Bill Overview
Title: To amend title 10, United States Code, to eliminate the eligibility age for retired pay for non-regular service in the Armed Forces.
Description: This bill eliminates the minimum age at which members of the National Guard and Reserve who qualify for a reserve retirement may receive retired pay. Current law generally requires reserve retirees to be 60 years of age to receive retired pay, although the age can be lowered if the individual has performed certain types of active duty or active service. Under this bill, reserve retirees could draw retired pay immediately upon retirement regardless of their age.
Sponsors: Rep. Palazzo, Steven M. [R-MS-4]
Target Audience
Population: Individuals in the National Guard and Reserve eligible for retirement benefits
Estimated Size: 490000
- The bill affects individuals who have served in the National Guard and Reserve, specifically those who qualify for reserve retirement.
- Currently, reserve retirees must be a minimum of 60 years old to receive retired pay unless they meet certain criteria for early pay.
- By eliminating the age requirement, all eligible reserve retirees can begin to collect retirement pay immediately upon retirement, regardless of age.
- The National Guard and Reserve consist of hundreds of thousands of members annually, and many may qualify for retirement benefits each year.
- Thus, all individuals who have served in these military branches and qualify for retirement will be directly impacted as they will have the option to draw retirement pay earlier.
Reasoning
- The primary beneficiaries of the policy will be those who have served in the National Guard and Reserve and qualify for retirement benefits. This group will see a direct financial impact as they can access retirement pay earlier than previously allowed.
- The budget for the policy suggests a significant number of individuals will benefit, but not all who qualify may choose to retire as soon as they are eligible, given various personal and financial considerations.
- The diversity of individuals in the National Guard and Reserve means that experiences and impacts will differ based on personal circumstances, financial needs, and career plans after military service.
- Individuals not affected by the policy will include those who are not in the National Guard or Reserve, those not yet eligible for retirement, or those who plan to continue serving beyond their eligibility date.
Simulated Interviews
Police Officer (Texas)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 15/20
Statement of Opinion:
- This policy is a huge relief. I've been contemplating leaving the Guard because my responsibilities at home and work have increased.
- Getting my retirement pay now helps offset my decision to devote more time to my family.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
National Guard Logistics Specialist (California)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 14.0 years
Commonness: 12/20
Statement of Opinion:
- This new policy makes it easier for me to transition to civilian life when I decide to make that move.
- Knowing I can draw retirement pay as soon as I leave is comforting.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Accountant (Florida)
Age: 42 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- Due to my health, retiring early has been on my mind.
- The financial security of retirement pay being available now is a major stress reliever.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 5 |
Retired Veteran Advocate (Illinois)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- This policy doesn’t impact me directly as I already receive my retirement pay.
- I think it’s beneficial for younger reserve retirees who may face different financial pressures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Construction Worker (New York)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 12.0 years
Commonness: 10/20
Statement of Opinion:
- This change is a blessing; it allows me to attend college without worrying about work as much.
- The immediate financial support is a game-changer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Healthcare Worker (Virginia)
Age: 30 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 18/20
Statement of Opinion:
- I plan to serve for some time yet, so the policy has little immediate impact on me.
- However, it's good to know I can access my pay early when I do retire.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Small Business Owner (Ohio)
Age: 60 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- I've already been receiving my retirement pay, so this policy doesn't change much for me.
- I think it's a good move for those younger than me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Teacher (Washington)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 18.0 years
Commonness: 14/20
Statement of Opinion:
- I'm excited about the new policy because it gives me the flexibility to focus on teaching and family without financial stress.
- The retirement pay will help immensely as I prioritize my life goals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
IT Specialist (Georgia)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 23.0 years
Commonness: 13/20
Statement of Opinion:
- While I'll stay in my IT role and with the Reserve for a bit longer, it's nice to have the option to access funds earlier if needed.
- This policy might reduce the workforce in the Reserve as people might opt for early retirement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Financial Advisor (New Jersey)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- I've just started enjoying my retirement and the change in policy won't affect me since I already receive my benefits.
- Good for my colleagues who retired earlier in their careers, though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $1500000000 (Low: $1200000000, High: $1800000000)
Year 2: $1550000000 (Low: $1240000000, High: $1860000000)
Year 3: $1600000000 (Low: $1280000000, High: $1920000000)
Year 5: $1700000000 (Low: $1360000000, High: $2040000000)
Year 10: $1900000000 (Low: $1520000000, High: $2280000000)
Year 100: $3000000000 (Low: $2400000000, High: $3600000000)
Key Considerations
- The change would have a direct fiscal impact on defense spending as benefits are paid out earlier.
- Current reserve retirees accumulate significant benefits at the age of 60 and beyond; this policy alters that fiscal landscape.
- It might necessitate adjustments in long-term budgeting for military retirements to ensure fiscal balance.
- The scale of individuals affected is large, impacting hundreds of thousands potentially eligible to draw earlier.