If you do 20 years AD service under BRS, will you begin receiving your pension as soon as you ETS?

CPT Private RallyPoint Member — Sun, 21 Mar 2021 21:50:59 -0400

I know that in the traditional retirement this is the case but is it the case under the BRS as well?

Response by SFC Private RallyPoint Member made Mar 21 at 2021 10:34 PM

SFC Private RallyPoint Member — Sun, 21 Mar 2021 22:34:47 -0400

"Lump Sum Option
When you retire ( or at age 60 for guard/reserve members), you will be given the option to receive monthly retirement pay checks, or you can take a lump-sum payment of either 25% or 50% of your gross estimated retired pay, and get smaller monthly checks.

If you take a 25% lump-sum payment, your monthly retirement pay will be 75% of the normal full retirement pay. If you take the 50% lump-sum, it will be 50% of the normal retirement pay."

"Also, your lump-sum payment is discounted by an amount that changes every year. For 2020 this discount rate is 6.75%. That means that if your total retirement is determined by your finance office to be $100,000 you would only receive $93,250 (100,000 discounted by 6.75%). Also, the lump sum payment is taxable.

When you reach age 67 your retirement pay goes back up to the full amount if you take either lump-sum option."

More info here: https://www.military.com/benefits/military-pay/blended-retirement-system.html#:~:text=The%20Blended%20Retirement%20System%20Summed%20Up&text=Defined%20Benefit%3A,of%20your%20final%20base%20pay.

https://militarypay.defense.gov/blendedretirement/

https://www.militaryonesource.mil/financial-legal/personal-finance/retirement-planning/frequently-asked-questions-regarding-the-new-blended-retirement-system/

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Response by CPT Lawrence Cable made Mar 22 at 2021 1:18 PM

CPT Lawrence Cable — Mon, 22 Mar 2021 13:18:16 -0400

If your question is do you get a pension check at the end of 20 years under BRS, the answer is yes. The difference is that you only get 2% per year credit for pay based on your high three years. So you basically will get 40% of your top three years instead of 50% under a traditional retirement. Hopefully you took advantage of the savings option too.

Response by SSG Edward Tilton made Mar 22 at 2021 1:41 PM

SSG Edward Tilton — Mon, 22 Mar 2021 13:41:40 -0400

I retired in 1987, I have no idea what you are saying.

Response by SFC Private RallyPoint Member made Mar 22 at 2021 3:53 PM

SFC Private RallyPoint Member — Mon, 22 Mar 2021 15:53:23 -0400

You'll definitely want to be maxing those matching contributions the whole time in order to get the most out of the BRS.