The Defense Business Board, which reviewed all aspects of defense spending to determine where efficiencies were necessary, called the military retirement system “more generous and expensive compared to the private sector” in its July 21 report. The report stated that military retirees receive “40 years of retirement benefits for 20 years of service,” and hinders retention because 76 percent of all service members between 20 and 25 years of age leave before the 20-year milestone at which most qualify for retirement pay. Retirement fund money for those who leave, as such, “Are effectively applied to the benefits of those serving more than 20 years,” the report stated. The contribution is more than 10 times greater than comparable private-sector retirement plans, the report stated.
