BRS vs High-3: Which Military Retirement System Is Better?

Who's in which system

Your retirement system was determined — largely — by when you entered service:

• High-3 (Legacy Retirement System): Entered service before January 1, 2018, and did not opt into BRS during the 2018 election window.
• Blended Retirement System (BRS): Entered service on or after January 1, 2018, OR entered before 2018 and voluntarily opted in during the 2018 window.

If you were in service before 2018 and did not opt in, you're on High-3. There's no changing it now. This article is most useful for two audiences: BRS members trying to understand what they have, and anyone helping younger service members understand what they're in.

The pension difference

Both systems use a "High-3" formula — the average of your three highest years of base pay — but they apply different multipliers.

High-3 (Legacy): 2.5% × years of service × High-3 average
BRS: 2.0% × years of service × High-3 average

At 20 years, this is the difference between 50% and 40% of your High-3 average.

Real math for an E-7 at 20 years

Using 2026 DFAS pay table data, an E-7 retiring at 20 years of service would have a High-3 average of approximately $6,141/month (based on the last three years of pay: $6,000.99/month at over 16 years, $6,177.24 at over 18, and $6,245.75 at over 20).

| System | Formula | Monthly Pension | Annual Pension | |--------|---------|----------------|---------------| | High-3 | 50% × $6,141 | $3,070 | $36,843 | | BRS | 40% × $6,141 | $2,456 | $29,475 | | Difference | | $614/month | $7,368/year |

That $614/month pension gap — $7,368/year — is what BRS costs in pure pension terms. The question is whether BRS's other benefits offset it.

BRS matching: the benefit High-3 doesn't have

High-3 members contribute to TSP out of their own pocket. The government contributes nothing in matching.

BRS members receive:

• 1% automatic contribution starting after 60 days of service (no member contribution required)
• Matching contributions starting at the beginning of year 3 (month 25):
  • Dollar for dollar on the first 3% of base pay contributed
  • 50 cents per dollar on the next 2%
  • Maximum government match: 4% of base pay (plus the automatic 1% = 5% total)

Vesting: Government contributions vest after 2 years of service. If you separate before the 2-year mark, you forfeit the matching contributions (though your own contributions are always yours).

For an E-5 at the beginning of year 3 ($3,775.72/month base pay) contributing 5%:

| Contribution Type | Monthly | |------------------|---------| | Auto 1% (government) | $37.76 | | Match on 3% (government) | $113.27 | | Match on next 2% at 50% | $37.76 | | Total government match | $188.79 |

That's $188.79/month in government money added to the service member's account on top of their own contribution. Over an E-5 career, with pay raises and continued contributions, the government matching alone — invested at 7% average return — can grow to well over $100,000 at retirement.

And that's before counting the member's own contributions.

Continuation pay: the BRS bonus nobody explains

BRS members receive a one-time Continuation Pay bonus at their career midpoint — somewhere between 8 and 12 years of service, with the exact timing determined by their service branch.

The minimum is at least 2.5× monthly base pay for active duty (Guard/Reserve receive a lower rate), and can be significantly higher — up to 13× for certain branches and career fields. Each service sets its own multiples based on retention needs.

Example: E-7 at 10 years ($5,300.34/month base pay):

• Minimum continuation pay: 2.5 × $5,300.34 = $13,250.85
• Higher multiples for critical career fields can push this to $25,000–$50,000+

This bonus comes with a service obligation (typically 4 years), but for members who plan to stay past 12 years anyway, it's essentially free money. High-3 members receive nothing comparable.

The break-even question

The central question in any BRS vs. High-3 comparison is: does the higher pension from High-3 offset the TSP matching from BRS?

The answer depends on how long you serve.

If you serve fewer than 20 years, the legacy pension is worth zero — you receive nothing. BRS gives you:

• Every dollar of TSP matching you earned
• The portable retirement balance you've built
• Continuation pay (if you hit the 8–12 year window before separating)

If you serve exactly 20 years, High-3 typically wins in total lifetime pension value, assuming average longevity. The $614/month pension gap compounds over decades of retirement. At 30 years of retirement, that gap alone is $220,680 in additional pension income for High-3.

However, BRS members will also have a larger TSP balance from matching — which partially offsets the gap. The actual break-even depends on your specific contribution history, investment returns, and longevity.

The general rule: High-3 favors career lifers who are certain they'll reach 20. BRS favors everyone else — and provides meaningful value even for members who separate before hitting the pension cliff.

Who BRS is actually better for

BRS may be more advantageous if:

• You're uncertain whether you'll reach 20 years
• You plan to maximize TSP contributions (matching accelerates the benefit)
• You separate between 10–19 years and have been contributing consistently
• You're in a high-risk career field where 20 years isn't guaranteed
• You value a portable retirement benefit over a potentially higher fixed pension

High-3 may be more advantageous if:

• You're confident you'll serve 20+ years and have a stable career field
• You would not otherwise contribute to TSP (the matching benefit doesn't help you if you don't contribute)
• Your career field has a low attrition rate and you have strong promotion prospects

The honest reality: most people who would benefit most from High-3 are the minority who actually make it to a full military career. For the majority of service members, BRS provides retirement savings that would otherwise be zero.

What to do right now

If you're on BRS:

1. Contribute at least 5% to TSP to capture the full government match — the first 1% auto-contributes regardless, but the remaining 4% match requires your contribution
2. Consider the Roth TSP option if you're junior enlisted in a low tax bracket
3. Track your TSP balance — this is real money that belongs to you even if you never hit 20

If you're on High-3:

1. Still contribute to TSP — there's no match, but the tax advantages are real
2. Plan for 20 years knowing that your pension is the primary retirement vehicle
3. Use the TSP to supplement, not replace, your pension planning

The bottom line

BRS vs. High-3 is not a "which is better" question with one answer. It's a "which is better for you" question that depends entirely on your career plans and contribution behavior.

The $614/month pension gap for an E-7 at 20 years is real. So is the $188/month in free government TSP matching that High-3 members never receive. Those two numbers define the core of the comparison — and which one matters more depends on where you land in a career that nobody can fully predict at the outset.

Run the numbers for your specific grade and contribution rate. The TSP Growth Projector can show you what BRS matching could be worth at your projected retirement date.

If you're in the 10–19 year zone and actively weighing whether to stay, see the full financial math behind the stay-to-20 decision — including what the pension is worth in lifetime dollars and what civilian compensation would need to look like to match it.