"...After nearly two years of planning, significant changes are coming soon to the military retirement system.
The Federal Retirement Thrift Investment Board (FRTIB), the agency that administers the TSP, has been preparing and working with individual military services to prepare and train eligible service members on their options.
But the FRTIB’s Sept. 11 proposed rule offered more specific details about how the agency will implement the new blended retirement system (BRS) — and exactly who is eligible and when they’ll receive their first contributions.
Generally, the new plan moves military members from a retirement system that mostly relied on a vested defined benefit plan to one that includes a reduced defined benefit plan with greater TSP benefits, continuation pay and some lump-sum options.
“Blended retirement” incorporates four major changes to the current retirement system for uniformed military...."
Sep 15, 2017
An Overview of the New Blended Retirement System
Mar 7, 2017
USAA Military Retirement Comparison Tool Launched
"...USAA's Military Retirement Comparison Tool (MRCT) is now available to all service members in response to the U.S. Department of Defense (DOD) transition from the current military retirement plan to the new Blended Retirement System (BRS), which goes into effect on Jan. 1, 2018. USAA launched the tool to help service members make an informed decision on the financial implications specific to their retirement situation.
The MRCT includes personalization based on five factors:
- Active duty vs. National Guard / Reserve
- Pay grade: Officer / Enlisted / Warrant Officer
- Years of service
- Years remaining until separation or retirement from the military
- Anticipated number of credited military points at the time of National Guard / Reserve retirement..."
Read more at Yahoo! Finance
Feb 15, 2017
Study Infers Blended Retirement Won’t Hurt Retirees or Force
"...A new study commissioned by the Marine Corps concludes that the new Blended Retirement System won’t endanger force retention under any reasonable set of economic and behavioral assumptions.
It also suggests that young career-minded service members who opt into the BRS to get government matching of their Thrift Savings Plan contributions will still have potential career retirement benefits that most civilian peers would envy.
As the Defense Department last week launched a new BRS “Opt-In Course” to educate members being offered the chance in 2018 to choose the BRS, the think tank CNA released a report on how the plan would affect Marine Corps force objectives as well as the lifetime take-home income of career personnel.
The report has a 17-word title, 10 co-authors and can be read online at: http://bit.ly/2kMQfp1..."
Feb 8, 2017
Sizable Changes in New Military Retirement Reform
"...Significant changes are underway in the retirement system for military personnel.
The Fiscal Year 2016 Nation Defense Authorization Act authorized creation of a new retirement system. It is similar to the FERS system for federal employees.
The new military retirement plan has a smaller pension but has added a defined contribution to the Thrift Savings Plan (TSP) account. This new system will go into effect on January 1, 2018..."
Feb 4, 2017
DoD Moving to Implement New Retirement System
"...The Defense Department started to move this week into the implementation phase of the new military retirement system Congress ordered it to set up just over a year ago, including through an exhaustive education campaign designed to make sure service members understand how the new system works.
DoD has been rolling out training materials for military leaders and financial managers since last June. But on Tuesday, officials started the training process for the roughly 2 million active-duty and reservist service members who stand to be affected by the changes, which will eventually replace the military’s cliff-vested retirement pension with a combination of defined benefits and government contributions into service members’ Thrift Savings Plan accounts..."
Read more at federalnewsradio.com
Feb 2, 2017
Troop Training Begins on New Blended Retirement System
"...Just one day after the launch of an online training program about the new Blended Retirement System, more than 1,000 service members had already logged in to start their courses, according to a defense official.
The training is available on Joint Knowledge Online for those with a common access card. But family members and others without a CAC can also take the course at Military OneSource.
No one can make the decision about the retirement system yet – eligible service members will be able to opt in to the new system between Jan. 1 and Dec. 31, 2018..."
Feb 5, 2015
Retirement Benefit Recommendations Will Take Time to Review
"...A plan to overhaul the military retirement system is gaining traction among some members of Congress, but most say it will take more time and hearings to digest a 300-page report released last week that called for major changes to retirement pay and health care benefits...
Congress has delayed a number of major personnel decisions over the past two years while awaiting the review, and with the report now in hand, they say they will digest it over the next few months.
Mr. McCain said he wants the report’s recommendations to be debated as part of the annual defense policy bill discussions, which will begin in May.
Members of the Military Compensation and Retirement Modernization Commission briefed Senate and House committees this week on their 15 recommendations to fix the military retirement and benefits system, including decreasing the annuity troops receive..."
Feb 15, 2013
Should Military Retiree Pay be Equal for All?
"...There was an interesting article in last week’s Washington Post concerning the unaffordability of the all-volunteer military. Some of what was written was not a surprise: the current retirement pay beginning at 50 percent for the rest of retired active duty service members lives as well as health care is under scrutiny or already changing...
Should benefits be equal for someone who has seen combat vs. someone who has only had an office or stable career in the military with no deployments?..."