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.
Only number that matters, retrieves by the pup: 176 Cooper: 15 Proud owner of 2 non hunt trial/field trial fire breathers
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.
"COMMON SENSE IS AN UNCOMMON VIRTUE"
VEG*NHIPPIE Wrote - I'm from the UK, and it's not an issue here
UNDERRADAR REPLIED - Hey, good to know that. Coming up on July 4, we have a celebration. You know of it?