On Monday, President Obama said he support cutting veterans retirement pay by 20 percent and in turn offer a new defined-contribution benefit for troops who leave before 20 years of service per the Washington Times.
President Obama sent a letter to congressional leaders saying the proposals are:an important step forward in protecting the long-term viability of the all-volunteer force, improving quality-of-life for service members and their families, and ensuring the fiscal sustainability of the military compensation and retirement systems.
The Military Compensation and Retirement Modernization Commission had issued a report in January that called for reducing the size of traditional military retirement. They said the pay should be reduced by about 20 percent and should offer a defined-contribution benefit for military personnel who separate before 20 years of service.
Do you think the 2nd Amendment will be destroyed by the Biden Administration?(2)
Those who serve more then 20 years will not have any changes to their benefits.
Lawmakers on both sides have raised questions about the panel’s belief that the changes will both satisfy service members as well as save money for the Treasury.
It is said Defense Secretary Ashton Carter is trying to get the proposals through Congress and into law before Obama leaves office.Carter is also considering easing up some of the listing requirements for certain areas of the military.
Todd Harrison from the Center for Strategic and Budgetary Assessments told USA Today:
About 83% leave with absolutely nothing. That’s especially true when you think about the people who have actually been fighting the wars in Afghanistan and Iraq.
Under the new plan, the Defense Department would also be required to contribute up to 6 percent of basic pay to a soldier’s retirement savings account.