Implementation of the Post-Vietnam Era Veterans' Educational Assistance Act of 1977

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Implementation of the Post-Vietnam Era Veterans' Educational Assistance Act of 1977
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Book
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United States -- Veterans Administration. -- Central Office
United States -- Veterans Administration
United States -- Dept. of Defense
United States -- Congress. -- Senate. -- Committee on Veterans' Affairs
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Table of Contents
    Front Cover
        Page i
        Page ii
    Section 1642 of Title 38, United States Code
        Page iii
        Page iv
    Letter of transmittal
        Page v
        Page vi
    Introduction
        Page vii
        Page viii
    Table of Contents
        Page ix
    List of Tables
        Page x
        Page xi
        Page xii
    1. Administration of the program – Veterans Administration
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
    2. Program implementation and operation – Department of Defense
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
    3. Study of participation
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
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        Page 98
        Page 99
        Page 100
        Page 101
        Page 102
    Appendix A. Veterans Administration: Documentation
        Page 103
        Page 104
        Page 105
        Page 106
        Page 107
        Page 108
        Page 109
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        Page 140
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    Appendix B. Department of Defense: Service regulations
        Page 145
        Page 146
        Page 147
        Page 148
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    Back Cover
        Page 176
Full Text


,,Cnrs2d Session SENATE COMMITTEE PRINT NO. 22


PLANS FOR THE IMPLEMENTATION
OF THE POST-VIETNAM ERA VETERANS' EDUCATIONAL
ASSISTANCE ACT
OF 1977

AN ANNUAL JOINT REPORT
PREPARED BY THE
VETERANS' ADMINISTRATION
AND THE
DEPARTMENT OF DEFENSE
(Pursuant to Section 1642 of Title 38, Un Rd
SUBMITTED TO THE
COMMITTEE ON VETER AFFAI
UNITED STATES S






JULY 21, 1978


Printed for the use of the Committee on Veterans' Affairs

U.S. GOVERNMENT PRINTING OFFICE 31-2620 WASHINGTON: 1978




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COMMITTEE ON VETERANS' AFFAIRS
ALAN CRANSTON, California, Chairman
HERMAN E. TALMADGE, Georgia ROBERT T. STAFFORD, Vermont
JENNINGS RANDOLPH, West Virginia STROM THURMOND, South Carolina RICHARD (DICK) STONE, Florida CLIFFORD P. HANSEN, Wyoming JOHN A. DURKIN, New Hampshire SPARK M. MATSUNAGA, Hawaii


SUBCOMMITTEE ON HEALTH AND READJU13TMENT
ALAN CRANSTON, California, Chairman
JOHN A. DURKIN, New Hampshire, Vice Chairman
JENNINGS RANDOLPH, West Virginia STROM THURMOND, South Carolina RICHARD (DICK) STONE, Florida CLIFFORD P. HANSEN, Wyoming








TITLE 38-UNITED STATES CODE


PART III-READJUSTMENT AND RELATED BENEFITS


CHAPTER 32--POST-VIETNAM ERA VETERANS'
EDUCATIONAL',ASSISTANCE


Subchapter IV-Administration


1642. Reporting requirements
The Administrator and the Secretary shall, within 90 days after the date of enactment of this chapter, submit to the Committees on Veterans' Affairs of the Senate and House -of Representatives a joint report containing their respective plans for implementation of the program provided for in this chapter. The Administrator and the Secretary shall submit to such committees a report each year detailing the operations of the program during the preceding year. The first such annual report shall be submitted 15 months after the date of enactment of this section.














LETTER OF TRANSMITTAL




VETERANS ADMINISTRATION
OFFICE OF THE AaMINISTRATOR OF VETERANS AFFAIRS WASHINGTON, D.C. 20420

JUNE 2 7 1978


The Honorable Alan Cranston
Chairman
Committee on Veterans' Affairs
United States Senate
Washington, D. C. 20510

Dear Mr. Chairman:

Title 38, United States Code, Section 1642
requires that a joint report from the Veterans Administration and the Department of Defense be submitted to
your committee annually on the status of implementation
of the Post-Vietnam Era Veterans' Educational Assistance
Act of 1977. This first annual report is presented in
three sections. Section one describes the administration of the chapter 32 program by the Veterans Administration.
Section two discusses the implementation and operation
within the Department of Defense. Section three contains
detailed statistics on participation within the Department
of Defense.

Sincerely,




JO!"4N P WHITE MAX CLELAND
Assist-.of Defense Administrator
(Manpower, & Logistics)]



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INTRODUCTION


The Post-Vietnam Era Veterans' Educational Assistance Act

of 1977 enacted under Title IV of Public Law 94-502, established a contributory educational assistance program under chapter 32 of Title 38, United States Code. The purpose of chapter 32 is to provide educational assistance to those persons who initially enter the armed forces after December 31. 1976 and are not covered by the provisions of chapter 34, (Veterans' Educational Assistance) to assist them in obtaining an education they might otherwise be unable to afford-and to attract qualified persons to serve in the armed forces. Eligibility for participation in the chapter 32 program is extended to active duty personnel in the U.S. Coast Guard, the U.S. Public Health Service, the.National Oceanic and Atmospheric Administration and military personnel in the Department of Defense.

This reDort is in response to requirements specified in Title 38, United States Code, Section 1642, that a report be

submitted annually to the Committees on Veterans I Af fairs of the Senate and House of Representatives and that the first such annual report be submitted 15 months after the date of enactment of this section. Section one of the report describes the administration of the chapter 32 program by the Veterans Administration. Section two discusses the implementation and operation within the Department of Defense. Section three contains detailed statistics on participation including information on patterns of enrollment (according to demographic, socioeconomic, and other characteristics) within the Department of Defense and its components.
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First Annual Report to Congress on the Post-Vietnam Era Veterans' Educational Assistance Program

-ContentsPage

Section 1642 of Title 38, United States Code ...... ............. iii
Letter of Transmittal ............................ v
Introduction . . . ............................ vii
List of Tables ........... ............................ x
1. Administration of the Program Veterans
Administration .... ............ ....... 1-1

1.1 Regulations ......... ................ 1-1
1.2 Mlaintenance of the Fund .... ............ 1-2
1.3 Administration of Benefits .... .......... 1-6
1.4 Progress to Date ....... ............. I. 1-8
1.5 Evaluaticn of the Program .... ......... .. 1-10

2. Program Implementation and Operation
Department of Defense .......... ............. 22.1 Outreach 2-2
2.2 Enrollment Procedures .... ............. .. 2-5
2.3 Significant Problems ...... ........... .. ..2-5
2.4 Department of Defense Contributions
to the Fund ....... .................. 2-6

3. Study of Participation ........ ............... 3-1

3.1 Summary of Results ....... ........... 3-1
3.2 Data Sources and Definitions ..... ........ 3-3
3.3 Comparison of Enlisted Program Participants
and Eligible Enlisted Accessions ........... ..3-6
3.4 Participation Frequencies for Selected
Enrollment Characteristics .... ........ 3-61
3.5 Evaluation of Contributory Levels
and Participation ...... ............... 3-69


Appendix
A. Veterans Administration: Documentation ...... ..A-1

1. DVB Circular 20-77-25, Appendix A,
Revised ...... .................. A-2
2. InteragencyAgreement Between the
Veterans Administration and the
Department of Defense .... ............ A-6
3. Notice of Disenrollment and Application
for Funds Deposited in Post-Vietnam Era Veterans Educational Assistance Program
VA Form 4-5281 ....... .............. A-42
B. Department of Defense: Service Regulations . . B-2

ix













LIST OF TABLES

Page

Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Month of Entry, for:
Table 3.1 All Services ............. .......
3.2 Army ........... .............. ...-1
3.3 Navy.. .................. ...
3.4 Marine Corps.. . . . . . . . 3-16
3 5 Air Force ...............................,3-17
Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Sex, for:
Table 3.6 All servicess ...... ............... 3-19
3.7 Army..................... 3-20
318 Navy ................ ... 3-21
3.9 Marine Corns ...............3-22
3.10 Air Force ...... ........... .... 3-23
Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Race/Ethnic Group, for:
Table 3.11 All Services ...... .............. 3-25
3.12 Army................. 3-26
3.13 Navy................. 3-27
3.14 Marine Corps ... .............. 3-28
3.15 Air Force ..... ................ ..-29

Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Age at Entry, for:
Table 3.16 All Services ..............3-31
3.17 Army . . ................ ..3-32
3.18 Navy . . . . . . . . . 3-33
3.19 Marine Corps .... ............... 3-34
3.20 Air Force ................ 3-35
Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Education, for:
Table 3.21 All Services .... ............. 3-37
3.22 Army ............. .. .. 3-38
3.23 Navy....... . ........ 3-39
3.24 Marine Corps ..............3-40
3.25- Air Force .................. 3-41

Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Mental Category, for:
Tab1e-, 3.26 All Services ...... ............. 3-44
3.27 Army... .................. 3-45
3.28 Nnvy....................... 3-46
3.29 M:]'ino Corps . . . . . . 3-47
3.30 Air ,'.ore ........... Lp


x









List of Tables (continued) Pag-e


Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Marital Status and
Dependents, for:
Table 3.31 All Services...................3-50
3.32 -Army..........................3-51
3.33 Navy.........................3-52
3.34 Marine Corps.................3-53
3.35 Air Force..................3-54

Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Median Family Income in
Home of Record, for:
Table 3.36 All Services ...................3-56
3.37 Army.........................3-57
3.38 Navy.........................3-58
3.39 Marine Corps...................3-69
3.40-- Air Force.................... .. 6

VEAP Participants: Frequency Distribution by Military
Service and:
Table 3. 41 Month of Enrollment ............3-62
3.42 Amount of Monthly Contribution ......3-65 3.43 Officer and Enlisted Personnel .. .....3-65
3.44 Month of Disenrollment. ............ 6

VEAP Participants: Disenrollment and Early
Separation by Military Service:

TIable 3.45. .......... .. .............3-68


VEAP Participant Frequency Distribution: Selected
Demographic Characteristics by Contributory
Level, for:

Table 3--6 All Services. ..................3-72
3-47.-Army. .....................3-74
3-48-Navy........................3-76
3-49 -Marine Corps...................3-78
3-50 --Air Force..................3-80







xi















Section 1. Administration of the Program Veterans Administration

Policies and procedures, consistent with the provisions of Public Law 94-502, incorporated into Title 38, United States Code, under chapter 32, have been developed for administration of the Post-Vietman Era Veterans' Educational Assistance Program (VEAP). The Veterans Administration has made every effort to plan for and accommodate those applicants who have requested benefits or who are expected to apply for benefits in the future. This section of the report includes a comment on the status of regulations drafted to guide implementation of the program, a description of the banking system which maintains a record of funds contributed, and a summary of the procedures approved for administration of benefits. The last part of this section discusses the progress made and difficulties encountered since

inception of the program.

1.1 Joint Veterans Administration/Department of Defense
Regulations

Chapter 32 of Title 38, United States Code contains several references to definitions, terms and conditions to be prescribed

-in regulations issued jointly by the Administrator of Veterans Affairs and the Secretary of Defense. In response to this requirement, regulations have been drafted and are pending concurrence by both the Veterans Administration and the







2



Department of Defense, Subsequent to this approval, the regulations

will be published in the Federal Register and will be incorporated

later into the Code of Federal Requlations.

Until such time as these regulations are promulgated,

the Veterans Administraion will continue to operate

under the guidelines established by DVI Circular 20-77-25, issued

in coordination with the Department of Defense. Since the joint implementation report of April 11, 1977, DVB Circular 20-77-25,

Appendix A, Revised, has been published and is provided in

Appendix A of this report. In addition, the Veterans Administration

is developing, for internal use, more detailed instructions for processing chapter 32 benefits.

1.2 Maintenance of the Fund

Records of contributions from the participants, along with

any contributions from the Department of Defense, are maintained

by the Veterans Administration in a computerized system at the

VA Data Processing Center in Austin, Texas known as the Chapter 32

Banking System. Several staff months and substantial overtime

were expended in activating this system. The project also

required close coordination among several Federal agencies. in

December 1977, the Veterans Administration began processing computer tapes from the Army, Navy, Marine Corps, Air Force, Coast

2 Guard and National Oceanic and Atmospheric Administration.



1-2










These initial submissions culminated several months of negotiations oan data content, format and transfer. A memorandum of understanding which formalized the results of these negotiations has been signed by all parties concerned. A copy of this memorandum of understanding, entitled Interagency Agreement between the Veterans Administration and the Department of Defense, is provided in Appendix A of this report.

The banking system maintains the following information for each participant:

basic identification data,

an accounting of the dates and amounts of

contributions made by the participant and the

Department of Defense, if applicable, and

an accounting of the dates and amount of refunds

made from the system.

