{"id":31273,"date":"2017-12-19T21:12:23","date_gmt":"2017-12-19T21:12:23","guid":{"rendered":"https:\/\/one.sightlinemg.com\/navytimes\/uncategorized\/2017\/12\/19\/retirement-guide-brs-or-legacy-well-help-you-find-the-right-path\/"},"modified":"2026-08-08T06:40:05","modified_gmt":"2026-08-08T06:40:05","slug":"retirement-guide-brs-or-legacy-well-help-you-find-the-right-path","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/navytimes\/management\/pay-benefits\/military-retirement\/2017\/12\/19\/retirement-guide-brs-or-legacy-well-help-you-find-the-right-path\/","title":{"rendered":"Retirement Guide: BRS or legacy? We\u2019ll help you find the right path"},"content":{"rendered":"
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Maximizing your match under BRS<\/figcaption><\/figure>\n\n\n

It\u2019s nearly 2018. Are you ready to decide whether to jump to the new Blended Retirement System?<\/p>\n\n\n\n

More than 1.6 million service members are eligible to make that choice about their future military retirement benefit, which goes into effect Jan. 1. And while the Defense Department offers mandatory training for those eligible, backed up by service-specific education programs, a recent survey found about half of those who thought they were allowed to switch to the BRS didn\u2019t understand it.<\/p>\n\n\n\n

There\u2019s no cookie-cutter approach to this decision; beware of comrades who tell you one plan is always better than the other. We\u2019ve got the basics below, and read on for case studies involving real troops and carefully chosen experts who sort through their financial past and present to help guide their retirement choice.<\/p>\n\n\n\n

Some of the nuts and bolts you need to know:<\/p>\n\n\n\n

BRS 101<\/b><\/p>\n\n\n\n

Q. What is this \u201cBRS\u201d thing I keep hearing about?<\/b><\/p>\n\n\n\n

A.<\/b> It\u2019s a combination, or \u201cblend,\u201d of the legacy retirement system and some new features. Like the legacy setup, it provides monthly retired pay after at least 20 years of service \u2026 but not as much of it.<\/p>\n\n\n\n

Beyond that difference, there are three key ways where BRS and the existing setup part company:<\/p>\n\n\n\n

BRS members receive matching Thrift Savings Plan contributions from the Defense Department, which can be as high as 5 percent of monthly basic pay, depending on how much they contribute to their TSP accounts.<\/p>\n\n\n\n

At the 12-year mark, BRS members can receive continuation pay in return for a commitment to serve an additional four years. Think of it as a retention bonus (keep reading for specifics).<\/p>\n\n\n\n

Instead of waiting for a monthly check, retirees under BRS can opt for a partial lump-sum payout.<\/p>\n\n\n\n

Q. What\u2019s the point of the change?<\/b><\/p>\n\n\n\n

A.<\/b> Defense Department officials point out that under the current system only about 19 percent of active-duty service members and 14 percent of reservists stay in long enough to earn retirement pay. Under BRS, nearly every service member would get some retirement benefit.<\/p>\n\n\n\n

Q. But if I stay in for 20 years under BRS, can I still get monthly retirement pay?<\/b><\/p>\n\n\n\n

A.<\/b> Yes, but it is 20 percent less than what you\u2019d get under the legacy system.<\/p>\n\n\n\n

Q. How does this affect my other retirement benefits, like medical and commissary?<\/b><\/p>\n\n\n\n

A.<\/b> It doesn\u2019t.<\/p>\n\n\n\n

Q. How does this affect my spouse\u2019s Survivor Benefits Plan?<\/b><\/p>\n\n\n\n

A.<\/b> Service members can still enroll in the SBP, which provides a percentage of your military retirement pay to your spouse in the event of your death. The percentage won\u2019t be affected \u2014 up to 55 percent of the pay \u2014 but it\u2019ll come out of the smaller retirement amount you\u2019d receive under BRS compared with the legacy system.<\/p>\n\n\n\n

OPTING IN<\/b><\/p>\n\n\n\n

Q. Who is eligible to opt into the new system?<\/b><\/p>\n\n\n\n

A.<\/b> Active-duty service members who have fewer than 12 years of total service as of Dec. 31, 2017, can stay with the current system or go with BRS. Same goes for reserve-component members in a paid status with fewer than 4,320 retirement points as of Dec. 31. Also, anyone who entered a service academy or signed a service agreement (those in the delayed entry program, for instance) as of Dec. 31 has opt-in eligibility.<\/p>\n\n\n\t