UPDATED/VERIFIED AS OF MAY 19, 2023
The Fiscal Year 2016 National Defense Authorization Act (FY16 NDAA) made significant changes to the military retirement system by creating the Blended Retirement System (BRS), and further mandated financial literacy touchpoint training requirements. The desired end-state is a financial education program that enables Service members and family members to make informed financial decisions, ensuring financial readiness throughout their military service and as they transition to civilian life.
Currently, pursuant to the FY16 NDAA, section 992 of Title 10, U.S. Code, Department of Defense Instruction (DoDI) 1322.34 ("Financial Readiness of Service Members"), and NAVADMIN 201/22 ("Fiscal Year 2023 General Military Requirements"), Sailors are provided financial readiness training at personal and professional touchpoints across the military lifecycle, beginning with recruit and officer accessions training and continuing throughout a Service member's career and transition to civilian life. The first touchpoint is "Initial Entry Training" whereby financial readiness training is provided at Boot Camp for enlisted Sailors and during the officer accessions training pipeline for officers. The other touchpoints are as follows:
Navy e-Learning (NeL) financial readiness touchpoint training courses have been developed that address all of the mandatory financial literacy touchpoints, minus the “Initial Entry Training” and “Transition” touchpoints as these two touchpoints are addressed during the officer/enlisted accession pipelines and the Transition Assistance Program (TAP) class (also available online at https://tapevents.mil/courses), respectively. The touchpoint training courses are available for enrollment on NeL. To easily find these courses on NeL, search for the title “touchpoint” under the Course Catalog tab. Additionally, the MyNavy Financial Literacy mobile app has been updated to host the NeL touchpoint training courses, and allows Sailors to submit course completion certificates directly to their Electronic Training Jacket (ETJ). In the event in-person training is preferred, corresponding in-person financial readiness touchpoint training courses are available, and can be provided by a Command Financial Specialist (CFS), a Fleet and Family Support Center Personal Financial Manager, or a DoD-contracted Personal Financial Counselor (assigned to some Navy Reserve Centers (NRCs)). In-person training resources and information can be found on the GMT webpage, and on the Department of Defense Office of Financial Readiness (FINRED) website's Navy Resources webpage. Once in-person training is completed, ensure that training is recorded in a member's Electronic Training Jacket (ETJ) by documenting in FLTMPS via a Learning Event Completion Form (LECF).
- First permanent duty station
- Permanent Change of Station (O3 and below, E4 and below)
- Promotion (O4 and below, E5 and below)
- Vesting in TSP (under BRS upon completion of 2 Years of Service)
- Entitlement to Continuation Pay (under BRS)
- Birth of First Child
- Disabling Sickness or Condition
- Pre- and Post- deployment
- Leadership training
- Transition of the Service member from AC to RC, separation or retirement
Sailors will receive a Navy Standard Integrated Personnel System (NSIPS) email notification upon reaching a financial literacy touchpoint. It is important to ensure that you maintain an up-to-date email address in NSIPS.
MyNAVY FINANCIAL LITERACY MOBILE APPLICATION
Revised for 2022, the MyNavy Financial Literacy application provides Navy personnel with information to help them achieve their personal financial goals and meet the Navy’s financial literacy education requirements. This app is available for download to Apple iOS and Google Android mobile devices and is divided into the following sections for ease of use:
- Financial Readiness Touchpoint Training Courses offers access to twelve mandatory courses and allows Service members to submit course completion certificates to their Electronic Training Jacket (ETJ).
- Financial Literacy Resources includes a link to the Military Leader’s Economic Security Toolkit, information on COVID-19 Financial Resources, Banking and Financial Management, Consumer Awareness, Car Buying Basics, Spending Plans, Credit and Debt, Investments and Thrift Savings Plan (TSP), and Insurance.
- Blended Retirement System (BRS) Resources offers various types of info, links and videos, and provides information about the Navy Standard Integrated Personnel System (NSIPS), which allows Service members to view their BRS status and elect Continuation Pay.
- Future Sailor Financial Readiness Guide helps future Sailors financially prepare before leaving for Boot Camp. Provides information on banking and bill payments, life insurance and beneficiaries, education and retirement benefits, and information for military spouses.
- Debt Destroyer® Workshop offers proven techniques to overcome high interest rate debt and get on track to a more secure financial future.
- Calculators provide a comparison between the High-3 retirement plan and BRS, and estimates a Sailor’s retirement benefits under BRS, High-3, Final Pay and REDUX retirement plans.
BLENDED RETIREMENT SYSTEM (BRS)
BRS combines a defined benefit, like the legacy (High-3) retirement plan, with a defined contribution component (automatic plus matching contributions to a member’s Thrift Savings Plan (TSP) account) and continuation pay. BRS uses a 2.0% multiplier (vice the 2.5% used in the legacy retirement system) in calculating retired pay. Thus, a member who served 20 years would receive 40% of the average of the highest 36 months of basic pay, a TSP account that contained government and optional member contributions, as well as continuation pay at the mid-career point.
All Active Duty Service members, including Full-Time Support (FTS) personnel, whose Date Initially Entered Military Service (DIEMS) date was after 31 December 2005 or Reserve Component Service members with less than 4,320 retirement points as of 31 December 2017 had the choice of whether to stay with the legacy retirement system or opt-in to BRS via MyPay. The election window for opt-in eligible members was from 1 January 2018 until 31 December 2018. If an opt-in eligible member enrolled in BRS, this election was irrevocable. Opt-in eligible members who did not choose to enroll in BRS during the election window remained in the legacy retirement system. All members with a DIEMS date on or after 1 January 2018 are automatically enrolled in BRS.
Per NAVADMIN 280/18, only those Sailors that have been granted an extension in line with MILPERSMAN 1810-080 are allowed to opt-in after 31 December 2018. An exception are midshipmen who signed a contract prior to 31 December 2017 as they are grandfathered under the legacy retirement system. As such, because these midshipmen have less than 12 years of service, they are eligible to opt-in to BRS. Upon being placed on active duty and entering an active pay status, the new officer will have 30 days to opt-in to BRS if they so choose. This may occur shortly after commissioning or not until the new officer reaches his or her initial assignment.
BRS Opt-In eligible members are required to complete the BRS Opt-In course(available on Joint Knowledge Online (JKO)). BRS Opt-In issues can be sent to the MyNavy Career Center (MNCC) at: firstname.lastname@example.org
Department of Defense, Military Compensation: The Uniformed Services Blended Retirement System, contains information concerning the Blended Retirement System and available resources.
BRS Frequently Asked Questions (28Mar18)
BRS Comparison Calculator