Many veterans find the military an ideal career option; hence, staying in service for as long as 20 years can be normal for some service members.
Another benefit of choosing the military as your actual career is the immense benefits, such as the military retirement benefits, which is the case especially for the Blended Retirement System (BRS). The military blended retirement — or navy blended retirement—offers a combination of the traditional pension plan with a blend of new features to align more closely with civilian retirement plans.
Whether you’re new to the military or already serving, understanding how the blended retirement plan can help you plan for life after service and get help with other benefits, such as navigating the VA claims process. If you’re unsure where to start, our disability benefits education service can help guide you through the process.
Overview and Purpose of the BRS
The new military retirement benefits system was launched in 2018 to provide a more inclusive retirement structure for veterans. The military blended retirement system supports long-term financial planning while offering tools like matching contributions and continuation pay. It’s a more flexible option for a generation of service members who may not make the military their lifelong career.
Understanding the BRS Components
Benefit and Contribution
At the heart of the blended retirement system are two key components:
- Defined Benefit (Pension): This remains similar to the legacy system—service members who complete 20 years will receive a monthly pension under the BRS and will be eligible for 40% of the average High-36. However, under BRS, it’s calculated at a 2.0% increase per year of service instead of 2.5% like in the High-36 system.
- Defined Contribution (Thrift Savings Plan—TSP): The Department of Defense contributes 1% of your basic pay to your TSP account automatically. Service members can also receive up to 5% in matching contributions if they contribute at least 5% of their pay.
This dual system ensures that even those who leave before hitting the 20-year milestone can still leave with a financial benefit. This also means that the longer you stay active in the service, the higher your benefit can be.
Lump-Sum Options
Another unique feature of BRS is the lump-sum payment option. At retirement, eligible service members can choose to receive a portion of their retired pay as a lump sum—either 25% or 50%—in exchange for reduced monthly payments until reaching full Social Security age (around 67).
While the lump sum can offer immediate financial support, it’s crucial to weigh this decision carefully. Depending on your financial goals, it may or may not be the smartest long-term move.
Eligibility and Enrollment
Who is Automatically Enrolled?
In most cases, you need to fill out different types of forms to be eligible for a specific benefit, but if you joined the military on or after January 1, 2018, you’re automatically enrolled in the military blended retirement system or your respective service’s BRS version. This includes all active duty and reserve component members.
Criteria for Existing Service Members
If you were serving as of December 31, 2017, and had fewer than 12 years of service (or fewer than 4,320 retirement points for reservists), you had the option to opt into BRS during the 2018 calendar year. Those who didn’t opt in remain under their original retirement plan.
Comparing BRS with Legacy Retirement Systems
Understanding how BRS stacks up against previous models helps clarify its long-term value:
| Feature | BRS | High-36 | REDUX |
| Vesting TSP | After 2 or 20 years | N/A | N/A |
| Benefit Multiplier | 2.0% per YOS (Year of Service) | 2.5 per YOS | 2.0% per YOS (including $30k CSB) |
| TSP Matching | Yes (up to 5%) | No | No |
| Continuation Pay | Yes | No | No |
| Lump Sum Option | Yes | No | No |
While legacy systems may offer a larger monthly pension, BRS’s TSP contributions and portability make it a more flexible and accessible option—especially for those who don’t plan to serve for 20 years.
Maximizing BRS Benefits
Here are a few ways to get the most out of your military blended retirement:
- Contribute at Least 5% to TSP: This ensures you receive the full 5% DoD match—essentially free money.
- Plan for the Long Term: Regular contributions, even small ones, grow over time thanks to compound interest.
- Avoid Early Withdrawals: Taking money out early from your TSP can result in penalties and long-term financial setbacks.
- Be Strategic with Lump-Sum Options: Evaluate whether a lump sum aligns with your financial goals. Speak to a retirement advisor if needed.
- Understand Continuation Pay: Around your 12th year of service, you may receive a continuation bonus for agreeing to serve several more years. This can significantly boost your savings if invested wisely.
Finally, retirement is just one part of your transition. Don’t overlook your VA benefits.
You can take advantage of J4V, a VA claims consulting and disability benefits coaching firm that can provide you with the tools to help you calculate VA disability and provide you with educational assistance to help you navigate through the harsh terrain of the VA process.
Book a free strategy call to directly reach our veteran coaches. You may also visit our VA claims consulting page to learn more about us.