Defense Department Considers Ending Civilian Pensions for Military Retirees

Last week Defense Secretary Chuck Hagel presented recommendations resulting from the recently completed “Strategic Choices and Management Review,” designed to lay out options for the department in addressing budget cuts and sequestration.

One of the changes proposed by Hagel to address sequestration cuts over the long term is eliminating civilian employment pensions for military retirees who go back to work for the federal government as civilian employees.

Currently, soldiers, airmen, and sailors who retire from the military after twenty (20) ears service can work for the Defense Department as civilian employees earning more money in their same position.

With over 134,000 military retirees in civilian positions at the Defense Department, the proposed changes would save the department money through lowered contributions into the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS).

National Active and Retired Federal Employees (NARFE) Association President Joseph Beaudoin said in a statement, “No civilian employee should receive lower total compensation because they served in the military, ever… This proposal should be rejected completely as an option, even under the worst budget scenarios.”

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