Military Retirement Changes Coming will not Impact you--only new people
 

New Military Retirement Plan Proposal

Big changes are coming to the military retirement system. Congress has gone back and forth several times, and it looks like the final version of the law will be sent up to the President's desk soon.

This is a major overhaul, but it's important to understand that everyone currently serving will be grandfathered into the current retirement system. So no need to worry about losing your current pension. It also won't start until 2018, so there is some time before these proposed changes take place.

What is changing? The big change is a reduced pension multiplier in exchange for matching TSP contributions from the military and cash bonuses for re-upping at certain points in one's career. The pension multiplier would change from 2.5% per year, to 2.0% per year, a 20% reduction (40% of base pay at 20 years, as opposed to the current 50%).