1/ - Represents initial payment only approximately 50 Source: "Justification of Estimates for Fiscal Year II. ISSUE AND RECOMMENDATION SUMMARIES (CONT'D) E. PERSONNEL ISSUES (CONT'D) OSD 35: AVIATION CAREER INCENTIVE PAY Summary Recommendation The Department of Defense (DOD) should limit payments under the Aviation Career Incentive Pay (ACIP) program to members who are serving on regular and frequent flight duty assignments. Also, for members with more than 12 years of service, payments under the ACIP program should be reduced. Financial Impact $78.9 million Potential Savings: $66.9 million estimated annually annual savings from elimination of ACIP payments to those not engaged in flying duty. Estimated savings of $12 million from restructuring of payments to those with more than 12 years of service. Background ACIP was established in 1974 by P.L. 93-294. It is a monthly payment in addition to regular military compensation and intended to attract and retain officers and volunteers in an aviation career. ACIP has two primary functions: to compensate for additional hazards related to flight and to serve as a retention or career continuation device. DOD estimates FY 1983 expenditures for the ACIP program will total approximately $257 million for 75,000 service members. Exhibit II-26 at the end of this issue provides details for each service branch. Eligibility for ACIP can be secured in several ways. First, it is available on a monthly basis to those officers whose duties involve frequent and regular performance of operational or proficiency flying duty required by orders. Second, it is available on a continuous basis until completion of 25 years of service if six of the first 12, or 11 of the first 18 years of an officer's aviation service are spent performing prescribed operational flying duties. (Warrant officers are not subject to this discontinuance at 25 years.) This time includes flight training but not proficiency flying. Further, an officer who spends at least nine, but not 11, of the first 17 years of aviation service performing flying duties is eligible for continuous monthly ACIP for the first 22 years of officer service. Once these service points (or "gates" as they are called) are passed, an officer is entitled to monthly ACIP regardless of actual duty assignment. That is, once the amount of service in assignments actually requiring flight is attained, the ACIP continues, even in the absence of flight duties. ACIP amounts relate to the length of service. Phase I rates, payable in the earlier years of an aviation career, are determined by length of aviation service as an officer. |