1. DoD Office of Financial Readiness
#blendedretirement 1
2018
January
DoD Office of Financial Readiness
Ms. Kim Myers
Office of the Assistant Secretary of Defense (Force Readiness)
The National Defense Authorization Act for Fiscal Year 2016 established a modernized retirement plan for the Uniformed Services. As written into the law, the Uniformed Services have until January 1, 2018, to implement this new retirement system and fully educate the force.
The Department of Defense refers to the modernized retirement system as the “Blended Retirement System” or “BRS.”
The implementation of the BRS is likely the most wide-reaching and significant change to military pay and benefits since the advent of the All-Volunteer Force. Accordingly, we are aggressively working to implement these changes, train the force about the new retirement system, and manage all of the myriad changes to systems and policy such a large effort requires.
Today, I am going to be discussing many of the features of the BRS as well as our ongoing efforts to implement the new system.
PERSONNEL AND READINESS

2. 1 Questions http://militarypay.defense.gov/BlendedRetirement 2018
January
Other Resources:
DoD Blended Retirement System Resource Webpage:
Blended Retirement System Leader Course: (CAC required):
Blended Retirement System Leader Course: (Non-CAC):
Military OneSource Website:
A MyPay account is required to make BRS and TSP elections:
Information on TSP can be found at
Learn more about saving money, reducing debt, and building wealth:

4. What We’ll Discuss Why it’s critical to save for retirement
What is the Blended Retirement System (BRS)?
Who may opt-in to BRS
How the blended system encourages retirement saving
Choosing between the blended and legacy systems

5. Blended Retirement System
Replaces legacy pension-only system
Offers chance to opt-in with immediate benefits
Combines tax-deferred savings with a smaller pension
Adds automatic and matching DoD contributions

6. Nuts and Bolts of the BRS
You’re always vested in your own contributions
You’re immediately vested in DoD matching contributions
Your account value is portable: You can take it with you

7. BRS or Legacy CAREER TIMELINE RETIREMENT SYSTEM
Joined service before 1/1/2006 Joined service between 1/1/2006 and 12/31/2017 Join service after 1/1/2018
Grandfathered to legacy system, eligible to contribute to TSP Opt-in to BRS 1/1/2018 to 12/31/2018 or remain in legacy system Automatically enrolled in BRS

8. Benefits of Opting-In Continued eligibility for pension after 20 years
Automatic and matching DoD contributions to TSP account
Immediate vesting in all contributions and earnings
Career continuation pay between 8th and 12th year

9. Factors to Consider
Willingness to contribute regularly and at high enough rate
Appetite for investment risk
Likelihood of your serving 20 years

10. Wrapping Up Military retirement on cusp of a new era
Each of you is in a position to make an important choice
Acting thoughtfully can give you the confidence you’ve done what’s right for you

11. Federal Trade Comminssion
Military.Consumer.gov
Carol Kando-Pineda

12. America Saves Campaign Update
America Saves Communications Director
Madeline Daniels

13. Summary of Insights
Coping with unexpected expenses tops the list of reasons why people make a commitment to save but several other forces play important roles.
Two-thirds of people who recently committed to saving more cite unexpected expenses as a major influence in that decision.
When asked for the specific trigger that led to the decision to save more, recently committed savers often focus on specific goals (education, retirement, major purchases); some focus on their internal aspirations (desire to gain financial flexibility) or challenges (having difficulty staying on top of financial affairs; and the need for an emergency fund). Some are driven by negative life events (less income, or the need to get out of debt).
While positive changes in circumstances are a recognized force triggering increased savings, events that have had a negative influence are a savings trigger for a surprisingly large portion of these recent savers. Almost one-third (30%) report that an event creating less available income had a major influence on their decision to focus on saving.
The decision to save is not an impulse one for most people. A majority (56%) came to their decision over a relatively long period of time. The remainder are relatively evenly split between those who made a decision based largely on an internal commitment and those who were triggered by an external event.
Source: America Saves Committed Savers Study, October 2016

14. Summary of Insights
Committed Savers are taking steps to become more knowledgeable about personal finances, and saving for an emergency fund more than the general population; reflecting their aspiration to feel more confident, in control, and ultimately more satisfied with their financial situation.
The most successful savers are more likely to have taken a number of actions to ensure their success. These include opening an account specifically for saving, monitoring accounts carefully, and learning more about saving.
Source: America Saves Committed Savers Study, October 2016

15. Military Saves Advisory Meeting 1 February 2017
Military Saves Week February 27-March 4, 2017

16. MilitarySaves.org
Military Saves is part of the Department of Defense’s Financial Readiness Campaign and has been a partner with DoD since 2003.
Military Saves is a research-based campaign using the principles of behavioral economics and social marketing to change behavior.
Military Saves seeks to motivate, support, and encourage military families to save money, reduce debt, and build wealth.
Military Saves is a part of America Saves, the larger nation-wide campaign for all Americans.
Military Saves encourages all servicemembers, their families, and civilian employees to take the Military Saves pledge.
Military Saves promotes access to a range of financial readiness resources that can help them with their debt reduction and savings goals.

17. MilitarySaves.org Military Saves encourages servicemembers to:
Set savings goals & make a financial plan
Get in the savings habit:
Save automatically through direct deposit, automatic transfer from checking to savings or allotment
Spend less than you earn and save the difference
Set up a separate savings account for emergencies
With the new Blended Retirement System coming in 2018, the need to create a financial plan, set savings goals AND get in the savings habit are more important than ever!

18. MilitarySaves.org
Encouraging servicemembers and families to take the pledge! Savers who take the pledge receive the following benefits:
Access to monthly Military Saves e-blogs and challenges with savings advice from financial experts
Opportunity to sign up for text message saving tips, reminders
Free credit score, courtesy of FINRA Investor Education Foundation

19. MilitarySaves.org & BRS
January-February 2017
Topic: Military Saves Week 2017: Get in the retirement savings habit now (automatically). The #BlendedRetirementSystem is one year away.
Key messages: Save for retirement automatically. Will the change to the Blended Retirement Plan affect me? Highlight websites/resources. What are you planning to do with your pay raise? Save your refund, find more ways to save (change withholdings). Getting a pay raise? Amount of pay increase, illustrate how much that will grow if put into retirement savings for a young servicemember.

20. MilitarySaves.org & BRS (Reserves)
Timing of “non-regular retirement” annuity does not change – eligible to begin receiving annuity at age 60, or *earlier with creditable service
RC members may elect the lump sum when eligible to receive retired pay at approximately age 60*
TSP contribution elections carry over when activating and de- activating
JKO BRS courses will be available through MilitarySaves.org without CAC access; easier for Reserve and National Guard service members and families
A few other items I’d like to briefly mention:
The Blended Retirement System does not change when a member is eligible to retire.
Members covered by the Blended Retirement System may still elect to participate in the Survivor Benefit Plan.
The Blended Retirement System does not change the law on division of retired pay under the Uniformed Services Former Spouses Protection Act
Reservists covered by the Blended Retirement System are still eligible for reduced age retirement if they perform qualifying service.
Finally, a few closing thoughts.
There is no single right answer as to which retirement system is better. Both the legacy retirement system, often called the “High-3” system and Blended Retirement System may have advantages and disadvantages based on a Service member’s particular circumstances.
Those members who have the option of choosing their retirement system should base their decision entirely upon their own circumstances, after completing the training and taking advantage of all of the information and resources available.
For some, staying under the legacy retirement system will make sense. For others, the Blended Retirement System will be a preferable option.

21. MilitarySaves.org & BRS
BRS Opt-In Course provides various scenarios for active and Reserve component members and factors to consider in the opt-in decision making process.
The course is available on non-CAC computers
The course includes graphical elements, interactive leaning tools and real-world videos of service members discussing retirement options and asking questions.
A few other items I’d like to briefly mention:
The Blended Retirement System does not change when a member is eligible to retire.
Members covered by the Blended Retirement System may still elect to participate in the Survivor Benefit Plan.
The Blended Retirement System does not change the law on division of retired pay under the Uniformed Services Former Spouses Protection Act
Reservists covered by the Blended Retirement System are still eligible for reduced age retirement if they perform qualifying service.
Finally, a few closing thoughts.
There is no single right answer as to which retirement system is better. Both the legacy retirement system, often called the “High-3” system and Blended Retirement System may have advantages and disadvantages based on a Service member’s particular circumstances.
Those members who have the option of choosing their retirement system should base their decision entirely upon their own circumstances, after completing the training and taking advantage of all of the information and resources available.
For some, staying under the legacy retirement system will make sense. For others, the Blended Retirement System will be a preferable option.

22. Comparison Calculator
Online BRS Comparison Calculator will allow Service members to compare estimated benefits under both plans prior to making a decision
Walks Service members through key information needed to make an effective comparison
Users can adjust data to see how changes to their career and savings will impact retirement benefits
Available Spring 2017
Other Resources:
DoD Blended Retirement System Resource Webpage:
Blended Retirement System Leader Course: (CAC required):
Blended Retirement System Leader Course: (Non-CAC):
Military OneSource Website:
A MyPay account is required to make BRS and TSP elections:
Information on TSP can be found at
Learn more about saving money, reducing debt, and building wealth:

23. MilitarySaves.org
Each year, a Memo from the Office of the Secretary of Defense is issued
supporting Military Saves Week .
Military Saves Week is endorsed by the Office of the Secretary of Defense and key leadership. These endorsements may be found on militarysaves.org.

