Publication

In an era of fiscal austerity, the current US military retirement system has come under intense scrutiny. With annual military retirement system outlays exceeding $50 billion, senior officials have begun calling for pension reform. The authors of this paper propose an alternative framework for pension reform called the 10-15-55 plan. They argue that this plan may be more desirable to new entrants than the existing pension plan because it takes into consideration the uncertainty that most new recruits face about serving a full 20-year military career.