Sec. 661. STUDY ON BASIC PAY

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## SEC. 661 STUDY ON BASIC PAY ###

(a)In General The Secretary of Defense shall seek to enter into an agreement with a nonprofit entity or a federally funded research and development center to conduct research and analysis on the value of basic pay for members of the Armed Forces. The Secretary may include such research and analysis in the next quadrennial review of military compensation. ###

(b)Elements The research and analysis conducted under subsection

(a)shall include the following: ####

(1)An assessment of the model used to determine the basic pay in the current basic pay tables, including— #####

(A)an analysis of whether to update the current model to meet the needs of the 2023 employment market; #####

(B)a historical understanding of when the current model was established and how frequently it has been during the last 10 years; #####

(C)an understanding of the assumptions on which the model is based and how such assumptions are validated; #####

(D)an analysis of time-in-grade requirements and how they may affect retention and promotion; and #####

(E)an assessment of how recruiting and retention information is used to adjust the model. ####

(2)An assessment of whether to modify current basic pay tables to consider higher rates of pay for specialties the Secretary determines are in critical need of personnel. ####

(3)An analysis of— #####

(A)how basic pay has compared with civilian pay since the 70th percentile benchmark for basic pay was established; and #####

(B)whether to change the 70th percentile benchmark. ####

(4)An assessment of whether— #####

(A)to adjust the annual increase in basic pay, currently guided by changes in the Employment Cost Index as a measure of the growth in private-sector employment costs; or #####

(B)to use a different index, such as the Defense Employment Cost Index. ####

(5)Legislative and policy recommendations regarding basic pay table based on analyses and assessments under paragraphs

(1)through (4). ###

(c)Briefings and Progress Report ####

(1)Interim briefing Not later than April 1, 2023, the Secretary shall provide to the appropriate congressional committees an interim briefing on the elements described in subsection (b). ####

(2)Progress report Not later than one year after the date of the enactment of this Act, the Secretary shall submit to the appropriate congressional committees a progress report on the study under this section. ####

(3)Final briefing Not later than two years after the date of the enactment of this Act, the Secretary shall submit to the appropriate congressional committees a final briefing on the study under this section. ###

(d)Appropriate Congressional Committees Defined In this section, the term “appropriate congressional committees” means the following: ####

(1)The Committee on Armed Services of the House of Representatives. ####

(2)The Committee on Armed Services of the Senate.