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Reasons for the Increase in the Number of Senior Field Grade Officers

• The increase in mid-grade officers with more than 30 years of service was driven by an increase in officers with prior enlisted service.
• The increase in officers with prior enlisted service may be due to an increased requirement for longer careers among those with specialized skills and knowledge; officers with enlisted experience are often a key source of technical expertise.
• The increase could also be a residual effect of commissioning enlisted personnel to meet prior officer shortfalls. These officers stayed in service, so their total years exceeded 30 although years of commissioned service were less than 30.

The Effects of Capping Retired Pay

• Experts felt that capping retired pay along the lines suggested by the Senate Armed Services Committee would hurt officer retention and morale and, possibly, the accession of officers who come up from the enlisted ranks.
• Simulations using RAND's Dynamic Retention Model support this view: Capping retired pay would result in fewer officers with prior enlisted service staying, especially beyond 30 years of total service.

Use of Special and Incentive Pays

• Simulations using RAND's Dynamic Retention Model indicate that using special and incentive (S&I) pays to restore overall retention would result in a net cost increase.
• Experts said that, even with the addition of S&I pay, a retired pay cap could be viewed by members as a compensation cut and, because S&I pay is subject to uncertainty, it could be considered less valuable than retired pay.