{"id":25978,"date":"2011-07-26T14:19:09","date_gmt":"2011-07-26T18:19:09","guid":{"rendered":"http:\/\/valorguardians.com\/blog\/?p=25978"},"modified":"2011-07-26T19:25:28","modified_gmt":"2011-07-26T23:25:28","slug":"how-to-kill-retention-in-one-easy-step","status":"publish","type":"post","link":"https:\/\/www.azuse.cloud\/?p=25978","title":{"rendered":"How to kill retention in one easy step"},"content":{"rendered":"

The Marine Corps Times<\/a> reports that another of those idiot DoD panels has arrived at some radical changes for the military retirement system;<\/p>\n

In a massive change that could affect today\u2019s troops, the plan calls for a corporate-style benefits program that would contribute money to troops\u2019 retirement savings account rather than the promise of a future monthly pension, according to a new proposal from an influential Pentagon advisory board.<\/p>\n

All troops would receive the yearly retirement contributions, regardless of whether they stay for 20 years. Those contributions might amount to about 16.5 percent of a member\u2019s annual pay and would be deposited into a mandatory version of the Thrift Savings Plan, the military\u2019s existing 401(k)-style account that now does not include government matching contributions.<\/p><\/blockquote>\n

OK, sounds pretty good so far, except that the TSP has no investment option for cash investments, which means that 100% of their contributions are subject to market conditions in either bond or stock markets. I like that my pension is a guaranteed amount that I can count on despite the ups and downs of Wall Street. Don’t get me wrong, I’m going to be a very rich man when I retire and finally access my investments, but I’ll have a pension that I can always count on to be there.<\/p>\n

But here comes the “sucks” part;<\/p>\n

It\u2019s unclear whether troops would have immediate access to all the retirement money or whether it would be partially or completely withheld until a traditional retirement age, such as 65. Under the current TSP, troops cannot withdraw money until age 59\u00bd without incurring a significant penalty, except in certain specified circumstances.<\/p><\/blockquote>\n

Unlike other proposals to overhaul military retirement that would grandfather current troops, the board suggests that DoD could make an \u201cimmediate\u201d transition to the new system, which would affect current troops quite differently depending on their years of service:<\/p><\/blockquote>\n

So it’s another example of the government forcing the troops to change horses in mid-stream. those troops who’ve been in for years won’t have to advantage of using the market to grow their pensions like a new trooper with twenty years to make up for losses and capitalize on gains.<\/p>\n

Who in the military has the education to invest smartly? How much will it cost the military to educate Joe on how to not lose all of his money on a crap shoot? And the lure of a five-figure amount sitting in an investment account that they can access will probably tempt a lot of Joes out of the military. Yeah, it’s possible. <\/p>\n

Thanks to StrikrFO and Posdorf for the links.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Marine Corps Times reports that another of those idiot DoD panels has arrived at some … How to kill retention in one easy step<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[84],"tags":[],"class_list":["post-25978","post","type-post","status-publish","format-standard","hentry","category-military-issues"],"_links":{"self":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/posts\/25978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25978"}],"version-history":[{"count":0,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/posts\/25978\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}