If proposed changes to military retirement become law, a grandfather clause will allow today's troops to stay under the current retirement system or opt into the new benefit system.

The Military Compensation and Retirement Modernization Commission has for the first time released a detailed analysis to support its claim that the proposed benefit would be better than the current model for all troops, including those who serve 20 years or more.

Here's how the commission breaks down the numbers for two career personnel:

E-7 retiring in 2015 after 20 years of service

Current system

The E-7 will begin receiving a pension with a pretax value of $23,900 a year, which will continue with minor cost-of-living adjustments for the rest of the member's life.

Proposed system

The E-7 will begin receiving a pension with a pretax value of $19,120 a year, which will continue with minor cost-of-living adjustments for the rest of the member's life.

In addition:

*During the E-7's 20 years of service, he or she will have accumulated a government-provided Thrift Savings Plan balance of about $45,000, which by age 60 might be valued at $211,000.

*If, hypothetically, the retiree chose to make monthly withdrawals from the TSP to offset the diminished value of the pension, those withdrawals might total about $276,000.

*The balance of the retiree's TSP would continue to generate investment returns so that by age 85, the E-7's TSP nest egg would still total about $566,000.

O-5 retiring in 2015 after 20 years of service

Current system

The O-5 will begin receiving a pension with a pretax value of $45,360 a year, which will continue with minor cost-of-living adjustments for the rest of the officer's life.

Proposed system

The O-5 will begin receiving a pension with a pretax value of $36,300 a year, which will continue with minor cost-of-living adjustments for the rest of the officer's life.

In addition:

*During the O-5's 20 years of service, he or she will have accumulated a government-provided Thrift Savings Plan balance of about $89,000, which by age 60 might be valued at $314,000.

*If, hypothetically, the retiree chose to make monthly withdrawals from the TSP to offset the diminished value of the pension, those withdrawals might total about $479,000.

*The balance of the retiree's TSP would continue to generate investment returns so that by age 85, the O-5's TSP nest egg would still total about $663,000.

Sources: Defense Department Military Pay Calculator, Military Compensation and Retirement Modernization Commission

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