Toward Efficient Military Retirement Accrual Charges

Abstract

Primary elements of the costs of military personnel include pay and benefits during military service, and retirement and health care benefits paid to qualified personnel after leaving the military. This report focuses on retirement benefits. Public Law (PL) 9894, enacted in 1984 and implemented in fiscal year (FY) 1985, mandated accrual accounting to fund the military retirement benefit liability and specified the use of the aggregate entry-age normal accounting method. Before PL9894, the amount appearing in the Department of Defense (DoD)budget for military retirement was the annual payment to current military retirees; military retirement was a pay-as-you-go (PAYGO) system. The shift to accrual accounting sought to meet the objective of recognizing in the current budget the cost of future retirement benefits associated with current manning decisions.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 2017
Accession Number
AD1026021

Entities

People

  • Beth J. Asch
  • James R. Hosek
  • Michael G. Mattock

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Active Duty
  • Air Force
  • Army Personnel
  • Congress
  • Cost Estimates
  • Department Of Defense
  • Department Of Veterans Affairs
  • Enlisted Personnel
  • Financial Management
  • Governments
  • Health Care
  • Law
  • Military Personnel
  • Personnel Management
  • Public Policy
  • Training

Readers

  • Defense Financial Management and Audit.
  • Public Financial Management and Budgeting
  • Rehabilitation and Prosthetic Care for Military Service Members and Veterans with Limb Loss or Disability.