-
-
MilLife Topics
- Military Basics
- Deployment
- Transitioning & Retiring
- Casualty Assistance
- Moving & PCS
- Housing & Living
- Recreation, Travel & Shopping
- Relationships
- Parenting
- Special Needs
- Health & Wellness
- Safety From Violence & Abuse
- Financial & Legal
- Education & Employment
- I am a…
- Benefits & Resources
- Benefits
- Back to Menu
- View Benefits Finder
- View Benefits Finder
- Moving
- Support Services
- Planning & Prevention
- Discounts & Perks
- Pay & Leave
- Education & Employment
- Recreation
- Family & Child Care
- Relationships
- Health Care & Emotional Well-being
- Retirement
- Housing
- Shopping
- Legal
- Travel
- Popular Benefits
- MilTax
- Space-A Travel
- DOD MWR Libraries
- Resources
- Back to Menu
- View Resources Finder
- View Resources Finder
- MilLife Guides
- Military OneSource Network Websites
- Podcasts
- Government Websites
- Webinars
- External Websites
- Directories & Tools
- Online Learning
- Mobile Apps
- Popular Resources
- MilitaryINSTALLATIONS
- Plan My Move
- Moving Personal Property
- DPS Login
- Other Resources
- Data, Research & Statistics
- Products
- Back to Menu
- View Products Finder
- View Products Finder
- Popular Product Types
- Book/Booklets
- Fact Sheets
- Brochures
- Flyers
- Educational Items
- Posters
- Popular Products
- Personal Property Claims Fact Sheet
- Spouse Ambassador Network Fact Sheet
- School Liaison Flyer
- Bereavement Leave for Service Members
- Military and Family Life Counselor Program Brochure
- Go Read
- Confidential Help
24/7/365 Access to Support
No matter where you serve or live, free and confidential help is available.
- In Crisis?
- Veterans/Military Crisis Line
- Back to Menu
- Veterans/Military Crisis Line
- PhoneLive ChatInternationalWebsite
Dial 988 then press 1 or text 838255
- National Domestic Violence Hotline
- Back to Menu
- National Domestic Violence Hotline
- PhoneLive ChatText
Call 800-799-SAFE (7233)
Text “START” to 88788
- DOD Safe Helpline - Sexual Assault Support
- Back to Menu
- DOD Safe Helpline - Sexual Assault Support
- PhoneLive ChatWebsite
Call 877-995-5247
- 988 Suicide & Crisis Lifeline
- Back to Menu
- 988 Suicide & Crisis Lifeline
- PhoneLive ChatTTY
Call 988
Use your preferred relay service, or dial 711 then 988
- Domestic Abuse Victim Advocate Locator - Family Advocacy Program
- Back to Menu
- Domestic Abuse Victim Advocate Locator - Family Advocacy Program
- Interactive Tool
In the United States, call 911 if you are in an emergency.
For those outside the United States, call your local emergency number.
- 800-342-9647
- Call Us OCONUS
- Call Us TTY/TDD
- Live Chat
- About Us
- Browse By Program/Office
- Casualty & Mortuary Affairs
- Child & Youth Advocacy
- Children, Youth & Family Programs
- Commissary, Military Exchange & Lodging
- Family Advocacy Program
- Military Community Support Programs
- Military & Family Life Counseling
- Military Funeral Honors
- Morale, Welfare & Recreation (MWR)
- Office of Special Needs
- Personnel Accountability & Evacuations Operations
- Spouse Education & Career Opportunities
-
Contact Military OneSource
Information and support for service members and their families. About the Call Center.
- 800-342-9647
- Call Us OCONUS
- Call Us TTY/TDD
- Additional Ways to Contact Us
ARTICLEHow Your Service Member Will Benefit From the Military’s New Blended Retirement System
5 minute read • Dec. 10, 2019The military recently adopted a new retirement plan called the Blended Retirement System which extends benefits to a lot more service members than the old plan. The good news: the BRS can put your service member on the path to long-term financial security. And, the more a service member contributes to their own retirement, the more the Department of Defense matches it.
