Toward Efficient Military Retirement Accrual Charges

Abstract

The retirement accrual charge system introduced in 1984 brought visibility to the military retirement liability resulting from personnel policy decisions to ensure that future military retirement benefits would be funded. However, because it mandates a single accrual charge rate for all services, the system sends inaccurate signals of the total and marginal costs of the accruing liability to decision makers. This makes the total costs of the liability accruing to the Army, Navy, and Marine Corps active components (ACs) look higher than they are in reality, and the cost of the liability accruing to the Air Force AC looks lower.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 2017
Accession Number
AD1085146

Entities

People

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

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Air Force
  • Congress
  • Corporations
  • Cost Estimates
  • Department Of Defense
  • Department Of Veterans Affairs
  • Enlisted Personnel
  • Financial Management
  • Health Care
  • Intellectual Property
  • Law
  • Military Personnel
  • Simulations
  • Social Sciences
  • Steady State
  • United States

Readers

  • Criminal Law
  • Life Cycle Cost Analysis
  • Military Leadership and Professional Education.