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department of defense authorization for appropriations for fiscal year PDF

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HRG. 112–80, PT. 6 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2012 AND THE FUTURE YEARS DEFENSE PROGRAM HEARINGS BEFORETHE COMMITTEE ON ARMED SERVICES UNITED STATES SENATE ONE HUNDRED TWELFTH CONGRESS FIRST SESSION ON S. 1253 TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2012 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE AND FOR MILITARY CONSTRUCTION, TO PRESCRIBE MILITARY PERSONNEL STRENGTHS FOR FISCAL YEAR 2012, AND FOR OTHER PURPOSES PART 6 PERSONNEL APRIL 13; MAY 4, 11, 2011 ( Printed for the use of the Committee on Armed Services VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00001 Fmt 6011 Sfmt 6011 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB D E P A R T M E N T O F D E F E N S E A U T H O R I Z DA ET FIO E NN SE FO PR R OA GP P RR AO M P —R PIA art TIO 6N S P F EO R R S O F NI S NC EA L L Y E A R 2 0 1 2 A N D T H E F U T U R E Y E A R S VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB S. HRG. 112–80 PT. 6 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2012 AND THE FUTURE YEARS DEFENSE PROGRAM HEARINGS BEFORETHE COMMITTEE ON ARMED SERVICES UNITED STATES SENATE ONE HUNDRED TWELFTH CONGRESS FIRST SESSION ON S. 1253 TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2012 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE AND FOR MILITARY CONSTRUCTION, TO PRESCRIBE MILITARY PERSONNEL STRENGTHS FOR FISCAL YEAR 2012, AND FOR OTHER PURPOSES PART 6 PERSONNEL APRIL 13; MAY 4, 11, 2011 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 68–089 PDF WASHINGTON : 2012 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00003 Fmt 5011 Sfmt 5011 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB COMMITTEE ON ARMED SERVICES CARL LEVIN, Michigan, Chairman JOSEPH I. LIEBERMAN, Connecticut JOHN MCCAIN, Arizona JACK REED, Rhode Island JAMES M. INHOFE, Oklahoma DANIEL K. AKAKA, Hawaii JEFF SESSIONS, Alabama E. BENJAMIN NELSON, Nebraska SAXBY CHAMBLISS, Georgia JIM WEBB, Virginia ROGER F. WICKER, Mississippi CLAIRE MCCASKILL, Missouri SCOTT P. BROWN, Massachusetts MARK UDALL, Colorado ROB PORTMAN, Ohio KAY R. HAGAN, North Carolina KELLY AYOTTE, New Hampshire MARK BEGICH, Alaska SUSAN M. COLLINS, Maine JOE MANCHIN III, West Virginia LINDSEY GRAHAM, South Carolina JEANNE SHAHEEN, New Hampshire JOHN CORNYN, Texas KIRSTEN E. GILLIBRAND, New York DAVID VITTER, Louisiana RICHARD BLUMENTHAL, Connecticut RICHARD D. DEBOBES, Staff Director DAVID M. MORRISS, Minority Staff Director SUBCOMMITTEE ON PERSONNEL JIM WEBB, Virginia, Chairman JOSEPH I. LIEBERMAN, Connecticut LINDSEY GRAHAM, South Carolina DANIEL K. AKAKA, Hawaii SAXBY CHAMBLISS, Georgia CLAIRE MCCASKILL, Missouri SCOTT P. BROWN, Massachusetts KAY R. HAGAN, North Carolina KELLY AYOTTE, New Hampshire MARK BEGICH, Alaska SUSAN M. COLLINS, Maine RICHARD BLUMENTHAL, Connecticut DAVID VITTER, Louisiana (II) VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB C O N T E N T S CHRONOLOGICAL LIST OF WITNESSES ACTIVE, GUARD, RESERVE, AND CIVILIAN PERSONNEL PROGRAMS APRIL 13, 2011 Page Nelson, Hon. Bill, U.S. Senator from the State of Florida ................................... 3 Chandler, SGM Raymond F., III, Sergeant Major of the Army, USA ................. 6 Kent, Sgt. Maj. Carlton W., Sergeant Major of the Marine Corps, USMC ......... 10 West, MCPON Rick D., Master Chief Petty Officer of the Navy, USN .............. 25 Roy, CMSAF James A., Chief Master Sergeant of the Air Force, USAF ............ 33 Barnes, Master Chief Joseph L., USN (Ret.) ......................................................... 68 Strobridge, Col. Steven P., USAF (Ret.), Director of Government Relations, Military Officers Association of America ............................................................ 76 Moakler, Kathleen B., Government Relations Director, National Military Family Association ............................................................................................... 106 Puzon, CAPT Ike, USN (Ret.) ................................................................................. 132 Roth-Douquet, Kathy, Chairman, Blue Star Families .......................................... 146 CONTINUATION OF TESTIMONY ON THE ACTIVE, GUARD, RESERVE, AND CIVILIAN PERSONNEL PROGRAMS MAY 4, 2011 Stanley, Hon. Clifford L. Under Secretary of Defense for Personnel and Readi- ness ........................................................................................................................ 