in my State, in North Carolina, because it's an 
excellent program and a lot of people are taking advantage of 
it. I think the uncertainty that's been put forth right now has 
resulted in the Department's decision--has certainly negatively 
impacted and affected the morale of our servicemembers and 
their families. It certainly has had, I think, an adverse 
impact on family readiness.
    But, one of the questions I have in the President's fiscal 
year 2011 budget, which reflects increased funding for this 
enhanced career and educational opportunities, does it address 
the longer-term needs of the program?
    Dr. Stanley. First of all, we are addressing the concerns, 
short-term and long-term. The Secretary is now, at this time, 
making a decision, looking at options that have been presented 
to him. But I will say that there are still some unanswered 
questions on long-term, but I feel confident that they're going 
to be addressed. I certainly share your concern about what's 
happened, in terms of the program being stopped. I understand 
that.
    Senator Hagan. Well, the lack of notification was certainly 
alarming too, I think, Members of Congress and the people who 
were the beneficiaries.
    As far as improving the implementation of the program, do 
you need more specialists on staff to help with that? Or is 
that some of the things you're looking into?
    Dr. Stanley. Actually, in my arrival--just to be very 
blunt.
    Senator Hagan. Okay.
    Dr. Stanley. I was sworn in on the 16th, and I learned 
about it on the 16th.
    Senator Hagan. Wow.
    Dr. Stanley. So----
    Voice. Welcome aboard. [Laughter.]
    Dr. Stanley.--I'm going to----
    Senator Hagan. Wow.
    Dr. Stanley. So, we're addressing the issues dealing with 
MyCAA----
    Senator Hagan. Okay.
    Dr. Stanley.--as we move forward. I'm very optimistic about 
it working out okay.
    Senator Hagan. Okay.
    Another question, concerning the Census. I'm concerned that 
servicemembers that are deployed during the conduct of the 2010 
Census will be counted in a negative way that impacts the 
communities that host military installations. For the 1990 and 
2000 Census, the decision was made to count deployed 
servicemembers as overseas.
    North Carolina currently has approximately 41,200 
servicemembers deployed as a part of the overseas 
contingencies, and in the event that they are counted as 
prescribed by the Census Bureau, areas with large 
concentrations of military personnel, I believe, will be 
significantly undercounted and underfunded for the next 10 
years.
    What's preventing the Defense Manpower Data Center from 
providing the Census Bureau with information regarding the base 
of last assignment or permanent U.S. duty station as the 
primary response for our deployed servicemembers that are 
currently engaged in overseas contingencies?
    Dr. Stanley. Senator, I'm going to ask to take that 
question for the record.
    Senator Hagan. Okay. That's fair.
    Dr. Stanley. Because I'd like to get back to you with a 
very specific----
    Senator Hagan. Okay.
    Dr. Stanley.--and correct answer.
    [The information referred to follows:]
    This issue falls under the purview of the Census Bureau, and we 
must follow its guidance on how to count our personnel. The Census 
Bureau, in turn, is following what it perceives to be existing 
Congressional guidance.
    We are aware of no law specifying how to count military members 
deployed overseas. The Census Bureau is using a bill passed in the 
House in 1990, H.R. 4903, as the methodology for counting overseas 
servicemembers and their accompanying dependents. This current 
methodology, used in 1990 and 2000, counts overseas military personnel 
in this order (where the data is available): State home of record, 
State of legal residence, and State of last duty station (i.e., base of 
last assignment).
    The Department recognizes the decision to use the current 
methodology will result in overseas military personnel being assigned 
to a home State without counting them toward the populations of towns 
or counties. We also understand counting ``last duty station'' first 
would have a beneficial effect on States with a large military 
population. We have discussed with the Census Bureau methodologies 
other than using ``home of record'' first, and these methodologies 
might provide a more accurate snapshot of the current residence of the 
military personnel and also the desired town and county specificity. 
However, the current methodology does have the benefit of consistency 
over time.
    The Department stands ready to discuss all possible methodologies 
with the Census Bureau. We also look forward to continuing to work with 
Congress on this important matter.
    Senator Hagan. Well, let me go to one other one. We were 
talking about suicide. One of you referred to that. So, 
Secretaries Lamont, Garcia, and Ginsberg, I think we have 
witnessed an unacceptable number of suicides within our 
military population, and some of these losses, hopefully, could 
have been prevented if servicemembers had the ability to access 
professional care during the early stages of emotional 
distress. I'm sure we all agree that we have to reduce those 
numbers. What measures are being taken within the Services to 
ensure that our military men and women receive and gain easier 
access to mental healthcare without being stigmatized--that's, 
obviously, sometimes associated with that--and with going 
through the chain of command?
    Secretary Lamont?
    Mr. Lamont. First, you're absolutely right, we take the 
loss of any soldier, through any means, very, very seriously. 
It truly is one of the very highest priorities that we have. We 
look at it from early identification of risk factors, as well 
as early intervention when we recognize those risk factors, to 
move in and encourage, as best we can, to have those 
individuals who may exhibit those risk factors to seek out 
help.
    We have instituted a program designed to reduce the stigma 
of reaching out for mental health care. Actually, what we're 
finding out with some of our younger soldiers, who, for 
whatever reasons, do not wish to meet personally with a 
healthcare provider, for instance--we have a software program, 
that they go online and they self-address----
    Senator Hagan. Right.
    Mr. Lamont.--their issues. It's become a very valuable tool 
for us. But, it's going to take a lot of effort.
    Also, we clearly have to address the resiliency side, and 
we're making our effort to do that through a program called 
Comprehensive Soldier Fitness, where we explore, not only just 
the physical health, but the mental, the emotional and the 
spiritual well-being of the soldier, as well, to build that 
mental health resiliency as best we can to address the issues 
going on in his or her life.
    Senator Hagan. Thank you.
    Mr. Garcia. Senator, I appreciate your question. For the 
first time, last year, our Marine rate approached that of the 
national rate; we normed for age and gender. It's an issue we 
brief daily and constantly look for a correlation that we can 
zero in on.
    We focused much of our training at the NCO level. We feel 
that they have the most insight and perspective to what our 
young sailors and marines are wrestling with, those issues. But 
every marine, every sailor receives training and is made aware 
that they have access to master's-level counseling. It is 
confidential unless, in the aftermath of that training, the 
counselor feels that the individual is suicidal, homicidal, or 
is unfit for duty. But, everyone is aware of it from boot-camp 
level on.
    Senator Hagan. Do you think these things are making a 
difference in the attitude and the health of our men and women?
    Mr. Garcia. I think there is a----
    Senator Hagan. Great.
    Mr. Garcia.--undeniably, a new level of awareness from E-1 
to O-10. I've seen the training that takes place at Marine Boot 
Camp, at Marine Corps Recruit Depot. It's the first time where 
a Marine drill instructor to--a new boot camp marine sees that 
drill instructor take his cover off and address him personally, 
in a way that he has not, yet. It speaks to the importance and 
the significance, I think, that the Corps and the Department 
are placing on this.
    Senator Hagan. Okay.
    Mr. Ginsberg. Well, Senator, obviously it's a tremendous 
tragedy even when one servicemember takes their life. We pride 
ourselves, in the Air Force, being a family, and when one feels 
so alienated that it becomes a major problem at the highest 
reaches.
    This is a matter--this goes to our staffing--our capacity 
levels, in terms of having enough psychiatrists and trained 
psychologists. We, in the Air Force, are doing well, but 
obviously there's tremendous competition with the private 
sector for trained psychiatrists and trained psychologists. The 
bonuses that you provide us are absolutely essential for us to 
grow our force and to bring in psychiatrists and trained 
psychologists.
    I'd also say that this is--and to address the stigma, one 
of the things that we're doing in the Air Force is to locate 
our mental health clinics within military treatment facilities, 
within regular divisions within the hospital, basically, where 
somebody who's going in to get treatment is not seen as going 
to some special clinic, but is just part of--accessing regular 
care. We want to normalize care.
    Senator Hagan. That's good.
    All right, thank you, Mr. Chairman.
    Senator Webb. Thank you, Senator Hagan.
    Just to follow on for a moment on that line of questioning, 
I believe you could show--and, in fact, the Chief of Staff of 
the Army recently brought me a chart to this effect--that there 
is a direct correlation between dwell time--the amount of time 
that people have between deployments--and the percentage of 
emotional difficulties that are in these units. That's why I 
introduced this dwell-time amendment in 2007. When the Chief of 
Staff of the Army called me and said they were going to 15-
month deployments, with only 12 months dwell time back in the 
United States before they redeployed--having spent 4 years as a 
committee counsel over in the House Veterans' Affairs 
Committee, when we first started examining the difficulties of 
people who had served in Vietnam, first of all, I said, ``I 
can't believe you're going to do that. I don't think there's 
any operational requirement that should cause you, at this 
point in our history, to put that kind of pressure on our 
people. You're going to have challenges on the other end of 
doing this.'' Quite frankly, we're seeing that.
    All of your responses basically go to the means--and I 
salute these means--of addressing the situation once it occurs, 
but I don't think there's anything more valuable than putting 
the right kind of dwell time on our units. Particularly, when 
you look at the young age of the people who are doing these 
multiple deployments, and where they are in terms of addressing 
issues of adulthood.
    Mr. Lamont. If I may----
    Senator Webb. Mr. Lamont, do you want to----
    Mr. Lamont.--just add a comment to that. We have any number 
of programs that are well intentioned, well resourced, it 
doesn't matter. There is nothing more important than exactly 
what you say--is the dwell time of our soldiers, with their 
families and others, that will help them decompress and serve 
them so much better in this kind of situation. It is dwell 
time.
    Senator Webb. I totally agree. Thank you for saying that.
    Senator Begich.
    Senator Begich. Thank you very much, Mr. Chairman.
    I want to talk about TRICARE for a second, but then I 
actually want to get back to the SARC. In Anchorage, in 
municipal government, we call it SART, a very similar program, 
I think, but I want--that's what I want to ask you.
    But, Secretary Stanley, let me--I represent Alaska. It's 
very unique when it comes to TRICARE. It's the one that is not 
managed by a contractor, out of the whole system. We have some 
very unique situations. Alaska's population, in total, is--
about two-thirds has Federal healthcare in some form or 
another: Medicaid, Medicare, Indian Health Services, VA, 
Federal employed. So, it's probably the highest percentage, I 
would bet, or per capita, in the country. So, it has some 
unique challenges. Then, geographically, the geography of 
Alaska is very vast, and so we have some great challenges.
    I have introduced a piece of legislation to set up a task 
force for Alaska to bring all the different agencies that deal 
with healthcare and TRICARE as part of that--and DOD would be 
at that table--to try to figure out what's the best way to 
deliver services. I don't know if you've had any chance to see 
that legislation, have any comment on it. If you haven't seen 
it yet, I'd be anxious to get your comment for the record, at 
some point, if you think the task force will be of help for 
something very unique, I think, in Alaska. I don't know if you 
have any comment on that.
    Dr. Stanley. Yes, Senator. I haven't seen the legislation, 
but I've seen what I can best describe now are anecdotal pieces 
of information that tell me, in Alaska, we have some unique 
issues that deal with healthcare, as you've already described. 
So, I look forward to not only looking at the legislation, but 
working very closely with you to address some very significant 
issues.
    Senator Begich. Great, I would love to get your response 
for the record, I appreciate that.
    [The information referred to follows:]
    Since two-thirds of Alaskans use a Federal health care program, 
creating an interagency task force \1\ would be helpful in working 
together to assess and plan improvements to health care access for our 
Alaskan beneficiaries in a coordinated manner. TRICARE has tested 
alternate means of reimbursement and other Alaska-unique initiatives to 
improve access to care, and we are happy to discuss our findings with 
the task force and learn the successes other Federal agencies have 
experienced as they face the unique challenges Alaska presents.
---------------------------------------------------------------------------
    \1\ Note: The creation of the Interagency Access to Health Care in 
Alaska Task Force was mandated by section 5104 of H.R. 3590, the 
Patient Protection and Affordable Care Act (P.L. 111-148 (124 Stat. 
119)).
---------------------------------------------------------------------------
    Our TRICARE Regional Office-West team has already begun engaging 
other Federal partners in Alaska in anticipation of establishment of 
the interagency task force. We look forward to discussing a potential 
rate schedule that recognizes the uniqueness of the health care system 
in Alaska.
    Senator Begich. The other thing I want to say--and the 
folks from the Federal Government that have been working on the 
TRICARE, that have been managing it for us, have done a great 
job. But, I'm also very pleased to see that there is kind of a 
reexamination. How would a contractor work? Would there be a 
benefit? Is there some advantage, or maybe not advantage, 
depending on how it's all looked at? So, I am pleased with 
that, and that perspective, and I want you to know that. But, 
do you have, from your view, working with TRICARE contractors, 
what would you consider some of the advantages that you have 
seen in the value of delivering that healthcare? From a 
contractor delivering it, versus the way it's done in Alaska?
    Dr. Stanley. I'm afraid my answer would probably be 
personal, only because----
    Senator Begich. Personal is sometimes better.
    Dr. Stanley.--I'm a recipient----
    Senator Begich. Very good.
    Dr. Stanley.--of TRICARE benefits and the contractor, and 
from what I've benefited from. It's been pretty transparent to 
me, in being able to use a system that works very well. But, I 
don't think that's going to address some of the macro issues 
we're talking about. I'm also aware of the fact that there are 
some, already, challenges that exist with the TRICARE system as 
it's presently presented, with our contractors as we address 
contracting issues. So, I'm looking into those issues now, but 
I will tell you that there are some pluses--some significant 
pluses--but, there are also some--probably some negatives 
that--as we look at that. But, I don't know what all of those 
are right now.
    Senator Begich. As you develop that, will you share it with 
the committee?
    Dr. Stanley. Absolutely.
    [The information referred to follows:]
    TRICARE-eligible beneficiaries make up almost 14 percent of the 
overall population in Alaska. In recognition of the challenges placed 
on military treatment facilities, we are working with TriWest, the 
TRICARE West Regional Contractor, to develop a preferred provider 
listing which would aid in providing more access to civilian providers. 
Our regional contractors are experienced in the identification and 
credentialing of qualified providers who are willing to provide care to 
our beneficiaries. In the future, we plan to identify primary care 
managers in the civilian community in the Fairbanks area to support 
beneficiaries assigned to Fort Wainwright and Eielson Air Force Base.
    Senator Begich. At least my side would be very interested 
in that.
    Dr. Stanley. I'll look forward to it.
    Senator Begich. Then, again, as we examine the role of 
TRICARE, the contractor who delivers TRICARE, as a potential 
option or augmentation to what we do in Alaska, I'm going to be 
very interested as we move through this over the next several 
months.
    Two other things. One more on TRICARE, and that is, one of 
the situations--and I use Alaska, obviously, because I 
represent Alaska--one of the things we do, if you take 
Medicare, Medicaid, TRICARE, Indian Health Services, VA, we're 
always chasing the highest rate, the reimbursement rate. Now, 
the problem we have in Alaska is, we have very high rates, no 
matter what. I mean, it's just delivery of care, that cost of 
care. We don't have a teaching hospital, for example. We lack a 
lot of things that other communities can tap into and, 
therefore, keep their costs more competitive. Ours, we've been 
very high-cost in. But, we've also been very fortunate, 
because, under the rules, you've been able to--DOD and--or, the 
Federal Government has been able to utilize, under a 
demonstration ability, to have a higher-rate reimbursement in 
Alaska. It's only been in a demonstration capacity they've been 
able to do it. Obviously, we're very interested. I know there's 
a study going on, or at least a potential study, that will talk 
about how those rates are different; and if they are, how do we 
make them more permanent? Because, obviously, doctors--and I 
think some of the comments made here is getting those doctors 
to perform those services under TRICARE. The reimbursement rate 
is critical.
    In Anchorage, for example, which is the largest provider, 
or largest city--about 43 percent of the State's population--I 
think we're down to--on Medicare, for new Medicare patients, I 
think we're down to less than three or four docs that will 
accept them. That's it. So, we are the tip of the iceberg of 
what's going to happen in this country, very rapidly, because 
our cost differential is now getting to a point where primary-
care doctors can't afford to do it; and second, there are less 
and less of them being produced, in the sense of the system.
    So, I would like, if you have any comment on, one, the 
demonstration project. Again, if you're not familiar, I'd be 
very interested. Then, how we go about getting some permanency 
to this, because when docs see a pointer that's not permanent, 
then they just say, ``We're just done waiting, we have to move 
on to others,'' honestly, business has to continue for what 
they do. So, do you have any comment on that? The demonstration 
project, how do we move it to permanency, and is that a 
realistic viewpoint?
    Dr. Stanley. Well, thank you, Senator.
    Let me just say that I've been briefed on the project, in 
general.
    Senator Begich. Good.
    Dr. Stanley. My commitment is to work closely with you, not 
to study the problem to death----
    Senator Begich. Now you're talking. [Laughter.]
    Dr. Stanley.--but to move forward with a solution.
    Senator Begich. Good.
    Dr. Stanley. So, I'm aware of it. Now the issue is, okay, 
addressing this on the degree of permanency, which is why I put 
in place someone to help--with expertise, immediately--that's a 
physician--until we get somebody confirmed. I can't wait that 
long.
    Senator Begich. Right.
    Dr. Stanley. Which is the reason we're moving, kind of, 
like at flank speed, for lack of a better word----
    Senator Begich. Good.
    Dr. Stanley.--to put things in place and address these 
issues. There are other issues, too.
    Senator Begich. Absolutely. We would love to see 
confirmations happen very rapidly, but don't wait for that. 
Move forward on progress, and I appreciate your comments.
    I will end, Mr. Chairman, just on one--and this is more of 
a comment to the--as a former mayor, we worked on a project 
called SART, which is Sexual Assault Response Team, which is a 
combination public service, police--and they all are 
centralized into one location. They work with the community 
hospitals. It's good for investigation purposes. It has a kids' 
unit. It has a variety of things that--one of the pieces to 
this equation--and I haven't asked the--and I'm not asking for 
a response, at this point. I just want you to become aware, if 
you can, with what we're doing in Anchorage, which is the SART 
team.
    Why I say that, there's a very important component of how 
the person who has been the victim works through the process, 
and how that's handled, which is critical to your 
investigations, conviction rates, as well as to the care that's 
necessary. Then, if there are family members engaged in this, 
in the sense of a child who's also been assaulted, there's a 
whole process that is much different than the adult process.
    The SART program has been recognized around the Nation as a 
very cohesive and--like you, we saw rates go up, in the sense 
of reporting, but we also saw conviction rates go up, education 
capacity increasing--and young people, children especially, 
which is probably the hardest to deal with, with sexual assault 
or violence in a household or in a home.
    I'd just ask you--and we'd be happy to supply you some 
information--it's very unique and has been very, very 
successful. In Anchorage, we have two large military bases, 
literally as far as that door is from our facilities and our 
population. We have a great relationship with the military 
that--we know this program has had some impact.
    So, I'd just encourage you, as you work through this very 
troubling issue, to be very frank with you, but one we have to 
deal with, not only from a sexual assault on the officer, but 
also so many families are now part of the military family that, 
30 years ago, was not the case, but today, it's 70 or 75 
percent of the families. So the kids of this population, also, 
we need to make sure they're getting the services they need, 
and education they need. So, I would just encourage you to----
    Dr. Stanley. Will do, sir.
    Senator Begich. Okay, and we'll get you some information 
from staff.
    Dr. Stanley. Great. Thank you.
    Senator Webb. Thank you very much, Senator Begich.
    Senator Chambliss.
    Senator Chambliss. Thank you very much, Mr. Chairman.
    Gentlemen, first of all, let me just say that I want to 
thank all of you for what you do. You're charged with managing 
the most important aspect of our military, and that's the 
people and the programs that support them.
    I know much of what you do deals with numbers, but I also 
know you have an appreciation for what those numbers represent, 
in terms of the individual and his or her family, and what it 
means to our Nation.
    You all, along with our second panel, will help give us a 
sense of how we're doing, and how we can best continue to 
support the men and women of the Armed Forces and their 
families. So, I thank you for being here.
    Secretary Ginsberg, it's always great to see a Georgian on 
a panel like this--
    Mr. Ginsberg. It's my honor to be here. Thank you, Senator.
    Senator Chambliss.--so thanks for your service.
    Secretary Stanley, let me just ask you if you are familiar 
with the situation of the commissary at Dobbins and the one 
that we're transferring from Gillem to Dobbins. Does that ring 
a bell at all with you?
    Dr. Stanley. Vaguely. If you keep talking, Senator, I think 
I might pull something up, here. [Laughter.]
    Senator Chambliss. I'm not surprised that you don't, but--
    Dr. Stanley. Okay.
    Senator Chambliss.--basically, a BRAC decision was made to 
close Fort Gillem, in Atlanta, and that's the commissary that 
has served our retired population for decades. A decision was 
made, by your predecessor, to construct a new commissary at 
Dobbins that obviously will continue to operate, and it's going 
to serve our retired population. And it's in the hands of DeCA 
right now. That's why I'm not surprised you're not familiar 
with it. But, I wish you would familiarize yourself with it. At 
some point, you're going to have some significant input into 
it, and it may just be an issue of DeCA trying to find the 
funding for it. But, in any event, it is obviously a critical 
issue for the retired population, as well as for our active 
duty folks in the area.
    Dr. Stanley. Yes, sir.
    Senator Chambliss. Secretary Lamont, in light of the Fort 
Hood incident last November, can you elaborate on specific 
steps that the Army is taking to better recognize the presence 
of soldiers who may have become radicalized, as Major Hasan 
was?
    Mr. Lamont. I can tell you this. We are going through a 
very extensive internal review to look at all components of 
extremism that may have crept into society and, of course, may 
touch more and more into our Military Services, and what we can 
do to address those. We're aware of some apparent shortcomings 
in our officer evaluation forms and in our enlisted 
evaluations, and how some of the right questions may just not 
get asked. Some of the identifying risk factors may not just be 
exposed, as well.
    There is a Defense-wide Fort Hood review in progress right 
now. As I understand it--and perhaps Dr. Stanley knows more 
than I--that perhaps sometime this summer there will be a full 
report, as all of the Services, I believe, are involved in that 
report. But, certainly the Army is drilling down very deeply to 
see, what in the world did we miss here?
    Senator Chambliss. Let me just mention to all of you--I 
think Senator Graham may have mentioned this in his opening 
comments--the Guard and Reserve retirement initiative, early 
retirement initiative, that we have been successful at having 
put in place, that we're now looking to extend the retirement 
date back to service beginning on September 11, 2001. If there 
are any stumbling blocks out there, I would appreciate hearing 
from you now, if you're aware of anything. Obviously, funding 
is an issue. We're going to continue to work that until we, 
ultimately, have that retirement date, or that service date to 
qualify for retirement, go back to September 11, 2001, when so 
many of our men and women began being called up. Any comments 
any of you have, relative to any issues that are outstanding, 
that might be in our way on that issue?
    Dr. Stanley. Senator, I hadn't heard anything, I'm not sure 
if my colleagues have.
    Mr. Lamont. I've heard very little.
    Senator Chambliss. Okay.
    Mr. Lamont. But, as you say, the number one thing that we 
always look on something like that, of course, is the resource 
concerns----
    Senator Chambliss. Yes.
    Mr. Lamont.--as you are well aware.
    Senator Chambliss. Yes. Well, we'll continue to work that 
from our end.
    One other question. Secretary Lamont, I understand that the 
Vice Chief of Staff of the Army is currently hosting an online 
virtual conference regarding the future of the U.S. Army 
Officer Corps. The central premise behind this virtual 
conference is the recruitment and employment of talent within 
the Army. This sounds like a great idea, and a great way to 
look at the caliber of the young men and women who are--who 
make up our officer corps, from flag officers on down--could 
you give us any comment on that? Are any of the other Services 
doing something similar to this, or have plans for it?
    Mr. Lamont. Well, I understand the goal of what the Vice 
Chief is after, here. Our officer structure is not where we 
need it to be, given some of the demands that we've had over 
the past 8 or 9 years, and as we've moved to our modular 
rotational model in ARFORGEN, it has caused some fairly serious 
changes in how our officer structure is handled.
    I think there is an effort out there, particularly in the 
grades of major, for instance, or that--there are serious 
shortcomings there, in the numbers that we have available. I 
think these--through--what he is trying to do is look for any 
acceptable options and alternatives to how we identify our 
officer corps, and where we can move them within the structure 
that's available now, our other grade challenges, grade-plate 
challenges, that we have.
    Mr. Ginsberg. I'm not familiar with the program, but we 
work very closely with the Army. I'd love to reach out with my 
colleague, here, and learn more about it. Certainly provide 
some formal views to you.
    Senator Chambliss. Okay.
    Secretary Garcia, Secretary Stanley, anything going on in 
your branch, similar to this?
    Dr. Stanley. I'm not familiar with the program. I'm, in 
fact, learning about it as he's talking, Senator.
    Senator Chambliss. Yeah. Well, it does sound like a good 
idea, because everybody has the same issues, relative to the 
makeup of our officer corps. The Army and the Marine Corps, I 
guess, have a little bit different situation, just because 
you've been taxed more than anybody else, but it is an issue 
that sounds to me like it has a lot of merit to it, and I would 
encourage every branch to follow suit, there.
    Thank you, Mr. Chairman.
    Senator Webb. Thank you, Senator Chambliss.
    I'm going to ask a couple of service-specific questions, 
and then, Secretary Stanley, I'd like to ask you a series of 
questions.
    Let me say, I was a boxer for 8 years. You've been bobbing 
and weaving for an hour and 15 minutes, here. [Laughter.]
    So, I'm going to ask you a series of questions to sort of 
get us all looking forward, since you just came to this job and 
I just assumed the chairmanship. But, first, I want to put 
something in front of the Service Assistant Secretaries.
    There was an article in Military Times last week on 
prescription drug use in the military. I don't know if you all 
saw that article, or not. But, it pointed out that one in six 
servicemembers is on some form of psychiatric drug; 17 percent 
of the Active-Duty Force, and as much as 6 percent of the 
deployed troops are on antidepressants; and the use of 
psychiatric medications has increased about 76 percent since 
the start of these current wars.
    First, I would like to express my appreciation to Senator 
Cardin for having brought this issue to the attention of people 
here in the Senate. But, these statistics, quite frankly, are 
astounding to me. I'd like to know if--how familiar the three 
Assistant Secretaries are with this issue inside your 
departments, and what your thoughts are. Is this an indication 
of the overall fatigue of the force, with these constant 
deployments, or is it an indication of a different approach to 
medical treatment? Are we on top of this?
    I know that last year there was a provision in the Defense 
bill to require the Department to report on the administration 
and prescription of these drugs.
    But, Secretary Lamont, let me start with you. What are your 
thoughts on this?
    Mr. Lamont. Well, I'm not specifically aware of the article 
you're speaking about. I was TDY last week. However, I am well 
aware of the concerns we have with our pain management program. 
Those are the prescription drugs that we have found to have 
really crept into our system in much wider usage than we were 
ever aware of before.
    I'll also suggest to you, drugs like Oxycontin, I 
understand is used both in pain management and as an 
antidepressant. That's caused a number of concerns, because--
the fear that they may be prescribed by separate healthcare 
providers.
    What we have done to try to address the pain management 
side, what we found was, depending on where you went for 
treatment, there could be an entirely different model, if you 
would, of how pain is treated and how pain drugs are 
prescribed. There was no consistency there. So, with the 
various Services, we began a joint task force, this last fall, 
which is due to report, at any date now, on how we can come 
together with some kind of consistency in how we handle our 
pain management problem--pain management equals the drugs--and 
how we administer the proliferation of drugs in our military 
system.
    Our soldiers are coming back wounded, sore, injured, in 
need of rehab, and that's--perhaps the easy answer, early on, 
was pain-managed prescription. But, there are other means. We 
hope this joint task force report will come to grips with how 
we can provide some consistency, not just throughout the Army--
I mean, we found that every Army Medical Center was dealing 
with pain in altogether different ways, all individual to their 
situation. But, not an Army-wide program at all. I think, with 
this task force, we'll have the Services all together, and 
hopefully all in sync, of how we can address this growing 
problem.
    [Additional information supplied by Secretary Lamont 
follows:]
    Pain management has a significant behavioral health component, and 
drugs like Oxycontin and antidepressants may be simultaneously 
prescribed by different health care providers for better symptom 
management. While drugs like Oxycontin are used for pain management, 
what we have found is that pain has a strong behavioral health 
component requiring the addition of drugs like antidepressants for 
better symptom management. These prescription combinations are often 
managed by different health care providers. The issue of multiple-
prescribers exists in our health system and others. It concerns me that 
patients can receive different agents like narcotics and psychiatric 
drugs from different sources.
    Senator Webb. Secretary Garcia?
    Mr. Garcia. Senator, I'm familiar with the piece, and, as I 
understood it, it also posited, or suggested, that there were--
elicit drug use, to include in theater. We continue to drug 
test randomly across the fleet, forward-deployed and at home.
    On the prescription side, our Special Assistant for Health 
Affairs has initiated a working group, generated by the piece, 
to research this apparent spike, especially on the Marine side. 
That's where we are. All I can do is continue to keep you 
posted on the results.
    Senator Webb. Secretary Ginsberg.
    Mr. Ginsberg. Senator, I'm not familiar with the article, 
but I think you raise, obviously, a very important question 
about the extent of prescription drug use and whether this is 
an indicator of stress, or is this a new push to medicine? I'd 
very much like to get some concrete data from our surgeon-
general community, and would be more than happy to provide that 
to you.
    [The information referred to follows:]
    Thank you for the opportunity to address this concern regarding the 
health and well-being of our Air Force members and their use of 
psychotropic medications. Based upon this inquiry we made two distinct 
efforts to review psychopharmacology utilization data for our active 
duty servicemembers. The first data set we reviewed was provided by 
LCDR Joseph B. Lawrence, USN, MSC as the Deputy Director, Department of 
Defense (DOD) Pharmacoeconomic Center COR, DOD Pharmacy Operation 
Center. LCDR Lawrence's data pull from the Military Health System (MHS) 
Pharmacy Data Transaction Service (PDTS) demonstrated that in the U.S. 
Air Force active duty psychotropic drug prescriptions increased from 
58,102 annually in 2005 to 113,010 annually in 2009. The most notable 
increases related to use of stimulant and sleep medications. Stimulants 
prescriptions increased from 6,886 in 2005 to 11,522 in 2009. The 
number of prescriptions for sleep medication went from 33,175 in 2005 
to 64,166 in 2009. These two classes of psychotropic medications 
accounted for approximately 65 percent of the total prescription 
increase over this time period. While prescription sleep medications do 
carry a low risk of abuse, they are also highly effective and 
beneficial when used appropriately for short-term use to address the 
maintenance of health sleep patterns with international travel and 
fluctuating operational work schedules.
    The second data pull was provided by Air Force Medical Operations 
Agency, Michael Squires. Mr. Squires extracted data from the PDTS table 
in the M2 which resulted in all Air Force active duty servicemembers 
who had received a psychotropic prescription (including 
antidepressants) between October 2009 and March 2010. The number of 
unique Air Force servicemembers who had one or more prescriptions for 
any psychotropic medication, including controlled prescription pain 
medications during this 6 month period was 81,253 or 22 percent of the 
Active Force. When controlled prescription pain medications are 
removed, the number of unique servicemembers on a psychotropic 
medication changes to 48, 233. This reflects a calculated user 
prevalence rate during a 6 month period of 1 in 8, or 13 percent , of 
the Active-Duty Force for psychotropic medications. This figure is a 6-
month period prevalence; point prevalence on a specific day would be 
lower. Additionally, this data pull illustrated a utilization rate over 
a 6 month period of controlled pain medications as 51 for every 400 
servicemembers (12.75 percent), an antidepressant utilization rate of 
23 for every 500 servicemembers (4.6 percent), a sleep medication 
utilization rate of approximately 19 of every 421 servicemembers (4.4 
percent), a stimulant utilization rate of approximately 4 out of every 
425 servicemembers (0.94 percent), and an antipsychotic utilization 
rate of approximately 2 for every 1,000 servicemembers (0.2 percent).
    Senator Webb. I'd just say as an observation, one, we do 
have a really stressed, young force, because of these 
deployments. This is an indicator I think we really should be 
tracking very closely, with repeated deployments and these 
sorts of things.
    The other is, just purely as an observation, from looking 
at where they are deployed and the restriction of the use of 
alcohol, I would say it's--having been a journalist in 
Afghanistan before I started doing this, it is always rather 
ironic to me that, for reasons of comity with these other 
countries, we didn't allow our troops to use alcohol, but, I'll 
tell you, I was in a lot of villages in Afghanistan where 
everybody had their marijuana patch and their opium patch.
    The relief of stress on individuals is handled differently 
in different cultures, and that may be something you want to 
look into. It's a very troubling statistic, to me. I hope we 
can look at it, not simply medically, but in these other ways, 
as well.