Anyone who enlisted after Jan. 1, 2018 – whether active duty or reserves – was automatically enrolled in the BRS, and they are already covered by its benefits. Your family member or friend may not be thinking about military retirement right now. But, by encouraging them to fully participate in the BRS, you can have a big impact on their financial well-being down the road.
See all the ways we help service members.
Military OneSource offers many services and resources to help service members and their immediate families live their best military life.
How the Blended Retirement System improves on the old military retirement plan
Under the old retirement plan, you had to serve 20 years to qualify for a military pension. That was a challenge because if you left the service before completing 20 years – which many people do – you did not receive any government-provided retirement benefits.
The BRS improves on the old plan by combining a pension with a 401(k)-like savings account. Now, most service members will get some retirement benefits – even if they don’t finish 20 years.
How the Blended Retirement System works
- Pension:
The BRS starts with a pension – a fixed payment – that the government pays a service member if they complete 20 years of service. The monthly pension payment is based on this formula:- 2% x number of years served x the “high 36” (the average of the highest 36 months of basic pay received) = monthly payment
- For example: 2% x 20 (years) x $6,250 (high 36) = $2,500 per month
If your service member qualifies for a pension, he or she will receive it for the rest of their life once they retire.
- Thrift Savings Plan:
As part of the BRS, your service member is enrolled in a retirement savings account – similar to a 401(k) – called a Thrift Savings Plan. To start with, all service members contribute 3% of their basic pay to the TSP each pay period.But it gets better. The government also automatically contributes 1% of their base pay to the TSP. Plus, they’ll match your service member’s own contribution up to 5%.- Here’s an example: 3% (member basic pay) + 1% (government contribution) + 3% (government matching contribution) = 7% contributed to TSP each pay
Service members can increase their contribution as much as they want up to IRS retirement account limits, and the government will contribute 1% plus up to a 4% percent matching contribution. As their TSP account grows, they can choose to invest it in stocks or government securities.
Here’s how you can really make a difference: Encourage your service member to contribute as much as possible to their TSP account. The more they save, the more the government puts in too. Over time, those contributions can add up to a big nest egg.
After three years of service, service members are fully “vested” in their contributions – the money is theirs and they can take it with them when they leave military service. However, if they hang in there for 20 years, they will receive both the money in their TSP account and a monthly pension as their military retirement. That can add up to a nice retirement income and comfortable financial future for your service member.
- Continuation bonus:
But wait, there’s more – they’ll get a cash bonus, too. When a service member reaches 12 years of service and commits to four more years of service, they can get a cash bonus called Continuation Pay. For active duty, the bonus equals 2.5 times monthly basic pay. For the reserves, it is 0.5 times their monthly basic pay. However, Continuation Pay varies by each service, so service members are encouraged to speak with their pay/finance office for more detailed information.
Options for collecting military retirement benefits
Say your friend or family member makes the military their career. When can they start collecting those retirement dollars?
Active duty can get retirement pay at any age when they choose to retire after 20 years of service. National Guard and reserves can begin receiving retirement pay at age 60.
When your service member retires, they choose from two options:
- Take their full retirement pay.
- Take a lump-sum payment of either 25% or 50% of their gross estimated retired pay.
- If they take a 25% lump sum payment, their monthly retirement pay will be 75% of their full retirement pay. If they take the 50% lump sum, they will get 50% of their full retirement pay.
- But when they reach age 67, their retirement pay goes back up to the full amount.
Want to take a deeper dive into the military’s retirement system? Then check out these resources. And subscribe to the Friends & Family Connection eNewsletter to get military life information like this sent straight to your inbox.
MilitaryINSTALLATIONS
Learn about military bases worldwide. Get installation overviews, check-in procedures, housing, neighborhood information, contacts for programs and services, photos and more.
Your session will expire in 5 minutes.Click "Extend" below to stay logged in.
This site is for testing purposes only.If you are part of the general public, navigate to the public site. This site is solely for testing and approving site pages before they are released to the general public.