If you’ve served in the military—or are transitioning into federal service—you’ve probably heard about two retirement systems:
High-3 and BRS (Blended Retirement System)
Understanding the difference between them is critical, especially if you are planning to combine military service with a federal civilian career.
If you want to see how your military time impacts your federal retirement:
https://fersfree.com
What Is High-3?
The High-3 system is the legacy military retirement system.
It provides a guaranteed pension based on your highest 3 years of base pay.
Formula:
High-3 Base Pay × Years of Service × 2.5%
Example (High-3)
- High-3 pay: $80,000
- Years of service: 20
= $40,000/year pension (50%)
What Is BRS?
The Blended Retirement System (BRS) combines:
- A smaller pension
- TSP contributions and matching
Formula:
High-3 × Years × 2.0%
Plus:
- Automatic 1% TSP contribution
- Up to 4% matching
Example (BRS)
- High-3 pay: $80,000
- 20 years
= $32,000/year pension (40%)
BUT you also receive:
- TSP contributions
- Government matching
Key Differences
| Feature | High-3 | BRS |
|---|---|---|
| Pension Multiplier | 2.5% | 2.0% |
| 20-Year Pension | 50% | 40% |
| TSP Matching | No | Yes |
| Portability | Low | Higher |
| Early Exit Value | None | Yes (TSP) |
The Biggest Tradeoff
High-3:
- Larger guaranteed pension
- No TSP match
- Must serve 20 years
BRS:
- Smaller pension
- TSP growth opportunity
- Benefits even if you leave early
Why BRS Exists
Most service members don’t reach 20 years.
BRS was designed to:
- Provide value to shorter careers
- Encourage TSP participation
- Increase retirement flexibility
How This Impacts Federal Employees
If you transition into federal service:
- Your military system (BRS or High-3) affects your total retirement strategy
- Your TSP habits carry over
- Military buyback may still apply
Military Buyback Still Matters
Even under BRS, buying back your military time can:
- Increase your FERS pension
- Improve retirement eligibility
- Strengthen long-term income
When High-3 Is Better
High-3 tends to win if:
- You complete 20+ years
- You want maximum guaranteed income
- You prefer low market risk
When BRS Is Better
BRS tends to win if:
- You leave before 20 years
- You maximize TSP contributions
- You want flexibility
5 Common Mistakes
- Ignoring TSP matching under BRS
- Comparing pensions only (not total compensation)
- Not planning for civilian transition
- Skipping military buyback
- Not modeling long-term income
What to Do Next
Compare your full retirement picture:
Look at:
- Military retirement system
- Federal pension
- TSP growth
- Retirement timing
Disclaimer
This article is for educational purposes only and should not be considered official DoD, VA, or financial advice. Always confirm details with official sources before making decisions.