Accession Number ADA590200
Title Military Retirement Reform: A Review of Proposals and Options for Congress.
Publication Date Nov 2011
Media Count 30p
Personal Author C. A. Henning
Abstract Few military subjects have generated as much interest or commentary as the military retirement system and efforts to reform the system have been many. Heightened concern over the national debt crisis, the economic recession, and stubbornly high unemployment has resulted in renewed congressional interest in the cost and effectiveness of the system. This report reviews various reform proposals and presents several potential options for Congress, ranging from maintaining the current system to a national commission to review military compensation, benefits, and retirement. The military retirement system is a noncontributory, defined benefit plan which guarantees a specific monthly payment after 20 or more years of service. Vesting occurs at 20 years of service, regardless of age, and is therefore an all or nothing proposition. Retirement age varies, but most military retirees are young enough to pursue private-sector careers following their military service. Most observers note that ,while effective as a retention tool, military retirement is also very expensive in FY2010 there were 2,271,000 retirees and survivors receiving a total of $50.842 billion from the federal government. However, because of the way the government accounts for military retirement, the direct cost to the Department of Defense (DOD) is significantly less. In FY2009, DOD paid $17.5 billion to the Military Retirement Fund to fund the future retirement of the military cohort who entered the military during 2009. Critics of the military retirement system frequently cite several points in addition to cost: (1) It is inefficient because it defers too much compensation until the completion of a military career; (2) It is inflexible because it does not facilitate force management or encourage longer careers; and (3) It is inequitable because most servicemembers never qualify or vest. The military retirement system has evolved over time (see Major Legislative Reforms of Military Retirement).
Keywords Costs
Csb(Career status bonus)
Dacmc(Defense advisory committee on military compensation)
Department of defense
Final basic pay
High-3
Legislation
Military personnel
Military retirement system
Qrmc(Quadrennial review of military compensation)
Redux
Reform
Retirement(Personnel)


 
Source Agency Non Paid ADAS
NTIS Subject Category 70D - Personnel Management, Labor Relations & Manpower Studies
92A - Job Training & Career Development
74 - Military Sciences
Corporate Author Congressional Research Service, Washington, DC.
Document Type Technical report
Title Note Congressional rept.
NTIS Issue Number 1409
Contract Number N/A

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