High-3 vs. BRS: Which Retirement System Are You Even Under?
There are two military retirement systems, they pay very differently, and a surprising number of people do not know which one they are in. Here is how to tell, and what each one actually gives you.
The bottom line up front
- 1.You are under BRS if you joined on or after January 1, 2018, or opted in. Otherwise you are under legacy High-3.
- 2.High-3 pays a 50%-at-20-years pension with no TSP match and no lump sum.
- 3.BRS pays a 40%-at-20-years pension but adds a government TSP match up to 5%, continuation pay, and a lump-sum option.
- 4.If you are BRS, contribute at least 5% of base pay now to capture the full match. Anything less is leaving free money behind.
- 5.BRS softens the 20-year cliff, because you keep your TSP and match even if you separate before 20.
Before you can plan a single thing about military retirement, you have to know which of the two systems you are under, because they work differently and pay differently. A lot of people genuinely do not know, and the answer changes how you should be using your TSP right now, years before you retire. So start here.
Which one are you under?
The dividing line is simple and it is based on when you joined.
- You are under the Blended Retirement System (BRS) if you joined on or after January 1, 2018, or you joined before that and chose to opt in during the one-time opt-in window.
- You are under legacy High-3 if you joined before January 1, 2018, and did not opt in to BRS.
If you joined in 2018 or later, you are BRS, full stop. If you have been in longer and never opted in, you are High-3. Knowing this is not optional, because the right TSP strategy is different for each.
Legacy High-3: bigger pension, no match
High-3 is the classic military pension. If you serve 20 years, you get a lifetime pension worth 50% of the average of your highest 36 months of basic pay (your "high-3"), and it climbs by 2.5% for every year beyond 20. There is no government match on your TSP under High-3, and there is no lump-sum option. The deal is straightforward: a larger guaranteed pension, and your TSP is entirely on you.
BRS: smaller pension, but a match and more flexibility
BRS trades a slightly smaller pension for benefits you get along the way, even if you never reach 20 years.
- The pension multiplier is 2.0% per year instead of 2.5%, so a 20-year retirement is worth 40% of your high-3 rather than 50%.
- The government matches your TSP up to 5% of base pay (an automatic 1% plus a match), which is real money that compounds for decades. This is the piece that makes BRS valuable even for people who separate before 20.
- Continuation pay is a mid-career bonus, usually around the 8 to 12 year mark, in exchange for an additional service commitment.
- A lump-sum option at retirement lets you trade part of your early pension for cash up front, though the math usually does not favor taking it (see the BRS lump-sum guide).
What this means for you right now
The practical takeaway is about your TSP, today. If you are BRS, you should be contributing at least 5% of your base pay right now to capture the full government match, because anything less is leaving free money on the table every single month. If you are High-3, there is no match to capture, but the TSP is still the best retirement vehicle you have, so you should still be funding it deliberately rather than ignoring it.
The 20-year cliff is different under each
Under High-3, if you leave before 20 years you get no pension at all, which makes the 20-year mark a hard cliff. Under BRS, even if you separate early you walk away with your TSP and the years of government matching, which softens that cliff considerably. That difference matters if you are not certain you will serve a full career.
The bottom line
If you joined in 2018 or later, you are BRS: a 40%-at-20-years pension plus a TSP match you need to be capturing right now. If you joined earlier and did not opt in, you are High-3: a 50%-at-20-years pension and no match. Figure out which you are, and if you are BRS, get your TSP contribution to at least 5% today. That single move is worth more than almost any other retirement decision you will make this year.
Compare the two side by side with the High-3 Calculator, and project your BRS numbers with the BRS Calculator and TSP Calculator.
Sources
- DoD FMR Vol 7B: military retired pay (High-3 and BRS)
- militarypay.defense.gov: Blended Retirement System
- 10 U.S.C. Ch 71: computation of retired pay
Figures reflect 2026 rates and regulations. This guide is general information, not personalized financial or tax advice. Always verify with your finance office or a tax professional before making a decision. How we research and source: our methodology.
FAQ
Frequently asked questions
- How do I know if I am under High-3 or BRS?
- It is based on when you joined. You are under the Blended Retirement System (BRS) if you joined on or after January 1, 2018, or you opted in during the one-time window. You are under legacy High-3 if you joined before January 1, 2018, and did not opt in.
- What is the difference between High-3 and BRS pensions?
- High-3 uses a 2.5% multiplier per year, so 20 years equals 50% of your high-3 average basic pay, with no TSP match and no lump-sum option. BRS uses a 2.0% multiplier, so 20 years equals 40%, but it adds a government TSP match up to 5% of base pay, continuation pay mid-career, and an optional lump sum at retirement.
- Which military retirement system is better?
- Neither is universally better; they fit different careers. High-3 pays a larger guaranteed pension if you serve a full 20 years. BRS pays a smaller pension but gives you a TSP match and portability, so it is more valuable if there is any chance you separate before 20. Under BRS, capturing the full 5% match is the key move.
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Run your own numbers
REF: Military Toolkit Guides, effective 2026
Official 2026 DoD, DFAS, DTMO, IRS, and VA sources. See each guide’s Sources list
Results are estimates. Always verify with your finance office.