Now that the initial tapes from the Services have been processed by the Veterans Administration, the banking'-system is updated monthly. These monthly transactions include the transfer of contributions from the Services, the input of information concerning allotment changes and-the processing of disenrollment refunds. VA Form 4-5281, Notice of Disenrollment and Application for Funds Deposited in Post-Vietnam Era Veterans' Educational Assistance Program, is used to apply for a disenroliment refund. Participants on active duty submit






1-3






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completed forms to their installation finance office; veterans submit their completed forms to the nearest VA regional office. Subsequently# the applications are forwarded to the VA Data Processing Centerr Hines, Illinois where pertinent data are transferred to magnetic tape. These refund transactions are transmitted to the VA Data Processing Center in Austin, Texas for input into the Chapter 32 Banking System, from which refund tapes are sent to the Department of Treasury Disbursing Center for the issuance of refund checks. A record of the amounts refunded is returned to the VA Data Processing Center, Hines, Illinois for accounting purposes.

Data obtained from the banking system were used to determine the participation rate and amounts of contributions during the first year of the program ending December 31, 1977 and are presented below. These data are based upon actual transactions received by the Veterans Administration from the individual Services. Total participants means all persons who have ever participated in the program since its inception. Active participants means those persons who were having, as of December 31, 1977, amounts deducted from their pay monthly. Total gross contributions means the total-amount of contributions that have been paid into the system since inception of the program.









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Chapter 32 Participants/Contributions
(January 1, 1977 through December3=, 177)


TOTAL ACTIVE TOTAL GROSS
PARTICIPANTS PARTICIPANTS CONTRIBUTIONS

Army 26,091 25,635 $7,202,465

Navy 13,571 13,353 3,704,140

Marine
Corps 2,438 2,438 676,030

Air
Force 507 502 103,810
Coast
Guard 256 256 67,035

PHS* 69 69 20,670

NOAA** 2 2 475

TOTAL 42,.934 42,255 $11,774,625

*Public Health Service

*National oceanic and Atmospheric Administration NOTE: The data presented here are taken from the VA banking system
computations. The data differ from calculations used elsewhere in this report because figures supplied by the Services eliminated duplicate records on persons who have disenrolled and
re-enrolled during the year. The VA banking system counted
these as two initial enrollments. It should also be noted that
the above chart includes participants from the Coast Guard, Public Health Service and the National Oceanic Atmospheric
Administration. Section 3 figures do not include these with
the Service participation figures.










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31-262 0 78 2






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1.3 Administration of Benefits

The Veterans Administration has the sole responsibility for

the administration of educational assistance benefits under chapter 32, Title 38, United States Code and has dedicated a considerable amount of staff time toward the development of systems and procedures for processing applications as they are received. Applications for benefits under this program are processed by the VA regional office having jurisdiction over the area where the training is given, except for correspondence training, in which case it may be processed by the regional office having jurisdiction over the area where the veteran is living.

A new form, VA Form 22-8821, Application for Educational

Assistance (For Post-Vietnam Era Veterans under Chapter 32, Title 38t U.S.C.) has been developed and is pending publication. This form is to be used for all chapter 32 educational assistance programs except the Predischarge Education Program (PREP) for which a separate application form is being developed. To the extent possible, existing forms, with modifications as necessary, will be used in administering chapter 32 benefits.

Processing of chapter 32 payments will require extensive program modifications to the current computer system that processes benefits under chapters 34 and 35. Until this is accomplished, awards, disallowances and other transactions under chapter 32 will be processed manually. A payment processing unit has been established at the VA Data Processing Center,





1-6










Hines, Illinois. It will receive Educational Assistance Award forms (VAF 22-1997) after completion by the'VA regional office. The unit will then perform those functions that are normally carried out by the automated system that processes benefits under chapters 34 and 35.

The Veterans Administration has developed formulas and tables based on the formula contained in Title 38, United States Code, Sections 1622(b) and 1631(a)(2). These formulas and tables, which are utilized to compute monthly rates and benefit payment amounts, are necessary to assure that the VA-to-participant contribution ratio of 2 to 1 is maintained.

As of December.31, 1977 there were no beneficiaries receiving payments from the chapter 32 program. However, recently there have been some applicants, who, due to early discharges,, have been declared eligible. Their claims have been processed for payment of benefits under the program.

There is no confirmed date for completion of the modification of the current education computer system to accept chapter 32 awards or related transactions. This is due to the fact that several higher priority computer projects require immediate programming Attention. It is estimated that the modification of-the current system will be accomplished within the next two years. The next annual report will provide a firmer estimate of the actual activation date.






1-7










Eventually chapter 32 transactions will be processed under the VA's Target System, an advanced computer system that will expedite claims processing through the use of video display terminals. This system, which is designated to process all types of VA claims, is presently in the initial installation phase. Chapter 32 award processing will not be programe into

the Target System until some time in the future because current operating systems with a large volume of actions have taken precedence over this project. Again as stated above, the next annual report will provide more definitive dates.

1.4 Progress to Date

It is estimated that there will be no significant number of chapter 32 applications for benefits until 1980. This is due to the fact that most participants who entered the Services after December 31, 1976, and who began authorizing payroll deductions at the beginning of the chapter 32 program in 1977, will not complete their first enlistment (usually three years) until that time. In the interim, the Veterans Administration will be responding to requests for information on the status of chapter 32 accounts in the banking system, and is in the testing phase of adding this capability to the existing Beneficiairy Identification and Record Locator System (BIRLS), Considering the small number of applications for-benefits epce %#ithin the next two, Years,- -the Neterans -AdmiistratJ-oo has developed adequate procedures for processing claims. Furthermore, it is expected that the current computer system






9



will have been fully modified and capable of processing chapter 32 transactions by the time large numbers of claims are received.

The first joint report submitted by the Veterans

Administration and the Department of Defense stated that the Veterans Administration would evaluate the chapter 32 program by studying the characteristics of 1) all participants in the payroll deduction program, 2) trainees receiving chapter 32 benefits and 3) participants who contributed through payroll deductions but did not receive training under chapter 32. There were no eligible chapter 32 trainees during the first year of the program and an analysis of participants not electing to draw benefits for training was scheduled for several years in the future. Therefore for this report, only an analysis of the participants in the payroll deduction program would have been possible by the veterans Administration. An adequate system has been established for the retrieval of this data. However,, due to a variety of problems, records transferred by the seven Services did not include all of the socioeconomic and demographic data necessary to complete an analysis. The Veterans Administration and the Services are working closely to resolve these problems, and it is anticipated that the data required for analysis will be available soon.

During a review of the Regulations submitted by the Service Departments,, the Veterans Administration Office of the General Counsel noted a number of inconsistencies with the existing




1-9







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law. These were discussed with a representative of the Department of defense who agreed to make the appropriate changes as soon as possible.

1.5 Evaluation of the Program

While the number of chapter 32 participants slightly exceeded prior expectations, the Veterans Administration believes that it is still too soon to accurately assess the popularity or viability of the chapter 32 program. However, a great deal of effort has been expended by the-staff to develop and establish appropriate systems in order to both maintain contributed funds and process claims for benefits in a timely manner. The Veterans Administration is well prepared to meet the needs of all claimants within the provisions of.law.


























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Section 2. Program Implementation and Operation Department of Defense


For the four Department of Defense components, the Implementation of the Post-Vietnam Era Veterans' Educational Assistance Program (yEA?) Is essentially complete. Some problems concerning the transfer of funds and information from the services to the Veterans Administration remain unresolved; however, most other aspects of the program are operational.

There is considerable Service variation both in the interest shown by eligible recruits,, and in the nature of problems encountered in implementing the program. Because of these differences, each Service component was asked to prepare a statement for this report, summarizing its observations on the first year of VEAP operation. The Services were requested to include the following information:

Description of outreach activities (both those directed

to recruiting prospects and those directed to eligible

servicelnembers);

Description of enrollmen t procedures;

Review of major problems encountered during the year

and a discussion of how they were solved (for unsolved problems, a description of the implications for future

operation of the progran);

Discussion of plans for Department of Defense "bonus"

contributions.



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This section presents a summary of this information.

2.1 Outreach

Recruiting Programs
Each of the four Services has some form of information program for potential recruits, but there is considerable variation In the manner and extent of VEAP exposure presented in their promotional materials. This variation is attributable to the differing recruiting needs of the Services and reflects the general differences in Service advertising scope and methods.

For the past several years, educational benefits have been identified as effective enlistment motivators for persons entering the Army. Army recruiting and advertising materials incorporate frequent references to the educational opportunities available through military service. Soon after P.L. 94-502 was enacted, the Army developed advertising materials which featured the new program. The Army has conducted an aggressive promotional campaign--advertising VEAP in newspapers, magazines, professional journals, and radio.

The Navy has also given VEAP exposure in its recruiting

campaign. Literature mailed to prospective recruits, standard poster displays, a chart explaining benefits,, and other materials are all used to advertise yEA? and create awareness of the new







2-2






13


Service benefit. However, Navy promotional efforts have been confined primarily to its own publications. Information on VEAP has been featured in Navy recruiting literature such as

Navy Challenge, Mind Growing Experience, and IV-he Navy Career Guide.

The Marine Corps and the Air Force have concentrated mainly on in-Service outreach efforts. Though recruiters from both of these Services counsel prospective recruits on VEAP benefits, the program is not featured in their advertising campaigns.



In-Service Programs

The Marine Corps counsels all eligible enlisted accessions on VEAP at its two recruit depots, and newly commissioned officers at the Marine Corps Development and Education Command in Quantico, Virginia. Additionally, Marine Corps education officers are required to identify and counsel all non-enrollees when they report to their first duty station. The Marine Corps Educational Opportunities booklet, which receives wide distribution, includes a description of the chapter 32 program.

The Air Force briefs all enlistees on VEAP during the 12th and 18th days of their Basic Military Training., and briefs all officers at their points of accession. Briefings are also given at all Air Force technical training centers. In addition, the Air Force has developed a special program to ensure that all enlisted members serving four-year enlistments are couns _led on VEAP benefits in their 12th month of service. Since full VEAP



2-3






14


benefits can be accrued In three years, the 12th month counseling program reminds eligible servicemembers about the program at a time when they are earning more and can still derive maximum benefits from participation.

The Army and Navy also have in-Service VEAl' information and counseling programs. All Army enlistees are briefed on VEAP at the Army Reception Centers. Recently, a special videotape presentation was developed-for this purpose to ensure that all eligible enlistees receive a uniform, enthusiastic and professional presentation on VEAl' opportunities. The Army further requires that soldiers be counseled during in-processing at their first duty station and annually thereafter during their initial tour of duty.

The Navy provides information and counseling on VEAl' at the Recruit Training Commands. In addition,, VEAl' has been incorporated Into the Navy Retention Team program to ensure that eligible servicemembers periodically receive VEA' counselIng. The Navy also promotes VEA' in a wide range of internal publications such as Navy Campus magazine, Careergram, Flag Officer's Newsletter, CHINFO (Chief of Naval Information) newsgrarns, and All Hands magazine. VEAP information has been

presented In radio and film spots distributed to all ships and stations.









2-4






15


2.2 Enrollment Procedures

Service entrants are briefed on VEAP provisions and requirements at Armed Forces Examining and Entrance Stations (AFEES) prior to entering active duty. At that time recruits must read and sign Part I of the VEAP statement of understanding (DD Form 2057) certifying that they received the VEAP briefing. During reception station processing or at the first duty station, each recruit is again briefed on the program and given an opportunity to enroll. The recruit records his/her decision on Part II of DD Form 2057 and signs the form. Servicemembers who elect to participate complete an allotment form which authorizes automatic payroll deductions.

The detailed administrative procedures of the enrollment process for the individual Services appear in Appendix B.

2.3 Significant Problems

Many of the problems encountered during the implementation of chapter 32 were the typical "start-up" difficulties that can be associated with the establishment of any major program. Problems centered around the inclusion of the VEAP allotment in the existing finance and accounting systems, and the development of automated procedures for transferring VEAP funds to the Veterans Administration.

The Army initially encountered some difficulties in setting up its VEAP allotment program. The Army's automated finance



2-5






16


system could accommodate onlY 35 VEAP allotment payments during a three-year enlistment. Therefore, a temporary system was Instituted to collect the 36th payment manually from the servicemember's separation voucher. An automated separation voucher system is being designed and will be installed in late FY 1978.

The Air Force experienced some problems in developing procedures for implementing VEAP and merging VEAP data with their automated finance and accounting system. But their difficulties were related more to a lack of time than to any deficiencies inherent in the design of the program. Once their procedures were developed, the Air Force encountered no major problems.

The Navy and Marine Corps reported no major problems in implementing the program. There was some initial confusion over VEAP provisions at thd field operations level in the Navy, but this problem has been resolved.

2.4 Department of Defense Contributions to the Fund

Chapter 32 of Title 38, United States Code, Section 1622(c) authorizes the Secretary of Defense to contribute to the deposit fund accounts of program participants:

The Secretary is authorized to contribute to
the fund of any participant such contributions
as the Secretary deems necessary or appropriate
to encourage persons to enter or remain in the Armed Forces. The Secretary is authorized to



2-6







17


issue such rules and regulations as the Secretary
deems necessary or appropriate to implement the
provisions of this subsection.

