MOAA Disturbed About DACMC Retirement Proposals

The Military Officers Association of America (MOAA) has expressed concerns about DACMC’s recommendations to implement “civilian-style” changes to the military retirement system (previous item) – the early vesting, a “401 (k) like plan,” and delaying retired pay until age 60. According to a MOAA official, even though the changes would only affect new service members, the ultimate affect on retention is unknown. “Less significant changes enacted two decades ago for post-1986 entrants had to be repealed in 1999 because they were hurting retention,” he said. The legislation he referred to established a cash “bonus” at 15 years of service in exchange for significantly reduced retired pay later. It was dubbed “Redux,” and retention numbers went south. The Joint Chiefs of Staff subsequently asked Congress to abolish Redux, which it did in 1999.