    Secretary Ginsberg, can you give this subcommittee, some 
insight on this decision to provide aviation pay to nonrated 
pilots in the Remotely-Piloted Aircraft Program, what the 
justification is and--how does that fit into traditional 
definitions of flight pay, and those sorts of things?
    Mr. Ginsberg. Absolutely. Senator, the Air Force is meeting 
a very high demand to provide remotely-piloted aircraft--combat 
air patrols (CAPs) to our combatant command commander in 
Afghanistan and Iraq. We are currently providing 41 CAPs to the 
theater. We're working, by the end of fiscal year 2013, to 
provide 65 CAPs. What we're trying to do is develop a career 
field, where our airmen, who are providing this critical 
support to our forces on the ground, our brothers in the Marine 
Corps and the Army, as well as many are Air Force officers and 
enlisted on the ground, providing them this direct support. We 
want to make sure they can grow and develop.
    The incentive pays are a critical part of maintaining a 
robust pipeline of airmen who are operating these systems.
    Senator Webb. Under what category are they paid now?
    Mr. Ginsberg. I'm sorry?
    Senator Webb. Under what category are they being paid?
    Mr. Ginsberg. Well, this is an OSD-approved--under a--of 
course, the broad authority that Congress provides, under the--
it's the--it's aviation continuation-paylike pay, and it----
    Senator Webb. It's not called ``flight pay''?
    Mr. Ginsberg. It's not called ``flight pay,'' but it's a--
it's a different authority that we're providing under. This 
about just making--this--these officers and enlisted members 
are providing absolutely critical direct support to our forces 
on the ground, and we are putting tremendous stresses on them. 
Our crew ratios are not sufficient, at this point. They have a 
hard time getting leave, regular leave. We need to provide 
them--we're not giving them the opportunity to move to new 
assignments as flexibly as other career areas. We need to 
provide them pay and bonuses that will help make sure that this 
career field remains attractive.
    I went to Creech early in my tenure, to Creech Airfield, 
where we have a lot of our operators. It is absolutely 
astounding, what those airmen are doing to provide day-in and 
day-out support, truly lifesaving work.
    Senator Webb. Okay, thank you.
    Mr. Ginsberg. So, again, it's about making sure that they 
get the right pay--
    Senator Webb. I think that----
    Mr. Ginsberg.--and benefits that they deserve.
    Senator Webb. Secretary Stanley, I believe that this is a 
good time, with your coming in, to get a strong analytical look 
at how all of the special incentive pays, bonus pays, 
reenlistment pays, enlistment--how all of these fit together in 
a way that is beneficial to the people who are serving, and 
also to the efficiency of our programs.
    What I would like to do in a--rather than taking a great 
deal of time this morning, what I would like to do is to work 
with you and your staff to develop a matrix, so that we can 
fully understand what we're doing in these programs. I believe 
that the best way to address issues is, first, to assemble, 
clearly, the facts. So we are going to come to you with some 
questions about the incentive pays, the special pays, the 
reenlistment bonuses, the whole panorama, to get an 
understanding of how they are used, how many people are used, 
what the criteria are, how many of these are directed by 
Congress, how many of them are subject to the discretion of the 
implementers--your staff and the other----
    Dr. Stanley. Yes.
    Senator Webb.--Service departments--so that we can have a 
clear picture, as we move forward in these programs. I'm not 
sure of the last time that that's been done. I don't want to go 
through every one of these and ask for your justifications, but 
we're going to be having some questions. I don't want these to 
be considered questions for the record that are going to be 
answered----
    Dr. Stanley. Yes, sir.
    Senator Webb.--a month or 2 months. I really want to work 
on this so we can aggressively address it.
    There's a couple of other areas that I would like to get 
some feedback from you on. One of them, I'm sure you're 
familiar with, this mentor program that there were numerous 
articles, particularly USA Today, about where retired flag 
officers are getting up to $2,600 a day to come in and 
basically give advice. You know the situation, you're a retired 
flag. A retired four-star can be making in excess of $200,000 a 
year and then be working for a defense company, and then come 
in and be getting this sort of pay to give advice that, quite 
frankly, traditionally, has been a part of having worn the 
uniform, a sort of a continuing stewardship.
    So, there's a lot of questions, here in Congress, about how 
that reflects upon the dignity of Service, quite frankly. We 
want to get to the bottom of how that program is run.
    Then there's another area which relates to military 
fellowships, to think tanks. I would like to get some data on 
this with respect to the numbers of people who are involved in 
this and how taxpayer dollars are being spent, beyond regular 
military compensation, on areas that are called ``tuition'' for 
Active Duty military officers to go over and work on a think 
tank and not only be paid by the taxpayers for their regular 
military compensation, but actually being paid tens of 
thousands of dollars into these think tanks for this office 
space, et cetera. I don't think I have a full understanding of 
how this works, and we'd like to get specific data from you. 
Each Service may be doing it differently, but we'd like to 
assemble that data.
    With that, I thank all of you for your testimony, and look 
forward to working with you on a very close basis. Our door is 
open for any issues that you want to bring to the subcommittee, 
or to my office, personally.
    Thank you very much.
    Dr. Stanley. I appreciate that.
    Mr. Lamont. Thank you.
    Mr. Garcia. Thank you very much. [Pause.]
    Senator Webb. Our second panel will have members of the 
military coalition, a consortium of nationally prominent 
uniformed service and veteran organizations: Master Chief 
(Retired) Joseph Barnes, National Executive Director of the 
Fleet Reserve Association; Ms. Kathleen Moakler is the 
Government Relations Director of the National Military Family 
Association; Master Sergeant Michael Cline (Retired) is the 
Executive Director of the Enlisted Association of the National 
Guard of the United States; Ms. Deirdre Parke Holleman is the 
Executive Director of The Retired Enlisted Association; and 
Colonel Steven Strobridge (Retired) is the Director of 
Government Relations for the Military Officers Association of 
America.
    I mentioned earlier that we had two statements that would 
be put in the record. Probably more appropriate, they would be 
put in at this point rather than at the beginning of the 
hearing.
    [The joint prepared statement of the Reserve Officers 
Association and Reserve Enlisted Association follows:]
  Joint Prepared Statement by the Reserve Officers Association of the 
               United States Reserve Enlisted Association
                              introduction
    On behalf of our members, the Reserve Officers Association (ROA) 
and the Reserve Enlisted Association (REA) thank the committee for the 
opportunity to submit testimony on military personnel issues. ROA and 
REA applaud the ongoing efforts by Congress to address readiness, 
recruiting and retention as evidenced by incentives in several 
provisions included in the National Defense Authorization Act (NDAA) 
for Fiscal Year 2010.
                           executive summary
    The Reserve Officers Association Calendar Year 2010 Legislative 
Priorities are:
         Reset the whole force to include fully funding 
        equipment and training for the National Guard and Reserves.
         Assure that the Reserve and National Guard continue in 
        a key national defense role, both at home and abroad. Support 
        citizen warriors, families and survivors.
         Provide adequate resources and authorities to support 
        the current recruiting and retention requirements of the 
        Reserves and National Guard.
         Support warriors, families, and survivors.
    Issues supported by the Reserve Officers and Reserve Enlisted 
Associations are to:
Changes to retention policies:
         Permit service beyond the current Reserve Officers 
        Personnel Management Act (ROPMA) limitations.
         Support incentives for affiliation, reenlistment 
        retention and continuation in the Reserve component.
Education:
         Increase MGIB-Selected Reserve (MGIB-SR) to 47 percent 
        of MGIB-Active.
         Include 4-year reenlistment contracts to qualify for 
        MGIB-SR.
Mobilization:
         Provide differential pay for deployed Federal 
        employees permanently.
         Permit reservists the option of accumulating leave 
        between active duty orders, as well as selling it back.
Pay and Compensation:
         Reimburse a Reserve component member for expenses 
        incurred in connection with round-trip travel in excess of 100 
        miles to an inactive training location, including mileage 
        traveled, lodging and subsistence.
         Obtain professional pay for Reserve component medical 
        professionals, consistent with the Active component.
         Eliminate the 1l/30th rule for Aviation Career 
        Incentive Pay. Career Enlisted Flyers Incentive Pay. Diving 
        Special Duty Pay. and Hazardous Duty Incentive Pay.
         Simplify the Reserve duty order system without 
        compromising drill compensation.
Spouse Support:
         Expand eligibility of surviving spouses to receive 
        Survivor Benefit Plan (SBP)-Dependency Indemnity Clause (DIC) 
        payments with no offset.
Health Care:
         Improve continuity of health care for all drilling 
        reservists and their families by:
                 Monitoring the implementation of the 
                Department of Defense (DOD) paying a stipend toward 
                employers health care for dependents.
                 Allowing gray-area retirees to buy-in to 
                TRICARE by mid-2010.
                 Providing Continuing Health Benefit Plan to 
                traditional drilling reservists who are beneficiaries 
                of TRICARE Reserve Select but are separated from the 
                Selected Reserve to provide COBRA protections,
                 Permitting active members in the Individual 
                Ready Reserve (IRR) who qualify for a 20-year 
                retirement to buy-into TRICARE.
                 Allowing demobilized retirees and reservists 
                involuntarily returning to IRR to qualify for 
                subsidized TRS coverage,
                 Providing TRS coverage to mobilization ready 
                IRR members; levels of subsidy would vary for different 
                levels of readiness.
                 Improve post-deployment medical and mental 
                health evaluations of returning Reserve component 
                members.
         Fund restorative dental care prior to mobilization.
         Extend military coverage for restorative dental care 
        following deployment to 90 days.
         Evaluate the Post-Deployment Medical Evaluation 
        process.
         Encourage a discussion on health care costs between 
        Congress, DOD, and nonprofits.
         Protect military and veteran's health care from 
        inclusion in national health legislation.
Voting:
         Ensure that every deployed servicemember has an 
        opportunity to vote by:
                 Working with the Federal Voting Assistance 
                Program
                 Supporting electronic voting
         Ensure that every military absentee ballot is counted.
    Only issues needing additional explanation are included below. 
Self-explanatory or issues covered by other testimony will not be 
elaborated upon, but ROA and REA can provide further information if 
requested.
                          readiness discussion
Operational versus strategic missions for the Reserve component:
    The Reserve Forces are no longer just a part-time strategic force 
but are an integral contributor to our Nation's operational ability to 
defend our soil, assist other countries in maintaining global peace, 
and fight in overseas contingency operations.
    National security demands both a Strategic and an Operational 
Reserve. The Operational Reserve requires a more significant investment 
of training and equipment resources, and places greater demands on its 
personnel as compared to the Strategic Reserve. Those serving in 
Operational Reserve units must be fully aware of the commitment 
required to maintain the expected level of readiness. A similar 
awareness and commitment is necessary for those responsible for 
providing resources to the Operational Reserve.
    Planners also must recognize that few individuals can remain in the 
operational Reserve for an entire career. There will be times when 
family, education, civilian career, and the other demands competing for 
their time and talents take priority. Such an approach requires the 
ability to move freely and without penalty between the operational and 
strategic elements of the Reserve component as a continuum of service.
    Each Service has its own force generation models and the Services 
organize, train, and equip their Reserve components to a prescribed 
level of readiness prior to mobilization to limit post-mobilization 
training and to maximize operational deployment time. ROA and REA urge 
Congress to continue to support and fund each Service's authority to 
manage the readiness of its own Reserve Forces as one model does not 
fit all.
    Congress can play an important role by requiring reports from 
Service leaders to ensure they have a plan for systematic augmentation, 
that the plan is adequately resourced, and that Reserve training and 
equipment will permit interoperability with the units they augment and 
reinforce. In an era of constrained budgets, a capable and sustainable 
Reserve and National Guard is a cost-effective element of national 
security.
Junior Officer and Enlisted Drain:
    As an initial obligated period draws to the end, many junior 
officers and enlisted choose to leave, creating a critical shortage of 
young people in the leadership conduit. This challenge has yet to be 
solved. ROA and the National Guard Education Foundation published a 
report suggesting solutions to the problem. Copies can be provided to 
the committee, or be found at http://www.roa.org/JO-shortage.
End Strength and Preparedness:
    It is noted that the only active service component to suffer cuts 
in the fiscal year 2011 proposed budget was the Coast Guard which will 
have a reduction of 1,100 personnel.
    The other Active components appear to maintain their end strengths 
with inclusion of temporary increases for the Army and the Navy. It 
should be remembered that individuals cannot be brought quickly on to 
active duly on a temporary basis, but it is an accumulation of 
experience and training that is acquired over years that becomes an 
asset for the military. Before cuts to the U.S. Coast Guard are made, 
ROA and REA hope that Congress requests a report from the U.S. Coast 
Guard, Department of Homeland Security, on the effect in the short and 
long term.
    Traditionally, it has been the Reserve component that has provided 
the temporary surge to fill-in the active duty numbers. The end 
strengths included in the President's budget appear to maintain current 
numbers. ROA and REA are concerned that the ongoing cuts to the Navy's 
Reserve will continue and this is a trend that needs to be reversed. A 
new manpower study needs to be done and published by the Navy Reserve 
to calculate the actual manning level: this study should be driven by 
readiness and not budgetary requirements.
    With pending withdrawals from Iraq and Afghanistan, there is 
already talk within the beltway about future cuts to military end 
strength to help offset rising deficits. Many blame the global war on 
terrorism for our current national debt, but part of high cost of the 
military is unpreparedness, and the bills borne by trying to create a 
force to match the need.
    Following World War I, Lieutenant General James Guthrie Harbord, 
USA, General John J. Pershing's chief of staff, was quoted in a 1922 
New York Times as saying. ``The size of our debt, incurred through 
unpreparedness, brings a demand for economy, and we continue 
unprepared. Thus unpreparedness brings the debt, and the debt continues 
unpreparedness.''
    Without external threats, the USA has traditionally reduced the 
size of its Armed Forces. But since the 1990s the Pentagon has 
recommended proportional cuts be taken in the Reserve component when 
taken in the Active Force. This reasoning fails in many ways. It 
results in a hollowing out of the force and preparedness, undermines 
morale, and undercuts retention. national security is put at risk. 
There is a need to maintain a national position of readiness, and the 
Reserve component is a cost-effective solution of being prepared. 
Should cuts be taken in the Active component, the Reserve component 
should grow in size to allow a place for readiness capability.
                          proposed legislation
Retirement
    ROA and REA again thank the committee for passing the early 
retirement benefit in the National Defense Authorization Act for Fiscal 
Year 2008, as a good first step toward changing the retirement 
compensation for serving Guard and Reserve members, but. . .
    Guard and Reserve members feel that with the change in the roles 
and missions of the Reserve component, their contracts have changed. 
Informal surveys keep indicating that earlier retirement remains a top 
issue asked for by guardsmen and reservists. They ask why so many Guard 
and Reserve members who have served in the global war on terrorism were 
excluded from the new benefit; they also ask why even earlier duty is 
not included: and if faced with the same risks as active duty, why 
there is a 20 year difference in access to retirement pay?
    1. ``ROA and REA'' endorse S.831. National Guard and Reserve 
Retired Pay Equity Act of 2009, which is a corrective measure to the 
National Defense Authorization Act for Fiscal Year 2008 including those 
Guard and Reserve members who have been mobilized since September 11, 
2001. Over 600,000 were unfairly excluded. We realize the expense of 
this corrective measure scored by CBO is $2.1 billion over 10 years, 
but hope that offset dollars can be found.
    2. ROA and REA don't view this congressional solution as the final 
retirement plan. The Commission on the National Guard and Reserve 
recommends that Congress should amend laws to place the Active and 
Reserve components into the same retirement system. Secretary of 
Defense Robert Gates refers to the Tenth Quadrennial Review of Military 
Compensation's comprehensive review of the military retirement systems 
for suggested reform. The latter report suggests a retirement pay equal 
to 2.5 percent of basic pay multiplied by the number of years of 
service.
    ROA and REA agree that a retirement plan, at least for the Reserve 
component, should be based on accruement of active and inactive duty. 
Early retirement should not be based on the type of service, but on the 
aggregate of duty. It shouldn't matter if a member's contributions were 
paid or non-paid; inactive duty, active duty for training, special 
works or for mobilization. Under a continuum of service, this approach 
would provide both the Active or Reserve component members with an 
element of personal control to determine when they retire and will 
encourage increased frequency of service beyond 20 years within the 
Reserve.
    3. An additional problem arises for O-4 officers who, after a break 
in service, have returned to the Reserve component. After being 
encouraged to return a number of officers find they are not eligible 
for nonregular retirement. When reaching 20 years of commissioned 
service they find they may have only 15 good Federal years. Current 
policy allows these individuals to have only 24 years of commissioned 
time to earn 20 good Federal years.
    4. With an ongoing shortage of mid-grade officers (O-2 to O-3), 
Congress should reexamine the DOPMA and ROPMA laws to permit O-3s 
without prior enlisted service to be able to retire at 20 years of 
service. Many of badly needed skills that the Services would like to 
retain, yet must be discharged if passed over for promotion to often.
    ROA urges Congress to make changes in U.S. Code to allow O-3s and 
O-4s with 14 to 15 good Federal years to remain on Active Duty or in 
the Reserve until they qualify for regular or non-regular retirement.
Education
    1. Montgomery ``GI'' Bill-Selected Reserve (MGJB-SR): To assist in 
recruiting efforts for the Marine Corps Reserve and the other uniformed 
services, ROA and REA urge Congress to reduce the obligation period to 
qualify for MGJB-SR (Section 1606) from 6 years in the Selected Reserve 
to 4 years in the Selected Reserve plus 4 years in the Individual Ready 
Reserve, thereby remaining a mobilization asset for 8 years.
    2. Extending MGIB-SR eligibility beyond Selected Reserve Status: 
Because of funding constraints, no Reserve component member will be 
guaranteed a full career without some period in a non-pay status. BRAC 
realignments are also restructuring the RC force and reducing available 
paid billets. Whether attached to a volunteer unit or as an individual 
mobilization augmentee, this status represents periods of drilling 
without pay. MGIB-SR eligibility should extend for 10 years beyond 
separation or transfer from a paid billet.
Leadership
    Both the Army and Air Force Reserve Chiefs may only be selected 
from general officers from that component's reserve, yet the Navy and 
the Marine Corps can select its Reserve leadership from either Active 
or Reserve flag officers. (U.S.C., title 10. section 3038 states that 
``The President, by and with the advice and consent of the Senate, 
shall appoint the Chief of Army Reserve from general officers of the 
Army Reserve . . .'' and section 8038 uses similar language for the 
appointment of the Chief of the Air Force Reserve, while U.S.C., title 
10, section 5143, only requires the President to appoint the Chief of 
Navy Reserve from flag officers of the Navy, and section 5144 only 
requires the President to appoint the Commander. Marine Forces Reserve, 
from general officers of the Marine Corps.) The Reserve Chief of a 
Service's Reserve should have an understanding of both the citizen 
warriors who are reporting to him or her, and the system through which 
the report. ROA urges Congress to change sections 5143 and 5144 of 
U.S.C., title 10 to only permit appointments from the Service's Reserve 
component.
Military Voting
    ROA thanks Congress for the improvements made to absentee voting in 
the fiscal year 2010 Defense Authorization. Military personnel, 
overseas citizens, and their families residing outside their election 
districts deserve every reasonable opportunity to participate in the 
electoral process. Yet, studies by Congressional Research Service show 
that 25 percent of military member and family votes were not counted in 
the 2008 election.
    ROA and REA urge Congress to direct the Government Accountability 
Office to report further on the effectiveness of absentee voting 
assistance to Military and Overseas Citizens for the 2010 General 
Election and determine how Federal Voting Assistance Program's efforts 
to facilitate absentee voting by military personnel and overseas 
citizens differed between the 2008 and 2010 national elections. ROA and 
REA also hopes Congress encourages the Secretary of Defense, in 
conjunction with States and local jurisdictions, to gather and publish 
national data about the 2010 election by voting jurisdiction on 
disqualified military and overseas absentee ballots and reasons for 
disqualification.
                         health care discussion
    1. ROA and REA hold concerns over the implementation of TRICARE for 
gray area retirees. Rear Admiral Christine S. Hunter has shared that 
enrollment could be as early as July or as late as November 2010, and 
that it might be regionally rolled out. DOD wants to treat Reserve gray 
area retirees as a separate health care risk group which will likely 
drive up the cost of health care premiums as well. ROA and REA hope 
that the committee will ask hard questions at a future hearing about 
the process, as individuals in the health care industry question the 
length of time and the approach being taken.
    2. Sustaining Reserve Health care. ROA and REA was disappointed to 
learn that Continued Health Care Benefit Plan is only allowed to 
members of the Selected Reserve if they have had a tour of active duty 
within the previous 18 months by DOD. This is denying COBRA protections 
for traditional reservists who haven't been activated, and even 
overlooks the Secretary of Defense's directive to mobilize National 
Guard and Reserve members 1 year out of 6, which would be a dwell time 
of 60 months between call-ups. There is little cost as the beneficiary 
pays a premium of 102 percent of TRICARE Cost.
    A continuity of health care is needed if a continuum of service is 
to be seriously considered. Just as an Active Force needs to be 
provided military health, the Reserve component needs to have a 
seamless health protection during different duty statuses. As even 
discharged active servicemembers have the benefit of the Continuing 
Health Care Benefit Plan, those Guard and Reserve members who have 
signed up for TRICARE Reserve Select need to have protections when they 
leave the Selected Reserve.
    ROA and REA encourage Congress to work with the Pentagon to open up 
Reserve component member access to the Continued Health Care Benefit 
Plan to any TRICARE Reserve Select beneficiary separating from the 
Selected Reserve under conditions that are not punitive in nature.
    3. Employer health care option: The ROA and REA continues to 
support an option for individual reservists where DOD pays a stipend to 
employers of deployed Guard and Reserve members to continue employer 
health care during deployment. Because TRICARE Prime or Standard is not 
available in all regions that are some distance from military bases it 
is an advantage to provide a continuity of health care by continuing an 
employer's health plan for the family members. This stipend would be 
equal to DOD's contribution to Active Duty TRICARE.
    4. Dental Readiness. Currently, dental readiness has one of the 
largest impacts on mobilization. The action by Congress in the NDAA for 
Fiscal Year 2010 was a good step forward, but still more needs to be 
done.
    In the first quarter of fiscal year 2009, the Army Reserve was 48.8 
percent dental class 1 or 2 Navy Reserve was 92.8 percent, Air Force 
Reserve 86.6 percent, Marine Corps Reserve 77 percent. Air Guard 91 
percent Army Guard 48.2 percent, and Coast Guard Reserve 83.2 percent.
    While there has been slight improvement since fiscal year 2007, the 
Army Reserve and Marine Corps Reserve have actually decreased their 
dental readiness which is due to large numbers of Class 4 
servicemembers. Regardless none of the Services have met the 95 percent 
dental readiness goal.
    The Services require a minimum of Class 2 (where treatment is 
needed, however no dental emergency is likely within 6 months) for 
deployment. Current policy relies on voluntary dental care by the Guard 
or Reserve member. Once alerted, dental treatment can be done by the 
military, but often times there isn't adequate time for proper 
restorative remedy.
    ROA and REA continues to suggest that the Services are responsible 
to restore a demobilized Guard or Reserve member to a Class 2 status to 
ensure the member maintains deployment eligibility.
    Because there are inadequate dental assets at Military Treatment 
Facilities for active members, active families, and reservists, ROA and 
REA further recommend that dental restoration be included as part of 
the 6 months Transitional Assistance Management Program (TAMP) period 
following demobilization. DOD should cover full costs for restoration, 
but it could be tied into the TRICARE Dental program for cost and 
quality assurance.
    5. TRICARE Health costs: ROA and REA applaud the efforts by 
Congress to address the issue of increasing Department of Defense 
health care costs and its interest to initiate dialogue and work with 
both the Pentagon and the beneficiary associations to find the best 
solution. The time has come to examine the cost of TRICARE and the 
level of beneficiary contribution.
    ROA and REA are committed to our membership to sustain this health 
care benefit. We fear that we will be unable to continue to sustain 
prohibitions on health care fees into the future. We need to work 
together to find a fair and equitable solution that protects our 
beneficiaries and ensures the financial viability of the military 
health care system for the future. Some associations seek to continue 
to a freeze on premium fees permanently; others are joining ROA and REA 
by admitting that some increases are necessary.
    ROA and REA endorse a tiered enrollment fee and congratulate the 
Task Force for developing one based on annual income. As most Guard and 
Reserve members retire at 25 to 30 percent of active duty retirement 
pay, it makes sense that G-R enrollment fees should be lower. ROA and 
REA do suggest that if enrollment fees are based on income that it be 
based just on military retirement income of Active and Reserve 
retirees.
    The ROA and REA do not endorse annual enrollment fees for 
individuals who don't use the TRICARE Standard plan. Eligibility should 
remain universal; a one-time administrative enrollment fee might be 
implemented with first use of the program.
    If TRICARE Standard enrollment fees are increased, Congress needs 
to review the recommended deductibles and current copayment levels. 
While TRICARE Prime is in the top 90 percent for cost generosity. 
TRICARE Standard is at a lower level of the spectrum of plan 
generosity.
    6. National Health Care Plan. ROA and REA are concerned that the 
national health care legislation does not include specific language 
that preserves military and veteran health care programs under separate 
authorities. While there have been verbal guarantees from congressional 
members and the President, getting the pledge in writing would curtail 
concerns.
                               conclusion
    ROA and REA reiterate our profound gratitude for the progress 
achieved by this committee by providing parity on pay and compensation 
between the Active and Reserve components, with the subcommittee also 
understanding the difference in service between the two components.
    ROA and REA look forward to working with the personnel subcommittee 
where we can present solutions to these and other issues, and offers 
our support in anyway.
    Senator Webb. Welcome, to all of you.
    I suppose we can start with Mr. Barnes and move to Mr. 
Strobridge.
    Welcome, sir.
    STATEMENT OF MASTER CHIEF JOSEPH L. BARNES, USN (RET.), 
    NATIONAL EXECUTIVE DIRECTOR, FLEET RESERVSE ASSOCIATION
    Mr. Barnes. Good morning, Mr. Chairman, Senator Graham, 
distinguished members of the subcommittee. Thank you for the 
opportunity to appear before you today.
    The Military Coalition's statement reflects the consensus 
of coalition organizations on a broad range of important 
personnel issues and extensive work by eight legislative 
committees, each comprised of representatives from the 
coalition's 34 military and veterans organizations.
    The five of us will address key issues important to the 
Active, Guard, and Reserve, retiree, and survivor communities, 
and military families, and will conclude healthcare concerns 
which impact everyone within these groups, including our 
magnificent wounded warriors.
    Before proceeding, I wish to thank you and the entire 
subcommittee and your outstanding staff for effective 
leadership and strong support of essential pay and benefit 
program enhancements, and particularly for programs to 
adequately care for our wounded warriors and their families.
    Adequate service end strengths are absolutely essential to 
success in Iraq and Afghanistan, and to sustaining other 
operations vital to our national security. The coalition 
strongly supports proposed Army and Navy end strength levels in 
2011. A recent Navy Times story titled ``Sailor Shortage'' 
cites too much work to do in the Navy and not enough people to 
do it, and lists the associated effects, which include little 
time for rest, fewer people to maintain and repair shipboard 
equipment, crew members with valuable skills being pulled for 
other jobs and not replaced, and lower material ship readiness.
    As referenced by the first panel, the strain of repeated 
deployments continues, and is also related to the adequacy of 
end strengths. Now we're tracking disturbing indicators of the 
effects, which include increasing drug and alcohol use, more 
mental healthcare appointments, alarming suicide rates, plus 
more military divorces. The unrelenting stress on 
servicemembers and their families is a serious and continuing 
concern that can lead to very serious morale, readiness, and 
retention challenges.
    Pay comparability remains a top priority, and the Coalition 
strongly supports the authorization of a 1.9-percent 2011 
Active Duty pay hike. We appreciate your past support for 
higher-than-ECI pay increases, which have collectively reduced 
the pay gap to 2.4 percent.
    Adequate funding for military recruiting efforts is 
important. During high retention periods, it's natural to look 
at reducing these accounts. However, sufficient resources are 
essential to ensuring continuing recruiting success. It's 
noteworthy that nearly three-quarters of the optimum 
recruiting-aged young people do not qualify for Military 
Service, and the Services must maximize efforts through our 
military recruiters to recruit optimum-quality personnel across 
the Armed Services.
    The coalition strongly supports the authorization to ship 
two personal vehicles in conjunction with PCS moves, along with 
long overdue increases in PCS mileage rates. We appreciate the 
distinguished Chairman's leadership on the enactment and 
implementation of the post-September 11 GI Bill and DOD 
policies on transferability options for personnel nearing 
retirement. However, technical corrections are still needed to 
ensure eligibility for members of the U.S. Public Health 
Service and NOAA Corps.
    Adequate programs, facilities, and support services for 
personnel impacted by BRAC actions, rebasing, and global 
repositioning is very important, particularly during wartime, 
which alone, results in significant stress on servicemembers 
and their families. The coalition notes with concern the 19-
plus-percent reductions in military construction and family 
housing accounts in the proposed 2011 budget request.
    Finally, the coalition remains committed to adequate 
funding to ensure access to the commissary benefit for all 
beneficiaries. This is an essential benefit, and the Defense 
Commissary Agency is to be commended for highly cost-effective 
management of 255 stores in 13 countries.
    Thank you again for the opportunity to present our 
recommendations.
    [The prepared statement of Mr. Barnes follows:]
    Prepared Statement by Master Chief Joseph L. Barnes, USN (Ret.)
                     the fleet reserve association
    The Fleet Reserve Association (FRA) is the oldest and largest 
enlisted organization serving active duty, Reserves, retired and 
veterans of the Navy, Marine Corps, and Coast Guard. It is 
Congressionally Chartered, recognized by the Department of Veterans 
Affairs (VA) as an accrediting Veteran Service Organization for claim 
representation and entrusted to serve all veterans who seek its help. 
In 2007, FRA was selected for full membership on the National Veterans' 
Day Committee.
    FRA was established in 1924 and its name is derived from the Navy's 
program for personnel transferring to the Fleet Reserve or Fleet Marine 
Corps Reserve after 20 or more years of active duty, but less than 30 
years for retirement purposes. During the required period of service in 
the Fleet Reserve, assigned personnel earn retainer pay and are subject 
to recall by the Secretary of the Navy.
    FRA's mission is to act as the premier ``watch dog'' organization 
in maintaining and improving the quality of life for Sea Service 
personnel and their families. FRA is a leading advocate on Capitol Hill 
for enlisted Active Duty, Reserve, retired and veterans of the Sea 
Services. The Association also sponsors a National Americanism Essay 
Program and other recognition and relief programs. In addition, the 
newly established FRA Education Foundation oversees the Association's 
scholarship program that presents awards totaling nearly $100,000 to 
deserving students each year.
    The Association is also a founding member of The Military Coalition 
(TMC), a 34-member consortium of military and veteran's organizations. 
FRA hosts most TMC meetings and members of its staff serve in a number 
of TMC leadership roles.
    FRA celebrated 85 years of service in November 2009. For over eight 
decades, dedication to its members has resulted in legislation 
enhancing quality of life programs for Sea Services personnel, other 
members of the uniformed services plus their families and survivors, 
while protecting their rights and privileges. CHAMPUS, now TRICARE, was 
an initiative of FRA, as was the Uniformed Services Survivor Benefit 
Plan. More recently, FRA led the way in reforming the REDUX Retirement 
Plan, obtaining targeted pay increases for mid-level enlisted 
personnel, and sea pay for junior enlisted sailors. FRA also played a 
leading role in advocating recently enacted predatory lending 
protections and absentee voting reform for servicemembers and their 
dependents.
    FRA's motto is: ``Loyalty, Protection, and Service.''
             certification of non-receipt of federal funds
    Pursuant to the requirements of House Rule XI, the FRA has not 
received any Federal grant or contract during the current fiscal year 
or either of the 2 previous fiscal years.
                                synopsis
    The FRA is an active participant and leading organization in The 
Military Coalition (TMC) and strongly supports the recommendations 
addressed in the more extensive TMC testimony prepared for this 
hearing. The intent of this statement is to address other issues of 
particular importance to FRA's membership and the Sea Services enlisted 
communities.
                              introduction
    Mr. Chairman, the FRA salutes you, members of the subcommittee, and 
your staff for the strong and unwavering support of programs essential 
to Active Duty, Reserve component, and retired members of the uniformed 
services, their families, and survivors. The subcommittee's work has 
greatly enhanced care and support for our wounded warriors and 
significantly improved military pay, and other benefits and enhanced 
other personnel, retirement and survivor programs. This support is 
critical in maintaining readiness and is invaluable to our uniformed 
services engaged throughout the world fighting the global war on 
terror, sustaining other operational commitments and fulfilling 
commitments to those who've served in the past.
