FYI: Reserve Blended Retirement System

Updated : Sep 11, 2019 in Articles

FYI: Reserve Blended Retirement System


THE NEW BLENDED RETIREMENT
SYSTEM TOOK EFFECT ON JANUARY
1ST. AS A MEMBER OF THE RESERVE
COMPONENT YOU MAY WANT TO OPT-IN OR STAY WITH
THE CURRENT SYSTEM. DETAILS JUST AHEAD,
FOR YOUR INFORMATION. I’M AIRMAN FIRST CLASS
CORY KUTTLER AND THIS IS F-Y-I. SO WHAT IS BLENDED THE
RETIREMENT SYSTEM? THE BLENDED RETIREMENT SYSTEM OR
B-R-S IS A NEW MILITARY RETIREMENT SYSTEM THAT
BLENDS A TRADITIONAL LEGACY RETIREMENT
PENSION WITH A DEFINED CONTRIBUTION TO SERVICE
MEMBER’S THRIFT SAVINGS PLAN ACCOUNT. THE NEW SYSTEM BECAME
EFFECTIVE JANUARY FIRST, 2018. SO HOW DOES
THIS AFFECT YOU? YOU’LL NEED TO KNOW WHICH
TYPE OF RETIREMENT YOU’RE ELIGIBLE FOR. THE CURRENT SYSTEM ALLOWS
ONLY MEMBERS WHO COMPLETE AT LEAST 20 YEARS OF
SATIFACTORY SERVICE TO RECEIVE FULL RETIREMENT
PAY AS AN ANNUITY, MEANING YOU GET A MONTHLY
RETIREMENT CHECK STARTING WHEN YOU REACH RESERVE
RETIREMENT ELIGIBILITY AT AGE 60, OR SOONER IF YOU
QUALIFY FOR A REDUCED AGE RETIREMENT. THE AMOUNT OF YOUR MONTHLY
PAYMENT IS DETERMINED BY CALCULATING 2.5 PERCENT
TIMES HOW MANY YEARS YOU SERVED, TIMES
YOUR BASIC PAY. THERE ARE SOME NUANCES TO
THAT, ESPECIALLY IF YOU SEW ON NEW RANK RIGHT
BEFORE YOU RETIRE. OF COURSE, IF YOU SEPARATE
BEFORE 20 YEARS OF SERVICE, YOU DON’T RECEIVE
ANYTHING OTHER THAN WHAT YOU’VE PUT AWAY
ON YOUR OWN. YOU CAN ALSO CONTRIBUTE TO
THE THRIFT SAVINGS PLAN AS PART OF YOUR
RETIREMENT SAVINGS. THE BLENDED RETIREMENT
COMES FROM A TWO-PART SYSTEM, A DEFINED
BENEFIT AND A DEFINED CONTRIBUTION. THE DEFINED BENEFIT UNDER
THE NEW SYSTEM IS A MONTHLY RETIREMENT CHECK. IF YOU COMPLETE AT LEAST
20 YEARS OF SERVICE, YOU GET A MONTHLY
RETIREMENT CHECK. IT’S BASED ON THE
CALCULATION OF 2 PERCENT TIMES YOUR YEARS OF
SERVICE TIMES YOUR BASIC PAY, INSTEAD OF THE 2.5
PERCENT UNDER THE LEGACY SYSTEM. THE DEFINED CONTRIBUTION
GOES TO YOUR THRIFT SAVINGS PLAN, OR T-S-P. THE DEPARTMENT OF DEFENSE
WILL AUTOMATICALLY CONTRIBUTE THE EQUIVALENT
OF 1 PERCENT OF YOUR BASIC PAY INTO YOUR THRIFT
SAVINGS PLAN ACCOUNT. THEY’LL ALSO MATCH UP TO 4
PERCENT OF CONTRIBUTIONS FROM YOUR BASIC PAY. FOR THOSE WHO DECIDE NOT
TO DO A FULL 20 YEARS, YOUR T-S-P CONTRIBUTIONS,
