Last month, the Military Compensation and Retirement Modernization Commission released a long-awaited report containing a series of policy proposals designed to decrease the cost of military benefits, including retirement benefits.
One of the more controversial proposals: the phase-out of the military’s current defined-benefit plan in favor of a hybrid plan that features characteristics of a 401(k).
[Proposal details can be read here.]
Now, the Pentagon is digging deeper into the report, and officials are asking for access to the data that was used to form the proposals.
From the Military Times:
“[The commission] claims they’ve done all the analysis but we have not been able to see what’s inside that analysis, so I’m anxious to see it . … We are interested in looking at how the commission came to the conclusion that [its proposed retirement recommendations] would be a better option,” [Defense Department Chief of Naval Personnel Vice Adm. Bill] Moran said.
Military officials are receptive to the idea, Moran said, noting that the Defense Department last year offered its own proposal for military retirement reform that includes some similar features.
Still, Moran said he’d like more information about the commission’s claim that troops would prefer the proposed system and it would not affect retention.
“There are aspects we like and aspects we need more analysis on,” Moran said.
Top personnel officials have been working around the clock to analyze the controversial proposals.
Why is the Pentagon examining the proposals so closely?
The Pentagon’s official view of the report will hold sway on Capitol Hill when it comes time for lawmakers to vote on the proposals.
Photo by Brian Schlumbohm/Fort Wainwright PAO