The new Blended Retirement System (BRS) created under the 2016 Nation Defense Authorization Act is a retirement system that blends the traditional legacy retirement pension with a defined contribution to Service members' Thrift Savings Plan account. This new Blended Retirement System goes into effect on January 1, 2018.
The current Reserve Component (RC) retirement is based on a combination of satisfactory years and points achieved each year. An RC member (that is, a member of the National Guard or Reserves) earns 15 points each year for participation, one point each day for two weeks of annual training and any other active duty time served, and points for weekend drills, performing funeral honors, and completing correspondence courses, depending on how many hours of work are performed. RC members must earn 50 points annually to have a satisfactory year.
The current military retirement system is a defined benefit system. Service members who serve honorably for 20 years become vested in the retirement system. When active-duty Service members retire, they receive a monthly pension calculated by multiplying the average of the service member's highest three years of continuous pay (the retired pay base) by 2.5% times the years of service (the retired pay multiplier).