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The National Defense Authorization Act for Fiscal Year 2016 created a modernized retirement system for the military. January 8, 2016 — The National Defense Authorization Act for Fiscal Year 2016 created a modernized retirement system for the military. This new retirement system is effective January 1, 2018. Everyone serving today is grandfathered and can stay under the current system. Those with fewer than 12 years of service as of December 31, 2017 will have an opportunity to opt-in to the new system during calendar year 2018. MORE

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