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 Post subject: Military overhauls retirement system
Post Posted: Nov 22, 2017 7:08 am 
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Military overhauls retirement system in biggest shift since World War II

Quote:
Under the legacy retirement system, military members receive no retirement benefits unless they serve for 20 years, at which point they get a pension that’s equal to 50% of their last pay.

The blended retirement system allows members to start saving immediately. The defined contribution portion allocates at least a 1% match to all military members’ Thrift Savings Plans, which can be increased to as much as 5%, similar to enrolling in a traditional 401(k) plan. To incentivize military members to stay in service longer, between eight and 12 years they get a special, one-time contribution bonus equal to 2.5% of their base pay.

The “catch,” as Meese called it, is that if 20 years of active service is completed, instead of getting a pension worth 50% of your highest 36 months of pay, you only get 40%.

Quote:
All service members who enter the military on or after Jan. 1 will be automatically enrolled in the BRS. Individuals who have already departed the military or who have been in service for 12 years or more, will stay with the old system. But those who are currently on active duty, or in the reserves, having served less than 12 years, will have the choice of opting into the new program.


I couldn't tell if this is a good thing for military members or a step back. Can you?


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