Military exchanging the 20 year retirement benefit for a 401(k)?

This could be the future benefit package if Pentagon advisors succeed in replacing a long-standing tradition of drawing retirement after 20 years of active duty – regardless of age – with an employer-matched savings program much like the rest of Corporate America. In response to the defense spending budget cuts necessary to raise the debt ceiling, the Defense Business Board recommended ditching the outdated compensation package that has lured millions to serve their country because it is “unfair, unaffordable, and inflexible.” Detailing the problems and recommendations in their July 21, 2011 report Modernizing the Military Retirement System, the 401(k) program will allow all service members to earn retirement savings as they contribute into their own accounts that rollover to their civilian careers should they decide to leave the military. Under the current retirement system, only those who serve 20 years or more are eligible for benefits and the board suggests this is not competitive with the civilian workplace. In addition to 401(k) matching for all active duty service members, the board also recommends placing a premium on specific job fields such as combat duty and offering extra contributions for length of service. This type of flexibility in contributions will “reward longer service” and “high risk assignments” which could be more of an incentive as separation from families and hazardous duty often lead to attrition, especially for younger members.1 Although improving the retirement system to compete with civilian employment benefits by providing 401(k)s for all employees is worth considering, is this really the best alternative to offer our men and women who surrender their own personal freedoms to keep our country secure? In response to CBS Investigative Report, Radical overhaul of military retirement eyed, blogger “1969Vet” presents the following argument: “My retirement is not a benefit, it is something I have earned over the past 24 years, through sacrifices and unquestionable commitment to my country and what it stands for. Were the sacrifices I made for my country and countrymen over the past 24 years a benefit?”2 The “Vet” makes a good point – unlike Corporate America, we ask our service men and women to voluntarily obligate themselves for a contracted period of time to do whatever is necessary; wherever that may be; without regard for their own preferences; little to no consideration for family responsibilities; often in deplorable, unsanitary, and extremely dangerous conditions for about the same benefits and compensation that Best Buy offers the Geek Squad.3 We should now expect them to sacrifice so much for the benefit of making withdrawals from a 401(k) at the age of 60? What is the motivation to serve your country for 20 years or more if you can receive similar compensation from civilian employers? I asked my own son who is currently serving in Afghanistan how he feels about the proposal and he brought up a concern that many soldiers approaching the ten year mark face: under the current free retirement system, the longer you stay on active duty and climb in rank, the higher your retirement pay will be when you reach your twentieth year of service and it doesn’t require a monthly payroll deduction. That is a huge motivating factor when weighing reenlistment options against leaving the Armed Forces. Take away that motivation and the most experienced, highly skilled leaders that we have spent time and money training to use mission-specific equipment might just choose a comfortable civilian life. Wouldn’t our country be less secure with a less experienced military? Matching contributions at some percentage in a privately-managed 401(k) levels the playing field for all service members but let’s not take the 20 year retirement system completely off the table either. Considering that most people with 401(k)s have seen a drastic decline in their accounts since 2008, ending the 20 year retirement system might not be the best recruiting tool to attract the 17 – 24 year old high school grads, especially when the economy improves. It has only been in the last few years that recruiting goals for all branches of the military have been made – a first in over 30 years – due in part to the high levels of unemployment. Once the recession is over, there is a very real possibility that the numbers of quality men and women enlisting will drop and once again recruiters will have to entice eligible young Americans to choose the military over alternative industries that might offer better benefits. While the majority of businesses in the United States have stopped offering full retirement programs, 30% will contribute to a type of 401(k); 50% provide nothing at all; yet there is still about “20% of workers ... enrolled in traditional pensions ... according to Labor Department statistics and estimates by Boston College's Center for Retirement Research.”4 Shouldn’t the United States military rank in the top 20% for employment benefits? Clearly across the board budget cuts are necessary during our current economic downturn and defense spending should be tightened in some areas but why retirement and why now? Former Defense Secretary Robert Gates and current Defense Secretary Leon Panetta are both advocating for changing military retirement benefits to be delayed until after age 60 to save upward of $250 billion over the next 20 years.5,6 It doesn’t take a Wall Street financial analyst to quickly look at the annual spending on the wars in Iraq and Afghanistan to deduce that the costs just for one year alone exceed $250 billion: Iraq’s 2008 costs were $140 billion;7 Afghanistan’s 2011 tab to date is $119 billion.8 Maybe we should take a harder look at our priorities and decide if the price tag for the War on Terror is worth sacrificing a time-honored custom dating back over 100 years. Notes: 1. http://dbb.defense.gov/pdf/DBB_Military_Retirement_Final_%20%20%20%20Presentationpdf.pdf 2. Attkisson, Sharyl. Radical overhaul of military retirement eyed. August 15, 2011 6:38 PM http://www.cbsnews.com/stories/2011/08/15/eveningnews/ main20092652.shtml. blog by 1969Vet. August 22, 2011 2:56 PM EDT 3. Best Buy Geek Squad employee with a few years experience could have a 401(k) with employer contributions and typically earn $15.00 per hour which would be comparable to an E5 based on a 40 hour work week 4. http://archive.truthout.org/article/corporate-america-pulling-back-pension-safety-net 5. http://hamptonroads.com/2011/06/gates-seeks-big-changes-military-pay-pensions 6. http://www.usatoday.com/news/military/story/2011-09-07/Proposed-changes-in-military- benefits-have-troops-worried/50305324/1 7. http://www.foxnews.com/politics/2010/08/30/cbo-years-iraq-war-cost-stimulus-act/ 8. http://abcnews.go.com/Politics/afghanistan-war-costs-soar-obama-troops- announcement/story?id=13902853

