only a year ago helped to defeat the fourth largest military in the world in 43 days. It is not the way I would have preferred to repay the men and women who continue to serve today who are spending 6 months out on extended deployments, with more than half of the typical sea duty separated from their families. But, they continue to do important things in Southwest Asia, to fight drug traffic in the Caribbean and Latin American waters, to train with their sister services and allied forces and to meet other real world commitments. While I would not prefer to do that, even our sailors understand, I believe, that these are necessary actions to avoid an alternative that would hurt Navy people even more. That is forcing out midcareer personnel who are performing well before they are retirement eligible. If we do that, I really believe we are going to lose faith with our men and our women, and we are going to hurt our ability, of your Navy and our Navy, if you will, to meet commitments around the world that will continue. To protect that readiness right now and to keep faith with our Navy people and their families, I believe our Navy manpower plan for fiscal year 1993, in fact, will give us a measure of stability for our career Naval personnel and it will perhaps, remove some of that uncertainty, Senator McCain, that you mentioned, so that they can do their jobs and worry about doing them well and not worry about whether they have a career when they come back. At the same time, based on your direction and your support, we are continuing to reduce the size of the Navy over a measured period and in a thoughtful way. This was a process that we started 2 years ago and continued the glide path that you mentioned, Senator Glenn, earlier, throughout Desert Storm. We are carefully balancing our personnel numbers to the force structure so that we are manning the ships correctly and keeping them combat ready. This also allows our personnel operating tempo to be something that our sailors can bear and endure. SEPARATION INCENTIVES We are offering adequate pay and benefits to compensate our men and women fairly and that includes, as General Carney mentioned, continuation of selective reenlistment bonuses and incentives for those trained in skill areas where we have shortages. People will have options to go elsewhere such as medicine, nuclear power and aviation continuation pay, although we are adjusting all of those, to assure we are offering the bonuses only where they are needed. All of these tools are needed to attract and retain the Navy people that we have on board in the skills areas that are in short supply. With your support, we are going to continue to improve the quality of life for Navy people and families. We have been lax in the past on this and we are working hard to correct that in areas of housing, family services, morale, welfare and recreation and in hild care. RECRUITING Last, we are going to recruit high quality men and women to come in to be our shipmates. If a youngster only reads in the headlines about military careers cut short, then the best of them just are not going to volunteer, I do not think, to go through the tough training, through the hard work and the time away from home required of today's sailors. Or the great rewards, I might add, that come from looking back at a successfully executed career. We need adequately funded recruiting and advertisement programs to make those youths aware of what we do for a living and in support of the Nation. Even as we reduce in size, we have to continue that. Our 1993 budget request supports all of these requirements and sustains the Navy's personnel readiness, while it continues to reduce the size of the Navy as you have directed. I look forward to working with you and your staffs in responding to your questions this morning as we march on to an unprecedented period in Navy personnel management. Thank you, sir. [The prepared statement of Admiral Zlatoper follows:] PREPARED STATEMENT BY VICE ADM. R.J. ZLATOPER, USN, DEPUTY CHIEF OF NAVAL OPERATIONS It is a pleasure for me to be here today to discuss Navy's manpower program for fiscal year 1993. Last year's hearing focused on the Persian Gulf and the extraordinary accomplishments of our Navy. Our dedicated Naval personnel met the requirements of Desert Storm with unparalleled success. At the peak of the war, more than 83,000 sailors served in the Southwest Asia theater. Över 16,000 are still there today. They continue their superb performance whether it be conducting their 13,000 interception, or boarding and searching the 3,644 suspicious merchant vessel or maintaining air superiority throughout the region. As a Carrier Group Commander in the Persian Gulf during Operation Desert Storm, I had never been prouder of our Navy men and women. Now, it is an honor for me to be their principal advocate, and to assure you of our continued commitment to the good men and women of the U.S. Navy as we face the difficult challenges in fiscal year 1993 and beyond. As the Chief of Naval Personnel, I sincerely want to thank Congress for listening to Navy's previous message about our people. I also want to encourage you to continue in that same direction for fiscal year 1993. Over