New Pentagon chief ‘open to reconsidering’ military retirement system

By Jon Harper

Stars and Stripes

Published: February 22, 2015

KANDAHAR AIR FIELD, Afghanistan — Secretary of Defense Ashton Carter said Sunday he is “open” to altering the military retirement system but would not want changes forced on current or former servicemembers.

A congressionally chartered Military Compensation and Retirement Modernization Commission last month submitted proposals to save the Defense Department money on personnel costs.

It recommended changes to entice troops to opt out of the current pension system, which gives substantial retirement pay to those who serve 20 years or more but none to those who serve less time. The panel suggested all troops be automatically given a savings plan account that would stock away 3 percent of pay along with a contribution from the military.

The panel also recommended that Tricare health insurance be replaced with a range of private provider options.

When a servicemember asked Carter about potential changes at a troop talk at Kandahar Air Field in Afghanistan, Carter said: “I’m of course open to reconsidering the military retirement system. It’s been around for a long time [and] it makes sense to take a look at it.”

Saying he is studying the commission’s report, he didn’t comment on specific recommendations.

“What’s critical here is that we have a system… that will keep the All Volunteer Force healthy in the future,” he said.

He said the retirement system should be attractive to potential recruits and give servicemembers “appropriate incentives” to either stay in the military or retire at a time that is best for them and DOD.

“That’s the criterion that I will principally apply when considering these things,” Carter said.

But he believes any mandated changes should only apply to those who join the military in the future.

“Any change we make [should] be one that those who are in service don’t have to [accept] if they don’t want to, because I don’t want to breach our understanding with you at the time you joined. That’s not fair,” Carter said. “But we can make other alternatives available to those who may join in the future and also to those who are in now.”

harper.jon@stripes.com; Twitter: @JHarperStripes