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DOCUMENT RESUME
05438 - (B07456801
The 20-Year Military Retirement System Needs Reform. FPCD-77-81
B-125037. March 13, 1978. 44 pp. + 8 appendices (29 pp.).
Report to the Congress; by Elmer B. Staats, Comptroller General.
Issue Area: Personnel Management and Compensation (300).
Contact: Federal Personnel and Compensation Div.
Budget Function: National Defense: Department of Defense -
Military (except procurement & contracts) (051); Veterans
Benefits and Services: Income Security for VeteLans (701).
Organization Concerned: Department of Defense; Department of the
Army; Department of the Air Force; Department of the Navy.
congressional Relevance: House Committee on Armed Services;
Senate Committee on Armed Services; Congress.
Authority: 10 U.S.C. 6330.
Members of the Armed Forces can retire at any age after
2C years of service. The Department of Defense (LOD) justifies
this length of service as necessary to retain a young and
vigorous force and attract and retain servicemen. DOD uses
competitive promotion system which precludes most military
members from serving full careers and must, by law, r-tire
officers who have been passed over for proaction or who reach a
certain age. Since their careers could end in the middle of
their potential worklife, DOD believes military members need the
assurance of early retirement benefits. Findings/Conc]usions:
In fiscal year 1975, officers retired at an average age of 46
after about 24 years of service, and enlisted personnel retired
at an average age of 41 after approximately 21 years of service.
Most fiscal year 1975 retirees' career time was spent jr
occupations not deaandiag exceptional youth and vigor. In fact,
81% of the enlisted member retirees and 30% cf t.he officers
spent their entire careers in non-combat-related occupations.
The 20-yEar retirement provision should Le discontinued for many
military personnel in occupations not demanding excoptional
youth and vigor. Iwenty-year retirement, in conjLinction with
present personnel management policies, is an ineffizc wc- means
of attracting new members, causes the services to retain more
iembers than are needed up to the 20-year pcint, provides too
strong an incentive for experienced personnel to leave after
serving 20 years, and makes it impossible for the vast majority
of members to serve full careerz. Recommendations: The Congress
should: revise the military retiremeLt system lergth-off-service
criterion, based on the type of duty performed; re;vise the
retired pay system to encourage appropriate career lengths,
based cn duties performed; and provide some form of vesting for
members who do not complete full careers. Cungre s should charge
DOD with the responsibility for determining what specific
occupational skills require youth and vigor, a Lcre
cost-effective force profile that coDsiders Jonger careers for
skills not rquiring youth and vigor, and a more efficient](ViewImageLocal?handle=hein.gao/gaobaawyq0001&div=1&collection=&method=preview&ext=.png&size=3)