Understanding Choice Retirement Plans in Military LES

Surprising fact: as of Dec. 31, 2017, everyone on active duty was locked into the High-3 legacy system unless they met the window to opt into BRS — a rule that still shapes pay and future benefits for many members.

This section explains how your Leave and Earnings Statement (LES) reflects the elections, deductions, and contributions that affect long-term income and benefits.

The LES shows service dates, years of pay counted, TSP contributions, and any continuation pay entries. Those lines help you confirm whether you are under the High-3 formula or the BRS approach with government matching.

Why it matters: small entries on your LES can change lifetime income. Verifying the information now prevents errors that cost you later.

Key Takeaways

LES entries reveal which retirement system and contributions apply to your account.
High-3 uses a 2.5% multiplier; BRS uses 2.0% plus TSP matching and a 1% automatic contribution.
Check TSP percentages, Roth vs. traditional, and any continuation pay on your LES.
Vesting rules affect government contributions; your own TSP is always vested.
Correct LES errors through your servicing finance office to protect future income.

Why your LES matters for your military retirement plan choice

A timely review of your LES can reveal whether contributions and government matches are posting as intended. The statement is the authoritative, pay-period snapshot that shows elections, deductions, and thrift savings activity.

Key LES lines that reflect retirement elections and TSP activity

Check the TSP line each month and year for the percentage, Roth vs. traditional designation, and posting amounts. If you opted into BRS, confirm the automatic 1% entry and any matching contributions up to 5% of basic pay.

Verify continuation pay, allotments, and any special pays that alter take-home pay and might reduce your contributions. Reservists should confirm drill pay entries and watch for correct basic pay sourcing when on long active orders.

Present-day context: what to verify each pay period

Ensure member contributions are posting to the thrift savings plan at the elected rate.
Confirm government automatic and matching contributions show when eligible.
Watch leave balances, tax withholdings, and proration on split months.
Schedule a monthly checklist so small errors do not compound over life and time.

For deeper guidance on maximizing income and matching, see retirement income strategies.

Military retirement plan choice: who has it and what it really means

The code on your LES tells you whether you stayed in the legacy High-3 system or had the option to switch to BRS.

Grandfathered vs. eligible members: Anyone serving on Dec. 31, 2017, was grandfathered into High-3. Those with fewer than 12 years of active duty or under 4,320 Reserve/Guard points could opt into brs through Dec. 31, 2018. That single date determined which system applied to many service members.

High-3 bases pay on your number years times the average of your highest 36 months of basic pay at a 2.5% multiplier. The blended retirement system uses a 2.0% multiplier plus government TSP contributions and possible continuation pay.

Use your LES to confirm service computation dates, system codes, and any government contributions. If entries differ from your records, contact finance to correct years and months that affect benefits.

Feature	High-3	Blended Retirement System (BRS)
Defined benefit	2.5% × years × highest 36 months pay	2.0% × years × highest 36 months pay
Defined contribution	None	Automatic 1% + up to 5% matching to TSP
Key eligibility factor	Grandfathered if on duty 12/31/2017	Opt-in if

Understanding these differences helps you plan years of service, TSP strategy, and rank progression. For tips on getting the most from benefits and TSP matching, see maximize your benefits.

High-3 Legacy Retirement System at a glance

Under the High-3 system, pension math relies on the average of your highest 36 months of basic pay. This method produces a defined benefit tied to career length and final pay.

Formula basics: years of service × highest 36 months of basic pay × 2.5%

The formula multiplies number years served by the average of your top 36 months of basic pay, then applies a 2.5% multiplier to get annual retired pay.

Key points to check:

Requires at least 20 years of service to qualify; longevity drives benefit size.
Your LES lists pay grade and service dates but won’t show the full pension math.
No government TSP matching under High-3, so many boost voluntary TSP to grow monthly retired income.
Higher final pay and on-time promotions increase the average used in the formula.
Keep LES copies for the relevant months to resolve any information discrepancies affecting the final calculation.

The Blended Retirement System (BRS) in depth

BRS pairs a reduced multiplier for monthly pay with automatic government contributions to encourage steady saving. This section explains how the two parts of the system work together and what to watch for on your LES.

Defined benefit: 2.0% multiplier and monthly impact

The defined benefit uses a 2.0% multiplier applied to years of service and your highest 36 months of basic pay. That produces a smaller pension than the legacy formula, but it still provides a steady payment for life.

Defined contribution: automatic 1% and matching to TSP

The system adds a Service Automatic Contribution of 1% of basic pay and up to 5% matching when members contribute to TSP. Government matching contributions make early, steady contributions much more valuable.