                              health care
    Health care is exceptionally significant to all FRA shipmates 
regardless of their status and protecting and/or enhancing this benefit 
is the Association's top legislative priority. A recently released FRA 
survey indicates that nearly 90 percent of all Active Duty, Reserve, 
retired, and veteran respondents cited health care access as a 
critically important quality-of-life benefit associated with their 
military service. From 2006-2008 retirees under age 65 were targeted by 
DOD to pay significantly higher health care fees. Many of these 
retirees served before the recent pay and benefit enhancements were 
enacted and receive significantly less retired pay than those serving 
and retiring in the same pay grade with the same years of service 
today. Promises were made to them about health care for life in return 
for a career in the military with low pay and challenging duty 
assignments and many believe they are entitled to free health care for 
life.
    Efforts to enact a national health care reform coupled with 
inaccurate and widespread information on the associated impact on 
retiree health care benefits has created unease and a sense of 
uncertainty for our members. FRA opposes any effort to integrate 
TRICARE and VA health care into any national health care program and 
appreciates the exclusion of TRICARE and VA health care in the House 
version of the national health care proposal. Military and VA health 
care services are fundamental to military readiness and serve the 
unique needs of current and former servicemembers, their families and 
survivors. Merging these programs into a colossal bureaucracy designed 
to provide health care to all Americans would broaden their focus and 
reduce their effectiveness. That said, the Association is concerned 
about proposed Medicare spending cuts associated with reform 
initiatives which may negatively impact physician reimbursement rates 
and access to care for Medicare and TRICARE beneficiaries.
    FRA strongly supports Representatives Chet Edwards (TX) and Walter 
Jones (NC) legislation, ``The Military Retirees' Health Care Protection 
Act'' (H.R. 816) that would prohibit DOD from increasing TRICARE fees, 
specifying that the authority to increase TRICARE fees exists only in 
Congress.
    FRA thanks this subcommittee for resisting past efforts to shift 
increasing health care cost to beneficiaries and ensuring adequate 
funding for the Defense Health Program in order to meet readiness 
needs, fully fund TRICARE, and improve access for all beneficiaries 
regardless of age, status or location. Adequately funding health care 
benefits for all beneficiaries is part of the cost of defending our 
Nation.
                           concurrent receipt
    The Association appreciates President Obama's support for 
authorizing Chapter 61 retirees to receive their full military retired 
pay and veterans disability compensation and continues to seek timely 
and comprehensive implementation of legislation that authorizes the 
full concurrent receipt for all disabled retirees. The above referenced 
FRA survey indicates that more than 70 percent of military retirees 
cite concurrent receipt among their top priorities. The Association 
strongly supports the fiscal year 2011 budget request of $408 million 
to cover the first phase of the 5-year cost for concurrent receipt for 
Chapter 61 beneficiaries that are 90 percent or more disabled.
                            wounded warriors
    FRA appreciates the substantial Wounded Warriors legislation in the 
National Defense Authorization Act (NDAA) for Fiscal Year 2008. Despite 
jurisdictional challenges, considerable progress has been made in this 
area. However, the enactment of legislation is only the first step in 
helping wounded warriors. Effective oversight and sustained funding are 
also critical for successful implementation and FRA supports the 
following substantive changes:
         Establish a permanent and independent office for the 
        DOD/VA Interagency program and expand it's authority to include 
        oversight of all components of achieving a true seamless 
        transition;
         Authorizing full active duty TRICARE benefits, 
        regardless of accessibility of VA care, for 3 years after 
        medical retirement to help ease transition from DOD to VA;
         Extend and make permanent the charter of the ``Special 
        Oversight Committee'' to ensure improved coordination with DOD 
        and VA initiatives to help wounded warriors;
         Exempt severely wounded medically retired Medicare 
        part B premiums until age 65;
         Providing up to 1 year of continuous habitation in 
        onbase housing facilities for medically retired, severely 
        wounded and their families;
         Eliminate the servicemember's premium for the 
        Traumatic Servicemember Group Life Insurance;
         Ensure the creation and full implementation of a joint 
        electronic health record that will help ensure a seamless 
        transition from DOD to VA for wounded warriors; and
         Establishment of the Wounded Warriors Resource Center 
        as a single point of contact for servicemembers, their family 
        members, and primary care givers.
    Achieving an effective delivery system between DOD and VA to 
guarantee seamless transition and quality services for wounded 
personnel, particularly those suffering from Post Traumatic Stress 
Disorder and Traumatic Brain Injuries is very important to our 
membership. DOD should also make every effort to destigmatize mental 
health conditions that should include outreach, counseling, and mental 
health assessment for all servicemembers returning from the combat 
zone. Family support is also critical for success, and should include 
compensation, training, and certification, and respite care for family 
members functioning as full-time caregivers for wounded warriors. FRA 
supports ``The Caregivers and Veterans Omnibus Health Services Act''(S. 
1963), and parallel legislation to improve compensation, training and 
assistance for caregivers of severally disabled active-duty 
servicemembers.
                             suicide rates
    FRA is deeply concerned that more servicemembers have taken their 
own lives by November 2009 than have been killed in either the 
Afghanistan or Iraq wars. Congressional Quarterly reports that as of 
November 24, 334 servicemembers have committed suicide in 2009, 
compared with 297 killed in Afghanistan and 144 who died in Iraq. In 
response to this, Congress has significantly increased funding for 
mental health in the DOD and VA budgets that established a suicide 
hotline. DOD and VA also sponsor annual conferences on this issue. 
Jurisdictional challenges notwithstanding, it is critically important 
that Congress further respond and enhanced coordination between the 
Veterans Affairs and Armed Services Committees is key to addressing 
this. As of the above date the Army has had 211 of the 334 suicides, 
while the Navy had 47, the Air Force had 34 and the Marine Corps 
(active duty only) had 42. Increases in the number of suicides are not 
limited to active duty members only, the Department of Veterans Affairs 
(VA) has indicated that veterans suicides have also been increasing at 
an alarming rate.
         uniform services former spouses protection act reform
    The Association believes that the increasing divorce rates among 
active duty personnel and reservists is related to stress caused by 
repeated deployments in conjunction with 8 years of fighting a two-
front war. According to the Los Angeles Times, ``The 3.6 percent rate 
is a full percentage point above the 2.6 percent reported in late 2001, 
when the U.S. began sending troops to Afghanistan in response to the 
terrorist attacks. As in previous years, women in uniform suffered much 
higher divorce rates than their male counterparts--7.7 percent in 2009. 
An Army 2009 battlefield survey indicated that 22 percent of married 
soldiers were considering divorce, compared to 12.4 percent in 2003.'' 
\1\ The divorce rate for women in uniform is especially troubling, and 
these numbers do not take into account divorce rates for veterans. The 
FRA has long advocated introduction of legislation addressing the 
inequities of the Uniform Services Former Spouses Protection Act 
(USFSPA) and associated hearings on this issue. The Association 
believes that this law should be more balanced in its protection for 
both the servicemember and the former spouse.
---------------------------------------------------------------------------
    \1\ Associated Press, November 28, 2009, Divorce Rate Rises in 
Military, Los Angeles Times.
---------------------------------------------------------------------------
    The recommendations in the Department of Defense's (DOD) September 
2001 report, which assessed USFSPA inequities and offered 
recommendations for improvement is a good starting point for 
considering badly needed reform of this onerous law.
    Few provisions of the USFSPA protect the rights of the 
servicemember and none are enforceable by the Department of Justice or 
DOD. If a State court violates the right of the servicemember under the 
provisions of USFSPA, the Solicitor General will make no move to 
reverse the error. Why? Because the act fails to have the enforceable 
language required for Justice or the Defense Department to react. The 
only recourse is for the servicemember to appeal to the court, which in 
many cases gives that court jurisdiction over the member. Another 
infraction is committed by some State courts awarding a percentage of 
veterans' compensation to ex-spouses, a clear violation of U.S. law; 
yet, the Federal Government does nothing to stop this transgression.
    FRA believes Congress needs to take a hard look at the USFSPA with 
the intent to amend it so that the Federal Government is required to 
protect its servicemembers against State courts that ignore provisions 
of the act. Other provisions also weigh heavily in favor of former 
spouses. For example, when a divorce is granted and the former spouse 
is awarded a percentage of the servicemember's retired pay, this should 
be based on the member's pay grade at the time of the divorce and not 
at a higher grade that may be held upon retirement. The former spouse 
has done nothing to assist or enhance the member's advancements 
subsequent to the divorce; therefore, the former spouse should not be 
entitled to a percentage of the retirement pay earned as a result of 
service after the decree is awarded. Additionally, Congress should 
review other provisions considered inequitable or inconsistent.
                    adequate personnel end strength
    Insufficient end strength levels and the rigors of supporting 
Operations Iraqi Freedom and Enduring Freedom are having a negative 
impact on the quality of life of servicemembers which will ultimately 
lead to retention and recruitment challenges. FRA urges this 
distinguished subcommittee to ensure funding for adequate end strengths 
and people programs consistent with the Association's DOD funding goal 
of at least 5 percent of the gross domestic product for fiscal year 
2011.
                      active duty pay improvements
    Our Nation is at war and there is no more critical morale issue for 
active duty warriors than adequate pay. This is reflected in the more 
than 96 percent of active duty respondents to FRA's recent survey 
indicating that pay is ``very important.'' The Employment Cost Index 
(ECI) for fiscal year 2011 is 1.4 percent and based on statistics from 
15 months before the effective date of the proposed active duty pay 
increase. The Association appreciates the strong support from this 
distinguished subcommittee in reducing the 13.5 percent pay gap to the 
current level during the past decade. In addition, FRA notes that even 
with a fiscal year 2011 pay increase that is 0.5 percent above the ECI, 
the result will be the smallest pay hike since 1958. FRA urges the 
subcommittee to continue the increases at least 0.5 percent above the 
ECI until the remaining 2.4 percent pay gap is eliminated.
                        reserve early retirement
    The effective date of a key provision in the NDAA for Fiscal Year 
2008, the Reserve retirement age provision that reduces the age 
requirement by 3 months for each cumulative 90-days ordered to active 
duty is effective upon the enactment of the legislation and NOT 
retroactive to October 7, 2001. Accordingly the Association supports 
``The National Guardsmen and Reservists Parity for Patriots Act'' (H.R. 
208) sponsored by the subcommittee's ranking member Representative Joe 
Wilson (SC), to authorize reservists mobilized since October 7, 2001, 
to receive credit in determining eligibility for receipt of early 
retired pay. Since September 11, 2001 the Reserve component has changed 
from a Strategic Reserve to an Operational Reserve that now plays a 
vital role in prosecuting the war efforts and other operational 
commitments. This has resulted in more frequent and longer deployments 
impacting individual reservist's careers. Changing the effective date 
of the Reserve early retirement would help partially offset lost salary 
increases, lost promotions, lost 401K and other benefit contributions. 
The Association urges the subcommittee to support this important 
legislation.
                   paid-up survivor benefit annuities
    Under current law, retirees are no longer required to pay survivor 
benefit annuities (SBP) premiums after they have paid for 30 years and 
reach age 70. This is an inequity for those who may have entered the 
service at age 17 or 18 and will be required to pay for 33 or 32 years 
respectively until attaining paid-up SBP status. Therefore, FRA 
supports changing the minimum age for paid-up SBP from age 70 to age 67 
to ensure that those who joined the military at age 17, 18, or 19 and 
serve 20 years will only have to pay SBP premiums for 30 years.
              retention of final full month's retired pay
    FRA urges the subcommittee to authorize the retention of the full 
final month's retired pay by the surviving spouse (or other designated 
survivor) of a military retiree for the month in which the member was 
alive for at least 24 hours. FRA strongly supports ``The Military 
Retiree Survivor Comfort Act'' (H.R. 613), introduced by Rep. Walter 
Jones (NC) which addresses this issue.
    Current regulations require survivors of deceased military retirees 
to return any retirement payment received in the month the retiree 
passes away or any subsequent month thereafter if there is a processing 
delay. Upon the demise of a retiree, the surviving spouse is required 
to notify the Defense Finance and Accounting Service (DFAS) of the 
death. DFAS then stops payment on the retirement account, recalculates 
the final payment to cover only the days in the month the retiree was 
alive, forwards a check for those days to the surviving spouse or 
beneficiary. If not reported in a timely manner, DFAS recoups any 
payment(s) made covering periods subsequent to the retiree's death.
    The measure is related to a similar Department of Veterans Affairs 
policy. Congress passed a law in 1996 that allows a surviving spouse to 
retain the veteran's disability and VA pension payments issued for the 
month of the veteran's death. FRA believes military retired pay should 
be no different. This proposal is also in response to complaints from 
surviving spouses who were unaware of the notification requirement and 
those with joint bank accounts, in which retirement payments were made 
electronically, who gave little if any thought that DFAS could access 
the joint account and recoup overpayments of retirement pay. This 
action could easily clear the account of any funds remaining whether 
they were retirement payments or money from other sources.
    To offset some of the costs, if the spouse is entitled to SBP on 
the retiree's death, there will be no payment of the annuity for the 
month the retirement payment is provided the surviving spouse.
                   mandate travel cost reimbursement
    FRA appreciates the NDAA for Fiscal Year 2008 provision (section 
631) that permits travel reimbursement for reservist's weekend drills, 
not to exceed $300, if the commute is outside the normal commuting 
distance. The Association urges the subcommittee to make this a 
mandatory provision. This is a priority issue with many enlisted 
reservists who are forced to travel lengthy distances to participate in 
weekend drills without reimbursement for travel costs. Providing this 
travel reimbursement would assist with retention and recruitment for 
the Reserves--something particularly important to increased reliance on 
these personnel in order to sustain our war and other operational 
commitments.
                            family readiness
    Military deployments create unique stresses on families due to 
separation, uncertainties of each assignment and associated dangers of 
injury or death for the deployed servicemember. Further, adapting to 
new living arrangements and routines adds to the stress, particularly 
for children.
    Fortunately men and women in uniform continue to answer the calls 
to support repeated deployments--but only at a cost of ever-greater 
sacrifices for them and their families. Now more than ever before the 
support of their families is essential to enduring the mounting 
stresses of the war effort and other operational commitments. This 
stress has resulted in doubling the number of outpatient mental health 
visits (1 million in 2003 to 2 million in 2008) for children with an 
active duty parent.\2\ It's most important that DOD and the military 
services concentrate on providing programs for the families of our 
servicemembers. DOD should improve programs to assist military families 
with deployment readiness, responsiveness, and reintegration. There are 
a number of existing spousal and family programs that have been fine 
tuned and are successfully contributing to the well-being of this 
community. The Navy's Fleet and Family Centers and the Marines' Marine 
Corps Community Services and Family Services programs are providing 
comprehensive, 24/7 information and referral services to the 
servicemember and family through its OneSource links. OneSource is 
particularly beneficial to mobilized reservists and families who are 
unfamiliar with varied benefits and services available to them.
---------------------------------------------------------------------------
    \2\ Military.Com More Troops' Kids Seeking Counseling Associated 
Press, July 8, 2009
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    It's true that ``the servicemember enlists in the military 
service--but it's the family that reenlists.'' To ensure the family 
opts for a uniformed career, the family must be satisfied with life in 
the military.
                               conclusion
    FRA is grateful for the opportunity to present these 
recommendations to this distinguished subcommittee. The Association 
reiterates its profound gratitude for the extraordinary progress this 
subcommittee has made in advancing a wide range of military personnel 
and retiree benefits and quality-of-life programs for all uniformed 
services personnel and their families and survivors. Thank you again 
for the opportunity to present the FRA's views on these critically 
important topics.
    Senator Webb. Thank you very much, Mr. Barnes.
    Ms. Moakler, welcome.
    STATEMENT OF KATHLEEN B. MOAKLER, GOVERNMENT RELATIONS 
         DIRECTOR, NATIONAL MILITARY FAMILY ASSOCIATION
    Ms. Moakler. Thank you. Chairman Webb, Senator Graham, 
thank you for the opportunity to speak today on behalf of 
military families, our Nation's military families.
    Many families are facing their ninth year of deployment, 
many have dealt with multiple deployments. We have second-
graders who have only known a lifestyle with a parent absent 
from their lives for months at a time, over and over again. We 
appreciate the many initiatives and programs supported by this 
subcommittee in the past. Military OneSource, increased 
benefits and support for surviving families, and the Yellow 
Ribbon Program are just a few. We have expanded access to 
mental health counseling across components, although the need 
continues to grow.
    Now military families expect these programs. They have 
become part of the overall fabric of family readiness. The 
challenge that now faces us is making sure that our family 
readiness programs receive sustained funding and continue to be 
included in the annual budget process. As the war has 
progressed, family readiness requirements have evolved. Some 
new programs have been initiated without evaluating already 
existing programs to see how they might have been adapted.
    The congressionally-mandated Military Family Readiness 
Council has begun an evaluation process. We endorse this 
process and hope that it will result in the elimination of 
repetitive or redundant programs. Existing programs can be 
improved, such as adding provisions for travel for family 
members participating in the Reserve-component Yellow Ribbon 
Program.
    With budget cuts and shortfalls looming, we should not 
randomly reduce funding to family programs, across the board. 
As redundant programs are identified, their elimination can add 
to efficiencies. Servicemembers and their families cite MWR 
programs, like gyms, libraries, and other installation-provided 
services, as important to their well-being during deployments. 
Substantial cuts to these programs make them wonder why 
Services talk about support, yet often cut or reduce the same 
programs that are identified as the most important by our 
families.
    One of the ways to evaluate the efficacy of programs is 
research. Our Association has spoken, for several years, 
concerning research into the effects of continuing deployments 
on our most vulnerable population: our military children. We 
appreciate the inclusion of a provision calling for a study in 
last year's NDAA. In May 2008, we commissioned the RAND 
Corporation to do a longitudinal study on the experience of 
1,500 families. Over the course of a year, RAND interviewed 
both the nondeployed caregiver parent and one child per family 
between the ages of 11 and 17. We addressed two key questions: 
How are school-aged children faring? What types of issues do 
military children face, related to deployment?
    The baseline findings were published in the January issue 
of the Journal of Pediatrics. The study found, as the months of 
parental deployment increased, so did the child's challenges. 
The total number of months away mattered more than the number 
of deployments. Older children experienced more difficulties 
during deployment, and there is a direct correlation between 
the mental health of the caregiver and the well-being of the 
child. It was interesting to note that in the initial findings, 
there were no differences in results between Service or 
components.
    What are the implications? Families facing longer 
deployments need targeted support, especially for older teens 
and girls. Supports need to be in place across the entire 
deployment cycle, including reintegration, and some nondeployed 
parents may need targeted mental health support.
    We still hear about needs for childcare. While most 
traditional childcare needs are being met, innovative 
strategies for after-hours care and respite care should be 
explored. These strategies need to be implemented across the 
Services, as well. Drop-in care for medical appointments, 
either at the Center for Disease Control or at the military 
treatment facility itself, can go a long way in improving 
access to care and eliminating missed appointments.
    I, too, must bring up the MyCAA Program, with an underline 
and an exclamation point. Several years ago, Congress mandated 
DOD create a program to promote portable careers for military 
spouses. The result was a very popular MyCAA program. Recent 
numbers indicate that 98,000 spouses already are enrolled in 
the program, an additional 38,000 have applied but have not yet 
completed the process. Unfortunately, DOD, as we have heard 
today, has recently had to suspend the program. We have heard, 
from many concerned military spouses using the MyCAA program, 
about the loss of funding for courses in which they were 
enrolled, and how they are scrambling to come up with the funds 
to continue, be it for an individual course that they are 
taking online or a semester.
    But, I think what bothered them the most was the way the 
notification was handled. There was no advance notification, 
information was sent via a press release. This, when the 
program was in possession of everyone's email address. Many 
view this as one more frustration in 8 long years of 
frustrations.
    The program may be a victim of its own success. We are 
unsure as to whether it was the lack of funds or an application 
overload, or both, that caused the suspension. We ask that the 
program be resumed as soon as possible, and that it be properly 
funded.
    We thank you for your support of our servicemembers and 
their families. We urge you to remember their service as you 
work to resolve the many issues facing our country. Working 
together, we can improve the quality of life for all these 
families.
    Thank you, and I await your questions.
    [The prepared statement of Ms. Moakler follows:]
               Prepared Statement by Kathleen B. Moakler
    Chairman Webb and distinguished members of the subcommittee, the 
National Military Family Association would like to thank you for the 
opportunity to present testimony on the quality of life of military 
families--the Nation's families. As the war has continued, the quality 
of life of our servicemembers and their families has been severely 
impacted. Your recognition of the sacrifices of these families and your 
response through legislation to the increased need for support have 
resulted in programs and policies that have helped sustain our families 
through these difficult times.
    We endorse the recommendations contained in the statement submitted 
by The Military Coalition. In this statement, our Association will 
expand on several issues of importance to military families:
          I. Family Readiness
          II. Family Health
          III. Family Transitions
                          i. family readiness
    The National Military Family Association believes policies and 
programs should provide a firm foundation for families buffeted by the 
uncertainties of deployment and transformation. It is imperative full 
funding for these programs be included in the regular budget process 
and not merely added on as part of supplemental funding. We promote 
programs that expand and grow to adapt to the changing needs of 
servicemembers and families as they cope with multiple deployments and 
react to separations, reintegration, and the situation of those 
returning with both visible and invisible wounds. Standardization in 
delivery, accessibility, and funding are essential. Programs should 
provide for families in all stages of deployment and reach out to them 
in all geographic locations. Families should be given the tools to take 
greater responsibility for their own readiness.
    We appreciate provisions in the National Defense Authorization Acts 
and Appropriations legislation in the past several years that 
recognized many of these important issues. Excellent programs exist 
across the Department of Defense (DOD) and the Services to support our 
military families. There are redundancies in some areas, and times when 
a new program was initiated before looking to see if an existing 
program could be adapted to answer an evolving need. Servicemembers and 
their families are continuously in the deployment cycle, anticipating 
the next separation, in the throes of deployment, or trying to 
reintegrate after the servicemember returns. Dwell times seem shorter 
and shorter as training, schools, and relocation impede on time that is 
spent in the family setting.
    ``My husband will have 3 months at home with us between deployment 
and being sent to school in January for 2 months and we will be PCSing 
soon afterwards. . . . This does not leave much time for reintegration 
and reconnection.''--Army Spouse
    We feel that now is the time to look at best practices and at those 
programs that are truly meeting the needs of families. In this section 
we will talk about existing programs, highlight best practices, and 
identify needs.
Child Care
    At every military family conference we attended last year, child 
care was in the top five issues affecting families--drop-in care being 
the most requested need. Some installations are responding to these 
needs in innovative ways. For instance, in a recent visit to Kodiak, 
Alaska, we noted the gym facility provided watch care for its patrons. 
Mom worked out on the treadmill or elliptical while her child played in 
a safe carpeted and fenced-in area right across from her. Another area 
of the gym, previously an aerobics room, had been transformed into a 
large play area for ``Mom and me'' groups to play in the frequently 
inclement weather. These solutions aren't expensive but do require 
thinking outside the box.
    Innovative strategies are needed to address the non-availability of 
after-hours child care (before 6 a.m. and after 6 p.m.) and respite 
care. We applaud the partnership between the Services and the National 
Association of Child Care Resource and Referral Agencies that provides 
subsidized child care to families who cannot access installation based 
child development centers. We also appreciate the new SitterCity.com 
contract that will help military families find caregivers and military 
subsidized child care providers.
    Still, families often find it difficult to obtain affordable, 
quality care especially during hard-to-fill hours and on weekends. Both 
the Navy and the Air Force have programs that provide 24/7 care. These 
innovative programs must be expanded to provide care to more families 
at the same high standard as the Services' traditional child 
development programs. The Army, as part of the funding attached to its 
Army Family Covenant, has rolled out more space for respite care for 
families of deployed soldiers. Respite care is needed across the board 
for the families of the deployed and the wounded, ill, and injured. We 
are pleased the Services have rolled out more respite care for special 
needs families, but since the programs are new we are unsure of the 
impact it will have on families. We are concerned, however, when we 
hear of some installations already experiencing shortfalls of funding 
for respite care early in the year.
    At our Operation Purple* Healing Adventures camp for families of 
the wounded, ill, and injured, families told us there is a tremendous 
need for access to adequate child care on or near military treatment 
facilities. Families need the availability of child care in order to 
attend medical appointments, especially mental health appointments. Our 
Association encourages the creation of drop-in child care for medical 
appointments on the DOD or VA premises or partnerships with other 
organizations to provide this valuable service.
    We appreciate the requirement in the National Defense Authorization 
Act for Fiscal Year 2010 calling for a report on financial assistance 
provided for child care costs across the Services and components to 
support the families of those servicemembers deployed in support of a 
contingency operation and we look forward to the results.
    Our Association urges Congress to ensure resources are available to 
meet the child care needs of military families to include hourly, drop-
in, and increased respite care across all Services for families of 
deployed servicemembers and the wounded, ill, and injured, as well as 
those with special needs family members.
Working with Youth
    Older children and teens must not be overlooked. School personnel 
need to be educated on issues affecting military students and must be 
sensitive to their needs. To achieve this goal, schools need tools. 
Parents need tools, too. Military parents constantly seek more 
resources to assist their children in coping with military life, 
especially the challenges and stress of frequent deployments. Parents 
tell us repeatedly they want resources to ``help them help their 
children.'' Support for parents in their efforts to help children of 
all ages is increasing, but continues to be fragmented. New Federal, 
public-private initiatives, increased awareness, and support by DOD and 
civilian schools educating military children have been developed. 
However, many military parents are either not aware such programs exist 
or find the programs do not always meet their needs.
    Our Association is working to meet this pressing need through our 
Operation Purple* Summer Camps. Unique in its ability to reach out and 
gather military children of different age groups, Services, and 
components, our Operation Purple program provides a safe and fun 
environment in which military children feel immediately supported and 
understood. Now in our seventh year, we have sent more than 30,000 
children to camp for free with the support of private donors. This 
year, we expect to send another 10,000 children to camp at 67 locations 
in 34 States and Guam, and Germany. We also provided the camp 
experience to families of the wounded. In 2009, we introduced a new 
program under our Operation Purple umbrella, offering family 
reintegration retreats in the national parks. They have been well 
received by our families and more apply than can attend. We are 
offering 10 retreats this year.
    Through our Operation Purple camps, our Association has begun to 
identify the cumulative effects multiple deployments are having on the 
emotional growth and well being of military children and the challenges 
posed to the relationship between deployed parent, caregiver, and 
children in this stressful environment. Understanding a need for 
qualitative analysis of this information, we commissioned the RAND 
Corporation to conduct a pilot study in 2007 aimed at the current 
functioning and wellness of military children attending Operation 
Purple camps and assessing the potential benefits of the Operation 
Purple program in this environment of multiple and extended 
deployments.
    In May 2008, we embarked on phase two of the project--a 
longitudinal study on the experience of 1,507 families, which is a much 
larger and more diverse sample than included in our pilot study. RAND 
followed these families for 1 year, and interviewed the nondeployed 
caregiver/parent and one child per family between 11 and 17 years of 
age at three time points over the year. Recruitment of participants was 
extremely successful because families were eager to share their 
experiences. The research addressed two key questions:
          How are school-age military children faring?
          What types of issues do military children face related to 
        deployment?
    In December, the baseline findings of the research were published 
in the journal Pediatrics. Findings showed:
         As the months of parental deployment increased, so did 
        the child's challenges.
         The total number of months away mattered more than the 
        number of deployments.
         Older children experienced more difficulties during 
        deployment.
         There is a direct correlation between the mental 
        health of the caregiver and the well-being of the child.
         Girls experienced more difficulty during 
        reintegration, the period of months readjusting after the 
        servicemember's homecoming.
         About one-third of the children reported symptoms of 
        anxiety, which is somewhat higher than the percentage reported 
        in other national studies of children.
         In these initial findings, there were no differences 
        in results between Services or components.
    What are the implications? Families facing longer deployments need 
targeted support--especially for older teens and girls. Supports need 
to be in place across the entire deployment cycle, including 
reintegration, and some nondeployed parents may need targeted mental 
health support. One way to address these needs would be to create a 
safe, supportive environment for older youth and teens. Dedicated Youth 
Centers with activities for our older youth would go a long way to help 
with this. Our Association, as an outgrowth of the study results, will 
be holding a summit in early May, where we will be engaging with 
experts to isolate action items that address the issues surfaced in the 
study. We will be happy to share these action items with you.
    Our Association feels that more dedicated resources, such as youth 
or teen centers, would be a first step toward addressing the needs of 
our older youth and teens during deployment.
Families Overseas
    Families stationed overseas face increased challenges when their 
servicemember is deployed into theater. One such challenge we have 
heard from families stationed in EUCOM concerns care for a family 
member, usually the spouse, who may be injured or confined to bed for 
an extended illness during deployment. Instead of pulling the 
servicemember back from theater, why not provide transportation for an 
extended family member or friend to come from the States to care for 
the injured or ill family member? This was a recommendation from the 
EUCOM Quality of Life conference for several years.
    Our Association asks that transportation be provided for a 
designated caregiver to an overseas duty station to care for an 
incapacitated spouse when a servicemember is deployed.
Military Housing
    In the recent RAND study of military children on the home front 
commissioned by our Association, researchers found that living in 
military housing was related to fewer caregiver reported deployment-
related challenges. For instance, fewer caregivers who lived in 
military housing reported that their children had difficulties 
adjusting to parent absence (e.g., missing school activities, feeling 
sad, not having peers who understand what their life is like) as 
compared to caregivers who needed to rent their homes. In a subsequent 
survey, the study team explored the factors that determine a military 
family's housing situation in more detail. Among the list of potential 
reasons provided for the question, ``Why did you choose to rent?'' 
researchers found that the top three reasons parents/caregivers cited 
for renting included: military housing was not available (31 percent); 
renting was most affordable (28 percent), and preference to not invest 
in the purchase of a home (26 percent).
    Privatized housing expands the opportunity for families to live on 
the installation and is a welcome change for military families. We are 
pleased with the annual report that addresses the best practices for 
executing privatized housing contracts. As privatized housing evolves 
the Services are responsible for executing contracts and overseeing the 
contractors on their installations. With more joint basing, more than 
one Service often occupies an installation. The Services must work 
together to create consistent policies not only within their Service 
but across the Services as well. Pet policies, deposit requirements, 
and utility polices are some examples of differences across 
installations and across Services. How will Commanders address these 
variances as we move to joint basing? Our families face many 
transitions when they move, and navigating the various policies and 
requirements of each contractor is frustrating and confusing. It's time 
for the Services to increase their oversight and work on creating 
seamless transitions by creating consistent policies across the 
Services.
    We are pleased the NDAA for Fiscal Year 2010 calls for a report on 
housing standards and housing surveys used to determine the Basic 
Allowance for Housing (BAH) and hope Congress will work to address BAH 
inequities.
    Privatized housing is working! We ask Congress to consider the 
importance of family well-being as a reason for expanding the amount of 
privatized housing for our military families.
Commissaries and Exchanges
    The commissary is a vital part of the compensation package for 
servicemembers and retirees, and is valued by them, their families, and 
survivors. Our surveys indicate that military families consider the 
commissary one of their most important benefits. In addition to 
providing average savings of more than 30 percent over local 
supermarkets, commissaries provide a sense of community. Commissary 
shoppers gain an opportunity to connect with other military families, 
and are provided with information on installation programs and 
activities through bulletin boards and publications. Commissary 
shoppers also receive nutritional information through commissary 
promotions and campaigns, as well as the opportunity for educational 
scholarships.
    Our Reserve component families have benefited greatly from the 
addition of case lot sales. We thank Congress again for the provision 
allowing the use of proceeds from surcharges collected at these sales 
to help defray their costs. Not only have these case lot sales been 
extremely well received and attended by family members not located near 
an installation, they have extended this important benefit to our 
entire military community.
    Our Association continues to be concerned that there will not be 
enough commissaries to serve areas experiencing substantial growth, 
including those locations with servicemembers and families relocated by 
BRAC. The surcharge was never intended to pay for DOD and Service 
transformation. Additional funding is needed to ensure commissaries are 
built or expanded in areas that are gaining personnel as a result of 
these programs.
    Our Association believes that additional funding is needed to 
ensure commissaries are built or expanded in areas that are gaining 
personnel due to BRAC and transformation.
    The military exchange system, like the commissary, provides 
valuable cost savings to members of the military community, while 
reinvesting their profits in essential Morale, Welfare and Recreation 
(MWR) programs. Our Association strongly believes that every effort 
must be made to ensure that this important benefit and the MWR revenue 
is preserved, especially as facilities are down-sized or closed 
overseas. In addition, exchanges must continue to be responsive to the 
needs of deployed servicemembers in combat zones and have the right mix 
of goods at the right prices for the full range of beneficiaries.