THE MATCHED CONTRIBUTIONS AND ANY EARNINGS ARE
STILL YOURS TO KEEP. RESERVE COMPONENT SERVICE
MEMBERS WHO HAVE ACCRUED FEWER THAN FOUR-THOUSAND-
THREE-HUNDRED-TWENTY RETIREMENT POINTS AS OF
DECEMBER 31ST, 2017 CAN CHOOSE WHICH OPTION
WORKS BEST FOR THEM. ALL SERVICE MEMBERS WHO
ENTER THE MILITARY ON OR AFTER JANUARY FIRST, 2018
WILL AUTOMATICALLY BE ENROLLED IN B-R-S. CONTINUATION PAY IS
ANOTHER PART OF THE NEW BLENDED RETIREMENT SYSTEM. CONTINUATION PAY IS A
ONE-TIME DIRECT CASH PAYOUT. FOR THE RESERVE COMPONENT,
YOU MUST COMPLETE 12 YEARS OF SERVICE, BE IN A PAID
STATUS WHEN CONTINUATION PAY IS OFFERED, AND YOU
MUST BE ELIGIBLE TO ENTER INTO AN AGREEMENT TO
COMPLETE THE REQUIRED SERVICE COMMITMENT
OF 4 YEARS. THE BONUS IS EQUAL TO
ZERO-POINT- FIVE TIMES YOUR MONTHLY BASIC PAY,
EXCEPT FOR AIRMEN ON ACTIVE GUARD AND RESERVE
DUTY FOR WHICH THE MULTIPLIER IS TWO-POINT-
FIVE TIMES YOUR MONTHLY BASIC PAY. AIRMEN WHO ARE CLOSE TO 12
YEARS OF SERVICE MUST OPT IN TO THE BLENDED
RETIREMENT SYSTEM AND ELECT TO RECEIVE
CONTINUATION PAY BEFORE REACHING 12 YEARS OF
SERVICE, OR YOU’LL LOSE ELIGIBILITY FOR
CONTINUATION PAY. IT’S RECOMMENDED THAT
AIRMEN MEET WITH A FINANCIAL COUNSELOR FROM
THE AIRMAN AND FAMILY READINESS CENTER TO
MAKE A PLAN FOR USING CONTINUATION PAY. IF YOU’RE ELIGIBLE FOR
THE BLENDED RETIREMENT SYSTEM, YOU ARE REQUIRED
TO TAKE OPT-IN TRAINING TO HELP YOU MAKE AN
INFORMED DECISION. YOU CAN ACCESS THE
TRAINING THROUGH THE ADVANCED DISTRIBUTED
LEARNING SYSTEM, OR A-D-L-S. IF YOU’VE ALREADY DONE THE
TRAINING THROUGH JOINT KNOWLEDGE ONLINE, BE SURE
TO PROVIDE A COPY OF YOUR J-K-O TRAINING
CERTIFICATE TO YOUR UNIT TRAINING MANAGER SO THEY
CAN RECORD IT IN A-D-L-S. THERE ARE OTHER RESOURCES
TO HELP YOU MAKE AN INFORMED DECISION. PERSONAL FINANCIAL
COUNSELORS AND EDUCATORS ARE AVAILABLE AT YOUR
LOCAL AIRMAN AND FAMILY READINESS CENTER TO HELP
YOU WALK THROUGH YOUR OPTIONS. THE OPT-IN/ELECTION PERIOD
FOR THE BLENDED RETIREMENT SYSTEM RUNS FROM JANUARY
FIRST, 2018, AND CONCLUDES ON DECEMBER 31ST, 2018, SO
MAKE SURE YOU’RE READY TO MAKE AN INFORMED DECISION. ALL THE DETAILS ON B-R-S
CAN BY FOUND ON MYPERS. FOR F-Y-I I’M AIRMAN
FIRST CLASS CORY KUTTLER

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