Military Retirement: The Blended Retirement System & TSP
Updated July 2026
Almost everyone who joined in 2018 or later is in the Blended Retirement System (BRS). It "blends" a traditional pension with a 401(k)-style Thrift Savings Plan match, so you build retirement savings even if you do not serve a full 20 years. Here is how each piece works.
The pension (if you serve 20+ years)
If you retire with at least 20 years of service, you get a lifetime monthly pension. Under BRS it is calculated as 2.0% × your years of service × the average of your highest 36 months of basic pay. So 20 years yields about 40% of your high-3 pay. (The older High-3 system used a 2.5% multiplier but had no TSP match.)
The TSP match (from day one)
The Thrift Savings Plan is the military's low-cost retirement investment account. Under BRS the government automatically contributes 1% of your base pay, and matches your own contributions up to another 4% — so contributing 5% yourself gets you a 5% match, for 10% total going in. This is yours to keep even if you serve only a few years.
Vesting — what you keep if you leave early
Your own contributions and the government's matching contributions are yours immediately. The automatic 1% government contribution vests after you complete 2 years of service. After that, your entire TSP balance goes with you when you separate.
Continuation pay
Around your 12-year mark, BRS offers a mid-career cash bonus called continuation pay — typically 2.5 to 13 times your monthly basic pay — in exchange for a few more years of service. Rates are set each year and vary by branch.
Guard and Reserve retirement works differently
If you serve in the National Guard or Reserve, your pension is points-based, not simply years-based. You need 20 "good years" (each year you earn at least 50 retirement points from drills, active duty, and other service). Your points are converted to an equivalent number of years, then run through the same 2.0% BRS formula.
The other big difference: Reserve retired pay usually starts at age 60, not immediately at 20 years. That age can be reduced below 60 — by 3 months for every cumulative 90 days you serve on qualifying active duty in a fiscal year (for service after January 28, 2008). The TSP match and continuation pay under BRS apply to Guard and Reserve members too.
Should you contribute more than 5%?
The 5% match is free money — always contribute at least that. Many members contribute more (up to IRS limits), often into low-cost index funds, to build a larger nest egg. Use the DoD's BRS calculator and our TSP and retirement tools to model it.
Frequently asked questions
What is the BRS pension multiplier?
Under the Blended Retirement System the pension multiplier is 2.0% per year of service, applied to the average of your highest 36 months of basic pay. Twenty years of service produces about 40% of your high-3 pay for life.
How much does the military match in the TSP?
Under BRS, the government contributes an automatic 1% of your base pay and matches your contributions dollar-for-dollar up to the next 4% — so contributing 5% of your pay yields a 5% match, 10% total.
Do I keep my TSP if I don't serve 20 years?
Yes. Your own contributions and the matching contributions are yours immediately, and the automatic 1% vests after two years of service. Unlike the pension, the TSP is portable and goes with you when you leave.
What is continuation pay?
Continuation pay is a mid-career retention bonus under BRS, offered around the 12-year point, worth roughly 2.5 to 13 times your monthly basic pay in exchange for additional service. The exact multiplier is set annually and varies by branch.
When can Guard and Reserve members draw their pension?
Guard and Reserve retired pay usually begins at age 60 after 20 "good years" (years with at least 50 retirement points). The starting age can drop below 60 — by three months for each cumulative 90 days of qualifying active duty in a fiscal year served after January 28, 2008.