Aspin Acts to Cut Military Pension Funds

A proposal to cut $4 billion from the $18.2 billion that the Defense Department plans to pay into its pension fund next year was introduced Thursday by House Armed Services Committee Chairman Les Aspin (D-Wis.).

But, instead of spelling out how military retirement benefits would be cut, Aspin’s plan would require the Defense Department to propose legislation designed to save the $4 billion. He recommended that the Pentagon leave untouched the benefits of today’s 1.4 million retirees, 210,838 of whom live in California.

System Criticized

Aspin announced his proposal after hearings in which critics labeled the pension system expensive, inefficient and outdated and military leaders defended it as vital to retaining personnel and maintaining a strong defense.

He said he hopes that his proposal will be accepted as a budget-cutting device rather than an attempt to restructure military compensation. With next year’s deficit projected to exceed $220 billion, Aspin said, “we’re going to have a squeeze on the defense budget.”

Military retirees responded with alarm.

Retired Air Force Col. George Hennrikus, a spokesman for the Retired Officers Assn., called it a major cut and said, “. . . It’s open to any kind of amendment,” a warning that opening the pension system to adjustment might result in still deeper cuts.

Exodus Predicted

At a hearing earlier this week, the Joint Chiefs of Staff unanimously opposed touching the pension system. They predicted an exodus from the services and reduced military readiness if pensions are cut.

Aspin tried unsuccessfully to cut military pensions in 1976, but his new positions as chairman of both the Armed Services Committee and its subcommittee with jurisdiction over military pensions give him added power. And, unlike his previous proposal, Aspin’s current plan would force the Defense Department to decide how to achieve the cuts.

In explaining why he proposes leaving that decision with the Pentagon, Aspin said: “The more complicated the proposal, the more difficult it is to get Congress to vote for it.”

May Go to House Floor

Aspin said that he is “not sure” whether Congress will approve his plan this year but vowed to bring it to the House floor if it is rejected in his committee.

David A. Stockman, President Reagan’s budget director, ignited controversy over the military retirement system earlier this year by labeling the program “a scandal” and accusing the military of caring more about pensions than national security.

Today’s average military retiree begins collecting his pension before the age of 45 and will receive a total of about $500,000 in benefits.