Continuation pay and vesting rules

Continuation pay is a midcareer bonus often equal to at least 2.5 times monthly basic pay for active components and about 0.5 times for Reserve/Guard. It carries extra obligated service.

Members always own their personal TSP contributions. The 1% automatic contribution vests after two years, so track service dates to confirm full vesting.

Use continuation amounts to boost TSP, build an emergency fund, or cut high-interest debt.
Set TSP elections early to capture matching across every pay period.
Reconcile LES lines monthly to verify the 1%, your election, and any bonus entries.

Thrift Savings Plan strategies to maximize lifetime income

How you set contributions each pay period determines whether you collect full matching across the year. Small habits on paydays compound into meaningful income decades later.

Setting contribution rates to capture full matching contributions

Set contributions to at least 5% as early as possible so you capture every matching dollar. Smoothing elections across pay periods prevents missed match dollars later in the year.

Rolling TSP to a civilian 401(k) or leaving it to grow

When separating, compare fees and investment options. Rolling to a civilian 401(k) can simplify accounts, but the thrift savings plan often has very low costs that help balances grow over time.

How drill pay and active duty orders affect Reserve/Guard contributions

For Reserve and Guard members, confirm whether contributions post from drill pay or from basic pay during long active duty orders. That ensures contributions and government automatic 1% post correctly and do not miss matching windows.

Confirm Roth vs. traditional on your LES each pay cycle to align tax strategy with future income needs.
Automate small increases when you get raises to build savings without budget strain.
Use Lifecycle funds for a simple glide path or craft a core fund mix to match risk tolerance and years until withdrawal.

Comparing BRS vs. High-3: benefits, trade-offs, and timelines

Deciding between systems means weighing immediate cash flow against long-term income. For many, the answer depends on how long you serve and whether you actively save in the thrift savings plan.

Career length scenarios: 20 years and fewer than 20 years of service

20 years: High-3 usually produces higher monthly retired pay because of a 2.5% multiplier applied to years and top pay. BRS can approach similar outcomes when the member contributes steadily and earns market returns on TSP plus matching.

Fewer than 20 years: BRS provides portable savings through TSP and government matches. The legacy system offers no pension if you separate before 20 years, so savings behavior matters more under the blended retirement approach.

Impact on family finances: cash flow, bonuses, and future income

Compare cash now versus income later. Continuation pay offers a one-time payment that can reduce debt or seed investments, but it comes with service obligations.

Use realistic promotion and market assumptions to compare outcomes.
Factor taxes, survivor needs, and inflation when modeling benefits.
Keep your LES updated so contribution and bonus entries map to real-world results.

For deeper help comparing annuity and lump sums, see retirement payout options.

Action steps today: making and reflecting your choice on LES

A quick LES check can catch missed matches, wrong service coding, or absent continuation pay before small errors compound.

Opt-in mechanics and final deadlines in pay systems

DoD closed the BRS opt-in window on Dec. 31, 2018, and those opt-ins were final. If you opted in then, confirm your LES records the correct system code. If the entry is wrong, contact finance immediately to correct service coding and amounts.

Adjusting TSP in MyPay or MarineOnline to avoid missed matches

Update contributions in MyPay or MarineOnline after promotions or pay changes. If you leave your existing rate unchanged, that percentage — even zero — continues and may forfeit government matching.

Use official calculators and meet installation financial counselors

Schedule time with a personal financial manager and run the BRS calculator to model outcomes. Keep copies of calculators and LES snapshots so you can reconcile any differences later.

Confirm TSP elections post-promotion and after PCS orders.
Reserve and Guard members: verify contributions switch between drill pay and basic pay when activating.
Document changes in the pay system and check the next LES to ensure amounts posted.

Action	Where to check	Why it matters
Confirm system code	LES / finance office	Ensures correct benefit calculations and government entries
Adjust TSP rate	MyPay / MarineOnline	Captures full government match each pay period
Record and verify changes	Saved LES copies	Proof for resolving posting or service disputes
Meet counselor and run calculators	Installation financial office	Align contributions with long-term savings goals

For additional reading on maximizing workplace accounts, see top 401(k) plans.

Conclusion

A monthly LES review helps you catch posting errors and protect the years, pay entries, and contributions that shape long-term income.

Confirm whether your LES reflects High-3 or the blended retirement system and verify formulas: High‑3 uses years × average highest 36 months × 2.5 times, while BRS adds a 2.0% multiplier plus an automatic 1% and up to 5% matching to TSP.

Track vesting (the automatic 1% vests after two years), continuation bonus records, and whether drill pay or basic pay posted contributions correctly.

Use official sources and tools like the retired pay rules and consult counselors. For income protection options, see disability income providers.

