Budget

DoD downplays talk of radical retirement changes

In contrast to media reports predicting radical changes to military retirement, DoD said there are no immediate plans to change the retirement system.

Federal News Network Staff

August 16, 2011 7:56 am

< a min read

For years, the military retirement system has been considered untouchable. And while recent reports indicate the Defense Department may be considering some tweaks, DoD has downplayed talk of major changes.

CBS News reported Monday on recent proposals from the Defense Business Board, an influential Pentagon panel. One of its recommendations — still in draft form — called for the Army to In a pre-emptive statement issued before the CBS report even aired on television, Chairman of the Joint Chiefs of Staff Adm. Mike Mullen said any changes to military retirement would be studied carefully and then “grandfathered in,” thus not affecting current troops.

Still, a Pentagon spokeswoman said officials are reviewing the board’s recommendations.

Jim McAleese, founder of McAleese and Associates, a government-contracts consulting firm, told Federal News Radio additional cuts to military healthcare and retirements remain on the table.

He said longstanding cost-saving efforts at the department have focused on two areas. One is squeezing greater efficiency from DoD spending. The other is cutting defense operating costs, or what McAleese characterized as “this insidious 5-7 percent growth per year that you’re seeing from military personnel accounts,” which includes retirement spending, among other things.

The board’s recommendations would require Congressional approval to take effect.

This story is part of Federal News Radio’s daily DoD Report. For more defense news, click here.