We’re now nearly three months into the open enrollment period for the new Blended Retirement System (BRS), which went into effect for new military members on January 1, 2018. While you have until the end of 2018 decide whether you’ll opt into the BRS or stay with the legacy retirement system, time is of the essence. Each month you wait could mean lost matching funds if you end up going with the BRS. However, making a decision like this one isn’t always easy and should never be rushed.
On 1 January 2018, everyone entering the military will be part of the new “Blended Retirement System” (BRS), which includes a 401(k)-like defined contribution plan that vests at two years, provides a continuation bonus around 12 years of service, and then establishes a defined benefit pension at retirement after 20, or more, years.
Earlier this week, on March 20th, the Military Times published an insurance guide for people looking to know more about the upcoming changes to the military retirement system. In the article, "Insurance Guide 2017: How the new retirement system may change your insurance plans," AAFMAA COO Mike Meese summarized the changes, and some of the effects that the new system will have on the financial security of the military families who choose to enroll.