The $400 billion cut is over 10 years, so by 2023 since the budget request for 2012 is already submitted and includes the original $400 billion Gates has already identified.
Story.
Most of the time pay "cuts" are really either freezes or measures that slow their growth (like smaller cost of living increases, etc.). Honestly, if we're serious about cutting deficits all of a sudden, why is this not on the table? Everything should be on the table so the American people can really see what the options are, no sacred cows on either side if we're being serious. The voters will see that the sentiments to "make cuts" are not nearly as easily met when the things that are eating the vast majority of our budget are quite popular (i.e. not foreign aid, the department of education, etc.).
WRT DoD, it's either make cuts to personnel costs (either less troops or same number and pay them less) or cut R&D, procurement, or operations. A lot of reductions are projected from drawing down operations in Iraq and Afghanistan, and obviously some major procurement items have been cut recently as well.
I don't want a reduction in pay or benefits for active military members but if cuts are gonna come you realistically have to expect that they will hit that aspect of defense spending. Some of the proposals have even been very reasonable (Tricare fees) but have met a firewall of categorical opposition that defies logic.
Attached good report on DOD personnel costs with a sh*t-load of graphics and numbers on the issue. Forgot to attach and lost the file...