2. The Blended Retirement System (BRS) blends the traditional, 20-year cliff-vested defined benefit annuity, similar to the existing Uniformed Services' legacy retirement systems, with a defined contribution plan that allows Service members to contribute to a Thrift Savings Plan (TSP) account with government automatic and matching contributions. | Make a plan, and do what is right for you. Retirement can feel like a long way away, especially if youve only just started your military career. VESTING Army cy22 request for continuation pay; Military pay and benefits website sponsored by. in Strategic Studies and International Relations from the Johns Hopkins School of Advanced International Studies (SAIS) and recently graduated from the Russian language program at the Defense Language Institute in Monterey, CA. And (2) is between 10 and no more than 12 years of. Q: What should service members who enlisted after 2006 but before Jan. 1, 2018 know about the BRS? JOIN THE UNIFORMED SERVICES ON OR AFTER JAN. 1, 2018? Q: What about the third part the annuity? More information about education benefits offered by VA is available at the official U.S. government Web site at www.benefits.va.gov/gibill. The appearance of external hyperlinks does not constitute endorsement by the United States Army Reserve of the linked web sites, or the information, products or services contained therein. After completion of two years of service, you become vested, so if you leave the military, your entire TSP account goes with you. Brs includes a continuation pay provision as a way to encourage service members tocontinue serving in the uniformed services. Continuation Pay Service members enrolled in the Blended Retirement System (BRS) may be eligible to receive a one-time, mid- career bonus payment in exchange for an agreement to perform. That means the following rates will apply for 2022: It is targeted at the mid-career mark, payable between completion of eight years of service, but before completion of 12 years of service (calculated from a Service member's Pay Entry Base Date). assistant secretary of the army for manpower and reserve affairs memorandum, subject: blended retirement system (brs) continuation pay (cp) - calendar year 2021 (cy21) (jan 19. If you have questions about Veteran programs offered through or by the Dept. Visit http://militarypay.defense.gov/BlendedRetirment for the latest published rates. If you are otherwise not in good standing currently, but have 4 years, you will be able to contract for BRS. Click here for more information. No matter where you serve or live, free and confidential help is available. Brs fact sheets eligibility defined contribution defined benefit continuation pay lump sum option continuation pay cy2022 rates cy2021 rates cy2020 rates cy2019 rates. The BRS annuity is close to the legacy retirement formula, which uses 2.5% as the multiplier. Continuation pay is a direct cash payout,. Contact. | Data collected is used to document a Soldier's additional obligated service period; the Continuation Pay rate for continued service; to explain the conditions of the entitlement; and to document a Soldier's formal acknowledgment of the incentive obligations. At the time of retired pay eligibility, Service members may choose to receive their full monthly retired pay or request a reduced monthly retired pay along with a lump sum payment of 25 or 50 percent. Automatic and matching contributions continue through the, end of the pay period during which you reach 26 years of, SERVICE CONTRIBUTIONS TO YOUR ACCOUNT GRAPHIC GOES HERE, Continuation pay and other specialty pay, bonuses and incentives can be invested along with basic pay in your TSP account, up to the annual maximum allowed by the IRS. Continuation Pay (Blended Retirement System) Request Form (CAC required): https://www.milsuite.mil/book/community/spaces/apf/s1net/retirement-services/blended-retirement. . Access the MyArmyBenefits calculator to calculate your retired pay under the Final Pay, High-36 and BRS Retired Pay Plans: https://myarmybenefits.us.army.mil/Benefit-Calculators/Retirement, Access the MyArmyBenefits Blended Retirement Calculator: https://myarmybenefits.us.army.mil/Benefit-Calculators/BRS-Comparison-Calculator. You can also choose to have the data show in todays dollars or future amounts. This is the BRS Pension column series, which reflects your monthly payments until you reach the age at which youll start withdrawing from your TSP account, which defaults to 67 years old. The brs continuation pay rates for 2020 are nearly identical across each of the services. Enter your information to join our mailing list. This site is solely for testing and approving site pages before they are released to the general public. That means your TSP account has a real dollar amount, just like a checking or savings account. The Blended Retirement System went into effect Jan. 1, 2018. If you reach 20 years of service, you will still receive a base pay out of 2% of your time in service at your rank in which you retired in addition to the value of your TSP. The Blended Retirement System (BRS) Continuation Pay Fact Sheet: https://militarypay.defense.gov/Portals/3/Documents/BlendedRetirementDocuments/Fact%20Sheet-Continuation%20Pay.pdf, https://militarypay.defense.gov/BlendedRetirement/, Continuation Pay (Blended Retirement System) Request Form (CAC required): https://www.milsuite.mil/book/community/spaces/apf/s1net/retirement-services/blended-retirement, Continuation Pay Financial Literacy resources:https://www.financialfrontline.org/soldier/continuation-pay/, Index In order to qualify for continuation pay, the servicemember must be enrolled in the Blended Retirement System and have completed between eight and 12 years of service. Once youre done, press Continue to see the results. milSuite | Login Each of these tabs