Military Retirement Benefits.

This study examines the current Military Retirement System in an effort to determine if changes should be made in it, and if so, what kind of changes and the consequences of such changes. An analysis was made of the President's Private Sector Survey on Cost Control findings to determine the differences between the Military Retirement System, the Civil Service Retirement System, and retirement systems from the private sector. Special emphasis was devoted to determining the real problem which has led to these benefits being challenged currently. Additional data furnished from the National LIfe Insurance Company of Montpelier, Vermont helps to identify cost savings of paying benefits at various times. The conclusion is that the Military Retirement System is indeed generous and should be modified to incorporate features that would replace long-term incentives with short-term incentives which, in future years would substantially reduce costs for the taxpayer. However, changes should not be made in the Military Retirement System without similar changes in other federal retirement systems.