The Sehate Committee on Veterans' Affairs states in its report to accompany S.969 (September 16, 1976) that "the Committee expects that the Secretary will utilize this, authorization as 'a management tool to attract selected individuals' and as an Inducement to high quality personnel whom the Secretary wishes to retain" (p. 105). "In this regard," the Committee further states, "the conclusion of the Defense Manpower Commission that G.I. Bill type educational benefits should be ut ilized as a 'recruiting management program with benefits granted only on a selective-basis to help meet critical skill needs' has guided the Committee in its determination of the need for this provision" (Ibid.).

The Secretary of Defense currently has the authority (Public Law 93-277) to offer differential compensation in the form of bonuses to personnel posseq.sing skills or qualifications for which there is a critical need. Enlistment bonuses, payable at completion of training, are used to attract volunteers who are considered trainable for skills in short supply. In addition, selective re-enlistment bonuses are used to stimulate the retention of enlisted personnel in shortage-category military occupational specialties.







2-7







18


Since the objectives of Title 38, United States Code, Section 1662(c) are similar to the objectives of current enlistment and reenlistment bonus programs (as well as enlistment and reenlistment incentive programs in general), the potential use of the VEAP provision must be evaluated within the context of existing incentive payments. The Services have been studying the potential use of the educational "bonus" (i.e.., Department of Defense contributions to VEAP accounts) as a recruiting management device.

The Army has developed a "test plan" for implementation of the educational "bonus" provision. The cost for the test is estimated at $11 Trillion. The Army test is expected to provide empirical data on the cost-effectiveness of the DoD contribution as an enlistment incentive. It will be conducted during FY 1979, with recruiting promotional support and advertising in the public media. The test will measure the overall effect of the DoD contribution (alone and in conjunction with the enlistment bonus) on the quantity and quality of enlistments In hard-tofill skills. The data and findings from this test will be shared with the other Services.

The Army Is also planning to conduct a study of enlistment incentives. A survey will be used to compare the relative attractiveness of DoD VFAP contributions and other enlistment incentives.




2-8







19


The Navy has been considering the potential use of the DoD contribution. The Navy is concerned that a DoD contribution could discourage reenlistments. The Navy believes that several years or VEAP experience may be necessary before valid analyses can be conducted on the value of DoD VEAP contributions.

The Marine Corps and the Air Force have not developed any formal plans for payment of DoD contributions. However, both Services suggest consideration of modifications to the present format. The Marine Corps speculates that DoD contributions may enhance VEAP participation if they are applied to the enrollee's own required contribution--thus reducing the apparent financial burden placed upon the individual participant. The Air Force proposed that a DoD "bonus" be given to all individuals who have participated for the maximum 36 months, and that the servicernember' s contribution be reduced.

The Department of Defense will evaluate the results of the Army test and attitude survey before making a decision on DoD contributions.

















2-9

















Section 3. Study of Participation




3.1 Summary of Results

The study of participation in the Post-Vietnam Era Veterans' Educational Assistance Program (VEAP) was prepared in response to requirements ,specified in Title 38, United States Code, Section 16412. Although eligibility for participation in VEAP extends to personnel in the U.S. Coast Guard, the U.S. Public Health Service, and the National Oceanic and Atmospheric Administration, this study covers only the Department of Defense.

Detailed statistics on VEAP participation .are presented in two forms: (1) comparisions of enlisted VEAP participants and eligible enlisted accessions by selected demographic characteristics, and (2) frequency distributions for selected variables by Service and total Department of Defense. In addition, cross-tabulations which focus on level of contributions are presented.

Results show the following:

9 The total number of participants through December
1977 was 40,4189. The number of active participants (i.e., total enrollees less disenrollees) was estimated at 36,1455. Army and Navy enrollments accounted for over 92 percent of all yEA? enrollments during CY
1977.





3-1

(21)












31-262 0 78 3






22


9 VEAP participants are almost exclusively enlisted
personnel. The total number of officers enrolled
in VEAP as of December 31, 1977 was 177, or less than
one-half of one percent of all VEAP participants.

15.2 percent of all eligible enlisted accessions
enrolled In VEAP during CY 1977.

Overall participation cannot be described as either "high" or "low"--since there is no acceptable basis
for comparison and no experience with a similar
program.

The VEAP cumulative participation rate has increased with each successive month, For example, the participation rate.during the last six months of CY 1977 was close to 20 percent. In view of the slow start
of the program, patterns of enrollment during the
later months are more indicative of future
enrollment trends. With the added likelihood that
eligible non-enrollees will decide to enroll later in
their careers, participation rates are expected to
Increase.

Participation rates for enlisted personnel in FY 1977
were:

Army 20.4 percent Navy 19.9 percent
Marine Corps,- 7.9 percent
Air Force 1.0 percent

The reasons for differences In participation between
the Services are not clear.

For all Services except the Air Force, participation by female enlistees is disproportionately low. However, the DoD rate of participation by female enlistedpersonnel is increasing.

Participation results demonstrate minority group Interest in VEAP opportunities. Minority race/ethnic groups are consistently overrepresented among VEAP
participants.

The data show that enlisted VEAP participants are
similar to eligible enlisted accessions in educational
attainment. However, there are slightly fewer VEAP participants at combined educational levels of high
school graduate and above.


3-2







23


Eligible enlistees from the above-average mental categories are slightly underrepresented among VEAP participants. However, this appears to be changing.

Generally, VEAP participants are younger than eligibles.
The mean age of participants is lower than the mean age
of eligibles in each of the Services.

The percentage of enlisted VEAP participants who are married is approximately one-third of the percentage
of married eligibles. The likelihood of VEAP participation also diminishes as the number of dependents
increases.

& Eligibles from middle to upper Income areas are
slightly overrepresented. Participation rates
steadily increase as median family income levels
increase.

There is some evidence that VEAP currently favors participation by those who have a higher "capacity to contribute." In a study-of VEAP contributions.,
for example, individuals who are assumed to have
less disposable Income are found to participate
at lower contributory levels.

Over 60 percent of all participants select the $50 minimum contributory level; over 28 percent select the $75 maximum level. The mean monthly contribution is $58-33.



3.2 Data Sources and Definitions

Data Sources

Information identifying and describing VEAP participants

was obtained from the finande/accounting centers of the

Services. Specific data files used in the study are identified

at the bottom of each table..

Demographic data on VEAP participants and eligibles were

obtained from the DoD Master and Loss file and the U.S. Army

Recruiting Command (USAREC) First Examination and Accession file.


3-3






9A


Information on the socioeconoic status of WA? participants and eligibles was derived from the 1970 U.S. Census of Population "fifth count" data file.



Definitions

EliQible servicemembers are those individuals who entered active duty on or after January 1, 1977 and did not sign a Delayed Entry Program (DEP) agreement prior to that date. (Under the DEP, individuals contracted to enter the Services, were enlisted in a Reserve unit, and were required thereafter to enter active duty*. Individuals who entered active duty through a CY 1976 DEP agreement and who successfully conpleted more than 180 days of active duty are eligible for "G.I. Bill" educational benefits.) During FY 1977, over 367,000 enlisted servicemembers (non-prior service) entered active duty. Approximately 102,000 enlisted entrants were ineligible for VEAP benefits. The remaining total of approximately 265,000 enlisted servicemembers are defined as "eligible." The following is a complete breakout of non-prior service (NPS) enlisted accessions according to VEAP eligibility status:


*cf. 38 USC 1652(a) (1) (B)


3-4









CY 1977 NPS Enlisted Accessions Eligible for VEAP
Direct Active Duty 62,717
Entered DEP in 1977 202,750

Total Eligibles 265,467"

CY 1977 NPS Enlisted Accessions Ineligible for VEAP
Entered DEP in 1976 92,823

Ineligible Reservists 9,525

Total Non-Eligibles 102,348
TOTAL ACCESSIONS 367,815*

*(Note: The number of total enlisted VEAP eligibles used in this study is 264,912. Department of Defense (Office of the Secretary of Defense) Report 1391, "Monthly Report of Personnel Statistics," records 367,892 total accessions. Slight differences in the number of VEAP eligibles and total accessions are attributable to variations in personnel data files.)

The precise number of "eligible" officers was not available at the time of the study. However, most officers who entered active duty during CY 1977 were in Reserve officer training programs and therefore not eligible for VEAP benefits.
VEAP Participants, for the purpose of this study, include all persons who ever enrolled in VEAP during CY 1977. VEAP participants therefore include persons known to have separated from the Service or disenrolled from the program. (Duplicate records on persons who have disenrolled and then re-enrolled during CY 1977 are not included.)




3-5






26


3.3 Cornparison of Enlisted Program Participats=a
Eligible Enlisted Accessions

In order to study patterns of VEAP participation within the Department of Defense and the separate Services, comparisons were made between the population of enlisted eligibles and VEAP enrollees. Officers were not included In the present analysis for two reasons: complete data on officer eligibles

was not available at the time of the study, and the total num-, ber of officers enrolled In VEA? was 177, or less than one-half of one percent of all VEAP participants. "1VEAP participants," for the purposes of this study, therefore include enlisted servicemembers only.

VEAP enlisted participants were compared with eligible enlisted accessions according to month of entry, sex, race! ethnic group, age-at-entry,o educational attainment, mental category, marital and dependent status, and median family income in home of record. Tables 3.1 through 3.40 present the results of these data analyses.


Data Interpretation

Tables 3.1 through 3.40 present the numbers and percentages of eligibles and participants. Participation rates and indices also depict the statistical relationship between the two groups. The "'lEAP Participation Rate" is simply the ratio of participants to eligibles in each category. The





3-6







27


"VEAP Participation Index" is also a ratio, used here to measure and depict intra-group relationships. The participation index is derived from the ratio of "actual" and "expected" numbers of participants, according to the following formula:



Participation Index = Acua Peren ] 0 0
Expected Percent X10-10=


Percentage over or underrepresented.

Where "actual percent" is equal to the percentage
of participants and "expected percent" is equal to the percentage of eligibles in each category.

By dividing the "actual percent" by the "expected percent," a ratio is obtained which expresses the extent to which the percentage of participants is greater or less than the percentage of eligibles. Multiplication by 100 merely converts the ratio to a whole-number percentage. Subtraction of 100 creates a baseline index of 0 for comparison--i.e., a zero calculation results when the actual percent and expected percent are equal. In this case, there is "no difference" between participant and eligible groups. If the actual percent is greater than the expected percent, the result is a positive index. If the actual percent is less than the expected percent, the result is a negative index. For example, if the index is +20, then the number (or percent) of participants is 20 percent greater than the number (or percent) which would be expected under "normal" (i.e., where the participant and eligible populations are alike in all respects) conditions. If the index is -20, then


3-7







28


the number (or percent) of participants is 20 percent less than the expected number (or percent).

Several tables show "unknown" cases of participants, and these "unknown" cases should be taken into consideration when making comparisons or evaluating indices. In most cases, the percentage of unknown participants is reasonably small. Nevertheless, if these individuals were distributed among known groups of participants, each participation rate would be the same or slightly higher; participation indices would likewise remain constant or increase in a Dositive direction. Comparisons by Month of Entry

Tables 3.1 through 3.5 present monthly participation

rates for DoD and the separate Services. Year-end participation rates cannot be described as either "high" or "low,n since there is no acceptable basis for comparison and no experience with a similar program. The only possible criteria are the participation rates originally used in computing program costs. In 1976, the Congressional Budget Office, the Veterans Administration, and the Department of Defense prepared program cost estimates derived from projected participation rates. However, since the original projections of participation rates were highly speculative and not based on actual experience, they do not provide a meaningful standard for comparison.




3-8










In March, 1978, with one year of program experience, the Services estimated the following participation rates: Participation Rate (Percent of Eligibles) FY 1978 FY 1979
Army 20 20

Navy 20 20

Marine Corps 10 15

Air Force 1 1

The data presented here (along with several assumptions concerning the enrollment behavior of second and third year enlistees) indicate that current Service estimates of projected participation are low.

Participation during CY 1977 for all Services exceeded 40,000 enlisted enrollees, or 15.2 percent of all eligible enlisted accessions. However, it is apparent from the data presented in-Table 3.1 that the VEAP cumulative participation rate has been increasing with each successive month. The overall participation rate is also misleading, because of the great divergence between participation rates in the early and later months of the year. In fact, the participation rate during the last five months of Cy 1977 was over 21 percent. In view of the apparently slow start of the program, patterns of enrollment during the later months are probably more indicative of future enrollment trends. Applying trendline analysis to these data (which must be considered relatively scant), a projected participation rate of over 28 percent is found for the year ending December 1978.

