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Legacy vs Blended Retirement.

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Which retirement system is right for you?

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Imagine that this represents the path of your
military career and retirement.

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On the left is the legacy retirement system,
on the right, the new, blended retirement

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system, or BRS.

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The legacy system has served the DoD well
since the late 1940’s.

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BRS, however, provides additional options
to attract and manage a military force in

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an evolving global economy.

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It goes into effect in January 2018.

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Let’s see how the two systems compare as
you arrive at the twenty year mark of your

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career.

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Both the legacy and blended retirement system
provide monthly retired pay after serving

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at least 20 years, or obtaining 20 qualifying
years in the National Guard or Reserve.

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Under the legacy retirement system, your monthly
retired pay is computed like this…two point

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five percent, times your years served, times
your base pay at retirement, so 20 years equates

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to 50 percent.

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With BRS, the multiplier is reduced to two percent, times your years served, times your base pay at retirement.

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So 20 years equates to 40 percent.

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For National Guard and Reserve, both retirement formulas are essentially the same.

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But to determine your equivalent years of active service,

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divide your retirement points by 360.

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With both plans, if you contributed to the Thrift Savings Plan

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you’ll have that too, along with earnings

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on those investments.

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Under the legacy retirement system, you have not

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received any government contributions to your
TSP.

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Under BRS, at a minimum the government has contributed

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the amount of 1% of your basic pay to your

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TSP, plus if you have contributed to the TSP,
you’ll have that along with government matching

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funds of up to five percent of your basic
pay, and any earnings on those investments.

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To learn more, visit the Blended Retirement
System Resource website, take the BRS Opt-In

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Course or visit your installation’s personal
financial counselor.

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Legacy vs Blended Retirement.

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Which retirement system is right for you?