The Retirement Choice
CENTER FOR NAVAL ANALYSES ALEXANDRIA VA
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Military personnel who entered service after 31 July 1986 and who are eligible and intend to serve for 20 years must choose between two retirement plans at their 15th year of service. Once the final selection is made, the choice is irrevocable. How should Marines, Sailors, Airmen, and Soldiers decide which option to take The Department of Defense has a website that provides information and examples to help in making the decision. At CNA, we did some calculations using a different approach that we believe is useful in evaluating these retirement choices. This research memorandum calculates differences between the high-3 retirement plan and the REDUX retirement plan plus a 30,000 bonus that is given at the 15th year of service, in order to help servicemembers make more informative decisions about which plan to select.
- Personnel Management and Labor Relations