 Big decision on retirement pay looming for service members:

According to military news –
Service members must choose soon whether to keep their retirement plans or enroll in a new plan that more closely resembles those available in the private sector. Training required for service members to decide whether to switch to the new plan, known as the Blended Retirement System, must be completed by Dec. 31.
Currently, retired service members each month receive 50 percent of the average of their highest three years of base pay, plus 2.5 percent more for each year of active duty after 20 years.
Under the new plan, the payout is reduced to 40 percent and 2 percent more for each year of active duty after 20 years. However, the new plan includes matching contributions to the Thrift Savings Plan, a program similar to a traditional 401(k). Service members can choose to invest their money in different funds, with varying risk.

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