It used to be that any serious discussion about changing Social Security was called the “third rail of politics;” touch it and you die! Deadlier still, was any consideration of reducing military benefits, especially the retirement system. But that taboo is now not only being talked about, it is being given serious consideration. The Pentagon is eyeing significant changes to the military retirement system in an effort to stave off projected future costs that it considers unsustainable.
While it is important for the government to get a handle on spending – this fiscal hawk won’t dispute that – tinkering with the military retirement system deserves a huge flashing yellow caution light. The military’s retirement program is not only a strong recruitment tool, but it is also a major retention incentive. If the Pentagon does not proceed with caution, it could topple an effective system of keeping men and women of experience in the ranks who help train the next generation of servicemembers.
Last month, the Defense Business Board (DBB), a group of senior Pentagon officials, conducted a study of the retirement system and came up with some initial observations and recommendations for changes. The results of the meeting are contained in a set of briefing slides which this author was able to obtain: Modernizing the Military Retirement System.
The DBB’s main recommendation is to restructure the retirement system into something similar to a 401(k) plan. Military members would become vested in the plan much earlier than the current 20 year system, but they likely would be unable to draw upon their benefits until they reach age 65 (unlike the current system where benefits start upon retirement).
In addition to my concerns about a loss of experience because we de-incentivize staying for 20+ years, I have some heartburn with the Pentagon’s methodology in how it approached the subject. The DBB is a group of graybeards, senior civilian bureaucrats who are unaffected by the recommendations they make. I would challenge the DBB to include a few junior enlisted members, like the E-3 with a family, collecting food stamps, and making $24K a year. Now that would be perspective!
I also have a few demands. Before we give any serious consideration to saving the budget on the backs of our underpaid military force, I’d like to see the following:
- Pass a balanced budget amendment (maybe that’s all we really need)
- Revamp all civilian federal employee pay and benefit programs and look for similar cost savings (there are some gold-plated benefits packages out there)
- Eliminate federal employee labor unions (the cause of many of the generous pay and benefit perks noted above, and since the military cannot belong to unions (for good reason), neither should any federal employee)
- Subject Congress to the same retirement plan the DBB comes up with for the military (it’s only fair)
- Institute a discharge program for members of Congress similar to the one the military uses. An Airman who receives a Dishonorable Discharge typically forfeits all pay, allowances, and retirement benefits. Imagine if we could dishonorably discharge the likes of Anthony Weiner and not have to pay his retirement? Now that would drain the swamp!
I can say from experience that the military retirement system as it exists today is a key component to our strong all-volunteer force. We not only entice good recruits, but we keep people in the force long enough to gain valuable experience and pass it along to the younger troops. I fear the DBB is playing a high-stakes Jenga game, and if it tugs on the retirement block too hard, it could topple a fragile system of experience and expertise.
Mike Angley is the award-winning author of the thriller series, the Child Finder trilogy. He is a retired USAF Colonel and 25-year career Special Agent with the Air Force Office of Special Investigations (OSI). Follow him on Twitter: @MikeAngley, FaceBook: https://www.facebook.com/mike.angley, and visit his website: www.mikeangley.com.
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