By John Ausink, Albert A. Robbert
The repayment, Accessions, and group of workers administration procedure, designed to merge info and instruments for research and to help coordination of coverage efforts, is confirmed in educational structure, displaying how CAPM can be utilized to version a few protoypical coverage concerns.
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Additional info for A Tutorial and Exercises for the Compensation, Accessions, and Personnel Management (CAPM) Model
A person who makes the decision to reenlist after completing eight YOS will only receive the bonus if he stays in for the ninth year; that is why the bonus must go in the YOS nine position. When calculating ACOL values, CAPM considers the probability that a person will be promoted to the next higher grade. Thus, an E4 at YOS eight who is considering staying will note the possibility of being either an E4 or an E5 at 32 nine YOS. For this reason, even though we are targeting only E4s at eight YOS, the bonus matrix must have the bonus amount for both E4s and E5s at YOS nine.
Without the COLA cap, a person who retires after 20 YOS receives a certain amount of retirement pay. With the COLA cap, the value of that retirement pay declines. xlw workbook suffix to this label. 38 YOS is lower than that without the cap and the cost of leaving is greater. The model’s calculations show that in the scenario with the cap, an individual gains more by staying in the military a little longer because he or she will earn more years of military pay and the value of retirement pay will also increase.
This will provide a sense of how the average ACOL in a given year of service has changed with the new retirement options. 18. 18—ACOL Changes Resulting from SSB/TERA Interpreting the Results Recall that ACOL is an expression of the difference in income a person will receive by staying in the Air Force until some future date and the income that would be received by leaving for a civilian job now. Notice that from YOS 01 through YOS 04 the difference in the cost of leaving between the SSB/TERA case and the base case is positive: The SSB/TERA plan makes it more lucrative to stay in the Air Force (the cost of leaving is higher).
A Tutorial and Exercises for the Compensation, Accessions, and Personnel Management (CAPM) Model by John Ausink, Albert A. Robbert