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CBO: Pentagon Could Save Billions Through Military Compensation Reform

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budget analysis reviewThe Congressional Budget Office has identified four strategies for the Defense Department to reform the military compensation structure in order to manage the department’s sequestration-level funds.

DoD could save at least $172 billion over 10 years if the agency implements a cap on service members’ salaries, replace some military personnel with civilian staff, increase cost-sharing for Tricare retirees and remove concurrent receipt for disabled veterans, CBO said Thursday.

President Barack Obama’s proposed fiscal 2016 budget includes about $157 billion for military pay and benefits, according to CBO.

The agency also estimates that a military retirement provision in the Senate’s National Defense Authorization Act would reduce defense spending and increase the federal budget deficit from FY 2016 to FY 2025.

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