hindsight2020

In what universe is a retirement contribution you have to fund from your own paycheck beat an A fund? Thats some common core math right there.

Im a 10 year o4 who falls under the middle group who can choose to convert or remain, and i will unequivocably be opting to remain under the old system. That .5 multiplier difference becomes a 10% pension payable immediately. Thats money saved from my own check i can use for a higher lifestyle in working age. Its beyond insulting they even made my year group eligible for that garbage in the first place, as i wouldnt even have the maturity date to take advantage of the supoosed compound interest.

It would be one thing if we were talking about an airline A fund. THAT promise is not worth the paper is written on. But we re talking about a DOD A fund. I can come up with plenty yellow ribbons and political ads to justify that payment until my death. To each their own.

To be clear, the B fund portion of this hybrid system is only 1%, the rest is mickey mouse 401k. You know what 1% of e5 money is? Happy meal money once a year.

The real truth here is that the Dod is not saving that much money on a 10% A fund shave. They did this to give math illiterate one termers the illusion that theres a real retirement benefit to not making it to 20, while preserving the kind of regional airline style occupational turnover the military is institutionally known for. They dont want early millennials like me who can count with their fingers and figure out our daddys retirement was in fact better, and im gonna get mine too. In the words of good fellas: Eff you pay me. Boomers are not gonna bend me over twice in life i can assure you of that. If i was a post 2018 new entrant (when the hybrid becomes the only option) no way in hell i stay for a full 20, the airline b fund is way ahead at that point.

To repeat myself: IF IT COMES OUT OF MY PAYCHECK, IT'S NOT A BENEFIT, YO.