20-year military retirement system needs reform

report to the Congress
  • 73 Pages
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by
U.S. General Accounting Office , Washington
Military pensions -- United States, United States -- Armed Forces -- Appointments and retire
Statementby the Comptroller General of the United States
The Physical Object
Paginationiv, 73 p. :
ID Numbers
Open LibraryOL17969326M

The Year Military Retirement System Needs Reform FPCD Published: Publicly Released: The Year Military Retirement System Needs Reform Members of the Armed Forces can retire at any age after 20 years of service. The Department of Defense's justification for early retirement is a need to attract and main-tain a youthful and vigorous force.

However, most servicemen who retired in fiscal year. The current military retirement system is basically what is known as a "defined retirement system". This just means that you get a set retirement based on the number of years you are on active duty.

DOCUMENT RESUME [B 80] The Year Military Retirement System Needs Reform. FPCD; B Ma 44 pp. + 8 appendices (29 pp.). Report to the Congress; by Elmer B. Staats, Comptroller General. Issue Area: Personnel Management and Compensation ().

redux military retirement system The Military Reform Act of created the REDUX retirement system, which can be accepted by service members who joined on or after August 1, Under REDUX, every year in your first 20 years of service is worth % toward the retirement multiplier, and each year after the 20th year is worth %.

The problems with the current military retirement system are numerous. Most troubling, the existing system only provides pension benefits for those with 20 years of service. 1 Vesting in the military retirement system is commonly referred to as “cliff vesting.” Until the year point, there is generally no vesting.

At 20 years, the servicemember becomes fully vested. However, individuals can receive retirement benefits with fewer than 20 years of service under the disability retirement system and under Temporary.

Military Personal Finance Books “Guide to Personal Financial Planning for the Armed Forces” by Colonel S. Jamie Gayton and Major Scott P. Handler. Updated for. One of the best decision-making guides for military pay & savings issues. “The Military Advantage” by Terry Howell of Best benefits book.

Ever. Active Duty Retirement Members who accumulate 20 or more years of active service are eligible for retirement. There are three non-disability retirement plans currently in effect for active duty.

Because the majority of members of the military leave service before the year mark, the new Blended Retirement System (BRS) went into place on January 1, Get this from a library.

Reforming the military retirement system. [Beth J Asch; Richard Johnson; John T Warner; United States. Department of Defense. Office of the Secretary of Defense.; National Defense Research Institute (U.S.)] -- The authors summarize the principal features of a model of military compensation they developed earlier and use it to analyze the effects of converting the.

Under the Military Retirement Reform Act ofefforts were made to further reduce the burden of military retirement payments by introducing the "REDUX" system.

The legislation reduced the multiplier for years of service up to 20 years from % to %. The headline states the case with stark clarity: “The Year Military Retirement System Needs Reform.” The report, prepared by a government watchdog agency, argues that the existing military.

2. Plan your post-retirement budget: Know what you'll have to work with. Review your military retirement pay, benefits and expenses to plan your budget and calculate what you'll have each month.

Income: You'll receive one of three types of non-disability retirement pay: Final basic pay – for service members with an entry date prior to Sept. Ina few years after the All Volunteer Force was enacted into law, the U.S.

Government Accountability Office (GAO) was calling for an end to the year cliff in a clearly titled report, Retirement Security: The Year Military Retirement System Needs Reform: Twenty-year retirement, in conjunction with present personnel management policies, is an inefficient means of.

A SUMMARY OF MAJOR MILITARY RETIREMENT REFORM PROPOSALS, – A Report Prepared by the Federal Research Division, Library of Congress the basic system, especially the year retirement paradigm, has been the subject of intense criticism and equally intense support among military personnel, politicians, and defense manpower analysts.

The old pension system worked great if you stuck around for at least 20 years to become vested in it – which only 17% of service members did, according to the military.

The New Blended Retirement System. To provide retirement benefits for its shorter-serving members without strapping itself with indefinite pension obligations, the DOD created.

Retirement Plan: Criteria to Receive: Final Pay: Entry before September 8, High Entry on or after September 8,but before August 1, OR Entered on or after August 1,and did not choose the Career Status Bonus and REDUX retirement system. The Military Compensation and Retirement Modernization Commission in January recommended scrapping the armed services’ current year cliff vesting retirement system and replacing it with a.

The Twenty-Year Military Retirement System Needs Reform, pp. 9, 8 personnel for'as long as 30 years of service would still mean most military members would leave active duty by the age of   An Historical Analysis and Comparison of the Military Retirement System and the Federal Employee Retirement System.

U.S. Naval Post Graduate School. Monterey, CA. Staats, E. The Year Military Retirement System Needs Reform. Report to the Congress of the United States. Office of the Comptroller General, General Accounting Office. Cuts For Military Retirement Benefits. During times of budget deficiencies and a down-turned economy, the military retirement system is evaluated in order to cut federal spending.

is an example of a time of fiscal re-evaluation and possible reduction in veterans' retirement benefits.

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If the Department of Defense (DOD) fails to reform its military retirement system, it will find itself in the same place as General Motors (GM) during the last decade. With GM management focused on maintaining the status quo, staggering legacy costs provided health care and pensions to millions of retirees totaling nearly $2, per vehicle.

If the Department of Defense (DOD) fails to reform its military retirement system, it will find itself in the same place as General Motors (GM) during the last decade. With GM management focused on maintaining the status quo, staggering legacy costs provided health care and pensions to millions of retirees totaling nearly $2, per vehicle.

Congress must reform military compensation to stop wasteful cost growths and better align the entire compensation system with the needs of today’s soldiers.

This proposal saves $ billion inand $ billion over 10 years. The commission sought even more flexibility with an option at retirement for active duty or reserve retirees to get a lump-sum payment if they elect to defer any military.

works Search for books with subject Appointments and retirements. Search. Miscellaneous bills United States.

Congress. Promotion and Retirement in the Army United States. Not In Library.

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The year military retirement system needs reform United States. General Account Not In Library [General Braxton Bragg's address to the. It also includes a mandatory retirement when the employee reaches a designated age or years of service. Eligibility to retire under the special year provision depends on the both the retirement system (CSRS or FERS) and the position.

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Positions covered under the year retirement system. Law Enforcement Officers (LEO) Firefighters (FF). “The military pension system simply needs drastic reform,” said one commission source.

cost of the military retirement system could reach $37 billion by. The military retirement system pays generous benefits to those who serve for 20 or more years.

This system weakens the retention of more experienced military personnel who have already hit the. The last major military retirement reform, the “REDUX”, cut too deep and had to be changed after retention plummeted. Today the military has much more computer power and many more tools to track retention, and the service’s personnel bureaus will be able to more accurately assess the impact of changes before they’re implemented.

The proposed system would provide for the first time a modest retirement benefit for the vast majority of service members who leave the military before .Service members in the legacy High-3 system must have begun their service by Decem Also called High or “military retired pay,” this is a defined benefit plan.

You’ll need to serve 20 years or more to qualify for the lifetime monthly annuity. Your retirement .