Retirement system about to change

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Retirement system about to change

Postby goodkarmarising » Wed Jul 27, 2011 2:15 pm

For our servicemembers that might not be aware of what is in the works...get the word out.

http://www.airforcetimes.com/news/2011/ ... ul-072511/


A sweeping new plan to overhaul the Pentagon’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 today’s troops, the plan calls for a corporate-style benefits program that would contribute money to troops’ 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 member’s annual pay and would be deposited into a mandatory version of the Thrift Savings Plan, the military’s existing 401(k)-style account that now does not include government matching contributions.
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Re: Retirement system about to change

Postby Cougar12A » Thu Jul 28, 2011 4:48 am

is that for all the military or just the air force?
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Re: Retirement system about to change

Postby FITZH2O » Sun Jul 31, 2011 1:19 pm

The problem I see with this... in the civilian world you can work until retirement age, but as an enlisted guy I can only remain on active duty for 30 years (48 years old for me) but won't be able to collect, penalty free, until age 59,if I read correctly.

The other plans I read about talked about going from the high-3 plan to a high-5 plan or reducing the calculation rate from 2.5% to 2%. I.e. 40% for 20 years service from 50% for 20 years service. It's funny how last year congress had there panties in a twist about guys taking the REDUX and now it looks like they are going to do it for us.

When I first heard about them redoing the retirement plan I thought they were going to grandfather the guys already designated as careerist, but it appears that is no longer the case.

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