We still have concerns that the 20% reduction in a service member's retired pay will fail to draw members to 20 years of service and beyond.
Alexandria, Va. (PRWEB) June 11, 2015
The Department of Defense submitted to Congress on Wednesday its military retirement reform proposals that recommended creating what it described as a “blended defined benefit and defined contribution" military retirement system.
The Military Officers Association of America (MOAA) provided the following response to the DOD’s recommendations.
"MOAA has reviewed the Pentagon’s retirement recommendation and is encouraged that the Pentagon corrected some of the commission's shortfalls that MOAA had identified to include the COLA -1 percent repeal, the disability retirement calculation, and the government match beyond 20 years of service,” said retired Navy Vice Adm. Norb Ryan, president and CEO of MOAA.
Ryan continued, “We are thankful the Pentagon provided its recommendations early enough so that House and Senate leaders can consider them in conference this year. However, let's be clear, the current system provides great predictability and the TSP's rate of return is at the whim of market fluctuation. We still have concerns that the 20-percent reduction in a service member's retired pay will fail to draw members to 20 years of service and beyond.”
Military Officers Association of America (MOAA) is the nation’s largest officers association with more than 390,000 members from every branch of service, including active duty, retired, National Guard, Reserve, and former officers and their families and survivors. MOAA is a nonprofit and politically nonpartisan organization and an influential force in promoting a strong national defense. MOAA represents the interests of service members and their families in every stage of their lives and careers, and for those who are not eligible to join MOAA, Voices for America’s Troops is a nonprofit MOAA affiliate that supports a strong national defense. For more information, visit:
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