These benefits are technically not a veterans pension, but a retainer payment, as retired service members are eligible to be reactivated.
[2][3][4] In the years before the Second World War, the retirement systems of the United States military were highly varied between the different branches of service.
In 1916, the military instituted new "up or out" policies, forcing the retirement of members who were not selected for promotion in a prescribed amount of time.
The benefit received was calculated using 2.5% of a member's base pay at the time of retirement, multiplied by years of service.
This allowed the government to reduce payments and realize some savings, without major structural changes to the "twenty year retirement".
After years of fighting the Global War on Terror, the cost of military health care and retirement benefits were growing at a rate defense officials found concerning.
[14] The National Defense Authorization Act for Fiscal Year 2016 created the "Blended Retirement System" (BRS), which combines a reduced defined benefit with an employer-matched contribution.