The Military Compensation and Retirement Modernization Commission's Blended Retirement Plan: Implications for Marine Corps Force Management Objectives
CNA ANALYSIS AND SOLUTIONS ARLINGTON VA ARLINGTON United States
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This report examines the impact of the new military blended retirement system BRS on various U.S. Marine Corps force management objectives FMOs. We estimated the effect of the retirement system changes on active component AC and reserve component RC force profiles and personnel costs and the financial impact on individual AC Marines. Our results depend on assumptions about personal discount, BRS opt-in, Thrift Savings Plan contribution, and return-on-investment rates. Our baseline estimates of the effects on FMOs use the assumptions in the Military Compensation and Retirement Modernization Commission MCRMC final report. We tested the sensitivity of our estimates to changes in the MCRMC assumptions and found that enlisted force profiles change very little, while enlisted personnel cost saving estimates are more varied. Our long-run annual AC enlisted personnel cost saving estimates range from 87 million to 225 million. Estimates for AC officer FMOs are more sensitive to changes in the assumptions. AC officer personnel cost savings range from 10 million to 54 million. RC enlisted and officer personnel cost savings are in the respective ranges of 0.2 million to 5 million and -0.3 million to1.5 million.
- Economics and Cost Analysis
- Military Forces and Organizations
- Personnel Management and Labor Relations