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The U.S. military is a launching a new mission this year, one that aims to ensure more of those who serve are also saving for their financial future.
Pentagon officials are calling the move the biggest update to the military's pension and benefits since World War II.
The Fiscal Year 2016 Nation Defense Authorization Act created a new military retirement system that blends the traditional legacy retirement pension with a defined contribution to Service members’ Thrift Savings Plan account. The new Blended Retirement System goes into effect on January 1, 2018.
All members serving as of December 31, 2017, are grandfathered under the legacy retirement system. No one currently-serving will be automatically switched to the Blended Retirement System.
Though they are grandfathered under the legacy retirement system, Active Component Service members with fewer than 12 years since their Pay Entry Base Date, and Reserve Component Service members who have accrued fewer than 4,320 retirement points as of December 31, 2017, will have the option to opt into the Blended Retirement System. The opt-in/election period for the Blended Retirement System begins January 1, 2018, and concludes on December 31, 2018.
All Service members who enter the military on or after January 1, 2018, will automatically be enrolled in BRS.
The BRS opt-in period is now open, to opt-in visit DFAS myPay (Army, Navy, and Air Force), Marine Online (Marine Corps), or Direct Access (Coast Guard or NOAA)
Active duty members I have talked to are looking forward to it...
... dramatic changes to its retirement system will impact millions of current and future service members
Are there 'millions' of US servicemembers serving today?
Exaggerate much?
Quote:
... The U.S. military is a launching a new mission this year, one that aims to ensure more of those who serve are also saving for their financial future.
Pentagon officials are calling the move the biggest update to the military's pension and benefits since World War II.
United States Army 541,291
United States Marine Corps 195,338
United States Navy 317,237
United States Air Force 333,772
United States Coast Guard 42,357
Total Active 1,429,995
Army National Guard of the United States 342,000
United States Army Reserve 198,000
United States Marine Corps Reserve 38,900
United States Navy Reserve 57,400
Air National Guard of the United States 105,500
United States Air Force Reserve 69,200
United States Coast Guard Reserve 8,100
It is a good system for active duty service members but I am not convinced that it will be as good for reservists and the national guard soldiers. It is highly dependent upon being able to use TSP as a large portion of the retirement and the only way to contribute to TSP is through payroll deductions and a reservists paycheck is not very big. However it is possible to roll over IRA money into TSP so it isn't a complete loss. I am thankful I am not in the accumulation phase anymore.
The Fiscal Year 2016 Nation Defense Authorization Act created a new military retirement system that blends the traditional legacy retirement pension with a defined contribution to Service members’ Thrift Savings Plan account. The new Blended Retirement System goes into effect on January 1, 2018.
All members serving as of December 31, 2017, are grandfathered under the legacy retirement system. No one currently-serving will be automatically switched to the Blended Retirement System.
Though they are grandfathered under the legacy retirement system, Active Component Service members with fewer than 12 years since their Pay Entry Base Date, and Reserve Component Service members who have accrued fewer than 4,320 retirement points as of December 31, 2017, will have the option to opt into the Blended Retirement System. The opt-in/election period for the Blended Retirement System begins January 1, 2018, and concludes on December 31, 2018.
All Service members who enter the military on or after January 1, 2018, will automatically be enrolled in BRS.
The BRS opt-in period is now open, to opt-in visit DFAS myPay (Army, Navy, and Air Force), Marine Online (Marine Corps), or Direct Access (Coast Guard or NOAA)
Active duty members I have talked to are looking forward to it...
They are looking forward to having less security in their retirement?
How is this better than a pension?
It's not. This is just a reflection of where society is headed. The previous generation essentially stole everything and left the new generation with a pile of crap.
They are looking forward to having less security in their retirement?
How is this better than a pension?
It's not. This is just a reflection of where society is headed. The previous generation essentially stole everything and left the new generation with a pile of crap.
That is the "Official Page from Department of Defense: http://militarypay.defense.gov/BlendedRetirement/"....
Either you understand and grasp it, or you do not...
Also a follow up. I don't think it is a bad direction. In fact I like the direction it is going but the key component of the BRS is TSP. TSP is a 401k style savings program that is a payroll deduction and the system will provide a match. When it comes to the savings portion a reservists paycheck is too small to really make a difference. They also do not gain enough points over time to make a difference in their retirement pension either. I don't think that they paid enough attention to part time soldiers. Now I am not saying that they deserve an active duty pension but they do deserve to be considered more than just a part time soldier when they are asked to fill in the gaps that are left by a smaller active duty force.
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