Changes to Military Retirement Benefits in the Works

By Bridget Naso, January 28th, 2015

For the first time in a quarter century, the military is likely changing retirement benefits, and new recommendations are going to Congress.

Congress tasked the Military Compensation and Retirement Modernization Commission to take a look at military benefits two years ago because they felt the government couldn’t sustain the costs.

Since then, the group has been traveling to bases across the U.S. to get feedback and talk about how to transform the benefit structure. On Thursday, they are expected to propose detailed legislation.

The idea is to cut costs and address the evolving military mission. According to the Military Times, the new structure will phase out the 20-year, cliff-vesting pension, and there will likely to be a hybrid or a 401(K)-style plan available for service members.