#1 Obama deficit plan would re-examine military retirement
09-20-2011, 12:31 AM
- Join Date
- Aug 2005
WASHINGTON — Included in the president’s deficit reduction plan unveiled Monday are plans to re-examine the military retirement system, calling the current 20-year requirement “out of line with most other government or private retirement plans.”
The document calls for the creation of a commission similar to the controversial 2005 Base Realignment and Closure commission to look at broad reforms to the retirement system..... In particular, it takes aim at the idea that troops must remain in the military for 20 years to receive any retirement benefits, giving “generous benefits to the relatively few members who stay.”
The move comes just weeks after officials from the Defense Business Board outlined similar plans to changing how military retirees are paid, abandoning the 20-year service target.
Advertisement........In that proposal, the board recommended a 401(k) style plan which would allow partial payout for troops who served as little as 10 years. Officials said the move was designed both to provide a more equitable distribution of retirement funds and save money long term.
But veterans groups blasted the proposal, in part because they believe changes would reduce the benefits for those currently on track to retire after 20 years or more.
The new White House plan notes that “any major military retirement reforms should include grandfathering provisions that ensure that the country does not break faith with military personnel now serving, including those serving in Afghanistan and Iraq.”
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