Contributory Retirement System for Military Personnel

The three types of military benefits presently available to members are nondisability retirement, disability retirement, and survivor benefits. The Department of Defense (DOD) has identified defects in the present nondisability retirement system and has proposed legislative revisions. The proposed legislation reforming the military retirement system does not include a contributory feature. The basic philosophy behind contributory plans is that shared costs create mutual responsibility for providing benefits that are advantageous to both employee and employer. Employee contributions are advantageous from the employer's standpoint because they augment the total funds available to pay retirement benefits. Generally, the same advantages and disadvantages of contributory retirement plans in the non-Federal sector apply to the uniformed services.