• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

US Military

  • Branches
    • Army
    • Navy
    • Air Force
    • Marine Corps
    • Coast Guard
    • National Guard
    • Air National Guard
    • Find A Recruiter
  • Find A Recruiter
  • Military Benefits
    • GI Bill
    • VA Loans
    • Military Scholarships
    • Military Friendly Colleges
    • Money
  • Jobs
    • Military Pay Chart
    • Veteran Jobs
    • Civilian Jobs
  • VA Loan Rates
  • Military News
    • Top News
    • Benefits
    • Careers
    • Education
    • Featured Columnists
      • Larry Fowler
      • Scott Ostrow
      • Kim Lengling
      • Dr. Sasha Toperich
      • Rick Stewart
  • USM Shop
  • GI Bill
  • VA Loans
  • Military Scholarships
  • Top Military-Friendly Colleges and Universities in America

DoD Sends Blended Military Retirement Proposal to Congress

June 17, 2015 By admin

JUNE 17, 2015, WASHINGTON – A Defense Department proposal submitted to Congress on June 10 would create what Pentagon officials called a ?blended defined benefit and defined contribution? military retirement system.

Pentagon spokesman Army Col. Steve Warren told reporters that the proposal includes elements the department believes are necessary to promote retention, to maintain the all-volunteer force and to protect service members who retire due to disability.

?The department carefully reviewed proposals offered by the Military Compensation and Retirement Modernization Commission as well as Congress,? Warren said. ?And in crafting its final recommendation, the department considered all elements of current and potential retirement plans and built a blended system that – in the military judgment of the Department of Defense – best enables us to maintain the readiness of the all-volunteer force.?

Officials believe the proposal will help to give the department the flexibility it needs to manage the force into the future, the colonel said, while helping to ensure that 85 percent of service members will start long-term retirement savings.

Proposal Highlights

Highlights of the proposal include:

* Creating a defined contribution element through the Thrift Savings Plan for service members;

* DoD automatically contributing an amount equal to 1 percent of a service member?s basic pay to the Thrift Savings Plan account from entry into service through separation or retirement, with vesting after completion of two years of service and additional matching contributions of up to 5 percent of basic pay starting after completion of four years of service and continuing through separation or retirement; and

* Each service having the ability to offer a bonus, called Continuation Pay, to members with eight to 16 years of service, with each service setting the rate of Continuation Pay.

?This change to a blended retirement system is a key step in modernizing the department?s ability to recruit, retain and maintain the talent we require of our future force,? Warren said. ?We know that future service members will require more choice and flexibility in compensation and retirement.?

Attracting and Managing the Future Force

The proposal also provides additional options for attracting and managing a military force that requires ever-increasing, diverse and technical skill sets in an evolving global economy, he added.

Navy Lt. Cmdr. Nate Christensen, a Defense Department spokesman, said that under the plan, about 85 percent of service members who enter the force will receive some form of a portable retirement benefit.

Future service members would receive 80 percent of the current defined benefit – retirement pay, which effectively is a pension – if they serve for 20 years, and would have the opportunity to achieve nearly equivalent or better retirement benefits when they reach retirement age, he added.

?This plan enables us to recruit and retain our superb all-volunteer force in the 21st century,? Christensen said.

Filed Under: daniel articles, National Guard, Top News

[related_posts_by_tax format="thumbnails" limit_posts="100" image_size="sidebar-thumbnail" public_only="true" posts_per_page="6"]

Primary Sidebar

USMilitary.com Career Guide

Sign up to receive USMilitary.com email updates and to hear what's going on with all military branches!

Featured Columnists

Larry Fowler

Larry Fowler is the publisher of USMilitary.com Network one of America's premier privately owned

Autobiography Compares Living Faithfully With Navy SEAL Training (BUD/S).

Scott Ostrow

Lt Col (Dr.) Scott A. Ostrow retired from the Air Force in September 2005 and has been teaching

Must Read: The Truth About The ASVAB Test Prep From The Man Who Wrote The Book

Kim Lengling

Kim Lengling is a Air Force Veteran whose passion is to help support veterans and their

The Moving Wall: Women Who Paid The Ultimate Price For Their Country

Dr. Sasha Toperich

Dr. Sasha Toperich is the Senior Executive Vice President at Transatlantic Leadership

Sarraj’s Dangerous Dance With Power

Rick Stewart

Rick Stewart is a former United States Air Force Survival, Evasion, Resistance, and Escape (SERE)

Announcing American Patriots Unsung Magazine

Nathan B. Nelson

Capt (ret) Nathan B. Nelson is the Director of Military Affairs for the 1st Congressional district

Three Critical Considerations for Every Veteran Prior to Leaving Active Duty

Laquan Daniels

Laquan Daniel is a military recruiting expert with over 17 years of specialized experience in the

Important News For Military Transitioning Veterans

Veteran Buzz

Hire Military Veterans

Which Companies Are Most Likely to Hire Military Veterans?

July 30, 2018 By Ben Ehinger

High-Paying Jobs for Military Veterans

5 High-Paying Jobs for Military Veterans

July 2, 2018 By Ben Ehinger

High Paying Jobs Not Requiring a Degree

June 28, 2018 By Ben Ehinger

Footer

  • Advertise With Us
  • Privacy Policy
  • Write For US
  • Link to Us

Recent

  • Apache Attack Helicopter Pilot: To Maintain a Watchful Eye, “Above the Best”
  • A Few Benefits You May Not be Aware of As a Military Child
  • Experts Predict Artificial Intelligence Will Transform Warfare
  • Autobiography Compares Living Faithfully With Navy SEAL Training (BUD/S).
  • The Unraveled Pandemic Of Navy SEAL Posers

Search

© Copyright 2021 USMillitary
Web Design by Goebel Media Group


THIS IS A PRIVATE WEBSITE THAT IS NOT AFFILIATED WITH THE U.S. GOVERNMENT, U.S. ARMED FORCES, OR DEPARTMENT OF VETERANS AFFAIRS. U.S. GOVERNMENT AGENCIES HAVE NOT REVIEWED THIS INFORMATION. THIS SITE IS NOT CONNECTED WITH ANY GOVERNMENT AGENCY.

​Tips
Discounts
News

​

​

Join the USMilitary.com Newsletter Today!

By subscribing you agree to our terms & conditions

x