Week of November 22, 2010
Yet another so called "debt reduction" panel has announced their proposal to overhaul the military retirement system.
The bipartisan Debt Reduction Task Force, co-chaired by former Republican Sen. Pete Domenici and economist Alice Rivlin, offered a detailed plan for overhauling military retirement and TRICARE.
Like the previous "blue ribbon" panel's proposal, the task force's plan includes steps to replace the current system with a new program that would allow members to retire after 10 years, but not start drawing pay until they reach 60 years old.
However, the task force proposal would go further and tie military retirement to the government-funded Thrift Savings Plan (TSP) with vesting after 10 years. Read more about the task force's plans to reform military retirement.
The major remembers the military retirement system was reformed in the 1980s during the Reagan presidency.
President Ronald Reagan signed the Military Retirement Reform Act of 1986 . . .The new formula applied to people entering the Armed Forces after August 1, 1986, and meeting the existing minimum 20 years' service required for normal retirement.
Under the new formula, those retiring at or after age 62 with 20 years' service will receive a pension equal to 40 percent of their average annual basic pay during their highest three consecutive years . . .
Previously, age had not been a factor in calculating pensions, which ranged from 50 percent after 20 years service to 75 percent after 30 years or more.
This system is very similar to the pension system for reservists. The Thrift Savings Plan implies a contributory retirement system. This is unfortunate because IRA plans were designed by Congress to be savings plan, not a pension plan.
It looks like the GOP is doing the bait and switch with the Armed Forces that many corporate workers experienced with their 401ks.
When many workers lost their jobs, they found that nearly a third of their IRA funds had been taken by fund managers as management fees.
Today only 21 per cent of Americans enter retirement with a pension. Republicans will also try to raise the Social Security age which will cause more Americans to file for Social Security disability.
GWB admitted his biggest failure was his inability to privatize Social Security although he was elected without a mandate to do this or for that mater, much of anything else.
sources: http://www.military.com/military-report/two-panels-pushing-to-overhaul-retirement?ESRC=miltrep.nl and http://findarticles.com/p/articles/mi_m1153/is_v109/ai_4459849/
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The bipartisan Debt Reduction Task Force, co-chaired by former Republican Sen. Pete Domenici and economist Alice Rivlin, offered a detailed plan for overhauling military retirement and TRICARE.
Like the previous "blue ribbon" panel's proposal, the task force's plan includes steps to replace the current system with a new program that would allow members to retire after 10 years, but not start drawing pay until they reach 60 years old.
However, the task force proposal would go further and tie military retirement to the government-funded Thrift Savings Plan (TSP) with vesting after 10 years. Read more about the task force's plans to reform military retirement.
The major remembers the military retirement system was reformed in the 1980s during the Reagan presidency.
President Ronald Reagan signed the Military Retirement Reform Act of 1986 . . .The new formula applied to people entering the Armed Forces after August 1, 1986, and meeting the existing minimum 20 years' service required for normal retirement.
Under the new formula, those retiring at or after age 62 with 20 years' service will receive a pension equal to 40 percent of their average annual basic pay during their highest three consecutive years . . .
Previously, age had not been a factor in calculating pensions, which ranged from 50 percent after 20 years service to 75 percent after 30 years or more.
This system is very similar to the pension system for reservists. The Thrift Savings Plan implies a contributory retirement system. This is unfortunate because IRA plans were designed by Congress to be savings plan, not a pension plan.
It looks like the GOP is doing the bait and switch with the Armed Forces that many corporate workers experienced with their 401ks.
When many workers lost their jobs, they found that nearly a third of their IRA funds had been taken by fund managers as management fees.
Today only 21 per cent of Americans enter retirement with a pension. Republicans will also try to raise the Social Security age which will cause more Americans to file for Social Security disability.
GWB admitted his biggest failure was his inability to privatize Social Security although he was elected without a mandate to do this or for that mater, much of anything else.
sources: http://www.military.com/military-report/two-panels-pushing-to-overhaul-retirement?ESRC=miltrep.nl and http://findarticles.com/p/articles/mi_m1153/is_v109/ai_4459849/
Subscribe to the Rightardia feed: feeds.feedburner.com/blogspot/IGiu
Netcraft rank: 8515
http://toolbar.netcraft.com/site_report?url=http://rightardia.blogspot.com
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