This was in a comment from a reader [who commented on this post] and it was just too good to not respost for everybody to see.
See people, there is a rhyme and reason to everything.
[emphasis is mine]
By law the administration’s pay increase proposal is restricted to no more than the Employment Cost Index (ECI). The ECI is a quarterly economic series detailing the changes in the costs of labor for businesses in the United States economy. The ECI is prepared by the Bureau of Labor Statistics (BLS), in the U.S. Department of Labor. It is 1.4%. The 2009 inflation rate was -0.34%. Negative inflation is generally not considered ‘rampant’. Social security, which is national, did not increase in 2010 for the first time in three decades and is expected to not increase in 2011 either. Welfare payouts are determined at the state level, not by the President or Congress.
Also last years initial proposal was 2.9%. It ended up being 3.4% because Congress decides on the final increase, not the President, who submits the initial proposal based on law, not his discretion.
(source)Directly from the dfas.mil website-
How are annual pay raises calculated? Military pay raises are linked to civilian pay raises. Military pay raises have been at least one half of a percent higher than the civilian pay raise each year, as measured by the Employment Cost Index (ECI), until 2006. Starting in 2007, pay raises are equal to the increase in the ECI. Pay raises may exceed these automatic levels if authorized by Congress. In January 2010, the military pay raise was changed to 3.4% (ECI).
{ 2 comments… read them below or add one }
Thanks for this info. I’m a liberal active duty soldier and I love it when I tell people of uniform that I am. They can’t stand liberals in the service because they think we would never serve. Anyways, about the info above, I always knew that our pay raises were linked to civilian pay growth because of all the articles I read in the Army Times that said so. I guess we liberals are the only ones who read, or at least retain the information with comprehension… I keep telling conservatives that this country will not turn around economically until we strengthen the middle class again. This pay increase is a very clear indication that wages are stagnant and symptomatic of an alarmingly shrinking middle class.
I’m a military scientist with a P.h.D in Biochemistry. I’m a a conservative. I feel my reading comprehension is probably adequate Brad. Apparently you haven’t read enough Brad. Certainly the military pay increase per year is linked to the civilian sector, but it’s not the ONLY factor involved.