The new military retirement system has major flaw, financial experts warn

That is not a flaw. That is an explicit design feature. Moreover, it is a key element in making the retirement plan do what its advocates wanted. Whether it sucks or not (it does) is an entirely separate matter. Not only "works as designed" but "works as intended."

As a general rule, whenever someone offers you $X today in lieu of $Y tomorrow, you can rest assured that Y > X, even accounting for time value of money. Else they would not have offered....

we have to remember, at it core, the reforms were put in place to save the government money.

Oh man, I read the actual Military Compensation and Retirement Modernization Commission final report, that discount rate seems to be just pulled out of thin air. Their calculations are just flawed, basically they tried to game the numbers to make it appear that this retirement system is just as good as the old one. It definitely isn't, but that's not necessarily a bad thing. Just focus on how everyone, even those who don't do 20, receive something, but don't try and fudge the numbers just to make a point.