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2018 Military Retirement Options: An Expected Net Present Value Decision Analysis Model, Bret N. Witham Mar 2017

2018 Military Retirement Options: An Expected Net Present Value Decision Analysis Model, Bret N. Witham

Theses and Dissertations

The 2016 NDAA authorized changes to the military retirement system transitioning from the legacy High-3 defined benefit annuity to the new Blended Retirement System (BRS). In exchange for a reduced defined benefit annuity, the BRS incorporates automatic and matching contributions to the member’s Thrift Savings Plan and a continuation payment offered at 12 years of service. In 2018,service members with less than 12 years of service will make an irrevocable decision between the two retirement systems. This research effort addresses the problem by developing a decision analysis model incorporating up to 27 different input variables. Service members can use the …


A Linear Programming Approach For Determining Travel Cost Minimizing Ecss Training Locations, Jason S. Boerboom Mar 2010

A Linear Programming Approach For Determining Travel Cost Minimizing Ecss Training Locations, Jason S. Boerboom

Theses and Dissertations

The Department of Defense is currently operating in a fiscally constrained environment, and Air Force leaders are pressured to minimize spending while pursuing mission critical objectives. Personnel travel usurps a significant portion of the Air Force’s annual operations and maintenance (O&M) budget each year, but receives little attention with respect to cost saving strategies. During the Air Force’s implementation of the Expeditionary Combat Support System (ECSS), in which over 250,000 end-users will require training, it is vital that the Department determine the training locations that minimize costs incurred through personnel travel. This thesis seeks to determine which potential ECSS training …


Downside Risk Optimization Of The Thrift Savings Plan Lifecycle Fund Portfolios, Matthew C. Beck Mar 2010

Downside Risk Optimization Of The Thrift Savings Plan Lifecycle Fund Portfolios, Matthew C. Beck

Theses and Dissertations

The Thrift Savings Plan (TSP), the defined benefit contribution plan for the US Government, introduced the asset allocation Lifecycle (L) Funds in August 2005. These funds seek to minimize risk and maximize expected portfolio return via mean-variance optimization (MVO). The purpose of this thesis is to investigate and examine the efficiency of the TSP L Funds and create alternative L Fund portfolios via downside risk optimization (DRO). Whereas MVO minimizes the portfolio variance (standard deviation), DRO seeks to minimize the risk below an investor’s minimal acceptable return in the market, defined as the Co-Lower Partial Moment (CLPM). The research team …


Analysis Of The Military Medical Retirement System, Joseph M. Barnum Mar 2009

Analysis Of The Military Medical Retirement System, Joseph M. Barnum

Theses and Dissertations

The purpose of this research was to evaluate the 60 year old military medical retirement system. Specifically, this thesis answered three research questions regarding a comparison of pay between the current system and the societal standard for injury and illness, identification of current segments of the military population disproportionately affected by the current system, and establishment of a minimal standard for medical retirement compensation. Previous research established the societal standard for compensation as the Value of Statistical Life. This thesis compared the current military medical retirement system with the Value of Statistical Life and identified several segments of the military …


The Correlation Of Human Capital On Costs Of Air Force Acquisition Programs, Stephen E. Gray Mar 2009

The Correlation Of Human Capital On Costs Of Air Force Acquisition Programs, Stephen E. Gray

Theses and Dissertations

Previous studies have linked human capital with performance. The studies have shown performance, measured as output, of a firm can be increased by adding more personnel and/or increasing education levels. This research uses the Cobb-Douglas Production function to build upon that relationship of inputs to outputs. The output in this study is the average cost overrun of Aeronautical Systems Center research, development, test, and evaluation contracts managed from 1994 to 2008. The inputs are the numbers of military/government employee financial managers, program managers, engineers, rated personnel, and military/government employees in those career fields possessing a graduate degree or higher. A …


Modeling U.S. Occupational Health Costs, Joseph M. Bauer Mar 2009

Modeling U.S. Occupational Health Costs, Joseph M. Bauer

Theses and Dissertations

The primary purpose of this research was to improve the effectiveness of cost comparison analyses for the 75th Aerospace Medicine Group, Hill Air Force Base, Utah. Bioenvironmental engineers sought a more robust cost comparison tool, allowing engineers to quickly determine the viability of proposed occupational health-related expenditures. To justify the funding of potential projects, engineers must quantify the expected cost savings. Improved cost comparison analysis enables personnel to better justify worthy projects or filter out uneconomical solutions. A secondary purpose of this research was to validate Department of Defense (DoD) occupational illness cost factors. This research effort focused on cost …


An Analysis Of The Military Retirement System: How Does Retirement Return Influence Retention?, Derren P. Burrell Mar 2007

An Analysis Of The Military Retirement System: How Does Retirement Return Influence Retention?, Derren P. Burrell

Theses and Dissertations

The cost of the current Department of Defense (DoD) defined-benefit retirement plan has long been a source of consternation within Congress and the DoD (Freedberg, 1999:35). Billed as being too costly in the private sector, many firms have elected to switch from defined benefit plans to defined contribution plans, most often a 401K retirement plan (Chassen, 1990:18). This thesis attempts to capture the effect of the current military retirement plan on rates of retention. The goal of this study is to be used as a tool should the Department of Defense decide to move from a defined-benefit plan to a …


A Cost Analysis Of The Military Retirement System, Kyle R. Martin Mar 2004

A Cost Analysis Of The Military Retirement System, Kyle R. Martin

Theses and Dissertations

This research explores possible changes to the current military retirement system. The research contains a detailed explanation of the current military retirement system and its objectives; a summary of the history and past legislation affecting private sector pension plans and the military retirement system; and a discussion of major analytic studies of the military retirement system since 1969 and their impact on the current system. The costs and benefits of three alternatives to the current system are analyzed using a deterministic and stochastic analysis. These alternatives are based on benefit structure changes not explicitly reducing costs. System restructuring would change …


A Decision Support Tool For Thrift Savings Plan Investors, Christopher J. Blanchette Mar 2004

A Decision Support Tool For Thrift Savings Plan Investors, Christopher J. Blanchette

Theses and Dissertations

The Thrift Savings Plan is-the defined contribution retirement plan for federal government employees. It is one of the largest retirement plans in the United States. The plan offers five different investment options: two funds concentrate on government securities and corporate bonds, two funds span the United States stock market, and one fund focuses on international stocks. These funds give investors the opportunity to diversify among a wide range of securities. This thesis examines the funds offered by the plan and creates a portfolio selection tool that uses investor inputs. The tool uses three mathematical models: optimization, based on Markowitz's (1952) …


Cost Constrained Improvements To The Military Retirement System, Cynthia A. Brown Mar 1993

Cost Constrained Improvements To The Military Retirement System, Cynthia A. Brown

Theses and Dissertations

This research studies possible changes to the current military retirement system. The current military retirement system refers to the system provided under the Military Reform Act of 1986, A new system is proposed which would provide the retiree with four options. Option 1 would provide a pay annuity and medical benefits to the retiree (this is the current system). Option 2 would provide a pay lump sum in place of the, annuity and would offer medical benefits. Option 3 would offer the pay annuity but give a medical lump sum amount in place of the medical benefit. Finally, option 4 …