2018 Military Retirement Options: An Expected Net Present Value Decision Analysis Model

reportActive / Technical Report | Accession Number: AD1051597 | Open PDF

Abstract:

The 2016 NDAA authorized changes to the military retirement system transitioning from the legacy High-3 defined benefit annuity to the new Blended Retirement System BRS. In exchange for a reduced defined benefit annuity, the BRS incorporates automatic and matching contributions to the members Thrift Savings Plan and a continuation payment offered at 12 years of service. In 2018, service members with less than 12 years of service will make an irrevocable decision between the two retirement systems. This research effort addresses the problem by developing a decision analysis model incorporating up to 27 different input variables. Service members can use the associated spreadsheet tool to calculate the expected net present value of each alternative based on their own personal circumstances.

Author(s):
Witham, Bret N
Author Organization(s):
Air Force Institute of Technology Wright-Patterson AFB United States
Descriptive Note:
Technical Report
Pagination:
0101

Security Markings

DOCUMENT & CONTEXTUAL SUMMARY

Distribution:
Approved For Public Release
Distribution Statement:
Approved For Public Release;

RECORD

Collection: TR
Identifying Numbers
Report Number(s):
AFIT-ENS-MS-17-M-164
 Subject Terms
Joint Capability Areas:
JCA_6.4.1_Secure Information Exchange; JCA_1_Force Support; JCA_5_Command and Control; JCA_1.3_Human Capital Management; JCA_1.3.2_Personnel Management; JCA_6_Net Centric; JCA_6.4_Information Assurance; JCA_5.3_Planning; JCA_5.4_Decide; JCA_5.3.2_Apply Situational Understanding; JCA_1.1_Force Management; JCA_5.6.1_Assess Compliance with Guidance; JCA_5.6_Monitor; JCA_6.2.3_Core Enterprise Services; JCA_8_Building Partnerships; JCA_1.2.5_Lessons Learned; JCA_1.2_Force Preparation; JCA_4.4.1_Food Service; JCA_4.4_Logistics Services; JCA_6.2.1_Information Sharing; JCA_6.2.2_Computing Services
Modernization Areas:
Directed Energy
Communities of Interest:
No COI(s) Identified
Descriptor(s):
investments, personnel management, retirement, military personnel, fringe benefits, decision making, careers, military separation, compensation, department of defense
Field(s)/Group(s):
Personnel Management and Labor Relations, Military Forces and Organizations
Keyword(s):
Military Retirement, Blended Retirement System, Expected Net Present Value, Decision Analysis, annuity, thrift savings plan, return on investment, high 3 retirement system, retirement benefits
Report Date:
2017 Mar 23
Creation Date:
2018 May 10