The Department of Defense can change its retirement system to save billions of dollars and provide benefits to more veterans while still using it as a recruiting tool.
That's the determination of the Rand Corp., which has produced a study that says reconfiguring retirement benefits from defined benefit to a combination of DB and defined contribution and changing various other aspects of the system can allow the DoD to cut expenses, provide current active-duty troops with more pay, offer incentives to retain troops in critical missions and still use retirement benefits to recruit prospective service members.
According to the study, released last week, the proposed changes would save between $1.8 billion and $4.4 billion annually.
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