By Leo Shane III, Staff writer
Some military advocacy groups say they worry that a proposed change to the military retirement system would give younger troops less incentive to make the military a career. (Photo: Defense Department)
Military Retirement Overhaul on Fast Track
The old, reliable military retirement system is about to be retired.
House and Senate lawmakers are moving ahead with dramatic plans to replace the current 20-year, all-or-nothing deal with a “blended” compensation system, complete with a 401(k)-style investment plan that promises all future troops will leave the service with some money for retirement.
The moves echo recommendations from the Military Compensation and Retirement Modernization Commission earlier this year, which pushed for changes to recognize the estimated 83 percent of service members who leave the military with no retirement benefits.
But some outside advocates still worry that, while well-intentioned, the change could decimate the senior noncommissioned and officer ranks, by giving them too much incentive to start a civilian career earlier and not enough incentive to stay to 20 years.
Lawmakers seem undeterred, at least for now. House Armed Services Committee members are expected in coming days to forward their retirement change proposal to the full House for consideration. Rep, Mac Thornberry, R-Texas, committee chairman, said he believes the move as a whole will strengthen the fighting force.
“This is the sort of change that isn’t going to save a lot of money, but it’s designed to attract and keep up the quality of talent in the military,” he said.
Senate Armed Services Committee leaders said they’ll follow suit early this summer. If those plans ultimately become law, the new retirement system would be in place by October 2017.