will contain different information, so make sure you browse through all four for a complete picture. Didn't see it on the FAQ page. This system connects Military, DoD Civilian, and DoD Contractor . Will the DOD match my contributions? This must be completed no later than 30 days prior to hitting the 12-year mark. The brs continuation pay rates for 2020 are nearly identical across each of the services. And, while their annuity payments will generally be larger than those calculated under the BRS, those in the legacy system must serve for at least 20 years to receive a retirement benefit, or they risk receiving nothing when they leave. Continuation pay is a direct cash payout, like a. PDF Department of the Army Letterhead - Military Compensation All Rights Reserved. Yes, you can. Monthly Retired Pay: Monthly retired pay under the Blended Retirement System will be calculated by multiplying the years of credible service by 2%, times the average of the Service members highest 36 months of basic pay, after 20 or more years of service. A. BRS includes a Continuation Pay provision as a way to encourage Service members to continue serving in the Uniformed Services. Members receive continuation pay in return for additional obligated service. Information and support for service members and their families. BRS Continuation Pay modernizing Soldier care Three Creeks Media, LLC 2023. Blended Retirement System (BRS) and are eligible for Continuation Pay (CP). Continuation Pay is a direct cash payout to eligible members who have completed at least 8, but not more than 12 years of service. Active component service members (including Active Guard Reserve (AGR) and Full Time Support (FTS)) enrolled in the BRS will be eligible for a cash incentive of 2.5 to 13 times their regular monthly basic pay. The content offered on The Military Wallet is for general informational purposes only and may not be relevant to any consumers specific situation, this content should not be construed as legal or financial advice. If interested in additional information about BRS and Continuation Pay, visit the following sites: information@HFAlliance.com p: 414.350.6638, MyMilitaryBenefits is not affiliated with the Department of Defense or Department of Veterans Affairs, GI Bill is a registered trademark of the U.S. Department of Veterans Affairs (VA). However, its wise to consider how saving and investing this bucket of cash could help you and your family down the road. What is continuation pay? Q: Why did the military retirement system change? Remember, the longer you stay in, the longer you can contribute to your TSP account. Continuation pay is one of the main pillars of the U.S. militarys Blended Retirement System, which went into effect Jan. 1, 2018, and remains the retirement plan for all new servicemembers. As with other specialty pay and bonuses, continuation pay can be diverted as an investment into a TSP, bearing in mind the IRSs maximum amounts allowed annually. You just wont access it before you turn 59 unless you want to pay hefty tax penalties. All links are provided consistent with the mission of this Web site. Continuation Pay BRS also includes a mid-career continuation pay at about 12 years of service, as a further incentive to convince military members to remain in the service until they. If you opted into the BRS during calendar year 2018, you can immediately elect to contribute any whole percentage of your pay, up to the annual limits set by the Internal Revenue Service (IRS). To announce the new increased pay rate for continuation pay (cp) offered to blended retirement system (brs) participants who complete 12 years of service. of Veterans Affairs, please visit their website at va.gov. Instead of being calculated at 2.5 percent times the average of your highest 36 months of basic pay, (or your last month of basic pay, if you are under the older, final-pay system), your monthly retired pay will be calculated with a 2% multiplier. Notice how your pension returns to a full payment later in the chart. This change will not affect the contribution rates in place for BRS participants who were automatically enrolled prior to 1 October 2020 and did not terminate their contributions. If you leave, it goes with you. Q: How did the military retirement system change? Continuation pay is a mid-career bonus payment given in exchange. The soldier then has the option to invest their incentive into their TSP to increase their retirement fund, save it or spend the money in any way that financially benefits them best. The objective of continuation pay is to offer a financial incentive to remain in the army in exchange for committing to additional years of service. Being vested means having ownership. PDF ENTITLEMENT TO CONTINUATION PAY - usalearning.gov View calling options. Continuation pay is a direct cash payout, like a bonus, available to Service members enrolled in the Blended Retirement System (BRS). Army CY22 Request for Continuation Pay. Soldiers who will eventually convert back into citizensand ideally use those funds to better support themselves, their families, or their communities.. That means about 81% of service members leave with no benefit. Keep in mind that continuation pay can be received in addition to other benefits, such as retention bonuses or other career field-specific incentives. Army Continuation Pay Question : r/MilitaryFinance - Reddit Military Compensation > Blended Retirement > Fact or Fiction The latest technologies high quality electronic pubs and forms view U.S. Army Regulations and DA Forms. News. See all of your accounts in one secure place, including your Thrift Savings Plan. What should Soldiers know about this benefit? Not every servicemember is eligible to receive this payout. The content on The Military Wallet is produced by Three Creeks Media, its partners, affiliates and