Military Retirement and Social Security: A Comparative Analysis
Published Date: October 1, 1986
The Old Age and Survivor's Insurance (OASI) programs of Social Security and the military retirement system are two of the largest and fastest growing income replacement programs in the United States. The size of these programs, in terms of both coverage and cost, make them of continuing interest to policymakers. Although both OASI and the military retirement system provide substantial amounts of income for retirees, they are fundamentally different. In addition to providing retirement annuities, OASI attempts to improve the social welfare by redistributing income toward the old and the retired poor (i.e., those with low earnings histories). The military retirement system helps manage military manpower. This system provides incentives for some personnel to remain in military service, and incentives for others to retire. Through this system the military is able to maintain an experienced force with sufficient youth and vigor to cope with the rigors and stresses of military life.
