Posted on 09/19/2011 7:53:52 PM PDT by Jet Jaguar
Included in the president’s deficit reduction plan unveiled Monday are plans to re-examine the military retirement system, calling the current 20-year requirement “out of line with most other government or private retirement plans.”
The document calls for the creation of a commission similar to the controversial 2005 Base Realignment and Closure commission to look at broad reforms to the retirement system. In particular, it takes aim at the idea that troops must remain in the military for 20 years to receive any retirement benefits, giving “generous benefits to the relatively few members who stay.”
The move comes just weeks after officials from the Defense Business Board outlined similar plans to changing how military retirees are paid, abandoning the 20-year service target.
In that proposal, the board recommended a 401(k) style plan which would allow partial payout for troops who served as little as 10 years. Officials said the move was designed both to provide a more equitable distribution of retirement funds and save money long term.
But veterans groups blasted the proposal, in part because they believe changes would reduce the benefits for those currently on track to retire after 20 years or more.
The new White House plan notes that “any major military retirement reforms should include grandfathering provisions that ensure that the country does not break faith with military personnel now serving, including those serving in Afghanistan and Iraq.”
No action was taken on the Defense Business Board plan, and the new White House idea must be adopted by Congress before work would begin. Under the rules laid out by President Barack Obama on Monday, both the White House and Congress would have to approve the commission’s final report without changes before it could become law.
The White House did not specify how much changes in the military retirement system could save long term.
Obama’s deficit reduction plan also included $1 trillion in savings from troop withdrawals in Iraq and Afghanistan, and another $580 billion in cuts and fees in mandatory benefit programs.
That included almost $7 billion raised through a new $200 annual fee for veterans enrolled in the Tricare for Life program (but no new charge for active-duty troops) and more than $20 billion in new co-payment fees in prescription drug coverage for military families and retirees.
That may be true of everyone who’s getting social security, medicare, etc, etc... In danger of default? Print money until the money is worthless.
Probably about the same time that medicare and social security obligations swallow up the rest of the budget.
Just talking to my hero hubbie. Military retirees for some period of time are subject to recall in case of emergency. He reminded me that my Dad carried ‘hip pocket’ order to take command of Long Beach Naval Facility under such conditions. My husband is still potentially subject to recall. So ‘retirement’ may not be retirement as understood in the civilian world. That kind of changes the picture.
But don’t worry Peeloss’ retirement is safe along with her stff. Pee on you military retirees.
Only 47% of officers and 15% of enlisted men serve 20 years and get this benefit.
It is not a major cost. We can pay our military retirement benefits, or buy about 40 F22 fighters. ;)
exactly! fewer troops will want to or be able to stay 20 with this new BS rule. also 20 is not automatic, “up or out” guarantees a real gauntlet to run to make it to retirement
When it comes to reforming military retirement...we need to put the blame where the blame is due...and it doesn't START with the Obama administration.
It starts with the BUSH administration. Bush nominated Gates...and this crappy retirement plan that has been floated is HIS baby.
And to put the cherry on top...Mullen OK'd it...another Bush appointee. We are getting hammered from both sides on this deal.
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