| Summary: | Approved for public release; distribution is unlimited === Legislators, recognizing the need to increase the national savings rate, have introduced profit-sharing and thrift savings plans to civilians, but have not included the military. This thesis examines the need for and the costs and benefits of an employer-sponsored savings plan for active duty military personnel. It concludes that it is both feasible and cost-effective to tailor tax-sheltered annuities (TSA's) currently available to nonprofit organizations to the military compensation system. It proposes an account for saving active pay (ASAP) that would permit contributions of one percent (%) of base pay (up to the 20 percent which TSAs allow) per year of military service with the account maturing upon termination of active duty. This program, as envisioned for active duty military personnel, would provide an incentive to improve personal financial management practices. This, in turn, would encourage military personnel to contribute to improvement of the national savings rate.
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