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MAJ Contracting Officer
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Interesting video, the JKO training on the Blended Retirement System was good, basically if you don't want to be in for 20 years, BRS is the way to go, if you have more than 10 years in it is probably a bad idea to switch. The BRS you only get 40% retirement pay at 20 years 2% per year, whereas the legacy retirement system you got 2.5% per year or 50% for 20 years. And the BRS is only worthwhile if you contribute to your TSP to get the matching 5%.

Basically you can get a 5% pay increase if you donate 5% of your annual income to retirement in exchange for .5% a year retirement pension. If you opt in, but don't make the 5% contribution you loose 10% or more of your retirement in exchange for a 1% increase in annual pay that goes into your TSP.
In short if you don't want to stay in for 20 go with the BRS as you'll get 1-5% TSP contributions in exchange for giving up a pension plan that you don't intend to use anyway.
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LTC Stephen B.
LTC Stephen B.
2 y
If opting in, you should be planning on contributing as much as possible. Hopefully members are already either contributing to TSP or an IRA of some kind. It will be difficult to set aside 3-5% of your pay if you aren't doing so already - that would end up effectively being a pay cut to participate. But if you're already setting aside money for retirement, this would be a redirection of that amount rather than a take-home-pay cut.

The longer you have to retirement, the more time you have to make up for (or even exceed) the difference in the final annuity. Better deal for RC members, since they don't draw their annuity until about the same time they'd be able to tap the TSP to make up the difference. AC members would feel the full effect of the reduced annuity from retirement until age 59 1/2, but their TSP investment would continue to grow during that time.
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MAJ Contracting Officer
MAJ (Join to see)
2 y
Wish there was a payback calculator giving you how much time you needed to stay in at 5% contribution to make it even, I did mine manually and I estimate I need about 17 years of reserve time (I have a lot of points) That is very close to my MRD so BRS is a pass for me, and probably most individuals with more that 8 years in service.
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SPC Margaret Higgins
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LTC Stephen Beller: AWESOME! AND, FUNNY! -Most Sincerely, Margaret
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