Redux and readiness : Congress, the Defense Budget, and Military Retirement in 1999

Abstract

In 1999, the l06th Congress enacted military retirement reform for personnel entering the military after 31 July 1986. This thesis examines the process by which this reform was enacted and its impact on defense spending. To conduct the analysis, a review of articles, journals, government reports, and legislation related to retirement reform was completed. The estimated cost of reform was $796 million for FY 2000 and totaled nearly $6 billion by FY 2004. Congress modified military retirement by offering members the choice of remaining under Redux and receiving a $30,000 bonus or retiring under the High Three Plan. The 1999 Emergency Supplemental appropriated $10.9 billion dollars to improve military readiness, including funds for retirement reform assuming that it would improve retention and readiness. Congress approved the changes in the 2000 Authorization Act. Reform was facilitated by the designation of the funds as an emergent requirement to improve readiness and the emergence of an on-budget surplus of $14 billion for FY 2000.