New military retirement system gets Pentagon OK

New military retirement system gets Pentagon OK

Fantastic news for the vast majority of serving military members. The DoD is finally taking steps to move away from the old-school “20 or nothing” retirement system. From Andrew Tilghman at Military Times:

The proposed system would provide for the first time a modest retirement benefit for the vast majority of service members who leave the military before reaching 20 years of service to qualify for the traditional pension.

I actually wish this had been in place when I started. Contribute 5% of base pay to get a total of 11%? Yes please. Compound that over 20 years and that’s a hefty sum.

But the best part is that the people who don’t serve 20 years can walk away with some extra savings. It just makes sense, and it’s time the DoD modernized compensation to reflect today’s workforce, not the workforce of the 1940s.

The proposed system would provide for the first time a modest retirement benefit for the vast majority of service members who leave the military before reaching 20 years of service to qualify for the traditional pension.