Will the proposed retirement plan effect your active duty status?

2015-05-21T22:58:55-04:00

Should the proposed retirement plan changes go into effect then troops who serve fewer than 20 years will be getting a better deal considering under the current system they get no retirement benefit. The proposed new model offers them a personal retirement savings of up to 6% of basic pay. For those who plan to spend 20 or more years on active duty the proposed plan seems far more complex. For those currently on active duty would you opt into the new system or will you exercise a grandfather clause?

Response by COL Charles Williams made May 21 at 2015 11:06 PM

2015-05-21T23:06:03-04:00

I am already gone to the far side, so my comments my not be for you... But, this would not have impacted me. One thing is certain in the Army... Change.

Response by PO1 John Miller made May 22 at 2015 12:20 AM

2015-05-22T00:20:50-04:00

I personally think one would be silly to opt into the new system if they have a chance to be grandfathered into the traditional system. That's just my opinion though!

Response by MAJ Private RallyPoint Member made May 22 at 2015 6:58 AM

2015-05-22T06:58:58-04:00

It really depends on the fine print details of any new retirement system. This conversation is far from over, and I'm hopeful that, whatever the form of the final changes to the retirement system, DoD will make a detailed retirement calculator available so folks can manipulate all the variables before making a decision. I hope folks don't base decisions solely on the data presented by the Commission or by DoD, because the assumptions used and the underlying data appears to have been selectively manipulated to sell this program as a good deal for everyone. I'd expect that most folks grandfathered in, especially those with 12 or more years in or so, will opt to stick with the traditional plan. But, really, there are way too many variables to assess, and each person will come to a different conclusion based on their individual level of risk tolerance, market optimism, and financial knowledge.

Response by Sgt Aaron Kennedy, MS made May 22 at 2015 7:12 AM

2015-05-22T07:12:28-04:00

It depends on the Vesting Point. The issue we run into is whether the troop actually gets to keep the money they put into the system. Without seeing the actual plan, don't believe anything.