Mark Overberg, Director of Army Retirement Services, here to talk about the new blended retirement system. What questions do you have?

2017-11-22T14:47:24-05:00

Mark enlisted as an All-Source Intelligence Analyst in 1985, he served two years in the 82nd Airborne Division. He then attended the Officer Candidate School and the Armor Officer Basic Course in 1988 before being assigned to the 1st Squadron, 1st Cavalry Regiment, 1st Armored Division in Germany. During his tour there, Overberg patrolled the East German and Czechoslovakian borders and served as a Cavalry Troop Executive Officer during Operation Desert Storm. After three years as a cavalry officer, the Army transferred him to the Ordnance Corps. His first logistics assignment was to the 194th Separate Armored Brigade, Ft. Knox, KY, where he deployed to South Florida for recovery operations after Hurricane Andrew in 1992 and to Haiti as the Logistics Support Team Commander for the multinational Caribbean Command Battalion during Operation Uphold Democracy in 1994. After a tour as a training advisor with the 218th Heavy Separate Brigade (South Carolina Army National Guard), Overberg attended the Command and General Staff Course, and then was assigned to Fort Bragg. While serving as the Support Operations Officer for the 530th Supply and Service Battalion (Airborne), he deployed to Uzbekistan in early November 2001. Overberg further deployed into Northern Afghanistan in January 2002 where he commanded Task Force MeS and supported the French and Jordanian Armed Forces and US Special Forces. In 2004, Overberg was assigned to the Army G-1 as the Executive Officer for the Director, Human Resources Policy and later as the Chief, Drug Testing Branch, Army Center for Substance Abuse Programs, where he was responsible for the Army’s military and civilian drug testing policy and programs. He retired on 1 November 2007. Overberg was awarded the Legion of Merit, the Bronze Star Medal (with oak leaf cluster), the Meritorious Service Medal (with three oak leaf clusters), the Army Commendation Medal (with four oak leaf clusters), the Army Achievement Medal (with five oak leaf clusters), the Valorous Unit Award, the Joint Meritorious Unit Award, the Army Staff Identification Badge, and American and German Parachutist Badges. In March 2010, after 2 ½ years as the Deputy Director, Personnel and Administrative Support Center, Office of Disaster Assistance, US Small Business Administration, Overberg became the Deputy Chief, Army Retirement Services within the Office of the Deputy Chief of Staff, G-1. In June 2016, Overberg was promoted to Director, Army Retirement Services. Working out of Arlington, VA, Overberg is responsible for all Army retirement services policy and oversight of the program’s delivery to Soldiers, Retired Soldiers, and surviving spouses of all three Army Components, as well as strategic level program communications. Overberg received a Bachelor of Science Degree in Industrial Management from the University of Akron and a Master of Business Administration degree from Webster University.

Response by SPC Robert Coventry made Nov 22 at 2017 2:59 PM

2017-11-22T14:59:43-05:00

They are going to make it better I hope

Response by 1SG Private RallyPoint Member made Nov 22 at 2017 3:52 PM

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After reviewing the new system thoroughly, I have come to some conclusions:
1. If you are planning on getting out after the current term, switch to BRS. You will at least leave with some retirement savings, albeit small.
2. If you are a mid-term Soldier, you need to consider if the continuation pay is enough to get you to stay for another term, but not until 20 years.
3. If you are anywhere over 5 years in service and planning to stay for 20 years, in almost every case it is a fool's choice to go to the BRS. Without getting too wonky, it takes more compounding than historical returns would give you to come out ahead. And it isn't a small difference, either. Smart people might disagree on this, but unless you think you are a smarter investor than the market will return, don't do it.
4. If you do opt in, do it on a Roth option. This is a complete no-brainer.
5. The up-front option in exchange for reduced retirement is a sucker bet, unless you plan on investing that money in a business. Even then, the tax implications are significant (pending legislation currently under consideration). You are also giving up the cost-of-living adjustments on the amount you receive up front, and that is a lot of money for someone getting out at age 40 or so.
6. If you do opt in, take every bit of that TSP match that you can get. It is the only part of your investment that is guaranteed. Do not leave free money on the table, ever when it comes to investing.

