Military's 1-Year Look Back Retirement Provision Should be Revoked: Multiyear Provision Should be Reviewed

摘要

The military retirement system contains two provisions which allow new retirees to calculate their annuity based on earlier pay scales, if it is to their advantage. The 1-year 'look back' provision has outlived its usefulness and is no longer justified. At times it can discourage individuals from serving longer than 20 years. Therefore, GAO recommends that the Administration's proposal to rescind the provision be enacted. Whether multiyear 'look back' is a cost-effective tool for keeping military careerists well beyond 20 years of service is an open question. GAO recommends that Defense answer this question by demonstrating that keeping senior careerists is a problem and that multiyear 'look back' is a cost-effective solution. If this cannot be demonstrated, GAO recommends that Defense ask Congress to also rescind this provision and, if necessary, seek authority for a suitable alternative to be used selectively.