School Uniforms

The debate about school uniforms is one that hits home for me. I have a unique perspective of school uniforms, and the effect they can have in a school. I went to a private school in middle school that had a school uniform. I had a very bad social anxiety, so I struggled with just being at school in general. What also made dealing with my social anxiety harder to deal with, was not having the money to have expensive clothes. It was hard for me to fit in with wearing similar clothes everyday that were not what was considered to be “cool”. For the most part, I had maybe 2-3 shirts and a pair or two of pants. The school uniform was implemented when I was in the 4^th grade. This was put into place with a huge amount of controversy.

Students hated the new dress code. It was constantly talked down upon. Students tried to break the uniform in any way they could. It was something new and they just refused to adapt. The dress code required a solid color polo without an emblem. People would intentionally wear polos with emblems just to defy it. I too didn’t like the dress code at first. I hated tucking my shirt in. However, as time went on I grew to understand why it is important. It makes it easier for people to fit in. There is too much emphasis on what people are wearing in school these days. Students don’t realize just how hard it can be to some students who cannot afford or wear the type clothes that are considered popular.

There is also the fact that school uniforms are important due to their image. School uniforms are less distracting in school. They allow students to worry less about what the student next to them is wearing, and more about school work. It also keeps young girls from wearing too revealing of clothes, which should show positive results for both girls and boys when it comes to school work. It helps create a positive work environment for the students. They can start getting a sense of dressing appropriate and in a more business like way.

The new school uniforms had nothing but positive results for me. I felt more comfortable going to school. It is hard to fully concentrate on school if you are constantly worried about what people may think about what you are wearing. It just made me feel like I fit in more. This is even more important to those students who suffer from social anxiety, as it is already a huge issue just being around people. When that is coupled with other things such as clothes, it can start to become a really big issue. I noticed that people seemed to be more open to be friends with other people they normally would have ignored. They wouldn’t immediately write them off due to what they were wearing.

Most students hated the dress code at first. However, as time went on, people started to not care as much. The things that tended to irritate most for an extended period of time was having to wear belts and tuck their shirts in. I too continued to not like this throughout middle school. It was due purely to comfort. Belts and tucking your shirt in was just uncomfortable. The other aspects of the dress code eventually faded away as people grew used to it. It was no longer the big problem it was initially. I think this is important to note, because even though you have huge opposition at the start, it will die down. This makes the rewards well worth the initial hassle.

It is worth the inconvenience to the students for the positive results it will have in the long run. It is worth it to the students who have troubles. Most people seem to forget about how this change could help others. If they stopped thinking about the negatives, and thought about the positives, maybe they would change their opinions regarding uniforms. It just makes such a more positive environment for students to work in. Now that I am at the age where having my own kids is coming into question, my views on uniforms are even more solidified. Even though I no longer have social anxiety, I still understand that this is something that helps some, and shouldn't be ignored.