As an aside, I find it interesting that this change was pushed through with minimal controversy, considering that it is nearly an exact duplicate of the partial privatization of Social Security that was floated back in 2004. That plan was demagogued; this one is touted as great.
If someone were to offer me the opportunity to invest my payroll taxes, I would take it in a heartbeat. The current SS system is the equivalent of putting all of your money in the G fund.

Response by 1SG Private RallyPoint Member made Nov 22 at 2017 3:59 PM

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The BLUF that has been passed around the water cooler thus far is that the new system will benefit those at the beginning of their careers, while the traditional retirement is the best return for those that are in striking distance of their retirement. Has a theoretical line been drawn as to where the line of diminishing returns (tipping point) is? I realize that everyone's situation is slightly different but some generalizations should be able to be made towards the ends of the spectrum.

Response by LTC John Shaw made Nov 22 at 2017 5:31 PM

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I recently became a Grey area retiree as of Aug 7th and must wait for 6 more years prior to submitting paperwork to the Retired Reserve system for the 90 day qualifying periods and thousands of retirement points. The documentation puts the burden on the service member to prove service for both points & qualifying below age 60. I can recall from early in my career keeping documents to prove to the Army about my schools and service. I am working on my retirement packet now and after completion plan to set it aside for the six years before turning-in to HRC / Army Retirement Services. Bottom Line: Soldiers must do their part.
Questions:
Can I submit my retirement packet to have quality checked to ensure I did not miss critical item prior to the actual pay out period?
What planned improvements does the Army Retirement Services have on it's timeline to make it easier for service members to gain information about our own records, help us prove early reduction periods due to service on active duty on qualifying orders and ultimately to assist us in collecting retirement? Thank you for your service.

Response by SFC Kenneth Hunnell made Nov 22 at 2017 6:46 PM

2017-11-22T18:46:36-05:00

I really don't see the good in BRS.
It looks like a self building retirement plan.
The 401K, it's not a retirement plan. It's a tax law that allows you to take pretaxed income and invest it into the stock market. The only good parts is the thrift savings plan the IRA option and availability to draw from it if you don't do 20 yrs of service.
Soldiers are risking their lives already
Why doesn't the government say that they are fazing out the retirement system

Response by SPC Margaret Higgins made Nov 22 at 2017 9:49 PM

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LTC Mark Overberg: I WOULD JUST LIKE TO MOST SINCERELY WELCOME YOU TO RALLY POINT. It is quite an honor to have a man of your stature and caliber to join us here.
KUDOS, SIR, on being The Director of Army Retirement Services.
Most Respectfully, Lieutenant Colonel Overberg- Margaret C. Higgins U.S. Army Retired: Coach/Photographer

Response by 1SG Timothy Wallace made Nov 23 at 2017 5:43 AM

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I'm unable to fill in the active duty date 6/26/1972

Response by SGT David A. 'Cowboy' Groth made Nov 23 at 2017 6:22 AM

2017-11-23T06:22:12-05:00

No questions sir, just want to thank you for your service and your helping of fellow vets.

Response by PV2 Jerry Cooper made Nov 23 at 2017 1:02 PM

2017-11-23T13:02:29-05:00

How, after decades can I track down an enlistment bonus that was never paid? My DD214 and discharge paper from IRR show me to have been honorably discharged

Response by PFC Russell Cherry made Nov 23 at 2017 6:07 PM

2017-11-23T18:07:33-05:00

How do I get verified?

Response by Doris Collins made Nov 24 at 2017 1:22 AM

2017-11-24T01:22:22-05:00

I am new friends. Need friends.

Response by SFC Richard Foster made Nov 24 at 2017 6:41 PM

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How do I put up a Photo of me

Response by SSG Trevor S. made Nov 24 at 2017 10:27 PM

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Are there any plans on the table to allow current system retirees contribute to the TSP program to bolster their long range retirement funds?

Response by CW3 Susan Burkholder made Nov 25 at 2017 8:36 AM

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I misplaced my Guard RPAS statement. I have no idea/ don't remember my point balance. I can't do the calculator to decided which retirement is better for me. When I tried to estimate there was a statement that said those with 4300 points can not opt for the BRS? How do I find out what my points are or get another copy of my RPAS?

Response by CW3 Private RallyPoint Member made Nov 25 at 2017 3:50 PM

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I'm an Army Reserve CW3 with almost 7K points. I'm not eligible for BRS. If I stay in my current unit until I make CW4, I will not supervise anyone eligible for BRS. Why did I have to take the mandatory training again?

