The High-3 vs. BRS question has gotten complicated with all the break-even calculations, opt-in regret stories, and TSP contribution tradeoffs flying around. As someone who has had this conversation with multiple people who stayed High-3 out of inertia rather than calculation and then separated early, I learned who actually ends up regretting their retirement system choice and why. Today I will share the honest version of that math.
Who Was on High-3 vs. BRS
Service members who entered active duty before January 1, 2018 were automatically on the legacy “High-3” retirement system unless they opted into the Blended Retirement System during the opt-in window that closed December 31, 2018. Everyone who entered after January 1, 2018 is automatically on BRS. The systems are genuinely different, and the regret conversation is more common than most people expect.
High-3 vs. BRS: What You Actually Get
High-3 pension: 2.5% of average base pay for the highest 36 months of service, multiplied by years of service, with no government TSP contribution. A 20-year retirement at O-5 High-3 pays roughly 50% of the average of your top 36 months of base pay.
BRS pension: 2.0% per year instead of 2.5%, which reduces the pension by 20% compared to High-3 at the same years of service. In exchange, BRS provides the government TSP contribution: 1% automatic plus up to 4% matching. At 20 years, a BRS retiree gets a smaller pension but has 20 years of government TSP contributions invested alongside their own.
The Break-Even Math
That’s what makes the comparison endearing to anyone who has run the actual numbers — whether BRS or High-3 produces more lifetime wealth depends heavily on longevity assumptions and investment returns. At typical assumptions (7% TSP growth, living to 85), BRS produces more total wealth for service members who contribute aggressively to TSP throughout their careers. High-3 produces more wealth for service members who leave TSP contributions minimal and live entirely off the pension.
Who Actually Regrets Staying High-3
Service members who stayed High-3 and then separated before 20 years have no pension and no government TSP contributions. Under BRS they’d have had the government TSP money. For E-5s and E-6s who separated at 8-12 years, the TSP contributions they left on the table by staying High-3 can represent tens of thousands of dollars of forgone government money. I’m apparently someone who had this conversation with multiple people who stayed High-3 out of inertia — the pattern repeats.
For Current BRS Members
Probably should have led with this for anyone currently on BRS: the government TSP contributions don’t vest immediately. The automatic 1% vests at 2 years; matching vests at 2 years for officers and 3 years for enlisted. Contribute at least 5% from your first paycheck to capture the full match from the moment it becomes available. The 0.5% pension reduction compared to High-3 is definitively worth it if you’re capturing the full matching contribution throughout your career.
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