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Military Finance

BRS Guide

The Blended Retirement System became mandatory for all new accessions after January 1, 2018. If you enlisted in 2021, you are under BRS. Three decisions will define your retirement outcome — and most service members don't understand any of them until it's too late.

This guide covers the TSP matching cliff, the continuation pay window at 8–12 years, and the lump sum election math at retirement — because poor decisions on these three points cost service members six figures over a career.

This guide is educational, not financial advice. Rules and rates change — verify current figures at mypay.dfas.mil and tsp.gov. Consider a fee-only military financial advisor (NAPFA-registered CFP with military expertise) for major decisions.

Key Numbers

40%

Pension Multiplier

of High-3 at 20 years (vs. 50% legacy)

Max TSP Match

1% auto + up to 4% match

2 yrs

Vesting Cliff

govt contributions vest at 2 years

8–12 yrs

CP Window

continuation pay decision point

BRS vs. Legacy High-3 — What Changed

The old system was all-or-nothing. BRS rewired the equation.

Before BRS, the military ran what is now called the "Legacy" or "High-3" system. Its defining feature: you either served 20 years and received a pension, or you separated with nothing. No TSP matching. No portable retirement benefit. No government-seeded account. Eighteen years of service followed by a medical separation produced a veteran with zero retirement benefit from those years of work. Approximately 83% of service members never reached 20 years. Under the old system, those 83% retired with nothing.

BRS was designed to fix this. It introduced mandatory TSP matching for all active duty service members — ensuring that even someone who serves 4 years and separates leaves with a funded retirement account. The trade-off: the pension multiplier was reduced from 2.5% per year to 2.0% per year, meaning a 20-year retiree gets 40% of High-3 instead of 50%.

Factor

Legacy High-3

BRS (post-2018)

Who is covered

Entered before Jan 1, 2018

Entered on/after Jan 1, 2018

Pension multiplier

2.5% per year of service

2.0% per year of service

Pension at 20 years

50% of High-3

40% of High-3

TSP auto contribution

None

1% of base pay from DoD

TSP matching

None

Up to 4% additional match

Vesting for government TSP

N/A

2-year service cliff

Continuation pay

None (reenlistment bonuses only)

Lump sum at 8–12 years

Lump sum option at retirement

25% or 50% of pension, discounted

Benefit if you leave before 20

$0 (no pension)

Vested TSP balance you keep

Who is under which system — no ambiguity

—Entered service before Jan 1, 2006 — you are on Legacy High-3. Period.
—Entered service Jan 1, 2006–Dec 31, 2017 — you were on Legacy, but could opt into BRS during the 2018 open season (that window closed Jan 1, 2019).
—Entered service on or after Jan 1, 2018 — you are on BRS. No choice. No opt-out.

Pro Tip:BRS is objectively better for the 83% of service members who won't reach 20 years. For career soldiers who will retire at 20+ years, the pension reduction is real — the TSP matching partially offsets it, but the 10-percentage-point reduction in monthly pension is significant over a 30-year retirement. Know which system you're on and plan accordingly.

The Three Pillars of BRS

Pension, TSP matching, and continuation pay — how they fit together.

BRS is designed as three interlocking components. You need all three to understand what you actually have — and what each one requires from you to capture.

Pillar One

Defined Benefit Pension

The traditional military pension, reduced from the legacy 50% to 40% of your High-3 average at 20 years. The formula is: High-3 Average × 2.0% × Years of Service. At 20 years, that's High-3 × 0.40. At 24 years, it's High-3 × 0.48. Every additional year adds 2%.

What this pillar requires from you: serve 20 qualifying years. This is still all-or-nothing. If you ETS at 19 years and 11 months, you receive zero pension. Pillar one is the same cliff it always was. Only the height changed.

Pillar Two

Government TSP Contributions

The new element. DoD contributes to your TSP whether or not you serve 20 years. The automatic 1% deposit starts after 60 days; matching begins after 26 weeks of service. At 5% of your base pay contributed, you receive up to 5% total government contribution monthly.

What this pillar requires from you: contribute at least 5% of base pay to TSP from the first eligible paycheck. Miss this, and you are leaving government money permanently on the table. There is no retroactive matching. What you didn't capture in January is gone in February.

III

Pillar Three

Continuation Pay

A mid-career cash payment offered between 8 and 12 years of service. Mandatory minimum of 2.5x monthly basic pay for active duty (0.5x for reserves), up to a maximum of 13x for active duty (6x for reserves) depending on branch and MOS retention needs. In exchange, you commit to 3–4 additional years of service.

