A long-awaited report on the military's compensation system will include proposals for sweeping changes in how retirement is approached, the Military Times reported Wednesday. 

The newspaper, citing anonymous sources familiar with the report, said its provisions will include a phase-out of the current system, which allows service members to collect a benefit immediately upon retirement after 20 years. 

A hybrid system is set to be proposed as a replacement, one which will incorporate a smaller defined benefit plan, lump-sum payments and more cash-based benefits. 

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