Federal Drive

Panetta: Military retirement won’t change for current service members

Defense Secretary Leon Panetta said any changes to military retirements won\'t affect current service members. The Pentagon is considering proposals made by the...

Federal News Network Staff

August 23, 2011 12:00 pm

< a min read

No decisions have been made yet. But Defense Secretary Leon Panetta said if any changes do come to the military retirement system, they won’t impact current service members.

The Defense Business Board’s draft proposal would replace the current military retirement system with a 401-K-style plan. Veterans would also have to wait until normal retirement age to collect. The plan saves $250 billion over 20 years. It would require Congressional approval.

While Panetta said he will not break faith with the current members of the service and retirees, that doesn’t mean changes won’t come later, for future service members. The Pentagon has said it is looking into the proposal.

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