New (1 JAN 2018) Military Retirement System

Starting next year those who enter military service to include Reserve personnel will be enrolled in what is called the Blended Retirement System or BRS.

If in service before next year, a military member is grandfathered into the current retirement system. Some current members however also may opt for the new system. As of December 31, 2017, Reserves who have accrued fewer than 4,320 retirement points and regular members with fewer than 12 years can opt into the new system or continue the legacy system. They will have from 2 Jan 18 until 31 Dec 18 to make such an election if they so desire or they will stay in the legacy system.

Retirement eligibility stays the same and retired pay for Reserves still starts at age 60.

The BRS basically is a Thrift Saving Plan with government contributions; matching contributions after 2 years of service and automatic government contributions after 60 days’ service.

The selling point is that under the new system 85% will receive some kind of portable retirement benefits as opposed to 19% now. This is supposed to be a recruiting and retention matter.

The above is a gross summary and anyone with issues on this needs to look further into the program. The comment is designed by the author to provide Ambassadors a short idea of what BRS is all about. Questions are sure to develop.

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