DID YOU KNOW? DTIC has over 3.5 million final reports on DoD funded research, development, test, and evaluation activities available to our registered users. Click
HERE to register or log in.
Accession Number:
AD1013561
Title:
Military Retirement: Background and Recent Developments
Descriptive Note:
Technical Report
Corporate Author:
Congressional Research Service Washington United States
Report Date:
2016-04-06
Pagination or Media Count:
24.0
Abstract:
The military retirement system is a government-funded, noncontributory, defined benefit system that has historically been viewed as a significant incentive in retaining a career military force. The system currently includes monthly compensation for qualified active and reserve retirees, disability benefits for those deemed medically unfit to serve, and a survivor annuity program for the eligible survivors of deceased retirees. The amount of compensation is dependent on time served, basic pay at retirement, and annual Cost-of-Living-Adjustments COLAs. Military retirees are also entitled to nonmonetary benefits including exchange and commissary privileges, medical care through TRICARE, and access to Morale, Welfare and Recreation MWR facilities and programs. Currently, active component personnel are eligible for retirement or vested after completing 20 years of service YOS and have a choice between two options High-Three or Career Status BonusRedux based on career expectations and the individuals financial situation. Reserve personnel are eligible for retirement after 20 years of creditable service based on a points system, but do not typically begin to draw retirement pay until age 60. A third category of retirement is disability retirement. In FY2014, 55 billion was paid to approximately 2.3 million military retirees and survivors. Given the size of the program, some have viewed military retirement as a place where substantial budgetary savings could be made. However, others have argued that past modifications intended to save money have had a deleterious effect on military recruiting and retention. Military retirees, families, and veterans service organizations closely monitor potential future changes to the retirement system. When considering alternatives to the current system, Congress may choose to consider the balance between budget constraints and the needs and concerns of this constituent group.
Distribution Statement:
APPROVED FOR PUBLIC RELEASE
