A major mistake involving retirement funds was uncovered in early 2025, potentially affecting thousands of servicemembers. According to Military Times, more than 13,000 Air Force Reservists and Air National Guardsmen were not properly enrolled in the Blended Retirement System (BRS). The mistake occurred due to an error made during the enrollment process regarding manual data entry processes and is not indicative of a larger Defense Joint Military Pay System problem.  

The Blended Retirement Plan (BRS), in effect for members of the Armed Forces since 2018, is designed to help servicemembers prepare financially for their future, whether or not they serve the full 20 years and qualify for retirement. Before the BRS was implemented, less than 20% of servicemembers served long enough to earn military retired pay. With the BRS, anyone who has served at least two years is able to obtain government retirement benefits and up to 5% Thrift Savings Plan (TSP) matching.  

Defense Finance and Accounting Service (DFAS) officials are working with Air Force officials to ensure that any servicemembers who were not properly enrolled in BRS since 2018 are retroactively compensated and will receive matching TSP contributions and earnings retrospective to the date they should have been enrolled. Due to the volume and complexity of individual cases, it is expected to take eight months to a year for all the calculations to be completed and for the mistake to be fully rectified.   

This situation highlights the importance of financial education and preparedness among servicemembers and Veterans. There are a few key lessons to take away from this issue that can enhance your financial decision-making in the future.  

1. Know what you are entitled to. The BRS blunder may not have been revealed without servicemembers noticing the mistake. By regularly checking your Leave and Earnings Statements, you can identify and address any issues quickly. Stay educated on the benefits you have earned and monitor what you are receiving to ensure accuracy.  
2. Create an emergency fund. Mistakes like this, along with other unexpected financial burdens, can happen anytime. It’s essential to have savings in place to tackle financial obstacles without causing yourself long-term distress. You may choose to save money by investing in stocks, delegating funds to a high-yield savings account, or similar savings strategies. Decide what works best for your individual budgeting needs and be consistent with your plan to proactively avoid economic hardship.  
3. Prioritize debt reduction. Financial strain will only be further exacerbated if you have debt that begins to pile up. Prioritizing paying off your high-interest debt is not only a smart move, but is particularly important for when unexpected financial obstacles arise.  

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