3-9







30


Even if participation remains stable at around 15 percent of eligib le enlisted accessions each year, overall participation rates may be expected to increase as enlistees in their second and third years of service decide to enroll in VEAP. It is assumed that many eligible nonenrollees will decide to enroll as their salaries increase and their educational plans become more clearly defined. For example, in the Army's August 1977 quarterly Survey of Military Personnel, approximately 28 percent of eligible enlisted respondents who did not plan to enroll in VEAP said they could not afford the expense. Yet, over half of the eligible non-participants surveyed indicated that they would participate at some time in the future.

Participation rates for the separate Services also show continuing increases. With the exception of July, Army participation increased in every successive month (see Table 3.2). Navy data show the most dramatic changes in participation over the year (Table 3.3). The Navy participation rate during the first six months of 1977 was 5.9 percent; yet, during the last six months, Navy enlisted VEAP participants accounted for close to 30 percent of eligible enlistees. Marine Corps (Table 3.4) and Air Force (Table 3.5) enrollments likewise have consistently increased (with the exception of August) as a percentage of eligibles.

Army and Navy enrollments in VEAP account for over 92

percent of all enrollments during CY 1977. No explanation for



3-10







31


the relative differences between the Services (especially the Air Force) can be found in recent or past survey data on the interest expressed in educational benefits by members of the separate Services. No Service-wide attitude survey of VEAP eligibles has been conducted as yet, though questions on VEAP will be added to the next AFEES survey (an annual survey of military accessions administered at selected Armed Forces Examining and Entrance Stations). The next AFEES survey will be administered this summer or early fall, with results available In 1979.

Although there is still no explanation for differing patterns of enrollment, some observations have been made concerning possible reasons for non-participation. For example, all Services unanimously agree that one feature of the program, more than any other, keeps eligible servicemembers from enrolling: the minimum required monthly contribution of $50. A lower minimum monthly contribution, Army analysts observe, would allow many servicemembers who cannot afford the current $50 minimum to enroll in the program and perhaps accumulate enough savings to cover the costs of an associate degree program. On the other hand, raising the $75 upper limit for monthly contributions would give persons who postpone enrollment In VEAP the opportunity to still earn the maximum benefit.

Air Force administrators have noted that VEAP restrictions on in-Service use may also deter some individuals from enrolling



3-11







32



in the program. VEAP educational assistance cannot be received until the participant has completed his/her initial term of service, The military tuition program, on the other hand, allows. servicemembers to enroll in college level courses during the initial term of service and requires that the individual pay up to 25 percent of tuition costs (plus books and other fees). Many new servicemembers probably cannot afford to pay for both their share of the tuition costs and VEAP. Consequently, the decision to use tuition assistance (i.e., attend school while in Service) competes with participation in VEAP; and educationallymotivated servicemembers are forced to choose between VEAP and current In-Service education programs.

The Navy cites two other factors which may contribute to a lack of Interest in VEAP: (1) some servicemembers feel that they will get an education in and from the Service anyway, and

(2) a majority of the recruits are fresh out of high school, and additional education may not be a major factor in their early career decisions.

















3-12








'33



Table 3.1 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Month of Entrya

(January-December 1977)

All Services


Month Eligibles Participants VEAP VEAP VEAP Cuulative
of Etry Numer ercet bNumer Participation Participation Participation
of ntr Nmbe Prcet bNuberPecen D Index C Rate (Percent) Rate (Percent)

January 13233 5.0 6 0.0 -- 0.0 0.0
February 17655 6.7 769 1.9 -71.6 4.4 2.5
March 21028 7.9 2047 5.1 -35.4 9.7 5.4
April 19250 7.3 2448 6.1 -16.4 12.7 7.4
may 20079 7.6 2922 7.2 -5.3 14.6 9.0
June 24176 9.1 3040 7.5 -17.6 12.6 9.7
July 27949 10.5 3180 7.9 -24.8 11.4 10.0
August 29564 11.2 6048 15.0 +33.9 20.4 11.8
Septemb er 30176 11.4 5104 12.7 +11.4 16.9 12.6
October 23468 8.9 6164 15.3 +71.9 26.3 14.0
November 20675 7.8 5132 12.7 +62.8 24.8 14.9
December 17659 6.7* 3452 8.6 +28.4 19.5 15.2
Unknown 0 0.0 0 0.0 -- -- -TOTAL 264912 100 40312 100 --15.2 15.2



a For comparison purposes, month of entry for participants equals date of first
VEAP contribution. Note, however, that first contribution may not occur in
Month of Entry.
b Percentages may not add due to rounding. C See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and
Accession File, Army Finance and Accounting Center Master Allotment File, Navy Finance Center Master Block Listing, Marine Corps Main Blanket File,
Air Force Accounting and Finance Center Blanket Company Voucher.






3-13











Table 3.2 Comparison of Enlisted VEAP Participantsaand Eligible Enlisted Accessions by Month o~f Entry5

(January-December 1977)

Service: -Arm,


Mot Eligibles Participants VEAP VWA VEAP uultv

Entry Number Percent b Number Percent b Particto RatePcnt) RatPce~t)


January 6166 5.1 6 0.0 -- 0.10.
February 8609 7.2 741. 3.0 -58.3 8.6 5.1
March 9992 8.3 1935 7.9 -4.8 19.4 10.8
April 9437 7.9 2198 9.0 +13.9 23.3 14.3
May 10410 8.7 2079 8.5 -2.3 20.0 15.6
June 11696 9.8 1922 7.8 -20.4 16.4 15.8
July 13311 11.1 1300 5.3 -52.2 9.8 14.6
August 12596 10.5 3844 15.7 +49.5 30.5 17.1
September 13853 11.6 2795 11.4 -1.7 20.2 17.5
October 9381 7.8 3701 15.1 +93.6 39.5 1.
November 9042 7.5 2653 10.8 +44.0 29.3 20.2
December 5396 4.5 1335 5.4 +20.0 24.7 20.~4
Unknown 0 0.0 0 0.0 -TOTAL 119889 100 24509 100 -20.4 20.4




a For comparison purposes, month of entry for participants equals date of first VEAP contribution. Note, however, that first contribution may not occur in
month of entry.

bPercentages may not add due to rounding. C See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, and Army Finance and Accounting Center Master
Allotment File.








35



Table 3.3 Comparison of Enlisted VEA? Participants and Eligible Enlisted Accessions by Month of Entrya

(January-December 1977)


Service:, Navy


Month VEAP VEAP VEAP Cumulative
of Eligibles b Participants bParticipation Participation Participation
Entry Number Percent' Number Pecn Indexc Rate (Percent) Rate (Percent)

January .3904 6.1 0 0.0 --0.0
February 4172 6.5 28 0.2 -96.9 0.8 0.3
March 4551 7.1 55 0.4 -94.4 1.2 0.6
April, .3951 6.2 97 0.8 -87.1 2.4 1.1
May 3883 6.1 672 5.3 -13.1 17.3 4.2
June 5695. 8.9 661 5.2 -41.6 11.6 5.9
July 7142 11.1 1381 10.8 -2.7 19.3 8.7
August 8221 12.8 1958 15.4 +20.3 23.8 11.7
September 7965 12.4 1961 15.4 +24.2 24.6 13.8
October 5782 9.0 2096 16.4 +82.2 36.2 16.1
November 4756 7.4 2081 16.3 +120.3 43.8 18.3
December 4055 6.3 1763 13.8 +119.0 43.5 19.9
Unknown 0 0.0 0 0.0 --


TOTAL 64077 100 12753 100 -19.9 19.9



a For comparison purposes, month of entry for participants equals date of first
VEAP contribution. Note, however, that first contribution may not occur in
month of entry.
b Percentages may not add due to rounding. c See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Navy Finance Center Master Block Listing.





3-15








36



Table 3.4 Comparison of Enlisted 'LEAP Participants aand Eligible, Enlisted Accessions by Mot ofEnr

(January-December 1977)

Service: Marine Corps



Month libe Participaneiition Participation Participto
of Entry N~umber ?ercentb Number PercetA' Index Rate (Percent) Rate (ecn)

January 2076 6.4 0 0.0 ---0.0
February 2323 7.2 0 0.0 ---0.0
March 2579 8.0 57 2.2 -72.5 2.2 0.8
April 1965 6.1 148 5.8 -4.9 7.5 2.3
May 2049 6.3 165 6.4 +1.6 8.0 3.4
June 2645 8.2 430 16.7 +103.6 16.2 5.9
July 3396 10.5 454 17.7 +68.6 13.4 7.4
August 3912 12.1 207 8.1 -33.0 5.3 7.0
September 3593 11.1 293 11.4 +2.7 8.2 7.1
October 3274 10.1 267 10.4 +2.9 8.2 7.3
November 2200 6.8 300 11.7 +72.0 13.6 7.7
December 2398 7.4 247 9.6 +29.7 10.3 7.9
Unknown 0 0.0 0 0.0 -TOTAL 32410 100 2568 100 --7.9 7.9



a For comparison purposes, month of entry for participants equals date of first
VEAP contribution. Note, however, that first contribution may not occur in
Month of Entry.
b Percentages may not add due to rounding. c See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and
Accession File, and Marine Corps Main Blanket File.






3-16








37



Table 3.5 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Month of Entrya

(January-December 1977)

Service: Air Force


Mot lgilsPrtcpnsVEAP VEAP VEAP Cumulative
Monh ligbls Prtcipnt Participation Participation Participation
of Entry Number Percent bNumber Percenp Indexc Rate (Percent) Rate (Percent)


January 1087 2.2 0 0.0 --0.0
February 2551 5.3 0 0.0 -- 0.0
March 3906 8.0 0 0.0 -- -- 0.0
April 3897 8.0 5 1.0 -87.5 0.1 0.0
May 3737 7.7 6 1.2 -84.4 0.2 0.1
June 4140 8.5 27 5.6 -34.1 0.6 0.2
July 4100 8.4 45 9.3 +10.7 1.1 0.4
August 4835 10.0 39 8.1 -19.0 0.8 0.4
September 4765 9.8 55 11.4 +16.3 1.2 0.5
October 5031 10.4 100 20.7 +99.0 2.0 0.7
November 4677 9.6 98 20.3 +111.4 2.1 0.9
December 5810 12.0 107 22.2 +85.0 1.8 1.0
Unknown 0 0.0 0 0.0 -- -- -TOTAL 48536 100 482 100 --1.0 1.0



a For comparison purposes, month of entry for participants equals date of first VEAP contribution. Note, however, that first contribution may not occur in month of entry.
b Percentages may not add due to rounding. c See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Air Force Accounting and Finance Center
Blanket Company Voucher.





3-17


























31-262 0 78 4







38


Comparisons by Sex

Comparisons of enlisted YEA? participants and eligible enlisted accessions according to sex are presented in Tables

3.6 through 3.10. For all Services except the Air Force, participation among females is disproportionately low. For DoD as a whole (Table 3.6) the participation rate for females was 10.7 percent, compared to 15.4_ percent for males. However, the total rate of participation by female enlisted personnel is increasing.

































3-18








39



Table 3.6 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Sex

(January-December 1977)

All Services



Eliibls Prtiipats VEAP VEAP
Elig les Prti i ant Participation Participation Sex Number Percent Number Percent Indexb Rate (Percent)



Male 244442 92.3 37710 93.5 + 1.3 15.4

Female 20453 7.7 2195 5.4 -29.9 10.7

Unknown 17 0.0 407 1.0-




TOTAL 264912 100 40312 100 --15.2


a Percentages may not add due to rounding. b See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, Army Finance and Accounting Center Master
Allotment File, Navy Finance Center Master Block Listing, Marine
Corps Main Blanket File, and Air Force Accounting and Finance Center
Blanket Company Voucher.





















3-19







40



Table 3.7 Comparison of Enlisted VRAP Participants and Eligible Enlisted Accessions by Sex (January-December 1977)
Service: Army


Eli bles Participants VEAP VEAP
aParticipation Participatioa Sex Number Percent Number Percent Indexb Rate (Percent)



Male 111144 92.7 22802 93.0 +0.3 20.5

Female 8737 7.3 1442 5.9 -19.2 16.5

Unknown 8 0.0 265 1.1 -TOTAL 119889 100 24509 100 20.4



a Percentages may not add due to rounding b See text for description. SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Army Finance and Accounting Center Master
Allotment File.



















3-20








41



Table 3.8 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Sex (January-December 1977) Service: Navy

Eligibles VEAP VEAP

Participation Participation Sex Number Percent Number Percene Index' Rate (Percent)



Male 60255 94.0 11996 94.1 +0.1 19.9


Female 3816 6.0 626 4.9 -18.3 16.4


Unknown 6 0.0 131 1.0





TOTAL 64077 100 12753 100 19.9




a Percentages may not add due to rounding b See text for description. SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Navy Finance Center Master Block Listing.

















