Under the current system, active-duty members must serve at least 20 years to qualify for regular retirement. They get an annuity equal to 2.5 percent of basic pay for each year served. That means 50 percent of basic pay for a 20-year career and a maximum of 75 percent of basic pay for 30 years or more. Annuities are increased yearly to keep pace with inflation.
Features of the new plan include government matching of Thrift Savings Plan contributions made by members, not to exceed 10 percent of basic pay. Full vesting in these 401(k)-like accounts could occur after only five years of service.
The plan also would offer full vesting in a retirement benefit after just 10 years of service. The current annuity formula, of 2.5 percent of basic pay for each year served, would apply. So a 10-year retiree would get 25 percent of retired pay. The catch — and it’s a big one — is that retired pay, for everyone, wouldn’t start until age 60.
Careers as long as 40 years would be allowed, and a 40-year retiree would draw 100 percent of basic pay. But ending for future generations of servicemembers would be immediate annuities after 20 or more years — that is, starting when the servicemember retires. To entice enough members to serve 20, 30 or 40 years, the plan calls for special “gate pays,” extra income at strategic points along a member’s career path.
http://www.stripes.com/article.asp?article=35448§ion=104...another sign that the Bushies are hurting for boots on the ground and will do anything, to include recruiting those with records of criminal misconduct, before implementing the draft and guaranteeing a GOP loss at the November polls...
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