The Accrual Method for Funding Military Retirement: Assessment and Recommended Changes

Abstract

Until 1984, the amount appearing in the DoD budget under "military retirement" was the annual payment to retired military personnel or their survivors--equaling approximately $16 billion that year. That amount reflected the number of retirees and the retirement system that resulted from force-management decisions made 20 or more years earlier. Those managing the personnel force in 1984 essentially had no control over these retirement-budget payments. Similarly, force managers in 1984 could make decisions influencing future retirement expenditures without answering for them in their own budgets. Policymakers were concerned that this system could result in increasingly expensive retirement plans, a more senior force, more retirees than justified by force-readiness considerations, and poor decisions involving substitution of civilian and military personnel and between capital and labor investments.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 2001
Accession Number
ADA393737

Entities

People

  • David W. Grissmer
  • James R. Hosek
  • Richard L. Eisenman
  • William W. Taylor

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Active Duty
  • Air Force
  • Budgets
  • Congress
  • Department Of Defense
  • Economic Models
  • Enlisted Personnel
  • Federal Budgets
  • Investments
  • Law
  • Marine Corps
  • Military Budgets
  • Military Personnel
  • Money
  • National Security
  • Personnel Management

Readers

  • Government Contracting/Procurement.
  • Military Mobilization and Reserve Forces Studies.