An Evaluation of Alternative Voluntary Separation Payments to Military Personnel
This report documents RAND’s research effort on one aspect of the personnel drawdown — how to structure voluntary separation offers to service members to efficiently meet force-reduction objectives. This research was carried out before development of the voluntary separation programs initiated between 1992 and 1994 and was instrumental in shaping them. The authors address the question of what part of the reductions should come from lowered accession levels and what part from increased separations of personnel currently in the service. They identify the criteria that any separation plan should meet and develop a methodology for estimating the acceptance rate of voluntary separation offers. They apply this methodology to evaluate a range of such offers and then address the process of how to structure separation offers to get both the number and type of desired departures as cost effectively as possible. Finally they address questions concerning the financing of such offers by estimating the savings from reduced retirement outlays.