The Department of Defense has unveiled a sweeping proposal to restructure the military's retirement program. Under the proposal, the current 20-year fixed-income pension would remain in place, but would ultimately result in smaller monthly checks. The military would offset that with a 401(k)-style plan for all troops who serve at least six years, a cash retention bonus given after about 12 years of service and a lump-sum payment to those with 20 or more years of service upon retirement. "When compensation is paid out sooner, it has more value to the typical member who is assessing whether to continue in the military," according to a report on the proposals.

Related Summaries