What this pillar requires from you: active decision-making when offered. Taking it without doing the tax math and investing it wisely is worse than the best-case scenario. Refusing it without understanding what you're declining is also a risk. This is the decision most service members are least prepared for.

TSP Matching — The Exact Schedule

The most important financial action of your first year. Non-negotiable.

The TSP matching schedule under BRS is precise. Most finance briefings leave service members with a fuzzy sense of "the government matches you." Here is the exact schedule — dates, thresholds, and dollar amounts:

Day 1

You can enroll and begin contributing

Set up your TSP contribution in myPay immediately — on your first day if possible. Matching does not start yet, but you should not wait.

Day 61 (60 days)

DoD begins the 1% automatic contribution

The government deposits 1% of your base pay into your TSP account regardless of whether you contribute anything. This starts automatically — no action required.

Day 184 (26 weeks)

Full matching unlocked — up to 4% additional

After 26 weeks of service, DoD begins matching your contributions: 100% match on the first 3% you contribute, and 50% match on the next 2%. At exactly 5% contributed, you receive 4% from DoD — totaling 5% government contribution combined with the 1% auto.

2 years (730 days)

Vesting cliff — government contributions become permanently yours

The 1% automatic contributions and all matching deposits vest at 2 years of service. Before 2 years, those government dollars are in your account but are forfeited if you separate. After 2 years, they are permanently yours regardless of when you leave.

The matching formula, in plain numbers

Your Contribution

DoD Auto

DoD Match

Total Gov't

1% — leaving match on table

3.5%

4.5%

6%+

5% — max match; no increase beyond 5%

What vesting means in practice

"Vesting" means the government contributions become permanently yours. Before 2 years, the 1% auto deposit and all matching dollars appear in your account but carry a forfeiture risk. If you ETS or are involuntarily separated before hitting 2 years, those government contributions are clawed back. Your own contributions — every dollar you personally put in — are always 100% yours from day one. Only the government's share has a vesting period.

Critical:Contribute at least 5% from your first eligible paycheck. There is no catch-up provision for matching you missed in early months. Every month you contribute less than 5% is government money you permanently forfeited. An E-4 earning $2,700/month base pay who contributes only 3% instead of 5% leaves $54/month — $648/year — of matching on the table. Over a 6-year enlistment, that's nearly $4,000 in forfeited government money, before growth.

The Continuation Pay Decision

A lump sum you may not be ready for, at a moment you may not expect.

Continuation Pay (CP) is the third pillar of BRS and the most misunderstood. Between your 8th and 12th year of service, you will be offered a lump sum cash payment in exchange for a commitment to serve an additional 3–4 years. The decision arrives at the worst possible moment — mid-career, mid-family, when the money feels significant and the trade-off feels abstract.

When offered

8th through 12th year of service

exact timing is branch-dependent; not all components offer it at the same point in the window

Minimum amount (active duty)

2.5× monthly basic pay

the floor — your branch may offer significantly more depending on retention needs and MOS/AFSC/rating

Minimum amount (reserve/guard)

0.5× monthly basic pay

substantially lower for part-time component; active duty equivalent service time may adjust eligibility

Service obligation

3–4 additional years of service

must be served or continuation pay is subject to recoupment — this is not a voluntary bonus you can walk away from

Tax treatment

Ordinary income, taxed in year received

no special capital gains rate; no splitting across years; whatever you receive is added to your W-2 income that calendar year

TSP deposit option

Can be deposited directly into TSP up to annual limit

the best use in most situations — invested in Roth TSP if deployed during the year, you could receive this tax-free

The math for whether to take it

Take CP if…

✓You were planning to stay anyway — it's free money for an obligation you'd accept regardless
✓You can invest it at 5%+ return (TSP, Roth IRA, index funds) — not spend it
✓The after-tax amount is meaningful relative to your financial situation
✓Your MOS has a high multiplier (10x+ monthly pay in high-demand branches) — the math gets compelling
✓You're deployed during the tax year you receive it — CZTE makes it tax-free, dramatically improving the value

Think carefully if…

→You were planning to ETS or pursue civilian opportunities — the service obligation changes everything
→Your household is financially stressed and the money will be spent — you've committed 3-4 years for a tax-reduced lump sum you no longer have
→The service obligation extends past a PCS move or deployment cycle you were trying to avoid
→You have a special pay opportunity (contractor, tech, federal job) that the service obligation would foreclose
→You're close enough to 20 that CP is irrelevant to your separation decision — don't let it change a retirement-track plan

