I agree with everything LJ said about the trivia that could be lessened and I agree that the overall package (including schooling, pension etc) is actually pretty good.
However, despite all that, money is still the answer for a lot of people. The pension lump sum at the 38-40 year point is very useful for house purchasing or improvements at that point. Maybe a system that allowed people to access their pension lump sum (tax free of course) and remain in the service would be a cost neutral way of retaining people.
BV