The Nation - News from May 16, 1986

A bill to reduce the pensions of future military personnel was passed, 92 to 1, by the Senate in an effort to cut the federal deficit by $2.9 billion this fiscal year. Under current law, service personnel receive pensions equal to half of their base pay after 20 years, with payments rising 2.5% for each additional year of service to a maximum of 75% at 30 years. The Senate bill provides for a pension of 44% after 20 years, rising 3.1% for each additional year to a maximum of 75%. The House has passed a similar bill. Current personnel and retirees would not be affected.