Military pensions may be cut Army veteran Logan Merrill salutes as he passes an American flag while riding on a truck in a parade in St. Louis on January 28, 2012. Thousands of people lined a parade route in downtown St. Louis for the nationÕs first parade to honor those who have served in Iraq and Afghanistan. WASHINGTON, Feb. 3 (UPI) -- A change in law that increased pension pay for top generals and admirals is being re-examined by U.S. lawmakers. The new pension rules were part of the 2007 Defense Authorization Act in an effort to retain experienced generals and admirals during wartime, USA Today reported Thursday. Previously, the maximum annual pension was based on an officer's pay at 26 years of service and was typically $134,400. Now, a four-star general's pension is based off their last active year. A person with 38 years' experience would get a yearly pension of about $219,600, a 63 percent increase beyond what was once allowed. "These changes cumulatively provide consistent recognition across an individual's entire career, not just the first 26 years of service," Pentagon spokeswoman Eileen Lainez said. This recognition also translates into increased readiness through the increased retention of our most experienced leaders. The Project on Government Oversight, which examines wasteful spending in Washington, said the pensions were too high and should be re-evaluated. "At a time when the Pentagon is struggling to pay for the men and women who actually fight wars, and is shrinking the size of its fighting force and civilian employees, it doesn't make sense to nearly double the size of a retired four-star's pension," said Nick Schwellenbach, director of investigations for the group. Defense Secretary Leon Panetta agreed, saying retirement benefits will have to be re-examined in light of lean budgets in coming years.