DEF-38 RESTRUCTURE RESERVE COMPENSATION

                                   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      280      250       220      180      170       1,100

Outlays               270      250       220      180      170       1,090

Savings in Defense Budget

Budget Authority      450      440       430      410      420       2,150

Outlays               430      440       430      410      420       2,130
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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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