New Military Retirement Law Effective 1 Jan 2018

[SouthernDZ]

http://www.militarytimes.com/story/m...oops/79347998/

"It's the biggest change in decades for military compensation. For the first time, the military will offer some limited retirement benefit, similar to 401(k) contributions, to troops who separate before reaching 20 years of service. Historically those non-career service members — more than 80 percent of the force — received no retirement benefit.

Officially the new retirement system takes effect Jan. 1, 2018. After that, all troops coming out of boot camp will be automatically enrolled in the new benefit as the traditional pension plan is phased out.

Yet for today’s troops, and anyone who joins during the next two years, the new law includes a grandfather clause that will allow them to choose to remain under the traditional all-or-nothing retirement system."

[1stindoor]

My son, who's been in for about 3 yrs now, called me last night and we talked about it at length. From my stand point, DOD/Congress, etc. wouldn't float a "new plan," if it wasn't in THEIR BEST INTERESTS. My son, already contributes 10% to his TSP and another 5% to a Roth. I think he would be best served by remaining under his current plan (high 3). He plans to do at least 20 at this point. I would like to hear other's opinions of the new retirement system.

[UWOA (RIP)]

Traditional is the best way to go. Even if he decided AD was no longer for him, he could stay in the reserves and still receive a decent pension (as well as the medical benefits which cannot be surpassed). I did six active and twenty-one reserve and don't regret any of it (well, yes, I regret being RIF'd by that Special Forces-hating, scum-sucking Creighton Abrams ... but other than that ....). I still counsel others who are AD and getting out to stay in the Reserves ....

Just my $0.02.

.

[CAARNG 68W]

Originally Posted by UWOA

(well, yes, I regret being RIF'd by that Special Forces-hating, scum-sucking Creighton Abrams ... but other than that ....).

Damn you go way back

[Oldrotorhead]

Originally Posted by 1stindoor

My son, who's been in for about 3 yrs now, called me last night and we talked about it at length. From my stand point, DOD/Congress, etc. wouldn't float a "new plan," if it wasn't in THEIR BEST INTERESTS. My son, already contributes 10% to his TSP and another 5% to a Roth. I think he would be best served by remaining under his current plan (high 3). He plans to do at least 20 at this point. I would like to hear other's opinions of the new retirement system.

I think you are correct, provided he does 20 or more years, 401/403b plans could drop in value over the years. My 401, not IRA has dropped in value 20% or so and recovery if it recovers will take a while. If he changes his mind he has 2 years (?) do take the other option. I hope his career goes well.

[SittingElf]

I've been having this discussion on some other boards.

The reality of the new system is that it will be very, VERY difficult to retain the highest quality NCO's and Officers through a 20-year career on a 401k plan.

There simply is no incentive to stay beyond whatever saved amount is deemed "sufficient" for a member to depart to higher income on the outside. The additional problem is that even IF a member stays to 20-years, and assuming an average age of 40 on departure, that individual will still have to wait an additional 20 years before being able to withdraw from that account without penalty....forcing a second career whether they want it or not!

In my opinion, this is going to lead to a military who will be managed by mediocre leaders....at best, and more likely by those who could not make it on the outside if they departed.

I'm thankful that my wife is at 21 years (USAF), and that we are locked into High-3 for her. She'll probably stay between 26-30 and retire at her current O-6 (Select) level...and maybe even as a flag officer.

Now I have to think about whether I should encourage my son to enter the military when he reaches the age of enlistment....but by that time, they will probably require a draft anyway.

Cheers

[bushmaster11]

I was part of the RIF. I don't care if he is dead, his reputation and legacy is one that belongs in a 55 gallon drum of shit and burned in perpetuity. Excluding his WWII exploits, he has no redeeming military qualities, IMHO. I have heard him disparage a DSC winner " I don't think you deserve this and your friends either." This was said during an awards ceremony at CCN on the helipad. I was holding the pillow holding the medals, so I was standing right beside him when he said it. When he was appointed COS, I knew bad things were going to happen. I'll hold a grudge until I get planted.

J R sends
DOL

[TFA303]

Originally Posted by UWOA

Traditional is the best way to go.
.

Civilian or Reserve or Active Duty... the "New Plan" is pretty much never better.

[Ret10Echo]

Originally Posted by UWOA

as well as the medical benefits which cannot be surpassed

That's going the way of the Do-do as well if the DC-bags have their way with things.

Create Financial Incentives to Encourage Retiree Beneficiaries under 65 to Seek Care at MTFs to Lower Cost and Enhance Readiness.

Incentive's through disincentives...(translation...make it so damn expensive they do what we want)

Ever been a retiree trying to be seen at a military hospital? No grudge...those facilities are there for the active duty and their families...

