Benefits News

The military retirement system should be recast to ensure that more people who spend time in uniform earn at least some deferred compensation for their service, says a panel of experts who reviewed the military pay and benefits system.

Speaking in an Aug. 5 Pentagon briefing, retired Air Force Brig. Gen. Jan D. "Denny" Eakle said that fewer than half of all officers and 15 percent of all enlisted ever receive any retirement compensation under the current retirement system.

The panel suggests that a new system should be put in place, which would provide a defined benefit, defined contributions, "gate" pays for achieving specific years of service, and separation pays. The amounts of compensation would vary accordingly.

Service members could become vested for some compensation after 10 years, as opposed to the present 20 years. Congress will likely take a year to review the panel’s recommendations; as such, no action would happen until the next presidential administration takes office.

SOURCE: Armed Forces News