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Defense board proposes military retirement changes

Last post Sat, Aug 27 2011 7:04 PM by Nords. 10 replies.
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  • Mon, Aug 15 2011 7:54 PM

    • Nords
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    Defense board proposes military retirement changes

    It's been pretty quiet around here! I hope everyone's having a good summer. Or, for those of you raising kids, I hope you're having a good back-to-school...

    In the last couple weeks there have been a lot of sensational headlines about changing the military retirement system. Unfortunately it's mostly media hype, because the idea is coming from a group hired by the Department of Defense to propose changes to the military retirement system. This group hasn't even finished their study yet but they've managed to leak inflammatory verbiage to the press.

    Here's the actual presentation:

    http://dbb.defense.gov/pdf/DBB_Military_Retirement_Final_Presentationpdf.pdf

    Here's a blog post on that presentation:

    http://the-military-guide.com/2011/08/10/military-retirement-the-latest-overhaul/

    Bottom line? When the military tried to overhaul the retirement system in 1986 with REDUX, retention plummeted. In 1999 the DoD ended up restoring the previous retirement system. I wouldn't expect any significant changes from this proposal.


    Officially Recognized Stretchpert in the Military Family Finances forum

    Author of the non-profit book written by military for military: The Military Guide to Financial Independence and Retirement-- now on sale at Impact Publications. For more info see my profile.
  • Tue, Aug 16 2011 12:10 AM In reply to

    • gayla50
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    Re: Defense board proposes military retirement changes

    this is a big point for my Brothers Retired Military ..  and for my BIL he is retired too.

    how can they even try to do this to this country Heroes

    Gayla

    Officially Recognized Stretchpert in Frugal Food and Cooking and in Slow Cooker Foods



    Purpose is what gives life a meaning
  • Mon, Aug 22 2011 10:41 PM In reply to

    • Nords
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    Re: Defense board proposes military retirement changes

     Good (reassuring) article today from Military Times columnist Tom Philpott

    "Don't Fear Scary Retirement Headlines":  http://www.military.com/features/0,15240,234972,00.html

    "Despite overheated headlines, no Department of Defense leader, civilian or military, has embraced this alternative pension system. Before he left office in July, then Defense Secretary Robert Gates did call for retirement reform. But Gates said any changes are likely to "grandfather," or protect, the current force. Adm. Mike Mullen, chairman of the Joint Chiefs, seconded that view last week, saying retirement changes have to be implemented with care and should not break faith with current members."

    Officially Recognized Stretchpert in the Military Family Finances forum

    Author of the non-profit book written by military for military: The Military Guide to Financial Independence and Retirement-- now on sale at Impact Publications. For more info see my profile.
  • Mon, Aug 22 2011 11:09 PM In reply to

    Re: Defense board proposes military retirement changes

    Nord I know that the vets have some tri care I was told threw one of the posts say that there is not going to be any tricare for the older vets that have retired guess this just a question have you heard anything about it or is propganda just to wake up the vets abit my dad is a vet from the vietnam araha and he was promised medical until he dies but just wonder is this hype or is it somewhat true just asking if you heard anything in your neck of the woods.

  • Tue, Aug 23 2011 1:43 AM In reply to

    • Nords
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    Re: Defense board proposes military retirement changes

    cheapChic:

    Nord I know that the vets have some tri care I was told threw one of the posts say that there is not going to be any tricare for the older vets that have retired guess this just a question have you heard anything about it or is propganda just to wake up the vets abit my dad is a vet from the vietnam araha and he was promised medical until he dies but just wonder is this hype or is it somewhat true just asking if you heard anything in your neck of the woods.

     

    Veterans who separate (or who are separated) before retirement eligibility don't usually rate any Tricare benefits, although there are exceptions.  Many of them will still receive some benefits through the VA, especially if they're considered disabled.  That's such a complicated area, and the decisions are so individual, that I don't know much about it.  I haven't done a VA screening since I retired but I'll do another one in the next year or two and see what's changed.