Response by MAJ Elaine (Price) Condono made Nov 25 at 2017 6:41 PM

2017-11-25T18:41:45-05:00

I do not have my picture from when I was working with JFKSWCS from 2010 to 2012. Also I remarried in 2013, changed my last name from Price to Condono. Is there a way I can get this updated in military records?

Response by CPT Aaron Kletzing made Nov 26 at 2017 7:11 AM

2017-11-26T07:11:57-05:00

LTC Mark Overberg I don't have a question for you, but I wanted to say thanks for personally taking your time to come here and connect with all of the RallyPoint community on this important issue. Best wishes to you.

Response by COL Private RallyPoint Member made Nov 26 at 2017 7:14 AM

2017-11-26T07:14:42-05:00

LTC Mark Overberg; I believe I have a grasp on the new system versus the old system...in a macro sense. My question is regarding the impact this will have on retention. I know there had to have been studies done as this was being planned and proposed. What do these studies say the impact will be to long term retention in the military? Will we see a decline in retention of officers and enlisted who have 10-20 years of service? Previously, if you made it over "the hump," you'd stay until 20. Is there a "hump" with the new system? What is the incentive to stay to 20 beyond patriotism and duty?

Response by CPT Aaron Kletzing made Nov 26 at 2017 7:18 AM

2017-11-26T07:18:18-05:00

LTC Mark Overberg I read here that you held this role (Chief, Drug Testing Branch, Army Center for Substance Abuse Programs) -- which is really unique as I have never had the chance to talk with someone who was in a position like that. My question is, what were some of the most important improvements you feel like you helped lead while in this role?

Response by PO1 Kevin Arnold made Nov 26 at 2017 8:37 PM

2017-11-26T20:37:11-05:00

What is a blended retirement?

Response by 1SG Private RallyPoint Member made Nov 27 at 2017 9:46 AM

2017-11-27T09:46:11-05:00

If this system is so damn great, give it to Congress and the Senate and tell them.to quit fucking with ours.

Response by Cpl Robert Thomson made Nov 27 at 2017 10:43 AM

2017-11-27T10:43:37-05:00

You veteran instant verification of active service dates will not go back past 1985. Since I joined in 1973 and went active in 1974, I can't have my service verified instantly. Also, participating in your site is not important enough to me to send you a copy of one of my two DD214s

Response by SFC Douglas Duckett made Nov 28 at 2017 1:51 PM

2017-11-28T13:51:40-05:00

As I am Medically with 60% (E-7 W/ 23.5 yrs), how does this system calculate for Medicals when they are found unfit for duty (like me)

Response by SGT Frank Pritchett made Nov 28 at 2017 2:00 PM

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When a Soldier is reaching retirement, at the point his "Time in Service", is computed there should be some mandatory protocol established. It may not seem important when the soldiers leaves the Army but it does mean something later on. Everything is left up to the Retiree to do among clearing hand receipts, making all the mandatory classes, setting up VA appointments, getting finances in order and not missing one medical appointment which is punishable under the UCMJ. None of this is organized.

Response by LTC Mark Overberg made Nov 28 at 2017 2:08 PM

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Thank you for the opportunity to talk today about the new military Blended Retirement System. Not only is it the first new military retired pay plan since 1986, it's the first time Service members will be asked to contribute a portion of their pay towards their own retirement. That's quite a culture change, but it's one everyday Americans and DOD civilian employees have been experiencing since the 1980s. I'm sure that Service members will adjust to this plan like they adjust to every other challenge that comes at them.

Response by LTC Mark Overberg made Nov 28 at 2017 2:11 PM

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The Blended Retirement System was created by Congress in the 2016 National Defense Authorization Act. The Department of Defense, all seven Uniformed Services, the Defense Finance and Accounting Service, and the Federal Retirement Thrift Investment Board are just a few of the agencies that have been developing the many policies and procedures necessary to implement this law. The BRS begins on Jan. 1, 2018 with a year-long opt in period for eligible Service members to decide if they want to stay with their current retired pay plan (the High 3 Plan) or opt in to the BRS. Also, any Service member who first joins the military on or after Jan. 1, 2018 will automatically have the BRS as their retired pay plan.

