Hey folks, I’m backkkkkkkk!
I know it’s been quite some time since I posted on the blog. Between work, leave, and life it has just been difficult to knock out posts. But those of you who follow me on social media know I’m around a lot! I just haven’t created blog posts 😬
I have still been talking to readers, though. And today I decided I’m going to take one of the reader questions I received, and my answer to it, and turn it into a post. Why? Because it’s a very important topic for a lot of people in the military. Notably, it’s important for everybody who was eligible for the Blended Retirement System and didn’t switch during the 2018 opt-in period, but is now looking at potentially changing components.
There continues to be a lot of bad gouge out there about BRS. Heck, just recently I heard TWO people say BRS didn’t have a pension while speaking to large groups of people. Yikes. Somebody direct those people to my blog.
Anyway, I’m going to continuing spreading accurate information about BRS, with references, so those of you in the know can get the real info. And please, if you have friends and coworkers who are operating under false information about BRS, share my BRS page with them. We really need people to have the right information about this incredibly important military program.
Please note this post is not applicable to anybody whose first day of military service is 1 January 2018 or later. You are forced into BRS, as it is the only retirement plan available to you in the US military. It’s a good one, though, don’t worry. Read the posts on my BRS page to learn everything you want to know and more about BRS.
If you are a cadet commissioning after 1 Jan 18, you fall under different rules so read this post by my friend Kate instead.
Alright! Let’s get started.
Will people be forced into BRS if they switch components?
I am currently in the National Guard and thinking of switching to Reserves, until my Sergeant told me that I would lose my “legacy status” as far as retirement. Is that true? I’ve been in since 2006, got out for a year and then signed another 6 years. That enlistment will be up come November 2020. I’m looking at switching components and finishing my 20 in the Reserves. However seeing current political climate with the Blended Retirement. I don’t want to lose my 20 year retirement to a new system.
Any help in clearing up any misinformation would be greatly appreciated.
Uh, nope, your Sergeant is incorrect. You won’t lost any legacy status and you won’t be forced into BRS. The enrollment period is long over and everybody who was eligible to switch made their final decision in 2018. There are a few exceptions for things like people who left military service before 1 Dec 2018 and came back after 2 Dec 2018 but from what you’ve described none of them apply to you. Unless the Service Secretary decides to open up a new enrollment period (there aren’t even rumors of this) you CANNOT switch at this point. And the policy is extremely clear that nobody who served even one day of military service prior to 1 Jan 2018 will be forced into BRS.
But I won’t ask you to take my word for it. Here are a few ways you can verify for yourself that you won’t be forced into BRS. The blue titles are links to the official documents.
Blended Retirement System Policy Document:
- “All members of the Uniformed Services who initially entered military or uniformed service on or before December 31, 2017, are grandfathered under their legacy retirement plan and will not be automatically switched to the BRS.” (Attch 1 page 2)
- “All members of the Uniformed Services who have a Date of Initial Entry into Military Service (DIEMS) or Date of Initial Entry into Uniformed Services (DIEUS) on or before December 31, 2017, remain covered by their previous retirement plan until such time as they elect to enroll in the BRS, if eligible to do so in accordance with paragraphs 6.b.(2) through 6.b.(6).” (Attch 1 page 4)
- “A member of a Uniformed Service who qualifies to enroll in the BRS under any of the provisions outlined in paragraphs 6.b.(2) through 6.b.(6) may make the election to enroll on or after January 1, 2018, through December 31, 2018.” (Attch 1 page 16)
A Guide to the Uniformed Services BRS:
- “If you have a break in service, rejoin after the 2018 calendar year opt-in window and have fewer than 4,320 retirement points, you have 30 days to choose the BRS or remain in the legacy retirement system” (page 4)
BRS FAQs:
- Q1.3. When does the BRS take effect? Who is affected? A1.3. The BRS went into effect on January 1, 2018. New Service members, who join the Uniformed Services for the first time on or after January 1, 2018, will be enrolled automatically in BRS. All members who were serving as of December 31, 2017, were grandfathered under the legacy retirement system. No member who was serving on, or prior to, December 31, 2017, will be automatically switched to the BRS. Though they are grandfathered under the legacy retirement system, active component service members who had fewer than 12 years as of December 31, 2017, and National Guard and Reserve service members in a paid status, who had accrued fewer than 4,320 retirement points as of December 31, 2017, may choose to opt into the BRS. The opt-in window for BRS is from January 1, 2018, to December 31, 2018.
By the way, even if you did convert to BRS you wouldn’t “lose” your 20 year retirement. BRS still has a pension that starts at 20 years. It’s just that for people who’ve been in as long as you, BRS is usually not a good option.
So there you have it. Here are a bunch of references proving that you should have no worries about switching components and being forced into BRS. You don’t have to change your military retirement system! I hope this eases concerns for people who feel like they are now stuck because they stayed in the legacy system.
For those of you who are now realizing you don’t like the choice you made (and yes, I’ve talked to a few), well, that’s a separate issue. If you have any questions about that, please reach out to me! I can’t change your retirement system status, but I’d love to help you optimize the decisions you’ve already made.
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