Military Retirement Replaced with 401k?
08/17/2011 0 comments
Based on the following report, Pentagon is considering to replace the military retirement plan with a plan similar to 401K.
This is an unbelievable report. Imagine soldiers in the battlefield? How will they manage their 401k? What kind of country is this that forces their soldiers who are fighting with their life to take care of the future retirement for themselves?
While we are advocates for participants to take control of their own retirement investments, we believe the current mad dash to cut spending is way too overboard, this is a good example.
We can only hope that this is just a proposal.
Here is the report:
Panetta Confirms Pentagon Considering Replacing Military Retirement With 401(k) Plan
In a rare joint appearance with Secretary of State Hillary Clinton at the National Defense University Tuesday, Secretary of Defense Leon Panetta confirmed a CBS News report that the Pentagon is considering a dramatic plan to overhaul the military's once sacrosanct retirement plan.
According to CBS, the plan "would eliminate the familiar system under which anyone who serves 20 years is eligible for retirement at half their salary. Instead, they'd get a 401k-style plan with government contributions."
Panetta largely confirmed the report, with a key caveat.
"That report came as the result of an advisory group that was asked by my predecessor Bob Gates to look at the retirement issue," he said.
comments 0
Or Start FREE 30-day trial now >>