Response by CW3 Lynn Peterson made Nov 28 at 2017 2:23 PM

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A good resource is MyArmyBenefits, which has a retired pay comparison calculator to assist with the decision of whether to opt-in to BRS or stay with your current plan. http://myarmybenefits.us.army.mil/Home/Benefit_Calculators/Retirement.html

Retirement

Response by LTC Mark Overberg made Nov 28 at 2017 2:41 PM

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If you are eligible for BRS, there are a lot of resources available on post where you can get advice regarding your opt in decision. You can talk to personal financial counselors/managers at the Army Community Service centers and Family Life Centers. You can also talk to your chain of command, the installation Retirement Services Officer, take the opt in course on Joint Knowledge Online ( http://militarypay.defense.gov/BlendedRetirement/ ) , and you can use the MyArmyBenefits Blended Retirement System Comparison Calculator ( https://myarmybenefits.us.army.mil/Home/Benefit_Calculators/Retirement.html ).

Blended Retirement

Information on the U.S. Department of Defense Blended Retirement System.

Response by LTC Mark Overberg made Nov 28 at 2017 2:47 PM

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If you are eligible to opt in to BRS, you have from Jan. 1, 2018 to Dec. 31, 2018 to make your decision. If you decide to opt in, you'll do so through MyPay. If you decide not to opt in, no action is required, and you'll remain under the High 3.

Response by MAJ Matthew Arnold made Nov 28 at 2017 2:50 PM

2017-11-28T14:50:39-05:00

Seriously! We tried this back in the mid 70s with the post VN war VEEP. It didn’t work. Anything other than the tried and true old retirement will not work.

Response by LTC Mark Overberg made Nov 28 at 2017 3:04 PM

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Thank you for joining us! You can find more information about Blended Retirement at http://militarypay.defense.gov/BlendedRetirement/ and https://myarmybenefits.us.army.mil/Home/Benefit_Calculators/Retirement.html . For more information about Soldier for Life, visit https://soldierforlife.army.mil/ .

Blended Retirement

Information on the U.S. Department of Defense Blended Retirement System.

Response by SFC Kenneth Hunnell made Nov 28 at 2017 5:46 PM

2017-11-28T17:46:14-05:00

I noticed, you haven't raised the praise of the 401K as part of this new retirement plan

Response by MAJ Matthew Arnold made Nov 29 at 2017 11:36 PM

2017-11-29T23:36:41-05:00

This new system is BS. We need to get our senators and representatives to go back to the full military retirement system that my father had and I have. Write them now!

Response by MG Hugh Van Roosen made Dec 2 at 2017 7:43 AM

2017-12-02T07:43:46-05:00

Glad to see you here Mark.

Response by CW3 Private RallyPoint Member made Dec 15 at 2017 11:45 PM

2017-12-15T23:45:15-05:00

LTC Mark Overberg Sir, I'm looking at joining the AGR system after Jan 1st. I have 12 years in service and close to 3000 retirement points. Will I, or can I be forced into the BRS?

Response by 1SG Private RallyPoint Member made Feb 5 at 2018 1:13 PM

2018-02-05T13:13:36-05:00

If it was better for the service member, you have to know these idiots in Congress would not be looking to make changes

Response by MSgt Private RallyPoint Member made Feb 7 at 2018 8:34 AM

2018-02-07T08:34:02-05:00

The BRS is a suckers deal and however you want to paint the picture, its not going to make It a Picasso. And for the Gov’t to “give” you a bonus that’s taxed doesn’t make it a great deal either. So you’re saying 40% is a better deal than 50% retirement???? Open your eyes and stop feeding the bullshit to the younger generation.

Response by COL Private RallyPoint Member made Feb 11 at 2018 5:01 PM

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Mark, I served for four years in the SCANRG from 1980-1984 and on active duty from 1985-1997; does this system impact me at all? If not, would it make sense to try to get a government job for four years and try to hit the 20 year mark?

Response by SFC Jerry Sodan made Feb 19 at 2018 12:16 AM

2018-02-19T00:16:14-05:00

Hell “Top” you and I both know they have their sights set on us.

Response by SSgt William (Bill) Pangrass made Feb 23 at 2018 9:21 AM

2018-02-23T09:21:57-05:00

I learned one thing during my years in the military. If the government makes a big presentation to tell you how great something is, your getting screwed. If it's really good foe you, you have to find it out on your own.