in military pay was authorized by Executive Order 11525 (April 15, 1970) issued pursuant to Public Law 90-207 (December 16, 1967) and became effective January 1, 1970. A 7.9 percent increase in military pay was authorized by Executive Order 11577 (January 8, 1971) issued pursuant to Public Law 90-207 (December 16, 1967) and became effective January 1, 1971.

Chairman ELLENDER. Is that an across-the-board increase, through all ranks?

Mr. SPENCE. The 8.1 and the 7.9 were across-the-board increases for all categories of military personnel.

NONDISABILITY AND DISABILITY CATEGORIES

Chairman ELLENDER. Page 7 of the justifications lists the nondisability retirements for fiscal years 1970, 1971, and 1972. It will be included in the record at this point.

Mr. SPENCE, One category is nondisability. This category includes personnel who were retired for age or length of service.

It is estimated that $2,763.1 million or 73.2 percent of the total appropriation request will be required to provide for an average of 592,703 annuitants in the nondisability category in fiscal year 1972. This compares with an average of 540,612 annuitants now estimated for fiscal year 1971.

Chairman ELLENDER. Is that increase normal?

Mr. SPENCE. Yes, based on the size of the forces that we have at the present time, that is.

Chairman ELLENDER. It is close to 10 percent.

Mr. SPENCE. Yes, approximately 10 percent.

Chairman ELLENDER. And if this war keeps on as it has been going, it will be reflected in such items as this for a long time.

Mr. SPENCE. If we maintain the size of the forces which we have had, Mr. Chairman, whether or not there are actual hostilities, the nondisability category would remain relatively constant. There wouldn't be any sharp increases or decreases in that.

Chairman ELLENDER. I was referring to regular military personnel retirement costs that have grown to be a heavy burden on the taxpayer.

Mr. SPENCE. In order to sustain the forces that we had, this type of retirement experience can be expected in the nondisability categories. Chairman ELLENDER. Are these pay increases included in the regular request for fiscal year 1972?

Mr. SPENCE. Yes, sir; they are.

Senator YOUNG. Are there any more requests anticipated for fiscal year 1971?

Mr. SPENCE. Yes, sir; there is possibly one additional request anticipated for fiscal year 1971. There will be a 4.5 percent cost-of-living increase, due to increases in the Consumer Price Index, which becomes effective June 1, 1971. The additional cost is estimated to be $13 million.

1972 FUNDING REQUIREMENT

Chairman ELLENDER. Is there any requirement for another supplemental request in fiscal year 1972?

Mr. SPENCE. Yes, sir; the one possible additional request anticipated for fiscal year 1971 I just referred to will similarly require an additional amount for fiscal year 1972.

Chairman ELLENDER. Please indicate the anticipated requirement. Mr. SPENCE. The anticipated additional requirement is currently estimated to be $153,700,000 associated with the cost-of-living increase of 4.5 percent, which becomes effective June 1, 1971.

Chairman ELLENDER. Please describe for the record just what personnel are included under nondisability retirement.

Mr. SPENCE. All retirements other than disability retirements are included. Among the types of retirement are mandatory retirement of officers on attaining statutory age, or on completion of the prescribed maximum length of service for their grade; and all voluntary retirements of officers, warrant officers, and enlisted men which are authorized after completion of at least 20 years of service. In this connection, enlisted personnel of the Navy and Marine Corps who complete 20 years of service, rather than being retired, are, if they apply, transferred to the Fleet Reserve. On completion of 30 years' combined active service and time in the Fleet Reserve they are transferred to the retired list. Enlisted men of the Army and Air Force who apply for retirement before completion of 30 years' service, although retired, are placed in the Enlisted Reserve Corps until completion of a total of 30 years' combined active service and service in the Enlisted Reserve. At the 30 years of service point they are then discharged from the Enlisted Reserve Corps, retaining their retired status. The difference between Army and Air Force, and Navy and Marine Corps, in this regard is, in my opinion, a difference in terminology rather than sub

stance.

