DoD panel calls for radical retirement overhaul
A sweeping new plan to overhaul the Pentagonâ€™s retirement system would give some benefits to all troops and phase out the 20-year cliff vesting system that has defined military careers for generations.
In a massive change that could affect todayâ€™s troops, the plan calls for a corporate-style benefits program that would contribute money to troopsâ€™ retirement savings account rather than the promise of a future monthly pension, according to a new proposal from an influential Pentagon advisory board.
All troops would receive the yearly retirement contributions, regardless of whether they stay for 20 years. Those contributions might amount to about 16.5 percent of a memberâ€™s annual pay and would be deposited into a mandatory version of the Thrift Savings Plan, the militaryâ€™s existing 401(k)-style account that now does not include government matching contributions. Â Read the full article by clicking the source link below.
Hmmm….the jury is still out for me on this. Â I have lots a questions as to how benefits would be distributed. Â I understand, however, that eventually, it might have to come down to this…I am not looking forward to that day for my fellow brothers in arms.
Source: Air Force Times