BRS gives you a smaller pension than the old system, but adds free money in your TSP and a mid-career bonus. Even if you leave before 20 years, you walk away with savings. The key is to put in at least 5% so you get the full match.
What it is
The Blended Retirement System mixes three things:
- A pension (called a defined benefit) if you serve 20 years. It equals 2.0% times your years of service times your highest 36 months of basic pay. At 20 years, that is 40%. The old system used 2.5%, so the BRS pension is smaller.
- Free TSP money. The government puts 1% of your basic pay into your Thrift Savings Plan every month after your first 60 days, even if you put in nothing. After two years of service, it also matches what you put in, up to 4% more. Put in 5% and you get 5% from the government. That is a 10% total savings rate.
- Continuation pay. A one-time cash bonus paid between 8 and 12 years of service if you agree to serve more years. Active duty members can get 2.5 to 13 times their monthly basic pay. Drilling Guard and Reserve can get 0.5 to 6 times. Each service sets its own amount.
Who gets it
Everyone who entered service on or after January 1, 2018, is in BRS. The opt-in window for people who joined earlier closed at the end of 2018. Over 400,000 members opted in.
How to use it
- Contribute at least 5% of basic pay to your TSP. New members are signed up for 5% automatically, but check your LES. If you drop below 5%, you are leaving free money on the table.
- Know when you vest. The automatic 1% and its earnings become yours after two years of service. Your own money and the matching money are always yours.
- Spread out big contributions. If you put a large bonus or continuation pay into the TSP and hit the yearly limit early, you lose the match for the rest of the year. Plan so you contribute every month.
- Think about continuation pay. You can take it as cash or invest it. Ask your finance office about timing and your service obligation.
What people miss
- Leaving before 20 still pays. About 4 in 5 troops leave before 20 years. Under BRS, they still leave with TSP money they can keep growing.
- Matching stops at 26 years. The government contributions end after 26 years of service.
- The lump sum trade-off. At retirement, you can take 25% or 50% of your pension early as a lump sum. Your monthly check is cut until you reach Social Security full retirement age (usually 67), and the lump sum is discounted and taxed. It is often a costly choice, so get counseling first.
- Free financial counseling. Each service must give you BRS training. Personal financial counselors on base and through Military OneSource can help you decide.
Related
See the Thrift Savings Plan guide for 2026 limits and Roth options, and Military Retirement and the Survivor Benefit Plan for pension details.
Related benefits
- Thrift Savings Plan (TSP): 2026 Limits and TipsThe TSP is the military's version of a 401(k), with some of the lowest fees anywhere. For 2026, you can put in up to $24,500, plus catch-up money if you are 50 or older. Tax-free combat pay gets a special bonus.
- Military Retirement Pay and the Survivor Benefit PlanA 20-year military career pays a monthly pension for life, adjusted for inflation. The Survivor Benefit Plan lets your spouse keep 55% of it if you die. You make the SBP decision at retirement, and it is hard to undo.
- Basic Pay and the 2026 Pay RaiseBasic pay is the core of your paycheck and the number most other benefits are based on. Troops got a 3.8% raise in January 2026. Knowing how basic pay works helps you read your LES and plan for retirement.
- BAH and BAS: Your Housing and Food AllowancesBAH helps pay for housing and BAS helps pay for food, and neither one is taxed. For 2026, BAH rose an average of 4.2% and BAS rose 2.4%. These tax-free dollars are a big part of what you really earn.
Last reviewed 2026-11. Not affiliated with the Department of Defense. Confirm current rates with your finance office or the official source.