The Department of Labor requires all Defined Benefit retirement plans to be fully vested by either 5 years (cliff vesting) or 7 years (graduated vesting). Somehow, the military is able to get away with a retirement plan that has cliff vesting at 20 years. Our retirement system is too generous for those who work 20 years, and completely unfair for those who choose to leave before the magical 20. The retirement system hasn't changed in decades. It doesn't properly reflect new life expectancy numbers.
One of the problems is that the organizations that supposedly lobby for "us" like MOAA and such are beholden to their already retired constituents. There is no real lobby for those service members that won't end up doing 20.
If I ruled the world, this is how the retirement plan would work:
1) 7 year cliff vesting at 2% per year, no medical.
What's the incentive to stay in for 20? You get medical. How can the government afford this? All future enlistees will only get 2%, even after 20. Not fair you say? Bullshit. Your brother in arms who does 14 faithful years side by side with you gets nothing when he leaves after his 2nd divorce. This is how we take care of our own. Stop being selfish.
For those who do 12 years in the infantry/SOF, body is broken, can't stay in any longer, etc... it's not enough money to live on, but its better than what we have right now.
or
2) 50% matching for the TSP for the first 3 years, with 100% matching after that.