Example: E-6 with 8 years, $3,800 monthly basic pay

Minimum CP at 2.5×$9,500 gross

Federal income tax at 22% bracket−$2,090

State income tax (avg ~5%)−$475

FICA (Social Security + Medicare)−$727

Approximate take-home~$6,208

If invested in C Fund TSP at 8% average for 12 years~$15,600 at age 20-year point

Warning:Continuation pay is not a reenlistment bonus — those are separate. Under BRS, you are entitled to continuation pay regardless of whether your MOS has a reenlistment bonus. They can stack. If you are offered a reenlistment bonus and are in the CP window, understand both offers independently before signing anything.

The Lump Sum Election at Retirement

A BRS-unique option that sounds better than it is. Run the math before you sign.

At retirement, BRS gives you a unique option that the legacy system never had: you can elect to receive 25% or 50% of your future pension payments as a lump sum now, in exchange for reduced monthly payments until age 67. The appeal is obvious — a large cash payment at retirement to invest, pay off debt, or fund a business. The reality is that this option is almost always financially disadvantageous to the retiree.

What you receive

25% or 50% of the discounted present value of future reduced pension payments

the government does not give you 25% of 20 years of pension in one check — it calculates a "present value" using its own discount rate

The discount rate

DoD discount rate (set annually, historically 6–7%)

this is the rate the government applies to reduce the present value of your future payments; the higher the rate, the less cash you receive up front

Payment reduction period

Monthly pension reduced until age 67

after age 67, your pension returns to the full amount (with COLA adjustments applied throughout)

Tax treatment

Lump sum is taxable ordinary income in year received

a large lump sum can push you into a higher bracket, increasing the effective tax hit above your normal marginal rate

Who might consider it

Retirees with a documented, high-return investment plan or specific capital need

you would need to invest the lump sum at a return exceeding the government's discount rate to come out ahead — a high bar

The math the government doesn't walk you through

Example — E-7 retiring at 20 years, $3,000/month pension (40% of $7,500 High-3)

Full pension without lump sum$3,000/month, adjusted for COLA from age 42 forward

50% lump sum electionApprox. $87,000–$105,000 cash (varies with DoD discount rate)

Monthly pension during reduction period$1,500/month (50% reduction) from age 42 to 67

Monthly pension after age 67$3,000/month + 25 years of COLA adjustments

Total payments foregone during reduction$1,500/month × 300 months = $450,000 in reduced payments

Breakeven questionCan you invest ~$95K to grow to $450K+ over 25 years? That requires ~7.5% annual return — not impossible, but a high bar that requires actual discipline and no withdrawals.

Warning:The lump sum option exists because it saves the government money in expected value terms. If it were financially equivalent for both parties, the government would not offer it. The discount rate is set to the government's advantage. Most financial planners who understand military benefits recommend against the lump sum election unless there is a specific, compelling investment case that cannot be replicated by other means.

When it might make sense

→You have a documented investment plan with a realistic projected return above the government's discount rate and iron discipline to not touch the capital.
→You have significant high-interest debt (8%+) that the lump sum would eliminate, saving more in interest than you lose in pension reduction.
→You have a business opportunity with a documented return projection that exceeds the discount rate — not a hypothetical, an actual opportunity.
→Health conditions suggest you may not live to 67, in which case the guaranteed monthly payments carry more mortality risk.

TSP Fund Selection Under BRS

Your TSP's default setting is quietly costing you hundreds of thousands of dollars.

Contributing 5% of base pay to TSP is the first decision. Choosing where that money goes is the second — and for most BRS service members who set up TSP and never touch it again, this decision has been made for them badly.

The default problem

TSP automatically allocates 100% of contributions to the G Fund — Government Securities. The G Fund earns approximately 2–3% annually. The difference between G Fund returns and C Fund (S&P 500) returns over a 20-year career on a $500/month contribution is approximately $350,000–$400,000 in lost growth. If you have never changed your TSP fund allocation, check TSP.gov today.

G Fund — Government Securities

Avoid as primary holding

Principal-guaranteed, cannot lose money. Returns: ~2–3% historically. The safe haven for money you need within 5 years or are protecting near retirement. For a 22-year-old with 20+ years until retirement, this is a growth killer.

