LOLITA C. BALDOR, Associated Press
WASHINGTON (AP) — U.S. officials say the White House is rejecting a proposal to largely replace the military’s TRICARE health care system but has agreed to further study a proposal that would let service members participate in retirement savings plans like a 401(k).
The administration is prepared to support 10 recommendations made by the Military Compensation and Retirement Modernization Commission, mainly for less sweeping changes and improvements affecting child care, education, travel and other benefits. The decisions reflect recommendations made by the Pentagon.
The panel released a report in late January laying out 15 recommendations they estimated would generate more than $20 billion in savings over four years. U.S. officials described the administration plans on condition of anonymity because they were not authorized to discuss them publicly.
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WASHINGTON (AP) – The House Armed Services Committee has passed a nearly $612 billion defense policy bill.
The measure would change military retirement benefits and keep the A-10 attack jet flying, even though the Pentagon wants to retire it.
The 60 to 2 vote came after 4 a.m. Thursday following a more than 18-hour committee session.
The committee agreed to move on retirement reforms suggested earlier this year by the Military Compensation and Retirement Modernization Commission.
Under the change, military members could still get defined pension benefits, but they could also enroll in a thrift savings plan, like a 401(k), that would include some matching contributions from the government.
The change would allow troops to get at least some retirement benefit even if they don’t stay in the military for 20 years.