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DoD board recommends military retirement overhaul

The Defense Business Board has proposed major changes to military retirement by transitioning from its cliff-vesting system to a system of yearly retirement con...

Federal News Network Staff

July 26, 2011 5:11 pm

< a min read

The Defense Business Board has unveiled a plan to significantly overhaul the Defense Department’s retirement system for military personnel, Air Force Times reports.

The plan, which would phase out the longstanding cliff-vesting system, would contribute money to soldiers’ retirement savings instead of putting it into a future monthly pension.

According to the report, all troops would receive yearly retirement contributions – possibly as much as 16.5 percent of a member’s annual pay – even if they don’t stay for the customary 20 years. The contributions would be deposited into a mandatory version of the Thrift Savings Plan.

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