    As a member of the Defense Commissary Patron Council and a strong 
proponent of the military exchange system, our Association remains 
committed to protecting commissary and exchange benefits which are 
essential to the quality of life of our servicemembers, retirees, 
families and survivors.
Flexible Spending Accounts
    We would like to thank Members of Congress for the Sense of 
Congress on the establishment of Flexible Spending Accounts for 
uniformed servicemembers. We hope this subcommittee will press each of 
the seven Service Secretaries to establish these important pre-tax 
savings accounts in a consistent manner. Flexible Spending Accounts 
would be especially helpful for families with out-of-pocket dependent 
care and health care expenses. We ask that the flexibility of a 
rollover or transfer of funds to the next year be considered.
Financial Readiness
    Financial readiness is a critical component of family readiness. 
Our Association applauds DOD for tackling financial literacy head-on 
with their Financial Readiness Campaign. Financial literacy and 
education must continue to be on the forefront. We are strong 
supporters of the Military Lending Act (MLA) and hope Congress will 
press States to enforce MLA regulations within their State borders. 
With the depressed economy, many families may turn to payday lenders. 
DOD must continue to monitor the MLA and its effectiveness of derailing 
payday lenders.
    Military families are not immune from the housing crisis. We 
applaud Congress for expanding the Homeowners' Assistance Program to 
wounded, ill, and injured servicemembers, survivors, and servicemembers 
with Permanent Change of Station orders meeting certain parameters. We 
have heard countless stories from families across the Nation who have 
orders to move and cannot sell their home. Due to the mobility of 
military life, military homeowners must be prepared to be a landlord. 
We encourage DOD to continue to provide financial education to military 
servicemembers and their families to help families make sound financial 
decisions. We also encourage DOD to continue to track the impact of the 
housing crisis on our military families.
    We appreciate the increase to the Family Separation Allowance (FSA) 
that was made at the beginning of the war. In more than 8 years, 
however, there has not been another increase. We ask that the FSA be 
indexed to the Cost of Living Allowance (COLA) to better reflect rising 
costs for services.
    Increase the Family Separation Allowance by indexing it to COLA.
                           ii. family health
    Family readiness calls for access to quality health care and mental 
health services. Families need to know the various elements of their 
military health system are coordinated and working as a synergistic 
system. Our Association is concerned the DOD military health care 
system may not have all the resources it needs to meet both the 
military medical readiness mission and provide access to health care 
for all beneficiaries. It must be funded sufficiently, so the direct 
care system of Military Treatment Facilities (MTFs) and the purchased 
care segment of civilian providers can work in tandem to meet the 
responsibilities given under the TRICARE contracts, meet readiness 
needs, and ensure access for all military beneficiaries.
Military Health System
    Improving Access to Care
    In the question and answer period during a hearing of this 
subcommittee on June 3, 2009, Senator Lindsey Graham (R-SC) asked panel 
members to ``give a grade to TRICARE.'' Panel members rated TRICARE a 
``B'' or a ``C minus.'' Our Association's Director of Government 
Relations stated it was a two-part question and assigned a grade of 
``B'' for quality of care and ``C-'' for access to care. We welcomed 
this discussion focused on access issues in the direct care system--our 
military hospitals and clinics--reinforcing what our Association has 
observed for years. We have consistently heard from families that their 
greatest health care challenge has been getting timely care from their 
local military hospital or clinic.
    Our Association continues to examine military families' experiences 
with accessing the Military Health System (MHS). Families' main issues 
are: access to their Primary Care Managers (PCM); getting someone to 
answer the phone at central appointments; having appointments available 
when they finally got through to central appointments; after hours 
care; getting a referral for specialty care; being able to see the same 
provider or PCM; and having appointments available 60, 90, and 120 days 
out in our MTFs for follow-ups recommended by their providers. Families 
familiar with how the MHS referral system works seem better able to 
navigate the system. Those families who are unfamiliar report delays in 
receiving treatment or sometimes decide to give up on the referral 
process and never obtain a specialty appointment. Continuity of care is 
important to maintain quality of care. The MTFs are stressed from 8 
years of provider deployments, directly affecting the quality of care 
and contributing to increased costs. Our Association thanks Congress 
for requiring, in the NDAA for Fiscal Year 2009, a report on access to 
care and we look forward to the findings. This report must distinguish 
between access issues in the MTFs, as opposed to access in the civilian 
TRICARE networks.
    Our most seriously wounded, ill, and injured servicemembers, 
veterans, and their families are assigned case managers. In fact, there 
are many different case managers: Federal Recovery Coordinators (FRC), 
Recovery Care Coordinators, coordinators from each branch of Service, 
TBI care coordinators, VA liaisons, et cetera. The goal is for a 
seamless transition of care between and within the two governmental 
agencies, DOD and the VA. However, with so many coordinators to choose 
from, families often wonder which one is the ``right'' case manager. We 
often hear from families, some whose servicemember has long been 
medically retired with a 100 percent disability rating or others with 
less than 1 year from date-of-injury, who have not yet been assigned a 
FRC. We need to look at whether the multiple, layered case managers 
have streamlined the process, or have only aggravated it. Our 
Association still finds families trying to navigate alone a variety of 
complex health care systems, trying to find the right combination of 
care. Individual Service wounded, ill, and injured program directors 
and case managers are often reluctant to inform families that FRCs 
exist or that the family qualifies for one. Many qualify for and use 
Medicare, VA, DOD's TRICARE direct and purchased care, private health 
insurance, and State agencies. Why can't the process be streamlined?
    Support for Special Needs Families
    Case management for military beneficiaries with special needs is 
not consistent because the coordination of the military family's care 
is being done by a non-synergistic health care system. Beneficiaries 
try to obtain an appointment and then find themselves getting partial 
health care within the MTF, while other health care is referred out 
into the purchased care network. Thus, military families end up 
managing their own care. Incongruence in the case management process 
becomes more apparent when military family members transfer from one 
TRICARE region to another and is further exacerbated when a special 
needs family member is involved. Families need a seamless transition 
and a warm handoff between TRICARE regions and a universal case 
management process across the MHS. Each TRICARE Managed Care Contractor 
has created different case management processes. The current case 
management system is under review by DOD and the TRICARE Management 
Activity.
    We applaud Congress and DOD's desire to create robust health care, 
educational, and family support services for special needs children. 
But, these robust services do not follow them when they retire. We 
encourage the Services to allow these military families the opportunity 
to have their final duty station be in an area of their choice. We 
suggest the Extended Care Health Option (ECHO) be extended for 1 year 
after retirement for those already enrolled in ECHO prior to 
retirement. If the ECHO program is extended, it must be for all who are 
eligible for the program. We should not create a different benefit 
simply based on diagnosis.
    There has been discussion over the past years by Congress and 
military families regarding the ECHO program. The NDAA for Fiscal Year 
2009 included a provision to increase the cap on certain benefits under 
the ECHO program and the NDAA for Fiscal Year 201O established the 
Office of Community Support for Military Families with Special Needs. 
The ECHO program was originally designed to allow military families 
with special needs to receive additional services to offset their lack 
of eligibility for State or federally provided services impacted by 
frequent moves. We suggest that before making any more adjustments to 
the ECHO program, Congress should direct DOD to certify if the ECHO 
program is working as it was originally designed and if it has been 
effective in addressing the needs of this population. We need to make 
the right fixes so we can be assured we apply the correct solutions. 
This new office will go a long way in identifying and addressing 
special needs. However, we must remember that our special needs 
families often require medical, educational and family support 
resources. This new office must address all these various needs in 
order to effectively implement change.
    National Guard and Reserve Member Family Health Care
    National Guard and Reserve families need increased education about 
their health care benefits. We also believe that paying a stipend to a 
mobilized National Guard or Reserve member for their family's coverage 
under their employer-sponsored insurance plan while the servicemember 
is deployed may work out better for many families in areas where the 
TRICARE network may not be robust.
    Grey Area Reservists
    Our Association would like to thank Congress for the new TRICARE 
benefit for Grey Area Reservists. We want to make sure this benefit is 
quickly implemented and they have access to a robust network.
    TRICARE Reimbursement
    Our Association is concerned that continuing pressure to lower 
Medicare reimbursement rates will create a hollow benefit for TRICARE 
beneficiaries. As the 111th Congress takes up Medicare legislation, we 
request consideration of how this legislation will impact military 
families' health care, especially our most vulnerable service, access 
to mental health.
    National provider shortages in the mental health field, especially 
in child and adolescent psychology, are exacerbated in many cases by 
low TRICARE reimbursement rates, TRICARE rules, or military-unique 
geographic challenges--for example large populations in rural or 
traditionally underserved areas. Many mental health providers are 
willing to see military beneficiaries on a voluntary status. However, 
these providers often tell us they will not participate in TRICARE 
because of what they believe are time-consuming requirements and low 
reimbursement rates. More must be done to persuade these providers to 
participate in TRICARE and become a resource for the entire system, 
even if that means DOD must raise reimbursement rates.
    Pharmacy
    We caution DOD about generalizing findings of certain beneficiary 
pharmacy behaviors and automatically applying them to our Nation's 
unique military population. We encourage Congress to require DOD to 
utilize peer-reviewed research involving beneficiaries and prescription 
drug benefit options, along with performing additional research 
involving military beneficiaries, before making any recommendations on 
prescription drug benefit changes, such as co-payment and tier 
structure changes for military servicemembers, retirees, their 
families, and survivors.
    We appreciate the inclusion of Federal pricing for the TRICARE 
retail pharmacies in the NDAA for Fiscal Year 2008. However, we still 
need to examine its effect on the cost of medications for both 
beneficiaries and DOD. Also, we will need to see how this potentially 
impacts Medicare, civilian private insurance, and the National Health 
Care Reform affecting drug pricing negotiations.
    We believe it is imperative that all medications available through 
TRICARE Retail Pharmacy (TRRx) should also be available through TRICARE 
Mail Order Pharmacy (TMOP). Medications treating chronic conditions, 
such as asthma, diabetes, and hypertension should be made available at 
the lowest level of co-payment regardless of brand or generic status. 
We agree with the recommendations of the Task Force on the Future of 
Military Health Care that over-the-counter (OTC) drugs be a covered 
pharmacy benefit and there be a zero co-pay for TMOP Tier 1 
medications.
    The new T3 TRICARE contract will provide TRICARE Managed Care 
Contractors and Express-Scripts, Inc. the ability to link pharmacy data 
with disease management. This will allow for better case management, 
increase compliance, and decrease cost, especially for our chronically 
ill beneficiaries. However, this valuable tool is currently unavailable 
because the T3 contract is still under protest and has not yet been 
awarded.
    National Health Care Proposal
    Our Association is cautious about current rhetoric by the 
administration and Congress regarding National Health Care Reform. We 
request consideration of how this legislation will also impact TRICARE.
    The perfect storm is brewing. TMA will hopefully be instituting the 
new T3 contract in 2011. Currently, there is the possibility that two 
out of three TRICARE Managed Care Contractors could change. This means 
that the contracts of 66 percent of our TRICARE providers would need to 
be renegotiated. Add the demands and uncertainties to providers in 
regards to health care reform and Medicare reimbursement rate changes. 
This leads to our concern regarding the impact on providers' 
willingness to remain in the TRICARE network and the recruitment of new 
providers. The unintended consequences maybe a decrease in access to 
care due the lack of available health care providers.
    DOD Must Look for Savings
    We ask Congress to establish better oversight for DOD's 
accountability in becoming more cost-efficient. We recommend:
         Requiring the Comptroller General to audit MTFs on a 
        random basis until all have been examined for their ability to 
        provide quality health care in a cost-effective manner;
         Creating an oversight committee, similar in nature to 
        the Medicare Payment Advisor Commission, which provides 
        oversight to the Medicare program and makes annual 
        recommendations to Congress. The Task Force on the Future of 
        Military Health Care often stated it was unable to address 
        certain issues not within their charter or the timeframe in 
        which they were commissioned to examine the issues. This 
        Commission would have the time to examine every issue in an 
        unbiased manner.
         Establishing a Unified ``Joint'' Medical Command 
        structure, which was recommended by the Defense Health Board in 
        2006 and 2009.
    Our Association believes optimizing the capabilities of the 
facilities of the direct care system through timely replacement of 
facilities, increased funding allocations, and innovative staffing 
would allow more beneficiaries to be cared for in the MTFs, which DOD 
asserts is the most cost effective. The Task Force made recommendations 
to make the DOD MHS more cost-efficient which we support. They conclude 
the MHS must be appropriately sized, resourced, and stabilized; and 
make changes in its business and health care practices.
    We suggest additional funding and flexibility in hiring practices 
to address MTF provider deployments.
    Our Association recommends a 1 year transitional active duty ECHO 
benefit for all eligible family members of servicemembers who retire.
    We believe that Reserve component families should be given the 
choice of a stipend to continue their employer provided care during 
deployment.
Behavioral Health Care
    Our Nation must help returning servicemembers and their families 
cope with the aftermath of war. DOD, VA, and State agencies must 
partner in order to address behavioral health issues early in the 
process and provide transitional mental health programs. Partnering 
will also capture the National Guard and Reserve member population, who 
often straddle these agencies' health care systems.
    Full Spectrum of Care
    As the war continues, families' need for a full spectrum of 
behavioral health services--from preventative care and stress reduction 
techniques, to counseling and medical mental health services--continues 
to grow. The military offers a variety of psychological health 
services, both preventative and treatment, across many agencies and 
programs. However, as servicemembers and families experience numerous 
lengthy and dangerous deployments, we believe the need for 
confidential, preventative psychological health services will continue 
to rise. It will remain high, even after military operations scale 
down. Our study on the impact of the war on caregivers and children 
found the mental health of the caregiver directly affects the overall 
well-being of the children. Therefore, we need to treat the family as a 
unit rather than as individuals because the caregiver's health 
determines the quality of life for the children.
    Access to Behavioral Health Care
    Our Association is concerned about the overall shortage of mental 
health providers in TRICARE's direct and purchased care network. DOD's 
Task Force on Mental Health stated timely access to the proper 
psychological health provider remains one of the greatest barriers to 
quality mental health services for servicemembers and their families. 
The Army Family Action Plan (AFAP) identified mental health issues as 
their number three issue for 2010. While families are pleased more 
mental health providers are available in theater to assist their 
servicemembers, they are disappointed with the resulting limited access 
to providers at home. Families are reporting increased difficulty in 
obtaining appointments with social workers, psychologists, and 
psychiatrists at their MTFs and clinics. The military fuels the 
shortage by deploying some of its child and adolescent psychology 
providers to combat zones. Providers remaining at home report they are 
overwhelmed by treating active duty members and are unable to fit 
family members into their schedules. This can lead to provider 
compassion fatigue, creating burnout and exacerbating the provider 
shortage problem.
    We have seen an increase in the number of mental health providers 
joining the purchased care side of the TRICARE network. However, the 
access standard is 7 days. We hear from military families after 
accessing the mental health provider lists on the contractors' web 
sites that the provider is full and no longer taking TRICARE patients. 
The list must be up-to-date in order to handle real time demands by 
families. We need to continue to recruit more mental health providers 
to join the TRICARE network and we need to make sure we specifically 
add those in specialty behavioral health care areas, such as child and 
adolescence psychology and psychiatrists.
    Families must be included in mental health counseling and treatment 
programs for servicemembers. Family members are a key component to a 
servicemember's psychological well-being. Families want to be able to 
access care with a mental health provider who understands or is 
sympathetic to the issues they face. We recommend an extended outreach 
program to servicemembers, veterans, and their families of available 
mental health resources, such as DOD, VA, and State agencies. We 
appreciate the VA piloting programs that incorporate active duty 
servicemembers and their families into their newly established OIF/OEF 
health care clinics. The family is accessed as a ``unit'' and educated 
about the VA's benefits and services. These initiatives need to be 
expanded throughout the VA and fully funded.
    Frequent and lengthy deployments create a sharp need in mental 
health services by family members and servicemembers as they get ready 
to deploy and after their return. There is also an increase in demand 
in the wake of natural disasters, such as hurricanes and fires. We need 
to maintain a flexible pool of mental health providers who can increase 
or decrease rapidly in numbers depending on demand on the MHS side. 
Currently, Military Family Life Consultants and Military OneSource 
counseling are providing this type of service for military families on 
the family support side. The recently introduced web-based TRICARE 
Assistance Program (TRIAP) offers another vehicle for nonmedical 
counseling, especially for those who live far from counselors. We need 
to make the Services, along with military family members, more aware of 
resources along the continuum. We need the flexibility of support in 
both the MHS and family support arenas, as well as coordination of 
support between these two entities. We must educate civilian network 
providers about our culture. Communities along with nongovernment 
organizations are beginning to fulfill this role, but more needs to be 
done.
    Availability of Treatment
    Do DOD, VA, and State agencies have adequate mental health 
providers, programs, outreach, and funding? Better yet, where will the 
veteran's spouse and children go for help? Many will be left alone to 
care for their loved one's invisible wounds resulting from frequent and 
long combat deployments. Who will care for them when they are no longer 
part of the DOD health care system?
    The Army's Mental Health Advisory Team (MHAT) IV report links 
reducing family issues to reducing stress on deployed servicemembers. 
The team found the top noncombat stressors were deployment length and 
family separation. They noted soldiers serving a repeat deployment 
reported higher acute stress than those on their first deployment and 
the level of combat was the major contribution for their psychological 
health status upon return. Our study on the impact of deployment on 
caregivers and children found it was the cumulative time deployed that 
caused increased stress. These reports demonstrate the amount of stress 
being placed on our troops and their families.
    Our Association is especially concerned with the scarcity of 
services available to the families as they leave the military following 
the end of their activation or enlistment. Due to the servicemember's 
separation, the families find themselves ineligible for TRICARE, 
Military OneSource, and are very rarely eligible for health care 
through the VA. Many will choose to locate in rural areas lacking 
available mental health providers. We need to address the distance 
issues families face in finding mental health resources and obtaining 
appropriate care. Isolated servicemembers, veterans, and their families 
do not have the benefit of the safety net of services and programs 
provided by MTFs, VA facilities, Community-Based Outpatient Centers and 
Vet Centers. We recommend:
         using alternative treatment methods, such as 
        telemental health;
         modifying licensing requirements in order to remove 
        geographic practice barriers that prevent psychological health 
        providers from participating in telemental health services 
        outside of a VA facility;
         educating civilian network psychological health 
        providers about our military culture as the VA incorporates 
        Project Hero; and
         encouraging DOD and VA to work together to provide a 
        seamless ``warm hand-off'' for families, as well as 
        servicemembers transitioning from active duty to veteran status 
        and funding additional transitional support programs if 
        necessary.
    National Guard and Reserve Members
    The National Military Family Association is especially concerned 
about fewer mental health care services available for the families of 
returning National Guard and Reserve members. Some are eligible for 
TRICARE Reserve Select but, as we know, National Guard and Reserve 
members are often located in rural areas where there may be fewer 
mental health providers available. Policymakers need to address the 
distance issues that families face in linking with military mental 
health resources and obtaining appropriate care. Isolated National 
Guard and Reserve families do not have the benefit of the safety net of 
services provided by MTFs and installation family support programs. 
Families want to be able to access care with a provider who understands 
or is sympathetic to the issues they face. We recommend the use of 
alternative treatment methods, such as telemental health; increasing 
mental health reimbursement rates for rural areas; modifying licensing 
requirements in order to remove geographic practice barriers that 
prevent mental health providers from participating in telemental health 
services; and educating civilian network mental health providers about 
our military culture. We urge DOD to expand information outreach about 
the new TRIAP program, which provides access to non-medical counseling 
via phone and web through the TRICARE managed care support contractors. 
We hear the National Guard Bureau's Psychological Health Services (PHs) 
is not working as designed to address members' mental health issues. 
This program needs to be evaluated to determine its effectiveness.
    Children
    Our Association is concerned about the impact deployment and/or the 
injury of the servicemember is having on our most vulnerable 
population, children of our military servicemember and veterans. Our 
study on the impact of the war on caregivers and children found 
deployments are creating layers of stressors, which families are 
experiencing at different stages. Teens especially carry a burden of 
care they are reluctant to share with the non-deployed parent in order 
to not ``rock the boat.'' They are often encumbered by the feeling of 
trying to keep the family going, along with anger over changes in their 
schedules, increased responsibility, and fear for their deployed 
parent. Children of the National Guard and Reserve members face unique 
challenges since there are no military installations for them to 
utilize. They find themselves ``suddenly military'' without resources 
to support them. School systems are generally unaware of this change in 
focus within these family units and are ill prepared to lookout for 
potential problems caused by these deployments or when an injury 
occurs. Also vulnerable are children who have disabilities that are 
further complicated by deployment and subsequent injury of the 
servicemembers. Their families find stress can be overwhelming, but are 
afraid to reach out for assistance for fear of retribution to the 
servicemember's career. They often choose not to seek care for 
themselves or their families. We appreciate the inclusion of a study on 
the mental health needs of our children in the NDAA for Fiscal Year 
201O.
    The impact of the wounded, ill, and injured on children is often 
overlooked and underestimated. Military children experience a 
metaphorical death of the parent they once knew and must make many 
adjustments as their parent recovers. Many families relocate to be near 
the treating MTF or the VA Polytrauma Center in order to make the 
rehabilitation process more successful. As the spouse focuses on the 
rehabilitation and recovery, older children take on new roles. They may 
become the caregivers for other siblings, as well as for the wounded 
parent. Many spouses send their children to stay with neighbors or 
extended family members, as they tend to their wounded, ill, and 
injured spouse. Children get shuffled from place to place until they 
can be reunited with their parents. Once reunited, they must adapt to 
the parent's new injury and living with the ``new normal.'' We 
appreciate the inclusion of a study to assess the impact on children of 
the severely wounded in the NDAA for Fiscal Year 2010.
    We encourage partnerships between government agencies, DOD, VA, and 
State agencies and recommend they reach out to those private and 
nongovernmental organizations who are experts on children and 
adolescents. They could identify and incorporate best practices in the 
prevention and treatment of mental health issues affecting our military 
children. We must remember to focus on preventative care upstream, 
while still in the active duty phase, in order to have a solid family 
unit as they head into the veteran phase of their lives. School systems 
must become more involved in establishing and providing supportive 
services for our Nation's children.
    Caregiver Burnout
    In the eighth year of war, care for the caregivers must become a 
priority. There are several levels of caregivers. Our Association hears 
from the senior officer and enlisted spouses who are so often called 
upon to be the strength for others. We hear from the health care 
providers, educators, rear detachment staff, chaplains, and counselors 
who are working long hours to assist servicemembers and their families. 
They tell us they are overburdened, burnt out, and need time to 
recharge so they can continue to serve these families. These caregivers 
must be afforded respite care, given emotional support through their 
command structure, and be provided effective family programs.
    Education
    The DOD, VA, and State agencies must educate their health care and 
mental health professionals of the effects of mild Traumatic Brain 
Injury (mTBI) in order to help accurately diagnose and treat the 
servicemember's condition. They must be able to deal with polytrauma-
Post-Traumatic Stress Disorder (PTSD) in combination with multiple 
physical injuries. We need more education for civilian health care 
providers on how to identify signs and symptoms of mild TBI and PTSD.
    The families of servicemembers and veterans must be educated about 
the effects of TBI, PTSD, and suicide in order to help accurately 
diagnose and treat the servicemember/veteran's condition. These 
families are on the ``sharp end of the spear'' and are more likely to 
pick up on changes attributed to either condition and relay this 
information to their health care providers. Programs are being 
developed by each Service. However, they are narrow in focus targeting 
line leaders and health care providers, but not broad enough to capture 
our military family members and the communities they live in. As 
Services roll out suicide prevention programs, we need to include our 
families, communities, and support personnel.
    Reintegration Programs
    Reintegration programs become a key ingredient in the family's 
success. Our Association believes we need to focus on treating the 
whole family with programs offering readjustment information; education 
on identifying mental health, substance abuse, suicide, and traumatic 
brain injury; and encouraging them to seek assistance when having 
financial, relationship, legal, and occupational difficulties. We 
appreciate the inclusion in the NDAA for Fiscal Year 2010 for education 
programs targeting pain management and substance abuse for our 
families.
    Successful return and reunion programs will require attention over 
the long term, as well as a strong partnership at all levels between 
the various mental health arms of DOD, VA, and State agencies. DOD and 
VA need to provide family and individual counseling to address these 
unique issues. Opportunities for the entire family and for the couple 
to reconnect and bond must also be provided. Our Association has 
recognized this need and successfully piloted family retreats in the 
national parks promoting family reintegration following deployment.
    We recommend an extended outreach program to servicemembers, 
veterans, and their families of available psychological health 
resources, such as DOD, VA, and State agencies.
    We encourage Congress to request DOD to include families in its 
Psychological Health Support survey; perform a pre- and post-deployment 
mental health screening on family members (similar to the PDHA and 
PDHRA currently being done for servicemembers).
    We recommend the use of alternative treatment methods, such as 
telemental health; increasing mental health reimbursement rates for 
rural areas; modifying licensing requirements in order to remove 
geographic practice barriers that prevent mental health providers from 
participating in telemental health services; and educating civilian 
network mental health providers about our military culture.
    Caregivers must be afforded respite care; given emotional support 
through their command structure; and, be provided effective family 
programs.
Wounded Servicemembers Have Wounded Families
    Our Association asserts that behind every wounded servicemember and 
veteran is a wounded family. It is our belief the government, 
especially the DOD and VA, must take a more inclusive view of military 
and veterans' families. Those who have the responsibility to care for 
the wounded, ill, and injured servicemember must also consider the 
needs of the spouse, children, parents of single servicemembers and 
their siblings, and the caregivers. DOD and VA need to think 
proactively as a team and one system, rather than separately; and 
addressing problems and implementing initiatives upstream while the 
servicemember is still on active duty status.
    Reintegration programs become a key ingredient in the family's 
success. For the past 2 years, we have piloted our Operation 
Purple"'HealingAdventures camp to help wounded servicemembers and their 
families learn to play again as a family. We hear from the families who 
participate in this camp, as well as others dealing with the recovery 
of their wounded servicemembers that, even with Congressional 
intervention and implementation of the Services' programs, many issues 
still create difficulties for them well into the recovery period. 
Families find themselves having to redefine their roles following the 
injury of the servicemember. They must learn how to parent and become a 
spouse/lover with an injury. Each member needs to understand the unique 
aspects the injury brings to the family unit. Parenting from a 
wheelchair brings a whole new challenge, especially when dealing with 
teenagers. Parents need opportunities to get together with other 
parents who are in similar situations and share their experiences and 
successful coping methods. Our Association believes we need to focus on 
treating the whole family with DOD and VA programs offering skill based 
training for coping, intervention, resiliency, and overcoming 
adversities. Injury interrupts the normal cycle of deployment and the 
reintegration process. We must provide opportunities for the entire 
family and for the couple to reconnect and bond, especially during the 
rehabilitation and recovery phases.
    Brooke Army Medical Center (BAMC) has recognized a need to support 
these families by expanding in terms of guesthouses colocated within 
the hospital grounds and a family reintegration program for their 
Warrior Transition Unit. The on-base school system is also sensitive to 
issues surrounding these children. A warm, welcoming family support 
center located in guest housing serves as a sanctuary for family 
members. The DOD and VA could benefit from looking at successful 
programs like BAMCs, which has found a way to embrace the family unit 
during this difficult time.
    The Vet Centers are an available resource for veterans' families 
providing adjustment, vocational, and family and marriage counseling. 
The VA health care facilities and the community-based outpatient 
clinics (CBOCs) have a ready supply of mental health providers, yet 
regulations have restricted their ability to provide mental health care 
to veterans' families unless they meet strict standards. Unfortunately, 
this provision hits the veteran's caregiver the hardest, especially if 
they are the parents. We recommend DOD partner with the VA to allow 
military families access to mental health services. We also believe 
Congress should require the VA, through its Vet Centers and health care 
facilities to develop a holistic approach to care by including families 
when providing mental health counseling and programs to the wounded, 
ill, and injured servicemember or veteran.
    The Defense Health Board has recommended DOD include military 
families in its mental health studies. We agree. We encourage Congress 
to direct DOD to include families in its Psychological Health Support 
survey; perform a pre- and post-deployment mental health screening on 
family members (similar to the PDHA and PDHRA currently being done for 
servicemembers). We appreciate the NDAA for Fiscal Year 2010 report on 
the impact of the war on families and the DOD's Millennium Cohort Study 
including families. Both will help us gain a better understanding of 
the long-term effects of war on our military families.
    Transitioning for the Wounded and Their Families
    Transitions can be especially problematic for wounded, ill, and 
injured servicemembers, veterans, and their families. The DOD and the 
VA health care systems, along with State agency involvement, should 
alleviate, not heighten these concerns. They should provide for 
coordination of care, starting when the family is notified that the 
servicemember has been wounded and ending with the DOD, VA, and State 
agencies working together, creating a seamless transition, as the 
wounded servicemember transfers between the two agencies' health care 
systems and, eventually, from active duty status to veteran status.
    Transition of health care coverage for our wounded, ill, and 
injured and their family members is a concern of our Association. These 
servicemembers and families desperately need a health care bridge as 
they deal with the after effects of the injury and possible reduction 
in their family income. We have created two proposals. servicemembers 
who are medically retired and their families should be treated as 
active duty for TRICARE fee and eligibility purposes for 3 years 
following medical retirement. This proposal will allow the family not 
to pay premiums and be eligible for greater access to care at certain 
MTFs and for certain benefits offered to active duty families for 3 
years. Following that period, they would pay TRICARE premiums at the 
rate for retirees. servicemembers medically discharged from service and 
their family members should be allowed to continue for 1 year as active 
duty for TRICARE benefits and then move into the Continued Health Care 
Benefit Program (CHCBP) if needed.
    Caregivers
    Caregivers need to be recognized for the important role they play 
in the care of their loved one. Without them, the quality of life of 
the wounded servicemembers and veterans, such as physical, psycho-
social, and mental health, would be significantly compromised. They are 
viewed as an invaluable resource to DOD and VA health care providers 
because they tend to the needs of the servicemembers and the veterans 
on a regular basis. Their daily involvement saves DOD, VA, and State 
agency health care dollars in the long run. Their long-term 
psychological care needs must be addressed. Caregivers of the severely 
wounded, ill, and injured servicemembers who are now veterans have a 
long road ahead of them. In order to perform their job well, they will 
require access to mental health services.
    The VA has made a strong effort in supporting veterans' caregivers. 
The DOD should follow suit and expand their definition. We appreciate 
the inclusion in NDAA for Fiscal Year 2010 of compensation for 
servicemembers with assistance in everyday living. However, our 
Association believes this provision does not go far enough. In order to 
perform their job well, caregivers must be taught the skills to be 
successful.
    Compensation of caregivers should be a priority for DOD and the 
Secretary of Homeland Security. Caregivers must be recognized for their 
sacrifices and the important role they play in maintaining the quality 
of life of our wounded servicemembers and veterans. Financial 
compensation must be established for caregivers of injured 
servicemembers and veterans that begin while the hospitalized 
servicemember is still on active duty and transitions seamlessly to a 
VA benefit. Current law creates a potential gap in compensation during 
transition from active duty to veteran status. Our Association proposes 
that compensation should reflect the types of medical and non-medical 
care services provided by the caregiver. The caregiver should be paid 
directly for their services. Non-medical care should be factored into a 
monthly stipend tied to severity of injury--cognitive and physical 
injury and illness-and care provided. In order to perform their job 
well, caregivers must be taught the skills to be successful. This will 
require the caregiver to be trained through a standardized, certified 
program. Compensation for medical care should be an hourly wage linked 
to training and certification of the caregiver paid for by the VA and 
transferrable to employment in the civilian sector if the care is no 
longer needed by the servicemember or veteran.
    Consideration should also be given to creating innovative ways to 
meet the health care and insurance needs of the caregiver, with an 
option to include their family. Current proposed legislation does not 
include a ``family'' option. Additional services caregivers need are: 
respite care, such as 24 hour in-home care, mental health services, and 
travel and lodging expenses when accompanying servicemembers and 
veterans for medical care.
    There must be a provision for transition benefits for the caregiver 
if the caregiver's services are no longer needed, chooses to no longer 
participate, or is asked by the veteran to no longer provide services. 
The caregiver should still be able to maintain health care coverage for 
1 year. Compensation would discontinue following the end of services/
care provided by the caregiver. Our Association looks forward to 
discussing details of implementing such a plan with members of this 
subcommittee.
    The VA currently has eight caregiver assistance pilot programs to 
expand and improve health care education and provide needed training 
and resources for caregivers who assist disabled and aging veterans in 
their homes. DOD should evaluate these pilot programs to determine 
whether to adopt them for caregivers of servicemembers still on active 
duty. Caregivers' responsibilities start while the servicemember is 
still on active duty.
