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eBook Title: The Accrual Method For Funding Military Retirement
eBook : The Accrual Method For Funding Military Retirement
Prior to 1984, military personnel force managers had little incentive tocontrol retirement budgets and payments, which equaled $16 billion in 1984, since any decisions made would not be reflected in budgets for 20 or more years. Congress directed the Department of Defense in 1984 to switch to anaccrual method for accounting for military retirement in the budget processthat would replace the current outlays for retirement in the DoD budget withan amount that reflected the present value of the estimated cost of futureretirement benefits earned by each incoming cohort of personnel.
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