Accession Number:

ADA422924

Title:

A Cost Analysis of the Military Retirement System

Descriptive Note:

Master's thesis

Corporate Author:

AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF ENGINEERING AND MANAGEMENT

Personal Author(s):

Report Date:

2004-03-01

Pagination or Media Count:

191.0

Abstract:

This research explores possible changes to the current military retirement system. The research contains a detailed explanation of the current military retirement system and its objectives a summary of the history and past legislation affecting private sector pension plans and the military retirement system and a discussion of major analytic studies of the military retirement system since 1969 and their impact on the current system. The costs and benefits of three alternatives to the current system are analyzed using a deterministic and stochastic analysis. These alternatives are based on benefit structure changes not explicitly reducing costs. System restructuring would change the emphasis from cutting benefits to keeping costs constant or lower with an equal or greater benefit level. This restructuring approach is based on three defined contribution options that have varied contribution percentages. The contribution percentages are designed to provide different levels of incentive for continued military service. The analysis demonstrates that each alternative is an attractive consideration for the DoD because the alternatives are aligned with the objectives of the military retirement system, cost the government less to administer, and provide greater benefit annuities to the service member.

Subject Categories:

  • Economics and Cost Analysis
  • Military Forces and Organizations

Distribution Statement:

APPROVED FOR PUBLIC RELEASE