YOUNGSTOWN AIR RESERVE STATION, Ohio -- Active and Reserve Airmen with fewer than 12 years of service or 4,320 retirement points as of Dec. 31, 2017, will have the option to enroll in the Blended Retirement System (BRS) between Jan. 1, 2018 and Dec. 31, 2018 after the completion of required training.
Once enrolled, the option is irreversible. Those who are eligible for the BRS and do not choose a retirement system by the end of 2018 will be automatically grandfathered into the current High-3 or Legacy system. Furthermore, all who enlist after 2018 will automatically be enrolled in the BRS.
“Everybody’s circumstances are going to be different, so everybody has to do their own measurements and find out what’s best for them,” said Jay Yabs, a certified financial planner contracted by the Department of Defense to teach the Blended Retirement System Opt-in Course. “We are finding though that people who are new to military service or that are earlier in their military career have the most to benefit, because they have the most time to invest. They have the most time to make up for the reduction in pension.”
An important aspect of the BRS to recognize is, even though the payout of an Airman’s retirement pension may change from a 2.5 percent multiplier down to a two percent multiplier, it makes up for this loss in matching a portion of Thrift Savings Plan (TSP) contributions. This can be beneficial to those not planning to serve 20 years. Under both retirement systems, it is required to serve 20 years to receive a pension, only under the BRS will service members see matched contributions of up to five percent.
Yabs said the service members who have the hardest decision to make are those who are approaching the ten-year mark and will have to do specific calculations to determine which system will be best for them.
“If an Airman is unsure about which system to choose, the best place to go would be to their training or readiness NCO or their family readiness provider so that they can be connected with a personal financial counselor,” said Yabs. “They are available full time and are flexible, confidential and free. Their services can also be used for outside military life. If you can’t attend an in-person class, do the online training. All the information is there, and if you have a question, reach out.”
The mandatory online training directs Service members to a retirement calculator that can help Service members begin calculating what plan is best for them, said Yabs. The difference in benefits could be between hundreds and thousands of dollars.
For more information on BRS, check out the Department of Defense BRS web page at http://militarypay.defense.gov/blendedretirement