CBO Estimates Cost for Reserve Retirement Fix

By: fedweek

The Congressional Budget Office has estimated that the cost to reduce the Reserve retirement age for pay from age 60 would be less than $35 million over five years. The plan, in the version of the fiscal 2008 National Defense Authorization Act (NDAA) approved by the Senate Armed Services Committee, would reduce the retirement age by three months for each 90 days a member has been mobilized. The provision would take effect on the date the measure becomes law, although a Senate floor amendment to the NDAA is expected which would make the reduced retirement age retroactive to Sept. 11, 2001. The 1947 law establishing reserve retirement pay beginning at age 60 was based on the concept that Reservists had a primary civilian career, and would have no need for military retirement pay before age 60. That has all changed.