Accession Number : AD0663176

Title :   EARLY RETIREMENT AND INCOME MAXIMIZATION: SOME EFFECTS OF THE ECONOMIC INCENTIVES IN THE MILITARY RETIREMENT SYSTEM.

Descriptive Note : Final rept.,

Corporate Author : STANFORD UNIV CALIF

Personal Author(s) : Lenz,Allen J.

Report Date : 15 DEC 1967

Pagination or Media Count : 18

Abstract : The military retirement system functions to encourage and permit withdrawal of career personnel from the military forces at relatively young ages, in order that the military organization may maintain a desired degree of 'youth and vigor'. Most military retirees enter the civilian labor force after completing their military careers. During the second career years, the retirement annuity is not an old age pension. Rather, at least in part, it serves to compensate military retirees for reduced civilian employment income levels which stem from a late entry into civilian employment. The research which this paper describes investigated the economic incentive structure resulting from the existing military retirement system and civilian second career opportunities. It concludes that there are some indications that short (20 year) military careers may be more economically rewarding than longer careers, providing a positive economic incentive to early retirement for certain categories of personnel, including the more highly educated officers. (Author)

Descriptors :   (*MILITARY PERSONNEL, SALARIES), EMPLOYMENT, OFFICER PERSONNEL

Subject Categories : Personnel Management and Labor Relations

Distribution Statement : APPROVED FOR PUBLIC RELEASE