DoD board recommends military retirement overhaul

The Defense Business Board has unveiled a plan to significantly overhaul the Defense Department’s retirement system for military personnel, Air Force Times reports.

The plan, which would phase out the longstanding cliff-vesting system, would contribute money to soldiers’ retirement savings instead of putting it into a future monthly pension.

According to the report, all troops would receive yearly retirement contributions – possibly as much as 16.5 percent of a member’s annual pay – even if they don’t stay for the customary 20 years. The contributions would be deposited into a mandatory version of the Thrift Savings Plan.

Online Chat: Beth Killoran, deputy assistant secretary for Information Technology and chief information officer at HHS, on March 28.

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

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