F Fund — Fixed Income / Bonds

Minor stabilizing role only

Tracks the Bloomberg U.S. Aggregate Bond Index. Returns: ~4–6% historically. Some value as a portfolio stabilizer if you're within 5–10 years of retirement. Not a growth engine for anyone under 50.

C Fund — S&P 500 Index

Primary holding for most

Tracks the 500 largest U.S. companies. Returns: ~10% annually over long periods. Goes down 20–40% in bad years. Recovers. Has never failed to reach new highs over any 15+ year window. Core of any aggressive BRS portfolio.

S Fund — Small/Mid-Cap Index

Strong complement to C Fund

Tracks the Dow Jones U.S. Completion Index — small and mid-size U.S. companies not in the S&P 500. Higher volatility, higher potential return than C Fund. Combining C and S provides exposure to essentially the entire U.S. stock market.

I Fund — International Index

Optional diversification

Tracks the MSCI EAFE Index — large companies in Europe, Australasia, and the Far East. Global diversification. Has lagged U.S. markets over the last decade but provides a hedge against sustained U.S. underperformance.

L Funds — Lifecycle (Target-Date)

Best for hands-off investors

Professionally managed blends that automatically rebalance from aggressive to conservative as you approach your target retirement year. Not the maximum-growth strategy, but infinitely better than G Fund and requires zero ongoing management.

Roth TSP advantage for junior enlisted

Roth TSP contributions are made with post-tax dollars, but all growth and qualified withdrawals in retirement are completely tax-free. An E-4 with dependents may have an effective federal tax rate under 10% when BAH and BAS are factored in. Paying 10% tax now on contributions to generate completely tax-free growth for 30 years is among the best financial deals available to anyone in America. The combat zone bonus: Roth contributions made during a Combat Zone Tax Exclusion deployment cost zero tax going in and zero tax coming out.

The 20-Year Math Under BRS

What pension plus TSP actually produces at E-7, E-8, and O-5 retirement.

"High-3" is the average of your highest 36 consecutive months of basic pay — not your final pay, not your average career pay. For most career service members, this is the 3 years just before retirement, when basic pay is at its peak. The pension formula: High-3 Average × 2.0% × Years of Service = Annual Pension. Divide by 12 for monthly.

Grade

Est. High-3

At 20 yrs (40%)

Monthly

TSP est. at 20 yrs*

E-6 (6 yrs)

~$42,000

~$16,800

~$1,400

~$95,000

E-7 (20 yrs)

~$57,000

~$22,800

~$1,900

~$185,000

E-8 (22 yrs)

~$65,000

~$28,600

~$2,380

~$220,000

O-3 (20 yrs)

~$88,000

~$35,200

~$2,930

~$270,000

O-5 (20 yrs)

~$118,000

~$47,200

~$3,930

~$340,000

*TSP estimate assumes 5% contribution + full match from year 1, C/S fund allocation averaging 8% return, 20 years of consistent contributions. Rounded estimates — actual figures depend on pay increases, contribution consistency, and market performance.

The pension comparison with legacy is straightforward: an E-7 retiring at 20 years under legacy receives approximately $2,375/month (50% × $57,000 ÷ 12). Under BRS, the same E-7 receives $1,900/month (40%) — a $475/month reduction in pension. But BRS adds a TSP balance of ~$185,000 that legacy service members never had. The 4% withdrawal rule on $185,000 generates ~$617/month — more than offsetting the pension reduction, with the principal remaining invested.

Pro Tip:The pension math at 20 years slightly favors legacy for career-intent service members. But the TSP balance comparison eliminates the gap and often reverses it — provided you actually contributed 5% from day one and chose growth-oriented funds. BRS is not worse than legacy for 20-year retirees who optimize it. It's worse for those who treat TSP as an afterthought.

Leaving Before 20 Under BRS

The portable TSP benefit — the entire reason BRS exists.

Under the legacy system, serving 8 or 12 years and separating produced exactly zero retirement benefit from DoD. Under BRS, a 4-year term with consistent 5% TSP contributions produces a vested retirement account balance you take with you. This is not consolation — for the 83% of service members who don't reach 20 years, this is the entire financial argument for BRS.

Estimated TSP balance at separation — E-5 contributing 5% throughout

Years Served

Own Contributions

Govt Contributions

Est. Total Balance*

4 years

~$6,800

~$16,000

6 years

~$11,200

~$31,000

8 years

~$16,400

~$53,000

10 years

~$22,400

~$82,000

12 years

~$29,200

~$122,000

*Estimates assume E-5 mid-grade pay, 5% personal contribution, full government match, 8% average annual return (C/S fund allocation). Vesting at 2 years assumed. Rounded figures.

