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  1. DEF-35 USE EARLY RETIREMENT TO REDUCE THE NUMBER OF MILITARY PERSONNEL
  2.  
  3.                                    Annual Savings                 Cumulative
  4.                                 (Millions of dollars)              Five-Year
  5. Savings from         -----------------------------------------      Savings
  6. CBO Baseline         1994     1995      1996     1997     1998
  7. ---------------------------------------------------------------------------
  8.  
  9. Savings in Total Federal Budget
  10.  
  11. Budget Authority      590     1,350     1,100    -190      20        2,870
  12.  
  13. Outlays               550     1,290     1,120    -120      10        2,850
  14.  
  15. Savings in Defense Budget
  16.  
  17. Budget Authority      950     2,070     1,580    -130      90        4,560
  18.  
  19. Outlays               900     2,010     1,600     -50      80        4,540
  20.  --------------------------------------------------------------------------
  21.  
  22. NOTE:  Savings in the federal and Department of Defense budgets differ
  23.        because of the effects of accrual accounting for military retirement
  24.        and other pay costs that are offset in the federal budget.
  25.  
  26. ---------------------------------------------------------------------------
  27.