Panel: Full overhaul of military benefits needed; heated debate coming

Panel: Full overhaul of military benefits needed; heated debate coming

The congressional commission said in a report that a new savings plan needs to be enacted for future service members, and old plans with current service members will need to be grandfathered in.

A congressional panel is urging the overhaul of the benefits system at the Pentagon, arguing that the changes are necessary to allow service members to contribute to their retirements and sign up for private-sector health plans.

The report from the Military Compensation and Retirement Modernization Commission made a total of 15 recommendations in its reports aimed at increasing financial options for members of the military while keeping compensation stable, according to a Washington Post report.

The U.S. government stands to save billions of dollars from this plan, even though it would have to grandfather in the retirement plans of troops and veterans currently in active duty.

The commission said in a statement that the reforms would “move the All-Volunteer Force toward a future that is in the best interest of our Nation’s security and that can be fiscally sustained.” The commission added that the federal government should meet its full commitment to those who are currently serving.

Under the plan, the military would adopt Thrift Savings Plans similar to a 401(k)-type plan, which would go into effect for future service members while keeping in place the basic structure of the existing system that guarantees retirement benefits for those who have served 20 years in the armed forces.

It would give some retirement benefits to those who have been in service for just a few years, but also adds flexibility, according to the commission.

The report is likely to be hotly debated among policymakers and the military. Proponents of making wholesale changes to the current structure say the financial burden has become too much, but opponents say an overhaul would jeopardize the retirements of those who have served.

Be social, please share!

Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail

Leave a Reply

Your email address will not be published. Required fields are marked *