How does retirement work now? Is it all contribution plans?

2019-05-13T10:51:44-04:00

When I got out, 1980, retirement was a fixed amount for 20 years service based on rank. I understand that was done away with.

Response by COL Private RallyPoint Member made May 13 at 2019 10:54 AM

2019-05-13T10:54:13-04:00

Blended means some is contributions. The rest is the same as before but you get 40% at 20 years. There is a lot of material on it. Just google blended retirement.

Response by SFC Private RallyPoint Member made May 13 at 2019 11:21 AM

2019-05-13T11:21:41-04:00

In short, it is a blend of a smaller pension with matching 401k.

Response by CW5 Jack Cardwell made May 13 at 2019 11:28 AM

2019-05-13T11:28:30-04:00

https://militarypay.defense.gov/Test/BlendedRetirement/

Blended Retirement

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

Response by MAJ Ken Landgren made May 13 at 2019 2:36 PM

2019-05-13T14:36:18-04:00

I am no expert on BRS but will try to describe it nevertheless. The retirement annuity is 40% of your base pay after 20 years. Upon retirement you can ask for a lump sum. However, this lump sum will be discounted at 6.9% which acts like a penalty. The military will automatically give your TSP funds annually and will match funds to a certain percentage. You need to be 59.5 years of age to withdraw funds from the TSP in order not to incur penalties.