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✓ Editorially reviewed by Derek Giordano, Founder & Editor · BA Business Marketing

Blended Retirement System (BRS) Calculator

Name: Blended Retirement System (BRS) Calculator
Author: Derek Giordano

Government TSP contributions (1% automatic plus up to 4% match), continuation pay at 8 to 12 years, and an estimate of the 25% or 50% retirement lump sum

Updated October 2026

Under the Blended Retirement System the government puts 1% of basic pay into your Thrift Savings Plan automatically and matches up to 4% more when you contribute 5%; you also get continuation pay between 8 and 12 years of service and can trade part of your pension for a lump sum at retirement. An E-5 with 6 years (2026 basic pay $4,110.00) contributing 5%: Government TSP $205.50 a month (5% of basic pay); continuation pay $10,275.00 at the minimum 2.5× multiplier.

How the TSP Match Works: 2026 Rules

The automatic 1% starts after 60 days of service, whether or not you contribute. Matching starts after two years: dollar for dollar on the first 3% you put in, 50 cents on the dollar on the next 2%, per TSP.gov. For an E-5 over 6 years ($4,110.00 a month):

You contribute	Your monthly amount	Automatic	Match	Government total
0%	$0.00	1%	0%	1%
1%	$41.10	1%	1%	2%
2%	$82.20	1%	2%	3%
3%	$123.30	1%	3%	4%
4%	$164.40	1%	3.5%	4.5%
5%	$205.50	1%	4%	5%
8%	$328.80	1%	4%	5%

Contributing less than 5% leaves free money behind: at 3%, the government adds 4% instead of 5%.

Continuation Pay

Between 8 and 12 years of service, BRS members can get a one-time continuation payment for agreeing to serve longer: 2.5 to 13 times monthly basic pay for active duty, 0.5 to 6 times for drilling Guard and Reserve members, according to the Defense Department’s fact sheet. Each service sets its multiplier and service obligation. At the 2.5× minimum, the E-5 above would receive $10,275.00.

The Lump Sum Option at Retirement

At 20 years, a BRS retiree can take 25% or 50% of the estimated retired pay up to age 67 as a discounted lump sum, in one payment or up to four annual installments. Monthly retired pay is cut by 25% or 50% until 67, then fully restored with all COLAs. By law (10 U.S.C. 1415) the lump sum is the present value of the pay given up, discounted at a rate the Defense Department sets each year, so it is always far less than the total given up. The table uses a 6.5% discount rate and 2.5% COLA as illustrative assumptions, with $2,447.40 a month of retired pay:

Age at retirement	Option	Estimated lump sum	Monthly pay until 67
38	25%	$131,073.70	$1,835.55
38	50%	$262,147.40	$1,223.70
40	25%	$125,948.30	$1,835.55
40	50%	$251,896.60	$1,223.70
42	25%	$120,415.06	$1,835.55
42	50%	$240,830.13	$1,223.70
44	25%	$114,441.54	$1,835.55
44	50%	$228,883.07	$1,223.70

The official amount comes from DoD’s calculation at retirement; use the rate in effect for your retirement year.

Common Mistakes

Contributing under 5%. The match tops out at 4% only when you put in 5%.
Treating the lump sum as extra money. It is an advance on your own retired pay, discounted, and it is taxable.
Forgetting that matching starts after 2 years. The automatic 1% starts after 60 days; the match does not.
Assuming continuation pay is automatic. It requires an agreement to serve more years, and the multiplier depends on your service and specialty.

What This Calculator Does Not Cover

It does not project TSP balances (use the TSP calculator), handle vesting rules for the automatic 1%, or reproduce DoD’s exact lump-sum computation; it estimates the lump sum from your assumptions.

Frequently Asked Questions

How much does the government contribute under BRS?

1% of basic pay automatically after 60 days, plus a match of up to 4% after two years of service when you contribute 5%, for a total of 5%.

What is the BRS TSP matching schedule?

Your 1%, 2% or 3% is matched dollar for dollar; 4% gets 3.5%; 5% or more gets 4%, per TSP.gov.

What is BRS continuation pay?

A one-time payment between 8 and 12 years of service for agreeing to extra service: 2.5 to 13 times monthly basic pay on active duty, 0.5 to 6 times for drilling Guard and Reserve members.

How does the BRS lump sum work?

At retirement you can take 25% or 50% of your retired pay up to age 67 as a discounted lump sum; your monthly retired pay is reduced by that share until 67 and then fully restored.

Is the BRS lump sum a good deal?

It is discounted at a rate DoD sets, so you give up much more retired pay than you receive. It can make sense for paying off high-interest debt or a specific need, but compare the numbers first.

Who is in the Blended Retirement System?

Members who entered service on or after January 1, 2018, and those who opted in during the 2018 opt-in period.

How to Use This Calculator

Choose grade and years of service — for 2026 basic pay.
Enter your TSP contribution — 5% captures the full match.
Set the continuation pay multiplier — 2.5 is the active-duty minimum; your service sets the actual value.
For the lump sum — enter expected retired pay, retirement age, option and your discount-rate and COLA assumptions.

🧮This calculator is part of our Finance Calculators collection.

📚 Sources & References

[1] TSP.gov. Contribution types: Service automatic (1%) and matching contributions for uniformed services (accessed October 2026). www.tsp.gov
[2] Department of Defense, Military Compensation. Fact Sheet: Continuation Pay (accessed October 2026). militarypay.defense.gov
[3] Department of Defense, Military Compensation. BRS Lump Sum infographic (handouts, May 2026). militarypay.defense.gov
[4] 10 U.S.C. 1415, Lump sum payment of certain retired pay (Cornell LII, accessed October 2026). www.law.cornell.edu
[5] Department of Defense, Military Compensation. Retirement (BRS overview, accessed October 2026). militarypay.defense.gov

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