In addition to the 3.5 percent raise in basic pay, both committees also approved raising BAH (Basic Allowance for Housing) to the point where it will pay 100 percent of the average housing costs. This concludes DOD's five-year plan to completely eliminate out-of-pocket housing expenses by FY 2005 (average out-of-pocket housing expenses in FY 2004 is 3.5 percent).

This is the first time in five years that Congress did not "target" the pay raise by giving some ranks a higher raise percentage than other ranks. In FY 2004, the average pay raise was 4.1 percent, but some members received as little as 3.7 percent, while others received as much as 6.25 percent. In 2005, all members will receive a base pay raise of 3.5 percent.

Active duty military members are paid twice per month, on the 1st and the 15th of each month. If "payday" falls on a weekend or holiday, they are paid on the duty day preceeding the weekend or holiday. For example, if the 15th of the month falls on Sunday, the member would be paid on Friday. Because the below chart shows MONTHLY pay, the member would receive 1/2 of this on each payday.

FY 2005 Military base pay is based upon grade (rank) and years of service:

In addition to the 3.5 percent raise in basic pay, both committees also approved raising BAH (Basic Allowance for Housing) to the point where it will pay 100 percent of the average housing costs. This concludes DOD's five-year plan to completely eliminate out-of-pocket housing expenses by FY 2005 (average out-of-pocket housing expenses in FY 2004 is 3.5 percent).

This is the first time in five years that Congress did not "target" the pay raise by giving some ranks a higher raise percentage than other ranks. In FY 2004, the average pay raise was 4.1 percent, but some members received as little as 3.7 percent, while others received as much as 6.25 percent. In 2005, all members will receive a base pay raise of 3.5 percent.

Active duty military members are paid twice per month, on the 1st and the 15th of each month. If "payday" falls on a weekend or holiday, they are paid on the duty day preceeding the weekend or holiday. For example, if the 15th of the month falls on Sunday, the member would be paid on Friday. Because the below chart shows MONTHLY pay, the member would receive 1/2 of this on each payday.

FY 2005 Military base pay is based upon grade (rank) and years of service:

In addition to the 3.5 percent raise in basic pay, both committees also approved raising BAH (Basic Allowance for Housing) to the point where it will pay 100 percent of the average housing costs. This concludes DOD's five-year plan to completely eliminate out-of-pocket housing expenses by FY 2005 (average out-of-pocket housing expenses in FY 2004 is 3.5 percent).

This is the first time in five years that Congress did not "target" the pay raise by giving some ranks a higher raise percentage than other ranks. In FY 2004, the average pay raise was 4.1 percent, but some members received as little as 3.7 percent, while others received as much as 6.25 percent. In 2005, all members will receive a base pay raise of 3.5 percent.

Active duty military members are paid twice per month, on the 1st and the 15th of each month. If "payday" falls on a weekend or holiday, they are paid on the duty day preceeding the weekend or holiday. For example, if the 15th of the month falls on Sunday, the member would be paid on Friday. Because the below chart shows MONTHLY pay, the member would receive 1/2 of this on each payday.

FY 2005 Military base pay is based upon grade (rank) and years of service:

Commissioned officers with more than four years of active duty service as an enlisted member or a warrant officer are paid at a special rate, up until they reach the grade of O-3. The below chart shows the base pay for commissioned officers who have more than four years of active duty service as an enlisted member or a warrant officer:

Eliminating the Reduction in Survivor Benefit Plan (SBP) Annuities. The committee is dedicated to protecting the financial security of the survivors of military retirees. To achieve this goal, the committee recommends eliminating the social security offset under the SBP by increasing the annuities paid to survivors of military retirees who are 62 or older from 35 percent of retired pay to the percentages indicated below.

(1) For months after September 2005 and before April 2006: 40 percent

(2) For months after March 2006 and before April 2007: 45 percent

(3) For months after March 2007 and before April 2008: 50 percent

(4) For months after March 2008: 55 percent

Military Housing Privatization. The military housing privatization initiative is a program that allows the Department of Defense to leverage private sector investments and business interests to build and revitalize family housing at domestic military bases. Since the inception of the housing privatization program, the military services have used the privatization authority to improve or replace nearly 90,000 family housing units. Despite the success of the program, a statutory ceiling on government obligations to housing privatization projects will force a halt to the housing privatization program in fiscal year 2005, jeopardizing privatization of approximately 50,000 units over the next two years, as well as efforts to eliminate inadequate family housing units by 2007. In support of continued military family housing privatization and the real improvements to quality of life for U.S. military personnel that result from the program, the committee recommends elimination of the statutory ceiling on the program as of October 1, 2005.

