Techniques for Evaluating Military Retirement Policies

Résumé du livre

In evaluating alternative military retirement policies, models have been developed to compare regular military compensation, severance, vesting, and retirement costs given an underlying set of assumptions. The report outlines the interactive Retirement Analysis Model (RAM), which performs this task in both transitional and steady-state environments, examining both short-run and long-run effects. In addition, emphasis is given to a dynamic programming approach that will produce a set of continuation rates (which express personnel behavior) given a set of economic incentives as depicted by a retirement system. The combination of RAM with the dynamic programming approach is expected to lead to a more accurate assessment of the effects of retirement policies on both personnel behavior and total costs. (Author).