Utilization of Decision Analysis for Service Member Retirement Options
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The Military Retirement Reform Act of 1986 and subsequent repeal in the FY2000 Military Defense Authorization Act resulted in a decision problem for all military members considering retirement. The proper choice between the accepting the $30,000 Career Service Bonus and Redux retirement pay versus the traditional "High-3" retirement pay must be made by all members approaching 15 years of service. Unfortunately there is very little guidance available for this decision; what little there is can be misleading. The purpose of the model is to utilize decision analysis tools to help bring clarity to...
The Military Retirement Reform Act of 1986 and subsequent repeal in the FY2000 Military Defense Authorization Act resulted in a decision problem for all military members considering retirement. The proper choice between the accepting the $30,000 Career Service Bonus and Redux retirement pay versus the traditional "High-3" retirement pay must be made by all members approaching 15 years of service. Unfortunately there is very little guidance available for this decision; what little there is can be misleading. The purpose of the model is to utilize decision analysis tools to help bring clarity to the decision problem and allow service members to make their decision based on their preference probabilities and resulting expected values of either decision. The model provides a comprehensive approach to the decision and results in a product that can be used by every service member approaching retirement.
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