The Blended Retirement System (BRS) combines elements of the legacy retirement system with benefits similar to those offered in many civilian 401(k) plans. All Service members with a date of initial entry into military service (DIEMS) on or after January 1, 2018 are automatically enrolled in the BRS.
The BRS includes four key components:
- Defined Benefit: a monthly pension payment that is calculated based on a Service member's earning history and length of service.
- Defined Contribution: an individual retirement account, known as the Thrift Savings Plan (TSP), comprised of Service member contributions, Service Automatic (1%) Contribution, and Service Matching Contributions of up to 4%.
- Continuation Pay: a one-time, mid-career incentive available in exchange for agreeing to perform additional obligated service.
- Lump Sum Option: eligible Service members can opt to receive a discounted, upfront payment of either 25% or 50% of their estimated retired pay in exchange for reduced monthly retired pay until the reach full Social Security retirement age.
If you have questions about the BRS or financial planning, visit Find a Personal Financial Counselor to locate and connect with free financial counseling services at your installation.