What would be the impact of merging Active and Reserve retirement into a single program?

2020-05-14T09:42:51-04:00

Currently the Reserve forces have a retirement system that if they achieve 20 "Good Years" determines the pension they will receive based on the number of points they earn through service. The age they receive the pension is reduced from 60 based on the amount of time spent on reserve mobilizations.

What if we had a single retirement system that was based on service points similar to the reserve system now but all active duty would reduce the collection age? So someone who did 20 years of active duty would have the collection age reduced to 40. My first thought is it would integrate the Active and Reserve components and make moving between them a more viable option for service members.

Response by MSG Private RallyPoint Member made May 14 at 2020 9:49 AM

2020-05-14T09:49:24-04:00

That would be awesome. It won't happen, but it would be awesome.

Response by CPT Private RallyPoint Member made May 14 at 2020 10:02 AM

2020-05-14T10:02:47-04:00

It would simplify a lot of things. Assuming you mean the inclusive term "Reserve Component". For the Soldier it's a no-brainer and the results to retention would be pretty positive I think.

It's possible with a common pay system / retirement system / personnel system... maybe IPPS-A will show us that it's possible and we should do it. Like DIMHRS...

Response by SFC Michael Hasbun made May 14 at 2020 10:31 AM

2020-05-14T10:31:43-04:00

If they did 20 years of Active Duty, wouldn't they simply receive an Active Duty retirement, where age is irrelevant?

Response by MAJ Ken Landgren made May 14 at 2020 12:30 PM

2020-05-14T12:30:12-04:00

I don't see it from a technical point of view. Reserve and Active Duty pay is on two different systems. Merging the two would be difficult.

Response by Lt Col Jim Coe made May 14 at 2020 5:16 PM

2020-05-14T17:16:25-04:00

It's more likely, IMO, to see the military retirement systems move toward the civilian systems over the next 10 years. The introduction of TSP into the retirement programs is the first step. Over time Congress may use increasing TSP and reducing classic retirement pay as a means to reduce cost and increase flexibility. Eventually, the military could see a retirement system for all components based on a TSP. Perhaps the Service would make a minimum contribution to every member's TSP. It would give every SM, regardless of the years served, a retirement savings account. The TSP could be transferred to an IRA or 401k. This would match the trend in the private sector where 401k is the norm and corporate retirement plans are almost exclusively for union jobs.