5 Key Points About the New Retirement System

"...Starting Jan. 1, 2018, all new entrants to the military will receive a new retirement system, known as the Blended Retirement System.

This system is a dramatic departure from the military’s current retirement system, which awards a pension of at least 50 percent of base pay to qualifying service members immediately upon retirement.

The Blended Retirement System combines the military’s defined benefit plan with what is known as a defined contribution plan, which is similar to the retirement offering found in most civilian 401K plans.

Service members who joined the service from Jan. 1, 2006 to Jan. 1, 2018 will have a choice: stay with the current defined benefit plan or opt into the new blended system.

Here are five factors to keep in mind for those of you who are facing the opt-in decision yourself or are advising subordinates on which plan to choose..."

Read more at the Military Times