Radical overhaul of military retirement eyed

[SMOKE 1,426]

August 15, 2011 6:38 PM

Radical overhaul of military retirement eyed

By Sharyl Attkisson .WASHINGTON - The military retirement system has long been considered untouchable - along with Social Security and Medicare. But in these days of soaring deficits, it seems everything is a potential target for budget cutters. A Pentagon-sponsored study says military pensions are no longer untouchable - they're unaffordable.

CBS News investigative correspondent Sharyl Attkisson reports high-level, closely-held meetings are taking place at the Pentagon regarding a radical proposal to overhaul retirement for the nation's 1.4 million service members - a bedrock guarantee of military service.

The proposal comes from an influential panel of military advisors called the Defense Business Board. Their plan, laid out in a 24-page presentation "Modernizing the Military Retirement System," would eliminate the familiar system under which anyone who serves 20 years is eligible for retirement at half their salary. Instead, they'd get a 401k-style plan with government contributions.

They'd have to wait until normal retirement age. It would save $250 billion dollars over 20 years.

Douglas Holtz-Eakin, former director of the Congressional Budget Office says it's very important that the military attack its retirement issues. "We're talking about an underfunding that starts to look like hundreds of billions of dollars in the next 20 years. And if you want to maintain the core mission which is to defend the nation and have the strategic capabilities we need, we can't have all their money tied up in retirement programs."

Advocates say the new system would not only save money -- but would also be fairer. It would give benefits to those who serve less than 20 years. Right now, they walk away with nothing. And it would give more money to those in combat or high risk situations.

The proposal leaves a lot of blanks to be filled in, including whether to exempt current service members so their plans won't change.

CBS News spoke to some active duty troops who agreed costs must be cut - but worry the number of experienced soldiers will dwindle with no incentive to stay enlisted for 20 years.

The proposal is in early stages and would require Congressional approval. But it's clear that military retirement is no longer untouchable. A Pentagon spokesman said the military retirement system "is a fair subject of review" but no changes will be made "without careful consideration."

Read more: http://www.cbsnews.com/8301-18563_162-20092652.html#ixzz1VCfJ8I7w

[^_^ 5,021]

This is the wrong focus IMO. The focus should be on having fewer military engagements around the world, needing a smaller military as a result, thereby having to pay out fewer pensions.

[I AM NOT THAT GUY 5,715]

It's about time.

They'd have to wait until normal retirement age. It would save $250 billion dollars over 20 years.

[Gary and Alla 3,694]

August 15, 2011 6:38 PM

Radical overhaul of military retirement eyed

By Sharyl Attkisson .WASHINGTON - The military retirement system has long been considered untouchable - along with Social Security and Medicare. But in these days of soaring deficits, it seems everything is a potential target for budget cutters. A Pentagon-sponsored study says military pensions are no longer untouchable - they're unaffordable.

CBS News investigative correspondent Sharyl Attkisson reports high-level, closely-held meetings are taking place at the Pentagon regarding a radical proposal to overhaul retirement for the nation's 1.4 million service members - a bedrock guarantee of military service.

The proposal comes from an influential panel of military advisors called the Defense Business Board. Their plan, laid out in a 24-page presentation "Modernizing the Military Retirement System," would eliminate the familiar system under which anyone who serves 20 years is eligible for retirement at half their salary. Instead, they'd get a 401k-style plan with government contributions.

They'd have to wait until normal retirement age. It would save $250 billion dollars over 20 years.

Douglas Holtz-Eakin, former director of the Congressional Budget Office says it's very important that the military attack its retirement issues. "We're talking about an underfunding that starts to look like hundreds of billions of dollars in the next 20 years. And if you want to maintain the core mission which is to defend the nation and have the strategic capabilities we need, we can't have all their money tied up in retirement programs."

Advocates say the new system would not only save money -- but would also be fairer. It would give benefits to those who serve less than 20 years. Right now, they walk away with nothing. And it would give more money to those in combat or high risk situations.

The proposal leaves a lot of blanks to be filled in, including whether to exempt current service members so their plans won't change.

CBS News spoke to some active duty troops who agreed costs must be cut - but worry the number of experienced soldiers will dwindle with no incentive to stay enlisted for 20 years.

The proposal is in early stages and would require Congressional approval. But it's clear that military retirement is no longer untouchable. A Pentagon spokesman said the military retirement system "is a fair subject of review" but no changes will be made "without careful consideration."

