Who is eligible for the blended retirement system?

Who is eligible for the blended retirement system?

A: Blended retirement enrolls all service members who joined beginning January 2018 into the Thrift Savings Plan, with automatic and matching Department of Defense contributions. After completion of two years of service, you are “vested,” having full ownership, and that money belongs to you.

Can I still opt into the BRS?

While all military members who began their service this year automatically fall under the new retirement plan, Congress gave existing troops until Dec. 31 to opt into BRS. Active-duty Soldiers who had fewer than 12 years of service as of Dec.

Can I still opt into blended retirement system?

less than 12 years of active duty service, or fewer than 4,320 retirement points for reserve component members, as of 31 December 2017 were afforded the opportunity to opt-in to the Blended Retirement System through 31 December 2018 or remain grandfathered in their current retired pay plan.

What is the difference between BRS and TSP?

The new retirement system is known as the “Blended Retirement System” or BRS. The “blending” in BRS comes from the blending of two major sources of retirement income: the existing annuity provision for those who retire after 20 or more years of service, PLUS the Thrift Savings Plan (TSP).

How does BRS work for reserves?

Under the BRS, Service members may be eligible to elect to receive a discounted portion of their retired pay up front. The decision to elect a lump sum at retirement is entirely up to you. If you do not choose the lump sum option, you’ll receive your full retired pay upon eligibility.

Is it too late to switch to BRS?

Eligible service members may opt into BRS anytime between January 1, 2018 and December 31, 2018. It is important to note, service members opting into the new retirement system will begin receiving automatic and applicable matching government contributions effective the first pay period after opt-in.

What is the difference between TSP and BRS?

What is the BRS retirement?

The Blended Retirement System (BRS) blends the traditional, 20-year cliff-vested defined benefit annuity, similar to the existing Uniformed Services’ legacy retirement systems, with a defined contribution plan that allows Service members to contribute to a Thrift Savings Plan (TSP) account with government automatic and …

Is there a pension with BRS?

The BRS provides a defined benefit, which is a monthly pension payment for life, after 20 years or more of active-duty service.

Is BRS or legacy better?

In summary, while the Legacy Plan currently provides a higher quality pension, a major difference with the BRS is that you must serve at a minimum of 20 years in order to be eligible, and secondly that there is no government-matching in the TSP.

How many retirement points are there in the US?

–Reserve: Fewer than 4,320 retirement points as of Dec. 31, 2017 • Eligible members have all of CY 2018 to make their decision –Member wants to stay covered under current system –do nothing –Member decides BRS is better –can opt in

Who is eligible to opt into the Blended Retirement System (BRS)?

Grandfathered into the legacy “High-3” retirement system and are eligible to opt into the BRS. Which of the options listed pertain to the Blended Retirement System, but not the legacy “High-3” retirement system?

What are the benefits of the Uniformed Services Blended Retirement System?

The Uniformed Services Blended Retirement System UNCLASSIFIED Member’s TSP Contributions DoD Automatic 1% into TSP DoD Matching TSP Up to 4% Monthly Retired Pay TSP Earnings • Legacy Retirement System – Defined annuity benefit computed as – Must serve at least 20 years

What is the military retirement retirement retirement pension?

• The pension is still the primary component of military retirement Continuation Pay • Mid-career incentive designed to maintain force retention • Payable at 8, but not more than 12 years of service • AC*: 2.5x to 13x monthly basic pay (RC: 0.5x to 6x)