If you've served in the last 30 years you've seen suggestions like this before. In the mid-80's the REDUX retirement plan was introduced, and the end of the "Final Pay" retirement calculation in favor of the "High 3 Average."
You are likely to see several measures considered over the next three to five years.
- The end of the immediate collection retirement for new enlistees: Military retirees would collect their retirements similar to reservists. After a minimum of 20 years of service, the member would become eligible to collect their retirement when they turn 60.
- Earlier vesting with TSP matching: The military could begin matching member TSP contributions (which they are now permitted by law to do), perhaps connected to a second enlistment, or extended active-duty service commitment. If this measure were combined with deletion of high-year tenure measures (which would allow service members to serve 40-years or more), this might replace the current retirement system.
- Continued increases in Tricare enrollment fees.
- Requiring military retirees with access to health insurance from another source to use it.
- Reductions in access to Commissaries (or closing military commissaries all together).
- Ending or significantly reducing educational benefits for officers.
- Ending spouse benefits for education or job training.