3-21







42



Table 3.9 Coparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Sex

(January-December 1977)

Service: Marine Corps



Eli ibles Partici ants VEAP
SN bersParticip tion Part
Sex Number Percent Number Percent Index Rate (Percent)


Male 31188 96.2 2496 97.2 + 1.0 8.0

Female 1219 3.8 61 2.4 36.8 5.0

Unknown 3 0.0 11 0.4 -TOTAL 32410 100 2568 100 -- 7.9


percentages may not add due to rounding. bSee text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, and Marine Corps Main Blanket File.























3-22







43



Table 3.10 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Sex (January-December 1977) Service: Air Force



Elig ibles Participants VEAP VEAP
-a Participt ion Participation
Sex Number Percent Number Percene Index Rate (Percent)



Male 41855 86.2 416 86.3 +0.1 1.0


Female 6681 13.8 66 13.7 -0.7 1.0


Unknown 0 0.0 0 0.0





TOTAL 48536 100 482 100 1.0




a Percentages may not add due to rounding. b See text for description. SOUREC: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Air Force Accounting and Finance Center
Blanket Company Voucher.

















3-23






44


Comparisons by Race/Ethnic Groups

Comparisons of enlisted VEAP participants and eligible enlisted accessions according to race/ethnic groups are presented In Tables 3.11 through 3.15. For all Services combined, the participation rate among the white/non-Spanish group is below the total participation rate; conversely, the levels of participation in minority categories are higher than "expected"? (Table 3.11). The separate Services generally follow this pattern--with the exception of' black enlistees

in the Marine Corps and in the Air Force.

Several early projections of participation assumed that few blacks and other minorities would initially enroll in VEAP because of the amount of required monthly contribution.. Furthermore,, it was felt that minorities and disadvantaged individuals (i.e., those most in need of educational support) would tend to be less "future-oriented" and not experienced enough to make realistic educational plans. The data presented

here do not support the hypothesis that VEAl' contributory requirements necessarily discriminate against enrollment by minorities.












3-24








45



Table 3.11 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Race/Ethnic Group (January-December 1977)
All Services


Eli ibles Participants VEAP VEAP
Race/Ethnic bbParticipation Participation
abb
Group Number Percent Number Percent Index Rate (Percent)


White/ 184752 69.7 24095 59.8 -14.2 13.0
Non Spanish

White/ 12312 4.6 2544 6.3 +37.0 20.7
Spanish

Black 58563 22.1 11288 28.0 +26.7 19.3


Other 9246 3.5 1949 4.8 +37.1 21.1

Unknown 39 0.0 436 1.1--TOTAL 264912 100 40312 100 --15.2



a Race/Ethnic Group determined by identifying Spanish surnames and combining surname information with Race.
b Percentages may not add due to rounding. c See text for description.



SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, Army Finance and Accounting Center Master Allotment
File, Navy Finance Center Master Block Listing, Marine Corps Main Blanket File, and Air Force Accounting and Finance Center Blanket
Company Voucher.











3-25







46



Table 3.12 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Race/Ethnic Group (January-December 1977)

Service; Army.



Eligibles Participants VEAP VA
Race/Ethnic b b Participation Particiption
Groupa Number Percent Number Percent Indexc Rate (Percent)


White/ 71916 60.0 12497 51.0 -15.0 17.4
Non-Spanish


Whaieh 6655 5.5 1837 7.5 +36.4 27.6


Black 37043 30.9 8702 35.5 +14.9 23.5

Other 4254 3.5 1182 4.8 +37.1 27.8

Unknown 21 0.0 291 1.2 -TOTAL 119889 100 24509 100 -20.4



aRace/Ethnic Group determined by identifying Spanish surnames and combining surname information with Race.
b Percentages may not add due to rounding. c See text for description.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Army Finance and Accounting Center Master
Allotment File.









3-26







47



Table 3.13 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Race/Ethnic Group (January-December 1977)
Service: Navy


VEAP VEAP
Race/Ethnic Eligibles Participants Participation Participation
Group Number Percen4 Number Percen Indexc Rate (Percent)

White/
Non-Spanish 51411 80.2 9548 74.9 -6.6 18.6


White/ 2186 3.4 502 3.9 +14.7 23.0
Spanish


Black 8020 12.5 2017 15.8 +26.4 25.1


Other 2451 3.8 552 4.3 +13.2 22.5

Unknown 9 0.0 134 1.1




TOTAL 64077 100 12753 100 19.9



a Race/Ethnic Group determined by identifying Spanish surnames and combining
surname information with Race.
b Percentages may not add due to rounding. c See text for description. SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Navy Finance Center Master Block Listing.












3-27







48



Table 3.14 Comparison of Enlisted VYEP Participants and Eligible Enlisted Accessions by Race/Ethnic Group (January-December 1977)
Series: Marine Corps

1-VEAP VEA'
Race/Ethnic Elig bles Partic pats Participation Participatio
Groupa Number PercenP Number Percent Indexc Rate (Pe


White/ 21961 67.8 1638 63.8 -5.9 74
Non-Spanish

White/ 1917 5.9 189 7.4 +25.4 9.8
Spanish


Black 7272 22.4 534 20.8 -7.1 7.3

Other 1255 3.9 196 7.6 +94.9 15.6

Unknown 5 0.0 11 0.4 -- -TOTAL 32410 100 2568 100 7.9



a Race/Ethnic Group determined by identifying Spanish surnames and combining surname information with Race.
b Percentages may not add due to rounding. c See text for description.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, and Marine Corps Main Blanket File.













3-28








49



Table 3.-15 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Race/Ethnic Group (January-December 1977)
Service: Air Force


Pat pns VEAP VEAP
Race/Ethnic Elig bles Patc nsParticipation Participation
Groups Number Percent Number Percen Indexc Rate (Percent)


White/ 39464 '81.3 412 85.5 +5.2 1.0
Non-Spanish

White/ 1554 3.2 16 3.3 +3.1 1.0
Spanish

Black 6228 12.8 35 7.3 -43.0 0.6


Other 1286 2.6 19 3.9 +50.0 1.5


Unknown 4 0.0 0 0.0--TOTAL 48536 100 482 100 --1.0



aRace/Ethnic Group determined by identifying Spanish surnames and combining surname information with Race.
b Percentages may not add due to rounding. C See text for description. SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Air Force Accounting and Finance Center Blanket
Company Voucher.












3-29






50,


Comparisons by Age

Comparisons of VEAP enlisted participants and eligible enlisted accessions by age are presented in Tables 3.16 through 3.20. Generally, VEAP participants are younger than eligibles. The mean age of participants is lower than the mean age of eligibles in each of the Services. The Army (Table 3.17) and Navy (Table 3.18) display similar patterns in rates of participation by age--with individuals over the age of 20 participating at lower than "expected" levels, and individuals between the ages of 17 and 20 years participating at higher than "expected" levels. Beyond the age of twenty, the disproportionately low rates of participation become increasingly divergent from the population of eligibles with each advancing year.

The Marine Corps (Table 3.19) and Air Force (Table 3.20) do not follow the same overall pattern. For example, both of these Services are underrepresentative in the 18-year old category--where the Army and Navy display greatest overrepresentative tendencies. However, as a general conclusion (based on these data), it would appear that VEAP is more attractive to the younger enlistee.










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51



Table 3.16 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Age at Entry (January-December 1977)

All Services



Eli ibles Parti ipants VEAP VEAP
a b b Participation Participation
Age at Entry Number Percent Number Percent Indexc Rate (Percent)


or7 es 43045 16.2 7267 18.0 +11.1 16.9

18 years 78417 29.6 13200 32.7 +10.5 16.8

19 years 49724 18.8 8027 19.9 + 5.8 16.1

20 years 27858 10.5 4289 10.6 _1.0 15.4

21 years 17847 6.7 2449 6.1 -9.0 13.7

22 years 13199 5.0 1686 4.2 -16.0 12.8

23 years 9829 3.7 1085 2.7 -27.0 11.0

24 years 6956 2.6 649 1.6 -38.5 9.3

25 years 18035 6.8 1253 3.1 -54.5 6.9
or more

Unknown 2 0.0 407 1.0-




TOTAL 264912 100 40312 100 --15.2



aAge at entry computed by using date of birth and date of file. Mean age of eligibles: 19.6 years. Mean age of participants: 19.1 years. b Percentages may not add due to rounding. C See text for description.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, Army Finance and Accounting Center Master Allotment
File, Navy Finance Center Master Block Listing, Marine Corps Main Blanket File, and Air Force Accounting and Finance Center Blanket
Company Voucher.
3-31







52



Table 3.17 Comparison of Enlisted W.AP Participants and Eligible Enlisted Accessions by Age at Entry (Jstuary-December 1977)

Service: Army



51j~ ibles Participants VEPVA
Participation Participation
Age at Entrya Number Percen? Number Percen Indexc Rate (Percent)

17 Years 20920 17.4 4365 17.8 + 2.3 20.9
or Less

18 Years 32212 26.9 7613 31.1 +15.6 23.6

19 Years 21623 18.0 4814 19.6 + 8.9 22.3

20 Years 12901 10.8 2708 11.0 + 1.8 21.0

21 Years 8375 7.0 1557 6.4 8.6 18.6

22 Years 6380 5.3 1120 4.6 -13.2 17.6

23 Years 4603 3.8 716 2.9 -23.7 15.6

24 Years 3306 2.8 450 1.8 -35.7 13.6

25 YMr 9569 8.0 901 3.7 -53.8 9.4
or Mtoro

Unknown 0 0.0 265 1.1 -- -TOTAL 119889 100 24509 100 -- 20.4


aAge at entry computed by using date of birth and date of file. Mean age of elieibloes 19.8 years. Mean age of participants: 19.2 years. bpsrcenta&es may not add due to rounding. CSee text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, and Army Finance and Accounting Center Master
Allotment File.



3-32







53



Table 3.18 Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Age at Entry (January-December 1977)

Service: Navy



Eligibles Participants VEAP EA?
a b Participation Participation
Age at Ent~ry Number Percent Number Percent Indexc Rate (Percent)


or es 10444 16.3 2249 17.6 + 8.0 21.5

10 Years 19565- 30.5 4631 32.3 +19.0 23.7

19 Years 11754 18.3 2551 20.0 + 9.3 21.7

20 Years 6130 9.6 1276 10.0 + 4.2 20.8

21 Years 3992 6.2 706 5.5 -11.3 17.7

22 Years 3060 4.8 472 3.7 -22.9 15.4

23 Years 2436 3.8 289 2.3 -39.5 1.1.9

24 Years 1745 2.7 155 1.2 -55.6 8.9

or Year 4950 7.7 293 2.3 -70.1 5.9

Unknown 1 0.0 11 0.4 -- -TOTAL 64077 100 12753 100 --19.9


a Ae at entry computed by using date of birth and date of file. Mean age of eligibles: 19.7 years. Mean age of participants: 18.9 years. b Percentages may not add due to rounding. c See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, and Navy Finance Center Master Block Listing.





3-33






















31-262 0 78 5







54



Table 3.19 Comaparison of Enlisted 'lEAP Participants and Eligible Enlisted Accessions by Age ait Entry (January-December 1977)

Service: Marine Corps



Eligibles Partici ants Patiiatio Patiiatio
Age at Enltrya Number Percent Nuber Percent Pricide io PatiPcipat )



or esrs 6867 21.2 603 23.5 +10.8 8.8

18 Years 10801 33.3 -816 31.8 4.5 7.6

19 Years 6286 19.4 556 21.7 +11.8 8.8

20 Years 3108 9.6 239 9.3 3.1 7.7

21 Years 1822 5.6 132 5.1 8.9 7.2

22 Years 1134 3.5 71 2.8 -20.0 6.3

23 Years 809 2.5 59 2.3 8.0 7.3

24 Years 528 1.6 32 1.2 -25.0 6.1

or Meare 1054 3.3 49 1.9 -42.4 4.6

Unknown 1 0.0 11 0.4




TOTAL j32410 100 2568 100 --7.9


aAge at entry computed by using date of birth anddate of file. Mean age of eligibles: 19.0 years. Mlean age of participants: 18.8 years. b Percentages may not add due to rounding. C See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, and Marine Corps Main Blanket File.




3-.34







55


Table 3.20 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Age at Entry (January-December 1977)

Service: Air Force


Eli ibles Participants VEAP VEAP
Participation Participation
a
Age at Entry Number PercenP Number PercenP Indexc Rate (Percent)


17 Years 4814 9.9 50 10.4 + 5.0 1.0
or Less

18 Years 15839 32.6 140 29.0 -11.0 0.9

19 Years 10061 20.7 106 22.0 + 6.3 1.0

20 Years 5719 11.8 66 13.7 +16.1 1.2

21 Years 3658 7.5 54 11.2 +49.3 1.5

22 Years 2625 5.4 23 4.8 -11.1 1.0

23 Years 1981 4.1 21 4.4 + 7.3 1.1

24 Years 1377 2.8 12 2.5 -10.7 0.9

25 Years
or Yre 2462 5.1 10 2.1 -58.8 0.4
or More

Unknown 0 0.0 0 0.0




TOTAL 48536 100 482 100 1.0


aAge at entry computed by using date of birth and date of file. Mean Age of eligibles: 19.6 years. Mean age of participants: 19.4 years. bPercentages may not add due to rounding. cSee text for description.

