Military Pension Overhaul Moves Forward As Senate Committee Backs Plan

In January, a government panel made a series of recommendations for overhauling the U.S. military retirement system, including a shift from a defined-benefit system to a 401(k)-style system.

The House of Representatives Armed Services Committee last month backed a version of the proposal; now, the overhaul is moving forward as a Senate committee has thrown its support behind a similar, but slightly different, version of the proposal.

From the Military Times:

[Sen. Lindsey] Graham said the Senate draft […] will include changes to military retirement benefits based on recent recommendations from the congressionally mandated Military Compensation and Retirement Modernization Commission.

That plan would replace the current 20-year, all-or-nothing retirement system with a 401(k)-style retirement plan and pension-style retirement payout. The change would allow all troops to receive some retirement benefits, but has received criticism from some military advocates over fears it could hurt retention.

Graham said his panel’s version of retirement reform differs from what’s in the House bill, meaning the two retirement overhaul plans would need to be reconciled in a conference committee.

Both the Senate and the House Committees are expected to vote on the respective measures next week.

Photo by Brian Schlumbohm/Fort Wainwright PAO