189 Hale, Hon. Robert F., Under Secretary of Defense, Comptroller, and Chief Financial Officer ................................................................................................... 225 McCarthy, Hon. Dennis M., Assistant Secretary of Defense for Reserve Af- fairs ....................................................................................................................... 232 Woodson, Hon. Jonathan, M.D., Assistant Secretary of Defense for Health Affairs, Director of TRICARE Management Activity ........................................ 248 CONTINUATION OF TESTIMONY ON THE ACTIVE, GUARD, RESERVE, AND CIVILIAN PERSONNEL PROGRAMS MAY 11, 2011 Lamont, Hon. Thomas R., Assistant Secretary of the Army for Manpower and Reserve Affairs .............................................................................................. 308 Bostick, LTG Thomas P., USA, Deputy Chief of Staff G–1, U.S. Army .............. 320 Garcia, Hon. Juan M., III, Assistant Secretary of the Navy for Manpower and Reserve Affairs .............................................................................................. 321 Ferguson, VADM Mark E., III, USN, Chief of Naval Personnel, U.S. Navy ...... 345 Milstead, Lt. Gen. Robert E., Jr., USMC, Deputy Commandant for Manpower and Reserve Affairs, U.S. Marine Corps ............................................................ 346 (III) VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB IV Page Ginsberg, Hon. Daniel B., Assistant Secretary of the Air Force for Manpower and Reserve Affairs .............................................................................................. 347 Jones, Lt. Gen. Darrell D., USAF, Deputy Chief of Staff for Manpower, Personnel, and Services, U.S. Air Force ............................................................. 355 VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2012 AND THE FUTURE YEARS DEFENSE PROGRAM WEDNESDAY, APRIL 13, 2011 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 1:34 p.m. in room SR–222, Russell Senate Office Building, Senator Jim Webb (chair- man of the subcommittee) presiding. Committee members present: Senators Webb, Blumenthal, and Ayotte. Majority staff members present: Jonathan D. Clark, counsel; Gabriella E. Fahrer, 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 Christine G. Lang. Committee members’ assistants present: Juliet Beyler and Gor- don Peterson, assistants to Senator Webb; Lindsay Kavanaugh, as- sistant to Senator Begich; Jeremy Bratt, assistant to Senator Blumenthal; Charles Prosch, assistant to Senator Brown; and Brad Bowman, assistant to Senator Ayotte. OPENING STATEMENT OF SENATOR JIM WEBB, CHAIRMAN Senator WEBB. The subcommittee will come to order. I would like to begin by saying we are awaiting the arrival of Senator Nelson, who is scheduled to be the first witness, but we’re going to go ahead and proceed. If he has not arrived by the time I finish with my opening statement, if he arrives while you’re testi- fying, then we will interrupt the testimony and take his statement. The subcommittee meets today to receive testimony on the Ac- tive, Guard, Reserve, and civilian personnel programs in review of the National Defense Authorization Request for Fiscal Year 2012 and the Future Years Defense Program. Today, we hear from the senior enlisted advisor of each military Service, as well as representatives from servicemember-oriented beneficiary groups. (1) VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB 2 The Committee on Armed Services is an authorizing committee with the responsibility to examine and oversee all Department of Defense (DOD) programs and budgets. The Subcommittee on Per- sonnel is responsible for oversight of all personnel programs, to in- clude military personnel policy, pay, and benefits for Active Duty, Reserve, and retired military personnel and their families, military healthcare, and civilian personnel policy for DOD civilian employ- ees. I am delighted to be serving with Senator Graham, as the rank- ing member, of this subcommittee. I don’t believe he’s going to be able to make the hearing today. But, for the record, and again, I’d point out that his experiences as a member of this subcommittee and as an Air Force Reserve officer adds a valuable perspective to our considerations. I’ve really enjoyed working with Senator Graham during my first year as chair of this subcommittee, and I know we’re going to have that same cooperation again. I’d like to also welcome Senators Blumenthal and Ayotte to the subcommittee. I think it’s the first time