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The armed forces have stepped back from the pension “cliff,” and those in uniform will now get the kind of plan that is familiar to many civilians.
Gary Bass was 17 when he joined the Marines. “I really wanted to get out of my small town, and make a difference in the world,” he said.
Mr. Bass, who grew up in Central Point, Ore., went on to a 30-year career in the Marines. He became a sergeant major — the highest enlisted rank in the corps — and, among his assignments, served for four years as a recruiter in the Seattle area. There, he saw many other young men and women enlisting for reasons similar to his.
“They joined because they were patriotic, and because they wanted to be part of something larger than themselves,” he said. “They weren’t joining because of the retirement benefits.”
And yet, over the past year, that is exactly what many Marines — as well as members of every other branch of the United States military — have been talking about.
In the past year, the military’s retirement plan has undergone its most comprehensive change since World War II. The old system — a defined “cliff vesting” pension plan — is out. The new plan — a defined contribution plan known as the B.R.S. (Blended Retirement System) — is in.
Gary Bass was 17 when he joined the Marines. “I really wanted to get out of my small town, and make a difference in the world,” he said.
Mr. Bass, who grew up in Central Point, Ore., went on to a 30-year career in the Marines. He became a sergeant major — the highest enlisted rank in the corps — and, among his assignments, served for four years as a recruiter in the Seattle area. There, he saw many other young men and women enlisting for reasons similar to his.
“They joined because they were patriotic, and because they wanted to be part of something larger than themselves,” he said. “They weren’t joining because of the retirement benefits.”
And yet, over the past year, that is exactly what many Marines — as well as members of every other branch of the United States military — have been talking about.
In the past year, the military’s retirement plan has undergone its most comprehensive change since World War II. The old system — a defined “cliff vesting” pension plan — is out. The new plan — a defined contribution plan known as the B.R.S. (Blended Retirement System) — is in.
The Military’s New Retirement Option
Posted from nytimes.com
Retirement
Pension
Money
Economics
Posted >1 y ago
Responses: 4
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Was getting into the meat of the story but the subscribe pop up would not let me read more.
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PO1 William "Chip" Nagel Since the 401 doesn't seem to work well for many civilians,why does the military think it will work for them?
While i can see young military not worrying about retirement and usually only serving a few years. They do have benefits even though they leave,not retirement,but educational,that allow them to advance better in the civilian world and to save toward their eventual retirement,for many severance is also there after a specific amount of years,though they did not reach retirement. That equals quite a "nest egg" . I really don't see an advantage to this option for service members.
While i can see young military not worrying about retirement and usually only serving a few years. They do have benefits even though they leave,not retirement,but educational,that allow them to advance better in the civilian world and to save toward their eventual retirement,for many severance is also there after a specific amount of years,though they did not reach retirement. That equals quite a "nest egg" . I really don't see an advantage to this option for service members.
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The Military’s New Retirement Option (Published 2019)
The armed forces have stepped back from the pension “cliff,” and those in uniform will now get the kind of plan that is familiar to many civilians.
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