TEMPORARY DISABILITY RETIREMENT

Chairman ELLENDER. There will be included in the record at this point material from the justifications indicating the average number of officers and enlisted personnel and the cost for temporary disability retirement for fiscal years 1970, 1971, and 1972.

(The information follows:)

Mr. SPENCE. The temporary disability category is an interim classification for disabled personnel where there is some doubt as to the degree or permanence of their disability. Personnel are placed on the temporary disability list for a period of not to exceed 5 years in accordance with chapter 61 of title 10, United States Code. During this 5-year period, physical examinations are required at least once every 18 months to determine whether such individuals (a) have recovered from their disability and can be returned to active duty; (b) should be discharged; or (c) should be transferred to the permanent disability rolls.

It is estimated that $89.3 million or 2.4 percent of the total appropriation request will be required to provide for an average of 26,909 annuitants in fiscal year 1972, as compared with 24,644 now estimated for fiscal year 1971.

DURATION OF TEMPORARY DISABILITY RETIREMENT

Chairman ELLENDER. As I recall, last year you testified that a person may remain on the temporary disability rolls for a maximum of 5 years, subject to periodic physical examinations. Could you outline to the committee the general history of such disability? I have in mind, for example, the number of personnel who return to active duty and the average amount of time one might expect them to remain on the temporary disability rolls.

Mr. SPENCE. Members who are placed on the temporary disability retired list cannot remain on that list for more than years. They are reexamined as indicated at least once every 18 months and final determinations are made as early as possible. Available data indicates that the average length of time a member remains on the list is from 2 to 3 years.

A member may be dropped from the TDRL for any one of several reasons. Some die while they are carried on the TDRL. While we do not have immediately available cumulative statistics on other dispositions, an example of experience during a specific period will give an indication of the types of dispositions. During the period July 1, 1970, to December 30, 1970, the Army Physical Review Council report that they processed 1,306 cases of members on the TDRL. The disposition of these cases was as follows:

When a member on the TDRL is found fit for duty he may, with his consent, be returned to active duty. The number of individuals who desire to return to active duty is, however, negligible. The vast majority accept separation.

PERMANENT DISABILITY

Chairman ELLENDER. At this point in the record there will appear information from the justifications indicating the average number of officers and enlisted personnel on the permanent disability rolls for fiscal years 1970, 1971, and 1972.

(The information follows:)

Mr. SPENCE. The permanent disability category is composed of personnel whose disability has been definitely established as "permanent". Persons may be placed on the permanent disability rolls immediately following the termination of their active duty or by transfer from the temporary disability rolls. It is estimated that $548.6 million or 14.5 percent of the total appropriation request will be required in fiscal year 1972 for an average of 133,688 permanently disabled retired military personnel. This compared with an average of 125,944 now estimated for fiscal year 1971.

CAUSES OF PERMANENT DISABILITY

Senator ELLENDER. Do you have any figures reflecting the causes of permanent disability retirement? For example, generally speaking, can you tell the committee how many on the permanent disability rolls have combat-connected disability? And if you can, indicate what other categories of permanent disability there are and what percentage of personnel fall into each.

Mr. SPENCE. The Department of Defense compiles a semiannual report of the causes of all physical disability retirements and separations. However, this report does not show which causes are combat-related. Some of our data systems contain information of this type but the data

are not readily available. I do have a table which I will submit for the record which shows the causes of physical disability retirements and separation for all of the Armed Forces for the period January 1, 1970 through June 30, 1970.

(The information follows:)

ARMED FORCES PHYSICAL DISABILITY RETIREMENTS AND SEPARATIONS BY LAW, JAN. 1, 1970 TO JUNE 30, 1970

appear

Chairman ELLENDER. At this point in the record there will a tabulation from the justifications indicating the number of enlisted personnel listed in the Fleet Reserve for fiscal years 1970, 1971, and 1972.