An Account for Saving Active Pay (ASAP): An Employer-Sponsored Saving Plan for Active Duty Military Personnel

Abstract

Legislators, recognizing the need to increase the national savings rate, have introduced profit-sharing and thrift savings plans to civilians, but have not included the military. This thesis examines the need for and the costs and benefits of an employer-sponsored savings plan for active duty military personnel. It concludes that it is both feasible and cost-effective to tailor tax-sheltered annuities (TSA's) currently available to nonprofit organizations to the military compensation system. It proposes an account for saving active pay (ASAP) that would permit contributions of one percent (%) of base pay (up to the 20 percent which TSAs allow) per year of military service with the account maturing upon termination of active duty. This program, as envisioned for active duty military personnel, would provide an incentive to improve personal financial management practices. This, in turn, would encourage military personnel to contribute to improvement of the national savings rate.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1990
Accession Number
ADA241751

Entities

People

  • Stephen E. Honan

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Commerce
  • Employment
  • Enlisted Personnel
  • Families (Human)
  • Financial Management
  • Governments
  • Investments
  • Management Personnel
  • Military Personnel
  • Money
  • Motivation
  • National Security
  • Navy
  • Organizational Structure
  • Personnel Management
  • Students
  • United States

Readers

  • Defense Acquisition Program Management
  • Government Contracting/Procurement.
  • Military Mobilization and Reserve Forces Studies.