The Defense Business Board, a non-military board of advisors to the Military, has produced a 24-page report recommending changes to Military retirement benefits.
Their plan [Defense Business Board], laid out in a 24-page presentation “Modernizing the Military Retirement System,” would eliminate the familiar system under which anyone who serves 20 years is eligible for retirement at half their salary. Instead, they’d get a 401k-style plan with government contributions.
They’d have to wait until normal retirement age. It would save $250 billion dollars over 20 years…
Advocates say the new system would not only save money — but would also be fairer. It would give benefits to those who serve less than 20 years. Right now, they walk away with nothing. And it would give more money to those in combat or high risk situations.
The proposal leaves a lot of blanks to be filled in, including whether to exempt current service members so their plans won’t change…
CBS News spoke to some active duty troops who agreed costs must be cut – but worry the number of experienced soldiers will dwindle with no incentive to stay enlisted for 20 years. Source CBS
Admiral Mullens has told troops that any changes will be “grandfathered-in” to protect the promises already made to those serving.
There are no details concerning what happens to those actively serving today. In the video you will hear that the BFF duo, Senators Lindsey Graham and John McCain are also working a plan to reconstruct Military retirement to give the American taxpayer “the most bang” for their “buck.”
Military Retirement Under Consideration (Video)