Noteboom The Law Firm

Military Retirement No Longer An Untouchable Benefit

No matter what changes in benefits military personnel have faced over the years, one thing that has always remained untouchable is military retirement. That could very likely change in the very near future. A recent study, which was sponsored by the Pentagon found military pensions are "unaffordable." The effect this will have on veterans disability is yet unknown.

There are currently 1.4 million service members relying on their military retirement benefit at the end of their service. It sounds as if the proposed overhaul to the military retirement system may make many re-think continuing on with their service the next time it is their turn to re-up.

The Defense Business Board is a panel of military advisors who first pitched the proposal to "modernize" military retirement. Currently, any person serving 20 years in the military qualifies for retirement, which equals half their salary. Under the new proposal, retirees will be given a "401k-style plan with government contributions." They would also have to wait until "normal retirement age" to retire. According to the panel, the military would end up saving $250 billion dollars over the first 20 years.

The need to reform the military retirement system seems dire. According to the Congressional Budget Office (CBO), the system is facing hundreds of billions in underfunding over the next 20 years. In order to maintain the military's "core mission" of defending the nation, the military cannot tie all their money up in "retirement programs."

Aside from saving money, the new system is being pitched as being more fair as those serving under 20 years would be given benefits. Additionally, more money would be given to those soldiers in high-risk and combat arenas. There are still issues to be addressed, but without incentive to stay the full 20 years, it is feared many will not. This will leave a gap of experienced soldiers in the top leadership positions.

If you are a disabled veteran who has been denied disability compensation or have not yet applied for benefits from the VA, a South Florida disability attorney from LaVan & Neidenberg is ready to help. To learn if you are entitled to certain programs and benefits contact our veterans disability rights firm today - 1-888-234-5758.