Pay caps, reduced retirement benefits and higher out-of-pocket costs for retiree health care are in the
military’s future under the Defense Department’s new strategy that will be announced this afternoon.
That means the Jan. 1, 2013 raise would be 1.7 percent, under the Obama administration plan. The 2014 raise will not be known until next year because it would be calculated to follow the pay formula in law to match the Employment Cost Index of private-sector raises. Military Times