Costs of compensating military reservists climb
Watchdog agency analyzes trends in spending on reservist pay and benefits.
Overall compensation for military reservists has increased by more than 25 percent since 2001, according to a new report from the Government Accountability Office.
Spending on reservist pay, benefits and deferred compensation such as retiree health care and pension plans, ballooned from $18.5 billion in fiscal 2001 to $23.1 billion in fiscal 2007, GAO found. And compensation costs will continue to rise as reservists claim benefits from the Post 9-11 Veterans Educational Assistance Act, which takes effect on Aug. 1, the report noted.
The study comes in the wake of 2005 and 2007 reviews, in which GAO chided the military for not tracking the growing budget for military reserves to make sure funds were being spent efficiently. The 2007 study suggested the Pentagon take a more transparent approach to reserve compensation.
The latest report -- sent to several congressional committees that deal with military and veterans issues -- does not include policy recommendations. Instead, it provides a detailed assessment of the continued growth in reservist compensation.
Spending on deferred benefits grew the most of the three types of compensation analyzed, increasing 28 percent from fiscal 2001 to 2007. Cash payments such as salary and bonuses rose 24 percent during that period, and the cost of noncash benefits such as education and health care increased 21 percent.
The overall price tag will continue to grow, GAO concluded.
The Veterans Affairs Department estimated that the net cost of the educational assistance act will be $78.1 billion from fiscal 2009-2018, of which $12.3 billion will be used for benefits for reservists and their families, according to GAO.
The report also noted that spending on part-time reservists, who make up 91 percent of the reserve force, is growing faster than that for full-time reservists. The average annual compensation of a part-time reservist increased 52 percent, from $14,400 in fiscal 2001 to $22,000 in fiscal 2007, while the average compensation for a full-time reservist increased 13 percent during the same period, from $107,000 to $121,000.