Image copyright Military Times
By Andrew Tilghman
Copyright Military Times
Reservists would be eligible to begin receiving military retirement pay immediately after completing 20 years of part-time service under a new Pentagon proposal for overhauling the retirement system.
The plan would blur the lines between active and reserve careers by allowing both to qualify for “working age” retirement checks that for decades have been limited to the full-time active-duty force.
The fundamental change for reservists — who today must wait until age 60 to collect their first nickel of retirement pay — is one element of a broader set of proposals that the Defense Department unveiled Thursday in a report sent to Capitol Hill and also to the Military Compensation and Retirement Modernization Commission, which is conducting an in-depth study on the issue and preparing recommendations for Congress early next year.
The new Pentagon proposal would convert both active and reserve retirement packages into a “hybrid” that promises smaller monthly retirement checks supplemented with a 401(k)-style investment account that troops and retirees would own outright.