House Panel Urges $4 Billion in Military Pension Cuts, Reforms

A House Armed Services subcommittee voted in closed session to cut spending on military pensions by $4 billion as a way of forcing reforms in the system, sources said Friday.

The military personnel subcommittee also directed Defense Secretary Caspar W. Weinberger to develop a new pension plan for future military personnel that conforms to the reduced fund, said the sources, who spoke on condition that they not be identified.

The tentative decision supports a proposal by Armed Services Committee Chairman Les Aspin (D-Wis.), who wants to reduce from $18.2 billion to $14.2 billion the amount that the government would spend on pensions next year.

Under the Pentagon’s current system, individuals may retire at 50% of base pay for life after 20 years of service.

The subcommittee vote was taken as the panel made preliminary decisions on a bill authorizing Pentagon spending for fiscal 1986.

Committee Vote Next Week

The full committee will vote next week on the bill, which will then be sent to the floor of the Democratic-controlled House. The version approved by the House will eventually be reconciled with the Pentagon bill passed by the Republican-controlled Senate.

The subcommittee also voted Thursday to retain current pension rates for 2.1 million men and women now on active duty and 1.1 million persons who are retired, the sources said.

The panel also halved the Pentagon’s request for 25,000 more personnel and followed the lead of the Senate Armed Services Committee in voting to delay until Jan. 1 a proposed 3% pay increase that the Administration wants to implement in July, the sources said.