Retirement
Benefits and Entitlements
Retirement Recognition
Blended Retirement System
Blended Retirement System

Overview

The new Blended Retirement System (BRS) goes into effect on 1 January 2018, and blends the current 20-year cliff-vested defined benefit annuity with a defined contribution plan that combines Government and service member contributions in a portable Thrift Savings Plan (TSP) account. This change will ensure that more service members leave the service with retirement savings.

 

The new system is comprised of a TSP with matching funds and a retirement annuity for completing twenty or more years of eligible service. Modernizing the current retirement system into the BRS will not only ensure that the vast majority of all uniformed members receive a portable retirement benefit, but it will also help make Uniformed Service a more attractive option for those who would like to serve but do not plan to stay for an entire career.

 

PLAN COMPARISON

 

Plan

Ret Pay Multiplier

TSP

Matching Contributions

Continuation Pay

Partial Lump Sum Ret Pay Option

Legacy

2.5% per year

Member Initiated

No

No

No

BRS

2.0% per year

Auto Enrollment

Yes

Yes

Yes

 

BRS OPT-IN PROCESS

Airmen with a Date Initially Entered Unformed Service (DIEUS) of 31 December 2017 or earlier, and less than 12 years of service (for active component members) or less than 4320 retirement points (for reserve component members) may opt-in to the Blended Retirement System (BRS) if desired. Elections are irrevocable, so Airmen should carefully consider each plan and seek financial counseling from the Airman & Family Readiness Center or their personal financial advisors before making a decision.

 

MANDATORY TRAINING

Before electing BRS, Airmen must complete the Department of Defense (DOD) opt-in course which will be available in January 2017. Airmen should also review their financial plans with their personal financial advisors or counselors at the Airman & Family Readiness Centers before deciding to opt-in.

 

OPT-IN PERIOD

The opt-in window is open from 1 January through 31 December 2018. Airmen who do not elect the BRS by 31 December 2018 will remain under their current retirement plan.

 

OPT-IN PROCESS

The BRS option will be made through a link on the Defense Finance and Accounting Service myPay website.