Military Retirees' Post-Service Earnings and Employment.

Abstract : The military retirement system has been a major public policy concern for many years, and it is one that is becoming increasingly important and visible. Some revision to the present system is warranted, but any examination of this system and the possible alternatives to it must include consideration of many different issues. This report examines one of these issues - military retirees' post-service earnings and employment. The present study indicates that retired military officers as a whole earn about 25 percent less than comparably aged and educated nonretired veterans, while enlisted retirees earn about 20 percent less than their nonretired peers. However, this earnings differential is almost entirely accounted for by the fact that military retirees work less than their nonretired counterparts. Those military retirees who work full-time, year-round earn about as much, on the average, as similarly employed nonretired veterans.