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CBO: Pentagon Could Save Billions Through Military Compensation Reform

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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