I thought I would post this since there are so many ex-military here.
The new plan would throw out the old standard of 20 years before you get benefits. Instead you would get a more traditional 401K style set up and could quit sooner without losing your benefits.
Do you think the changeover ending the defined pension would decrease military capability and enlistements? Or do so few join up for only a pension? And are some guys just filling a slot until they get their 20 or 30 in?
I like the idea of guys being able to leave earlier with benefits, but I also worry you would lose so much knowledge if the turnover rate is too high.
Thomas Sowell: There are no solutions, just trade-offs.
Retirement pension benefits are different than retirement benefits.
Uniformed members are already eligible to participate in the Government's TSP (Thrift Savings Plan) and when they retire or separate from the service they can let it sit or roll it over into another 401K type program. So people deciding to separate after a lengthy time period of service (10 or more years) still have something to show for their time besides medals and experience.
I believe the changeover ending a defined pension could hurt...but those that want to stay in until their are retirement-eligible will stay in regardless of the promised benefits or a change in benefits. It isn't the benefits that keeps a person in the service...it is the service to country that keeps them there.
Most that I know didn't join for the retirement pension...and they didn't stay for the retirement. They joined to serve their country or maybe for the GI Bill or maybe because they needed to get away from the situation they were in (in some cases because the judge told them the military or jail...but that doesn't happen that often any more) or for other personal reasons not having anything to do with retirement benefits. They stayed because they liked it. Yes, there are some ROADies (Retired On Active Duty personnel) out there, but that doesn't happen all that often as there are too many checks and balances and a lot of levels of supervision where someone can't coast for a long time without being told to do something or get out.
Again, changing the retirement benefits I don't think will greatly affect the turnover rate. People stay in because they like it and want to stay. The retirement is just an added bonus.
That's my two cents...and what I've heard from others.
