The Military Retirement Reform Act of 1986 reduced retired pay for members of the armed forces entering active duty on or after August 1, 1986. Members retiring after 20 years of service will receive 40 percent of basic pay rather than 50 percent. Members who have come on active duty after 1986 will not receive the same financial entitlements as their predecessors. As noted by the Service Chiefs, these reductions are having a significant adverse affect on retention and readiness. The two-tier retirement system is inequitable and has also proven to have had adverse affects in the private sector.
Fairness demands equal compensation for equal work.
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