Proposal To Auto-Enroll Troops

[nasa1974]

What Would a Proposal to Auto-Enroll Troops Mean for the TSP?
By Kellie Lunney February 10, 2015

What Would a Proposal to Auto-Enroll Troops Mean for the TSP? - Pay & Benefits - GovExec.com

"A proposal to significantly increase the number of troops enrolled in the government’s 401(k)-style retirement benefit would affect service members, but also the agency that administers the Thrift Savings Plan..."

 

[Frixxxx]

What Would a Proposal to Auto-Enroll Troops Mean for the TSP?

It means they are going to try and make it the retirement mechanism. I believe that they should make a mandatory buy in to TSP (%), if they get out before retiring they get their amount. If they retire, they surrender the account and get the annuity.

 

[RealMoneyIssues]

It means they are going to try and make it the retirement mechanism. I believe that they should make a mandatory buy in to TSP (%), if they get out before retiring they get their amount. If they retire, they surrender the account and get the annuity.

No thank you... I wouldn't want to give up the money I spent the time to grow...

 

[Frixxxx]

It means they are going to try and make it the retirement mechanism. I believe that they should make a mandatory buy in to TSP (%), if they get out before retiring they get their amount. If they retire, they surrender the account and get the annuity.

No thank you... I wouldn't want to give up the money I spent the time to grow...

My main concern is that most military won't have time to manage their accounts like you, RMI. We could say (Option to buy into military annuity) instead. My comment was including the previous article nasa posted about moving away from a military retirement.

 

[JTH]

IMHO this is more about laying out the plans for a 401K, once this is established, they can ditch the traditional 20-year retirement system. They can't control our 20-year retirement money, but once we are in a 401K, they can manage our money and "help" us decide what is in our best interest...

January 29, 2015: Commission Releases Final Report of Military Compensation Programs

The Services’ retirement system should be restructured to provide retirement benefits to more than one million current Service members who would otherwise leave service without any Government-sponsored retirement savings. Doing so eases the transition of Service members to civilian life by providing them with retirement savings similar to those of their private-sector peers. This recommendation blends the recruiting benefits of a modern 401(k)-type plan, with the retention benefits of the current retirement annuity, lump sum career
continuation pay, and retention bonuses paid at important career milestones in the lives of Service members. Modeling has demonstrated that such a blended system would maintain the Services’ current force profiles. It also provides additional flexibilities to the Services to adjust force profiles if desired to maintain a balanced force. It would also sustain, and may improve retention and increase lifetime earnings of retirees.

 

[nnuut]

This will end up being a terrible screwing of our Military people!:nuts: