V2 15-Feb-17 1 Commander’s Blended Retirement System (BRS) Smart Pack What: The new Blended Retirement System combines the legacy 20 year military retirement system (the defined annuity), with a defined contribution plan, known as the Thrift Savings Plan (TSP). BRS is a new retirement system that goes into effect on 1 January 2018. The opt-in eligible population will be able to elect into BRS or remain grandfathered under the legacy retirement system. Marines who enter the Marine Corps on or after 1 January 2018 will automatically be enrolled into the BRS. Who: Who is eligible? 1. Active Duty – Any Marine who has less than 12 years of service from their Pay Entry Base Date (PEBD) as of 31 December 2017 will have the opportunity to enroll into BRS. Marines who have served more than 12 years as of 31 December 2017 will remain under the legacy retirement system. 2. Reserve Component - Any Marine who has accumulated less than 4,320 retirement points as of 31 December 2017 will have the opportunity to enroll into BRS, if they are in a paid status (e.g., on active duty or affiliated as an Active Reserve, Select Marine Corps Reserve or Individual Mobilization Augmentee). Marines affiliated with the reserve component who have 4,320 or more retirement points as of 31 December 2017 will remain under the legacy retirement system. When: 1. Notification Phase: 9 December 2016 – 1 March 2017 2. Training Phase:: 1 March 2017 – 31 December 2017 3. Election Phase: 1 January 2018 – 31 December 2018 Where: N/A. Why: The BRS will provide retirement benefits to approximately 85% of the force, rather than the 19% who receive benefits under the legacy system. We are taking care of our Marines by ensuring that they are properly informed before making a major life decision. How: 1. Use the Commander’s BRS Smart Pack. 2. Commander’s BRS Smart Pack, Phases 1-3 and Appendixes, describes how the three phases of BRS implementation will be executed.
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V2 15-Feb-17 1
Commander’s Blended Retirement System (BRS) Smart Pack
What: The new Blended Retirement System combines the legacy 20 year military retirement system (the defined annuity), with a defined contribution plan, known as the Thrift Savings Plan (TSP). BRS is a new retirement system that goes into effect on 1 January 2018. The opt-in eligible population will be able to elect into BRS or remain grandfathered under the legacy retirement system. Marines who enter the Marine Corps on or after 1 January 2018 will automatically be enrolled into the BRS.
Who: Who is eligible?
1. Active Duty – Any Marine who has less than 12 years of service from their Pay Entry Base Date
(PEBD) as of 31 December 2017 will have the opportunity to enroll into BRS. Marines who have
served more than 12 years as of 31 December 2017 will remain under the legacy retirement
system.
2. Reserve Component - Any Marine who has accumulated less than 4,320 retirement points as of
31 December 2017 will have the opportunity to enroll into BRS, if they are in a paid status (e.g.,
on active duty or affiliated as an Active Reserve, Select Marine Corps Reserve or Individual
Mobilization Augmentee). Marines affiliated with the reserve component who have 4,320 or
more retirement points as of 31 December 2017 will remain under the legacy retirement
system.
When: 1. Notification Phase: 9 December 2016 – 1 March 2017
2. Training Phase:: 1 March 2017 – 31 December 2017
3. Election Phase: 1 January 2018 – 31 December 2018
Where: N/A.
Why: The BRS will provide retirement benefits to approximately 85% of the force, rather than the 19% who receive benefits under the legacy system. We are taking care of our Marines by ensuring that they are properly informed before making a major life decision.
How: 1. Use the Commander’s BRS Smart Pack.
2. Commander’s BRS Smart Pack, Phases 1-3 and Appendixes, describes how the three phases of
BRS implementation will be executed.
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Table of Contents Phase 1: Notification ..................................................................................................................................... 3
Phase 2: Training ........................................................................................................................................... 4
Notify Marines of your unit who are eligible to opt into BRS and report completion of
notification no later than 1 March 2017.
Ensure eligible Marines of your unit complete opt-in training not later than 31 December 2017.
Remind eligible Marines of your unit that the BRS opt-in training is mandatory.
Ensure eligible Marines of your unit are provided ample time and access to retirement and
financial management counseling.
Encourage eligible Marines of your unit to share and discuss financial and retirement
information with their family.
Ensure eligible Marines of your unit make an election decision during calendar year 2018
o Note: Marines have the entire calendar year 2018 to make an election decision.
Remind Marines that an election decision to opt into BRS is irrevocable.
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Appendix E: Talking Points
Below are Commander’s talking points for discussing the BRS with your Marines.
Three phases of the BRS implementation.
o Notification (9 December 2016 – 1 March 2017)
o Training (1 March 2017 – 31 December 2017)
o Election (1 January 2018 – 31 December 2018)
Eligibility
o Active Duty – A Marine who has less than 12 years of service since their Pay Entry Base
Date as of 31 December 2017 will have the opportunity to enroll into the BRS. Marines
who have served more than 12 years as of 31 December 2017 will remain under the
legacy retirement system.
AND / OR
o Reserve Component - A Marine who has accumulated less than 4,320 retirement points
as of 31 December 2017 will have the opportunity to enroll into BRS, if they are in a paid
status (e.g., on active duty or affiliated as a Select Marine Corps Reserve or Individual
Mobilization Augmentation). Marines affiliated with the reserve component who have
4,320 or more retirement points as of 31 December 2017 will remain under the legacy
retirement system.
The opt-in training is mandatory for all opt-in eligible Marines before making an election,
regardless of the decision to opt-in or not. Mandatory opt-in training will be completed in
calendar year 2017.
BRS election
o Will occur in calendar year 2018.
o Once you elect to opt into BRS, the decision is irrevocable.
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Appendix F: Glossary
Personal Financial Manager (PFM): The primary source for financial education, training and counseling for Service members. Installation PFMs possess a background in personal financial management or a related field and have attained, or must attain within 24 months of hire date, designation as an Accredited Financial Counselor (AFC) through the Association for Financial Counseling and Planning Education (AFCPE).
Command Financial Specialist (CFS): The unit CFS is a primary source for unit financial education and training. In addition, the CFS functions as the individual unit’s principal advisor on policies and matters related to financial education. A CFS must be appointed by the unit commander, hold the rank of E-6 or above, must complete the 40 hour CFS training program offered by the installation PFM, and participate in installation PFM forums to obtain continuing education on current financial readiness topics. MCO 1700.37 provides guidance and requirements for unit financial education programs.
Contracted Personal Financial Counselor (PFC): Contractor personnel provided by DoD to augment installation PFM services. PFC support is requested from OSD via Service HQ PFM Program Manager.