    Retired military are eligible for Tricare.  After age 65 their primary insurance becomes Medicare and their secondary insurance is Tricare For Life.  This may be in addition to any VA benefits they're eligible for, and of course the VA is willing to also be the primary care manager for Tricare if they're in the retiree's area.  Some VA offices make great PCMs, others not so much.

    The recent news has been a hike in Tricare premiums.  I'm not sure of the exact date but the premiums will go up by a bit and be indexed to inflation afterward.  I'll look around for that information and post the links here.

    Officially Recognized Stretchpert in the Military Family Finances forum

    Author of the non-profit book written by military for military: The Military Guide to Financial Independence and Retirement-- now on sale at Impact Publications. For more info see my profile.
  • Tue, Aug 23 2011 9:28 PM In reply to

    Re: Defense board proposes military retirement changes

    Well at least ther is an answer I am game to hear it about dads va thing and I know that others might like to hear about it your just a kid accordding to my dad but since I have worked with some of the vets wow what they have to go threw for retirement and even in the service at least that is owed to them I would think but this is one openion but yes we are game to hear any answers thank you nord...

  • Thu, Aug 25 2011 1:03 PM In reply to

    • Brandy
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    Re: Defense board proposes military retirement changes

    Doug initially showed me this article from Bankrate.

    Bankrate has had some excellent information but I have to disagree with this author. Jennie Phillips says, "The idea that you can retire in your 40s and receive 50 percent of your salary for the rest of your life isn't feasible in a world where people routinely live to be 85 and increasingly hit 100."

    I think the author may be overlooking the physical demands of military duty. I don't know of any field that has as many demands on health and fitness as the military.

    Can we realistically expect to see the average military personnel able to continue to perform duties at optimal level at 60 or 70?

     

     

    The Dollar Stretcher Community Manager



  • Thu, Aug 25 2011 3:13 PM In reply to

    Re: Defense board proposes military retirement changes

    Members of the military are right up there with first responders - fire, police, emergency medical, etc. - in my opinion of people who deserve anything we can give them, including a pension.  The only thing that stood out to me was the statement that 83% of military personnel don't get a pension because they don't make it to 20 years - and that causes me to think that perhaps some type of 401c or 403b might be appropriate, so people who are willing to serve the country have funds to show for it when they complete their terms of service - no matter how long or short that term is.
  • Thu, Aug 25 2011 8:36 PM In reply to

    Re: Defense board proposes military retirement changes

    when dad did the war in vietnam they were under snipper fire from the vc he had to repair the wings of some of the bommers and wire job of the b-52's and other he had to do at least 3 tours of nam and he is 70 and get half the pay for retirement which is good he gets that until he dies but will not be passed to mom ... Mom gets his old teachers pension from the college were dad taught and I think widow bennies to go with it she might not get the dependant stuff from the madigan army hospital so she is covered with medicare for that one she is scared of loseing the tri care thing but I think we can get her covered with things there.

    But dad was promised the medical of tricare he is not to worried about base prevlidge not using the comisary or the bx he does not use it only the medical stuff they use and they are on the meds threw tricare I know that dad has to pay some on  some of his retirement that part is ok but sometimes that congress gets a flea in the bonnet and guess what another vet denied care because of loss of medical and bennies being a vet that they have earned now and from back then thats all I wondered about.

    Plus the vets kinda like to know that they got their pens and papper ready to write congress and senitors again.

  • Fri, Aug 26 2011 7:03 AM In reply to

    • Brandy
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    Re: Defense board proposes military retirement changes

    karenteacher:
    The only thing that stood out to me was the statement that 83% of military personnel don't get a pension because they don't make it to 20 years

    People tend to think of police work or becoming a fireman as a career option. I know many young people who go into the military with the mind set of it being only a few years.

    It's a demanding life where your choices are not always your own to make. You may end up in a war zone for extended periods while others get to go home at night.

    Only a few will make that a lifetime choice.

     

     

    The Dollar Stretcher Community Manager



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