Accession Number : AD1026021


Title :   Toward Efficient Military Retirement Accrual Charges


Descriptive Note : Technical Report


Corporate Author : RAND Arroyo Center Santa Monica United States


Personal Author(s) : Hosek,James ; Asch,Beth J ; Mattock,Michael G


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/1026021.pdf


Report Date : 01 Jan 2017


Pagination or Media Count : 101


Abstract : Primary elements of the costs of military personnel include pay and benefits during military service, and retirement and health care benefits paid to qualified personnel after leaving the military. This report focuses on retirement benefits. Public Law (PL) 9894, enacted in 1984 and implemented in fiscal year (FY) 1985, mandated accrual accounting to fund the military retirement benefit liability and specified the use of the aggregate entry-age normal accounting method. Before PL9894, the amount appearing in the Department of Defense (DoD)budget for military retirement was the annual payment to current military retirees; military retirement was a pay-as-you-go (PAYGO) system. The shift to accrual accounting sought to meet the objective of recognizing in the current budget the cost of future retirement benefits associated with current manning decisions.


Descriptors :   military personnel , personnel management , department of defense , cost estimates , enlisted personnel , health care , department of veterans affairs , financial management , active duty , public policy , RETIREMENT (PERSONNEL) , MANPOWER UTILIZATION


Subject Categories : Personnel Management and Labor Relations
      Military Operations, Strategy and Tactics


Distribution Statement : APPROVED FOR PUBLIC RELEASE