BRS vs High-36 Retirement: Which Is Better?

A side-by-side comparison of the Blended Retirement System (BRS) and the legacy High-36 retirement plan. See the key differences and an example scenario for an E-7 at 20 years of service.

BRS vs High-36 Retirement Blended Retirement System vs Legacy High-36: Key Differences Blended Retirement (BRS) High-36 (Legacy) VS RETIREMENT MULTIPLIER 2.0% per year of service 2.5% per year of service TSP GOVERNMENT MATCH ✓ Yes — Up to 5% 1% automatic + up to 4% matching Fully vested after 2 years of service ✗ No Match Members can still contribute to TSP but receive no government matching CONTINUATION PAY (MID-CAREER BONUS) ✓ Yes — 2.5x to 13x monthly pay Offered between 8-12 years of service ✗ Not Available No mid-career continuation bonus LUMP SUM RETIREMENT OPTION ✓ 25% or 50% lump sum Trade pension for upfront payment until age 67 ✗ Not Available Full annuity only, no lump sum option EXAMPLE: E-7 AT 20 YEARS (High-36 avg base pay: $5,400/mo) Monthly Pension 2.0% x 20 yrs = 40% of high-36 avg $2,160/mo + TSP match adds ~$180K+ over career (assumes 5% contribution, 7% growth) Monthly Pension 2.5% x 20 yrs = 50% of high-36 avg $2,700/mo No TSP match. Member-only contributions.   KEY TAKEAWAY: High-36 pays $540/mo more in pension, but BRS provides TSP match worth $180K+ and mid-career continuation pay. VetCalc.org Free Military & Veteran Benefit Calculators • vetcalc.org/calculators/military-retirement/
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Understanding the Two Retirement Systems

The military currently has two active retirement systems. The Blended Retirement System (BRS) became the default for all new service members joining on or after January 1, 2018. Members who joined before that date were given a one-time option to switch from the legacy High-36 system to BRS during 2018. Those who did not opt in remain under the High-36 plan. Understanding the tradeoffs is critical for long-term financial planning.

The Multiplier Difference

The most visible difference is the retirement multiplier. High-36 uses 2.5% per year of service, so a 20-year career yields a pension worth 50% of the average of the highest 36 months of base pay. BRS uses a smaller 2.0% multiplier, meaning the same 20-year career produces a pension worth 40% of the high-36 average. That 10-percentage-point gap translates to real money every month for the rest of the retiree's life.

Why BRS Might Still Win

The BRS offsets its lower pension multiplier with three additional benefits. First, the government automatically contributes 1% of base pay to your Thrift Savings Plan (TSP) and matches up to an additional 4%, giving you up to 5% of base pay in TSP contributions that you would not receive under High-36. Over a 20-year career with consistent contributions and average market returns, this TSP match can accumulate to well over $180,000. Second, BRS offers continuation pay, a one-time bonus of 2.5 to 13 times monthly base pay offered between 8 and 12 years of service in exchange for an additional service commitment. Third, BRS provides a lump-sum retirement option where you can take 25% or 50% of your projected pension as an upfront payment at retirement, receiving reduced pension payments until age 67.

Which Is Better for You?

For service members certain they will serve at least 20 years, High-36 generally provides more total retirement income over a lifetime. However, since roughly 81% of military members separate before reaching 20 years, the BRS is designed to provide retirement benefits to a much larger portion of the force through the TSP match, which vests after just 2 years of service. Use the Military Retirement Calculator to model your specific scenario with actual numbers.

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