Unintended Effects of the New Military Retirement System.

Abstract

In June 1986, the Military Retirement Reform Act was signed into law with the intention of saving $2.9 billion in the 1986 accrual funding of the military retirement budget. This Note analyzes the potential effects of the new policy on personnel retention. Previous analyses conducted by the government to assess the effects of this new retirement policy have been based on the annualized cost of leaving (ACOL) model. Here, a new methodology, the dynamic retention model, is used to demonstrate that the ACOL methodology suffers consider able biases and that the potential effects of the new policy on retention are likely to be much greater than the ACOL model predicts. For instance, personnel losses may be larger than expected and the retention of higher quality personnel is likely to be reduced mor than the retention of other personnel. The negative retention effects will probably be observed sooner than the intended cost savings.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
May 01, 1987
Accession Number
ADA183595

Entities

People

  • R. Y. Arguden

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Administrative Personnel
  • Air Force
  • Business Administration
  • Compensation
  • Corporations
  • Costs
  • Department Of Defense
  • Enlisted Personnel
  • Governments
  • Human Resources
  • Law
  • Management Personnel
  • Military Personnel
  • Organizational Structure
  • Personnel Management
  • Personnel Retention
  • Side Effects

Readers

  • Economics
  • Naval Personnel Management