Housing Compensation Changes Considered

According to articles that appeared in the Army Times, the Pentagon commissioned the RAND Corporation to conduct a study on possible alternatives to the Basic Allowance for Housing (BAH).  The study examined replacing BAH and Basic Allowance for Subsistence (BAS) with a single “locality pay” that would vary according to the cost of living at a given location.  The study also looked at the possible elimination of the additional payment for service members with dependents, removing the distinction between single service members and those with families. 

The current system can be confusing with changes in rates for each allowance based on pay grade, locality, and dependent status. The locality allowance would remove some of the confusion because it would combine several variables into one allowance that only varied by pay grade and location. How such a change would affect retention, privatized housing, and other areas would only be revealed through a detailed plan.

Currently, the Pentagon has not acknowledged any plans or efforts to change BAH, which would require an act of Congress. The Military Compensation and Retirement Modernization Commission is studying the entire compensation and quality of life system for service members and is looking for input from you about what matters. Please tell us your story and your concerns about potential changes to the compensation system, specifically the BAH by commenting on our Facebook page or emailing us at info@militaryfamily.org.

(Source: http://www.armytimes.com/article/20140113/BENEFITS02/301130009/Big-changes-BAH-)

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