TSP & Retirement
Your guide to military retirement systems, Blended Retirement System (BRS), High-3, TSP, vesting, continuation pay, and planning for life after service.
Legacy High-3 Pension
- Defined-benefit pension for those who joined before 2018.
- Formula: 2.5% × years of service × average of highest 36 months base pay.
- Example: 20 YOS = 50% of High-3 average.
- Pension is paid monthly for life; subject to COLA increases.
- Election is irrevocable; review eligibility before separation.
Blended Retirement System (BRS)
- Applies to those who joined in 2018 or later, or opted in.
- Pension formula: 2.0% × years of service × High-3 average base pay.
- Includes automatic 1% DoD TSP contribution + up to 4% match at 5% member contribution.
- Continuation pay offered mid-career for additional service commitment.
- Lump-sum option available at retirement.
Thrift Savings Plan (TSP)
- Ultra-low expense index funds (G, F, C, S, I) + target-date L Funds.
- Automatic 1% DoD contribution + up to 4% match for BRS participants.
- Traditional (pre-tax) and Roth (after-tax) options available.
- Vesting: 2 years for automatic 1%; immediate for member contributions and match.
- Contribution allocation controls new deposits; Interfund Transfer (IFT) moves existing balance.
Vesting & Continuation Pay
- Vesting: Member contributions and match vest immediately; automatic 1% vests after 2 years.
- Continuation pay: Mid-career bonus for additional service commitment (typically at 8–12 YOS).
- Review service-specific rules for eligibility and timing.
Retirement Planning Steps
- Review eligibility and retirement system (High-3 vs BRS).
- Set TSP contribution rate and investment allocation.
- Update beneficiaries and review survivor benefits.
- Attend transition assistance programs (TAP) and financial counseling.
- Use official DoD calculators to estimate pension and TSP outcomes.
FAQ & Resources
- How do I know which retirement system I’m in? Check your service entry date and any BRS opt-in paperwork.
- How do I set up or change TSP contributions? Use myPay, Marine Online, or your service’s payroll portal.
- What is vesting? It means you own the contributions after a set period (see above).
- Where can I get help? Contact your base finance office, transition counselor, or DoD resources.
- Where can I find official info? See DoD, TSP, and your service branch websites.
This page is for education only. Policies change frequently—verify with DoD, TSP, and your service branch.