Blended Retirement System training available

  • Published
  • By Senior Airman Samantha Salopek
  • 60th Air Mobility Wing Public Affairs

TRAVIS AIR FORCE BASE, Calif. – The Department of Defense is scheduled to kick off a new military retirement program beginning Jan. 1, 2018.

The Blended Retirement System provides military members with matching government contributions to personal Thrift Savings Plans, the receipt of a continuation bonus at 12 years of service, and pension payment options, in exchange for a reduced retirement pension.

Those serving prior to Jan. 1, 2018, will be grandfathered in to the legacy retirement program. Members with less than 12 years of service or 4,320 retirement points as of Dec. 31 can opt to participate in the BRS at any time between Jan. 1 and Dec. 31, 2018 without the initial 60 day waiting period. Individuals entering active duty service on or after Jan. 1, 2018 will be automatically enrolled in the BRS.

“The BRS provides a more diversified and portable retirement benefit for an estimated 85 percent of members,” said Betsy Ratashak-Vogel, 60th Force Support Squadron personal financial readiness program manager and a certified financial planner. “Only about one in five members serve long enough to receive retirement benefits under the current legacy retirement system.”  

Service members who do not serve a full 20 years still have a benefit to take with them, said Ratashak-Vogel. The TSP, including all DoD contributions, are the separating member’s to keep.

Additionally, individuals who retire with the BRS can choose a lump sum option where they collect partial payment upfront and receive the remainder of their pension in monthly installments. 

When a new service member has served for 60 days, the DoD will begin matching investments by up to one percent of their base pay. After two years of service, the DoD will increase contributions by up to four percent of their base pay. The government will continue matching investments until the member separates, retires or hits 26 years of service.

Eligible service members interested in enrolling in the BRS must first complete the Joint Knowledge Online Opt-in Course and the registration process through MyPay between Jan. 1 and Dec. 31, 2018.  Once an individual is enrolled in the BRS, he or she cannot reverse the process.

The BRS is not retroactive. If a current TSP member chooses to participate, the DoD will begin matching TSP contributions the following pay period.

Those choosing to not participate in the BRS must still complete the JKO Opt-in Course.   

“Calculators, available later this month, will show the account balance over time considering the estimated contributions and assumptions entered by the member,” said Ratashak-Vogel.    

For more information about the BRS, visit the retirement section in MyPers at www.mypers.af.mil.