Retirement System Faces Revamping

The 2016 defense authorization bill calls for significant changes in the military retirement system. Beginning in 2018, service members who wear the uniform for fewer than 20 years will be able to take part in a retirement system that would allow them to contribute to a Thrift Savings Plan. Participants would continue to qualify for retirement pay at the 20-year mark, but would have an option of taking their retirement pay in a lump-sum payment as soon as they retire. Persons now serving who have fewer than 12 years of service will have the option of continuing under the old retirement system or taking part in the Thrift Savings Plan.