    Relocation Allowance and Housing
    Active duty servicemembers and their spouses qualify through the 
DOD for military orders to move their household goods when they leave 
the military service. Medically retired servicemembers are given a 
final PCS move. Medically retired married servicemembers are allowed to 
move their family; however, medically retired single servicemembers 
only qualify for moving their own personal goods.
    Our Association suggests that legislation be passed to allow 
medically retired single servicemembers the opportunity to have their 
caregiver's household goods moved as a part of the medical retired 
single servicemember's PCS move. This should be allowed for the 
qualified caregiver of the wounded servicemember and the caregiver's 
family (if warranted), such as a sibling who is married with children 
or mom and dad. This would allow for the entire caregiver's family to 
move, not just the caregiver. The reason for the move is to allow the 
medically retired single servicemember the opportunity to relocate with 
their caregiver to an area offering the best medical care, rather than 
the current option that only allows for the medically retired single 
servicemember to move their belongings to where the caregiver currently 
resides. The current option may not be ideal because the area in which 
the caregiver lives may not be able to provide all the health care 
services required for treating and caring for the medically retired 
servicemember. Instead of trying to create the services in the area, a 
better solution may be to allow the medically retired servicemember, 
their caregiver, and the caregiver's family to relocate to an area 
where services already exist.
    The decision on where to relocate for optimum care should be made 
with the Federal Recovery Coordinator (case manager), the 
servicemember's medical physician, the servicemember, and the 
caregiver. All aspects of care for the medically retired servicemember 
and their caregiver shall be considered. These include a holistic 
examination of the medically retired servicemember, the caregiver, and 
the caregiver's family for, but not limited to, their needs and 
opportunities for health care, employment, transportation, and 
education. The priority for the relocation should be where the best 
quality of services is readily available for the medically retired 
servicemember and higher caregiver.
    The consideration for a temporary partial shipment of caregiver's 
household goods may also be allowed, if deemed necessary by the case 
management team.
    Medical Power of Attorney
    We have heard from caregivers of the difficult decisions they have 
to make over their loved one's bedside following an injury. We support 
the Traumatic Brain Injury Task Force recommendation for DOD to require 
each deploying servicemember to execute a Medical Power of Attorney and 
a Living Will.
    Provide medically-retired wounded, ill, and injured servicemembers 
and their families a bridge of extended active duty TRICARE e1igibility 
for 3 years, comparable to the benefit for surviving spouses.
    Servicemembers medically discharged from Service and their family 
members should be allowed to continue for 1 year as active duty for 
TRICARE and then start the Continued Health Care Benefit Program 
(CHCBP) if needed.
    Caregivers of the wounded, ill, and injured must be provided with 
opportunities for training, compensation and other support programs 
because of the important role they play in the successful 
rehabilitation and care of the servicemember.
    The National Military Family Association is requesting the ability 
for medically retired single servicemembers to be allowed the 
opportunity to have their caregiver's household goods moved as a part 
of the medically retired single servicemember's PCS move.
    DOD should require each deploying servicemember to execute a 
Medical Power of Attorney and a Living Will.
    Senior Oversiqht Committee
    Our Association is appreciative of the provision in the NDAA for 
Fiscal Year 2010 establishing a DOD Task Force on the Care, Management, 
and Transition of Recovery, Wounded, Ill, and Injured Members of the 
Armed Forces to access policies and programs. We understand the Office 
of Wounded Warrior Care and Transition Policy (WWCTP), a permanent 
structure for the Senior Oversight Committee, is in the process of 
being established and manned. This Task Force will be independent and 
in a position to monitor DOD and VA's partnership initiatives for our 
wounded, ill, and injured servicemembers and their families, while this 
organization is being created.
    The National Military Family Association encourages all committees 
with jurisdiction over military personnel and veterans matters to talk 
on these important issues. We can no longer continue to create policies 
in a vacuum and be content on focusing on each agency separately 
because this population moves too frequently between the two agencies, 
especially our wounded, ill, and injured servicemembers and their 
families.
    We would like to thank you again for the opportunity to provide 
information on the health care needs for the servicemembers, veterans, 
and their families. Military families support the Nation's military 
missions. The least their country can do is make sure servicemembers, 
veterans, and their families have consistent access to high quality 
mental health care in the DOD, VA, and within network civilian health 
care systems. Wounded servicemembers and veterans have wounded 
families. The caregiver must be supported by providing access to 
quality health care and mental health services, and assistance in 
navigating the health care systems. The system should provide 
coordination of care with DOD, VA, and State agencies working together 
to create a seamless transition. We ask Congress to assist in meeting 
that responsibility.
                        iii. family transitions
Survivors
    In the past year, the Services have increased their outreach to 
surviving families. In particular, the Army's Survivor Outreach 
Services (SOS) program makes an effort to remind these families that 
they are not forgotten. DOD and the VA must work together to ensure 
surviving spouses and their children can receive the mental health 
services they need, through all of VA's venues. New legislative 
language governing the TRICARE behavioral health benefit may also be 
needed to allow TRICARE coverage of bereavement or grief counseling. 
The goal is the right care at the right time for optimum treatment 
effect. DOD and the VA need to better coordinate their mental health 
services for survivors and their children.
    We thank Congress for extending the TRICARE active duty family 
dental insurance benefit to surviving children. The current TRICARE 
Management Activity policy directive allows for the surviving children 
of Reserve component servicemembers who had not previously been 
enrolled to be eligible for the expanded benefit. We ask that 
eligibility be expanded to those active duty family members who had not 
been enrolled in the active duty TRICARE dental insurance program prior 
to the servicemember's death.
    Our Association recommends that eligibility be expanded to active 
duty survivors who had not been enrolled in the TRICARE Dental Program 
prior to the servicemember's death. We also recommend that grief 
counseling be more readily available to survivors.
    Our Association still believes the benefit change that will provide 
the most significant long-term advantage to the financial security of 
all surviving families would be to end the Dependency and Indemnity 
Compensation (DIC) offset to the Survivor Benefit Plan (SBP). Ending 
this offset would correct an inequity that has existed for many years. 
Each payment serves a different purpose. The DIC is a special indemnity 
(compensation or insurance) payment paid by the VA to the survivor when 
the servicemember's service causes his or her death. The SBP annuity, 
paid by DOD, reflects the longevity of the service of the military 
member. It is ordinarily calculated at 55 percent of retired pay. 
Military retirees who elect SBP pay a portion of their retired pay to 
ensure that their family has a guaranteed income should the retiree 
die. If that retiree dies due to a service-connected disability, their 
survivor becomes eligible for DIC.
    Surviving active duty spouses can make several choices, dependent 
upon their circumstances and the ages of their children. Because SBP is 
offset by the DIC payment, the spouse may choose to waive this benefit 
and select the ``child only'' option. In this scenario, the spouse 
would receive the DIC payment and the children would receive the full 
SBP amount until each child turns 18 (23 if in college), as well as the 
individual child DIC until each child turns 18 (23 if in college). Once 
the children have left the house, this choice currently leaves the 
spouse with an annual income of $13,848, a significant drop in income 
from what the family had been earning while the servicemember was alive 
and on active duty. The percentage of loss is even greater for 
survivors whose servicemembers served longer. Those who give their 
lives for their country deserve more fair compensation for their 
surviving spouses.
    We believe several other adjustments could be made to the SBP. 
Allowing payment of the SBP benefits into a Special Needs Trust in 
cases of disabled beneficiaries will preserve their eligibility for 
income based support programs. The government should be able to switch 
SBP payments to children if a surviving spouse is convicted of 
complicity in the member's death.
    We believe there needs to be DIC equity with other Federal survivor 
benefits. Currently, DIC is set at $1,154 monthly (43 percent of the 
Disabled Retirees Compensation). Survivors of Federal workers have 
their annuity set at 55 percent of their Disabled Retirees 
Compensation. Military survivors should receive 55 percent of VA 
Disability Compensation. We are pleased that the requirement for a 
report to assess the adequacy of DIC payments was included in the NDAA 
for Fiscal Year 2009. We are awaiting the overdue report. We support 
raising DIC payments to 55 percent of VA Disability Compensation. When 
changes are made, ensure that DIC eligibles under the old system 
receive an equivalent increase.
    We ask the DIC offset to SBP be eliminated to recognize the length 
of commitment and service of the career servicemember and spouse. We 
also request that SBP benefits may be paid to a Special Needs Trust in 
cases of disabled family members.
    We ask that DIC be increased to 55 percent of VA Disability 
Compensation.
Education of Military Children
    The National Military Family Association would like to thank 
Congress for including a ``Sense of Congress'' in regards to the 
Interstate Compact on Educational Opportunity for Military Children in 
last year's National Defense Authorization Act. The Compact has now 
been adopted in 27 States and covers over 80 percent of our military 
children. The Interstate Commission, the governing body of the Compact, 
is working to educate military families, educators, and States on the 
appropriate usage of the Compact. The adoption of the Compact is a 
tremendous victory for military families who place a high value on 
education.
    However, military families define the quality of that education 
differently than most States or districts that look only at issues 
within their boundaries. For military families, it is not enough for 
children to be doing well in their current schools, they must also be 
prepared for the next location. The same is true for children in under 
performing school systems. Families are concerned that they will lag 
behind students in the next location. With many States cutting 
educational programs due to the economic downturn, this concern is 
growing. A prime example is Hawaii, which opted to furlough teachers on 
Fridays, cutting 17 days from the school calendar. With elementary 
schools already on a shortened schedule for Wednesday, these students 
are only getting 3\1/2\ days of instruction a week. In addition, the 
recent cuts have made it increasingly hard for schools to meet IEP 
requirements for special needs students. Furthermore, Hawaii is 
requiring parents to pay more for busing, and the cost of school meals 
have gone up 76 percent. Our Association believes that Hawaii's cuts 
are just the ``tip of the iceberg'' as we are beginning to see other 
States make tough choices as well. Although Hawaii's educational system 
has long been a concern for military families, many of whom opt for 
expensive private education, Hawaii is not the only place where parents 
have concerns. The National Military Family Association believes that 
our military children deserve to have a good quality education wherever 
they may live. However, our Association recognizes that how we provide 
that quality education may differ in each location.
    We urge Congress to encourage solutions for the current educational 
situation in Hawaii and recognize that servicemembers' lack of 
confidence that their children may receive a quality education in an 
assignment location can affect the readiness of the force in that 
location.
    While our Association remains appreciative for the additional 
funding Congress provides to civilian school districts educating 
military children, Impact Aid continues to be underfunded. We urge 
Congress to provide appropriate and timely funding of Impact Aid 
through the Department of Education. In addition, we urge Congress to 
increase DOD Impact Aid funding for schools educating large numbers of 
military children to $60 million for fiscal year 2011. We also ask 
Congress to include an additional $5 million in funding for special 
needs children. The DOD supplement to Impact Aid is critically 
important to ensure school districts provide quality education for our 
military children.
    As increased numbers of military families move into new communities 
due to Global Rebasing and BRAC, their housing needs are being met 
further and further away from the installation. Thus, military children 
may be attending school in districts whose familiarity with the 
military lifestyle may be limited. Educating large numbers of military 
children will put an added burden on schools already hard-pressed to 
meet the needs of their current populations. We urge Congress to 
authorize an increase in this level of funding until BRAC and Global 
Rebasing moves are completed.
    Once again, we thank Congress for passing the Higher Education 
Opportunity Act of 2008, which contained many new provisions affecting 
military families. Chief among them was a provision to expand in-State 
tuition eligibility for military servicemembers and their families, and 
provide continuity of in-State rates if the servicemember receives 
Permanent Change of Station (PCS) orders out of State. However, family 
members have to be currently enrolled in order to be eligible for 
continuity of in-State tuition. Our Association is concerned that this 
would preclude a senior in high school from receiving in-State tuition 
rates if his or her family PCS's prior to matriculation. We urge 
Congress to amend this provision.
    We ask Congress to increase the DOD supplement to Impact Aid to $60 
million to help districts better meet the additional demands caused by 
large numbers of military children, deployment-related issues, and the 
effects of military programs and policies. We also ask Congress provide 
$5 million for school districts with Special Needs children.
Support for Military Voters
    The National Military Family Association would like to thank 
Congress for passing the Military and Overseas Voter Empowerment (MOVE) 
Act which was included in the National Defense Authorization Act for 
Fiscal Year 2010. As a member of the Alliance for Military and Overseas 
Voting Rights (AMOVR), our Association worked hard to pass this 
important legislation which resolves many of the absentee voting issues 
for our military servicemembers and their families. The passage of the 
MOVE ACT was a tremendous victory for our military community whose very 
service helps protect the right to vote.
Spouse Education and Employment
    Our Association wishes to thank Congress for recent enhancement to 
spouse education opportunities. In-State tuition, Post-September 11 
G.I. bill transferability to spouses and children, and other 
initiatives have provided spouses with more educational opportunities 
than previous years.
    Since 2004, our Association has been fortunate to sponsor our 
Joanne Holbrook Patton Military Spouse Scholarship Program, with the 
generosity of donors who wish to help military families. Our 2010 
application period closed on January 31, 2010. We saw a 33 percent 
increase in applications from previous years with more than 8,000 
military spouses applying to our program. Military spouses remain 
committed to their education and need assistance from Congress to 
fulfill their educational pursuits.
    We have heard from many military spouses who are pleased with the 
expansion of the Military Spouse Career Advancement Accounts, now 
called MyCAA. Unfortunately the abrupt halt of the program on February 
16, 2010 has created a financial burden and undue stress for military 
spouses. Spouses who have established accounts and those who planned to 
set-up accounts in the future have been barred for accessing funds. The 
MyCAA system only permitted users to request financial assistance 30 
days prior to a class start date. Many, who had planned on the funding, 
will not receive it, if they didn't have a start date entered into the 
system by February 16. We ask Congress to push DOD to restart this 
critical program and find a way to assist spouses who have been 
abruptly cut-off from receiving funding. We also ask Congress to fully 
fund the MyCAA program, which is providing essential educational and 
career support to military spouses. The MyCAA program is not available 
to all military spouses. We ask Congress to work with the appropriate 
Service Secretary to expand this funding to the spouses of Coast Guard, 
the Commissioned Corps of NOAA and U.S. Public Health Service.
    Our Association thanks you for establishing a pilot program to 
secure internships for military spouses with Federal agencies. Military 
spouse are anxious for the program to launch and look forward to 
enhanced career opportunities through the pilot program. We hope 
Congress will monitor the implementation of the program to ensure 
spouses are able to access the program and eligible spouses are able to 
find Federal employment after successful completion of the internship 
program.
    To further spouse employment opportunities, we recommend an 
expansion to the Workforce Opportunity Tax Credit for employers who 
hire spouses of active duty and Reserve component servicemembers, and 
to provide tax credits to military spouses to offset the expense in 
obtaining career licenses and certifications when servicemembers are 
relocated to a new duty station within a different State.
    The Services are experiencing a shortage of medical, mental health 
and child care providers. Many of our spouses are trained in these 
professions or would like to seek training in these professions. We 
think the Services have an opportunity to create portable career 
opportunities for spouses seeking in-demand professions. In addition to 
the MyCAA funding, what can the Services do to encourage spouse 
employment and solve provider shortages? We would like to see the 
Services reach out to military spouses and offer affordable, flexible 
training programs in high demand professions to help alleviate provider 
shortages.
    Our Association urges Congress to recognize the value of military 
spouses by fully funding the MyCAA program, and by creating training 
programs and employment opportunities for military spouses in high 
demand professions to help fill our provider shortages.
Military Families--Our Nation's Families
    We thank you for your support of our servicemembers and their 
families and we urge you to remember their service as you work to 
resolve the many issues facing our country. Military families are our 
Nation's families. They serve with pride, honor, and quiet dedication. 
Since the beginning of the war, government agencies, concerned citizens 
and private organizations have stepped in to help. This increased 
support has made a difference for many servicemembers and families, 
yet, some of these efforts overlap while others are ineffective. In our 
testimony, we believe we have identified improvements and additions 
that can be made to already successful programs while introducing 
policy or legislative changes that address the ever-changing needs of 
our military families. Working together, we can improve the quality of 
life for all these families.
    Senator Webb. Thank you very much.
    Mr. Cline.
    STATEMENT OF MASTER SERGEANT MICHAEL CLINE, USA (RET.), 
EXECUTIVE DIRECTOR, ENLISTED ASSOCIATION OF THE NATIONAL GUARD 
                      OF THE UNITED STATES
    Mr. Cline. Mr. Chairman, we thank you, on behalf of the 
Enlisted Association of the National Guard of the United States 
and the Military Coalition, for holding these hearings.
    Mr. Chairman, over 142,000 National Guard and Reserve 
servicemembers are serving on Active Duty. Since September 11, 
2001, more than 752,000 of our citizens, soldiers, airmen, 
sailors, marines, Guard and Reserve servicemembers, have been 
called up, including well over 200,000 who have served multiple 
tours.
    With your permission, Mr. Chairman, I'd like to cut out the 
fluff and just get to the point of the needs of our Guard and 
Reserve people and their families.
    The next step in modernizing the Reserve retirement system 
is to provide equal retirement age reduction credit for all 
activated service rendered since September 11, 2001. The 
current law that credits only active service since January 28, 
2008, disenfranchises and devalues the service of hundreds of 
thousands of Guard and Reserve members who have served combat 
tours, many with multiple combat tours, between 2001 and 2008.
    The statute also must be amended to eliminate the inequity 
inherent in the current fiscal year retirement calculation, 
which only credits 90 days of active service for early 
retirement purposes if it occurs within the same fiscal year. 
The current rule significantly penalizes members who deploy in 
July or August, versus those deploying earlier in the fiscal 
year. It is potently unfair, as the current law requires giving 
3 months retirement-age credit for 90-day tours served from 
January through March, but only half credit for 120-day tours 
served from August through November, because the latter covers 
60 days in each of the 2 fiscal years.
    Mr. Chairman, we fully understand the budgetary problems 
facing our country, but we're also aware that more than $700 
billion was given to banks, financial institutions, automakers; 
$3 billion for Cash for Clunkers was spent, in 3 weeks, that 
did nothing more than reduce the inventory of autodealers; the 
American people, many of which are the very veterans who have 
been passed by, are looking at a trillion-dollar healthcare 
bill. If CBO figures are accurate, it will cost $2.1 billion 
over 10 years, or just about $21 million a year, to provide 
retroactivity for early retirement for those who have protected 
our freedom. It's the right thing to do to honor the unselfish 
heroes and their families who have given up so much to protect 
us and our way of life.
    For the near term, we place particular priority on 
authorizing early retirement credit for all qualifying post-
September 11 Active Duty service performed by Guard and Reserve 
members, and eliminating the fiscal-year-specific accumulator 
that bars equal credit for members deploying for equal periods 
during different months of the year. Ultimately, we believe we 
must move forward to provide a reduced-age entitlement for 
retired pay and health coverage for all Reserve component 
members that is an age-service formula or outright eligibility, 
if otherwise qualified, at age 55.
    Further, we urge repeal of the annual cap of 130 days of 
inactive duty points that may be credited towards a Reserve 
retirement.
    Yellow Ribbon. We urge the subcommittee to hold oversight 
hearings and to direct additional improvements in coordination 
and collaboration and consistency of Yellow Ribbon services. 
DOD must ensure that State-level best practices, such as those 
in Maryland, Minnesota, and New Hampshire, are applied for all 
operational Reserve Force members and their families, and that 
Federal Reserve veterans have equal access to services and 
support available to National Guard veterans. Community groups, 
employers, and Service organizations' efforts need to be 
encouraged and better coordinated to supplement unit, 
component, Service, and VA outreach and service.
    We are grateful to you, in Congress, for inclusion of a 
critical ``earn as you serve'' principle, in the post-September 
11 GI Bill, which allows operational reservists to accumulate 
additional benefits for each aggregate call-up of 90 days or 
more on Active Duty. However, Active Duty members of the 
National Guard serving under Title 32 orders were not included 
in the new program, despite their critical role in homeland 
defense, counterdrug, border control, and other missions. We 
urge this subcommittee to work with the Veterans Affairs 
Committee to include Title 32 AGRs in the post-September 11 
statute.
    The Military Coalition's longstanding recommendation of 
coordinating and integrating various educational benefit 
programs has been made more challenging with the post-September 
11 GI Bill. For example, benefits for initially joining the 
Guard and Reserve, as authorized under Chapter 1606 of title 
10, continue to decline in proportion to the Active Duty 
Montgomery GI Bill, Chapter 30, title 38, in the new post-
September 11 GI Bill. Reserve MGIB benefit levels have slipped 
to 24 percent of the Active Duty MGIB benefit, compared to 47 
to 50 percent during the first 15 years of the program. 
Restoration of the original ratio would raise basic Reserve 
rates from the current $333 a month to $643 to $684 a month for 
full-time duty. TMC maintains that restoring the ratio is not 
only a matter of equity, but essential to long-time success of 
the Guard and Reserve recruiting program.
    Continuing healthcare insurance options for the Guard and 
Reserve. The Coalition is very grateful for the passage of 
TRICARE for gray-area retirees; however, we're very 
disappointed that it's going to take DOD 18 months to implement 
the new program. As we have sent letters to you, we ask that 
you intervene with DOD to speed this program up. It's a 
benefit----
    Senator Graham. Absolutely.
    Mr. Cline.--that is needed.
    Senator Graham. Absolutely.
    Mr. Cline. When we look at the TRICARE Reserve Select 
Program, a disturbing fact is that only 6 to 7 percent of our 
eligible beneficiaries are taking advantage of the TRICARE 
Reserve Select Program. DOD and the Services and the Reserve 
components must do more to advertise the TRS program.
    The Coalition also believes that Congress is missing an 
opportunity to reduce long-term healthcare costs and increase 
beneficiary satisfaction by authorizing eligible members the 
option of electing a DOD subsidy of their civilian insurance 
during periods of activation. Current law already authorizes 
payment of up to 24 months of FEHBP premiums for activated 
members who are civilian employees of the Defense Department. 
Over the long term, the Guard and Reserve activations can be 
expected at a reduced pace. This option would offer 
considerable savings opportunities, relative to DOD permanent, 
year-round TRICARE.
    We recommend to the subcommittee--require a GAO review of 
DOD's methodology for determining TRS costs for premium 
adjustment purposes to assess whether it includes any costs of 
maintaining readiness or ``costs of doing business'' for DOD 
that don't contribute to beneficiary benefit values, and thus 
excluded from cost premium calculations.
    Mr. Chairman, I look forward to any questions that you or 
Senator Graham may have.
    Senator Webb. Thank you very much.
    Ms. Holleman.
 STATEMENT OF DEIRDRE PARKE HOLLEMAN, EXECUTIVE DIRECTOR, THE 
                  RETIRED ENLISTED ASSOCIATION
    Ms. Holleman. Good morning. Mr. Chairman----
    Senator Webb. Good afternoon, actually. [Laughter.]
    Ms. Holleman. Good afternoon.
    Senator Graham. My stomach says it's afternoon.
    Ms. Holleman. Life goes quickly, right?
    It is an honor to speak to you today about the Military 
Coalition's legislative goals concerning military retirees and 
military survivors. I know you will not be surprised that TMC 
is urging you to, once and for all, end the unfair offset of 
military retired pay by VA disability pay.
    We are grateful for the great strides that have been made 
in ending this practice, which we all now acknowledge is 
terribly unfair. But, there are two groups of valiant retirees 
who are not getting the relief that you ordered for the others. 
One group is those longevity retirees with VA disabilities of 
10 to 40 percent. The other group is those servicemembers who 
were forced to medically retire with less than 20 years, due to 
an injury or medical condition that is not deemed combat-
related under the Combat Related Special Compensation program. 
Even in these tough economic times, simple fairness should call 
for the end of the offset for all. But, even more dramatically, 
the President, for the second year, has proposed, in his 
budget, to end the offset for medical retirees. To have the 
administration propose a change that, in the past, was the goal 
of only you, in Congress, is a historic opportunity. We 
strongly urge you to join the President in this laudable goal 
and end the offset for medical retirees now.
    It is also clearly time to finally end the Survivor Benefit 
Plan (SBP)/Dependency and Indemnity Compensation (DIC) offset. 
SBP is an employee benefit, while DIC is an indemnity program 
for survivors of those who died because of their service in the 
military. The present practice of taking a dollar from a 
survivor's SBP payment for every dollar paid by the VA's DIC 
program is unfair and illogical. Legislation to end this offset 
is pending in both Houses of Congress. Now that Senator Bill 
Nelson's S. 535 has 55 cosponsors, and Representative Ortiz's 
H.R. 811 has 319 cosponsors, it is clear that a majority of the 
Members of Congress agree that this offset should end. It 
should end now, while our servicemembers are fighting in two 
wars and at risk throughout the world.
    While these two issues are of great and continuing concern 
to all of the members of the Coalition, there are several 
additional matters that we believe are critically important. We 
urge you to support Senator Blanche Lincoln's soon-to-be-
introduced legislation that will be a companion bill to 
Representative Walter Jones's H.R. 613. Their Military Retirees 
Survivor Comfort Acts would authorize the retention of the full 
month's retired pay of the last month of a retiree's life by 
his or her surviving spouse. Presently, DFAS removed the 
month's retired pay from the retiree account, calculates how 
much is owed by how many days the retiree lived in the month 
that he or she died in, and then returns the prorated share to 
the survivor. This method can cause confusion and even bounce 
checks during a tremendously tense and sorrowful time. Senator 
Lincoln's bill would stop this, and treat military retiree 
survivors the same way as disabled veteran survivors are 
treated concerning the disability payments.
    The Uniformed Services Former Spouse Protection Act 
desperately needs improvement. While some organizations want 
dramatic fundamental changes, and other groups adamantly do 
not, it truly is time that we had a hearing on this rather 
explosive issue. There are already several improvements that 
DOD has supported, for years, that could be made during this 
session. These changes include basing the amount awarded in a 
divorce on the grade and years of service at the time of the 
divorce, rather than at the time of retirement, and prohibiting 
the inclusion of imputed income in a divorce property award, 
which often forces Active Duty members into retirement. A full 
list of our suggestions can be found in our written testimony.
    Finally, we urge that DFAS be allowed to make SBP payments 
into a Special Needs Trust. Presently, they may only pay SBP to 
a person. This means that a permanently disabled survivor 
cannot make use of this State-created legal device that allows 
a disabled person to protect their eligibility for SSI, 
Medicaid, and State means-tested programs. With the help of 
supporters like you, Chairman Webb, we hope that this change 
will be made. It would only affect a few people, but for those 
survivors, this small change would be an enormous help.
    Thank you for your time, and may I have the honor to 
introduce Colonel Strobridge.
    Senator Webb. Thank you very much for your testimony.
    Colonel Strobridge.
  STATEMENT OF STEVEN P. STROBRIDGE, USAF (RET.), DIRECTOR OF 
 GOVERNMENT RELATIONS, MILITARY OFFICERS ASSOCIATION OF AMERICA
    Colonel Strobridge. Mr. Chairman, Senator Graham, my 
testimony is going to focus on healthcare and Wounded Warrior 
issues.
    The primary issue for all beneficiaries is access. The 
primary threat to access continues to be the perpetual threat 
of major cuts in Medicare and TRICARE payments to doctors. We 
fully realize that's beyond the authority of this subcommittee, 
but it is the number-one healthcare issue among our 
beneficiaries.
    On national healthcare reform, the principal issues for our 
members in the coalition are ensuring protection of military-
unique health benefits, including TRICARE For Life, and 
protection of uniformed services beneficiaries from taxation on 
the value of those benefits.
    On TRICARE fees, we're grateful that the administration has 
not proposed any increases for fiscal year 2011, however, 
without congressional action, the TRICARE standard outpatient 
deductible will be increased administratively by more than $110 
per day as of October 1. Last October, the subcommittee acted, 
during conference action on the National Defense Authorization 
Act, to stop that change. We urge you to put a provision in 
law, capping the outpatient deductible at the current $535 per 
day, which the coalition believes is plenty high enough and 
should not be increased for the foreseeable future.
    We also ask you to put a ``Sense of Congress'' provision in 
the National Defense Authorization Act, as the Senate approved 
last year, highlighting the importance of military health 
benefits in offsetting the adverse conditions of service and 
recognizing that military people pay large upfront premiums 
through decades of service and sacrifice, over and above their 
cash fees.
    On Wounded Warriors, we're concerned that the change of the 
administration has left many senior positions vacant for more 
than a year, and that close joint oversight previously provided 
by top leaders has been delegated and diffused back along 
agency-centric lines. The coalition is particularly concerned 
that the diminution of the Senior Oversight Committee, or SOC, 
has weakened day-to-day oversight of, and priority on, joint 
agency operations and management. We urge revitalization of the 
SOC, or a similar joint agency staffed with senior officials 
with full-time primary oversight responsibility for seamless 
transition initiatives.
    Similarly, the transition from Active Duty to retiree care 
or to VA coverage still catches many wounded warriors and their 
families unaware. They need the same protections that we 
provide when someone dies on Active Duty: 3 years of continued 
Active Duty-level coverage to ensure a smooth transition to the 
next phase of their life.
    We appreciate the subcommittee's efforts last year to 
provide caregiver benefits on a par with what's provided by the 
VA. The Veterans Affairs Committees are now finalizing 
significant upgrades for caregivers, and we hope you'll act to 
reestablish comparability of DOD programs once that happens.
    Regarding psychological health, PTSD, and TBI, we know the 
subcommittee and DOD and the Services are pursuing a wide range 
of initiatives to enhance access to care and counseling, and to 
remove the stigma from seeking care. Unfortunately, some facets 
of the military environment continue to undermine those 
efforts. In that regard, many who suffer after-effects of 
combat continue being barred from reenlistment, or separated 
for other reasons, because service disciplinary and 
administrative systems are much less flexible and resilient 
than we're asking military people to be. We hope the 
subcommittee will continue its efforts to protect returnees 
from these lower profile, but still devastating, secondary 
effects of war.
    Mr. Chairman, that concludes my remarks.
    [The prepared statement of The Military Coalition follows:]
              Prepared Statement by The Military Coalition
    Mr. Chairman and distinguished members of the subcommittee. On 
behalf of The Military Coalition (TMC), a consortium of nationally 
prominent uniformed services and veterans' organizations, we are 
grateful to the committee for this opportunity to express our views 
concerning issues affecting the uniformed services community. This 
testimony provides the collective views of the following military and 
veterans' organizations, which represent approximately 5.5 million 
current and former members of the 7 uniformed services, plus their 
families and survivors.
          Air Force Association
          Air Force Sergeants Association
          Air Force Women Officers Associated
          American Logistics Association
          AMVETS (American Veterans)
          Army Aviation Association of America
          Association of Military Surgeons of the United States
          Association of the United States Army
          Association of the United States Navy
          Chief Warrant Officer and Warrant Officer Association, U.S. 
        Coast Guard
          Commissioned Officers Association of the U.S. Public Health 
        Service, Inc.
          Enlisted Association of the National Guard of the United 
        States
          Fleet Reserve Association
          Gold Star Wives of America, Inc.
          Iraq and Afghanistan Veterans of America
          Jewish War Veterans of the United States of America
          Marine Corps League
          Marine Corps Reserve Association
          Military Chaplains Association of the United States of 
        America
          Military Officers Association of America
          Military Order of the Purple Heart
          National Association for Uniformed Services
          National Guard Association of the United States
          National Military Family Association
          National Order of Battlefield Commissions
          Naval Enlisted Reserve Association
          Noncommissioned Officers Association
          Reserve Enlisted Association
          Reserve Officers Association
          Society of Medical Consultants to the Armed Forces
          The Retired Enlisted Association
          United States Army Warrant Officers Association
          United States Coast Guard Chief Petty Officers Association
          Veterans of Foreign Wars of the United States
    The Military Coalition, Inc., does not receive any grants or 
contracts from the Federal Government.
                           executive summary
Wounded Warrior Care
    Institutional Oversight
    The Coalition believes there's no substitute for a permanent 
Department of Defense (DOD)-Department of Veterans Affairs (VA) Senior 
Oversight Committee or other Joint Seamless Transition Office, staffed 
with senior officials working together full-time and charged with 
innovation and daily oversight of initiatives to institutionalize and 
sustain a culture of cross-department seamless transition.
    Continuity of Health Care
    The Coalition recommends:
         Authorizing active-duty level TRICARE benefits, 
        independent of availability of VA care, for 3 years after 
        medical retirement to help ease transition from DOD to VA;
         Authorizing blanket waiver authority for VA physicians 
        treating active duty patients with multiple medical trauma 
        conditions for all aspects of the member's treatment, including 
        referral outside the VA/TRICARE system if needed; and
         Either exempting severely wounded, ill, or injured 
        members who must be medically retired from paying Medicare Part 
        B premiums until age 65 or authorizing a special DOD allowance 
        to help offset the cost of such premiums until age 65.