the last several years, we have asked for your help in providing stability to our personnel and you have delivered. You allowed us to keep the faith with our sailors and they are appreciative to you for that fact. Fiscal year 1993 will be a very important year for us. We are well established on our glideslope of transition to a much smaller seafaring service. By the end of this year we will have reduced more than 41,000 personnel since our peak at the end of 1989. In fiscal year 1992 alone, we will reduce our end strength by 20,000 sailors to reach our 1992 authorized active strength of 551,289. The plans that we have made and the tools and flexibility that Congress has provided are allowing us to get smaller in an intelligent and effective fashion. I would like to address Navy's manpower strategy briefly. We developed this concept in 1989 and it continues to provide us with a simple, yet powerful underpinning upon which to develop our manpower request for fiscal year 1993. In addition to meeting the requirements of the fiscal year 1991 Defense Authorization Act, the strategy has proven enduring yet flexible over the last 3 years and has allowed us to adapt to the wide range of changes that we have faced. Simply stated, our manpower strategy preserves Navy's commitment to people by: (A) protecting the career force. (B) providing adequate compensation. (C) enhancing quality of life. (D) achieving reductions through expanded authorities without involuntary separations of mid-career personnel. (E) sustaining readiness levels by maintaining reasonable promotion opportunity and judicious use of targeted bonuses. Central to this strategy is our desire to avoid the involuntary separation of career force personnel before they are retirement eligible. This is the essence of keeping the faith with the high quality sailors who made a commitment to Navy. In turn, it also protects fleet readiness by retaining a vital core of experience. The environment for manpower has changed since this strategy was first developed. While authorized strengths have declined sharply, the economy has been stagnant and enlisted retention has been very high. Nevertheless, we believe we can still meet the challenges while remaining fair to our sailors. To remain within strength limits and shape the future force, Navy has taken a number of actions to encourage downsizing. We have: Reduced accessions of new officers and sailors to minimal levels. Rephased this year's recruits to shift their entry from November and December into the summer months. - Encouraged voluntary retirements by offering waivers for time in grade requirements for E-7 through E-9 enlisted and for Commanders and Captains. Selectively early retired (SER) a total of almost 800 Captains and Commanders in fiscal year 1990 and fiscal year 1991. - Adjusted CREO (Career Reenlistment Objectives), SRB (Selective Reenlistment Bonuses), and officer bonuses to motivate personnel to shift to areas where Navy has the greatest need. Reduced Aviation Continuation Pay (ACP) in those aviation communities where retention exceeded requirements. - Developed a reenlistment program, called ENCORE (Enlisted Navy Career Options for Reenlistment), which requires headquarters approval for first term personnel to reenlist. ENCORE will provide us another tool to control the size and quality of the career force. It should help us to retain quality personnel as we get smaller. - Offered Voluntary Separation Incentives (VSI) and Special Separation Benefits (SSB) to selected Petty Officers in over-manned areas. Throughout fiscal year 1992 retention rates for officers and enlisted have increased to unusually high levels. At the same time, the number of voluntary retirements is down. While this bodes well for personnel experience level and readiness of the fleet, it is an aberration which complicates our plans to reduce manpower without involuntary separations. Accordingly, to keep our commitment to our sailors while reducing force size, Navy has developed several policy changes that we believe will help shape the Navy. - Navy will offer an early release program that will allow a sailor to separate up to 90 days early. In each case, to ensure there is no significant readiness impact, we will require a favorable endorsement from the local Commanding Officer. - Navy will also authorize early releases of as much as 1 year for those officers and enlisted who are assigned to units being decommissioned. This will include personnel stationed in the Philippines. Additionally, for fiscal year 1993 Navy will introduce several changes to its mandatory and selective early retirement (SER) policies: - Navy will expand the SER process to include retirement eligible Chief Petty Officers and Chief Warrant Officers. This will address strength limitations and correct existing overages, and, as a bi-product, provide some additional upward mobility. As we develop our fiscal year 1993 SER plan we will look closely at retirement eligible 03 and 04's as well. Lower high year tenure points to 20 years for E-6, 24 for E-7 and 26 years for E-8. We will provide ample opportunity for individuals to plan their transition as we phase in the implementation of these changes. Collectively, these