United States. Military Compensation and Retirement Modernization Commission
Published: 2015
Total Pages: 280
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The Military Compensation and Retirement Modernization Commission released 15 recommendations to modernize the Uniformed Services' compensation and benefit programs; they comprise this report. These recommendations create a compensations package that ensures the long-term success of the All-Volunteer Force, enables the quality of life for members of the Uniformed Services, and improves the fiscal sustainability of the compensation and retirement systems. This detailed proposal to revamp military retirement would shrink the size of future troops' pensions and end the 20-year, all-or-nothing aspect of the current benefits package by starting 401(k)-style investment funds with government contributions for lower-ranking troops. One feature of the new proposal is to give individual troops the option to forgo immediate monthly retirement checks and instead receive a lump-sum payment for the total value of their working-age retirement benefit between the time they leave service and the time they become eligible for their normal Social Security benefits, usually starting at age 67. At its core, the new proposal would scale back the size of military pensions by 20 percent. Yet it preserves the current structure by continuing to offer the option of monthly checks immediately upon separation for those who serve 20 years.