    Mental/Behavioral Health Issues
    TMC recommends:
         Increased efforts to promote the destigmatization on 
        all levels in service/unit administrative and strict 
        accountability programs with outlined and enforced consequences 
        to non-compliancy to ensure unit actions are consistent with 
        leadership pronouncements;
         Continuing priority efforts to deliver information and 
        assistance on-line, confidential options for counseling and 
        uniformed access and availability to telemedicine services;
         Substantial increases in outreach efforts to provide 
        such services and resources to Guard and Reserve members, rural 
        populations and all families who don't live near military or VA 
        facilities;
         Priority efforts to educate private sector providers 
        on the unique needs of military and veteran patients and family 
        members, and deliver needed information via on-line services, 
        including contact points for discussion/consultation with 
        military and VA providers;
         Consistent implementation of pre- and post-deployment 
        evaluations and follow-up programs, particularly for Guard and 
        Reserve members who may be leaving active duty;
         Establishing common DOD and VA protocols for 
        diagnosis, treatment, and rehabilitation for Traumatic Brain 
        Injury (TBI) conditions, as well as an electronic system to 
        share and exchange a patient's medical history and other key 
        medical information;
         Expanding Traumatic Servicemember Group Life Insurance 
        (TSGLI) criteria to include moderate and severe TBI, without 
        onerous ``functions of daily living'' standards that aren't 
        required for other (and often much more functional) TSGLI-
        eligibles;
         Increasing availability and outreach on substance 
        abuse counseling options;
         Pursuing aggressive medication reconciliation and 
        management programs to protect against inadvertent over 
        medication and adverse reactions and or accidental or 
        intentional overdose;
         Requiring TBI and psychological health assessments for 
        members who have been deployed to a combat zone as part of the 
        disciplinary process prior to a decision concerning nonmedical 
        separation; and
         Implementing recommendations from the 2008 RAND report 
        (``Invisible Wounds of War Psychological and Cognitive 
        Injuries, Their Consequences, and Services to Assist 
        Recovery'').
    DOD-VA Disability Evaluation Systems (DES)
    TMC recommends:
         Barring ``fit, but unsuitable'' separations when a 
        member's medical condition prevents continued service;
         Authorizing automatic enrollment in the VA health care 
        system for any medically separated or medically retired 
        servicemember (Chapter 61);
         Ending distinctions between disabilities incurred in 
        combat vice non-combat;
         Monitoring the effectiveness of recent DOD 
        compensation for catastrophically injured or ill servicemembers 
        requiring assistance with activities of daily living authorized 
        in the 2010 NDAA;
         Ensuring benefits afforded members wounded, ill, or 
        disabled in the line of duty are applied equally for all 
        uniformed services;
         Ensuring that the VA is the single authority for 
        rating service-connected disabilities for military disability 
        retirements and separations;
         Preserving the statutory 30 percent disability 
        threshold for medical retirement and lifetime TRICARE coverage 
        for members injured while on active duty;
         Continued monitoring of Service/DOD Medical-Physical 
        Evaluation Boards, DOD DES Pilot Project, and the Physical 
        Disability Board of Review, to assess needed DES changes;
         Eliminating member premiums for TSGLI;
         Barring ``pre-existing condition'' determinations for 
        any member who deploys to a combat zone;
         Ensuring that any adjustment to the disability 
        retirement system does not result in a member receiving less 
        disability retired pay than he or she would receive under the 
        current system; and
         Ensuring that members electing accelerated disability 
        retirement/separation are fully counseled on any possible 
        negative changes in compensation, health care and other 
        benefits, with consideration to allowing a limited time to 
        reverse a regrettable decision.
    Caregiver/Family Support Services
    The Coalition recommends:
         Upgraded compensation and assistance for caregivers of 
        severely disabled active duty members, consistent with pending 
        legislative action to improve compensation/assistance for 
        caregivers of veterans; and
         Authorizing up to 1 year of continued residence in on-
        base housing facilities for medically retired, severely wounded 
        servicemembers and their families.
Active Forces and Their Families
    Military End Strength
    The Coalition urges the subcommittee to:
         Continue end strength growth as needed to sustain the 
        war and other operational commitments while materially 
        increasing dwell time for servicemembers and families;
         Sustain adequate recruiting and retention resources to 
        enable the uniformed services to achieve required optimum-
        quality personnel strength; and
         Seek a 2011 defense budget of at least 5 percent of 
        Gross Domestic Product that funds both people and weapons 
        needs.
    Military Pay Comparability
    The Coalition believes a basic pay raise of at least 1.9 
percent--.5 percent above the Employment Cost Index (ECI) standard--is 
the bare minimum the Nation should do to sustain its military pay 
comparability commitment for 2011.
    Family Readiness and Support
    The Coalition recommends that the subcommittee:
         Press DOD to assess the effectiveness of programs and 
        support mechanisms to assist military families with deployment 
        readiness, responsiveness, and reintegration;
         Ensure that effective programs--including the Family 
        Readiness Council--are fully funded and their costs are 
        included in the annual budget process;
         Provide authorization and funding to accelerate 
        increases in availability of child care to meet both Active and 
        Reserve component requirements;
         Insist DOD implement flexible spending accounts to let 
        active duty and Selected Reserve families pay out-of-pocket 
        dependent and health care expenses with pre-tax dollars;
         Monitor and continue to expand family access to mental 
        health counseling;
         Promote expansion of military spouse opportunities to 
        further educational and career goals;
         Ensure additional and timely funding of Impact Aid 
        plus continued DOD supplemental funding for highly-impacted 
        military schools; and
         Mitigate the impact of Service transformation, 
        overseas rebasing initiatives, housing privatization and base 
        realignment on school facility needs and educational programs 
        affecting military children.
    Permanent Change of Station (PCS) Allowances
    The Coalition urges the subcommittee to continue its efforts to 
upgrade permanent change-of-station allowances to better reflect 
expenses imposed on servicemembers, with priority on:
         Shipping a second vehicle on overseas accompanied 
        assignments;
         Authorizing at least some reimbursement for house-
        hunting trip expenses; and
         Increasing PCS mileage rates to more accurately 
        reflect members' actual transportation costs.
    Education Enhancements
    The Coalition urges the subcommittee to support amending the 
statute to authorize all otherwise-qualifying members of the 
``uniformed services'' to transfer Post-September 11 GI Bill benefits 
to family members.
    Morale, Welfare, and Recreation (MWR) and Quality of Life (QoL) 
        Programs
    TMC urges the subcommittee to:
         Protect funding for critical family support and QoL 
        programs and services to meet the emerging needs of 
        beneficiaries and the timelines of the Services' transformation 
        plans;
         Oppose any initiative to withhold or reduce 
        appropriated support for family support and QoL programs to 
        include: recreation facilities, child care, exchanges and 
        commissaries, housing, health care, education, family centers, 
        and other traditional and innovative support services;
         Prevent any attempts to consolidate or civilianize 
        military service exchange and commissary programs; and
         Sustain funding for support services and 
        infrastructure at both closing and gaining installations 
        throughout the entire transformation process, including 
        exchange, commissary, and TRICARE programs.
National Guard and Reserve
    Operational Reserve Sustainment and Reserve Retirement
    For the near term, the Military Coalition places particular 
priority on authorizing early retirement credit for all qualifying 
post-September 11 active duty service performed by Guard/Reserve 
servicemembers and eliminating the fiscal-year-specific accumulator 
that bars equal credit for members deploying for equal periods during 
different months of the year.
    Ultimately, TMC believes we must move forward to provide a reduced 
age entitlement for retired pay and health coverage for all Reserve 
component members--that is, an age/service formula or outright 
eligibility, if otherwise qualified, at age 55.
    Further, TMC urges repeal of the annual cap of 130 days of inactive 
duty training points that may be credited towards a reserve retirement.
    Guard and Reserve Yellow Ribbon Readjustment
    TMC urges the subcommittee to hold oversight hearings and to direct 
additional improvements in coordination, collaboration, and consistency 
of Yellow Ribbon services. DOD must ensure that State-level best 
practices--such as those in Maryland, Minnesota, and New Hampshire--are 
applied for all Operational Reserve Force members and their families, 
and that Federal Reserve veterans have equal access to services and 
support available to National Guard veterans. Community groups, 
employers and service organization efforts need to be encouraged and 
better coordinated to supplement unit, component, Service and VA 
outreach and services.
    Guard/Reserve GI Bill
    TMC urges the subcommittee to work with the Veterans Affairs 
Committee to include Title 32 AGRs in the Post-September 11 statute.
    Based on the DOD/Services' 10-year record of indifference to the 
basic Selected Reserve GI Bill under Chapter 1606, 10 U.S.C., TMC 
recommends either: restoring Reserve benefits to 47-50 percent of 
active duty benefits or transferring the chapter 1606 statute from 
title 10 to title 38 so that it can be coordinated with other 
educational benefits programs in a 21st century GI Bill architecture. 
TMC also supports assured academic reinstatement, including guaranteed 
re-enrollment, for returning operational reservists.
    Special and Incentive Pays
    The Coalition urges the subcommittee to ensure equitable treatment 
of Guard and Reserve vs. active duty members for the full range of 
special and incentive pays.
Retiree Issues
    Concurrent Receipt
    The Coalition's continuing goal is to fully eliminate the deduction 
of VA disability compensation from earned military retired pay for all 
disabled retirees. In pursuit of that goal, the Coalition's immediate 
priorities include:
         Phasing out the disability offset for all Chapter 61 
        (medical) retirees; and
         Correcting the Combat-Related Special Compensation 
        (CRSC) formula to ensure the intended compensation is 
        delivered.
    Proposed Military Retirement Changes
    TMC urges the subcommittee to:
         Reject any initiatives to ``civilianize'' the military 
        system without adequate consideration of the unique and 
        extraordinary demands and sacrifices inherent in a military vs. 
        a civilian career; and
         Eliminate the Career Status Bonus for servicemembers 
        as it significantly devalues their retirement over time. In the 
        short term, the Services should be required to better educate 
        eligible members on the severe long-term financial penalty 
        inherent in accepting the REDUX option.
    Disability Severance Pay
    The Coalition urges the subcommittee to amend the eligibility rules 
for disability severance pay to include all combat--or operations--
related injuries, using same definition as CRSC. For the longer term, 
the Coalition believes the offset should be ended for all members 
separated for service-caused disabilities.
    Former Spouse Issues
    The Coalition requests a hearing to address Uniformed Services 
Former Spouse Protection Act (USFSPA) inequities. In addition, we 
recommend legislation to include all of the following:
         Base the award amount to the former spouse on the 
        grade and years of service of the member at time of divorce 
        (and not retirement);
         Prohibit the award of imputed income, which 
        effectively forces active duty members into retirement;
         Extend 20/20/20 benefits to 20/20/15 former spouses;
         Permit the designation of multiple Survivor Benefit 
        Plan (SBP) beneficiaries with the presumption that SBP benefits 
        must be proportionate to the allocation of retired pay;
         Eliminate the ``10-year Rule'' for the direct payment 
        of retired pay allocations by the Defense Finance and 
        Accounting Service (DFAS);
         Permit SBP premiums to be withheld from the former 
        spouse's share of retired pay if directed by court order;
         Permit a former spouse to waive SBP coverage;
         Repeal the 1-year deemed election requirement for SBP; 
        and
         Assist DOD and Services with greater outreach and 
        expanded awareness to members and former spouses of their 
        rights, responsibilities, and benefits upon divorce.
Survivor Issues
    SBP-DIC Offset
    The Coalition urges repeal of the SBP-DIC offset. TMC further 
recommends:
         Authorizing payment of SBP annuities for disabled 
        survivors into a Special Needs Trust;
         Allowing SBP eligibility to switch to children if a 
        surviving spouse is convicted of complicity in the member's 
        death; and
         Reinstating SBP for survivors who previously 
        transferred payments to their children at such time as the 
        youngest child attains majority, or upon termination of a 
        second or subsequent marriage.
    Final Retired Paycheck
    TMC urges the subcommittee to authorize survivors of retired 
members to retain the final month's retired pay for the month in which 
the retiree dies.
Health Care Issues
    Defense Health Program Cost Requirements
    The Coalition urges the subcommittee to take all possible steps to 
ensure continued full funding for Defense Health Program needs.
    National Health Reform
    TMC urges that any national health reform legislation must:
         Protect the unique TRICARE, TRICARE For Life (TFL), 
        and VA health care benefits from unintended consequences such 
        as reduced access to care;
         Bar any form of taxation of TRICARE, TFL, or VA health 
        care benefits, including those provided in nongovernmental 
        venues; and
         Preserve military and VA beneficiaries' choices.
    TRICARE Fees
    Establish a ``Sense of Congress'' which recognizes that military 
retiree health benefits are an essential offset to arduous service 
conditions which have been paid for upfront.
    Military vs. Civilian Cost-Sharing Measurement
    The Coalition believes that military beneficiaries from whom 
America has demanded decades of extraordinary service and sacrifice 
have earned coverage that is the best America has to offer.
    Large Retiree Fee Increases Can Only Hurt Retention
    Reducing military retirement benefits would be particularly ill-
advised when an overstressed force already is at increasing retention 
risk despite the current downturn of the economy and current recruiting 
successes.
    Pharmacy
    The Coalition urges the subcommittee to ensure continued 
availability of a broad range of medications, including the most-
prescribed medications, in the TRICARE pharmacy system, and to ensure 
that the first focus on cost containment should be on initiatives that 
encourage beneficiaries to take needed medications and reduce program 
costs without shifting costs to beneficiaries.
    Alternative Options to Make TRICARE More Cost-Efficient
    The Coalition has offered a long list of alternative cost-saving 
possibilities, including:
         Positive incentives to encourage beneficiaries to seek 
        care in the most appropriate and cost effective venue;
         Encouraging improved collaboration between the direct 
        and purchased care systems and implementing best business 
        practices and effective quality clinical models;
         Focusing the military health system, health care 
        providers, and beneficiaries on quality measured outcomes;
         Improving MHS financial controls and avoiding overseas 
        fraud by establishing TRICARE networks in areas fraught with 
        fraud;
         Establishing TRICARE networks in areas of high TRICARE 
        Standard utilization to take full advantage of network 
        discounts;
         Promoting retention of other health insurance by 
        making TRICARE a true second-payer to other insurance (far 
        cheaper to pay another insurance's co-pay than have the 
        beneficiary migrate to TRICARE);
         Encouraging DOD to effectively utilize their data from 
        their electronic health record to better monitor beneficiary 
        utilization patterns to design programs which truly match 
        beneficiaries needs;
         Sizing and staffing military treatment facilities to 
        reduce reliance on network providers and develop effective 
        staffing models which support enrolled capacities;
         Reducing long-term TRICARE Reserve Select (TRS) costs 
        by allowing servicemembers the option of a government subsidy 
        of civilian employer premiums during periods of mobilization;
         Doing far more to promote use of mail-order pharmacy 
        system and formulary medications via mailings to users of 
        maintenance medications, highlighting the convenience and 
        individual expected cost savings; and
         Encouraging retirees to use lowest-cost-venue military 
        pharmacies at no charge, rather than discouraging such use by 
        limiting formularies, curtailing courier initiatives, etc.
    TMC Healthcare Cost Principles
    The Coalition strongly recommends that Congress establish statutory 
findings, a sense of Congress on the purpose and principles of military 
health care benefits earned by a career of uniformed service that 
states:
         Active duty members and families should be charged no 
        fees except retail pharmacy co-payments, except to the extent 
        they make the choice to participate in TRICARE Standard or use 
        out-of-network providers under TRICARE Prime;
         The TRICARE Standard inpatient copay should not be 
        increased further for the foreseeable future. At $535 per day, 
        it already far exceeds inpatient copays for virtually any 
        private sector health plan;
         There should be no enrollment fee for TRICARE Standard 
        or TFL, since neither offers assured access to TRICARE-
        participating providers. An enrollment fee implies enrollees 
        will receive additional services, as Prime enrollees are 
        guaranteed access to participating providers in return for 
        their fee. Congress already has required TFL beneficiaries to 
        pay substantial Medicare Part B fees to gain TFL coverage;
         All retired servicemembers earned equal health care 
        coverage by virtue of their service; and
         DOD should make all efforts to provide the most 
        efficient use of allocated resources and cut waste prior to 
        proposing additional or increased fees on eligible 
        beneficiaries.
    TRICARE Prime
    The Military Coalition urges the subcommittee to require reports 
from DOD and from the managed care support contractors, on actions 
being taken to improve Prime patient satisfaction provide assured 
appointments within Prime access standards, reduce delays in 
preauthorization and referral appointments, and provide quality 
information to assist beneficiaries in making informed decisions.
TRICARE Standard
    TRICARE Standard Provider Participation
    The Coalition urges the subcommittee to insist on immediate 
delivery of an adequacy threshold for provider participation, below 
which additional action is required to improve such participation. The 
Coalition also recommends requiring a specific report on participation 
adequacy in the localities where Prime Service Areas will be 
discontinued under the new TRICARE contracts.
    TRICARE Reimbursement Rates
    The Coalition places primary importance on securing a permanent fix 
to the flawed statutory formula for setting Medicare and TRICARE 
payments to doctors.
    To the extent a Medicare rate freeze continues, we urge the 
subcommittee to encourage DOD to use its reimbursement rate adjustment 
authority as needed to sustain provider acceptance.
    The Coalition urges the subcommittee to require a Comptroller 
General report on the relative propensity of physicians to participate 
in Medicare vs. TRICARE, and the likely effect on such relative 
participation of a further freeze in Medicare/TRICARE physician 
payments along with the effect of an absence of bonus payments.
Dental Care
    Active Duty Dependent Dental Plan
    The Coalition recommends increasing the DOD subsidy for the Active 
Duty Dependent Dental Plan to 72 percent and increasing the cap on 
orthodontia payments to $2,000.
Guard and Reserve Healthcare
    Continuum of Health Care Insurance Options for The Guard and 
        Reserve
    The Coalition recommends the subcommittee:
         Require a GAO review of DOD's methodology for 
        determining TRS costs for premium adjustment purposes to assess 
        whether it includes any costs of maintaining readiness or 
        ``costs of doing business'' for the Defense Department that 
        don't contribute to beneficiary benefit value and thus should 
        be excluded from cost/premium calculations;
         Authorize development of a cost-effective option to 
        have DOD subsidize premiums for continuation of a Reserve 
        employer's private family health insurance during periods of 
        deployment as an alternative to ongoing TRS coverage;
         Allow eligibility in Continued Health Care Benefits 
        Program (CHCBP) for Selected reservists who are voluntarily 
        separating and subject to disenrollment from TRS;
         Authorize members of the IRR who qualify for a Reserve 
        retirement at age 60 to participate in TRICARE Retired Reserve 
        (TRR) as an incentive for continued service (and higher 
        liability for recall to active duty);
         Monitor implementation of the new TRR authority to 
        ensure timely action and that premiums do not exceed 100 
        percent of the TRS premium; and
         Allow FEHB plan beneficiaries who are selected 
        reservists the option of participating in TRS.
    Guard and Reserve Mental Health
    TMC believes that Guard and Reserve members and their families 
should have access to evidence-based treatment for PTSD, TBI, 
depression, and other combat-related stress conditions. Further, Post 
Deployment Health examinations should be offered at the member's home 
station, with the member retained on active duty orders until 
completion of the exam.
    Guard and Reserve Health Information
    The Coalition believes there should be an effort to improve the 
electronic capture of non-military health information into the 
servicemember's medical record.
    TRICARE For Life
    Coalition priorities for TFL-eligibles include:
         Securing a permanent fix to the flawed formula for 
        setting Medicare/TRICARE payments to providers;
         Resisting any effort to establish an enrollment fee 
        for TFL, given that many beneficiaries already experience 
        difficulties finding providers who will accept Medicare 
        patients; and
         Including TFL beneficiaries in DOD programs to 
        incentivize compliance with preventive care and healthy 
        lifestyles.
    Restoration of Survivors' TRICARE Coverage
    The Coalition recommends restoration of TRICARE benefits to 
previously eligible survivors whose second or subsequent marriage ends 
in death or divorce.
    Base Realignment and Closure (BRAC) and Rebasing
    The Coalition recommends requiring an annual DOD report on the 
adequacy of health resources, funding, services, quality and access to 
care for beneficiaries affected by BRAC/rebasing.
                                overview
    Mr. Chairman, The Military Coalition extends our thanks to you and 
the entire subcommittee for your steadfast support of our Active Duty, 
Guard, Reserve, retired members, and veterans of the uniformed services 
and their families and survivors. Your efforts have had a dramatic, 
positive impact in the lives of the entire uniformed services 
community.
    Last year was an extremely tumultuous, difficult year. As our 
servicemembers continued to fight terror on two separate fronts, our 
Nation slowly started to recover from an economic crisis, the worst 
seen since the great depression. Congress and the administration had 
difficult choices to make as they attempted to ``jump start'' the 
economy while faced with a record budget deficit.
    We are grateful that both the Defense Department and Congress put 
top priority on personnel issues last year. As we enter the ninth year 
of extremely stressful wartime conditions, the Coalition believes that 
this prioritization should continue for fiscal year 2011.
    Despite ever-increasing pressures on them at home and abroad, men 
and women in uniform are still answering the call--thanks in no small 
measure to the subcommittee's strong and consistent support--but only 
at the cost of ever-greater sacrifices.
    Troubling indicators such as dramatic increases in suicide and 
divorce rates may reflect the effects of the long-term consequences we 
know are coming as we require the same people to return to combat again 
and again and yet again.
    In these times of growing political and economic pressures, the 
Coalition relies on the continued good judgment of the Armed Services 
Committees to ensure the Nation allocates the required resources to 
sustain a strong national defense, and in particular, to properly meet 
the pressing needs of the less than 1 percent of the American 
population--servicemembers and their families--who protect the freedoms 
of the remaining 99 percent.
    In this testimony, The Coalition offers our collective 
recommendations on what needs to be done to meet these essential needs.
                          wounded warrior care
    Much has been done in the last 3 years to address the grievous and 
negligent conditions that were brought to light since the tragic 
incident at Walter Reed Army Medical Center, where wounded and disabled 
troops and their families had fallen through the cracks as they 
transitioned from the military to VA health care and benefits systems.
    Subsequently, the subcommittee has worked hard to address these 
difficulties, and significant progress has been made on that score.
    But the extent and complexity of the challenges remain daunting, 
requiring continuing coordination of effort between the military 
services; the Department of Defense (DOD); the Department of Veterans 
Affairs (VA); several Centers of Excellence; a multitude of civilian 
contractors and nongovernmental agencies; and the two Armed Services, 
two Veterans Affairs, and two Appropriations Committees.
    The Coalition looks forward to working with the subcommittee this 
year in its ongoing efforts to identify and ease significant remaining 
problems.
DOD-VA Seamless Transition
    Institutional Oversight
    While many legislative and fiscal changes have improved the care 
and support of our wounded and disabled members, the Coalition is 
concerned that the recent dissolution of the Senior Oversight Committee 
(SOC) poses significant risks for effective day-to-day leadership and 
coordination of DOD and VA seamless transition efforts.
    Last year, the Coalition expressed concern that the change of 
administration would pose a significant challenge to the two 
departments' continuity of joint effort, as senior leaders whose 
personal involvement had put interdepartmental efforts back on track 
left their positions and were replaced by new appointees who had no 
experience with past problems and no personal stake in ongoing 
initiatives.
    Unfortunately, those concerns are being realized, as many 
appointive positions in both departments have gone unfilled for a year, 
responsibilities have been reorganized, and oversight duties previously 
assumed by senior officials have been divested to lower-level 
administrators who are less regularly engaged with their cross-
department counterparts.
    The result has been more uncertainty and degradation of 
cooperation, communication, and collaboration between the two 
departments over the last year.
    The Coalition is concerned that, having exerted major efforts to 
address the most egregious problems, there is a significant potential 
to fall victim to a ``business as usual'' operating mode, even though 
the difficult journey to true seamless transition between the 
departments has just begun.
    While many well-meaning and hard working military and civilians are 
doing their best to keep pushing progress forward, transitions in 
leadership and mission changes clearly are challenging and require 
formal and more standardized structures, policies, and programs that 
won't be as subject to disruption by one participant's unilateral 
organizational changes.
    It sends a message about departmental priorities when these 
responsibilities are pushed to lower-level officials.
    The Coalition believes there's no substitute for a permanent DOD-VA 
Senior Oversight Committee or other Joint Seamless Transition Office, 
staffed with senior officials working together full-time and charged 
with innovation and daily oversight of initiatives to institutionalize 
and sustain a culture of cross-department seamless transition.
    Continuity of Health Care
    Transitioning between DOD and VA health care systems remains 
challenging, confusing, and overwhelming to those trying to navigate 
and use these systems. Systemic, cultural, and bureaucratic barriers 
often prevent the servicemember or veteran from receiving the necessary 
continuity of care they need to heal and have productive and a high 
level of quality of life they so desperately need and desire.
    While servicemembers and their families tell us that DOD has done 
much to address trauma care, acute rehabilitation, and basic short-term 
rehabilitation, they are less satisfied with their transition from the 
military health care systems to longer-term care and support in 
military and veterans medical systems.
    We hear regularly from members who experienced significant 
disruptions of care upon separation or medical retirement from service.
    One is in the area of cognitive therapy, which is available to 
retired members under TRICARE only if it is not available through the 
VA. Unfortunately, members are caught in the middle because of 
differences between DOD and VA authorities on what constitutes 
cognitive therapy and the degree to which effective, evidenced-based 
therapy is available.
    The NDAA for Fiscal Year 2010 requires a report on such issues, but 
action is needed to protect the wounded and disabled. The subcommittee 
has acted previously to authorize 3 years of active-duty-level TRICARE 
coverage for the family members of those who die on active duty. The 
Coalition believes we owe equal transition care continuity to those 
whose service-caused illnesses or injuries force their retirement from 
service.
    Another significant issue faced by many members forced from active 
duty by severe service-caused disabilities is that the severity of 
their disability qualifies them for Medicare. In such cases, TRICARE is 
second-payer to Medicare.
    Under laws that were designed for elderly retirees but apply 
equally to all Medicare-eligible military beneficiaries, these younger 
disabled warriors must pay Medicare Part B premiums ($110 per month in 
2010) to retain any coverage under TRICARE.
    The Coalition believes it's wrong that members whose service caused 
them to become severely wounded, ill or injured should have to pay more 
for their care than they would if not injured by service, and believes 
they should either be exempt from paying the Part B premium until age 
65 or DOD should help them offset the cost of such payments.
    Finally, doctors at VA polytrauma centers indicate that one of 
their biggest problems is the requirement to get multiple 
authorizations from DOD to provide a variety of specialty care for 
active duty members with multiple medical problems.
    When an active duty member is referred to VA facility for care, DOD 
should grant an automatic waiver of preauthorization/referral 
requirements to allow the VA providers to deliver needed care without 
bureaucratic delays.
    The Coalition recommends:
         Authorizing active-duty-level TRICARE benefits, 
        independent of availability of VA care, for 3 years after 
        medical retirement to help ease transition from DOD to VA;
         Authorizing blanket waiver authority for VA physicians 
        treating active duty patients with multiple medical trauma 
        conditions for all aspects of the member's treatment, including 
        referral outside the VA/TRICARE system if needed; and
         Either exempting severely wounded, ill, or injured 
        members who must be medically retired from paying Medicare Part 
        B premiums until age 65 or authorizing a special DOD allowance 
        to help offset the cost of such premiums until age 65.
    Mental/Behavioral Health Issues
    The military community is experiencing a crisis of demand for 
mental/behavior health care, both for servicemembers and their spouses 
and children.
    The subcommittee included several initiatives in the NDAA for 
Fiscal Year 2010 aimed at increasing the number of military providers 
in this field and improving access for members and families.
    While the Coalition is very grateful for these initiatives, we 
respectfully request that the subcommittee continue, and more 
importantly expand, its efforts in addressing the growing epidemic of 
difficulties regarding post-traumatic stress disorder (PTSD), traumatic 
brain injuries (TBI), depression, and other mental/behavioral health 
issues disproportionally plaguing our military and veteran communities.
    Today our servicemembers, their spouses and children are facing 
immense stresses and uncertainties associated with repeated deployments 
and protracted separations. Our country is at war on multiple fronts 
and we must take all the necessary actions to ensure the mental well 
being of all those involved, at home and those on the frontlines.
    One of the most prevalent obstacles in successfully identifying and 
treating mental/behavioral health conditions is the stigma which the 
military's warrior culture continues to associate with such conditions 
and the threat or fear that admission of experiencing them may affect 
one's peer standing, security clearance, promotions, or ability to 
remain in service.
    Despite the continued efforts by senior leaders to reduce the 
stigmas associated with mental health issues, the unit-level reality is 
far different. The reality is that many officers, NCOs, and peers 
continue to view these conditions as signs of weakness or inability to 
coup.
    Furthermore, many servicemembers are deterred from seeking care by 
cases of friends who have been disciplined or separated as a result of 
using the available support systems the military has implemented.
    As a direct result, the suicide and divorce rates, as well as 
childhood depression diagnosis' continue to climb within the military 
and veteran communities. DOD openly acknowledges that stigmas remain 
within the ranks, despite their efforts of significantly ramping up 
efforts and outreach programs composed of anti-stigma campaigns, upper-
level training programs, and easier access to mental health providers.
    The Coalition stresses our grave concerns to the subcommittee 
regarding the current state of DOD's inability to effectively handle 
the increasing demands/need for mental health services and outreach to 
all demographics of today's military forces. While our forces and their 
families display extraordinary strengths, resiliency and undaunted 
tenacity in the face of all stresses associated with service; it is 
vital that we never forget that these same stressors of service to this 
country are in all likelihood, leading to untreated mental and physical 
health conditions.
    The Coalition believes that due to the numerous unrealistic 
standards and high expectations of resiliency and coping abilities we 
have somehow come to expect from our servicemembers and their families, 
that the current military administrative and disciplinary systems being 
used are not effectively meeting the mental health needs, whether 
proactive or reactive, of the same people to whom we expect so much. 
DOD and VA have an obligation to provide the best care available to any 
servicemember who sustains an injury as a result of their service.
    Unfortunately, many of today's servicemembers have mental wounds 
that are undiagnosed and thus untreated. This lack of care or treatment 
for PTSD, TBI, or any one of the numerous stressors associated with 
service, is leading to an increased number of early separations or even 
more alarming, being barred from reenlisting due to a charge of 
misconduct, such as a driving under the influence (DUI) or other such 
incident, by a servicemember who has never previously displayed any 
such behaviors. These uncharacteristic behaviors are only one of the 
symptoms associated with untreated mental/behavioral health conditions. 
Ironically, some civil authorities often are more tolerant and offer 
more assistance in dealing with such cases involving combat veterans 
than military authorities.
    As a result of such circumstances, thousands, if not countless, of 
affected servicemembers, veterans and their family members have gone 
unidentified, untreated, or deterred from being given the opportunity 
to seek the care they deserve. Moreover, many have difficulty accessing 
and utilizing programs that are in place.
    In addition to expanding the availability of providers, the 
Coalition believes that two key elements will be in expanding the 
opportunities for confidential access to counseling or treatments and 
achieving more consistency between leadership campaigns for 
destigmatization/individual resiliency and the practical demonstration 
of greater resiliency and rehabilitation initiatives at the unit/
administrative level.
    TMC recommends:
         Increased efforts to promote the de-stigmatization on 
        all levels in service/unit administrative and strict 
        accountability programs with outlined and enforced consequences 
        to non-compliancy to ensure unit actions are consistent with 
        leadership pronouncements;
         Continuing priority efforts to deliver information and 
        assistance on-line, confidential options for counseling and 
        uniformed access and availability to telemedicine services;
         Substantial increases in outreach efforts to provide 
        such services and resources to Guard and Reserve members, rural 
        populations and all families who don't live near military or VA 
        facilities;
         Priority efforts to educate private sector providers 
        on the unique needs of military and veteran patients and family 
        members, and deliver needed information via on-line services, 
        including contact points for discussion/consultation with 
        military and VA providers;
         Consistent implementation of pre-and post-deployment 
        evaluations and follow-up programs, particularly for Guard and 
        Reserve members who may be leaving active duty;
         Establishing common DOD and VA protocols for 
        diagnosis, treatment, and rehabilitation for TBI conditions, as 
        well as an electronic system to share and exchange a patient's 
        medical history and other key medical information;
         Expanding Traumatic Servicemember Group Life Insurance 
        (TSGLI) criteria to include moderate and severe TBI, without 
        onerous ``functions of daily living'' standards that aren't 
        required for other (and often much more functional) TSGLI-
        eligibles;
         Increasing availability and outreach on substance 
        abuse counseling options;
         Pursuing aggressive medication reconciliation and 
        management programs to protect against inadvertent over 
        medication and adverse reactions and/or accidental or 
        intentional overdose;
         Requiring TBI and psychological health assessments for 
        members who have been deployed to a combat zone as part of the 
        disciplinary process prior to a decision concerning non-medical 
        separation; and
         Implementing recommendations from the 2008 RAND report 
        (``Invisible Wounds of War, Psychological and Cognitive 
        Injuries, Their Consequences, and Services to Assist 
        Recovery'').
