Pentagon Backs Severance Pay for Enlisted Personnel
The Pentagon, facing the prospect of laying off enlisted personnel, endorsed the idea today of severance pay for soldiers thrown out of work as the U.S. military shrinks in the 1990s.
Four senior enlisted men told a Senate Armed Services personnel subcommittee that some sort of payment is the top priority for members of the Army, Navy, Air Force and Marines who may lose their jobs.
There are more than 2 million men and women in U.S. uniforms, and Defense Secretary Dick Cheney has estimated that 2% annual cuts in spending over the next five years would cut the force by 425,000.
Currently, “separation pay” is given to officers ordered out before reaching the 20-year point when they become eligible to retire and draw retirement pay. The program allows a payment of 10% of basic pay, multiplied by years of service, up to a maximum of $30,000.
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