we’ve met this year. We have a really great group of people here on these issues. I think we’re very bipartisan in looking to the well-being of our men and women in uniform. In the event that the past few weeks and months have not made it obvious, Congress is taking a very careful look at budgets and spending levels; and DOD is not immune. Secretary Gates has em- barked on an ambitious effort to realize efficiencies and save tax- payer dollars within the Department. As Joint Chiefs Chairman Admiral Mullen has said, the national debt may be our biggest na- tional security threat as we move forward. In this spirit during our hearings this year on this subcommittee, I intend to take a closer look at department programs, the justifica- tions, what they cost, and whether they are achieving their stated goals. To ensure that DOD obtains the greatest return on invest- ment for every dollar it spends, Congress must do its part to make sure that funded programs are effective and efficient. Those that are not should be eliminated, and those that are should be sus- tained properly or perhaps even expanded, if necessary. This ap- proach is fully in keeping with our roles as stewards of the public trust and taxpayer dollars. It’s also a practice that was in place in the 1980s, when I was Assistant Secretary of Defense and Sec- retary of the Navy. Our witnesses today do not have responsibility for developing the Department’s budget. What they do have, collectively, is more than 120 years of military service among them, an acute sense of the challenges that our soldiers, sailors, airmen, marines, and their families face as we enter, now, the 10th year of sustained combat operations. I will look to each of our witnesses today, as the senior enlisted advisors of their Services, to give their frank advice re- garding the health of the enlisted force, what programs and activi- ties work, and which of them might need to be eliminated, ex- panded, or changed to ensure that we are properly attending to the well-being of our enlisted servicemembers and their families. In reading past testimony, it’s clear that all of these senior advi- sors rightly focus on quality of life in military families. Our mili- VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB 3 tary families, while by and large handling the stress of frequent and lengthy deployments, continue to face serious challenges. Having served in combat as a marine in Vietnam, I know what it’s like to be deployed. Having grown up in a military family, I know what it’s like to have a parent deployed. As a father and fa- ther-in-law of enlisted infantry marines, I also know what it’s like to have a child deployed, although I don’t think either of those ma- rines would appreciate the fact that I just called them a ‘‘child.’’ [Laughter.] Senator WEBB. I am acutely mindful of our special obligation to see to the needs of servicemembers and their families and I take that responsibility very seriously. In this regard, I have, in the past, declined to support the admin- istration’s proposed fee increase for military healthcare for certain military retirees. I think most of you know that. I start from the presumption that lifetime healthcare for career military personnel is part of a moral contract between our government and those who step forward to serve. In my view, they have earned this benefit through their years of service, and it would be wrong to change that benefit after they’ve held up their end of a moral contract. I’ll keep an open mind about discussion on this and other initiatives to improve the efficiency and effectiveness of our military healthcare benefits. I’m interested in what our witnesses today might have to say about these and other proposals. Finally, I’d like to acknowledge the work done by the First Lady, Michele Obama, and Dr. Jill Biden in support of military families. Yesterday, they launched Joining Forces, a program that seeks to bring together the private and public sectors to ensure that mili- tary families have the support they need. I know that Blue Star Families and the National Military Family Association (NMFA), represented on the second panel, have worked with the White House on this promising effort, and I look forward to hearing more about it. Before introducing our witnesses, I would like to welcome Sen- ator Bill Nelson to the hearing and back to the Armed Services Committee, on which he spent many years. He has asked to appear before us to deliver a statement, relative to a piece of legislation that he has introduced—I believe he has introduced it every year over