Defense Spending

Panetta Confirms Pentagon Considering Replacing Military Retirement With 401(k) Plan

Brian Beutler | August 16, 2011, 5:03PM

Leon Panetta

In a rare joint appearance with Secretary of State Hillary Clinton at the National Defense University Tuesday, Secretary of Defense Leon Panetta confirmed a CBS News report that the Pentagon is considering a dramatic plan to overhaul the military's once sacrosanct retirement plan.

According to CBS, the plan "would eliminate the familiar system under which anyone who serves 20 years is eligible for retirement at half their salary. Instead, they'd get a 401k-style plan with government contributions."

Panetta largely confirmed the report, with a key caveat.

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Medicare

Obama Sides With Panetta On Need To Cut Medicare Over Defense

Brian Beutler | August 8, 2011, 3:32PM

Secretary of Defense Leon Panetta

Last week, Congressional Democrats were blindsided by newly-confirmed Defense Secretary Leon Panetta, who basically nixed any further cuts to military spending, and demanded that lawmakers trim from programs like Medicare and raise taxes to reduce future deficits.

Soon a new deficit Super Committee will begin debating tax and entitlement reform, and the penalty if they gridlock includes steep defense cuts. Republicans are expected to seize on Panetta's remarks to push for another deficit deal that comes exclusively from entitlement cuts. So Rep. Barney Frank (D-MA) called on President Obama to repudiate Panetta.

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Leon Panetta

Dems Take On Panetta For Pushing Medicare, Social Security Cuts Over Defense Cuts

Brian Beutler | August 5, 2011, 4:11PM

Leon Panetta

A fight is brewing on the right, between anti-tax zealots and big military types over who takes the next hit in the continuing fight over deficits. The prospect excites progressives, who see a rare opportunity to force the GOP to slaughter one of their sacred cows, and rip the party apart in the process.

But the left is poised for a similar internal battle.

The tensions on both sides of the aisle were set in motion by the debt deal, which created a powerful, bipartisan deficit committee tasked with finding over $1 trillion in savings over the next 10 years. If it gridlocks, though, it will trigger automatic spending cuts, including about half a billion dollars from defense.

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