The authors wish to thank the staff of the Deputy Assistant Secretary of Defense (Military Personnel Policy) for their support, particularly Colonel Thomas Page, Colonel Toreaser Steele, Colonel David Schreier, and Lieutenant Colonel Elaine Parker. Additionally, many officers and civilians representing all the military departments participated in the policymaking group and the working group established by the Assistant Secretary of Defense (Force Management Policy). These groups contributed their time, policymaking and analytical expertise, and their attitudes about the future. We would also like to thank Mr. Robert Emmerichs and the 8th Quadrennial Review of Military Compensation. This project also benefited from the comments of Major Jeffrey Stonebraker, USAF Academy; Joseph J. Cordes, Department of Economics, George Washington University; and RAND colleagues David Grissmer, Sheila Kirby, and Albert Robbert. Finally, we gratefully acknowledge the thoughtful reviews of Craig Kirkwood of Arizona State University and David Chu of RAND.