San Diego, California News Station - KFMB Channel 8 - cbs8.comAre military pensions too 'generous'?

Are military pensions too 'generous'?

WASHINGTON (AP) — Work 20 years and keep earning half your pay for the rest of your life. For years that's what American taxpayers have been providing for those who serve in the military.

Sounds like a pretty good deal. But with the Pentagon now facing the same budget pressure as the rest of the nation, that pretty good deal could be facing changes.

In a draft report, a business advisory group to the Pentagon recommends scrapping the system and giving troops a 401(k)-style system.

That has many troops afraid and angry. The Pentagon rushed to issue a statement this week stressing that the report is only a proposal and that no change will be made anytime soon.

Copyright 2011 The Associated Press.