DEF-35 USE EARLY RETIREMENT TO REDUCE THE NUMBER OF MILITARY PERSONNEL

                                   Annual Savings                 Cumulative
                                (Millions of dollars)              Five-Year
Savings from         -----------------------------------------      Savings
CBO Baseline         1994     1995      1996     1997     1998
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Savings in Total Federal Budget

Budget Authority      590     1,350     1,100    -190      20        2,870

Outlays               550     1,290     1,120    -120      10        2,850

Savings in Defense Budget

Budget Authority      950     2,070     1,580    -130      90        4,560

Outlays               900     2,010     1,600     -50      80        4,540
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NOTE:  Savings in the federal and Department of Defense budgets differ
       because of the effects of accrual accounting for military retirement
       and other pay costs that are offset in the federal budget.

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