The 20-year retirement system the military has used for generations should be phased out and be replaced with a corporate-style program, a Defense Department panel said.
The Defense Business Board released its proposal July 21, recommending the corporate-style program contribute money to individual retirement savings accounts rather than future monthly pensions.
Air Force Times reports all troops would receive the yearly retirement contributions, regardless of whether they stay for 20 years. The DBB proposed the contributions be adjusted to give more money to troops who deploy frequently, accept hardship assignments or serve in high-demand jobs.
“This alternative plan would enhance the ability of the service member to build a meaningful retirement asset with complete flexibility for their lifestyle or desires,” said John Spencer, a former Marine Corps pilot who led the board’s study.
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