The Military Wants to Buy You Out

The Military Wants to Buy You Out

The Department of Defense (DOD) has issued a mandate ordering each branch of the military to reduce costs and staffing levels across the board by twenty percent by 2019.  The Air Force is taking the lead in meeting that requirement by moving forward to put an even greater requirement on itself.  The Air Force has set a goal to reduce its workforce by the same percentage within the first year.  The Air Force intends to achieve this goal by offering early retirement and buyouts to civilian personnel.

• Also Read: High-3 Estimator Worksheet: Trends in Federal Retirement Benefit Planning
• Also Read: How-to Navigate Hardship Withdrawal Rules for Federal Employee Retirement Plans
• Also Read: GPO Rules Guide: Understanding Government Pension Offset and Social Security

The Air Force estimates that it will realize savings of over $1 billion over the next five years.  It is suggested that management both domestically and abroad will be targeted to reach the numbers.  The Air Force believes that reducing civilian personnel will give them much needed resources to prepare and train military personnel and prepare those personnel for war missions if the need arises.

Some qualified service personnel have been offered voluntary retirement incentive programs.  The Department of Defense, like other agencies offering VERA and VSIP, will consider a reduction-in-force if VERA and VSIP do not reach the intended targets.  The Air Force is also exploring ways of streamlining resources.

It appears that part of America’s workforce is looking at ways to help stabilize the budget.  Collaboration just might bring America’s budget in balance.

P. S.  Always Remember to Share What You Know.

 

Related Articles

Impacts of VERA

Understanding Federal Employees’ Retirement Systems Better

Financial Advisors and Federal Employees