Blended Retirement System

Question 1

Describe the Blended Retirement System.

Answer 1

The system blends the traditional legacy retirement system with the Thrift Savings Plan.

Question 2

What are the key features of the BRS?

Answer 2

Defined Benefit: Monthly pay for life after retirement for at least 20 years of service.
Defined Contribution: Automatic Gov. match of 5% of your base pay into TSP account
Continuation Pay: One time mid career bonus to perform additional obligated service
Lump Sum: Option to receive discounted portion of your monthly retirement pay as a lump sum at retirement

Question 3

What does the TSP account offer?

Answer 3

Access to a mix of investment funds through contributions to a Traditional retirement or Roth retirement account or a combination of both.

Question 4

What are the two types of fund choices in TSP?

Answer 4

Life-cycle and individual

Question 5

What is the difference between Roth and Traditional?

Answer 5

Traditional: Taxes are paid upon withdrawing the funds
Roth: Taxes are paid before withdrawal and are not taxed when withdrew, as long as IRS requirements are met.

Question 6

Where can you go for TSP and BRS help?

Answer 6

Family center
Military One Source
TSP website
MyPay website