Oh, and this would make an effective 5% pay cut to military pay...
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Oh, and this would make an effective 5% pay cut to military pay...
My 2 cents worth...if I were given a choice when I was hired in 85, I would have chosen CSRS. Easy math, no 3 legged retirement, no worrying about how the market will be, or whether I will outlive my TSP or when to collect Social Security, etc.
If I were CSRS, I would be retired by now. I still would have contributed to TSP even without matching. TSP would have been the soy sauce on my adobo.
On a bigger scale, no regrets...others have no pension to look forward to other than Social Security..
This is good news for those who only spend 1 or 2 hitches.
For those who make the Military a career this is REDUX 2.0. A bit better than the original.
The reduction is part due to the matching funds for the TSP account. If and it's a big IF you are able to maximize your TSP along with the matching funds you could be better off under the new retirement system. Notice I said could. Govexec.com has an article that talks about the panel recommendation. The article also states that only about 17% of the military actually get to 20 years.