Responding to a national crisis in defense manpower, Congress passed FY00 National Defense Authorization Act, which raised military pay, increased bonus ceilings, reformed military retirement benefit options, and increased special pays. It also mandated that the Department of Defense report annually to Congress on the act's effectiveness. Relevant to that report, this document presents estimates of the predicted effects of the act's basic pay increases for FY00 and FY01 and provides rich contextual information related to recruiting and retention.