FAQ

What should I look for on my LES to confirm my retirement election?

Check the retirement code and any entries for Thrift Savings Plan contributions, matching status, and continuation pay indicators. Verify basic pay lines and any annotations that note High-3 or BRS enrollment. If entries are unclear, contact your personnel/pay office to ensure your election and contribution rates are recorded correctly.

How do LES lines show TSP activity and matches?

LES will display TSP contributions as a deduction and, if enrolled in the blended system, separate entries for Service Automatic Contributions and Service Matching Contributions. Look for both the percentage and dollar amounts each pay period to confirm you’re receiving full matching funds.

What routine checks should I perform on my LES each pay period?

Confirm basic pay, leave balances, TSP deductions, matching entries, and any continuation pay or bonus payments. Also ensure retirement codes and years-of-service totals update correctly. Early detection of errors helps avoid lost benefits.

Who was grandfathered into the High-3 system and who could opt into BRS?

Service members with 20 or more years of qualifying service before the BRS start date remained in the High-3 legacy system. Most others who entered service on or after the BRS effective date, or who met opt-in windows, could elect the blended system. Check your accession date and service policy guidance to confirm eligibility.

How do active duty years and Reserve/Guard points affect eligibility and pay calculations?

Active duty time counts directly toward years used in formulas. Reserve and Guard members earn retirement points that convert to qualifying years and service credit; those points impact both defined benefit calculations and TSP participation eligibility when placed on active orders.

How is the High-3 monthly payout calculated?

The formula multiplies years of service by the average of your highest 36 months of basic pay and then by 2.5%. That produces the monthly retired pay before deductions and cost-of-living adjustments.

How does the defined benefit under BRS differ from High-3?

BRS uses a 2.0% multiplier instead of 2.5%. That yields a smaller defined benefit at similar service lengths, so members should weigh the smaller annuity against the added defined contribution components and midcareer continuation pay.

What are the defined contribution features of the blended system?

BRS provides an automatic 1% contribution to the TSP and up to 4% of Service Matching Contributions when you contribute at least 5%. Members control their contribution rate and investment elections within the TSP to grow that account for future income.

What is continuation pay and how does it affect service obligations?

Continuation pay is a midcareer lump sum offered under BRS to retain experienced members. It requires a service agreement; accepting it extends your obligated service and may alter retirement timing or separation plans. Review the exact terms before accepting.

When do Service Automatic Contributions vest under BRS?

Service Automatic Contributions vest after two years of qualifying service. If you leave before that point, automatic contributions may be forfeited, so track your vesting status closely.

How should I set TSP contribution rates to capture full matching funds?

Contribute at least 5% of your basic pay to receive the full matching percentage from the service. Adjust contribution percentages in MyPay, Marine Online, or your service’s pay portal and verify matches appear on your LES each pay period.

Should I roll my TSP into a civilian 401(k) after separating or leave it in TSP?

That depends on fees, investment options, and withdrawal rules. TSP often has lower fees and IRAs/401(k)s may offer greater flexibility. Compare projected lifetime income, tax implications, and required minimum distributions before deciding.

How do drill weekends and active orders affect TSP contributions for Reserve/Guard members?

Only pay earned while on active orders generally counts toward regular TSP contributions and service matching. Drill pay and points may affect retirement point totals but may not always trigger employer matching unless ordered to active duty. Check pay guidance for your component.

How do outcomes compare for careers of 20 years versus fewer than 20 years under each system?

For 20-year careers, High-3 often yields a larger defined benefit, while BRS pairs a smaller annuity with TSP savings and continuation pay that can narrow the gap. For shorter careers, BRS’s automatic and matching contributions typically provide more portable savings and better overall value.

What financial impacts should families consider when weighing options?

Consider near-term cash flow from bonuses, the size and timing of continuation pay, survivor benefit elections, healthcare eligibility, and how TSP balances might replace lost income. Use family budgeting and long-term income projections to compare scenarios.

How do I opt into BRS and what deadlines are irrevocable in pay systems?

Opt-in windows were defined by service guidance and pay systems record the election. Some elections are irrevocable after a set period. Check your service personnel office and LES entries, and use official resources to confirm deadlines and effective dates.

How do I adjust TSP elections in MyPay or Marine Online to ensure I don’t miss matches?

Log into your pay portal, update contribution percentages, and save changes. Then review subsequent LES statements to confirm both your contributions and matching amounts post-change. Set calendar reminders to recheck after any duty status change.

What official tools and advisers can help me model outcomes and make decisions?

Use DoD and service retirement calculators, the TSP website tools, and installation financial counselors. Certified financial planners familiar with federal benefits can also run personalized scenarios to compare long-term income under each option.