contractors, any opinions or statements on The Military Wallet should not be attributed to the Dept. Additionally, soldiers should know that if they entered service before December 31, 2017, and did not opt into the program, they no longer have the choice to do so. One of the major changes in the military's new Blended Retirement System (BRS) is the introduction of continuation pay. And (2) is between 10 and no more than 12. About the Call Center. A. BRS includes a Continuation Pay provision as a way to encourage Service members to continue serving in the Uniformed Services. ago Make sure you ask this question to the actual DFAS finance office on your post. | You might also see a Continuation Pay spike on top of your basic pay. Army Publishing Directorate - Principal Officials' Guidance Continuation pay is calculated by multiplying your monthly basic pay by the applicable multiplier for your branch and status. The decision to elect a lump sum at retirementis entirely up to you. CY2022. Tables beneath the main bar chart discuss the final dollar amounts in more detail. BRS continuation pay timeline/action : r/MilitaryFinance - Reddit Servicemembers have the option of receiving the payout in a single lump sum or in a series of equal installments that are allocated over a period of time, but not for longer than four years. That means the following rates will apply for 2022: TAXES. You may need to make a lot of guesses about your future service career while youre filling out the information forthe BRS calculator, and you may not have all the answers. However, if you decide to take a lump sum of either 25% or 50% when you retire, this section shows you how your retirement annuity would change. a. RA and Active Guard Reserve (AGR). The BRS continuation pay rates for 2020 are nearly identical across each of the Services. Use your preferred relay service, or dial 711 then 988. And (2) is between 10 and no more than 12 years of. Your continuation pay is similar to all specialty compensation, pay, and bonuses, which can be invested in your TSP, up to the annual TSP contribution limit, which is $19,500 in 2020. Accessibility/Section 508 In short, continuation pay is a bonus-like payment given mid-career, for those enrolled in the BRS, in exchange for adding more years to their service. In exchange for continuation pay, servicemembers must commit to serving an additional three or four years. That means the following rates will apply for 2022: Cant speak for the army, but for the marine corps, all that is required is for you to fill out a blended retirement system continuation pay statement of understanding form and. If a ranking or list has a company noted to be a partner the indicated company is a corporate affiliate of The Military Wallet. Find out more about BRS at https://militarypay.defense.gov/blendedretirement. The BRS continuation pay rates for 2020 are nearly identical across each of the Services. This is the percentage of your basic pay that you receive for each year of service. Payment Options for Continuation Pay Payment Options: Members can choose between a lump sum payment or spread the bonus in equal installments over a two to four year period according to the chart below. Implementation of 5% Automatic Enrollment Percentage for Thrift Savings Plan Participants. Members receive continuation pay in return for additional obligated service. Brs fact sheets eligibility defined contribution defined benefit continuation pay lump sum option continuation pay cy2022 rates cy2021 rates cy2020 rates cy2019 rates. Leader Training to Introduce the Blended Retirement System (BRS) For the Uniformed Services (.5 hr) https://jkodirect.jten.mil/Atlas2/page/coi/externalCourseAccess.jsf?v=1597693001325&course_prefix=J3O&course_number=P-US1330, Blended Retirement System (BRS) OPT-IN Course (2 hrs) https://jkodirect.jten.mil/Atlas2/page/coi/externalCourseAccess.jsf?v=1597693048691&course_prefix=J3O&course_number=P-US1332, For more detailed information on retired pay, visit the nearest Army Retirement Services Office (RSO): https://soldierforlife.army.mil/Retirement/contact-us, Army Human Resources Command My Record Portal: https://www.hrcapps.army.mil/portal/, Defense Finance and Accounting Service site: https://www.dfas.mil, DoD Blended Retirement Resources:https://militarypay.defense.gov/BlendedRetirement/, Index Continuation pay is a direct cash payout, like a bonus, available to service members enrolled in the brs. If youd like to talk to someone who knows a ton about how to save for the future while still living in the here-and-now, Military OneSource offers free financial counseling for all active-duty service members and their immediate families. | Q: How do changes in the retirement system benefit the DOD? Continuation. Spreading out payments across a number of years could be a good idea for those seeking to pay less in taxes overall. Essentially if you opted into the BRS and will be serving to 16 years due to pre-existing obligations or career plans/aspirations, you can take the continuation pay at 12 years. To announce the new increased pay rate for continuation pay (cp) offered to blended retirement system (brs) participants who complete 12 years of service. Top Issues. | We are here to help members of the military with their personal finance questions. The VA Home Loan is one of the only home loans available today with no down payment required. o CY 24 Selected Reserve continuation pay is half of the monthly basic pay. The National Defense Authorization Act of Fiscal Year 2016, includes a continuation pay provision as a way to encourage service members to continue serving in the Uniformed Services. PDF Continuation Pay - Military Compensation A: All service members who joined beginning in January 2018 are enrolled into theTSP.
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