Military May Change Retirement Plan

The Military Compensation and Retirement Modernization Commission believes this plan will help in modernizing a current plan. Veterans believe young recruits could be throwing away the hard work they’ve put in by leaving the armed forces too early.
“I mean if you’re going to go through the training and the hardship to get to a certain point in your military career, you don’t want to just throw that away. You want to continue on with your career,” said Terry Applebee of the American Legion Post 119.
The military’s newest plan would be more of a matched 401k style plan unlike the current Cliff Vesting plan they have now.
Young service members could start to see benefits after 12 years of service. The new plan was spurred due to budget cuts after 14 years of war.
The Government could benefit by cutting their deficit, but lose out on keeping valuable talent.
For those that are currently enlisted or looking to enlist in the armed forces, the new way may be the best retirement plan for them. But veterans believe if you’re looking at a career in the armed forces, the old way is the best way.
“Some of these options may be a feasible plan for some people, but the majority of the people in the military make it a career. Dedicated military people prefer to put in the full 20 years,” said James Corley of the American Legion Post 2434.
The plan is currently being reviewed by Congress. It still has a long way to go before it is put into action.

Categories: Mississippi State News, News

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