If you serve in the U.S. military, your retirement falls under one of two systems: the Blended Retirement System (BRS) or the legacy High-3. They reward different things — High-3 leans on a bigger pension, while BRS blends a smaller pension with a government-matched Thrift Savings Plan (TSP). Here's how they actually differ and how to think about which is better for you.
In short, BRS trades about 20% of the pension multiplier for free, portable retirement savings you keep even if you separate before 20 years.
Anyone who joined the military on or after January 1, 2018 is automatically in BRS. Service members already in before 2018 stayed under High-3 unless they were eligible and chose to opt into BRS during the 2018 opt-in window. If you're not sure, your branch's pay system or myPay records show your retirement plan.
Both systems use the same "High-3" definition: the average of your highest 36 months of basic pay (almost always your last three years). The only difference in the formula is the multiplier.
| Years of service | High-3 pension (2.5%) | BRS pension (2.0%) |
|---|---|---|
| 20 years | 50% of High-3 | 40% of High-3 |
| 24 years | 60% of High-3 | 48% of High-3 |
| 30 years | 75% of High-3 | 60% of High-3 |
Example: with a High-3 average of $72,000, a 20-year retiree gets $36,000/yr under High-3 versus $28,800/yr under BRS — a $7,200/yr difference, for life.
This is the heart of BRS. The government contributes to your TSP:
Contribute 5% of your basic pay and you receive the full 5% government contribution (1% automatic + 4% match). That's an immediate, guaranteed return on your money — which is why "always contribute at least 5%" is the single most important BRS rule. Under High-3, there is no match at all; you can contribute to the TSP, but the government adds nothing.
Your own contributions and the government's matching are yours immediately. The automatic 1% contributions generally vest after two years of service.
Continuation pay is a mid-career cash bonus (typically around the 8–12 year mark) in exchange for additional obligated service — a multiple of your monthly basic pay set by your branch. The lump-sum option lets BRS retirees take 25% or 50% of the discounted value of their pension up front in exchange for reduced monthly checks until full Social Security retirement age. Both can tilt the math toward BRS depending on your choices.
You usually can't switch — your system is set — so the real question is how to optimize the one you're in. But conceptually:
Related reading: How the TSP 5% match works · Roth vs. Traditional TSP