By John Ausink, Albert A. Robbert
The repayment, Accessions, and group of workers administration method, designed to merge facts and instruments for research and to aid coordination of coverage efforts, is verified 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
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).
For this exercise, we assume that the Air Force is concerned that not enough E4s are reenlisting after completing eight YOS. To induce more people in this cohort to reenlist, the Air Force decides to offer a reenlistment bonus of $20,000. Creating a Bonus Pay Table To study the effects of a targeted bonus, we must create a pay matrix that provides the bonus payment. db file and paste it into a new spreadsheet. db from the last exercise if you wish. • Select all pay values in the matrix and delete them.
Click next to the “Retirement” cell. In the Retirement screen, you will find a matrix containing parameters for each of the three retirement plans currently in effect. Locate the row labeled “Interest/COLA rate” and note that, as mentioned above, this rate is already set to the interest rate of 5 percent for each of the three plans. These rates are used to discount the cost of retirement in CAPM’s cost outputs, but they are also used in discounting future retirement income. • Click All models .
A Tutorial and Exercises for the Compensation, Accessions, and Personnel Management (CAPM) Model by John Ausink, Albert A. Robbert