The current military retirement system would be replaced by one akin to civilian plans, under changes proposed by a congressionally mandated commission charged with conducting a thorough review of the program. Noting that 83 percent of all service members leave the military with no government-sponsored retirement assets, the Military Compensation and Retirement Modernization Commission proposed establishment of a “blended retirement system” that would incorporate both the existing Thrift Savings Plan (TSP) and some form of continuation pay that would kick in after 12 years of service. Service members under the current retirement system would see no changes to their retirement-compensation package. Another wrinkle would allow some retirees to pay an annual premium, which would enable their survivors to collect compensation from both the Survivor Benefit Program (SBP) and the VA’s Dependency and Indemnity Compensation (DIC) program. Currently, in most cases, survivors cannot collect both. Rather, the amount of SPB is offset dollar-for-dollar by the amount of DIC they collect. The existing offset program would remain intact as well. The panel also proposed better financial-literacy and budget-planning training. Other proposals include:
* Simplification of the convoluted reserve-component status system, to facilitate their deployment when they are needed.
* Reorganization of the health care system, emphasizing the distinction between military-readiness needs and those of beneficiaries.
* Revamping TRICARE, the military’s managed health-care program, to offer better choices. In one scenario, families could purchase plans with a newly established Basic Allowance for Health Care.
* Improving collaborative efforts between the Defense and Veterans Affairs departments, to include better parallel policies, common prescription-drug formularies, and seamless transfer of health records.
* Consolidation of each service’s exchange and commissary systems into a single entity.
* Placement of greater priority on addressing child-care needs.
* Enhancement of Post 9/11 GI Bill education benefits.
* Improvement of transition-assistance programs.
