"...In November 2015, the President signed the FY 2016 National Defense Authorization Act. Included among the thousands of items in the act was a significant change in the military retirement system.
The change, based upon recommendations from the Military Compensation and Retirement Modernization Commission, is intended to provide Service members with a portable retirement benefit whether serving four years or forty years, while providing cost savings...
The new blended retirement system retains the 20-year cliff vested annuity, but reduces the multiple from 2.5% to 2.0%.
Under the new plan, you would receive 40% of the average of your highest three years of base pay after 20 years of service. Each additional year of service in excess of 20 years provides you with an additional 2% of your high three base pay.
To offset the reduced defined benefit, the defined contribution component, TSP, becomes an integral part of the retirement plan...."
Read more at MCCS