policy changes will reinforce our ability to continue executing our manpower strategy. They will insure that those who have made a commitment to Navy and who serve well and faithfully will have the opportunity for a satisfying career and full retirement. These changes will allow us to avoid undesirable alternatives such as involuntary separations of career force sailors prior to retirement eligi bility or the total stagnation of advancement opportunities. EXECUTING NAVY MANPOWER STRATEGY FISCAL YEAR 1992 In fiscal year 1992, we are accessing only the minimum numbers of new enlisted and officer personnel needed to meet current and future requirements. This year on the officer side, we have reduced appointments to the US Naval Academy and the number of scholarships offered through ROTC by 15 percent. By fiscal year 1995, Navy will reduce USÑA and NROTC accessions to 850 and 1,100 people, respective ly. Aviation Officer Candidate School (AOCS) and Officer Candidate School (OCS) are now producing at their minimum output levels and will continue at that level until the drawdown slows in fiscal year 1995. We have reduced enlisted accessions to the minimum number required to sustain the force and prevent future mid-grade petty officer shortages. A painful element in our drawdown policy has been the retirement of officers who are eligible under our current Selective Early Retirement (SER) authority. In fiscal year 1992, we held our second Selective Early Retirement Board (SERB) to identify captains and commanders for early retirement. We expect to exercise this provision of the law yearly through fiscal year 1995. Using the procedures specified in Title 10, U.S. Code, with the enhanced SER authority from the Fiscal Year 1991 Defense Authorization Act, the SERB met in December and selected 350 officers to retire no later than August 1, 1992 (down from 442 in fiscal year 1991). This process is painful and difficult to accept by our senior officers who, although they understand, are nevertheless disappointed. We finished fiscal year 1991 with a medical department end strength of 12,096. Congressional language establishing a medical department floor of 12,510 requires growth in fiscal year 1992 of about 400 officers. So far we have been able to achieve this growth without offsetting involuntary separations in our non-medical officer career force. However, growth of the medical community has removed future flexibility for effecting the officer drawdown and reduces the number of high caliber reserve officers who might otherwise be permitted to enter the career force. Recruiting Recruiting in 1991 proved to be a most successful year, as we accessed the highest quality recruits since the advent of the All-Volunteer Force (AVF). We attained 100 percent of our enlisted accession goal of 68,311 with 66 percent of those in the upper aptitude group category (compared to 63 percent in 1990). Ninety-six percent were high school diploma graduates (compared to 92 percent in 1990). To attract this exceptionally high quality recruit in the future, we must maintain the stability of our recruiting force and continue to support their efforts. In view of the Philippine Governments rejection of the Military Bases Agreement and the consequent closing of Subic Bay Naval Base, we are discontinuing the Philippine Enlistment Program (PEP). This will not affect the 180 Philippine nationals to whom we made commitments before this decision. However, all further efforts to recruit Philippine nationals have ceased. Since 1952, more than 35,000 Filipino citizens have joined the Navy through this program. They have been a wonderful and integral part of the history of the Navy. On a closely related issue, I want to express my appreciation to Congress for its role in resolving the unique immigration problem that our Filipino sailors encountered. The 1991 Philippine Immigration Act was a great morale booster as well as recognition of a very special group of sailors. Thank you for your help. Enlisted Retention Navy enlisted retention in fiscal year 1991 reached new highs. First term retention increased from 38 percent in fiscal year 1990 to 41 percent in fiscal year 1991. So far in fiscal year 1992 retention is well ahead of the 1991 rate. Sailors responded to the challenge of Desert Storm by reenlisting in percentages that helped make it unnecessary for Navy to implement a service-wide "stop-loss." Navy retention continues to be an indicator of the positive steps taken in the past to improve compensation and quality of life for our sailors. While current economic conditions make it advantageous for the average sailor to remain in the Navy, congressional support of the Selective Retention Bonuses (SRS) has made it possible for us to retain our topnotch, technically trained personnel in the areas we need them. Even with the current economic and retention considerations, SRB remains our most cost effective tool for balancing the enlisted force and protecting our investment in the training and experience of enlisted specialists who are in short supply. We adjusted the program twice in fiscal year 1992 and will continue to target only shortages in critical mission essential ratings. Officer Retention Officer retention