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Thread: Military Compensation Commission report

  1. #1

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    Default Military Compensation Commission report

    In case anyone is interested, today the Military Compensation Committee is releasing it's formal recommendations for changes to the military retirement and benefits of future service members.

    Here is the link. They just posted the final report, and the legislative recommendations, including terminating the military 20-year retirement, and replacing it with TSP matching funds.

    I am reading the report now- haven't had a chance to go into detail yet.

    Here is the link:

    http://mldc.whs.mil/index.php/reports#final


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  3. #2

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    Default Re: Military Compensation Commission report

    Yep- here are the actual legislative proposals, which include:

    1. Changing the retirement system to a TSP 5% matching, similar to federal employees.

    2. reducing the retirement from 50% of retirement at 20 years, to a 40% at 20 years.

    3. Reducing the MAX retirement from 75% of pay at 30 years, to 60% at 30 years.

    4. A BUNCH of other cost saving measures, including cutting tuition assitantance for active duty people, to limit it to only those college courses directly related to their current military job specialty.


    More:
    http://mldc.whs.mil/public/docs/repo...s-FINAL-LO.pdf

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  5. #3

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    Default Re: Military Compensation Commission report

    interesting.
    Do you think that the proposed changes (I know they still have to be enacted) will apply to current military members?
    I have over 20 in and would drop those papers before they enacted the 50/40 rule.
    Practice makes perfect, so practice I do.

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  7. #4

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    Default Re: Military Compensation Commission report

    Quote Originally Posted by rothnroll View Post
    interesting.
    Do you think that the proposed changes (I know they still have to be enacted) will apply to current military members?
    I have over 20 in and would drop those papers before they enacted the 50/40 rule.
    You'll probably be grandfathered.

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  9. #5

    Default Re: Military Compensation Commission report

    Here's another article about it. It says this only affects future members of the military, not those currently serving:

    http://www.fedsmith.com/2015/01/29/p...ider-audience/
    Allocations as of COB Dec 28 : 100% S. | Retirement Date:Dec 2022
    Past Returns:
    2020 31.85%,2019 27.97%,2018 -3.36%,2017 13.10%, 2016 -1.79%, 5Yr Avg 12.61%

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  11. #6

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    Default Re: Military Compensation Commission report

    Quote Originally Posted by Cactus View Post
    Here's another article about it. It says this only affects future members of the military, not those currently serving:

    http://www.fedsmith.com/2015/01/29/p...ider-audience/
    Well, that's just dandy......I wish I could get 8 years of "back investments" for my time! Maybe they'll "refund" my buy in for my FERS annuity, since I wasn't offered any TSP in the '90s/
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  13. #7

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    Default Re: Military Compensation Commission report

    The report says they want to offer a deal to currently serving folks- but no one currently serving would be FORCED to go to the lower retirement.

    It would be a package deal- if you want TSP matching funds and you are currently serving, you would have to agree to take the lower retirement.

    Future enlistees would HAVE to do the TSP and matching funds, and would only get the lower retirement.

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  15. #8

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    Default Re: Military Compensation Commission report

    Sounds a lot like what they did with the CSRS crowd back in the 1980's-

    They said "Take FERS instead of CSRS, and you'll get matching funds and make a lot more money".


    You see how that worked out.....

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  17. #9

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    Default Re: Military Compensation Commission report

    Anyone remember the REDUX retirement they attempted in 1986? It was "repealed" sorta, you could opt for it but you weren't forced into it. It was a disaster and is still a blight on the military's retirement.
    CSB/REDUX

    This sounds like REDUX, part duex

    We better be grandfathered...
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  19. #10

    Default Re: Military Compensation Commission report

    damn, what do you think guys? currently I'm 9 years in, currently an E6, got 11 more to do, that matching sounds pretty awesome.

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  21. #11

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    Default Re: Military Compensation Commission report

    Quote Originally Posted by James48843 View Post
    Sounds a lot like what they did with the CSRS crowd back in the 1980's-

    They said "Take FERS instead of CSRS, and you'll get matching funds and make a lot more money".


    You see how that worked out.....
    Agree, it sounds like a similar deal. I was one of only a few nationwide that switched back then. But I don't have any real regrets...the matches (incl growth) is almost $300K now, with a few years left to go!
    There are 10 types of people in the world. Those who know binary, and those that don't!!
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  22.  
  23. #12

    Default Re: Military Compensation Commission report

    Quote Originally Posted by James48843 View Post
    Yep- here are the actual legislative proposals, which include:

    1. Changing the retirement system to a TSP 5% matching, similar to federal employees.

    2. reducing the retirement from 50% of retirement at 20 years, to a 40% at 20 years.

    3. Reducing the MAX retirement from 75% of pay at 30 years, to 60% at 30 years.

    4. A BUNCH of other cost saving measures, including cutting tuition assitantance for active duty people, to limit it to only those college courses directly related to their current military job specialty.


    More:
    http://mldc.whs.mil/public/docs/repo...s-FINAL-LO.pdf
    Haven't read the report or delved into the finer details, but it sounds good to me.
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