What Is the Difference Between BRS and High-3 Military Retirement?

BRS (Blended Retirement System) provides a pension of 2.0% per year of service plus government TSP contributions of up to 5% of base pay — 1% automatic plus up to 4% matching after eligibility. High-3 (the legacy system) provides a larger pension at 2.5% per year of service with no TSP matching. Anyone who entered service on or after January 1, 2018 is automatically in BRS. The core tradeoff: BRS builds portable retirement value even for those who serve fewer than 20 years, while High-3 pays a larger pension for those who complete a full career.

How the pension is calculated under each system

Both systems calculate the pension using the High-36 average — the average of the highest 36 months of base pay. At exactly 20 years:

Under High-3: 2.5% × 20 years = 50% of High-36 average. Under BRS: 2.0% × 20 years = 40% of High-36 average.

For an E-7 with a High-36 average of approximately $6,100/month, that's roughly $3,050/month under High-3 versus $2,440/month under BRS — a $610/month difference for life, starting immediately at retirement.

What BRS adds to offset the smaller pension

BRS includes government TSP contributions that High-3 does not: a 1% automatic contribution after 60 days of service (regardless of whether you contribute), plus matching of up to 4% of base pay for members who contribute at least 5%. This equals up to 5% of base pay in government contributions — meaningful over a career, and vested after two years.

BRS also includes continuation pay: a one-time cash bonus at 8–12 years of service, at minimum 2.5 times monthly base pay for active duty, in exchange for a commitment to additional service years. Actual continuation pay multipliers and service obligations vary by branch, component, career field, and policy year — the minimums are a floor, not a guarantee of a specific amount. High-3 has no equivalent.

Why BRS helps some members more

Approximately 80% of service members do not complete 20 years of active duty. Under High-3, members who separate before 20 years receive no pension and leave only their own TSP contributions (no government match). Under BRS, those same members leave with vested TSP matching — real retirement savings regardless of career length.

For the 20% who complete 20+ years, the pension reduction under BRS can be partially or fully offset by TSP growth, depending on contribution history and investment returns over the career. The longer the career and the longer the money compounds, the more the TSP matching matters.

Members who were serving before 2018 and did not opt into BRS during the 2018 window are in High-3. That choice is irrevocable.

For a detailed comparison including break-even analysis and TSP growth scenarios, see BRS vs High-3: Which Military Retirement System Is Better?.

Educational comparison of military retirement systems. Not financial advice. Individual outcomes depend on career length, TSP contributions, investment returns, and personal circumstances.