for fiscal year 1991 displayed continued strength overall but Navy again experienced shortfalls in Aviation, Nuclear Power and Medical areas. Aviation: Overall pilot retention dropped slightly in fiscal year 1991 but remained in line with historic averages over the past 8 years. Helicopter pilot and Naval Flight Officer retention remain at or above required levels. Shortages, however, in many tactical communities still require attention. Airline hiring and the state of the economy remain the prime factors affecting pilot retention. Forecasts indicate continued hiring by commercial aviation, with strong competition from the civilian job market for our pilots. Aviation Continuation Pay (ACP), which is selectively applied to those specialties where retention is a concern, has proven to be a positive incentive in keeping our experienced pilots. Nuclear: Navy is experiencing improved retention among mid-grade and senior nuclear trained officers. However, we are beginning to notice lower retention among those junior officers who have completed their minimum service obligation (down 9 percent from fiscal year 1990 to fiscal year 1991). Instead of taking assignments ashore, they are resigning their commissions. We will continue to watch this trend closely. Medical: Because of higher pay and family stability in the civilian sector, the retention of medical personnel continues to challenge us. Aggregate fiscal year 1991 retention showed small gains for all medical department corps. Navy had 4,342 physicians on active duty at the end of fiscal year 1991 which was very close to our target of 4,390. Although we expect to reach medical corps end strength in fiscal year 1992, there are still a few physician specialties with inventory shortages. Nurses should reach end strength target in fiscal year 1992 for the first time in many years. As of September 30, 1991, 3,140 nurses were on active duty compared to 3,057 at the end of 1990. We expect medical retention rates to improve through 1993 as we apply the incentives contained in the Fiscal Year 1992 Defense Authorization Act (i.e., Physician Special Pays, Nurse/Non-Physician Bonuses). Joint Officer Management We have made significant progress in the assignment and qualification of officers as Joint Specialists. Navy's fill rates for assigning qualified joint officers are above minimum requirements. By law, the fill rate, for all services, for critical joint billets by joint specialty officers is 80 percent; Navy is at 83 percent. While the joint duty assignment list requires a 50 percent fill with joint officers, Navy filled 59 percent for fiscal year 1991. However, many of our best officers in the nuclear community will not have had the opportunity to complete a joint duty tour before being considered for promotion to rear admiral. The requirement for top quality nuclear trained officers to serve in critical reactor safety billets until completing their major command (about 25 years commissioned service) is compelling. This problem is a lasting one and requires a resolution. Navy believes that making the current exemption of the joint requirement prior to flag selection for nuclear trained officer permanent is essential to insure competitive fairness for these officers. WOMEN IN THE NAVY Leadership positions within the Navy continue to expand for women. We now have three active duty female line admirals the most ever. This increasing advancement by women can be seen across the board and parallels an increase in the number of assignments at sea. The number of women assigned to ships has increased significantly. In fiscal year 1990 there were 331 female officers assigned to ships. In fiscal year 1991, there were 392-nearly a 20 percent increase. Female enlisted assigned to ships increased 10 percent over the previous year. Although progressing slowly, the percentage of women in sea-intensive rating groups continues to climb at a measured rate, up 1.6 percent over the previous year. Women continue to progress within the Navy; notably in fiscal year 1991: -The first female Surface Warfare Officer (SWO) assumed an O-5 Commander Command at Sea. -The first female Naval Officer commanded a ship in a wartime environment (U.S.S. Opportune (ARS-41)), deployed to the Eastern Mediterranean during Operation Desert Storm. The first female Master Chief Petty Officer was assigned as director of the Senior Enlisted Academy, -The first female midshipman was selected to lead the Naval Academy Midshipmen as Brigade Commander. The future of women in the Navy continues to look bright. U.S.S. Lexington's decommissioning and U.S.S. Forrestal's designation as her replacement will mean additional billets for women because of Forrestal's larger crew size. The transfer of eight FF-1052 class ships to the Naval Reserve Force and their designated training mission has allowed increased assignments for 112 women. Despite large, programmed force reductions in the Navy in general, the number of women at sea continues to grow. The Navy Women's Study Group released its findings in April 1991 and has provided an excellent blueprint for Navy women in the future. Navy is monitoring 150 ommendations in 20 policy areas as a result of the study. We expect our semi |