ms. penrod. >> good afternoon. chairman wilson, ranking member davis and distinguished members of the subcommittee, thank you for the opportunity to come before you to discuss the military retirement system for our uniformed services. dr. rooney told you that the department has begun a review of military retirement and it's my office that's been tasked with this tremendously important undertaking. the purpose is to determine the impact and feasibility of restructuring the statutory and policy framework for military retirement. we are aware numerous commissions and studies have criticized the retirement system. however, i would like to point out that the current system has supported the most successful l all-volunteer military. and should it be more in line with the private sector. to ensure during our review we get it right we're considering the major aspects of military pay and benefits along with the associated personnel and force management policies that have an impact on recruiting or retaini

ms. penrod? >> yes, we are working to model any changes to the current program. we, preliminarily, have the final report and it does have a negative impact on retention. that is what it is showing us at this time. we are not complete with that review, but again, as dr. rooney stated, it is a data point, and we will take that report, and it will inform as our review goes along. >> thank you. i was very impressed, colonel, and mr. davis -- the fax you pointed out, people should know how this defects individuals. with that in mind, what is your reaction that your average debt retirement reform is unavoidable because is fiscally unsustainable. what would be your response, each of you? >> the testimony we have heard here today from dod witnesses refuse that where they say it is nearly spiraling out of control, nor unsustainable. there projection is it will be about the same percentage of basic pay into the future. i think the committee has statistics that have shown retirement costs as a percentage of the budget have been relatively stable over time. i read the first