(Newsmax) – President Barack Obama said Monday that he supports the idea of reducing military retirement pay by about 20 percent.
According to the Washington Times, Obama wrote a letter to congressional leaders saying he favors the recommendations put forth by a military commission.
Under the plan, troops serving at least 20 years would not be affected and would continue to receive full retirement benefits. Those serving less than 20 years, however, would have their retirement checks slashed by about 20 percent.
On the other hand, the proposal would help boost troops’ retirement savings accounts, as the Department of Defense would contribute up to 6 percent of a soldier’s basic pay for those serving more than two years. Under the current system, the Defense Department automatically contributes 1 percent.
The proposals are “an important step forward in protecting the long-term viability of the all-volunteer force, improving quality-of-life for service members and their families, and ensuring the fiscal sustainability of the military compensation and retirement systems,” Obama wrote, according to the Times.
The Times notes that the White House will make tweaks to some of the recommendations before sending them to Congress by April 30.
Defense Secretary Ashton Carter is trying to get the proposals through Congress and into law before the Obama administration leaves the White House in less than two years, according to a USA Today report.
Many troops do not put in 20 years of service and do not receive much, if anything, in the way of a retirement benefit. The proposal would create a system similar to a 401(k) to help soldiers save for retirement.
“About 83 percent leave with absolutely nothing,” Todd Harrison of the Center for Strategic and Budgetary Assessments told USA Today. “That’s especially true when you think about the people who have actually been fighting the wars in Afghanistan and Iraq.”
Carter is also considering easing some of the enlistment standards in certain areas of the military, such as cyber and high-tech positions.
http://www.newsmax.com/Newsfront/military-retirement-pay-reducing/2015/03/30/id/635374/!
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