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New Military Retirement Plan

Washington 25 November 2015 – President Obama signed the $607
Billion budget and policy bill on Wednesday, but Lawmakers still need
to pass a defense appropriations bill for fiscal 2016 to start new
programs and acquisition plans. Lawmakers are hopeful that the bill
can be completed before December 11, when a short-term budget
extension expires.

The most significant result for troops is the renewal of dozens of
specialty pay, bonuses, and a overhaul of military retirement.

Troops will see a 1.3 percent pay increase in January but General
officer pay will stay at fiscal year 2015 levels.

Starting in 2018, newly enlisted troops will no longer have the traditional
20-year retirement plan. Under the changes, it will be replaced with a
pension and investment system, featuring automatic contributions to
troops’ Thrift Savings Plans and an opportunity for government matches
to personal contributions.

The new retirement system is expected to give roughly 4 in 5 members
some sort of retirement benefit when they leave the military, as opposed
to the current system which benefits only 1 in 5