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Author: Publisher: ISBN: Category : Languages : en Pages : 30
Book Description
The Ninth Quadrennial Review of Military Compensation (QRMC) is reviewing ways to structure military compensation to improve military recruiting, retention and manning. Retirement pay is a significant component of the current compensation package, and there is concern that the structure of these benefits is not competitive with that offered by the private sector. The current military retirement system is a defined benefit program, with some limited ability to participate in a thrift savings plan (TSP). In contrast, the private sector increasingly uses defined contribution plans, which give the employee an opportunity to manage at least part of the retirement plan benefits. Expansion of the TSP component of military retirement benefits would potentially increase the attractiveness of military compensation. Given the sheer size of the military, however, several concerns have been raised about the implications of such a dramatic shift in compensation. At least four major questions have been asked questions surrounding the level of service member participation, potential effects on total savings, implications for federal tax revenues, and the administrative costs associated with such a program. memorandum summarizes both the theoretical and empirical literature devoted to these issues. The evidence suggests that participation and contribution rates are strongly related to the size of matching contributions made by the employer. In addition, surveys show that military personnel would increase participation in TSP if the government were willing to make matching contributions. Given the financial risk associated with these plans relative to insured, defined benefit plans, there is also evidence that financial education (preferably provided by the employer) increases employee saving and improves contribution allocation.
Author: Publisher: ISBN: Category : Languages : en Pages : 30
Book Description
The Ninth Quadrennial Review of Military Compensation (QRMC) is reviewing ways to structure military compensation to improve military recruiting, retention and manning. Retirement pay is a significant component of the current compensation package, and there is concern that the structure of these benefits is not competitive with that offered by the private sector. The current military retirement system is a defined benefit program, with some limited ability to participate in a thrift savings plan (TSP). In contrast, the private sector increasingly uses defined contribution plans, which give the employee an opportunity to manage at least part of the retirement plan benefits. Expansion of the TSP component of military retirement benefits would potentially increase the attractiveness of military compensation. Given the sheer size of the military, however, several concerns have been raised about the implications of such a dramatic shift in compensation. At least four major questions have been asked questions surrounding the level of service member participation, potential effects on total savings, implications for federal tax revenues, and the administrative costs associated with such a program. memorandum summarizes both the theoretical and empirical literature devoted to these issues. The evidence suggests that participation and contribution rates are strongly related to the size of matching contributions made by the employer. In addition, surveys show that military personnel would increase participation in TSP if the government were willing to make matching contributions. Given the financial risk associated with these plans relative to insured, defined benefit plans, there is also evidence that financial education (preferably provided by the employer) increases employee saving and improves contribution allocation.
Author: Mark R. Garrigus Publisher: ISBN: 9781423511106 Category : Languages : en Pages : 177
Book Description
Since January 1, 2002, uniformed service members have been able to set aside a portion of their income into a tax-sheltered, defined contribution plan. This study analyzed the level of understanding and perception that military members have concerning the UNISERV TSP. It also assessed the training, education, and awareness levels in the areas of personal finance and federal income tax incentives related to retirement savings vehicles. A 35-question written questionnaire was administered to 189 military members from 43 commands in Navy Region Southwest. The study revealed that the level of training received to date is inadequate and insufficient for Navy personnel to make educated and informed decisions regarding retirement savings in general, including the UNISERV TSP (p less than or equal to .01) . Related conclusions revealed that a non- matching UNISERV TSP has no measurable effect on retention or recruitment and a matching program could improve the contribution rate by 200 percent. The predominate recommendation is for senior leadership to increase their commitment and resources toward training all Navy personnel on the mechanics and long-term benefits of the UNISERV TSP and retirement savings.
Author: DaRayl D. Davis Publisher: Xlibris Corporation ISBN: 1469100754 Category : Business & Economics Languages : en Pages : 269
Book Description
If Americans think the money theyve been able to salvage from the retirement savings meltdown caused by the recent financial crisis is theres to keep, theyd better think again! Economic Secrets of the New Retirement Environment exposes how our broken financial system will affect everyones retirement, whether you are already in retirement, nearing retirement or more than a decade or two away. Once the secrets have been revealed, you will be shown the best ways to build, protect and fully enjoy your wealth as well as how to pass your hard-earned assets to your heirs with minimum erosion and taxation.
Author: Richard G. De Guzman Publisher: ISBN: 9781423532361 Category : Languages : en Pages : 125
Book Description
The transition from defined benefit to defined contribution retirement plans represents the most significant change in both the private sector and civil service employee retirement systems in the last twenty years. The Thrift Savings Plan (TSP), a tax-deferred, defined contribution plan for federal civilian employees, was established in 1986 as part of the Federal Employee Retirement System. This thesis discusses the costs and benefits of a TSP plan for the uniformed services. The objective of the research addresses the costs of a military TSP. Government studies, periodicals, and the Internet were examined to identify the strengths and weaknesses of the federal TSP. Next, a probabilistic spreadsheet model using Monte Carlo simulation was developed to forecast deferred tax revenue, which represents the most significant cost associated with a military TSP. An analysis of the results indicates that the simulations come within 2.6 percent of the initial Department of Defense's forecast. On October 30, 2000, the National Defense Authorization Act for fiscal year 2001 was enacted. This act included a military TSP called the Uniformed Services Payroll Savings Plan. It is recommended that future cost estimates use probabilistic spreadsheet modeling to provide more relevant information to the decision making process.
Author: Publisher: ISBN: Category : Languages : en Pages : 125
Book Description
The transition from defined benefit to defined contribution retirement plans represents the most significant change in both the private sector and civil service employee retirement systems in the last twenty years. The Thrift Savings Plan (TSP), a tax-deferred, defined contribution plan for federal civilian employees, was established in 1986 as part of the Federal Employee Retirement System. This thesis discusses the costs and benefits of a TSP plan for the uniformed services. The objective of the research addresses the costs of a military TSP. Government studies, periodicals, and the Internet were examined to identify the strengths and weaknesses of the federal TSP. Next, a probabilistic spreadsheet model using Monte Carlo simulation was developed to forecast deferred tax revenue, which represents the most significant cost associated with a military TSP. An analysis of the results indicates that the simulations come within 2.6 percent of the initial Department of Defense's forecast. On October 30, 2000, the National Defense Authorization Act for fiscal year 2001 was enacted. This act included a military TSP called the Uniformed Services Payroll Savings Plan. It is recommended that future cost estimates use probabilistic spreadsheet modeling to provide more relevant information to the decision making process.
Author: 
Author: 
Author: United States. Congress. House. Committee on Government Reform
Author: United States. Congress. House. Committee on Government Reform
Author: Mark R. Garrigus
Author: DaRayl D. Davis
Author: 
Author: Richard G. De Guzman
Author: Jane McIntyre
Author: 
Author: United States. Congressional Budget Office