No one is forced into paying into a plan. One of the things MANY of use have to decide is.... do I save now or play now. If anything, making this decision in uniform will better prepare them for a time when your entire paycheck is taxed, where retirement isn't just handed out.... it's contributed to, and where you have to budget for food... and toys.
It's a step closer to the real world.... and it makes that eventual transition to the real world easier. But yes, it may mean less spending money.
Ok, I've been reading this discussion and the other thread regarding Military Pay and Retirement. It seems that there is a discussion that the military should better mirror the civilian sector, and as stated above, better prepare for the transition to the real world.
So here goes. Instead of baby steps, take the whole leap. This will have a larger impact on the enlisted ranks since they make up the bulk of the military, of course the same would go for the officers.
1. Almost no civilian company offers 30 days vacation to new employees, for unskilled workers there is often no vacation for at least the first year. Eliminate the 30 days leave at the point of enlistment. The Military can be generous and offer 7 days at the point of enlistment, 14 days after 4 years, 21 days after 8 years and 28 days after 12 years. This will result in less time away from work and would cut down on the number of service members needed.
2. End the current medical system. Most civilian employers do not pay 100% medical. The military could pay 100% for the service member, the dependents would be on a standard plan like most employers offer. The Military would pay a percentage of the cost for dependents, dependents plan would cover Dr. Checkups, there would be co-pays and a deductible, once the deductible has been met then the plan covers 80% of the costs.
3. Get rid of all Commisarys, PX, Class 6, on base movie theaters, bowling alleys, and charge standard rates for green fees and other activities. All dependents would have to pay a membership fee for the Rec Centers.
4. Lower the BAH rate to 80% of the current housing cost and make it part of the service members pay. Tax both BAH and BAS. No civilian company gives tax free housing. BAH would still vary depending on location but would now be just part of the over all paycheck and be taxable....just like the real world.
5. Stop promotions based on TIS, make promotions based off merit.
6. End the 20 year retirement completely, no re-working it or lowering it to 40%. Start a 401K as the only option. Require 4 years of service before they are vested in the plan. Start out the first year with a 1% matching, increase the percentage each year until they reach the max of 5% matching. No retention bonus at 12 years, either you like what your doing or take the option to leave. Of course now that the 20 year retirement is gone, the military should encourage workers to stay until retirement age if they meet the job requirements, just like civilian jobs. Granted many civilians will not stay at their current job from start to retirement, but civilians are allowed to start a new job at any age, so get rid of the age requirements for the military, just like the real world.
7. Unless the service member has a service obligation due to attending an Academy or a ROTC Scholarship, get rid of the service obligation altogether once the initial enlistment obligation is complete. No more re-enlistment for a certain number of years, just like in the real world the service member can quit, be laid off, or be fired just like everyone else.
Do just these changes and you would align the Military with the real world civilian sector. The Military would be just like any other 40 hour work week civilian job and make the transition from the Military to the civilian world seamless.