Military Pension vs BRS Calculator

Frequently Asked Questions

Who is on which retirement system?

Members who entered before January 1, 2018 are on Legacy High-3 unless they opted into BRS during the 2018 calendar-year window. All members who entered on or after January 1, 2018 are automatically on BRS.

Should I take the BRS continuation bonus?

If you planned to serve the additional 4 years anyway, the bonus is essentially free money. The decision is only difficult if you were on the fence about staying.

What is SBP and how does it affect retirement pay?

The Survivor Benefit Plan trades a 6.5% reduction in retired pay for a 55% lifetime annuity to your surviving spouse. The SBP election is made once at retirement and is largely irrevocable.

Can I switch from BRS to Legacy?

No - after the 2018 opt-in window closed, the choice became permanent. BRS members cannot switch back to Legacy.

Does TSP count toward the retirement multiplier?

No - the TSP is a separate defined-contribution account. Only base pay and the pension multiplier determine the defined-benefit pension check.

Provided by AllCalculators.io
Free online calculators for everyday. No registration required.

Estimates for informational purposes only.

Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

JavaScript is required to use the interactive calculator above. The questions and answers below remain readable without JavaScript.

How It Works

This tool compares the lifetime value of the Legacy High-3 pension against the Blended Retirement System (BRS). Legacy High-3 pays 2.5% of average base pay per year of service at retirement, with annual COLA matching CPI. BRS pays 2.0% per year but adds a government TSP match of up to 5% of basic pay and a year-12 continuation bonus of 2.5 times monthly base pay.

Enter years of service, pay grade or a custom High-3 base pay, your TSP balance, expected return, whether you took the continuation bonus, and your retirement and life-expectancy ages. The calculator projects each system's monthly and lifetime pension value, adds BRS's TSP growth, and shows the net difference.

Eligibility

Retirement system eligibility depends on when you entered service:

Legacy High-3: members who entered active duty before January 1, 2018 and did not opt into BRS during the 2018 open season.

BRS: all members who entered on or after January 1, 2018, plus Legacy-eligible members who voluntarily opted in during 2018.

Both systems require 20 years of service to vest a pension. BRS TSP matching vests after 2 years of service; the 1% automatic contribution vests after 3 years.

The BRS continuation bonus is available at the 12-year mark for members who commit to 4 additional years.

Tips

Under BRS, contribute at least 5% of basic pay to the TSP to capture the full government match - that match is an instant 100% return on the first 5% you contribute.

Do not front-load TSP contributions early in the calendar year - if you hit the annual IRS limit before December, you forfeit match dollars for the remaining months.

Model your actual expected years of service rather than assuming 20. A BRS member who stays to 30 years partially offsets the lower multiplier through more years of TSP match.

The BRS lump-sum option at retirement reduces your monthly pension by 25% - this is rarely a good trade unless you have a very high personal discount rate.

Consult a DoD Personal Financial Counselor before making any system comparison that involves irrevocable decisions.

FAQ