A shout out to all the readers in the LT locker downstairs! Thank you for the readership, I made a post just for you. Reports from new LTs from ODS indicate there is a lot of bad & biased gouge given in Newport regarding the BRS. The blanket consensus was BRS had no possible benefit for those joining now. They cold not be further from the truth.
This blanket statement might have been based on old unofficial details about the system. When BRS was first conceived you needed 5 years of service to be vested, which is too long to benefit those with intentions of private practice after their pay back. According to the Official Navy Blog, matching starts immediately for those opting in on Jan 2018. We now know even the short timers will get in on some of this sweet free money. How much free money exactly?
|Year||Years in||Monthly O-3 Base Pay||My Pay Monthly Allocation||5% Match for year||Total Matches|
Well, those residents that do the required 5 years would have enough free matching money to have a significant start on their retirement. Note that you must put in $198.18 ramping up to $264.36 a month (5% of your own base pay) to get the match. Those credentialers would have a modest $5,605.20 of sweet free money after their time is up after 4. It is a no brainer to go for the BRS, especially if you have no intention to ever do 20 years. You would be leaving free money on the table. Just make sure you put 5% into TSP, which you should be doing anyways.