NEW RETIREMENT SYSTEM

New Retirement System

New Retirement System

Introduction

The retirement system of the military is indisputably the most excellent retirement agreement around the world. Not like the majority of retirement plans, the U.S. Armed Forces presents a retirement fund, with reimbursement, that begins just as the individual gets retired, regardless of the fact that how old the retiring individual is. This poses the fact that an individual can begin to collect a normal retirement fund as early as 37 years old. This shows that how beneficial and how supporting is the retirement system of the military is.

The Defense Business Board is suggesting that the guaranteed pension after 20 years of military service is an unsustainable entitlement. The board's idea is to replace the pension with a 401(k)-style retirement plan. The DBB says its plan would cut costs while also offering retirement benefits after as little as four years of service. Those with less than 20 years of service now get nothing (Mathison, 2011).

The howls were instant and shrill. How can they do this to our people in uniform? How can these heroes be denied the pension they so richly deserve? How can we throw veterans into a tight job market without some kind of financial safety net?

Discussion

Pros and Cons of the New Proposed Military Retirement System

Of course, the proposed plan is supple. The majority of service affiliates yet perceive the present retirement organism as the finest pact. Dissatisfaction is rapidly dripping through the position of the service, as they notice one more advantage being stripped away from their hands, as they have observed their general health system vanish in good turn of Tricare.

The critics need to calm down and just think a little. Let's leave the accounting to bean-counters and spinners. If this change becomes law, the first ones who could possibly feel its effects are still in high school, maybe younger (Dushi, Iams & Lichtenstein, 2011). Congress would grandfather service personnel far enough into the future to assure that any recruit promised a pension after 20 years would get it.

With that assumption, the argument about poor employment prospects loses steam because nobody knows what the job market will look like when veterans covered by the new system return to civilian life. And think about the millions who serve their country for less than 20 years. In addition to their current harvest of benefits, they could add a down payment on their retirement ...