Posted on Dec 5, 2015
Current Military retirement requires potential recall. With new plan, what is the end product?
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So, we all know (or should know), that a 20 year retirement is akin to receiving a "retainer fee". We are subject to recall at the nation's request. With the re-structuring of the retirement program to become less "cliff-vested" and offer some type of retirement at earlier time frame.... is there any type of obligation to anyone receiving these funds to return to service in time of need? is there a greater pay-off at 20+ years that obligates THEM to some type of recall (at the nation's request)? I JUST had this thought hit me! What is your take?
Posted in these groups: 
Retirement
Military Pay
Retirement Military Pay
Posted 10 y ago
Responses: 5
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Just to entertain. The Space Force got me chimed in on the news. Well I don’t have much physical profile but I got 4 books for my medboard for psych evaluation. Wish I’d get recalled in. Yet, I signed the line to accept retirement right when I found out I could’ve just served in garrison. I’d say back back and gimme 50 feet. And gimme some spaace duuuu!
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In any agreement The "House" always win! So you can better your retirement dollars on the recall option will always be there.
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There's greater pay-ins (in theory) during service via Bonuses, and 401k style Matching, which in theory creates a similar obligation.
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As long as there is a defined benefit component, I expect it will continue to be a "retainer" rather than a true "retirement", and you (we) will remain subject to recall. I have seen nothing that would indicate that they are considering changing that, though it would be an interesting idea.
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COL Vincent Stoneking
Maj Chris Nelson - My understanding is that the defined benefit still kicks in at 20 years of service. The 6 years only entitles you to the 401K-style defined contribution portion (specifically, the matching funds that the .gov put in). The difference is the GOV check for life and being placed on the retired reserve.
I don't expect that the 401K-type benefits will come with that string attached.
I don't expect that the 401K-type benefits will come with that string attached.
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Lt Col John Tringali
As far as I read, at 20 years you get nothing other than the knowledge that you have something in a 401k that you'll access at 59 1/2. As a 42 year old LtCol, you go from what amounts to a $2m annuity ($50k/yr) to nothing different than working 20 years at Google.
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COL Vincent Stoneking
Lt Col John Tringali - That is incorrect. What was passed was a blended plan. You get roughly 80% of the current 20 year retirement and the matching 401K element.
Not saying it's great. Any move away from a defined benefit towards a defined contribution is a step in the wrong direction, but it is NOT "just a 401K."
Not saying it's great. Any move away from a defined benefit towards a defined contribution is a step in the wrong direction, but it is NOT "just a 401K."
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