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Understanding the Blended Retirement System (BRS):
What Every Service Member Should Know
The Blended Retirement System (BRS) marked one of the most significant shifts in military retirement in decades.
Introduced in 2018, it combines elements of the traditional military pension system with modern retirement features—designed to benefit a broader base of service members, especially those who don’t plan to serve 20+ years.
Whether you're early in your military career or nearing your transition to civilian life, here’s what you need to know to make the most of the BRS.
BRS vs. Legacy Retirement: What's the Difference?
Feature | Legacy System | BRS |
|---|---|---|
Pension Eligibility | 20+ years of service | 20+ years of service |
Pension Multiplier | 2.5% x years of service | 2.0% x years of service |
TSP Matching | ❌ None | ✅ Up to 5% matching from DoD |
Continuation Pay | ❌ Not offered | ✅ Bonus between 8-13x monthly basic pay |
Portability | ❌ None (no benefits if leaving before 20 years) | ✅ TSP is portable after any service length |
Key Features of the BRS
1. Thrift Savings Plan (TSP) Contributions
Automatically enrolled at 3% of basic pay, but you can increase it anytime.
DoD matches dollar-for-dollar on the first 3% and 50¢ on the next 2%, up to a total of 5%.
Fully vested in your contributions immediately; fully vested in DoD contributions after two years.
Pro Tip: Contribute at least 5% to receive the full DoD match—it's essentially free money toward your retirement.
2. Continuation Pay
A one-time, mid-career bonus (typically between years 8–12 of service).
Must commit to at least three more years of service.
Amount and eligibility vary by branch, pay grade, and years of service.
Pro Tip: Use continuation pay to bolster your TSP, build an emergency fund, or pay down high-interest debt.
3. Reduced Pension Multiplier
Instead of 2.5% per year, BRS uses 2.0%. So, a 20-year career earns 40% of base pay in retirement instead of 50%.
However, with TSP contributions and DoD matching, many members may come out ahead—especially if they invest early and consistently.
Who Benefits Most from the BRS?
Shorter-Term Service Members: Under the legacy system, those who separate before 20 years receive nothing. With BRS, you walk away with your TSP and any matching contributions.
Financially Savvy Members: Those who actively contribute to TSP and invest wisely can potentially surpass the value of the legacy pension, especially with compound growth.
Action Steps for Military Personnel in BRS
Log into your myPay account and check your TSP contribution rate.
Ensure you're contributing at least 5% to receive the full DoD match.
Plan ahead for your continuation pay—know when you're eligible and how you'll use it.
Review your TSP investment choices to align with your risk tolerance and retirement timeline.
Final Thoughts
The BRS offers flexibility, portability, and long-term growth potential—especially for those who actively participate.
Whether you're aiming for 20 years of service or planning an earlier transition, understanding and leveraging the BRS puts you in control of your financial future.