Reservist Magazine is the award-winning official publication of the United States Coast Guard Reserve. Quarterly issues include news and feature articles about the men and women who comprise America's premier national maritime safety and security
Issue link: https://uscgreservist.epubxp.com/i/709956
News From The Hill An ongoing series of articles that will provide you information on updated legislation, discuss policy changes, and clarify issues. The New Blended Retirement System The President signed the 2016 National Defense Authorization Act (NDAA) on November 25, 2015, which included a requirement for the uniformed Services to implement a new Blended Retirement System (BRS) that will become effective on January 1, 2018. The new system will extend new retirement savings options to the 81 percent of service members who historically have received no service related retirement benefit. The BRS applies to all the Uniformed Services (DOD, USCG, NOAA and USPHS). Anyone joining these services after January 1, 2018, will be covered under the new BRS. Service members with less than 12-years of active duty, or fewer than 4,320 retirement points for reservists, will have the choice to opt-in to the BRS during calendar year 2018 or remain under the current retirement plan. Those members with greater than 12-years of service, or 4,320 points, will be grandfathered under the current retirement system. The BRS will replace and modernize the current retirement benefit formula of 2.5 percent times the number of years served, times the average of the members highest 36 months of basic pay. For reservists, their years of service are calculated by dividing their total retirement points by 360. BRS consists of four components that distinctively combine to deliver a new blended annuity package categorized by "defined retirement pay benefit, automatic and matching contributions, continuation pay, and lump sum option." The defined BRS pay benefit formula will use a 2.0 percent per year multiplier of your basic pay in lieu of the 2.5 percent multiplier of your highest 36 months of basic pay under the current defined retirement benefit formula. This equates to 40 percent of basic pay at 20 years of service versus the current 50 percent of basic pay at 20 years of service under the current retirement system. Additionally, the CG will automatically contribute an amount Rese R vist Magazine t he M o R e Y ou k now 54 RESERVIST � Issue 3 • 2016