A new report by a liberal-leaning think tank recommends a dramatic overhaul of military pay, retirement and health care benefits as part of a $1 trillion cut in defense spending over 10 years.
The Center for American Progress calls for capping pay raises, eliminating military health benefits for many retirees who are covered by an employer-provided plan, and reducing the value of military retired pay as well as making retirees wait until age 60 to start receiving it.
Recommendations are included in a report, Rebalancing Our National Security, released Oct. 31 by the progressive think tank and advocacy group. The report opposes across-the-board cuts in defense spending that could occur beginning in January under sequestration but still calls for major reductions in defense spending.
Capping pay raises, the report says, could save $16.5 billion over the next five years. Reducing retiree health care benefits, through a combination of restricting care and raising fees, could save $15 billion a year. Reforming military retired pay could save, in the short term, up to $13 billion a year, and over time could save up to $70 billion a year off the current plan.