Posted on Jul 20, 2015
The Pentagon is backing the new retirement plan, which is similar to a 401K. What are your thoughts on the projected plan?
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Pentagon is officially backing a "blended" system that would shrink the size of the current pension by about 20 percent yet supplement that benefit by offering government contributions to individual retirement investment accounts.
The Current Retirement plan does not require Soldiers to invest their own money in order to receive a guaranteed retirement at 20 years. Under the new program Service members will have to take a portion of their pay and invest it toward their retirement with government matching up to a certain percentage.
We currently have the TSP which is an investment opportunity for Soldiers to utilize as an addition to their retirement and can be a valuable investment tool for those not wishing to make a go at the 20 years required for the current 50% pay for the rest of your life retirement.
This will be very good for government finance reduction costs, but in this Soldier's opinion not good for the Service Members who risk their lives without hesitation for their country.
http://www.militarytimes.com/story/military/benefits/retirement/2015/06/10/dod-retirement-plan-details-approved/71011882/
The Current Retirement plan does not require Soldiers to invest their own money in order to receive a guaranteed retirement at 20 years. Under the new program Service members will have to take a portion of their pay and invest it toward their retirement with government matching up to a certain percentage.
We currently have the TSP which is an investment opportunity for Soldiers to utilize as an addition to their retirement and can be a valuable investment tool for those not wishing to make a go at the 20 years required for the current 50% pay for the rest of your life retirement.
This will be very good for government finance reduction costs, but in this Soldier's opinion not good for the Service Members who risk their lives without hesitation for their country.
http://www.militarytimes.com/story/military/benefits/retirement/2015/06/10/dod-retirement-plan-details-approved/71011882/
Posted in these groups: 
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Military Career
Retirement Military Career
Edited >1 y ago
Posted >1 y ago
Responses: 47
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20 years in the military is not comparable to any other career. Because of this fact, I think this type of retirement plan is not comparable nor is it representative of the sacrifices service members make. If this plan does get approved, I hope all existing service members will be given the option of the traditional retirement they were promised when the entered the military.
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CW3 (Join to see)
LCDR (Join to see) Thank you for the input, that sounds much more fair to our current force.
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CW3 (Join to see)
2ndLt (Join to see) I hope that is not the case, and there is something that can be done to reward the sacrifices so many service members make. I just don't think matching a 401k contribution does justice to the demands of serving.
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SFC (Join to see)
Kind of funny how the military always suffers and the politicians continue to stuff thier wallets with annual raises.
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CW3 (Join to see)
SFC (Join to see) - I can't believe that our pay and benefits are on the chopping block before so many other things. Blows my mind!
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Suspended Profile
This is actually old news, but it's a hugely horrid mistake.
We have troops up to E7 on food stamps. The Pentagon is CUTTING Active Duty pay and allowances as we speak. These folks can IN NO WAY afford to contribute to any 401K type plan until reaching Senior Enlisted or Field Grad Officer status.
It is another cynical approach to destroying readiness, by ensuring that the best and brightest leave, rather than serving full careers.
The policy of the Obama administration and the Pentagon of putting all of the pain of Sequestration on the military personnel budgets is completely wrong, cold hearted, short sighted and ignorant. There are many other ways to cut the budget besides punishing those at the "Tip of the Spear".
#NoIncumbentsIn2016
We have troops up to E7 on food stamps. The Pentagon is CUTTING Active Duty pay and allowances as we speak. These folks can IN NO WAY afford to contribute to any 401K type plan until reaching Senior Enlisted or Field Grad Officer status.
It is another cynical approach to destroying readiness, by ensuring that the best and brightest leave, rather than serving full careers.
The policy of the Obama administration and the Pentagon of putting all of the pain of Sequestration on the military personnel budgets is completely wrong, cold hearted, short sighted and ignorant. There are many other ways to cut the budget besides punishing those at the "Tip of the Spear".
#NoIncumbentsIn2016
CW5 (Join to see)
E7 on food stamps, really? https://www.dmdc.osd.mil/fssa/
This is our answer to people who decide to have large families and be in the military.
This is our answer to people who decide to have large families and be in the military.
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Suspended Profile
Chief Westbrook, I know there are many issues. Still, the fact remains that those in the military are nowhere near fairly compensated for the risks we/they face day to day and on deployment, and taking in to account the extreme hours we all work/worked...
Sgt Michael Schmidlkofer
If you have E-7s on food stamps, then I seriously question their financial decision making. The military is far from underpaid these days; and receiving untaxed housing and subsistence entitlements is not a good excuse to pump out a new kid after every deployment.
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Suspended Profile
Perhaps. Still, I maintain that the military compensation, especially for enlisted personnel, has never been equal to the private sector. And consider that for junior enlisted personnel in the Navy, ship's berthing is considered the fair value housing. When their married counterparts are living ashore, they have to live on ship...
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