Posted on Feb 3, 2016
SFC Asst. Bn S 3 Ncoic
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Posted in these groups: Retirement logo Retirement38326e5d Military Pay7a1e50f4 TSP
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SPC Paul Jennings, J.D.
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It needs to be improved. The TSP matching is primarily designed to replace the lost pension benefit of 10% or 0.5% per year of service. However, the matching amount is not enough to actually offset this loss. Ironically, the Military Retirement Modernization Commission actually based their findings off a 10% TSP contribution, which overlooks that half of this contribution, the service members elective amount, applies just as much under the old system as the new. Additionally, they used an outrageous calculated return to come to their conclusions. So, while it is beneficial to those who get out early since previously they received nothing, it still falls short of its intended purpose.
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LTC Paul Labrador
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Need another survey option: "Bad for retention"
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LTC Yinon Weiss
LTC Yinon Weiss
>1 y
I look at it the other way. I think it's the best thing possible for retention. Those that don't want to serve anymore and are just "sticking it out" for the retirement benefit will get out sooner. Those that want to continue to serve will see improved morale and greater advancement opportunities. It will sharpen the military into a force of people who only love their jobs, and that is always better for the institution and hence great for retention. The military will retain more of its best people, which creates a virtuous cycle that gets more people to stay in for the right reasons.
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SMSgt Pavements and Construction Equipment (DirtBoyz)
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>1 y
LTC Yinon Weiss - while not a completely bad thought line, I have to disagree a little. When we went through the force drawdown two years ago and people were given the "early-out" option, the ones that left the service were the ones with something to offer. I watched the guys with the degrees, the ones that had served in unique leadership positions/units walk out the door into quality jobs that paid them well. On the other hand, the ones that didn't possess a degree and have lurked around in the shadows of the career field chose to stay because they didn't have anything to offer in the outside world. Of course there was a large group in the middle as well.

I joke from time to time that the only reason I made E-8 is because a lot of great SNCOs decided to hang it up to clear room for me...there probably is some truth to that honestly. So while I agree that we don't want people purely sticking around for the retirement offered them at 20 years, I fear this will only enhance that problem. Those that get out early and take their retirement with them will be the ones that not only are tired of the military but they are also the ones that have best prepared themselves to be leaders. We will (IMO) be stuck with a large group that rose to the top purely because the cream was scraped off ahead of them.
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SFC Asst. Bn S 3 Ncoic
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>1 y
Roger Sir.
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LTC Yinon Weiss
LTC Yinon Weiss
>1 y
SMSgt (Join to see) - You make some good and sound points. My only counter to that is... do we want the US military to be the kind of organization that retains people basically by coercion, or by motivation? We probably both agree that it should clearly be the latter. The challenges you describe are very real, but they are not the problems, they sound more like the symptoms. If we address the root problems then the symptoms will be alleviated.

Some of the root problems are we have leaders in place that really shouldn't be there. We also have top performers who's careers stagnate because they can't rise up fast enough, so of course they get out where private organizations value them more. We need to fix this first. We need to ask why some of the top performers with an education get out... not find financial tricks to keep them in place.

By no longer forcing people to stay in the military for financial retirement gain past the time they really wanted to continue to serve, I believe we will create a better command climate. Short term retention may appear to suffer, but long term retention will benefit. This is one of the steps to address the "demand" problem of good people wanting to leave, rather than trying to manipulate the "supply" problem of good people wanting to leave by changing eligibility.

I think we're on the same page overall. We want great people to serve and we want them to have great opportunities when they ultimately transition. I think we're just looking at this particular subject from different time horizons, and when these changes will really have benefit to the military.
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1SG First Sergeant
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Contribution matching is long overdue for the military, the new system is great for Soldiers who do not plan on making the military a career. But I don't see it as a better retirement option when compared to the current retirement system.
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SFC Phillip Wiley
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Ensure when you retire that you check your first pay check. Took me 4 months to get mine corrected as someone had marked redux (something I never did) and I was loosing over 250 dollars a month. I have to agree if you have no plans to stay 20 then it may work for you.
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SFC James Reeder
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Nothing beats a Roth IRA as far as I'm concerned.
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SFC Armor Crew Member
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Before I joined the military, I worked for a company called Stryker Medical. This was back in the late 90's and the company was matching stock for stock and adding 1/1 by what ever the employee decided to put in their retirement fund. Back than this was a great plan for young individuals to build a fast retirement fund. The program the army is going to, doesn't help Soldiers with over 10 years of service. A 20 year retirement is probably one the best programs that army has used to help Soldiers move on after service. I don't think I know of any other company that pays a retirement after 20 years besides for other federal jobs. I say no to TSP and the matching. I'm too far in my career to start over with a new program that only helps those that are enlisting right now.
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SGT(P) Unit Supply Specialist
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SFC (Join to see) Just posting a better pic for reference.
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LTC Yinon Weiss
LTC Yinon Weiss
>1 y
Thanks. I updated the original post. This is actually the best chart I have seen so far explaining it. Good resource.
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SSG Comsec Custodian
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If you got in before 2006 it doesn't really matter. I got all excited until I read that and then I put the posting back where it was. It's only for people who got in the last 10 years. Seems legit. The last round of bonuses were too. 20k for new recruits to instagram how snazzy they look in uniform at BCT and AIT. TY Uncle Sam.
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PO3 Electrician's Mate
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If you never plan for a 20 years? then it will be an awesome deal.

The good thing is ... if something preventing you to get to 20 years ... you will glad you got the match TSP.
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