SOURCE: Data derived fromDoDMaster and Loss File, USAREC First Examination and Accession File, and Air Force Accounting and Finance Center Blanket
Company Voucher.




3-35







56


Comparison by Education

Comparisons of enlisted VEAP participants and eligible

enlisted accessions according to educational attainment appear in Tables 3.21 through 3.25. Because of variations in Service documentation, it was not possible to calculate the number of high school graduates who passed the general educational development (GED) high school equivalency test. However, a 'confidence limit or range of VEAP participants with GEDs was established for each Service and total DoD. These confidence limits appear along with the percentage of eligibles with GEDs in a footnote at the bottom of each respective table.

VEAP participants in DoD (Table 3.21) and the separate

Services are, in varying degrees, a cross section of eligible accessions. Most projections of VEAP enrollment have anticipated a disproportionately high rate of participation by individuals who completed high school, since it is generally assumed that most VEAP participants are college-bound. The fact that VEAP participants are a cross section of eligibles in educational attainment is therefore somewhat surprising. In fact,, non-high school graduates have a slightly higher participation rate than high-school graduates.










3-36








57



Table 3.21 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Education (January-December 1977)
All Services


VEAP VEAP
Eli ibe s ar ic a t Participation Participation
Education Number Perce Number Percene Indexb Rate (Percent)


1 Year High 100 42 13 241.
School or Less 100 42 13 241.

H2g School 26386 10.0 4253 10.6 +6.0 16.1
Hi-h Yearsl
High School 30758 11.6 5340 13.2 +13.8 17.4
High School

Diploma Grad- 184495 69.6 26489 65.7 -5.6 14.4
uate or GEDC

Some 8450 3.2 1608 4.0 +25.0 19.0
College

College Graduate or Post 3740 1.4 465 1.2 -14.3 12.4
Graduate

Unknown 3 0.0 422 1.0 -/TOTAL 264912 100 40312 100 15.2



a Percentages may not add due to rounding. b See text for description. C4.6 percent of total eligible enlisted accessions are GED recipients; between
2.5 and 5.9 percent of total participants are GED recipients.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, Army Finance and Accounting Center Master Allotment
File, Navy Finance Center Master Block Listing, Marine Corps Fain Blanket File, and Air Force Accounting and Finance Center Blanket Company Voucher.




3-37







58



Table 3.22 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Education (January-December 1977)

Service; Army


Elgbe Patirtnt VEAP ion
frU jans iPart icipatLion Patcp io
Education Number Percent a Number Percent8 Indexb Rat ercent)


1 Year High
School 8755 7.3 1440 5.9 -19.2 16.4
or Less
2 Years 130 1. 941. 701.
High School 130 1. 941. 70l,
3-4 Years 16779 14.0 3539 14.4 +2.9 21.1.
High choo1
High School
Diploma Grad- 72732 60.7 15006 61.2 +0.8 20.6
uate or GED

Colle 4424 3.7 993 4.1 +10.8 22.4

College Graduate or Post 1818 1.5 327 1.3 -13.3 1.
Graduate
Unknown 1 0.0 280 1.1



TOTAL 119889 100 24509 100 -20.4



a Percentages may not add due to rounding. b See text for description. b 4.4 percent of Army eligible enlisted accessions are GED recipients; between 2.4 and 5.5 percent of Army participants are GED recipients.

SOURCE: Data derived from DoD Master and Loss File, USAREC First ExaminationR
and Accession File, and Army Finance and Accounting Center Master
Allotment File.





3-38








59



Table 3%23 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Education (January-December 1977) Service: Navy



Eligibles Participants VEAP VEA'
Participation Participation Education Number Percenta Number Percenta Inde~P Rate (Percent)


1 Year High 1851 2.9 267 2.1 -27.6 14.4
School or Less

2 Years 560 889674-5916.8
High School 53 4 1.

3-4 Years750 1.141 1.-.796
High School 750 1.141 1.-.796

High School
Diploma Grad- 47075 73.5 9425 73.9 +0.5 20.0
uate or GED c

Some College 1251 1.9 388 3.0 +57.9 31.0

College Graduate or Post 728 1.1 115 0.9 -18.2 15.8
Graduate

Unknown 2 0.0 131 1.0



TOTAL 64077 100 12753 100 -19.9



a Percentages may not add due to rounding. b See text for description. C5.4 percent of Navy eligible enlisted accessions are GED recipients; between 2.9 and 6.5 percent of Navy participants are GED recipients. SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Navy Finance Center Master Block Listing.



3-39








60



Table J.24 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Education

(January-December 1977)
Service: Marine Corps


Eli ibles Participants VEAP VEAP
Part icip %t ion Partici~pation Education Number Percent Number Percene Index Rate (Percent)



1 Year High 4? 14 2 2. .
School or Less 6 14211 -1.60

2 Years 55 65 -8 49-. .
High School 55 65 -8 49-. .

3-4 Years
High School 4107 12.7 306 11.9 -6.3 7.4

High School
Diploma Grad- 20932 64.6 1633 63.6 -1.5 7.8
uate or GEDc

Some 1406 4.3 198 7.7 +79.1 14.1
College

College Graduate or Post 139 0.4 9 0.4 0.0 6.5
Graduate

Unknown 0 0.0 11 0.4



TOTAL 32410 100 2568 100 --7.9



a Percentages may not add due to rounding. b See text for description.

4 .3 percent of Marine Corps eligible enlisted accessions are GED recipients; between 3.0 and 7.4 percent of Marine Corps participants are GED recipients.


SOURCE: Data derived from DaD Master and Loss File, USAREC First Examination
and Accession File, and Marine Corps Main Blanket File.




3-40







61



Table 3.25 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Education (January-December,1977) Service: Air Force


Eli ibles Participants VEAP VEAP
a a Participation Participation
Education Number Percent Number Percent Indexb Rate (Percent)


1 Year High 0.0 0 0.0
School or Less
2 Years 17 0.0 0 0.0
High School
3-4 Years
Hig Schoo 2332 4.8 14 2.9 -39.6 0.6
High School
High School
Diploma Grad- 43756 90.2 425 88.2 -2.2 0.9
uate or GED

Some College 1369 2.8 29 6.0 +114.3 2.1

College Graduate or Post 1055 2.2 14 2.9 +31.8 1.3
Graduate

Unknown 0 0.0 0 0.0



TOTAL 48536 100 482 100 1.0



a Percentages may not add due to rounding. b See text for description. c 4.6 percent of Air Force eligible enlisted accessions are GED recipients; between 1.2 and 4.6 percent of Air Force participants are GED recipients.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Air Force Accounting and Finance Center Blanket
Company Voucher.






3-41






62


Comparisons by Mental Category

All applicants for enlistment are tested for their mental aptitude. Mental aptitude is determined from the combined scores of three subtests on the Armed Services Vocational Aptitude Battery (ASVAB). These scores are then used to classify applicants into one of five so-termed mental categories (Category I through Category V). Those in Categories I and IT are above average in aptitude; those in Category III are average; those in Category IV are below average, but still eligible for enlistment; and those in Category V are at the very bottom of the scale, and not eligible to join the Services. Mental categories III and IV are also subdivided into finer classifications.

ASVAB percentile scores for the mental categories are distributed in the following manner:


Mental Category Percentile Score

I 93-100
II 65-92
IIIa 50-64
IIlo 31-49
IVa 21-30
IVb 16-20
IVc 10-15
V 0-9

Manpower objectives focus Drimarily on the upper 50th percentile, or mental categories I through IIJa. For the purposes of this comparison, therefore, Categories IIIa and above are defined as the "quality" level of mental aptitude.


3-42







63


Tables 3.26 through 3.30 present mental category comparisons of eligible enlisted accessions and enlisted VEAP participants. For DoD as a whole (Table 3.26), servicemembers who scored below the 50th percentile on the ASVAB (Categories Tub and below) participate at a slightly higher rate than those who scored In the upper 50th percentile (Categories Il~a and above).

The separate Services generally display no distinct pattern with respect to mental categories. In the Army (Table 3.27), for example, the total percentage of eligibles at the "quality" level is approximately equal to the percentage of participants at the "quality" level. In the Marine Corps (Table 3.29) and the Air Force (Table 3.30), qualityt" level servicemembers are actually overrepresented among VEAP participants. Navy results (Table 3.28) are somewhat misleading, due to the high number of missing cases among eligibles., However, assuming that missing cases comprise a random sample of eligibles, "quality" level servicemembers are found to be underrepresented among VEAP participants in the Navy.

During the first six months of 1977, the differences

in qualityt" between eligibles and participants were noticeably greater. Although "quality" individuals are still slightly underrepresented among VEAP participants, this appears to be changing.




3-143







64



Table 3.26 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Mental Category (January-December 1977)
All Services


Eligiles Prticiants VEAP VA
Mental El be atc nsParticipat ion Participation
Category Number ?ercene Number Percene Indexb Rate (Peret



1 13646 5.1 2084 5.2 +2.0 15.3

11 68925 26.0 9556 23.7 -8.8 13.9

Ila 69085 26.1 934-9 23.2 -11.1 13.5

Illb 91853 34.7 15469 38.4 +10.7 16.8

Iva 9835 3.7 2051 5.1 +37.8 20.8

IVb 4566 1.7 986 2.4 +41.2 21.6

IVc 640 0.2 125 0.3 +50.0 19.5

Unknown 6362 2.4 692 1.7





TOTAL 264912 100 40312 100 --15.2



a Percentages may not add due to rounding. b See text for description.



SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, Army Finance and Accounting Center Master Allotment File, Navy Finance Center Master Block Listing, Marine Corps
Main Blanket File, and Air Force Accounting and finance Center Blanket
Company Voucher.









3-44












Table 3.27 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Mental Category (January-December 1977)


Service: Ary


VEAP VEAP
Mental Eligibles ParticipantsVAPVP
Mental a a Participgtion Participation
Category Number Percent Number Percenta Index Rate (Percent)


I 4477 3.7 1045 4.3 +16.2 23.3

II 22963 19.2 4833 19.7 +2.6 21.0

Ilia 24698 20.6 4708 19.2 -6.8 19.1

IlIb 54146 45.2 10833 44.2 -2.2 20.0

IVa 6919 5.8 1621 6.6 +13.8 23.4

Ib 4411 3.7 974 4.0 +8.1 22.1

IVc 426 0.4 93 0.4 0.0 21.8

Unknown 1849 1.5 402 1.6 ....




TOTAL 119889 100 24509 100 -- 20.4



a Percentages may not add due to rounding. b See text for description.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Army Finance and Accounting Center Master
Allotment File.












3-45







66



Table 3.28 Comparison of Enlisted VEA2P Participants and Eligible Enlisted Accessions by Mental Category (January-December 1977)
Service: Navy


Mental Eligibles Participants VEAP VAP
Mental Participgtion Particiption
Category Number Percent Number Percene Index Rate (Pe )



I 4351 6.8 811 6.4 -5.9 18.6

II 18852 29.4 3767 29.5 +0.3 20.0

lia 18762 29.3 3869 29.9 +2.0 20.3

IIb 17806 27.8 3780 29.6 +6.5 21.2

IVa 1473 2.3 317 2.5 +8.7 21.5

1Vb 65 0.1 7 0.1 0.0 10.8

IVc 93 0.1 26 0.2 +100.0 28.0

Unknown 2675 4.2 236 1.8




TOTAL 64077 100 12753 100 19.9



a Percentages may not add due to rounding. b See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Navy Finance Center Master Block Listing.












3-46








67



Table 3.29 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Mental Category (January-December 1977)
Service: Marine Corps

VEAP VEAP
Eli ibles Participants VAPEP
Mental a a ParticLpftion Participation
Category Number Percent Number Percent Index Rate (Percent)



I 1233 3.8 151 5.9 +55.3 12.2

II 7765 24.0 711 27.7 +15.4 9.2

lIla 9308 28.7 712 27.7 -3.5 7.6

lllb 11627 35.9 817 31.8 -11.4 7.0

IVa 1367 4,.2 113 4.4 +4.8 8.3

IVb 74 0.2 5 0.2 0.0 6.8

IVc 92 0.3 5 0.2 -33.3 5.4

Unknown 944 2.9 54 2.1 -TOTAL 32410 100 2568 100 -- 7.9



a Percentages may not add due to rounding.
b
See text for description.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Marine Corps Main Blanket File.












3-47











Table 3.30 Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Mental Category (January-December 1977)
Service: Air Force


VEAP VA
Eli vibles I Partici ants EYA
Mental I' ts Participation Participation
Category Number Percen Number Percend Rate (P


I 3585 7.4 77 16.0 +116.2 2.1

II 19345 39.9 245 50.8 +27.3 1.3

Ila 16317 33.6 120 24.9 -25.9 0.7

IIIb 8274 17.0 39 8.1 -52.4 0.5

IVa 76 0.2 0 0.0

IVb 16 0 0 0 0.0 ....