the past decade—to repeal the offset of the Survivor Benefit Plan (SBP) Annuity by Dependency and Indemnity Compensation (DIC). Senator Nelson, welcome. We appreciate your presence today. STATEMENT OF HON. BILL NELSON, U.S. SENATOR FROM THE STATE OF FLORIDA Senator NELSON. Mr. Chairman, thank you for your long service to the country and for your continued service. Even though you’ve announced your retirement from the Senate, that service that has been, as we say in the south, ‘‘in your bones,’’ will continue, and we appreciate it very much. I want to come and speak about this legislation, that you accu- rately noted that we have filed every year, about the inequity in the treatment of military survivors. VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB 4 There’s a longstanding problem in our military survivor benefit system. The requirement for a dollar-for-dollar reduction in the SBP annuity by the amount—and offset by the amount of the De- pendency and Indemnity Compensation received by the Depart- ment of Veterans Affairs—it’s that inequity that I want to address and that I have addressed each year that I have been here. Over the years, we have chipped away at it, but the basic inequity is still there. Obviously, we are in a tough fiscal environment, and obviously, there are many worthy pieces of legislation to be funded. I realize that, in this environment, we are going to have to find an offset. What has typically happened, we always pass this in the Senate and it goes to the conference. Because of the cost of this legislation, it’s dropped in the conference or it is whittled away at in a minor way. Interestingly, the cost is dropping. As the survivors increasingly diminish in number, the cost of this, actuarially projected, is drop- ping. But, nevertheless, I am here to say to your subcommittee, Mr. Chairman, that I am committed to finding an offset. I don’t want to tell you what the offset ought to be, because what I learned from last week’s experience is that you can be very cre- ative in finding offsets and new sources of revenue, as we found in the negotiations that went on between the President and the Ma- jority Leader and the Speaker of the House last week. This benefit plan is an optional program for military retirees, of- fered by DOD. The military retirees pay a premium out of their re- tirement pay to ensure that their survivors will have income, upon their death. It’s reasonably priced insurance. But, from the public marketplace, that’s not necessarily available, reasonably priced, usually because there are service-connected disabilities and health issues. So, SBP is a way for retirees to provide income insurance for their survivors, their family, and it pays them 55 percent of their retired pay. SBP is also paid to survivors when a servicemember dies on Active Duty. So, it’s an insurance program. On the flipside, DIC is a survivor benefit administered by the Department of Veterans Affairs (VA). When military service caused the servicemember’s death, either due to service-connected dis- ability or illness or Active-Duty death, survivors are entitled to monthly compensation of just over $1,100 a month from the VA. Of the 270,000 survivors receiving SBP, about 54,000 of them are subject to the offset. According to the Defense actuary, for 31,000 survivors, SBP is completely offset by DIC; meaning that the sur- vivor receives no SBP and must live on that $1,100, alone. Retirees bought into the Survivors Benefit Plan in good faith, they paid good money. These military families planned for the future, and the government offsets it. There are other complications to the existing offset, including a court decision, in 2009. It requires surviving widows to remarry after age 57 in order to eliminate the offset. I can’t figure that one out, and obviously, this shouldn’t be tolerated. Mr. Chairman, I had a little bit of experience in insurance, be- fore I came to the Senate, as the elected insurance commissioner of Florida. This offset is troubling when somebody buys an insur- VerDate Aug 31 2005 09:55 Jan 25, 2012 Jkt 000000 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 Y:\BORAWSKI\DOCS\68089.TXT JUNE PsN: JUNEB

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May 4, 2013 healthcare, and civilian personnel policy for DOD civilian employ- ees. I am delighted to . the negotiations that went on between the President and the Ma- . in the areas of behavioral health, wounded warrior care, and . USAR, retirees, family members, survivors, and certain former s
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