Bring a book, a sack lunch and charge your cell phone.

[UWOA (RIP)]

Originally Posted by CAARNG 68W

Damn you go way back

Younger than a few here; older than most. Just happy to still be here ....

.

[Oldrotorhead]

Originally Posted by bushmaster11

I was part of the RIF. I don't care if he is dead, his reputation and legacy is one that belongs in a 55 gallon drum of shit and burned in perpetuity. Excluding his WWII exploits, he has no redeeming military qualities, IMHO. I have heard him disparage a DSC winner " I don't think you deserve this and your friends either." This was said during an awards ceremony at CCN on the helipad. I was holding the pillow holding the medals, so I was standing right beside him when he said it. When he was appointed COS, I knew bad things were going to happen. I'll hold a grudge until I get planted.

J R sends
DOL

Considering who he worked for what would you expect? One of the many reasons I did not attempt a military career was how really good mid-level and senior people were treated. I watched several good people riffed because they did not fit the mold and punch the buttons on time. Spend too much time in Asia or elsewhere on hardship tours and miss required schools for promotion. One AR-15 became career enders rather that a learning experience. Now there are many other ways to get rid of troops. Kick a child molesters ass comes to mind.

Before SF and Aviation became branches many people were penalized for not returning to the Big Army to punch tickets.

Sorry for the rant

[1stindoor]

A lot of the replies echoed what I told my son last night. For an example I showed him my RAS, and what it would have been if I had taken the ReDux...quite a difference. It's one of my little pleasures in life, knowing that I have a comfort zone to cushion unemployment. I'll never be truly hungry...knowing that on the 1st...I can always buy more cat food.

[Badger52]

Originally Posted by UWOA

...that Special Forces-hating, scum-sucking Creighton Abrams ...

(just wanted to see that again)

After Army career being a DAC, this looks like the kind of decision some civs went through years ago as to whether to go FERS or stay CSRS. Given how well something investment-based run by the government usually goes I've yet to see someone who went FERS who doesn't wish they'd stayed CSRS.

I'd recommend to anyone that, if they're secure in their goals/expectations and faced with the choice, to stay with the traditional and go USAR if you need later but stay with that plan.

[UWOA (RIP)]

Originally Posted by Oldrotorhead

Considering who he worked for what would you expect? One of the many reasons I did not attempt a military career was how really good mid-level and senior people were treated. I watched several good people riffed because they did not fit the mold and punch the buttons on time. Spend too much time in Asia or elsewhere on hardship tours and miss required schools for promotion. One AR-15 became career enders rather that a learning experience. Now there are many other ways to get rid of troops. Kick a child molesters ass comes to mind.

Before SF and Aviation became branches many people were penalized for not returning to the Big Army to punch tickets.

Sorry for the rant

I had the last laugh on Abrams.

Came back to the States to ETS at Fort Benjamin Harrison, but was retained for an extra year because of an injury to my dependent. While stationed at Fort Ben I eventually assumed four positions because the individuals PCS'd. The DPCA, who I worked for, was so pleased by my performance that he put my packet in to a standby promotion board. This was after Abrams directed that not the fully qualified, but only the 'best qualified' would be promoted. Lo and behold, I was selected for promotion. After the promotion the DPCA took me to MILPERSCEN in D.C. to ask why I, an officer selected for the RIF was promoted to the next rank while others who had not been selected for the RIF failed Abrams criteria for promotion. Well, the eggheads in the puzzle palace scratched their heads and said that a mistake had been made and I could stay on AD. I asked what would happen after that. They said that since I had already been selected once for the RIF, that they couldn't say I wouldn't be selected again. I read the writing on the wall: stay and get bounced three or four years down the road, or start a new career while I was young enough to challenge my peers in that new field.

Fuck Abrams. I left.

.

[doctom54]

Originally Posted by UWOA

Traditional is the best way to go. Even if he decided AD was no longer for him, he could stay in the reserves and still receive a decent pension (as well as the medical benefits which cannot be surpassed). I did six active and twenty-one reserve and don't regret any of it (well, yes, I regret being RIF'd by that Special Forces-hating, scum-sucking Creighton Abrams ... but other than that ....). I still counsel others who are AD and getting out to stay in the Reserves ....

Just my $0.02.

.

I agree. I had 13 active (6 Army and 7 USAF) then 9 years guard (3 Army Guard, 6 air guard). The pension and medical are excellent (You just have to wait until age 60 to draw).
Anyone getting out I tell them to stay in the Guard (or Reserves). Besides the Air Guard was one of the two best jobs I've every had.