WASHINGTON - The military retirement system has long been considered untouchable - along with Social Security and Medicare. But in these days of soaring deficits, it seems everything is a potential target for budget cutters. A Pentagon-sponsored study says military pensions are no longer untouchable - they're unaffordable.Read the rest here.
CBS News investigative correspondent Sharyl Attkisson reports high-level, closely-held meetings are taking place at the Pentagon regarding a radical proposal to overhaul retirement for the nation's 1.4 million service members - a bedrock guarantee of military service.
The proposal comes from an influential panel of military advisors called the Defense Business Board. Their plan, laid out in a 24-page presentation "Modernizing the Military Retirement System," would eliminate the familiar system under which anyone who serves 20 years is eligible for retirement at half their salary. Instead, they'd get a 401k-style plan with government contributions.
They'd have to wait until normal retirement age. It would save $250 billion dollars over 20 years.
Douglas Holtz-Eakin, former director of the Congressional Budget Office says it's very important that the military attack its retirement issues. "We're talking about an underfunding that starts to look like hundreds of billions of dollars in the next 20 years. And if you want to maintain the core mission which is to defend the nation and have the strategic capabilities we need, we can't have all their money tied up in retirement programs."
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4 comments:
"Defense Business Board".
Very funny!
How about promising retiring soldiers 40 acres and a mule?
That's what the Roman Empire did. Worked for quite a while.
"$250 billion dollars over 20 years"
If we just ended the wars and brought everyone home, we would be saving about $25 billion/year alone, according to this website (whose data is 4 years out of date): http://armscontrolcenter.org/policy/securityspending/articles/gwot_spending_burn_rate/
Although elsewhere, I've seen that the total cost of both of (just) those wars is already around $1.5 trillion.
Jaw dropping.
The good news is now that they've raided the pension plans, soldiers won't consider the government as their first loyalty.
We need a thorough re-thinking of the whole 401k/MSA/ESSA/grab-bag beloved of the conservative mainstream and the Third Way. It is really just a boondoggle for the Wall Street casinos. "The whole head is sick..." -Isa.
I don't give a damn who it hurts, cut more taxes (taking off tri-corner hat now).
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