End of lifetime checks?

[USNAviator]

Retirement under review: A $20 billion budget hole has DoD considering changes to the 20-year plan — again

By Andrew Tilghman - Staff writer
Posted : Tuesday Apr 26, 2011 14:21:01 EDT

Longer life expectancy has created a $20 billion hole in the Defense Department’s retirement pension fund and is driving officials to once again re-examine the traditional system of 20-year “cliff vesting” and lifetime checks, according to an internal Pentagon review.

Military leaders may have to choose between the current pension system and major weapons programs, said Richard Spencer, a businessman who serves on the Defense Business Board.

“What are you going to trade off — a rich entitlements program, or boots and bullets for the troops?” Spencer told the board during an April 21 meeting at the Pentagon.

One major consideration will be recent studies showing that a decade of generous increases in military pay and noncash compensation such as housing allowances has put the overall income of troops on par with, or even above, that of civilians with similar education levels, Spencer said.

Those studies mark a shift from the past, when military pay was widely perceived to be lower than civilian pay and helped justify a generous retirement package that troops can start collecting as early as age 38.

The extended life span of today’s troops will also be a key factor, Spencer said. The life span of an American male has grown by at least a decade since the current system was adopted 63 years ago. The latest estimates suggest the military may need to pay $20 billion more than previously expected to cover future pension payments.

[Sgt Leprechaun]

One wonders several things:

1: Has Spencer, or ANY member of this 'board' served a day in the military?

2: What do Spencer and the others on this 'board' have for retirement plans?

3: What business is Spencer in, or qualified to be in? How would that business be affected (pro or con) by fiddling with OUR retirement? Do you suppose Spencer may be more concerned with how much money his business may lose, or gain, if the retirement system is changed?

[SlingerDun]

Richard V. Spencer Mr. Richard V. Spencer is the former Vice Chairman and Chief Financial Officer of Intercontinental Exchange, Inc. (NYSE-ICE) the leading electronic commodity futures exchange. He served in that capacity from November 2001 through January 2008. While at ICE he was responsible for the transition of the company from private to public, including recruiting the Board, the initial public offering and the subsequent three secondary offerings, financial reporting, strategy development and implementation, and human resources. Prior to that Richard was the President of Crossroads Investment Management LLC a leading venture capital and private equity fund-of-funds investment firm. He joined Crossroads in 1998 after working on Wall Street for 15 years for A.G. Becker, Paine Webber, Goldman Sachs, Bear Sterns, Merrill Lynch and Donaldson, Lufkin, Jenrette. During that period his responsibilities centered on investment banking services focusing on strategic advisory services and capital markets underwriting. Mr. Spencer graduated from Rollins College in 1976 with a Bachelors of Arts degree in economics. He also completed the Advanced Management Program at the Fuqua School of Business, Duke University. Upon graduation from Rollins, Richard joined the U.S. Marine Corps and served in the fleet as a Naval Aviator. He was honorably discharged in 1981 as a Captain. Mr. Spencer is a member of the board of directors of the Marine Corps Heritage Foundation and VeteransCampaign.org.

[TheReservist]

If you were to leave it up to members of this board, they would cut the military pensions for the sole reason, that the private sector doesn't get them anymore....

They should keep them as they are a highly touted benefit in a dangerous career. Also, reservists shouldn't have to wait till 65 to withdraw.

This is also coming from a Marine who won't get military retirement

[Sgt Leprechaun]

So noted. I would disagree with one point, though. Nowadays, Reservists in some cases deploy more than the active side. I think (and fair disclosure I'm a reserve retiree now) they should draw when they retire and NOT wait until 60.

Otherwise I agree.

Interesting this guy is a former pilot. And on the board of Directors for the Heritage foundation. I'm sure I've actually met him then. Probably a good thing I didn't know then what I know now LULZ. He may get an earful yet

[USNAviator]

You have to watch out for those Aviators, they are a devious bunch!

This actually may see the light of day. Perhaps for the AD 20 who served they may push back the start of payments 5 or more years after your retirement date.

Yet from what studies I've read, the highest incidence rate of suicides among AD retired is in the first 18 months. Maybe they are betting people are going to off themselves. Also there use to be an option to opt out a spouse if you so chose. When you die the cash stops. I'm not sure that is still in effect.

[Old Marine]

All these guys who are members of these groups have their collective heads buried where the sun don't shine. Far as I am concerned they can all take a long walk on a short pier. I have been collecting a military retirement check since 1973 and earned every penny of it along with the Prime for Life Medical that the wife and I have. All this stops on the day I take the trip elsewhere. Until then I will relax and enjoy this retired life.

[FistFu68]

Maybe We should ban all Pension's,Healthplan's of ALL POLITICIAN'S and Recupe all Past Fund's$$$$$$ & The next time these F**King Bum's throw a War no one show's up!

[PHSChat]

My take on the situation over at my forum:

http://www.phschat.com/forums/conten...irement-System

This realignment of the 20 to 30 retirement system looks too good for the Wall Street advisers on the Defense Business Board to pass up.

[Sgt Leprechaun]

No profile? Deleted.

[LandsNGrooves]

Ive already debated this one on a gun board agaisnt snippy civilians who try to compare high demand(long hour) jobs to 20 years of service and former short timers who claim"we cant pay people 60 years for 20 years of work".

People dont know what they dont know.

[Sgt Leprechaun]

Bingo.