24. MilitarySaves.org 50,000 Military Savers take the pledge
Army 20,000 Pledges
Air Force 15,000
Navy 10,000 Pledges
Marines 5,000 Pledges
Coast Guard, National Guard, and Reserves 1,000 Pledges
Military Saves 2016
Total pledges/re-pledges: More than 32,335
More than 800 orgs. participated
Let’s go for 50,000 in 2017!
Let’s look at the numbers! The pledge count started over beginning Jan. 1, MSW kicks off the campaign for the year. In 2016, total pledges/re-pledges across all branches were more than 32,000; more than 800 organizations participated, up from 622 in 2015.

25. How to Participate: Three Steps
Sign up your installation to participate, receive the latest news
Partner with financial institutions, installation leadership, other PFCs and organizations to increase participation, host event(s)
Encourage servicemembers, their families and DoD civilians to take the Military Saves Pledge
Ask that personal financial managers to continue to participate in #MSW2017:
Sign up to participate this year, receive the latest news
Partner with a financial institution on post to participate
Encourage servicemembers to take the pledge
Consider submitting a blog; after all, you're an expert!

26. MilitarySaves.org

27. MilitarySaves.org

28. MilitarySaves.org

29. America Saves Designation of Excelence
12 military-affiliated banks and credit unions (34 total) were recognized for encouraging servicemembers and families to save
The online application will open on March 6, 2017 and will close on April 3, 2017.
Please help us spread the word! Look to partner with financial institutions on your installation.
Learn more!

30. #MSW2017 Reporting Survey
Contact Information
 What is the name of your organization?
Which of these descriptions best fits your organization?
Financial Institution
Installation
Non-Profit Organization
Who can we contact for more information?
Name _______________
State _______________
Address _______________
Phone Number ______________
How many branches are included in this report? _______________

31. #MSW2017 Reporting Survey
Through your events and promotion of Military Saves Week, did you encourage your audience to take the Military Savers Pledge? Yes /No
Which of the following did you offer during Military Saves Week (select all that apply)
Gifts or bonus incentives for opening accounts Yes/No
Gifts or bonus incentives for adding to accounts Yes/No
Special interest rates for opening accounts Yes/No
Prizes of drawings Yes/No
Other (please specify)

32. #MSW2017 Reporting Survey
How would you describe account activity during Military Saves Week 2017? (please select all that apply)
  Higher number of savings accounts (or similar) opened Yes/No
Greater deposits to existing savings accounts Yes/No
No noticeable change in savings activity Yes/No
Do not know Yes/No
How much account activity was there during Military Saves Week 2017? Number of savers opening new account
Dollars saved in new accounts
Number of savers adding to existing accounts
Additional dollars saved in existing accounts
Number of automatic savings deposits established

33. #MSW2017 Reporting Survey Promotional Methods
 Tell us about your promotional methods. Did you use each of these techniques this year?
Social media (Facebook, Twitter, etc.) Yes/No
Information on website Yes/No
Financial education workshops Yes/No
Press releases or press events Yes/No
Community events Yes/No
1-on-1 financial counseling Yes/No
Obtained Commander’s proclamation Yes/No
Other (please specify)

34. #MSW2017 Reporting Survey
Tell us about your audience reach. What is your best guess of how many people you reached with each of the following methods?
We like to feature stories that show the impact of your work during Military Saves Week. Please share in the space below your Military Saves Week story or success that illustrates the impact of your work:

35. MilitarySaves.org Key Messages for #MSW2017
Encourage Financial Readiness Program participation during the week
Engage Senior Leadership to sign Proclamations and Support the week
Collaborate with installation Marketing offices, Public Affairs Offices, on-post financial institutions, Banking Liaison Officers, youth centers, etc.
Promote mass participation to reach pledge goals
Also, don’t forget to:
Submit pictures, good news stories, activities and events to
Please complete reporting surveys immediately following MSW
If you are not responsible for your installation’s MSW events/activities, please lend your expertise for MSW.

36. MilitarySaves.org Key Messages for #MSW2017
The financial readiness of servicemembers and their families is a priority.
Military Saves Week is a call-to-action to promote saving money, reducing debt, and building wealth within the military population.
Military Saves provides support and information year-round within a saving community to help servicemembers and their families build their personal savings and provide for their immediate and long-term financial needs.
Please sign up, partner and encourage the pledge to make #MSW2017 a success!

37. THANK YOU jlander@consumerfed.org James Lander info@militarysaves.org
Military Saves Director
MilitarySaves.org
(202)
Alecia Blair
Military Saves Project Manager
Like Us:
Lani Poblete
Follow Us: