Policies for Managing Reductions in Military End Strength: Using Incentive Pays to Draw Down the Force

The Army can design voluntary separation pay (VSP) to meet drawdown goals within a certain time frame without over- or undershooting the goals. A dynamic retention model determines the appropriate VSP levels by year of service to achieve drawdowns of alternative sizes for the active component Army, and the approach could be applied to other services, for enlisted personnel and officers, and for the steady state and the transition to it.