Unit 2 Blog 2

Change in Military Retirement

I think one of the most effective proposal arguments I've recently read was that of changing the military retirement payout system. I typically don’t get involved in such issues’ as I believe that it is the duties of our elected officials to protect the service members against such blasphemous suggestions. Raised a child of a paramilitary family as my father served in the U.S. Army during Vietnam, my upbringing often included stories of what great benefits the military offered even back in the 1960’s. During the 2008 presidential election, I heard whispers from various sources that one of the reforms or system “overhauls” would be that of the current military retirement payout system. The current retirement system is a great recruiting tool as there are not many professions that allow a person right out of high school or college to go to work for an organization and from day one receive 30 days of paid vacation, full medical and dental coverage, shopping at clothing stores and grocery stores that offer discounted prices and after 20 years of service receive a check for 50% of their basic pay upon retirement. Startled by the thought of my elected officials tampering with my retainer check, I vehemently began to research the current military retirement program. After researching the current retirement program for nearly two years, I found that the current program is somewhat outdated as it was founded in 1948 and needs to be reviewed. This is a system that was initiated to remain competitive with major factories that began after the industrial revolution. Back then it was the industry standard to provide a pension for employees who retired after 20 plus years. In today’s business world 401k’s are now common forms of retirement. This is a program the military tried to adopt with the Thrift Saving Program, and to an extent matched the 401k programs. However, in my opinion it is a program that benefits the service member that completes 20 years of service. Over the next decade the Department of Defense needs to overhaul the current military program offering a true 401k program for those personnel that do not want to stay in the military longer than five years.