Are military pensions too 'generous'? - KMOV.com

Are military pensions too 'generous'?

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Defense Secretary Leon Panetta, accompanied by Secretary of State Hillary Rodham Clinton, speaks during an event at the National Defense University in Washington, Tuesday, Aug. 16, 2011. (AP Photo/Susan Walsh) By Susan Walsh Defense Secretary Leon Panetta, accompanied by Secretary of State Hillary Rodham Clinton, speaks during an event at the National Defense University in Washington, Tuesday, Aug. 16, 2011. (AP Photo/Susan Walsh) By Susan Walsh

WASHINGTON (AP) -- Work 20 years and keep earning half your pay for the rest of your life. For years that's what American taxpayers have been providing for those who serve in the military.

Sounds like a pretty good deal. But with the Pentagon now facing the same budget pressure as the rest of the nation, that pretty good deal could be facing changes.

In a draft report, a business advisory group to the Pentagon recommends scrapping the system and giving troops a 401(k)-style system.

That has many troops afraid and angry. The Pentagon rushed to issue a statement this week stressing that the report is only a proposal and that no change will be made anytime soon.

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