The Pentagon has approved the proposals for changes to the military retirement system after reviewing the Joint Chiefs of Staff’s final recommendations, Military Times reported Sunday.
Andrew Tilghman writes the proposals seek to cut the fixed-benefit pension by nearly 20 percent and create a retirement savings account for each service member under the Thrift Savings Plan.
Under the new rules, the government would make annual deposits to individual retirement savings accounts equal to 1 percent of a member’s basic pay and match the troops’ voluntary contributions to their account for up to 5 percent, according to the report.
Amid concerns over the proposals’ impact on retaining career troops, the Joint Chiefs wants to retain the amount of retirement benefit for soldiers who serve 20 years and beyond, Tilghman reports.
“What we’re worried about is: Don’t reward people who stay less than 20 by hurting people who stay more than 20,” U.S. Air Force Chief of Staff Gen. Mark Welsh told a virtual town hall meeting with enlisted airmen
Welsh noted that the recommendations also call for the extension of government contributions to the retirement savings account for the full duration of service, Military Times reports.