    DOD-VA Disability Evaluation Systems (DES)
    Several recommendations made by various commissions, task forces 
and committees were addressed in the National Defense Authorization 
Acts for Fiscal Year 2008, 2009, and 2010; however, more needs to be 
done.
    One of the most emotional issues that emerged from the Walter Reed 
scandal was the finding that Services were ``low-balling'' disabled 
servicemembers' disability ratings, with the result that many 
significantly disabled members were being separated and turned over to 
the VA rather than being medically retired (which requires a 30 percent 
or higher disability rating).
    Encouraging rhetoric was heard from leadership in both the DOD and 
VA that this would be addressed by having DOD accept the (usually 
higher) disability ratings awarded by the VA.
    Congress has taken positive steps to correct previous ``low-ball'' 
ratings and streamline the DES. Congress created the Physical 
Disability Board of Review (PDBR) to give previously separated 
servicemembers an opportunity to appeal their ``low-balled'' disability 
rating.
    They also authorized a jointly executed DOD-VA DES pilot in the 
2008 NDAA, and feedback from members and families who participated in 
the pilot program is that it has simplified the process and provided a 
more standardized disability rating outcome.
    TMC was further encouraged that wounded, ill, and injured members 
would benefit from the 19 Dec 07 Under Secretary of Defense (Personnel 
and Readiness) Directive Type Memorandum (DTM) which added 
``deployability'' as a consideration in the DES decision process--
permitting medical separation/retirement based on a medical condition 
that renders a member nondeployable.
    Unfortunately, several cases have surfaced indicating the Services 
have failed to incorporate the DTM in their DES process.
    In this regard, the services continue to issue findings that a 
member is ``fit, but unsuitable'' for service. Under this system, a 
member found ``fit'' by the PEB, is deemed by the service to be 
``unsuitable'' for continued service--and administratively separated--
because the member's medical condition prevents them from being able to 
deploy or maintain their current occupational skill.
    The Coalition believes strongly that medical conditions which 
preclude servicemembers from continuing to serve should be deemed 
``unfitting''--not ``unsuitable.''
    In addition, we remain concerned about language used by some 
indicating a wish to remove DOD from the DES process (i.e., DOD 
determines fitness and VA determines disability). This simplified 
process could result in neglect of DOD's employer responsibilities, 
such as TRICARE eligibility for disabled members and their families.
    The Coalition believes strongly that members determined by parent 
service to be 30 percent or more disabled should continue to be 
eligible for a military disability retirement with all attendant 
benefits, including lifetime TRICARE eligibility for the member and 
his/her family. We do not support efforts to disconnect health care 
eligibility from disability retired pay eligibility. The Coalition also 
agrees with the opinion expressed by Secretary Gates that a member 
forced from service for wartime injuries should not be separated, but 
should be awarded a high enough rating to be retired for disability.
    TMC recommends:
         Barring ``fit, but unsuitable'' separations when a 
        member's medical condition prevents continued service;
         Authorizing automatic enrollment in the VA health care 
        system for any medically separated or medically retired 
        servicemember (Chapter 61);
         Ending distinctions between disabilities incurred in 
        combat vice non-combat;
         Monitoring the effectiveness of recent DOD 
        compensation for catastrophically injured or ill servicemembers 
        requiring assistance with activities of daily living authorized 
        in the 2010 NDAA;
         Ensuring benefits afforded members wounded, ill, or 
        disabled in the line of duty are applied equally for all 
        uniformed services;
         Ensuring that the VA is the single authority for 
        rating service-connected disabilities for military disability 
        retirements and separations;
         Preserving the statutory 30 percent disability 
        threshold for medical retirement and lifetime TRICARE coverage 
        for members injured while on active duty;
         Continued monitoring of Service/DOD Medical-Physical 
        Evaluation Boards, DOD DES Pilot Project, and the Physical 
        Disability Board of Review, to assess needed DES changes;
         Eliminating member premiums for Traumatic 
        Servicemember Group Life Insurance (TSGLI);
         Barring ``pre-existing condition'' determinations for 
        any member who deploys to a combat zone;
         Ensuring that any adjustment to the disability 
        retirement system does not result in a member receiving less 
        disability retired pay than he or she would receive under the 
        current system; and
         Ensuring that members electing accelerated disability 
        retirement/separation are fully counseled on any possible 
        negative changes in compensation, health care and other 
        benefits, with consideration to allowing a limited time to 
        reverse a regrettable decision.
    Caregiver/Family Support Services
    The sad reality is that, for the most severely injured 
servicemembers, family members or other loved ones are often required 
to become full-time caregivers. Many have lost their jobs, homes, and 
savings in order to meet caregiver needs of a servicemember who has 
become incapacitated due to service-caused wounds, injuries or illness.
    The Coalition believes the government has an obligation to provide 
reasonable compensation and training for such caregivers, who ever 
dreamed that their own well-being, careers, and futures would be 
devastated by military-caused injuries to their servicemembers.
    Last year, the subcommittee authorized a special payment to an 
active duty servicemember to allow compensation of a family member or 
professional caregiver. The authorized payment was in the same amount 
authorized by the VA for veterans' aid-and-attendance needs, reflecting 
the subcommittee's thinking that caregiver compensation should be 
seamless when the member transitions from active duty to VA care, as 
long as the caregiver requirements remain the same.
    The Coalition supported this initiative, but recognizes that both 
chambers have since approved legislation to authorize more significant 
VA assistance and compensation for caregivers.
    Once the House and Senate versions of the VA caregiver legislation 
have been reconciled in conference, the Coalition hopes the 
subcommittee will propose similar upgrades for caregivers of members 
while on active duty, consistent with the ``seamless transition'' 
philosophy adopted last year.
    In a similar vein, many wounded or otherwise-disabled members 
experience significant difficulty transitioning to medical retirement 
status. To assist in this process, consideration should be given to 
authorizing medically retired members and their families to remain in 
on-base housing for up to 1 year after retirement, in the same way that 
families are allowed to do so when a member dies on active duty.
    The Coalition recommends:
         Upgraded compensation and assistance for caregivers of 
        severely disabled active duty members, consistent with pending 
        legislative action to improve compensation/assistance for 
        caregivers of veterans; and
         Authorizing up to 1 year of continued residence in on-
        base housing facilities for medically retired, severely wounded 
        servicemembers and their families.
                    active forces and their families
    In our overview, the Coalition expressed our collective concern 
over the stressors our servicemembers and their families are 
experiencing due to the long, repeated deployments and unrelenting 
operations tempo. In order to sustain a sufficient, highly trained and 
highly capable Active Force, the continuing overriding requirement is 
to find additional ways to ease the terrible burden of stress on 
servicemembers and their families.
Military End Strength
    Increased end strength is the only effective way to reduce stress 
on forces and families as long as deployment requirements not only 
continue, but actually increase.
    The creators of the All-Volunteer Force never envisioned that the 
force would be deployed into combat 1 year out of 3--let alone every 
other year, as has been the case with many ground units.
    Regrettably, the scenario faced by today's forces is not unlike the 
World War II ``Catch-22'' situation described by Joseph Heller, in 
which aircrews braving horrendous enemy flak had their wartime mission 
requirements increased again and again, until they perceived that the 
terrible sacrifices being demanded of them would never end.
    Unfortunately, many in government and among the public seem to have 
become desensitized to the truly terrible sacrifices that the current 
mismatch between missions and force levels has already imposed on those 
in uniform. They acknowledge the problem, but most assume that 
servicemembers and families will simply continue to accept these--or 
even greater--levels of sacrifice indefinitely.
    Many point to the achievement of service recruiting and retention 
goals as indicators that all is well.
    Such perceptions grossly underestimate the current stresses on the 
force and the risk that poses for readiness and national security. The 
Coalition believes any complacency about retention is sadly misplaced, 
and that the status of the current force should be viewed in the 
context of a rubber band that has been stretched to its limit. The fact 
that it has not yet broken is of little comfort.
    Well-respected studies have shown that 20 to 30 percent of combat 
returnees have experienced PTSD, TBI, or depression, and that the 
likelihood of a servicemember returning as a changed person rises with 
each subsequent deployment. Other studies have shown that rising 
cumulative family separations are having significant negative effects 
on servicemembers' children.
    These are not mere academic exercises. They are well-known facts of 
life to those who are alone in actually experiencing them.
    A far truer, and truly tragic, indicator of these extremely 
troubling circumstances has been the significant rise in 
servicemembers' suicide and divorce rates.
    So the Coalition is very grateful for the subcommittee's support 
for end strength increases for all Services in the National Defense 
Authorization Act for Fiscal Year 2010, and for fending off the efforts 
of those who proposed cutting force levels to fund hardware needs.
    But we must not understate the reality that the increases approved 
to date will not significantly improve dwell time for military families 
anytime in the near future, given increasing operational requirements 
in Afghanistan.
    New requirements for massive humanitarian aid in Haiti and 
elsewhere only exacerbate the already grievous situation.
    The Coalition is relieved that the administration is requesting an 
increase to the overall defense budget by $100 billion over the next 5 
years--we just hope it's enough.
    The Coalition urges the subcommittee to:
         Continue end strength growth as needed to sustain the 
        war and other operational commitments while materially 
        increasing dwell time for servicemembers and families;
         Sustain adequate recruiting and retention resources to 
        enable the uniformed services to achieve required optimum-
        quality personnel strength; and
         Seek a 2011 defense budget of at least 5 percent of 
        Gross Domestic Product that funds both people and weapons 
        needs.
    Military Pay Raise
    The Coalition thanks the subcommittee for its sustained commitment 
to restoring full military pay comparability--a fundamental 
underpinning of the All-Volunteer Force.
    To that end, we are grateful for the committee's leadership in 
approving a 3.4 percent military pay raise for 2010--vs. the 2.9 
percent proposed in the defense budget submission.
    Throughout the 1980s and 1990s, military pay raises consistently 
were capped below private sector pay growth, causing a ``pay 
comparability gap'' that reached 13.5 percent in 1998-1999, and 
contributed significantly to serious retention problems.
    Every year since then, the subcommittee has acted to pare the gap 
by approving military raises that have been at least .5 percent above 
private sector pay growth.
    Now that significant progress has been made and the ``erosion of 
pay and benefits'' retention-related problems have abated, some have 
renewed calls to cut back on military raises, create a new 
comparability standard, or substitute more bonuses for pay raises in 
the interests of ``efficiency.''
    The Defense Department has proposed a new comparability standard 
under which each pay and longevity cell would represent the 70th 
percentile of compensation for similarly-educated civilians. A recent 
Congressional Budget Office report asserted that, considering 
adjustments in housing allowances, military people actually are paid 10 
percent more than their civilian counterparts in terms of Regular 
Military Compensation (RMC), composed of basic pay, food and housing 
allowances, and the tax advantage that accrues because the allowances 
are tax-free.
    The Coalition believes such assertions are fundamentally flawed.
    First, the RMC concept was developed in the 1960s, when all 
servicemembers received the same allowances, regardless of location, 
and the allowances were arbitrary figures that weren't actually based 
on anything. In the interim, Congress has transformed the allowances 
into reimbursements for actual food costs and median locality-based 
housing costs.
    If one were to use the RMC comparability methodology in this 
scenario, basic pay--the largest element of military pay and the one 
that drives retired pay--would become ``flex'' compensation element. 
With tax rates and allowances figures set independently, a year in 
which average housing allowances rose (e.g., based on growth in high-
cost areas) and taxes increased could actually yield a requirement to 
cut basic pay (and future retirement value) to restore 
``comparability.''
    Second, the Coalition is not convinced that the civilian comparison 
cohort or percentile comparison point proposed by DOD are the proper 
ones, given that the military:
         Recruits from the top half of the civilian aptitude 
        population;
         Finds that only about 25 percent of America's youth 
        qualify for entry;
         Requires career-long education and training 
        advancement;
         Enforces a competitive ``up-or-out'' promotion system; 
        and
         Imposes severe limits on personal freedoms (e.g., not 
        being able to quit when you want; risking a felony conviction 
        for refusing an order).
    A fundamental requirement for any pay comparability standard is 
that it should be transparent and understandable. The Coalition has 
asked for, but has never been provided by DOD, any data on what 
civilian comparison cohort was selected and why, and what rationale was 
used to establish a specific percentile comparison point.
    Third, the Coalition believes it is essential to recognize that 
compensation is not simply the amount one is paid. It is pay divided by 
what's required of the recipient to earn that pay. If we increase pay 
25 percent but require 100 percent more sacrifice to earn it, that's 
not a pay raise.
    In that context, today's conditions of service are far more arduous 
than anything envisioned 40 years ago by the creators of the All-
Volunteer Force, who believed a protracted war would require 
reinstitution of the draft.
    Finally, private sector pay growth between 2008 and 2009 would set 
the military pay raise for 2011 at 1.4 percent--the smallest military 
pay raise in almost 50 years, even while servicemembers are being asked 
to endure the most arduous service conditions in more than 60 years. 
Further, the Coalition observes that there is a lag of more than a year 
between the time the civilian pay growth is measured and the time it is 
applied to the military.
    The Coalition agrees with the approach the subcommittee has taken 
consistently -that the best comparability measure is a comparison of 
the military basic pay raise percentage with the percentage growth in 
the ECI.
    The government uses the ECI for every other measure of private pay 
growth, and it's very transparent to government leaders and 
servicemembers alike. As of 2010, cumulative military basic pay 
increases lag cumulative private sector pay growth by 2.4 percent since 
1982--the last time it was generally agreed that a state of 
comparability existed.
    Given the historic low raise produced by the ECI for 2011, the 
historic sacrifices being asked of servicemembers in this time of 
protracted war, and the dubious rationale for alternative pay raise 
proposals, any assertion that military people are overpaid is grossly 
off the mark.
    The Coalition believes a basic pay raise of at least 1.9 
percent--.5 percent above the ECI standard--is the bare minimum the 
Nation should do to sustain its military pay comparability commitment 
for 2011.
    Family Readiness and Support
    A fully funded, robust family readiness program continues to be 
crucial to overall readiness of our military, especially with the 
demands of frequent and extended deployments.
    Resource issues continue to plague basic installation support 
programs. At a time when families are dealing with increased 
deployments, they often are being asked to do without in other 
important areas. We are grateful that the subcommittee included a 
provision in last year's defense bill that will help improve family 
readiness and support though greater outreach. The Department's 
establishment of a comprehensive benefits web site for servicemembers 
and their families will help provide virtual assistance regardless of 
their physical proximity to installation-supported networks.
    Additionally, we could not agree more with last year's ``Sense of 
Congress'' regarding the establishment of flexible spending accounts 
(FSAs) for members of the uniformed services. We urge the subcommittee 
to continue to press the Defense Department until servicemembers are 
provided the same eligibility to participate in FSAs that all other 
Federal employees enjoy.
    Quality education is a top priority to military families. 
Servicemembers are assigned all across the United States and the world. 
Providing appropriate and timely funding of Impact Aid through the 
Department of Education is critical to ensuring quality education 
military children deserve, regardless of where they live.
    The Coalition believes that several initiatives could have 
unintended negative consequences on school facility needs and 
educational programs affecting military children. Service 
transformation, overseas rebasing initiatives, housing privatization, 
base realignment and closure actions all have the potential to affect 
the military family and their access to quality education programs.
    The Coalition recommends that the subcommittee:
         Press DOD to assess the effectiveness of programs and 
        support mechanisms to assist military families with deployment 
        readiness, responsiveness, and reintegration;
         Ensure that effective programs--including the Family 
        Readiness Council--are fully funded and their costs are 
        included in the annual budget process;
         Provide authorization and funding to accelerate 
        increases in availability of child care to meet both Active and 
        Reserve component requirements;
         Insist DOD implement flexible spending accounts to let 
        active duty and Selected Reserve families pay out-of-pocket 
        dependent and health care expenses with pre-tax dollars;
         Monitor and continue to expand family access to mental 
        health counseling;
         Promote expansion of military spouse opportunities to 
        further educational and career goals;
         Ensure additional and timely funding of Impact Aid 
        plus continued DOD supplemental funding for highly-impacted 
        military schools; and
         Mitigate the impact of Service transformation, 
        overseas rebasing initiatives, housing privatization and base 
        realignment on school facility needs and educational programs 
        affecting military children.
    Permanent Change of Station (PCS) Allowances
    It's an unfortunate fact that members and their families are forced 
to incur significant out-of-pocket expenses when complying with 
government-directed moves.
    For example, the current Monetary Allowance in Lieu of 
Transportation (MALT) rate used for PCS moves still fall significantly 
short of meeting members' actual travel costs. The current rate of 24 
cents per mile is less than half of the 50 cents per mile authorized 
for temporary duty travel. Also, military members must make any advance 
house-hunting trips at personal expense, without any government 
reimbursements such as Federal civilians receive.
    DOD states that the MALT rate was not intended to reimburse 
servicemembers for travel by automobile, but simply a payment in lieu 
of providing transportation in-kind.
    The Coalition believes strongly that the MALT concept is an 
outdated one, having been designed for a conscripted, single, non-
mobile force.
    Travel reimbursements should be adjusted to reflect the reality 
that today's all-volunteer servicemembers do, in fact, own cars and 
that it is unreasonable not to reimburse them for the cost of driving 
to their next duty stations in conjunction with PCS orders.
    Simply put, PCS travel is no less government-ordered than is TDY 
travel, and there is simply no justification for paying less than half 
the TDY travel rate when personal vehicle use is virtually essential.
    Additionally, the government should acknowledge that reassigning 
married servicemembers within the United States (including overseas 
locations) usually requires relocation of two personal vehicles. In 
that regard, the overwhelming majority of service families consist of 
two working spouses, making two privately owned vehicles a necessity. 
Yet the military pays for shipment of only one vehicle on overseas 
moves, including moves to Hawaii and Alaska, which forces relocating 
families into large out-of-pocket expenses, either by shipping a second 
vehicle at their own expense or selling one car before leaving the 
States and buying another upon arrival.
    At a minimum, the Coalition believes military families being 
relocated to Alaska, Hawaii, and U.S. territories should be authorized 
to ship a second personal vehicle, as the subcommittee has rightly 
supported in the past.
    The Coalition urges the subcommittee to continue its efforts to 
upgrade permanent change-of-station allowances to better reflect 
expenses imposed on servicemembers, with priority on:
         Shipping a second vehicle on overseas accompanied 
        assignments;
         Authorizing at least some reimbursement for house-
        hunting trip expenses; and
         Increasing PCS mileage rates to more accurately 
        reflect members' actual transportation costs.
    Education Enhancements
    The Post-September 11 GI Bill was a truly historic achievement that 
will provide major long-term benefits for military people and for 
America; however, the Coalition remains sensitive that transferability 
of the benefit to family members was restricted to members of the 
``Armed Forces.''
    The Coalition believes all members of the uniformed services, 
including commissioned officers of the U.S. Public Health Service and 
NOAA Corps, should be able to transfer their benefit to family members. 
All previous GI Bill provisions have applied equally to all uniformed 
services, and the Post-September 11 GI Bill should not be an exception.
    The Coalition urges the subcommittee to support amending the 
statute to authorize all otherwise-qualifying members of the 
``uniformed services'' to transfer Post-September 11 GI Bill benefits 
to family members.
Morale, Welfare, and Recreation (MWR) and Quality of Life (QoL) 
        Programs
    MWR activities and QoL programs have become ever more critical in 
helping servicemembers and their families cope with the extended 
deployments and constant changes going on in the force.
    The availability of appropriated funds to support MWR activities is 
an area of continuing concern for the Coalition. We are especially 
apprehensive that additional reductions in funding or support services 
may occur due to slow economic recovery and record budget deficits.
    BRAC actions pose an additional concern as DOD is struggling to 
meet the 2011 deadline at many BRAC locations. Two reports issued by 
the Government Accountability Office indicate significant challenges 
remain in areas of funding, facilities, and overall management.
    The Coalition is very concerned whether needed infrastructure and 
support programs will be in place in time to meet families' needs.
    TMC urges the subcommittee to:
         Protect funding for critical family support and QoL 
        programs and services to meet the emerging needs of 
        beneficiaries and the timelines of the Services' transformation 
        plans;
         Oppose any initiative to withhold or reduce 
        appropriated support for family support and QoL programs to 
        include: recreation facilities, child care, exchanges and 
        commissaries, housing, health care, education, family centers, 
        and other traditional and innovative support services;
         Prevent any attempts to consolidate or civilianize 
        military service exchange and commissary programs; and
         Sustain funding for support services and 
        infrastructure at both closing and gaining installations 
        throughout the entire transformation process, including 
        exchange, commissary and TRICARE programs.
                       national guard and reserve
    Over 142,000 Guard and Reserve service men and women members are 
serving on active duty.
    Since September 11, 2001, more than 752,000 Guard and Reserve 
service men and women have been called up, including well over 200,000 
who have served multiple tours. There is no precedent in American 
history for this sustained reliance on citizen-soldiers and their 
families. To their credit, Guard and Reserve combat veterans continue 
to reenlist, but the current pace of routine, recurring deployments 
cannot be sustained indefinitely.
    Guard and Reserve members and families face unique challenges in 
their readjustment following active duty service. Unlike active duty 
personnel, many Guard and Reserve members return to employers who 
question their contributions in the civilian workplace, especially as 
multiple deployments have become the norm. Many Guard-Reserve troops 
return with varying degrees of combat-related injuries and stress 
disorders, and encounter additional difficulties after they return that 
can cost them their jobs, careers and families.
    Despite the continuing efforts of the Services and Congress, most 
Guard and Reserve families do not have access to the same level of 
counseling and support that active duty members have. In short, the 
Reserve components face increasing challenges virtually across the 
board, including major equipment shortages, end-strength requirements, 
wounded-warrior health care, and pre- and post-deployment assistance 
and counseling.
Operational Reserve Retention and Retirement Reform
    Congress took the first step in modernizing the Reserve 
compensation system with enactment of early retirement eligibility for 
certain reservists activated for at least 90 continuous days served 
since January 28, 2008. This change validates the principle that 
compensation should keep pace with service expectations and work as an 
inducement to retention and sustainment of the Operational Reserve 
Force.
    Guard/Reserve mission increases and a smaller Active-Duty Force 
mean Guard/Reserve members must devote a much more substantial portion 
of their working lives to military service than ever envisioned when 
the current retirement system was developed in 1948.
    Repeated, extended activations make it more difficult to sustain a 
full civilian career and impede reservists' ability to build a full 
civilian retirement, 401(k), etc. Regardless of statutory protections, 
periodic long-term absences from the civilian workplace can only limit 
Guard/Reserve members' upward mobility, employability and financial 
security. Further, strengthening the Reserve retirement system will 
serve as an incentive to retaining critical mid-career officers and 
NCOs for continued service and thereby enhance readiness.
    As a minimum, the next step in modernizing the Reserve retirement 
system is to provide equal retirement-age-reduction credit for all 
activated service rendered since September 11, 2001. The current law 
that credits only active service since January 28, 2008 disenfranchises 
and devalues the service of hundreds of thousands of Guard/Reserve 
members who served combat tours (multiple tours, in thousands of cases) 
between 2001 and 2008.
    The statute also must be amended to eliminate the inequity inherent 
in the current fiscal year retirement calculation, which only credits 
90 days of active service for early retirement purposes if it occurs 
within the same fiscal year. The current rule significantly penalizes 
members who deploy in July or August vs. those deploying earlier in the 
fiscal year.
    It is patently unfair, as the current law requires, to give 3 
months retirement age credit for a 90-day tour served from January 
through March, but only half credit for a 120-day tour served from 
August through November (because the latter covers 60 days in each of 2 
fiscal years).
    For the near term, the Military Coalition places particular 
priority on authorizing early retirement credit for all qualifying 
post-September 11 active duty service performed by Guard/Reserve 
servicemembers and eliminating the fiscal-year-specific accumulator 
that bars equal credit for members deploying for equal periods during 
different months of the year.
    Ultimately, TMC believes we must move forward to provide a reduced 
age entitlement for retired pay and health coverage for all Reserve 
component members--that is, an age/service formula or outright 
eligibility, if otherwise qualified, at age 55.
    Further, TMC urges repeal of the annual cap of 130 days of inactive 
duty training points that may be credited towards a Reserve retirement.
Guard and Reserve Yellow Ribbon Readjustment
    Congress has provided increased resources to support the transition 
of warrior-citizens back into the community. But program execution 
remains spotty from State to State and falls short for returning 
Federal Reserve warriors in widely dispersed regional commands. 
Military and civilian leaders at all levels must improve the 
coordination and delivery of services for the entire Operational 
Reserve Force. Many communities are eager to support and many do that 
well. But, yellow ribbon efforts in a number of locations amount to 
little more than PowerPoint slides and little or no actual 
implementation.
    TMC is grateful for the subcommittee's attention to this issue and 
for including reporting requirements on progress in the National 
Defense Authorization Act for Fiscal Year 2010.
    Making Yellow Ribbon work effectively is a major Coalition 
priority, and our hope is that the NDAA-required reports will point the 
way for further subcommittee action in this important area.
    TMC urges the subcommittee to hold oversight hearings and to direct 
additional improvements in coordination, collaboration, and consistency 
of Yellow Ribbon services. DOD must ensure that State-level best 
practices--such as those in Maryland, Minnesota and New Hampshire--are 
applied for all Operational Reserve Force members and their families, 
and that Federal Reserve veterans have equal access to services and 
support available to National Guard veterans. Community groups, 
employers, and service organization efforts need to be encouraged and 
better coordinated to supplement unit, component, Service and VA 
outreach and services.
Guard/Reserve GI Bill
    TMC is grateful to Congress for inclusion of a critical ``earn as 
you serve'' principle in the new Post-September 11 GI Bill, which 
allows operational reservists to accrue educational benefits for each 
aggregate call-up of 90 days or more active duty. Inexplicably, 
however, active duty members of the National Guard serving under Title 
32 orders were not included in the new program despite their critical 
role in homeland defense, counter-drug, border control, and other 
missions.
    TMC urges the subcommittee to work with the Veterans Affairs 
Committee to include Title 32 AGRs in the Post-September 11 statute.
    TMC's longstanding recommendation of coordinating and integrating 
various educational benefit programs has been made more challenging 
with the Post-September 11 GI Bill.
    For example, benefits for initially joining the Guard or Reserve as 
authorized in Chapter 1606, 10 U.S.C. continue to decline in proportion 
to the active duty Montgomery GI Bill (Chap. 30, 38 U.S.C.) and the new 
Post-September 11 GI Bill. Reserve MGIB benefit levels have slid to 24 
percent of the active duty MGIB benefit, compared to 47-50 percent 
during the first 15 years of the program. Restoration of the original 
ratio would raise basic Reserve rates from the current $333 per month 
to $643-$684 per month for full-time study.
    TMC maintains that restoring the ratio is not only a matter of 
equity, but essential to long-term success of Guard and Reserve 
recruiting programs.
    Based on the DOD/Services' 10-year record of indifference to the 
basic Selected Reserve GI Bill under Chapter 1606, 10 U.S.C., TMC 
recommends either: restoring Reserve benefits to 47-50 percent of 
active duty benefits or transferring the Chapter 1606 statute from 
title 10 to title 38 so that it can be coordinated with other 
educational benefits programs in a 21st century GI Bill architecture. 
TMC also supports assured academic reinstatement, including guaranteed 
re-enrollment, for returning operational reservists.
Special and Incentive Pays
    Increased reliance on Guard and Reserve Forces to perform active 
duty missions has highlighted differentials and inconsistencies between 
treatment of active duty vs. Guard and Reserve members on a range of 
special and incentive pays. Congress has acted to address some of these 
disparities, but more work is needed.
    The Coalition urges the subcommittee to ensure equitable treatment 
of Guard and Reserve vs. Active Duty members for the full range of 
special and incentive pays.
                             retiree issues
    The Military Coalition remains grateful to the subcommittee for its 
support of maintaining a strong military retirement system to help 
offset the extraordinary demands and sacrifices inherent in a career of 
uniformed service.
Concurrent Receipt
    In the NDAA for Fiscal Year 2003 and Fiscal Year 2004, Congress 
acknowledged the inequity of the disability offset to earned retired 
pay and established a process to end or phase out the offset for many 
disabled retirees. The Coalition is extremely grateful with the 
subcommittee's efforts to continue progress in easing the adverse 
effects of the offset.
    Last year we were very optimistic that another very deserving group 
of disabled retirees would become eligible for concurrent receipt when 
the White House included a concurrent receipt proposal in the Budget 
Resolution--the first time in history any administration had ever 
proposed such a fix.
    The administration's proposal, again submitted in this year's 
budget, would expand concurrent receipt eligibility over a 5 year 
period to all those forced to retire early from Service due to a 
disability, injury, or illness that was service-connected (chapter 61 
retirees).
    Thanks to the strong support of Armed Services Committee leaders, 
the proposal was included in the House version of the NDAA for Fiscal 
Year 2010. The Coalition was dismayed that, despite your leadership 
efforts and White House support, the provision failed to survive 
conference--an extremely disappointing outcome for a most deserving 
group of disabled retirees.
    Our fervent hope is that the subcommittee will redouble its efforts 
to authorize this initiative for fiscal year 2011.
    Additionally, the Coalition is concerned that an inadvertent 
problem exists in the statutory Combat-Related Special Compensation 
(CRSC) computation formula causes many seriously disabled and clearly 
eligible members to receive little or nothing in the way of CRSC. The 
Defense Department has acknowledged the problem in discussions with the 
subcommittee staff, and the Coalition urges the subcommittee to correct 
this technical problem.
    The Coalition believes strongly in the principle that career 
military members earn their retired pay by service alone, and that 
those unfortunate enough to suffer a service-caused disability in the 
process should have any VA disability compensation from the VA added 
to, not subtracted from their service-earned military retired pay and 
this remains a key goal in 2010--regardless of years of service or 
severity of their disability rating.
    The Coalition's continuing goal is to fully eliminate the deduction 
of VA disability compensation from earned military retired pay for all 
disabled retirees. In pursuit of that goal, the Coalition's immediate 
priorities include:
         Phasing out the disability offset for all Chapter 61 
        (medical) retirees; and
         Correcting the CRSC formula to ensure the intended 
        compensation is delivered.
Proposed Military Retirement Changes
    The Coalition remains concerned that as budgets get tighter and 
calls to establish a new entitlement or debt-reduction commission grow 
louder, the military retirement system may come under greater scrutiny 
to seek savings or ``efficiencies.''
    Our concern is based on past experience that seeking to wring 
savings from military retirement programs poses a significant threat to 
long-term retention and readiness by decreasing the attractiveness of 
serving for 2 or 3 decades in uniform, with all of the extraordinary 
demands and sacrifice inherent in such extended career service.
    For example, the Coalition is very concerned that proposals to 
``civilianize'' military retirement benefits, such as the changes 
recommended by the 10th Quadrennial Review of Military Compensation 
(QRMC) fail utterly to recognize the fundamental purpose of the 
military retirement system in offsetting service conditions that are 
radically more severe than those experienced by the civilian workforce.
    The QRMC proposed converting the military retirement system to a 
civilian-style plan under which full retired pay wouldn't be paid until 
age 57-60; vesting retirement benefits after 10 years of service; and 
using flexible ``gate pays'' and separation pay at certain points of 
service to encourage continued service in certain age groups or skills 
and encourage others to leave, depending on service needs for certain 
kinds of people at the time.
    Reduced to its essence, this admittedly cost-neutral plan would 
take money from people who stay for a career in order to pay additional 
benefits to those who leave the military short of a career.
    If this system were in place today, a 10-year infantryman facing 
his or her fourth combat tour would be offered a choice between: (a) 
allowing immediate departure with a vested retirement; vs. (b) 
continuing under current service conditions for another 10-20 years and 
having to wait until age 58 for immediate retired pay.
    The Coalition believes strongly that, if such a system existed for 
today's force under today's service conditions, the military services 
would already be mired in a deep and traumatic retention crisis.
    Further, the QRMC proposal is so complicated that people evaluating 
career decisions at the 4- to 10-year point would have no way to 
project their future military retirement benefits. Gate pays available 
at the beginning of a career could be cut back radically if the force 
happened to be undergoing a strength reduction later in a member's 
career.
    In contrast, the current military retirement system makes it very 
clear from the pay table what level of retired pay would be payable, 
depending how long one served and how well one progressed in grade.
    The sustained drawing power of the 20-year retirement system 
provides an essential long-term moderating influence that keeps force 
managers from over-reacting to short-term circumstances. Had force 
planners had such a system in effect during the drawdown-oriented 
1990s, the Services would have been far less prepared for the post-
September 11 wartime environment.
