Those who opt into the new Blended Retirement System (BRS) will face a decision on retired pay so unusual that the DoD Board of Actuaries has called it inappropriate. While lump-sum buyouts of pension obligations are common in the corporate world, the formula Congress has prescribed for setting military lump sums is not. The amounts offered will be too large to ignore for many retirees seeking to get out of debt, buy a home or start a business. But the lump sum choice also will have members lowering the lifetime value of their own retirement packages significantly. Read the whole story in the Military Advantage blog and watch this Air Force video explaining the new Blended Retirement System.
For more on retirement pays and other pay benefits, visit the Military.com Benefits section.