What is the Blended Retirement System?
The Blended Retirement System (BRS) replaced the legacy High-3 pension for military members who entered service on or after January 1, 2018. Service members who were enrolled before that date had a one-time option to elect BRS (the election window closed December 31, 2018).
BRS 'blends' two components: 1. A reduced defined benefit pension (2.0% per year of service instead of 2.5%) 2. Government contributions to the Thrift Savings Plan (TSP) — the government automatically contributes 1% of base pay and matches up to an additional 4%
BRS pension formula
The BRS pension is calculated as:
Monthly pension = Years of Service × 2.0% × Final Average Salary (average of highest 36 months of base pay)
For 20 years of service: 20 × 2.0% = 40% of high-3 average base pay For 30 years: 30 × 2.0% = 60% of high-3 average base pay
Compare this to the legacy High-3 pension: 20 years = 50%, 30 years = 75%. BRS pays 20% less for the same service time — the trade-off is the TSP government match and the continuation bonus.
TSP government match under BRS
Under BRS, the government contributes to your TSP account regardless of your own contributions:
- Automatic 1%: The government contributes 1% of your base pay starting day one, even if you contribute nothing. This is fully vested after 2 years. - Matching contributions: The government matches your contributions dollar-for-dollar on the first 3% of base pay, then 50 cents on the dollar on the next 2% — for a maximum government match of 4%. - Maximum government contribution: 5% total (1% automatic + 4% match) when you contribute at least 5% of base pay.
You must contribute at least 5% of base pay to maximize the government match. At lower contribution levels, you're leaving free money on the table.
Continuation Pay bonus
BRS includes a mid-career Continuation Pay (CP) bonus offered at the 8–12 year service mark in exchange for committing to additional years of service:
- Active duty: 2.5× to 13× monthly basic pay - Reserve/Guard: 0.5× to 6× monthly basic pay
The exact amount is set by your service branch. This bonus is taxable. Taking it requires an additional service obligation (typically 4 years). The CP bonus is intended to offset the reduced pension — if invested in TSP, it helps make BRS financially competitive with High-3 for members who don't plan to stay 20+ years.
BRS vs. High-3: which is better?
Stay for 20+ years: High-3 almost always produces more lifetime retirement income. The pension gap (2.5% vs. 2.0% per year) compounds significantly over a 30–40 year retirement.
Leave before 20 years: BRS wins — you keep your TSP balance (including government contributions) if you vest, whereas under High-3, leaving before 20 years means zero pension.
Invest the TSP match aggressively: BRS members who maximize their TSP and invest the CP bonus in the TSP over a full career can narrow the lifetime income gap with High-3 — especially with aggressive allocation in the C/S/I funds.
Use the military pension calculator to model both scenarios with your specific years of service and base pay.
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Frequently Asked Questions
What is the BRS pension at 20 years?
Under BRS, a 20-year military retiree receives 40% of their High-3 average base pay (highest 36 months). Under the legacy High-3, a 20-year retiree receives 50%. The BRS pension grows at 2.0% per year of service vs. 2.5% for High-3.
Can I switch from BRS to the legacy High-3 pension?
No. The election to change from High-3 to BRS was a one-time, irrevocable choice that closed December 31, 2018. BRS applies to all service members who entered service on or after January 1, 2018.
How much does the government contribute to TSP under BRS?
The government contributes a total of up to 5% of base pay: 1% automatic (regardless of your contributions) plus up to 4% matching (when you contribute at least 5% of base pay). The 1% automatic contribution vests after 2 years of service; the matching contributions vest immediately.
Is BRS better than High-3 if I plan to stay 20 years?
For most career military who serve 20+ years, High-3 produces a higher lifetime pension income. The gap is 2.5% vs. 2.0% per year of service — a 20% reduction in pension for the same service length. The TSP match helps offset this, but the pension advantage of High-3 usually outweighs the TSP match for long-service members.