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Legacy versus blended retirement.  Which
retirement system is right for you?

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Imagine that this road represents the
path of your military career and

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retirement.   On the left is the legacy
retirement system...and on the right, the

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new blended retirement system or BRS. The
legacy system has served the DoD well

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since the late 1940s. BRS however,
provides additional options to attract

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and manage a military force in an
evolving global economy.  BRS goes into

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effect in January 2018.  Let's see how the
two systems compare as we move through

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the first four years of your career path.
Under the legacy system, you can

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contribute to the Thrift Savings Plan, or
TSP,  but the government doesn't kick any

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money in.  Under BRS, you can contribute to
TSP from your own pay.  After you have

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been serving for two months the
government automatically begins

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contributing an additional 1percent of your
basic pay directly to your TSP,

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regardless of how much you contribute.
After two years, the government will begin

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matching your contributions up to another
four percent for a total of five percent

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government contributions.  Oh, by the way,
if you're serving now and decide to opt

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into the new system in 2018 you get
these right away.  And here's what happens

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with TSP if you leave the military
before your retirement-eligible.  Under

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the legacy system, you keep your TSP and
any earnings.  Under BRS, you keep your TSP

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and any contributions that the
government has made for you, in addition

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to the earnings on those investments.
After just four years in the military,

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you're already receiving government
benefits towards your retirement that

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you take with you if you decide to leave
the military.  Legacy versus blended

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retirement, which retirement system is
right for you?

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you