A service member who separates after 8 years with ~$53,000 in TSP has something the legacy system never provided. If that money stays invested in growth-oriented funds for 30 more years until civilian retirement, it becomes approximately $534,000 at 8% average return. That is the power of time in the market and the reason BRS matters even for service members who never intended to stay 20 years.

What to do with your TSP when you ETS

Leave it in TSP

Often best

TSP has the lowest investment fees in the country (0.04%). You can keep managing your allocation and making contribution changes. No civilian 401(k) matches this fee structure.

Roll it into a Roth IRA

Good option

If your Roth TSP balance is significant, rolling into a Roth IRA eliminates required minimum distributions at age 73. More fund choices than TSP.

Roll it into employer 401(k)

Situational

Only if the employer plan has a compelling fund option or loan provision you need. Most civilian 401(k) fees are higher than TSP.

Cash it out

Never

Federal income tax + 10% early withdrawal penalty if under 59½. On a $53,000 balance, that's ~$15,000+ lost immediately — and you forfeit all future compound growth.

Guard and Reserve BRS

Points-based retirement, part-time TSP matching, and a different continuation pay floor.

Guard and Reserve BRS works on the same principles but operates on a points-based retirement system. The TSP matching applies during qualifying service periods — meaning matching accumulates during periods of active duty or paid training, not all days of the calendar year.

Retirement calculation

Points-based (not years of active service)

pension = (total retirement points ÷ 360) × 2.0% × High-3 average pay; each day of qualifying service earns points

Retirement age

Generally age 60 (reduced for qualifying deployments)

each 90-day deployment within authorized contingency operations reduces retirement age by 3 months; some members draw retirement in their 50s

TSP matching trigger

Applies during periods of Active Duty (Title 10) and Inactive Duty Training (IDT)

drill weekends (IDT) typically earn 4 points per month; the 26-week threshold for full matching counts actual service days, not calendar time

Continuation pay floor

0.5× monthly basic pay (minimum) for reserve component

active duty minimum is 2.5× — reserve/guard receive substantially less at the floor; branch needs can push multipliers higher

TSP contribution setup

Must enroll through MyPay or unit finance — does not auto-enroll the same way

part-time members must actively set up TSP contributions; the automatic 1% from DoD begins at 60 days of service, but matching requires your own contributions

Mobilization and matching

Full active-duty matching applies during mobilization orders

if you are mobilized (Title 10 orders), you receive the full active-duty matching schedule for the duration of orders — contribute at least 5% during any mobilization

Warning:Guard and Reserve service members often have inconsistent TSP contribution histories because part-time service makes steady contributions harder. A sergeant who drills on weekends with periodic mobilizations may have contributed for only 40% of calendar months. The solution: set a consistent contribution percentage for all service periods, and maximize contributions during mobilizations when your base pay is higher and matching is fully active.

Guard/Reserve deployment bonus: double benefit

A mobilized Guard or Reserve member who deploys to a combat zone gets two advantages simultaneously: (1) their income is tax-free under CZTE, making Roth TSP contributions completely free of tax in and out, and (2) their retirement points accumulate at the full active-duty rate for each day of deployment. Maximizing TSP contributions during any deployment is among the highest-ROI financial actions available to part-time service members.

BRS Decision Mistakes

The ones that cost six figures — and when they happen.

Common Mistakes

Not contributing 5% from day one

Week 1 — never recovered

The most expensive BRS mistake, and the most preventable. Every month you contribute less than 5% of base pay is matching money permanently forfeited. There is no catch-up for missed matching. An E-4 who contributes 0% for the first 6 months of enlistment forfeits roughly $600–$800 in government match — before compound growth. Set it up in myPay during your first week at your unit.

Leaving all contributions in G Fund

Years 1–20 — silent, accumulating damage

You set up TSP, you contribute 5%, you never check the fund allocation. Ten years later, 100% of your balance is earning 2.5% in G Fund instead of 10% in C Fund. The difference on a $500/month contribution over 20 years is roughly $350,000 in lost growth. Check TSP.gov today. If your allocation is 100% G Fund, change it before you finish reading this page.

