Accession Number : AD0668969

Title :   THE ECONOMICS OF MILITARY RETIREMENT.

Descriptive Note : Research paper,

Corporate Author : INSTITUTE FOR DEFENSE ANALYSES ARLINGTON VA PROGRAM ANALYSIS DIV

Personal Author(s) : Fechter,Alan E. ; Mahoney,Bette S.

Report Date : JUL 1967

Pagination or Media Count : 43

Abstract : The paper discusses some economic implications of the military retirement program, which is non-contributory and usually vested only after military personnel have completed twenty years of active service. Two aspects of the retirement system are examined: (1) The influence of the nonvested retirement program upon job mobility; and (2) The effect of the retirement income upon labor force behavior during what are usually considered prime working years. The non-vested retirement program provides military personnel with an important incentive to remain in the Armed Forces until becoming eligible for retirement benefits. The generous retirement income received by retirees reduces their labor force participation after retirement. Differences in labor force behavior among military retirees and between retirees and comparable other civilians, classified by age and level of school completed are consistent with theoretical expectations. Retirees with low weekly wages and high family incomes tended to have low labor force participation rates. In addition, retirees generally had lower participation rates than comparable other civilians. (Author)

Descriptors :   (*MILITARY PERSONNEL, EMPLOYMENT), AGING(PHYSIOLOGY), SALARIES, JOB ANALYSIS, CIVILIAN PERSONNEL, LABOR, EDUCATION, STATISTICAL ANALYSIS, TABLES(DATA)

Subject Categories : Humanities and History

Distribution Statement : APPROVED FOR PUBLIC RELEASE