Military retirement pay is changing.
This week President Obama sent a letter to congressional leaders signaling support for the 15 recommendations drafted by the Military Compensation and Retirement Modernization Commission in January.
While the president didn't specifically endorse the changes, change is coming.
Overall, the recommendations would drop military retirement pay by about 20 percent. To close the gap, troops will be offered a traditional retirement account.
The DOD would match the funds a service member deposits into the account, up to 5 percent of basic pay. The service member would own the account regardless of how many years they serve.
Lawmakers have been long calling for drastic change in military budgets. After more than a decade of war, personnel costs such as pay, health care and retirement have skyrocketed. The center for Strategic and Budgetary Assessments says in the last 10 years the cost per person on active duty rose 46 percent. USA Today reports that, after inflation, personnel costs will eat the entire defense budget by the year 2039.
The recommendations for changes to military retirement as well as other benefits, including healthcare, have been sent to the president's advisers to be refined. The president is expected to bring his changes to Congress by April 30.