If the program is similar to TSP, the individual chooses where to invest their money. If PFC Snuffy blows it all on a high risk fund, that’s his choice to make. He could just as easily invest his retirement in bonds. Of course, that may not be as safe as once thought given the direction our government is going.
The TSP system limits you as to what you can invest. There are only a few plans one can park their money in. With the exception of the “G” fund, everyone lost in 08 and 09. You think that sort of program is going to keep people in for 20 years?