DoD board recommends military retirement overhaul

Tuesday - 7/26/2011, 5:11pm EDT

The Defense Business Board has unveiled a plan to significantly overhaul the Defense Department's retirement system for military personnel, Air Force Times reports.

The plan, which would phase out the longstanding cliff-vesting system, would contribute money to soldiers' retirement savings instead of putting it into a future monthly pension.

According to the report, all troops would receive yearly retirement contributions - possibly as much as 16.5 percent of a member's annual pay - even if they don't stay for the customary 20 years. The contributions would be deposited into a mandatory version of the Thrift Savings Plan.

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