Read more: http://www.cbsnews.com/8301-18563_162-20092652.html#ixzz1VCfJ8I7w

One of the "draws" for military service was the retirement at an early age and one could actually pursue another career using the skills one gained in the military. I guess we can look forward to the draft again.

way to go, Pres Downgrade!

[slim 1,525]

You want to change it? Great.

But, the changes should only affect NEW recruits. Not current retirees.

[I AM NOT THAT GUY 5,715]

You want to change it? Great.

But, the changes should only affect NEW recruits. Not current retirees.

Why not? It should be Social Security for everybody, politicians, union members, and service personnel. After all, we are all Americans, right? Nobody is special.

[Ban Hammer 13,345]

Why not? It should be Social Security for everybody, politicians, union members, and service personnel. After all, we are all Americans, right? Nobody is special.

some are more equal that others.

[Gary and Alla 3,694]

You want to change it? Great.

But, the changes should only affect NEW recruits. Not current retirees.

There will be no "new" recruits if they change it. You are too young to remember thedraft lottery Slim, but you will get to see it again, this time in HD!

[I AM NOT THAT GUY 5,715]

There will be no "new" recruits if they change it. You are too young to remember thedraft lottery Slim, but you will get to see it again, this time in HD!

I doubt it. I don't think that high a percentage stay in to make their twenty, except the ones that couldn't make it in the real world.

You won't see the draft, if anyone learned the lesson of the last draft, where we are still covering the expenses of Vietnam era veterans who served two years, or in many cases, less, for conditions both real, and questionable.

[slim 1,525]

There will be no "new" recruits if they change it. You are too young to remember thedraft lottery Slim, but you will get to see it again, this time in HD!

I'm too young to remember the draft but I'm not too young to remember serving on active duty for over six years and then opting out of that retirement scheme. Retirement is great, but it's definitely not a make it or break it reason for folks to sign up.

The vast majority of recruits sign up for one reason. To get the f'k out of whatever sh!tty situation they're in. That could mean money for college, could mean traveling the world, could mean something as simple as a steady paycheck and change of address. But you'd be hardpressed to find a 19-year-old kid who joined up for the retirement. Harder still to find one that actually stayed in because of it.

I doubt it. I don't think that high a percentage stay in to make their twenty, except the ones that couldn't make it in the real world.

It was pretty typical of the "I got eight more years to get my 20" crowd to be just kind of coasting by. I won't say they coulnd't make it in the real world but the fact of the matter is the military is an easy "job" and when you get free money for the rest of your life because of it, that's a helluva good reason to stay in a few more years.

I'd argue the retirement scheme is more of a retention tool than a recruitment tool.

You won't see the draft,

Nope. Couldn't do it now anyway. Over half our kids are too fat, too gay (well, I guess that doesn't stop 'em anymore) or too big of a pu$$y to be in the military. Draft wouldn't work anymore because everyone would have a medical or other excuse or they'd simply not go. What are we going to do, put them in jail? We don't have the balls to do that either.

When China finally comes to kick our @$$ and take our stuff, there will be some who are prepared but everyone else will probably just sign up to help them out - in exchange for a free X-Box.

[SMOKE 1,426]

There will be no "new" recruits if they change it. You are too young to remember thedraft lottery Slim, but you will get to see it again, this time in HD!

they could enact a mandatory service policy like Isreal has.

[nane1104 146]

they could enact a mandatory service policy like Isreal has.

...and Germany just got rid of..lol

Well, we are one of these folks at the 10 year mark..what to do, stay in or get out? So far, it is still a pretty stable jobfield eventhough we see personel cuts left and right. Hubby is lucky that his position is in pretty high demand and they invested to much money in him already to just kick him out so we are staying in.

I highly doubt there will be a draft anytime soon, why would there be one if the military right now is trying to downsize?

[Ban Hammer 13,345]

But you'd be hardpressed to find a 19-year-old kid who joined up for the retirement. Harder still to find one that actually stayed in because of it.

I'd argue the retirement scheme is more of a retention tool than a recruitment tool.

it is

[Mr. Big Dog 10,747]

mmmmhhhh gubmint teat.

[Ban Hammer 13,345]

mmmmhhhh gubmint teat.

don't snivel because some of us saw an opportunity at an early age.

you can probably still get in and serve