    Many such proposals have been offered in the past, and have been 
discarded for good reasons. The only initiative to substantially 
curtail/delay military retired pay that was enacted--the 1986 REDUX 
plan--and only a remnant remain as the mandatory REDUX was scrapped 13 
years later after it began inhibiting retention.
    The only remnant that remains--and has been in place unchanged 
since 1999--is a voluntary program known as the Career Status Bonus--a 
$30,000 ``bonus'' bait and switch--where the servicemember can receive 
$30,000 at their 15 year point as long as they accept REDUX.
    That ``bonus'' was a bad deal at the time and it gets worse with 
every passing year as pay (and retired pay) increases.
    After taxes, the so-called bonus is more like $22,000 or $23,000. 
To get that, the typical NCO who retires with 20 years of service must 
agree to sacrifice more than $300,000 in future retired pay (those who 
live longer than average sacrifice far more). That's how much less 
REDUX is worth compared to the normal system.
    TMC urges the subcommittee to:
         Reject any initiatives to ``civilianize'' the military 
        system without adequate consideration of the unique and 
        extraordinary demands and sacrifices inherent in a military vs. 
        a civilian career; and
         Eliminate the Career Status Bonus for servicemembers 
        as it significantly devalues their retirement over time. In the 
        short term, the Services should be required to better educate 
        eligible members on the severe long-term financial penalty 
        inherent in accepting the REDUX option.
Disability Severance Pay
    The Coalition is grateful for the subcommittee's inclusion of a 
provision in the NDAA for Fiscal Year 2008 that ended the VA 
compensation offset of a servicemember's disability severance for 
people injured in the combat zone.
    However, we are concerned that the language of this provision 
imposes much stricter eligibility than that used for Combat-Related 
Special Compensation.
    The Coalition urges the subcommittee to amend the eligibility rules 
for disability severance pay to include all combat--or operations--
related injuries, using same definition as CRSC. For the longer term, 
the Coalition believes the offset should be ended for all members 
separated for service-caused disabilities.
    Former Spouse Issues
    For nearly a decade the recommendations of the Defense Department's 
September 2001 report to Congress on the Uniformed Services Former 
Spouse Protection Act (USFSPA) have gone nowhere. For several years, 
DOD submitted many of the report's recommendations annually to Congress 
only to have one or two supported by the subcommittee while many others 
were dropped.
    The USFSPA is a very emotional topic with two distinct sides to the 
issue--just as any divorce has two distinct parties affected. The 
Coalition believes strongly that there are several inequities in the 
act that need to be addressed and corrected that could benefit both 
affected parties--the servicemember and the former spouse.
    But in order to make progress, we believe Congress cannot piecemeal 
DOD's recommendations. We support a collective grouping of legislation 
that would provide benefit to both affected parties. Absent this 
approach, the legislation will be perceived as supporting one party 
over the other and go nowhere.
    To fairly address the problems with the act, all affected parties 
need to be heard--and the Coalition would greatly appreciate the 
opportunity to address the inequities in a hearing before the 
subcommittee.
    The Coalition requests a hearing to address USFSPA inequities. In 
addition, we recommend legislation to include all of the following:
         Base the award amount to the former spouse on the 
        grade and years of service of the member at time of divorce 
        (and not retirement);
         Prohibit the award of imputed income, which 
        effectively forces active duty members into retirement;
         Extend 20/20/20 benefits to 20/20/15 former spouses;
         Permit the designation of multiple Survivor Benefit 
        Plan (SBP) beneficiaries with the presumption that SBP benefits 
        must be proportionate to the allocation of retired pay;
         Eliminate the ``10-year Rule'' for the direct payment 
        of retired pay allocations by the Defense Finance and 
        Accounting Service (DFAS);
         Permit SBP premiums to be withheld from the former 
        spouse's share of retired pay if directed by court order;
         Permit a former spouse to waive SBP coverage;
         Repeal the 1-year deemed election requirement for SBP; 
        and
         Assist the DOD and Services with greater outreach and 
        expanded awareness to members and former spouses of their 
        rights, responsibilities, and benefits upon divorce.
                            survivor issues
    The Coalition is grateful to the subcommittee for its significant 
efforts in recent years to improve the Survivor Benefit Plan (SBP), 
especially its major achievement in eliminating the significant benefit 
reduction previously experienced by SBP survivors upon attaining age 
62.
SBP-DIC Offset
    The Coalition believes strongly that current law is unfair in 
reducing military SBP annuities by the amount of any survivor benefits 
payable from the DIC program.
    If the surviving spouse of a retiree who dies of a service-
connected cause is entitled to DIC from the Department of Veterans 
Affairs and if the retiree was also enrolled in SBP, the surviving 
spouse's SBP annuity is reduced by the amount of DIC. A pro-rata share 
of the SBP premiums is refunded to the widow upon the member's death in 
a lump sum, but with no interest. This offset also affects all 
survivors of members who are killed on active duty.
    The Coalition believes SBP and DIC payments are paid for different 
reasons. SBP is insurance purchased by the retiree and is intended to 
provide a portion of retired pay to the survivor. DIC is a special 
indemnity compensation paid to the survivor when a member's service 
causes his or her premature death. In such cases, the VA indemnity 
compensation should be added to the SBP annuity the retiree paid for, 
not substituted for it.
    It should be noted as a matter of equity that surviving spouses of 
Federal civilian retirees who are disabled veterans and die of 
military-service-connected causes can receive DIC without losing any of 
their Federal civilian SBP benefits.
    The reality is that, in every SBP-DIC case, active duty or retired, 
the true premium extracted by the Service from both the member and the 
survivor was the ultimate one--the very life of the member. This 
reality was underscored by the August 2009 Federal Court of Appeals 
ruling in Sharp v. U.S. which found ``After all the servicemember paid 
for both benefits: SBP with premiums; DIC with his life.''
    The Veterans Disability Benefits Commission (VDBC) was tasked to 
review the SBP-DIC issue, among other DOD/VA benefit topics. The VDBC's 
final report to Congress agreed with the Coalition in finding that the 
offset is inappropriate and should be eliminated.
    In 2005, Speaker Pelosi and all House leaders made repeal of the 
SBP-DIC offset a centerpiece of their GI Bill of Rights for the 21st 
Century. Leadership has made great progress in delivering on other 
elements of that plan, but the only progress to date on the SBP-DIC 
offset has been the enactment a small monthly Special Survivor 
Indemnity Allowance (SSIA).
    The Coalition recognizes that the subcommittee's initiative in the 
fiscal year 2008 defense bill to establish a special survivor indemnity 
allowance (SSIA) was intended as a first, admittedly very modest, step 
in a longer-term effort to phase out the Dependency and Indemnity 
Compensation (DIC) offset to SBP.
    We appreciate the subcommittee's subsequent work to extend the SSIA 
to survivors of members who died while on active duty in the NDAA for 
Fiscal Year 2009, as well as its good-faith effort to provide a 
substantial increase in SSIA payments as part of the Family Smoking 
Prevention and Tobacco Control Act.
    The Coalition was extremely disappointed that the final version of 
that legislation greatly diluted the House-passed provision and 
authorized only very modest increases several years in the future.
    While fully acknowledging the subcommittee's and full committee's 
good-faith efforts to win more substantive progress, the Coalition 
shares the extreme disappointment and sense of abandonment of the SBP-
DIC widows who are being forced to sacrifice up to $1,110 each month 
and being asked to be satisfied with a $60 monthly rebate.
    For years, legislative leaders touted elimination of this ``widow's 
tax'' as a top priority. The Coalition understands the mandatory-
spending constraints the subcommittee has faced in seeking redress, but 
also points out that those constraints have been waived for many, many 
far more expensive initiatives. The Coalition believes widows whose 
sponsors' deaths were caused by military service should not be last in 
line for redress.
    The Coalition urges repeal of the SBP-DIC offset. TMC further 
recommends:
         Authorizing payment of SBP annuities for disabled 
        survivors into a Special Needs Trust; (Certain permanently 
        disabled survivors can lose eligibility for Supplemental 
        Security Income (SSI) and Medicaid and access to means-tested 
        State programs because of receipt of SBP. This initiative is 
        essential to put disabled SBP annuitants on an equal footing 
        with other SSI/Medicaid-eligibles who have use of special needs 
        trusts to protect disabled survivors.)
         Allowing SBP eligibility to switch to children if a 
        surviving spouse is convicted of complicity in the member's 
        death; and
         Reinstating SBP for survivors who previously 
        transferred payments to their children at such time as the 
        youngest child attains majority, or upon termination of a 
        second or subsequent marriage.
Final Retired Pay Check
    Under current law, DFAS recoups from military widows' bank accounts 
all retired pay for the month in which a retiree dies. Subsequently, 
DFAS pays the survivor a pro-rated amount for the number of days of 
that month in which the retiree was alive. This often creates hardships 
for survivors who have already spent that pay on rent, food, etc., and 
who routinely are required to wait several months for DFAS to start 
paying SBP benefits.
    The Coalition believes this is an extremely insensitive policy 
imposed by the government at the most traumatic time for a deceased 
member's next of kin. Unlike his or her active duty counterpart, a 
retiree's survivor receives no death gratuity. Many older retirees do 
not have adequate insurance to provide even a moderate financial 
cushion for surviving spouses.
    The VA is required by law to make full payment of the final month's 
VA disability compensation to the survivor of a disabled veteran. The 
disparity between DOD and VA policy on this matter is simply 
indefensible. Congress should do for retirees' widows the same thing it 
did 10 years ago to protect veterans' widows.
    TMC urges the subcommittee to authorize survivors of retired 
members to retain the final month's retired pay for the month in which 
the retiree dies.
                           health care issues
    The Coalition appreciates the subcommittee's strong and continuing 
interest in keeping health care commitments to military beneficiaries. 
We are particularly grateful for your support for the last few years in 
refusing to allow the Department of Defense to implement 
disproportional beneficiary health care fee increases.
    The Coalition is encouraged that the current administration so far 
has declined to pursue such increases, but has worked to reestablish a 
mutually constructive dialogue with beneficiary representatives.
    The unique package of military retirement benefits--of which a key 
component is a top-of-the-line health care benefit--is the primary 
offset afforded uniformed servicemembers for enduring a career of 
unique and extraordinary sacrifices that few Americans are willing to 
accept for 1 year, let alone 20 or 30. It is an unusual, and essential, 
compensation package that a grateful Nation provides for a relatively 
small fraction of the U.S. population who agree to subordinate their 
personal and family lives to protecting our national interests for so 
many years. This sacrifice, in a very real sense, constitutes a pre 
paid premium for their future healthcare.
Defense Health Program Cost Requirements
    The Coalition is grateful for the subcommittee's support for 
maintaining--and expanding where needed--the healthcare benefit for all 
military beneficiaries and especially for the Guard, Reserve, and 
military children, consistent with the demands imposed upon them.
    It's true that many private sector employers are choosing to shift 
an ever-greater share of health care costs to their employees and 
retirees, and that's causing many still-working military retirees to 
fall back on their service-earned TRICARE coverage. Fallout from the 
recent economic recession is likely to reinforce this trend.
    In the bottom-line-oriented corporate world, many firms see their 
employees as another form of capital, from which maximum utility is to 
be extracted at minimum cost, and those who quit are replaceable by 
similarly experienced new hires. But that can't be the culture in the 
military's closed, all-volunteer personnel system, whose long-term 
effectiveness is dependent on establishing a sense of mutual, long-term 
commitment between the servicemember and his/her country.
    The Coalition believes it's essential to bear other considerations 
in mind when considering the extent to which military beneficiaries 
should share in military health care costs.
    First and foremost, the military health system is not built for the 
beneficiary, but to sustain military readiness. Each Service maintains 
its unique facilities and systems to meet its unique needs, and its 
primary mission is to sustain readiness by keeping a healthy force and 
to be able to treat casualties from military actions. That model is 
built neither for cost efficiency nor beneficiary welfare. It's built 
for military readiness requirements.
    When military forces deploy, the military medical force goes with 
them, and that forces families, retirees and survivors to use the more 
expensive civilian health care system in the absence of so many 
uniformed health care providers.
    These military-unique requirements have significantly increased 
readiness costs. But those added costs were incurred for the 
convenience of the military, not for any beneficiary consideration, and 
beneficiaries should not be expected to bear any share of that cost -
particularly in wartime.
    The Coalition urges the subcommittee to take all possible steps to 
ensure continued full funding for Defense Health Program needs.
National Health Reform
    The Coalition opposes any effort to integrate TRICARE and VA health 
care systems in any proposal that Congress may develop as part of 
national health care reform. These two programs are integral to 
military readiness and are designed expressly to meet the unique needs 
of servicemembers, military retirees, veterans, wounded servicemembers, 
guardsmen and reservists, their families, and survivors.
    TMC urges that any national health reform legislation must:
         Protect the unique TRICARE, TRICARE For Life, and VA 
        health care benefits from unintended consequences such as 
        reduced access to care;
         Bar any form of taxation of TRICARE, TRICARE For Life, 
        or VA health care benefits, including those provided in 
        nongovernmental venues; and
         Preserve military and VA beneficiaries' choices.
Military vs. Civilian Cost-Sharing Measurement
    Defense leaders have in the past, and may in the future, assert 
that substantial military fee increases are needed to bring military 
beneficiary health care costs more in line with civilian practices. But 
merely contrasting military vs. civilian cash cost-shares is a grossly 
misleading, ``apple-to-orange'' comparison.
    For all practical purposes, those who wear the uniform of their 
country are enrolled in a 20- to 30-year prepayment plan that they must 
complete to earn lifetime health coverage. In this regard, military 
retirees and their families paid enormous ``upfront'' premiums for that 
coverage through their decades of service and sacrifice. Once that 
prepayment is already rendered, the government cannot simply pretend it 
was never paid, and focus only on post-service cash payments.
    DOD and the Nation--as good-faith employers of the trusting members 
from whom they demand such extraordinary commitment and sacrifice--have 
a reciprocal health care obligation to retired servicemembers and their 
families and survivors that far exceeds any civilian employer's to its 
workers and retirees.
    The Coalition believes that military beneficiaries from whom 
America has demanded decades of extraordinary service and sacrifice 
have earned coverage that is the best America has to offer.
Large Retiree Fee Increases Can Only Hurt Retention
    The reciprocal obligation of the government to maintain an 
extraordinary benefit package to offset the extraordinary sacrifices of 
career military servicemembers is a practical as well as moral 
obligation. Mid-career military losses can't be replaced like civilians 
can.
    Eroding benefits for career service can only undermine long-term 
retention/readiness. Today's servicemembers are very conscious of 
Congress' actions toward those who preceded them in service. One reason 
Congress enacted TRICARE For Life in 2000 is because the Joint Chiefs 
of Staff at that time said inadequate retiree health care was affecting 
attitudes among active duty servicemembers.
    That's more than backed up by two independent Coalition surveys. A 
2006 Military Officers Association of America survey drew 40,000 
responses, including more than 6,500 from active duty servicemembers. 
Over 92 percent in all categories of respondents opposed the DOD-
proposed fee hikes. There was virtually no difference between the 
responses of active duty servicemembers (96 percent opposed) and 
retirees under 65 (97 percent opposed). A Fleet Reserve Association 
survey showed similar results.
    Reducing military retirement benefits would be particularly ill-
advised when an overstressed force already is at increasing retention 
risk despite the current downturn of the economy and current recruiting 
successes.
Pharmacy
    The Coalition supports a strong TRICARE pharmacy benefit which is 
affordable and continues to meet the pharmaceutical needs of millions 
of eligible beneficiaries through proper education and trust. The TMC 
will oppose any degradation of current pharmacy benefits, including any 
effort to charge fees or copayments for use of military treatment 
facilities.
    The Coalition would oppose the need for pharmacy co-pay increases 
now that Congress has approved Federal pricing for the TRICARE retail 
pharmacy system. The Coalition notes that due to continued legal 
maneuvering, Federal pricing still has not been implemented by the 
executive branch, and this failure is costing DOD tens of millions of 
dollars with every passing month. This is an excellent example of why 
the Coalition objects to basing beneficiary fees on a percentage of DOD 
costs--because DOD all-too-frequently does not act, or is not allowed 
to act, in a prudent way to hold costs down.
    The Coalition has volunteered to conduct a joint campaign with DOD 
to promote beneficiary use of lower-cost medications and distribution 
venues--a ``win-win'' opportunity that will reduce costs for 
beneficiaries and the government alike.
    The Coalition also believes that positive incentives are the best 
way to encourage beneficiaries to continue medication regimens that are 
proven to hold down long-term health costs. In this regard, TMC 
believes eliminating copays for medications to control chronic 
conditions (e.g., diabetes, asthma, high blood pressure, and 
cholesterol) are more effective than negative ones such as copayment 
increases.
    The Coalition urges the subcommittee to ensure continued 
availability of a broad range of medications, including the most-
prescribed medications, in the TRICARE pharmacy system, and to ensure 
that the first focus on cost containment should be on initiatives that 
encourage beneficiaries to take needed medications and reduce program 
costs without shifting costs to beneficiaries.
Alternative Options to Make TRICARE More Cost-Efficient
    TMC continues to believe strongly that DOD has not sufficiently 
investigated options to make TRICARE more cost-efficient without 
shifting costs to beneficiaries. The Coalition has offered a long list 
of alternative cost-saving possibilities, including:
         Positive incentives to encourage beneficiaries to seek 
        care in the most appropriate and cost effective venue;
         Encouraging improved collaboration between the direct 
        and purchased care systems and implementing best business 
        practices and effective quality clinical models;
         Focusing the military health system, health care 
        providers, and beneficiaries on quality measured outcomes;
         Improving MHS financial controls and avoiding overseas 
        fraud by establishing TRICARE networks in areas fraught with 
        fraud;
         Establishing TRICARE networks in areas of high TRICARE 
        Standard utilization to take full advantage of network 
        discounts;
         Promoting retention of other health insurance by 
        making TRICARE a true second-payer to other insurance (far 
        cheaper to pay another insurance's co-pay than have the 
        beneficiary migrate to TRICARE);
         Encouraging DOD to effectively utilize their data from 
        their electronic health record to better monitor beneficiary 
        utilization patterns to design programs which truly match 
        beneficiaries needs;
         Sizing and staffing military treatment facilities to 
        reduce reliance on network providers and develop effective 
        staffing models which support enrolled capacities;
         Reducing long-term TRICARE Reserve Select (TRS) costs 
        by allowing servicemembers the option of a government subsidy 
        of civilian employer premiums during periods of mobilization;
         Doing far more to promote use of mail-order pharmacy 
        system and formulary medications via mailings to users of 
        maintenance medications, highlighting the convenience and 
        individual expected cost savings; and
         Encouraging retirees to use lowest-cost-venue military 
        pharmacies at no charge, rather than discouraging such use by 
        limiting formularies, curtailing courier initiatives, etc.
    The Coalition is pleased that DOD has begun to implement some of 
our suggestions, and stands ready to partner with DOD to investigate 
and jointly pursue these and other options that offer potential for 
reducing costs.
TMC Healthcare Cost Principles
    The Military Coalition believes strongly that the recent fee 
controversy is caused in part by the lack of any statutory record of 
the purpose of military health care benefits and the specific benefit 
levels earned by a career of service in uniform. Under current law, the 
Secretary of Defense has broad latitude to make administrative 
adjustments to fees for TRICARE Prime and the pharmacy systems. Absent 
congressional intervention, the Secretary can choose not to increase 
fees for years at a time or can choose to quadruple fees in 1 year.
    Until a few years ago, this was not a particular matter of concern, 
as no Secretary had previously proposed dramatic fee increases. Given 
recent years' unsettling experience, the Coalition believes strongly 
that the subcommittee needs to establish more specific and permanent 
principles, guidelines, and prohibitions to protect against dramatic 
budget-driven fluctuations in this most vital element of 
servicemembers' career compensation incentive package.
    The Coalition strongly recommends that Congress establish statutory 
findings, a sense of Congress on the purpose and principles of military 
health care benefits earned by a career of uniformed service that 
states:
         Active duty members and families should be charged no 
        fees except retail pharmacy co-payments, except to the extent 
        they make the choice to participate in TRICARE Standard or use 
        out-of-network providers under TRICARE Prime;
         The TRICARE Standard inpatient copay should not be 
        increased further for the foreseeable future. At $535 per day, 
        it already far exceeds inpatient copays for virtually any 
        private sector health plan;
         There should be no enrollment fee for TRICARE Standard 
        or TRICARE For Life (TFL), since neither offers assured access 
        to TRICARE-participating providers. An enrollment fee implies 
        enrollees will receive additional services, as Prime enrollees 
        are guaranteed access to participating providers in return for 
        their fee. Congress already has required TFL beneficiaries to 
        pay substantial Medicare Part B fees to gain TFL coverage;
         All retired servicemembers earned equal health care 
        coverage by virtue of their service; and
         DOD should make all efforts to provide the most 
        efficient use of allocated resources and cut waste prior to 
        proposing additional or increased fees on eligible 
        beneficiaries.
TRICARE Prime
    The Coalition is very concerned about growing dissatisfaction among 
TRICARE Prime enrollees--which is actually higher among active duty 
families than among retired families. The dissatisfaction arises from 
increasing difficulties experienced by beneficiaries in getting 
appointments, referrals to specialists, and sustaining continuity of 
care from specific providers.
    Increasingly, beneficiaries with a primary care manager in a 
military treatment facility find they are unable to get appointments 
because so many providers have deployed, PCSed, or are otherwise 
understaffed/unavailable.
    The Coalition supports the implementation of a pilot study by TMA 
in each of the three TRICARE Regions to study the efficacy of 
revitalizing the resource sharing program used prior to the 
implementation of the TRICARE-The Next Generation (T-NEX) contracts 
under the current Managed Care Support contract program.
    The Coalition supports adoption of the ``Medical Home'' patient-
centered model to help ease such problems.
    But the new TRICARE contracts and the attendant reduction of Prime 
service areas outside the vicinity of military installations will 
exacerbate anxieties by forcing disenrollment of many thousands of 
current Prime beneficiaries.
    The Coalition strongly advocates the transparency of healthcare 
information via the patient electronic record between both the MTF 
provider and network providers. Additionally, institutional and 
provider healthcare quality information should be available to all 
beneficiaries so that they can make better informed decisions.
    The Military Coalition urges the subcommittee to require reports 
from DOD and from the managed care support contractors, on actions 
being taken to improve Prime patient satisfaction, provide assured 
appointments within Prime access standards, reduce delays in 
preauthorization and referral appointments, and provide quality 
information to assist beneficiaries in making informed decisions.
                            tricare standard
TRICARE Standard Provider Participation
    The Coalition appreciates the subcommittee's continuing interest in 
the specific problems unique to TRICARE Standard beneficiaries. TRICARE 
Standard beneficiaries need assistance in finding participating 
providers within a reasonable time and distance from their home. This 
is particularly important with the expansion of TRICARE Reserve Select 
and the upcoming change in the Prime Service Areas, which will place 
thousands more beneficiaries into TRICARE Standard.
    The Coalition is concerned that DOD has not yet established any 
standard for adequacy of provider participation, as required by section 
711(a)(2) of the NDAA for Fiscal Year 2008. Participation by half of 
the providers in a locality may suffice if there is not a large 
Standard beneficiary population. The Coalition hopes to see an 
objective participation standard (perhaps number of beneficiaries per 
provider) that would help shed more light on which locations have 
participation shortfalls of Primary Care Managers and Specialists that 
require positive action.
    The Coalition urges the subcommittee to insist on immediate 
delivery of an adequacy threshold for provider participation, below 
which additional action is required to improve such participation. The 
Coalition also recommends requiring a specific report on participation 
adequacy in the localities where Prime Service Areas will be 
discontinued under the new TRICARE contracts.
TRICARE Reimbursement Rates
    Physicians consistently report that TRICARE is virtually the 
lowest-paying insurance plan in America. Other national plans typically 
pay providers 25-33 percent more. In some cases the difference is even 
higher.
    While TRICARE rates are tied to Medicare rates, TRICARE Managed 
Care Support Contractors make concerted efforts to persuade providers 
to participate in TRICARE Prime networks at a further discounted rate. 
Since this is the only information providers receive about TRICARE, 
they see TRICARE as lower-paying than Medicare.
    This is exacerbated by annual threats of further reductions in 
TRICARE rates due to the statutory Medicare rate-setting formula. 
Physicians may not be able to afford turning away Medicare patients, 
but many are willing to turn away a small number of patients who have 
low-paying, high-administrative-hassle TRICARE coverage.
    The TRICARE Management Activity has the authority to increase the 
reimbursement rates when there is a provider shortage or extremely low 
reimbursement rate for a specialty in a certain area and providers are 
not willing to accept the low rates. In some cases, a State Medicaid 
reimbursement for a similar service is higher than that of TRICARE. But 
the Department has been reluctant to establish a standard for adequacy 
of participation to trigger higher payments.
    The Coalition places primary importance on securing a permanent fix 
to the flawed statutory formula for setting Medicare and TRICARE 
payments to doctors.
    To the extent a Medicare rate freeze continues, we urge the 
subcommittee to encourage DOD to use its reimbursement rate adjustment 
authority as needed to sustain provider acceptance.
    The Coalition urges the subcommittee to require a Comptroller 
General report on the relative propensity of physicians to participate 
in Medicare vs. TRICARE, and the likely effect on such relative 
participation of a further freeze in Medicare/TRICARE physician 
payments along with the effect of an absence of bonus payments.
Dental Care
    The Coalition appreciates the subcommittee's action in continuing 
active duty-level dental coverage for dependent survivors and allowing 
transitional dental care for Reserve members who separate after 
supporting contingency missions.
    Active Duty Dependent Dental Plan
    TMC is sensitive to beneficiary concerns that Active Duty Dental 
Plan coverage for orthodontia has been eroded by inflation over a 
number of years.
    The current orthodontia payment cap is $1,500, which has not been 
changed since 2001. In the intervening years, the orthodontia cost has 
risen from an average of $4,000 to more than $5,000.
    The Coalition understands that, under current law, increasing this 
benefit could require a reduction in some other portion of the benefit, 
which we do not support.
    The Coalition notes that current law assumes a 60 percent DOD 
subsidy for the active duty dental plan, whereas other Federal health 
programs (e.g., FEHB Plan and TRS) are subsidized at 72 percent.
    The Coalition recommends increasing the DOD subsidy for the Active 
Duty Dependent Dental Plan to 72 percent and increasing the cap on 
orthodontia payments to $2,000.
Guard and Reserve Healthcare
    Continuum of Health Care Insurance Options for The Guard and 
        Reserve
    The Coalition is very grateful for passage of TRICARE Retired 
Reserve (TRR) coverage for ``gray area'' reservists in the NDAA for 
Fiscal Year 2010.
    The Coalition notes that DOD complied with direction from Congress 
to reduce TRICARE Reserve Select (TRS) premiums to the actual cost of 
coverage. For 2009, monthly TRS premiums were reduced to $47.51 (vs. 
$81) for member-only coverage and to $180.17 (vs. $253) for family 
coverage.
    TMC believes a review of the current statutory methodology for 
adjusting premiums based on program costs should be conducted to assess 
whether any of the costs currently included are, in fact, costs of 
maintaining readiness or ``costs of doing business'' for the Defense 
Department that don't contribute to delivering benefit value to 
beneficiaries (and therefore should be excluded, with the expected 
result that premiums would go down). In principle, TMC believes 
Congress should establish a moratorium on TRS premium increases and 
direct DOD to make a determined effort for the most efficient use of 
resources allocated and to cut waste prior to the consideration of any 
adjustment in such premiums.
    Moreover, TMC believes that holding the line on TRS premiums will 
encourage more families to enroll. DOD, the Services, and the Reserve 
components must do much more to advertise the TRS program which stands 
at only 6-7 percent of eligible beneficiaries.
    The Coalition also believes Congress is missing an opportunity to 
reduce long-term health care costs and increase beneficiary 
satisfaction by authorizing eligible members the option of electing a 
DOD subsidy of their civilian insurance premiums during periods of 
activation.
    Current law already authorizes payment of up to 24 months of FEHBP 
premiums for activated members who are civilian employees of the 
Defense Department. The Coalition believes all members of the Selected 
Reserve should have a similar option to have continuity of their 
civilian family coverage.
    Over the long term, when Guard and Reserve activations can be 
expected at a reduced pace, this option would offer considerable 
savings opportunity relative to funding permanent, year-round TRICARE 
coverage.
    DOD could calculate a maximum monthly subsidy level that would 
represent a cost savings to the government, so that each member who 
elected that option would reduce TRICARE costs.
    The Coalition recommends the subcommittee:
         Require a GAO review of DOD's methodology for 
        determining TRS costs for premium adjustment purposes to assess 
        whether it includes any costs of maintaining readiness or 
        ``costs of doing business'' for the Defense Department that 
        don't contribute to beneficiary benefit value and thus should 
        be excluded from cost/premium calculations;
         Authorize development of a cost-effective option to 
        have DOD subsidize premiums for continuation of a Reserve 
        employer's private family health insurance during periods of 
        deployment as an alternative to ongoing TRS coverage;
         Allow eligibility in Continued Health Care Benefits 
        Program (CHCBP) for Selected reservists who are voluntarily 
        separating and subject to disenrollment from TRS;
         Authorize members of the IRR who qualify for a Reserve 
        retirement at age 60 to participate in TRR as an incentive for 
        continued service (and higher liability for recall to active 
        duty);
         Monitor implementation of the new TRR authority to 
        ensure timely action and that premiums do not exceed 100 
        percent of the TRS premium; and
         Allow FEHB plan beneficiaries who are Selected 
        reservists the option of participating in TRS.
    Guard and Reserve Mental Health
    The Coalition is concerned that Guard and Reserve members and their 
families are at particular risk for undetected effects of the unseen 
injuries of war. The risk is compounded by Reserve component members' 
anxiety to return to their families as soon as possible, which 
typically entails expedited departure from active duty and return to a 
community where military health care and other support systems are 
limited.
    Unfortunately, most such members view the current post deployment 
health self-assessment program at demobilization sites as an impediment 
to prompt return to their families. Under this scenario, strong 
disincentives for self-reporting exacerbate an already wide variation 
in the diagnosis and treatment of post-traumatic stress disorder 
(PTSD), traumatic brain injury (TBI), depression, and other combat-
related stress conditions.
    The Coalition believes redeploying Reserve component members should 
be allowed to proceed to their home station and retained on active duty 
orders to complete post-deployment examination requirements at the home 
station. This change is important to improve proper diagnosis, 
reporting and treatment of physical and mental injuries; to help 
perfect potential service connected disability claims with the VA; and 
to help correct the non-reporting of injuries at the demobilization 
site.
    The Coalition believes that Guard and Reserve members and their 
families should have access to evidence-based treatment for PTSD, TBI, 
depression, and other combat-related stress conditions. Further, post-
deployment health examinations should be offered at the member's home 
station, with the member retained on active duty orders until 
completion of the exam.
    Guard and Reserve Health Information
    The Coalition is concerned that the current health records for many 
Guard and Reserve members do not contain treatment information that 
could be vital for diagnosis and treatment of a condition while on 
active duty. The capture of nonmilitary treatment is an integral part 
of the member's overall health status.
    The Coalition believes there should be an effort to improve the 
electronic capture of nonmilitary health information into the 
servicemember's medical record.
TRICARE For Life (TFL)
    When Congress enacted TFL in 2000, it explicitly recognized that 
this coverage was fully earned by career servicemembers' decades of 
sacrifice, and that the Medicare Part B premium would serve as the cash 
portion of the beneficiary premium payment. The Coalition believes that 
this remains true today and will oppose any new additional fees. 
Additionally, the Coalition believes that means-testing has no place in 
setting military health fees.
    The Coalition is aware of the challenges imposed by Congress' 
mandatory spending rules, and appreciates the subcommittee's efforts to 
include TFL-eligibles in the preventive care pilot programs included in 
the NDAA for Fiscal Year 2009. We believe their inclusion would, in 
fact, save the government money and hope the subcommittee will be able 
to find a more certain way to include them than the current 
discretionary authority, which DOD has declined to implement.
    The Coalition also hopes the subcommittee can find a way to resolve 
the discrepancy between Medicare and TRICARE treatment of medications 
such as the shingles vaccine, which Medicare covers under pharmacy 
benefits and TRICARE covers under doctor visits. This mismatch, which 
requires TFL patients to absorb the cost in a TRICARE deductible or 
purchase duplicative Part D coverage, deters beneficiaries from seeking 
this preventive medication.
    Coalition priorities for TFL-eligibles include:
         Securing a permanent fix to the flawed formula for 
        setting Medicare/TRICARE payments to providers;
         Resisting any effort to establish an enrollment fee 
        for TFL, given that many beneficiaries already experience 
        difficulties finding providers who will accept Medicare 
        patients; and