IVc 29 0.1 1 0.2 +100.0 3.4

Unknown 894 1.8 0 0.0 -TOTAL 48536 100 482 100 1.0



a Percentages may not add due to rounding. b See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Air Force Accounting and Finance Center
Blanket Company Voucher.











3-48







69


Comparisons by Marital Status and Dependents.

Tables 3.31 through 3.35 present comparisons of enlisted VEAP Darticipants and eligible enlisted accessions by marital status and dependents. These demographic characteristics were grouped together for two reasons: (1) they are both intended to reveal patterns or participation among individuals who have disparate abilities to set aside contributory funds; and, (2) there is a strong correlation between marital status and the declaration of dependents.

Each Service follows a similar pattern of participation: married enlistees participate at rates well below the total participation rate, and the likelihood of yEA? participation diminishes as the number of dependents increases.

There is a large group of unknown cases among VEAP participants in the data on dependents. Assuming that unknown cases represent a random sample of participants, the relative differences between categories of dependents would remain the s ame.




































31-262 0 78 6








70



Table 3.31 Comparison of Enlisted VEAP Participanutsa nd Eligible
Enlisted Accessions by Marital Status and Dependents (January-December 1977)
All Services


El lPriVEAP VFAP
El ibes Pa 1c antrs Participation Participation
Nuniber ecn Number Percent IndexD Rate (Percent)
Marital
Status

Single 234719 88.6 38184 94,7 +6.9 16.3)

Married 30175 11.4 17.08 4.2 -63.2 5.7

Unknown 18 0.0 420 1.0 -TOTAL 264912 100 40312 100 --15.2




Dependents C

None 234068 88.4 35423 87.9 -0.6 15.1

One 13990 5.3 1257 3.1 -41.5 9.0

TWO 11667 4.4 374 0.9 -79.5 3.2

Three or More 5169 1.9 77 0.2 -89.5 1.5

Unknown 18 0.0 3181 7.9--TOTAL 264912 100 40312 100 --15.2



a Percentages may not add due to rounding.
b See text for description.
C 0.7 percent of single enlisted accessions reported one or more dependents;
0.5 percent of married enlisted accessions reported no dependents.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and
Accession File, Army Finance and Accounting Center Master Allotment File, Navy Finance Center Master Block Listing, Marine Corps Main Blanket File,
and Air Force Accounting and Finance Center Blanket Company Voucher.

3-50







71



Table 3.32 Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Marital Status and Dependents (January-December 1977)

Service: Army



Eli ibles Participants VEAP VEAP
z Participation Participation

MrtlNumber Percent' Number Percene Indexb Rate (Percent)

Status

Single 103045 86.0 22753 92.8 +7.9 22.1

Married 16837 14.0 1480 6.0 -57.1 8.8

Unknown 7 0.0 276 1.0 -TOTAL 119889 100 24509 100 20.4



Dependents c

None 102948 85.9 20850 85.1 -0.9 20.2

One 6688 5.6 939 3.8 -32.1 14.0

TWO 6823 5.7 340 1.4 -75.4 5.0

Three or 3423 2.9 73 0.3 -89.7 2.1
More
Unknown 7 0.0 2307 9.4-



TOTAL 119889 100 24509 100 --20.4



aPercentages may not add due to rounding. b See text for description.
c 0.6 percent of single enlisted accessions reported one or more dependents;
0.5 percent of married enlisted accessions reported no dependents.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Army Finance and Accounting Center Master
Allotment File.

3-51







72



Table 3.33 Coparison of Enlisted VEAP Participants anid Eligible
Enlisted Accessions by Maia ttsadDpnet

(January-Dlecember 1977)
Service: Navy



Elig bless Participants VEAP EA
Numbr Pecen Numbr PecenParticipation Participation Numer ercne umbr PrceO Inde,J Rate (Percnt)

Marital
Status

Single 59006 92.1 12472 97.8 +6.2 21.1

Married 5064 7.9 -150 1.2 -84.8 3.0

Unknown 7 0.0 131 1.0 -- -TOTAL 64077 100 12753 100 --19.9



Dependents

None 58430 91.2 11736 92.0 +0.9 20.1

One 2551 4.0 247 1.9 -52.5 9.7

TWO 2314 3.6 23 0.2 -94.4 1.0

Three or 775 1.2 2 0.0 0.2
More
Unknown 7 0.0 745 5.8



TOTAL 64077 100 12753 100 --19.9



a Percentages may not add due to rounding.
b See text for description.
C 1.1 percent of single enlisted accessions reported one or more dependents;
0.2 percent of married enlisted accessions reported no dependents.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Navy Finance Center Master Block Listing.


3-52







73



Table 3.34 Comparison of Enlisted VEA' Participants and Eligible
Enlisted Accessions by Marital Status and Dependents (January-December 1977)

Service: Marine Corps


Eliibls artciant 'EAP VEAP
Eli blesPari ipntsParticipation Participation Number Percenat Number Percene IndexI Rate (Percent)
Marital
Status

Single 30628 94.5 2495 97.2 +2.8 8.1

Married 1778 5.5 60 2.3 -58.2 3.4

Unknown 4 0.0 13 0.5 --



TOTAL 32410 100 2568 100 --7.9



Dependentsc

None, 30594 94.4 2380 92.7 -1.8 7.8

One 1341 4.1 60 2.3 -43.9 4.5

TWO 377 1.2 6 0.2 -83.3 1.6

Three or Mor 94 0.3 1 0.0 -- 1. 1

Unknown 4 0.0 121 4.7 --



TOTAL 32410 100 2568 100 --7.9



aPercentages may not add due to rounding. b See text for description.
C 0.4 percent of single enlisted accessions reported one or more dependents;
0.3 percent of married enlisted accessions reported no dependents.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Marine Corps Main Blanket File.





3-53







74



Table 3.35 Comparison of Enlisted VEAP Participants and Eligible
Enlisted Accessions by Marital Status and Dependents (January-December 1977)
Service: Air Force


Elgils atiians VEA' YEA?
El~i ibles Parti iantS Participat ion Participation
Number IPercene Number ?ercene Index Rate (Percet)

Marital
Status

Single 42040 86.6 464 96.3 +11.2 1.1

Married 6496 13.4 -18 3.7 -72.4 0.3

Unknown 0 0.0 0 0.0 ....


TOTAL 48536 100 482 100 -- 1.0

-I fF


Dependentsc

None 42096 86.7 457 94.8 +9.3 1.1

One 3410 7.0 11 2.3 -67.1 0.3

Two 2153 4.4 5 1.0 -77.3 0.2

Three or 877 1.8 1 0.2 -88.9 0.1
More

Unknown 0 0.0 8 1.7 -TOTAL 48536 100 482 100 1.0



a Percentages may not add due to rounding. b See text for description.
c 0.9 percent of single enlisted accessions reported one or more dependents;
1.0 percent of married enlisted accessions reported no dependents.


SOUREC: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Air Force Accounting and Finance Center
Blanket Company Voucher.
3-54






75


Comparisons by Median Family Income In Home of Record
(1970 Zip Code Area)

The comparisons of median family income in home of record are presented in Tables 3.36 through 3.40. These data were derived from the 1970 U.S. Census of Population by using postal Zip code identifiers. Median family incomes are for the 1970 Zip code areas used in the Census, and represent earnings for the 1969 calendar year. The distributions were derived for the purposes of conducting comparative analyses between eligibles and participants. Since the income figures are only used for comparison,, they have not been scaled to current dollar levels.

The data were extracted from the 1970 Census because this source provided the only available measure of family income. It Is assumed that these data provide a reasonably good measure of the environment in which the residents of the Zip code area live. Although there will be some variance of incomes within Zip code areas, it is further assumed that high income families tend to live in ZIP areas with high median family incomes, low income families in Zip areas with low median famIly incomes, and so on.

The data on median family income in home of record are consistent throughout the Services. In each Service, lower income eligibles are slightly underrepresented among participants, while middle and upper income eligibles are slightly over represented.


3-55











Table 3.36. Comparison of Enlisted VEAP Participants and Eligible Enlisteda
Accessions by Median Family Income in Hoime of Record (1970 Zii, Code Area)

(January-December 1977)

All Services,

Median Family EPVA
Income in Home Eli ibles Participants Patiiatio Patiiato
of Record (1970 Nubb Pecnbubr ee Pricpto a cpto
,Zip Code Area) Nme Prcn NubrPercnt Index c RateI(Pret

Under
$6,000 16052 6.0 2425 6.0 0.0 15.1

$6,000 1
$7,999 60562 22.9 8850 22.0 -3.9 14.6

$8,000
$9,999 86204 32.5 12637 31.3 -3.7 14.6

$10,000
$11,999 68216 25.8, 10635. 26.4 +2.3 15.6

$12,000
$14,999 29261 '11.0 4922 12.2 +10.9 16.8

$15,000
$24,999 4549 1.7 .832 2.1. +23.5 18.3

Over
$25,000 68 0.0 11 0.0' 16.2


TOTAL 264912 100 40312 100 --15.2


aMedian Family Income is for CY 1969, derived from the 1970 U.S. Census of
Population Zip Code area distribution. Merging the participant and eligible files with the Census data resulted in a large number of cases that could not
be matched by Zip Code (2.8% for eligibles and 10% for participants). To
reduce the effect of this disparity, unidentified cases were distributed
among the income categories on a proportional basis.
b Percentages may not add due to rounding.
CSetext for description.
SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, Army Finance and Accounting Center Master Allotment File, Navy Finance Center Master Block Listing, Marine Corps
Main Blanket File, and Air Force Accounting and Finance Center Blanket
Company Voucher. 35








77


Table 3.37. Comparison of Enlisted VEAP Participants and Eligible Enlisted
Accessions by Median Family Income in Home of Record (1970 Zip Code Area)
(January-December 1977)
Service: Army

Median Family VEAP VEAP
Income in Home Eli ibles Participants Participation Participation
of Record (1970 Number Percen Number Percent Indexc Rate (Percent)
.Zip Code Area)

Under
$6,000 8957 7.5 1725 7.0 -6.7 19.2

$6,000
$7,999 20153 25.2 5925 24.2 -4.0 .19.6

$8,000
$9,999 39331 32.8 7800 31.8 -3.0 19.8

$10,000
$11,999 28307 23.6 6014 24.5 +3.8 21.2

$12,000
$14,999 11182 9.3. 2600 10.6 +14.0 23.2

$15,000
$24,999 1650 1.4 436 1.8 +28.6 .26.4

Over
$25,000 28 0.0 9 0.0 32.1






TOTAL 119889 100 24509 100 20.4


aMedian Family Income is for CY 1969, derived from the 1970 U.S. Census of
Population Zip Code area distribution. Merging the participant and eligible files with the Census data resulted in a large number of cases that could not
be matched by Zip Code (2.8% for eligibles and 10% for participants). To reduce the effect of this disparity, unidentified cases were distributed
among the income categories on a proportional basis.
bPercentages may not add due to rounding.
CSee text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Army Finance and Accounting Center Master
Allotment File
3-57








78



Table 3.38. Comparison of Enlisted VEAP Participants and Eligible Enlse Accessions by Median Family Income in Home of Record (1970 Zip CodeAra (January-December 1977)
Service: Navy

Median Family EPVA
Income in Home EliR bles Parti ipatits VA atcp4
.ParticipationPatcpio
ofp Ce orea(97 Number Percent Number Percent Index Rate (Percet

Under
$6,000 2928 4.6 550 4., -6.5 1.

$6,000
$7,999 13017 20.3 23f79 18.6 -8.4 18.3

$8,000
$9,999 20426 31.9 3888 30.5 -4.4 19.0

$10,000
$11,999 17902 27.9 3727 29.2 +4.6 20.8

$12,000
$14,999 8418 13.1 1886 14.8 +13.0 22.4

$15,000
$24,999 1369 2.1 323 25 +19.0 23.6

Over
$25,000 17 0.0 .0 0.0--TOTAL 64007 100 12753 100 --19.9


aMedian Family Income is for CY 1969, derived from the 1970 U.S. Census of Population Zip Code area distribution. Merging the participant and eligible files with the Census data resulted in a large number of cases that could not
be matched by Zip Code (2.8% for eligibles and 10% for participants). To
reduce the effect of this disparity, unidentified cases were distributed
among the income categories on a proportional basis. b Percentages may not add due to rounding. cSee text for description.
SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Navy Finance Center Master Block Listing.