Basic Military Pay. The committee remains dedicated to increasing income levels for military personnel and recommends a 3.5 percent across-the-board pay raise for our men and women in uniform. The raise would continue Congress' commitment to enhanced pay for the armed forces and would reduce the gap between average military and private sector pay from 5.5 to 5.1 percent. This is the sixth consecutive year the committee has recommended a pay raise larger than the level of private sector pay raises.

Active Duty and Reserve Component Special Pay and Bonuses. The committee recommends extending several special pays and bonuses through December 31, 2005, including:

· reenlistment bonus for active and reserve members;

· enlistment bonus for active and reserve members;

· nurse officer candidate accession program;

· aviation officer retention bonus;

· accession bonus for registered nurses;

· incentive special pay for nurse anesthetists;

· accession bonus for dental officers;

· accession bonus for pharmacy officers;

· special pay for nuclear-qualified officers extending their period of service;

· nuclear career accession bonus;

· nuclear career annual incentive bonus;

· retention bonus for members with critical skills or other criteria; and

· accession or affiliation bonus for new officers in critical skills.

Hardship Duty Pay. To ensure that service members receive appropriate compensation regardless of where they are required to serve during the global war on terrorism, the committee recommends increasing the maximum amount of hardship duty pay from $300 to $750 per month.

Permanent Increases to Imminent Danger Pay and Family Separation Allowance. The committee continues to recognize the many sacrifices of our service members and their families. Accordingly, it recommends making permanent the increased rates for imminent danger pay, from $150 to $225 per month, and family separation allowance, from $100 to $250 per month.

Eliminating Out-of-Pocket Housing Expenses. Honoring its commitment to eliminate out-of-pocket housing expenses for services members, the committee recommends $367 million. This marks the final year of a five-year initiative to completely eliminate out-of-pocket expenses.

Housing Allowances. The committee recommends granting basic housing allowance to service members who elect to leave their families at their previous duty stations while they attend professional military education or training lasting 12 months or less.

Transportation of Family Members to Travel to Visit Seriously Injured Service Members. The committee believes that, especially during times of war, families should be able to visit seriously injured service personnel. Building on last year's improvements to travel provisions, the committee recommends expanding the number and categories of family members and other people that would be entitled to transportation at government expense to visit seriously ill or injured service members.

Repeal of the Requirement to Pay Subsistence Charges While Hospitalized. Last year, Congress took action to exempt service members injured on the battlefield from paying for their meals while they recuperate in military hospitals. Building on this enhancement, the committee recommends extending this exemption to all hospitalized military personnel, not just those present in connection with combat.

Combat-Related Special Compensation. The newly-expanded Combat-Related Special Compensation program has generated thousands of additional applicants, increasing demands on processing systems. The committee encourages the Secretary of Defense to examine the processing systems and consider methods, including creating a more efficient central processing organization with increased personnel and funds, for expediting the time required to review applications.

Donation of Air Travel. To help reunite deployed military members and their families in times of need, the committee recommends giving the Secretary of Defense the authority and flexibility to accept the donation of frequent flyer miles, credits and tickets to be used to facilitate travel for service members.

Providing Civilian Clothing to Service Members. There have been situations where seriously wounded and ill OIF and OEF military personnel have been medically evacuated from the battlefield without civilian clothes. This posed a dilemma when the soldiers recovered and wanted to leave the hospital in civilian clothes, as military officials lacked the authority to purchase the clothes for them. Last year, Congress acted to remedy this situation by temporarily authorizing the purchase of civilian clothing, at a cost not to exceed $250. The committee recommends making this authority permanent.

Accounting and Management of Reservists and National Guard Members on Active Duty. The committee recommends changing the accounting standard used to track and manage reservists on active duty in support of operational missions. Specifically, the committee proposes eliminating the current 180-day end strength accounting standard that requires all reservists on active duty beyond that limit to count against active component end strengths. In its place, the committee recommends permitting up to 37,000 reservists to serve voluntarily on active duty for up to three years, or a cumulative three years over a four-year period, before counting against active end strengths. The committee believes that the flexibility in this new authority will reduce the need for some involuntary mobilizations by permitting volunteers to support normal peacetime operations, as well as during times of national emergency.