Report of the Military Compensation and Retirement Modernization Commission: Final Report

Abstract

The Military Compensation and Retirement Modernization Commission was established by the National Defense Authorization Act (NDAA) for FY 2013 to provide the President of the United States and the Congress specific recommendations to modernize pay and benefits of the Uniformed Services. This report addresses those mandates and principles, discusses in detail the areas where reform is required, states the considerations that should guide reform, and offers specific recommendations to solve the problems that were identified. For example, the Commission recommends moving from a purely defined benefit to a blended defined benefit and defined contribution retirement system. It proposes a new command dedicated to the oversight of joint readiness, especially readiness of the medical force. It recommends improving access, choice, and value of the health benefit for active-duty families, Reserve Component members, and retirees. It also outlines ways to sustain Service-member education programs and strengthen numerous family support programs. These recommendations respond to the preferences of a new generation of Service members by improving choice and flexibility within their compensation package.