Taking continuation pay and spending it

8–12 year mark — critical window

Continuation pay arrives as a large direct deposit and immediately gets absorbed into a new truck payment, a vacation, or debt that could have been paid off differently. You have committed 3–4 additional years of service and have nothing to show financially. The correct move: decide in advance of the offer exactly where the money goes. TSP, Roth IRA, or high-interest debt elimination in that order.

Electing the lump sum at retirement without running the math

Retirement processing — irreversible

The retirement brief offers the lump sum as an option. It sounds compelling. Most service members elect it without calculating the total discounted value of what they're giving up. The government's discount rate makes the lump sum a bad deal in expected value for most people. If you are considering it, model both scenarios explicitly before signing DD Form 2656.

Undercontributing to TSP in the first enlistment

Years 1–4 — highest compound growth potential

Compound interest is most powerful when money has the most time to grow. $1,000 invested at age 22 at 8% average return becomes ~$16,000 by age 62. The same $1,000 invested at age 32 becomes ~$7,400. Money saved in your first enlistment is worth more than twice as much as money saved in your second. Junior enlisted are usually told "you'll save more when you earn more." The math says the opposite.

Separating before 2 years and forfeiting government contributions

Before 730 days — silent loss

Service members who separate before 2 years — involuntarily or voluntarily — lose the DoD automatic 1% contributions and all matching deposits that have accumulated. Your own contributions are always yours. But if you're approaching the 2-year mark and separation is being offered or considered, be aware of exactly how many days you have left until vesting. It may be worth the wait.

Frequently Asked

BRS Questions Answered

I joined in 2019 — am I under BRS?

Yes. Anyone who entered military service on or after January 1, 2018 is automatically covered by the Blended Retirement System. There was no opt-in or opt-out — BRS is your system. The legacy High-3 pension is only for those who entered service before January 1, 2018 and either remained on legacy or opted into BRS during the 2018 open season.

What if I don't contribute anything to TSP?

If you contribute zero, the Department of Defense still automatically deposits 1% of your base pay into your TSP account — but only after 60 days of service, and it doesn't vest (become permanently yours) until you've served 2 years. However, you receive zero matching. Contributing nothing means leaving 4% of your monthly base pay — potentially $100–$200+ per month depending on your grade — on the table permanently. Contributing at least 5% is one of the highest-return financial decisions available to you.

Should I take continuation pay?

It depends on your situation. Continuation pay is taxable income and counts as ordinary earnings in the year you receive it. Before accepting, calculate: (1) your actual after-tax payout, (2) what you'd do with the money, and (3) whether the 3–4 year service obligation it carries conflicts with your plans. For most service members, depositing continuation pay directly into TSP (up to the annual limit) or an IRA is significantly better than spending it. Taking it and spending it is the worst outcome — you've committed extra service time and have nothing to show.

Is the lump sum at retirement a good deal?

Almost never. The government uses a discount rate that values future payments less than their actuarial worth. When you elect 25% or 50% of your pension as a lump sum, you receive significantly less money in present value than you give up. Your monthly payments reduce until age 67. Unless you have an exceptional investment opportunity with a return that beats the government's discount rate, or an urgent need for capital, the lump sum election will cost you total lifetime income. Run the actual numbers with a financial calculator before electing.

What does "High-3" mean under BRS?

High-3 refers to the average of your highest 36 months (3 years) of basic pay. This is the base for your pension calculation. Under BRS, the pension formula is: High-3 average × 2.0% × years of service. At exactly 20 years, that produces 40% of your High-3 average. This is lower than the legacy system's 2.5% multiplier (which produces 50% at 20 years), but BRS adds the TSP matching component to partially offset this reduction.

Can I still stay in after 20 years under BRS?

Yes, and longer service continues to build your pension. Each year past 20 adds 2.0% per year to your multiplier. At 24 years, your multiplier is 48%. At 30 years, it reaches 60% of High-3. Under the legacy system, the multiplier was 2.5% per year with a 75% cap at 30 years. Under BRS, there is no published cap, but the same practical constraints apply.

What happens to my TSP if I leave before 20 years?

Your own contributions and their earnings are always 100% yours from day one. The government's 1% automatic contribution and matching contributions vest after 2 years — if you leave before 2 years of service, you forfeit the government's contributions. After 2 years, all government contributions are permanently yours. You can leave your money in TSP indefinitely (enjoying the lowest investment fees in the country at 0.04%), roll it into an IRA, or roll it into a civilian 401(k). Never cash it out — you'll owe taxes plus a 10% penalty.

Take Action

BRS checklist — by career phase

First Week of Service