2018 Military Retirement Options: An Expected Net Present Value Decision Analysis Model

Abstract

The 2016 NDAA authorized changes to the military retirement system transitioning from the legacy High-3 defined benefit annuity to the new Blended Retirement System (BRS). In exchange for a reduced defined benefit annuity, the BRS incorporates automatic and matching contributions to the members Thrift Savings Plan and a continuation payment offered at 12 years of service. In 2018, service members with less than 12 years of service will make an irrevocable decision between the two retirement systems. This research effort addresses the problem by developing a decision analysis model incorporating up to 27 different input variables. Service members can use the associated spreadsheet tool to calculate the expected net present value of each alternative based on their own personal circumstances.

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Document Details

Document Type
Technical Report
Publication Date
Mar 23, 2017
Accession Number
AD1051597

Entities

People

  • Bret N Witham

Organizations

  • Air Force Institute of Technology

Tags

DTIC Thesaurus Topics

  • Air Force
  • Automatic
  • Business Administration
  • Computations
  • Congress
  • Department Of Defense
  • Employment
  • Enlisted Personnel
  • Governments
  • Law
  • National Governments
  • National Security
  • Operations Research
  • Personnel Management
  • Probability
  • Spreadsheet Software
  • United States Government

Readers

  • Life Cycle Cost Analysis
  • Military Mobilization and Reserve Forces Studies.