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.
Why did the Nation adopt a New "Blended" Retirement System, and what exactly is the "Blended" Retirement System (BRS)? Why do they call it "Blended?" Who is covered by the new retirement system, and who has a choice? What are MY choices? How does the choice work for reservists? Read the full article to find out the answers to these questions, and more.