Accession Number:

AD1026603

Title:

Department of Defenses 2015 Retirement Plan Cost Analysis

Descriptive Note:

Technical Report

Corporate Author:

Naval Postgraduate School Monterey United States

Report Date:

2016-06-01

Pagination or Media Count:

61.0

Abstract:

The new military retirement system is advertised to significantly reduce the Department of Defenses DOD monetary outlays over the short and long term. These savings are generated through a variety of assumptions outside of the departments control. The variables that have the greatest impact over cost savings are controlled by service members SM actions, choices, and federal interest rates. Critical analysis of these variables could potentially affect future cost savings and is key in budget preparation andfuture spending plans. This MBA report presents a sensitivity analysis on three separate variables that have a significant impact on retirement costs. Realistic manipulation of these independent variables will show short-term versus long-term cost savings. Additionally, a high-cost and low-cost scenario is explored. With cost scenarios differing up to 321 billion, DOD needs to be aware of the potential effects of future outlays. It is recommended that DOD conduct additional economic research and acquire further data on the preferences of current SMs in order to provide a more narrow range of cost savings.

Subject Categories:

  • Personnel Management and Labor Relations
  • Military Forces and Organizations

Distribution Statement:

APPROVED FOR PUBLIC RELEASE