Posted on Jul 20, 2015
The Pentagon is backing the new retirement plan, which is similar to a 401K. What are your thoughts on the projected plan?
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Pentagon is officially backing a "blended" system that would shrink the size of the current pension by about 20 percent yet supplement that benefit by offering government contributions to individual retirement investment accounts.
The Current Retirement plan does not require Soldiers to invest their own money in order to receive a guaranteed retirement at 20 years. Under the new program Service members will have to take a portion of their pay and invest it toward their retirement with government matching up to a certain percentage.
We currently have the TSP which is an investment opportunity for Soldiers to utilize as an addition to their retirement and can be a valuable investment tool for those not wishing to make a go at the 20 years required for the current 50% pay for the rest of your life retirement.
This will be very good for government finance reduction costs, but in this Soldier's opinion not good for the Service Members who risk their lives without hesitation for their country.
http://www.militarytimes.com/story/military/benefits/retirement/2015/06/10/dod-retirement-plan-details-approved/71011882/
The Current Retirement plan does not require Soldiers to invest their own money in order to receive a guaranteed retirement at 20 years. Under the new program Service members will have to take a portion of their pay and invest it toward their retirement with government matching up to a certain percentage.
We currently have the TSP which is an investment opportunity for Soldiers to utilize as an addition to their retirement and can be a valuable investment tool for those not wishing to make a go at the 20 years required for the current 50% pay for the rest of your life retirement.
This will be very good for government finance reduction costs, but in this Soldier's opinion not good for the Service Members who risk their lives without hesitation for their country.
http://www.militarytimes.com/story/military/benefits/retirement/2015/06/10/dod-retirement-plan-details-approved/71011882/
Posted in these groups: 
Retirement
Military Career
Retirement Military Career
Edited >1 y ago
Posted >1 y ago
Responses: 42
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Generally speaking... based on previous iterations.
The plan you joined under is the plan you have, unless you change to the new one.
In this case (which doesn't exist yet), DO NOT CHANGE.
"Investment based" plans rely on "time" (lots of it) to be equivalent to percentage based plans (current system).
The plan you joined under is the plan you have, unless you change to the new one.
In this case (which doesn't exist yet), DO NOT CHANGE.
"Investment based" plans rely on "time" (lots of it) to be equivalent to percentage based plans (current system).
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Sgt Aaron Kennedy, MS
SSG Joseph Geraci It reads badly. But "generally" that would apply to anyone who joins after the plan goes into effect, as opposed to those who are in now.
THere may be some caveats which allow "buy ups" (increased TSP contributions) for those currently serving, but it's unlikely to affect anyone currently in.
THere may be some caveats which allow "buy ups" (increased TSP contributions) for those currently serving, but it's unlikely to affect anyone currently in.
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I think its all still theoretical, I don't think any of the recommended changes have been adopted yet.
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