3-58







79



Table 3.39. Comparison of Enlisted VEAP Participants and Eligible Enlisted
Accessions by Median Family Income in Home of Record (1970 Zip Code Area) (January-December.1977)
Service: Marine Corps

Median Family VEAP VEAP
Income in Home Eli ibles Participants Participation Participation
of Record (1970 Number Percen Number Percent Indexc Rate (Percent)
-Zip Code Area) _______ ___ ____________Under
$6,000 1874 5.8 147 5.7 -1.7 7.8

$6,000
$7,999 7014 21.6 498 19.4 -10.2 7.1

$8,000
$9,999 10556 32.6 792 30.8 -5.5 7.5

$10,000
$11,999 8839 27.3 741 28.8 +5.5 .8.4

$12,000
$14,999 2576 11.0 336 13.1 +19.1 9.4

$15,000
$24,999 541 1.7 52 2.0 +17.6 9.6

Over
$25,000 10 0.0 2 0.0 20.0






TOTAL 32410 100 2568 100 7.9



aMedian Family Income is for CY 1969, derived from the 1970 U.S. Census of
Population Zip Code area distribution. Merging the participant and eligible files with the Census data resulted in a large number of cases that could not
be matched by Zip Code (2.8% for eligibles and 10% for participants). To reduce the effect of this disparity, unidentified cases were distributed
among the income categories on a proportional basis.
percentages may not add due to rounding.
CSee text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination
and Accession File, and Marine Corps Main Blanket File.

3-59







80



Table 3.40. Comparison of Enlisted VEAP Participants and Eligible Enlisted Accessions by Median Family Income in Home of Record (1970 Zip Code Area)a
(January-December .1977)
Service: Air Force

Median Family Ei lsPr VEAP
Income in Home iilePatiatsParticipation Participa~tio
of Record (1970 Number Percen Number PercenO Indexc Rate (Percet
--Zp CA. Area)

Under
$6,000 2322 4.8 12 2.4 -50.0 0.5

$6,000
$7,999 10423 21.5 -67 13.9 -35.3 0.6

$8,000
$9,999 15895 32.7 160 33.2 +1.5 .1.0

$10,000
$11,999 12852 26.5 138 28.6 +7.9 1.1

$12,000
$14,999 6050 12.5 86 17.8 +42.4 1.4

$15,000
$24,999 982 2.0 19 4.0 +100.0, 1.9

Over
$25,000 12 0.0 0 0.0--TOTAL 49536 100 482 100 --1.0


5l~edian Family Income is for C! 1969, derived from the 1970 U.S. Census of Population Zip Code area distribution. Merging the participant and eligible
files with the Census data resulted in a large number of cases that could not
be matched by Zip Code (2.8% for eligibles and 10% for participants). To
reduce the effect of this disparity, unidentified cases were distributed among the income categories on a proportional basis. brPercentages may not add due to rounding. C See text for description.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, and Air Force Accounting and Finance Center
Blanket Company Voucher.







81



3.3 Participation Frequencies for Selected Enrollment Characteristics

The tables in this section present frequency distributions broken out by Service. The characteristics depicted are month of enrollment, officer and enlisted participation, amount of monthly contribution,, and month of enrollment. The data cover 'all participants, including both officers and enlisted servicemembers. The month of enrollment table is presented here in order to show total VEAP enrollment by Service of accession. However, as already stated, officers comprise a very small percentage of program participants (less than one half of one percent). Therefore,, enrollment figures do not shift markedly from those previously presented in Tables 3.1 through 3.5.

9 Month of Enrollment (Table 3.41)

As pointed out in the previous section, monthly enrollments in VEAP generally increased throughout the year, reaching a peak during the month of October. The slow growth during the first six months of the program most likely reflects the lag in information reaching the prospective recruit population. The dip in November enrollments (almost entirely attributable to a fall-off In Army participation) and December are, in large part, related to the seasonal decrease in enlistments which commonly occurs at that time of year. Overall, monthly participation trends appear to be stabilizing.







82



Table 3.41. VEAP Participants: Frequency Distribution by Military Service and Month of Enrollment (January-December 1977)



Frequency Distribution8
MonthMilitary Service
of AmNayMarine Carps Air ForceToa
Enrollment Number Percent Number Percent Number Percent Number Percent ilumberiperct

January 6 0.0 0 0.0 0 0.0 0 0.0 6 0,
February 741 3.0 28 0.2 0 0.0 0 0.0 769 1.9
March 1937 7.9 55 -0.4 57 2.2 0 0.0 2049 1.9
April 2201 8.9 97 0.8 148 5.7 5 1.0 2451 6.1
May 2091 8.5 672 5.3 165 6.4 7 1.4 2.935 7.2
June 1930 7.8 661 5.2 431 16.7 28 5.5 3050 7.5
July 1309 5.3 1382 10.8 455 17.7 53 10.5 3199 7.9
August 3856 15.7 1959 15.3 207 8.0 40 7.9 6062 15.0
September 2813 11.4 1966 15.4 293 11.4 56 11.0 5128 12.7
October 3726 15.1 2105 16.5 267 10.4 103 20.3 6201 15.3
November 2671 10.8 2088 16.3 300 11.6 106 20.9 5165 12.8
December 1345 5.5 1767 13.8 253 9.8 109 21.5 3474 8.6


TOTAL 24626 100 12780 100 2576 100 507 100 40489 100



a
Percentages may not add due to rounding.

SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, Army Finance and Accounting Center Master Allotment
File, Navy Finance Center Master Block Listing, Marine Corps Main Blanket
File, Air Force Accounting and Finance Center Blanket Company Voucher.












3-62







83



e Officer and Enlisted Participation (Table 3.42)

This table is included here primarily because it shows

officer participation by Service. Although available, paygrade breakouts are not presented because, at this point in the program, they contain relatively little information of value.


e Amount of Monthly Contribution (Table 3-43)

The distribution of participants according to the amount of monthly contribution is clearly bimodal, with the peaks being at the minimum and maximum contributory levels. The $50 minimum contribution continues to be the most popular option among VEAP participants. Six out of ten enrollees elect to contribute at the lower limit. This general trend holds true for each Service except the Air Force. Only four out of ten Air Force enrollees contribute at the minimum level, while nearly half contribute at the maximum ($75) level. For the other Services., only about a quarter of the enrollees participate at the maximum level. The mean monthly contribution for all Services is $58.33.

The results of a study of initial participation conducted last year by the Human Resources Res6arch Organization (HumRRO) revealed that VEAP would probably attract more servicemembers if the minimum contribution were reduced. In that study, HumRRO researchers found that: 1) market surveys of military-age youth showed that a $25 monthly contribution was preferred by the greatest number of prospective participants; 2) contributory requirements may discourage participation by those with




3-63







84



Table 3. 43 VEA? Participants: Frequency Distribution by
Military Service for Officer and Enlisted Personnel (January-December 1977)



Frequency Distribution *
Military Service
Army Marine Corp. Air ForceToa
Number Percent Number Percent NumberiPercent NumberiFerce.nt Nmelec



Enlisted
Personnel 24509 99.5 12753 99.8 2568 99.7 482 95.1 40312 99.6

Officers 117 0.4 27 0.2 8 0.3 25 4.9 177 0.4







Total 24626 100 12780 100 2576 100 507 40489 0



*Percentages may not add due to rounding. SOURCE: Data derived from DoD Master and Loss File. USAREC First Examination a
Accession File, Army Finance and Accounting Center Master Allotment File, Navy Finance Center Master Block Listing, Marine Corps Main Blanket File,
Air Force Accounting and Finanace Center Blanket Company Voucher.


















3-64








85



Table 3.42. VEAP Participants: Frequency Distribution by
Military Service and Amount of Monthly Contribution (January-December 1977)


Frequency Distribution8a

Amount of Military Service
Monthly b Ary Navy Marine Corps Air Force Total
Contribution D NumberlPercent Number Percent Number Percent Number Percent Number Percent


50 Dollars 15268 62.0 7290 57.0 1646 63.9 203 40.0 24407 60.3

55 Dollars 393 1.6 236 1.8 4 0.2 5 1.0 638 1.6

60 Dollars 904 3.7 1642 12.8 291 11.3 27 5.3 2864 7.1

65 Dollars 390 1.6 403 3.2 7 0.3 15 3.0 815 2.0

70 Dollars 109 0.4 92 0.7 2 0.1 9 1.8 2.2 0.5

75 Dollars 7562 30.7 3117 24.4 626 24.3 248 48.9 11553 28.5




TOTALb 24626 100 12780 100 2576 100 507 100 40488 100



a Percentages may not add due to rounding. b Mean Monthly Contributions are as follows: Army, $58.45; Navy, $58.09; Marine Corps, $57.27; Air Force, $63.61; Total VEAP Participants, $58.33.


SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, Army Finance and Accounting Center Master Allotment File, Navy Finance Center Master Block Listing, Marine Corps Main Blanket File, Air Force Accounting and Finance Center Blanket
Company Voucher.














3-65























31-262 0 78 7







86


a lower "capacity to contribute"; and 3) there may be a large number of prospective participants who are willing to participate if the contribution is reduced to $25, or who are waiting until they can afford to participate at the current minimum level of $50 a month.

Month of Disenrollment (Table 3.44)

Without the benefit of experience from similar participatory programs, there is no way of determining whether drop-out rates are high or low. The Army has the highest cumulative drop-out rate for the 12-month period (11.9 percent), and the Air Force has the lowest (3.7 percent). Observe that in the last four months for which data are presented, the drop-out rate stabilized across Services at about 1.4 percent per month.

It should be noted that the vast majority of disenrollees

are individuals who have separated from the Service. The actual number of "true" VEAP disenrollees is considerably less than indicated in Table 3.44. As shown in Table 3.45, over 75 percent of all disenrollments during CY 1977 are attributable to early discharges. When separatees are subtracted from total disenrollees, an adjusted disenrollment rate of 2.1 percent is found.

Disenrollment trends can serve as a good index of a program's success. In many ways, it is as important to know who is dropn~ng out of a Drogram as it Is to ':now who is enrolling. More detailed analyses of VEAP disenrollment trends are being conducted by the Department of Defense, and will be presented in a report to be completed later this year.

3-66







87



Table 3.44. VEAP Partcipants: Frequency Distribution by military Service and Month of Disenrollment (January-December 1977)



Frequency Distributiona
Military Service
Month of ArmyNavy Marine Corps Air Force Total
Disenrollment Number Percent Number Percent NumberIPercent NumberiPercent Number Percent January 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0

February 23 0.1 0 0.0 0 0.0 0 0.0 23 0.1

March 104 0.4 2 0.0 2 0.1 0 0.0 109 0.3

April 185 0.8 3 0.0 6 0.2 0 0.0 194 0.5

May 220 0.9 32 0.3 2 0.1 0 0.0 254 0.6

June 275 1.1 35 0.3 10 0.4 0 0.0 320 0.8

July 340 1.4 81 0.6 19 0.7 1 0.2 441 1.1

August 284 1.2 113 0.9 27 1.0 0 0.0 424 1.0

September 330 1.4 157 1.2 35 1.4 1 0.2 531 1.3

October 388 1.6 154 1.2 37 1.4 7 1.4 586 1.4

November 356 1.4 177 1.4 32 1.2 7 1.4 572 1.4

Decemberb 418 1.7 159 1.2 0 0.0 3 0.6 580 1.4
Total Dis- 2932 11.9 913 7.1 170 6.6 19 3.7 4034 10.0
enrolled
No Disenrollmeni
Reported 21694 88.1 11867 92.9 2406 93.4 488 96.3 36455 90.0




Total 24626 100 12780 100 2576 100 507 100 40489 100


a
Percentages may not add due to rounding.
b Army disenrollment total for December separately provided by Army Finance and Accounting Center.
C Active participants at end of CY 1977. SOURCE: Data derived from DoD Master and Loss File, USAREC First Examination and Accession File, Army Finance and Accounting Center Master Allotment File, Navy Finance Center Master Block Listing, Marine Corps Main
Blanket File, Air Force Accounting and Finance Center Blanket Company
Voucher. 3-67







88



Table 3.45 VEAP Participants: Disenrollment
and Early Separation by Military Service (Percent of Participants)

Disenrolled
Total and Adjusted
Military Service Disenrollment Rate Separated Disenrollment Rate
(Disenrollees less
Separatees)

Army 10.2* 8.2* 2.0*
(2514) (2016) (498)

Navy 7.1 4.9 2.3
(913) (622) (291)

Marine Corps 6.6 4.9 1.7
(170) (126) (44)

Air Force 3.7 1.4 2.4
(19) (7) (12)



TOTAL 8.9 6.8 2.1
(3616) (2771) (845)



*Army disenrollment data for December do not appear in computations since these data were separately provided by the Army Finance and Accounting Center. Including Army disenrollment data for December, estimated disenrollment rates are* Army total disenrollment rate, 11.9 percent; Army adjusted disenrollnment rate, 2.4 percent; DoD total disenrollment rate, 10.0 percent; DoD adjusted disenrollment rate, 2.3 percent.

SOURCE: Data derived from DoD Master and Loss File. USAREC First Examination
and Accession File, Army Finance and Accounting Center Master Allotment File, Navy Finance Center Master Block Listing, Marine Corps Main
Blanket File, Air Force Accounting and Finance Center Blanket Company
Voucher.












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