Military Compensation Background Papers

The Under Secretary of Defense for Personnel and Readiness is responsible for military compensation policy and has just released the eighth edition of the Military Compensation Background Papers. This 984 page document produced in conjunction with the Library of Congress details the “various compensation elements and manpower cost items that make up the military compensation system.” The first chapter describes the theory, concepts, and principles of military compensation. Chapter II details compensation for those on Active and Inactive Duty. The third chapter explains post-service compensation including retirement and separation pays. Chapters IV and V cover supporting benefits and other manpower-related cost items.

This is a tremendous resource available to those who wish to know more about the current military compensation system and how it has evolved over time.

PDF link.

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Developing Cyber Deterrence

The premise of nuclear deterrence is based on Mutually Assured Destruction (MAD). In hindsight, this success of this framework seems apparent and is widely taken for granted. But, at the time of its creation, a great deal of effort went into its formulation, and many debated its effectiveness.

With the advent of new destructive capabilities comes the need for additional means of deterrence. And, as the world economy has come to depend on cyberspace, the need to deter nefarious actors from attacking in cyberspace is paramount. Furthermore, much (if not most) of the other forms of deterrence is reliant on cyberspace operations.

Game theoretic principles form the basis of MAD. But, many of these principles do not hold in cyber deterrence. In the spirit of game theory, let’s examine MAD using backward induction.

  1. Destruction: To deter, each player needs a strategy that includes the capability to Destroy the other. While it is clear that cyber attacks can be quite destructive, the extent to which these attacks harm others varies. Additionally, cyber attacks need not be indiscriminate.
  2. Assured: For the optimal strategy to be Not Destroy, it is necessary for each actor to:
    a) know that it has the ability to Destroy, and
    b) know that the other player has the ability to Destroy
    For this reason, much of the nuclear testing which led up to the MAD strategy was conducted openly so that each knew the other’s capability to Destroy. This alone is not sufficient. For sufficiency, each player must also be willing to Destroy. Willingness makes the strategy of Destroy credible. Both the necessary and sufficient conditions are difficult to meet in regards to cyber. Revealing cyber capability renders that capability moot in most circumstances. Once an exploit is known, the other player will update their systems to preclude its use. Hence, players’ strategies to date have been to signal capability without specificity. More concerning is the inability to meet the sufficiency condition. The key concern is attribution. In nuclear deterrence, the players are known and monitoring is in place to detect actions. But, in cyber, attribution is difficult (if not impossible) and not timely. Without attribution, a player under attack may not respond in kind (or in proportion).
  3. Mutual: The failings in this area are a result of the conditions above. Players are both known and unknown; willingness and ability are unclear; and destructive outcomes are not guaranteed. This makes it difficult to reach an equilibrium where no player is willing to employ the Destroy strategy.

Just as the rise of nuclear capability led to advancements in game theoretic thinking underpinning the MAD strategy, growing cyber threats will drive strategic thinkers to develop new frameworks for deterrence under these new dynamics.

Fewer Americans Affiliated with the Military

Memorial Day is a time for remembrance and thankfulness for those who have died to establish and preserve our freedoms. It also elicits concern about the dwindling number of American citizens who have affiliation with military service.

It is widely known that fewer than 1 percent of Americans serve on Active Duty. You can see in the charts below (1973–2016), that this is driven by the reduction over time in military end strength. This results in less opportunity for citizens to serve in the military.

Furthermore, the military is comprised of members from a smaller number of states and contains a disproportionate number of members who come from military families. Those concerned posit that an increasingly insular military may lose broader national support.

Options to increase affiliation include raising end strength (in either Active or Reserve Components) and preferring term enlistments over career to create more turnover. Also, if isolation is also a problem, the available positions should go to a more diverse cross-section of the population. This will require the services to spend time and resources recruiting those who have less propensity to serve.

Before making these investments, the Defense Department needs to invest in understanding whether the concern over insularity is valid and then determine the most cost effective way to address this concern.

Sources: Defense Manpower Data Center and U.S. Census

Sources: Defense Manpower Data Center and U.S. Census

Congressional Research Service Report on Additional Troops for Afghanistan

The website EveryCRSReport.com publishes Congressional Research Service reports which Congress does not make available to the public. These reports contain succinct analysis to inform Congress on policy issues.

Recently, a report examined the issue of placing additional military forces in Afghanistan. The bottom line:

Given the complexity of the campaign, along with the imprecise nature of U.S. goals for the region and absent a definitive statement from the Trump Administration regarding its priorities, it is currently difficult to evaluate the likely impact that additional forces may have.

The image below shows an Airman assigned to watch over Afghan workers employed at Kandahar Air Field. It is important to consider the opportunity cost of using highly skilled military forces in this role. Many foreign governments require the U.S. to employ local workers as a condition for hosting military bases. Low productivity and the need for constant monitoring drain resources.

Before assigning additional troops to Afghanistan, the U.S. should ensure that military personnel in theater today are effectively utilized.

U.S. Air Force photo by Senior Airman Corey Hook (https://flic.kr/p/aaiZTY)

U.S. Air Force photo by Senior Airman Corey Hook (https://flic.kr/p/aaiZTY)

Official Blended Retirement System Calculator

The official DoD Blended Retirement System (BRS) calculator is now available.

The calculator uses service dates, expected retirement date, career progression, life expectancy, TSP contribution rate and expected return, and continuation pay bonus information to create a comparison between the "High-3" legacy retirement benefit and the BRS retirement system.

Here are some screenshots of the calculator:

I haven't had a chance to review the calculations themselves, but I'm impressed with the inputs incorporated into this beta version.

I'd like to see some way to perform sensitivity and break-point analyses. Also, the calculator could also incorporate an individual's personal discount rate to make this decision tool more robust.