THE PENTAGON — The U.S. Army announced it had filed for Chapter 9 bankruptcy protection in federal court Friday, sources confirmed. This long anticipated move follows a decade of borrowing against supplemental congressional funding to pay for the wars in Iraq and Afghanistan, a generous retiree pension plan and decaying on-post infrastructure.
“We have attempted to negotiate with our three largest retiree unions, The Association of the United States Army, The American Legion and The Military Order of the Purple Heart. They were not willing to accept any concessions on retiree pay and benefits, therefore we have no choice but to take this extraordinary step.” said Gen. Ray Ordierno, Secretary of the Army.
The Army has faced a steady decline in on-post housing residents due to a phenomena known as “Officer Flight”. Fear of gangs, drugs and non-existent public services have driven the Army’s highest wage earners off base, replacing them with lower enlisted soldiers.
