Department of Defenses 2015 Retirement Plan Cost Analysis

Abstract

The new military retirement system is advertised to significantly reduce the Department of Defenses (DOD) monetary outlays over the short and long term. These savings are generated through a variety of assumptions outside of the departments control. The variables that have the greatest impact over cost savings are controlled by service members (SM) actions, choices, and federal interest rates. Critical analysis of these variables could potentially affect future cost savings and is key in budget preparation andfuture spending plans. This MBA report presents a sensitivity analysis on three separate variables that have a significant impact on retirement costs. Realistic manipulation of these independent variables will show short-term versus long-term cost savings. Additionally, a high-cost and low-cost scenario is explored. With cost scenarios differing up to $321 billion, DOD needs to be aware of the potential effects of future outlays. It is recommended that DOD conduct additional economic research and acquire further data on the preferences of current SMs in order to provide a more narrow range of cost savings.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 2016
Accession Number
AD1026603

Entities

People

  • Charles D. Fuehrer
  • James C. Hanlon
  • Kedish O. Hemmings

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical
  • Energy and Power Technologies
  • Human Systems

DTIC Thesaurus Topics

  • Active Duty
  • Business Administration
  • Cost Analysis
  • Costs
  • Department Of Defense
  • Employment
  • Geographic Regions
  • Governments
  • Law
  • Manpower
  • Military Personnel
  • Personnel Management
  • President (United States)
  • Public Policy
  • Sensitivity
  • Training
  • United States

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  • Strategic Security Studies